A block of 32 flats would sound the death knell for Canvey seafront, campaigners told a public inquiry.
The four-storey development at the Lubbins car park in Eastern Esplanade was thrown out by Castle Point Council in 2003 following protests from residents.
Landowner R E Thipthorp is appealing against the ruling.
Doreen Balsara, chairman of the Canvey Island Residents' Action Group, said: "If planning permission is granted, other traders will jump on the bandwagon and sell up and we'll be left with nothing on the seafront."
She claimed the land was sold to the current owner with a restricted covenant limiting the land for leisure use only.
She said: "If this appeal is allowed it would be a breach of law and would be totally out of character with the area."
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