Some fear the decision may even spell the end for the organisation as it may not be able to afford to pay its own way now.
Tuesday's meeting of the council's Leadership Panel decided against giving the group the necessary backing, and some close to the organisation feel as if this is a vote of no confidence in their work.
South Ayrshire Council Labour Leader and Girvan and South Carrick councillor John McDowall couldn't hide his disappointment at the decision.
He hit out: "I'm very unhappy with this decision. It's a disappointment, a real blow and a slap in the face to the Girvan people who have worked tirelessly throughout this project.
"What kind of message does this give to rural communities when they can't develop initiatives themselves. I am most disappointed with the news."
The views of Cllr McDowall were echoed by GCDL, who were also disappointed by the news.
GCDL have worked continuously to boost the local economy and came agonisingly close in last year's Big Lottery Fund bid for the ambitious Ailsa Craig Centre, when they reached the final stages of the elimination process.
Honorary Chair of Ailsa Horizons Paul Torrance said: "We recognised the commitment and the determination of those involved with GCDL, and they are keen to work with South Ayrshire Council.
"But with this decision, it now looks like thousands of volunteer hours have been lost."
The former South Carrick councillor also fears that the decision could have wider implications for voluntary organisations across the whole of Carrick.
He added: "There is a danger that without the support of South Ayrshire Council, potential partners will be reluctant to work with other local organisations in the future."
The Labour Party Group have already called in the decision to the council's Scrutiny Panel and it could be heard as early as next week as they seek to reverse the decision. If the decision is taken to reverse it, it will be heard in front of the whole council.
SNP Girvan and South Carrick councillor Alec Oattes, also a director of GCDL, has also called for the decision to be put before the Scrutiny Panel.
He said: "I was very sorry to hear the decision by the Leadership Panel that they do not wish to facilitate a rescue package for GCDL.
"As a director of the company, I fully supported the bid for the ambitious harbour project and I still do. I am questioning this decision by the Leadership Panel on the grounds that there has been a lack of consideration on the impact of this decision on morale of Girvan and district."
He added: "There are other grounds for appeal and I intend to put them forward to the relevant Scrutiny Panel. I am hopeful that the project can be saved.
"My heart goes out to the community and all organisations who worked so hard to generate funds for the bid and I also appreciate how much work has been put into this project by the board.
"Girvan and district desperately needs a focus for a major visitor attraction and Ailsa Craig is the icon on which to base that."