Tynwald threw out a bid for Tynwald to vote on the separate aspects of the Douglas promenades revamp.
Malew and Santon MHK Graham Cregeen had tabled a Tynwald motion calling the members to vote separately on the carriageway upgrade and the horse tramway relocation. But his motion was defeated following a debate on Tuesday evening.
The Department of Infrastructure has submitted its planning application for the £21.3m promenade refurbishment project. Funding approval is likely to a sought at the October Tynwald.
Mr Cregeen argued Tynwald funding for the new tram line should be conditional on Douglas Council signing up to continue running the horse trams for at least another 20 years.
He believes the horse tram line should be kept in the centre of the road but reduced to a single track.
Original plans to relocate the horse tram tracks on the carriageway side of the Marine Gardens on Loch Promenade were abandoned following opposition from hoteliers and town centre traders concerned at the loss of parking spaces.
Under the revised plans, the realigned horse tram track, a single track with one passing place, will share the walkway with pedestrians, cyclists and children.
One of the controversial aspects of the application is the idea of a ‘shared space’ street where pedestrians and traffic have equal right of way and existing conventional pedestrian crossings are replaced with ‘courtesy crossings’.