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Douglas Council says it's giving up on a plan to build sheltered housing in Willaston.
The local authority had planned to build a complex on the former police station site - but the Department of Infrastructure wouldn't support the scheme.
The DOI said the two-bedroomed apartment block was too large for the site.
The council says it'll now offer the flats as general housing and keep Willaston's sheltered housing in Ballanard Court.