City moves to protect ratepayers’ interests as tenant told to vacate

30 March 2016

City of Gold Coast has today served a notice to vacate on the tenant sub-letting about 3500 square metres of office space at The Rocket in Robina.

The tenant, Members’ Alliance, owes around $1.1 million to Council with CEO Dale Dickson today advising the notice was a measure to protect ratepayers from any further losses.

“For many months, we have negotiated in good faith with the tenant but have today served notice on them to vacate in the next seven days. Ratepayers can no longer be left exposed to this rent default,’’ Mr Dickson said.

Members’ Alliance owes about $700,000 in rent for the 3500 square metres of floor space it occupies at The Rocket. It has also failed to maintain its $400,000 bond, meaning Council has had to draw down that security in an effort to ensure the rent is paid.

Mr Dickson said as soon as Members’ Alliance vacates, Council will place the space back on the market.

“We are confident there will be interest in the office space as the market is reasonably strong at present. We may also consider utilising some of the space for a period of time in the lead up to the Gold Coast 2018 Commonwealth Games,’’ he said.

The lease with Members’ Alliance commenced in March 2013 for a six-year period. The annual lease costs were around $2 million with the business employing up to 240 staff.

Council took over the head lease on the space at The Rocket as part of its obligations when it re-established Gold Coast Water in 2011. The space had previously been occupied by the SEQ water service provider, Allconnex.

 

Birds eye shot of the gold coast beaches and skyline.