THE owner of the building known to locals as the Ambassador Motel is seeking unpaid rent and rates of up to $70,000 from the lessee.
And the manager (leaseholder) is refusing to accept eviction notice and let in locksmiths hired to change the locks.
In documents submitted to the Supreme Court of Rockhampton, the owner's of the land on Yaamba Rd claims the current registered leaseholder failed to pay three months rent and rates by November 24.
The documents explain that by December 1, the rent had been paid.
However, since then, the leaseholder has not paid the rent and rates for the months of December, January and February, nor pay any of the costs the Landlord has accrued as a result of the default.
The affidavit of co-landholder Michael James Tyrrell states that he instructed McCarthy Durie Lawyers on February 13 to serve a notice to terminate the lease and hand over of the land.
The affidavit went on to explain the correspondence and communication with the leaseholder David McDonald, and his father and power of attorney, Phillip McDonald, in the past five months.
"I specifically recall the meeting with Mr Phillip McDonald on 4 November 2016 because Mrs Rachel McDonald, Phillip's daughter-in-law was also in attendance when I asked them how long they needed to pay back the rates arrears," Mr Tyrrell said in his statement.
"They discussed the issue and told me it would take them six months at which time I said that I would consider this possibility, but, I would have to run this past my solicitor and accountant and I would get back to Phillip as quickly as I could."
Mr Tyrrell statement goes on to explain that to agree upon the six-month timeframe, and after seeking legal advice, he sought further documentation to show how the leaseholder would be able to pay back the money owing in that time frame.
The response he received on November 25 via an email of which a copy was submitted to the court, was that "the financials for the business are only in draft state at the present moment, and will be made available as soon as they are finalised by the accountant".
About February 13, Mr Tyrrell requested locksmiths attend the Motel in order to change the locks, however, the affidavit states, they were turned away and refused access to the land by a representative of the leaseholder.
"David McDonald is now again in occupation of the land and I believe he will again turn away all attempts at eviction other than by operation of an Order of the Court," Mr Tyrrell said.
Mr Tyrrell calculates the leaseholder owes the landowners - himself and co-owner Jan-Maree Tyrrell - a total of $68, 728.59 for rent and outgoings from December 1, 2016 to April 7, 2017.