Concerns have been raised about the stability of a major Gold Coast company that markets itself as a financial solutions business.
Members Alliance, which has a staff of about 240, has leased five floors of the Rocket Building in Robina for a number of years but have fallen behind in rent and now owe the council $1.1 million dollars.
Members Alliance promotes itself as providing “proven strategies and techniques to ensure a financially secure future.”
City of Gold Coast CEO, Dale Dickson, says they’ve made the tough decision to evict the company which secured a six-year lease at $2 million per year.
“We are in the commercial world and the City has the interests, obviously, of city ratepayers to safeguard,” Mr Dickson said.
“We are also mindful that Members Alliance is an employer.
“The City is also in the business of generating employment opportunities for people, diversifying our economic base, so we’ve had to balance that as a consideration against the financial interests of ratepayers.”
Mr Dickson said the City has reached the point where Members Alliance now owes in the vicinity of $1.1 million which is an unacceptable position.
The company has seven days to respond to the council before agents are engaged to lease the office space.
“What is at risk is the amount of rent that is outstanding at the moment,” Mr Dickson said.
“The City won’t be in a position to sue for that money, given the company’s structure but we have recourse through the courts and we would be looking to take all reasonable measures should Members Alliance not fulfill their obligations.”
Members Alliance would not make anyone available to speak to the media this afternoon.
However, in a brief statement, the company said it believes the council has taken a harsh line with them.
The full statement reads: “A spokesman says Members Alliance has been in discussions with the Gold Coast City Council (GCCC) regarding the lease on our premises with a renegotiated offer of terms presented to take effect on 29 April.
“The GCCC have chosen not to accept this offer and have taken a harsh line in full knowledge that we are a going concern employing hundreds of people.
“We are now looking at our legal options in regard to this matter.”