Large concrete planters, installed as part of a high street spruce up, could be removed after cracks were discovered.
They were put in Redcar earlier this year as part of a series of improvements funded through the Redcar Town Deal, a regeneration scheme introduced by the previous Conservative government.
The Local Democracy Reporting Service has been told about £77,000 has been allocated towards the planters and their installation, but payment has been withheld to the contractor.
Council leader Alec Brown, Labour, called for them to be removed, adding: "They are too big, but the final nail in the coffin has been the cracks now identified."
Brown said the council had not been responsible for the planters, with the scheme overseen by the Town Deal board, of which he is a member, and which previously went out to public consultation over regeneration plans for the town.
The programme is also funding a library and leisure hub, among other projects, as well as high street paving.
'Want rid of them'
The planters have seating at their base and include etchings which reflect Redcar's association with maritime safety reformer Samuel Plimsoll.
Some Facebook users described the blocks as "Soviet-era" style, "an eyesore" and "cold, hard and overbearing".
Labour Coatham ward councillor Carl Quartermain said on Facebook that residents and businesses "want rid of them".
"Most importantly, the issue that cuts through everything is the cracking that's already appearing. That simply should not be happening.
"If these planters are found to be defective, they should be removed, not returned, and at no cost to the council or public funding."
He said it had been confirmed the issues identified were part of a wider design and manufacturing defect affecting others.
"Importantly, responsibility rests with the contractor and their supply chain, and payment for the planters has been withheld," he said.
"In the meantime, interim safety measures and enhanced monitoring are in place, with public safety remaining the priority."
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