The Department of Health and social Care has applied to build a new care unit for adults at Noble's Hospital.
In a planning application, it says the development would include a day care facility, industrial training unit, offices, a shop and cafe.
The development on the old Ballamona Farmhouse site would involve extending the farmhouse and putting up two new buildings, as well as creating a new car park.
If successful, the project would replace a number of existing facilities - including the Eastcliffe Resource Centre on Victoria Road in Douglas and a garden centre on Glencrutchery Road.
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