A surf lifesaving club has made an urgent call for action in the Horseshoe beach area after two members were reportedly threatened at knifepoint.
Cooks Hill Surf Life Saving Club (SLSC) president Michael Clancy said the pair had just finished water-based training when they were confronted by an armed man on Wednesday afternoon.
Neither was carrying a mobile phone and they had to rely on a member of the public to contact police, according to Cooks Hill SLSC.
It is understood no one was physically injured.
"This was a frightening incident for our members and one that could very easily have had a much more serious outcome," Mr Clancy said.
NSW Police said they had not yet received a formal report about the incident.
The beach, carpark and nearby foreshore have been plagued by controversies about safety, long-term campers, the cleanliness of the site and confusion about who has responsibility for it.
The incident on August 12 sparked the club to call on City of Newcastle and NSW Police to take urgent safety action in the Horseshoe beach area, it said.
Mr Clancy said Cooks Hill SLSC acknowledged that homelessness and rough sleeping were complex social issues, but "compassion for people experiencing hardship cannot come at the expense of community".
"This is not about demonising people who are homeless or experiencing difficult circumstances," he said.
"It is about recognising that Horseshoe beach is a heavily used community space, including by children, and it needs to be managed accordingly.
"We do not want to be having this conversation after a child, club member or member of the public has been seriously injured."
The SLSC has called for a safety assessment of the precinct, increased policing and compliance, improved management of unauthorised camping and increased engagement for people requiring assistance.
Mr Clancy said authorities needed to work together to improve the area and said his club was willing to be part of the conversation.
Police have previously told the Newcastle Herald they had spoken with owners of unregistered vehicles at Horseshoe beach and provided information about support services.
