C'mon. Be creative.
There's a way to make this happen without the PA leadership:
Declare the designated strip of land a safe haven of some kind for Palestinian refugees. Offer free land and services. Say it will be under Egyptian administration for a set period of time and then there will be local elections. After which autonomy, and later complete independence. Create a new state without the PA's blessing.
Some like that. I don't have all the details. Just thought it up in the time it took me to type the words.
This would pull the rug out from under the PA leaders.
Actually, that is rather clever.
The nice part is that it would knock the legs out from under the PA “leaders” and show them for the crisis pimps and hatemongers that they are. Also, Egypt would have a feather in its cap as being the only Arab state to actually work out a unique solution to the situation (this would shame the other Arab nations for their lack of genuine effort and desire to settle the matter amicably).
I have a friend who is Jordanian. One day we were talking about the late King Hussein. I referred to the fact that he was always afraid that he might be insane, owing to his father’s precarious mental state (the King, not my friend). My pal replied “Hey, anybody would go insane with that many Palestinians, in your country”. Good luck to Al-Sisi !
“Declare the designated strip of land a safe haven of some kind for Palestinian refugees. Offer free land and services. Say it will be under Egyptian administration for a set period of time and then there will be local elections. After which autonomy, and later complete independence. Create a new state without the PA’s blessing.”
Perhaps they could design it as an Egyptian free trade zone with lots of incentives for investment, like a “Singapore in the Sinai”, “the Egyptian Dubai”, or “Switzerland of the Sands”. The Egyptian Military could administer it’s governance with a rigged administrative council like Hong Kong’s, but including reps from International stakeholders like major investors and the University of Chicago’s Business School, to inject best economic practices/policies. Perhaps in the new environment, Suadi money and Israeli know-how could both be brought to bear.
A playground for wealth creation, with all good, peace loving Palestinians given free admission, but lots of Egyptians and International ex-patriots driving the economic growth. Draw Palestinian refugees in with land grants and opportunity, but deport political activists and islamists on their first offense.
Palestinians with clean records could have special Egyptian passports/immigration status with special benefits, but subject to revocation for life. Leave the terrorists to stew back in the old dwindling refugee camps. After twenty years of sorting, it would be like the North/South Korean divide.
Wait till the kids who are born in the new enclave grow to maturity before they start voting on anything of substance - that is key to success of the whole operation - no politics for you Palestinians until you grow up. Heavy policing to exclude the thugs, and Attaturk-like secularization of education and media written into the charter.
Oh yeah, keep it separated from Gaza by a few miles of Egyptian territory, until security is unquestioned.