Any occupant or owner or holder of a Class I, II, or III preference right, who has not applied to the borough for title thereto as provided in this chapter, on or before two years after the date applications to exercise preference rights will first be accepted for filing by the borough under this chapter, by a properly completed application duly filed with the clerk and accompanied by the required deposit, shall be forfeited and the person’s right to assert a preference right and acquire title to tidelands subject thereto from the borough shall immediately be terminated. Thereafter, all such tidelands and contiguous submerged lands subject to such unexercised preference right shall be free and clear of all claims to preference rights and the borough shall have no obligation whatsoever to convey the same to any person or persons whomsoever, and said land shall then be and remain the property of the borough and be subject to such disposition as provided in Chapter 14.16 HBC.