COUNCILLORS could decide to "dispose" of Humberston Fitties after recommending residents be forced to leave the site for at least eight weeks every year.
It comes following a petition calling for chalet owners to be able to stay on the site for 50 weeks each year was submitted to North East Lincolnshire Council in 2010, promoting a full review of the site.
But the campaign may have now backfired for residents as a select committee formed to investigate the issue has rejected their plea for extended occupancy and instead made other recommendations for the future of the site.
A report, formulated by the committee after a two-day hearing in October, will be presented to the policy, performance and resources scrutiny panel on Wednesday.
The recommendations contained within it include:
That the closed season be no less than eight weeks per year, following evidence that the site is at risk of flooding.
That a working group be established to explore other opportunities for the management or freehold disposal of the site.
That the council reviews the £40,000 allocation for the maintenance of the coastal defence near the site.
The council strengthens its approach to use of chalets during the closed season and residents using chalets as their main home.
Options be explored for improving tourism at the site.
Councillor Ray Sutton, chairman of the select committee, said the issues raised during the hearing were complex and far-reaching.
He added: "We've examined closely the wide array of challenges and opportunities presented by this unique place.
"We and many local people care passionately about the Fitties and during the hearing we listened to many of them, as well as a number of other agencies and interested parties and I'm very grateful to everyone who took the time to give us their views.
"We've also had to be mindful of the many different functions the council has at the Fitties, from our responsibilities as the landlord to planning duties and our statutory role in emergencies, flooding and the environment.
"We believe everyone has had a fair chance to have their say on the matter and I look forward to the wider policy, performance and resources scrutiny panel discussing the report's recommendations on Wednesday.''
During the consultation, the select committee heard from Fitties Owners Residents' Association Bungalows (FORAB), other chalet owners, the Environment Agency, Balfour Beatty Living Places, Synergy Grimsby and the council.
See tomorrow's Grimsby Telegraph for residents' reactions.