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A popular recreation ground has been refused town green status despite residents' concerns it may be sold off for housing or development in the future.
People living near Hythe Green are disappointed the popular field will not be protected by law as a town green.
Instead, it will continue to be guarded by a 166-year-old covenant.
It comes after the town council, which owns the land, had previously offered to give it to the district council for a leisure centre.
The law states areas can only gain town or village green status if they are used "as of right" but because Hythe Town Council owns the land it is instead "by right".
Alan Ewart-Jones, who has been a town councillor for more than 16 years, said: "A lot of money that is used to improve the area comes from hiring out the green.
"The organisers have to get permission from the town council to host these events.
"Therefore because it is dependent on the town council, public use of the green is not 'as a right' but 'by right'."
This means the town council needs to technically give people permission to use the ground, however access is not restricted.
Boot fairs, circus and community events are held at the ground with the permission of the town council, who fear this will discontinue if village green status is ever granted.
The green is still protected by a covenant, which was created in 1853 to ensure Hythe Green is a designated spot for "amusement recreation" and not built on.
A plaque in the green reads: "This land is reserved for public recreation and no part of it is to be applied for building purposes."
Yet residents are cautious of this protection as the town council had previously offered to give the district council the land for a leisure centre, which fell through due to the covenant.
Plans have since been approved for nearby Princes Parade.
Robert Jacques-Bartlett, who has lived in the town for more than 20 years, said: "The major problem we, as residents, have over this issue, is the feeling our town council seems to have a wish to curtail use of the green.
"We are suspicious because the town council seems to regard the covenant as being worthless until the groups decided to fight.
"We just want to reassurance we are never going to fear the green being taken away from us by this town council, who only think about profit."
While county councillor for the area, Cllr Martin Whybrow, supported the village green application, he said: "I suspect everybody, at the end of the day, wants the same thing; to have this area protected."
He suggested a solution for part of the green to be given green status to appease both parties.
However the legal advisor for the committee said this would need to be voluntarily submitted by the land owner, the town council.
Councillors on Kent County Council's regulation committee unanimously voted not to approve the application.
History of the site
The land used to be part of the sea, then silted up and became beach.
1853: Plots of land sold to private individuals except "the piece of land as Archery Arboretum cricket ground and Bowling Green".
1862: Parts of the Green still owned by the War Department were purchased by Freeman of the borough. Further deed written to strengthen covenant.
1939: Government attempted to lease land for war efforts but was rejected due to breach of covenant.
1966: After carpark built on land, Hythe Green Preservation Society was founded.
1995: Council proposed building a community centre, which was rejected.
2016: Plans for swimming pool and leisure centre on the green abandoned due to covenant.