A packed public meeting considered development plans for Pier Field in Skegness.
District, county and town councillors attended the special Skegness Area Committee meeting to debate the issue at the Storehouse on Thursday.
They were joined by a large group of residents to consider the future of the site, which could be the location for a Premier Inn hotel and KFC restaurant.
The meeting was called ahead of a scheduled decision on the potential sale of the site by East Lindsey District Council this week.
The council’s corporate asset manager Gary Sargeant told the meeting that Pier Field was the preferred location for KCS Development representing Premier Inn.
He revealed that Premier Inn had considered seeking to purchase the former Kiddies Corner site on South Parade but this was not considered suitable when the company decided to increase the size of the hotel from 60 to 80 bedrooms.
He confirmed that covenants on the foreshore dating from the purchase of the land from the Earl of Scarbrough in 1922 were removed in 2006.
Mr Sargeant added that notice of the removal of the covenants was not submitted to the Land Registry until 2014, but that it was an oversight and not a ‘conspiracy’.
He said the council had not been aware of KCS Developments holding discussions with other land owners prior to starting negotiations.