The Gold Coast City Council (GCCC) waived tens of thousands of dollars in rental fees it previously claimed was owed to it by a property developer, following an internal meeting involving two councillors who had previously received electoral donations from the company involved.

Key points: Villawood Properties' sales office is on land that it had provided to Gold Coast City Council for public open space

Villawood Properties' sales office is on land that it had provided to Gold Coast City Council for public open space When the council charged the property developer for use of the land, the company objected to the fees

When the council charged the property developer for use of the land, the company objected to the fees The charges were eventually waived

The developer, Villawood Properties, is building a large housing estate at Kingsholme on the northern Gold Coast and has made electoral donations to Deputy Mayor Donna Gates and Councillor William Owen-Jones.

Both politicians say they did not drop the council's fees or instruct a council officer to do so.

Developer donates land it's still using

More than 100 documents were released to the ABC under Right To Information laws. ( ABC Gold Coast: Elise Kinsella )

Documents released to the ABC under Right To Information laws show the saga began when Villawood Properties provided some land to the council at its Montego Hills estate in 2016, to be maintained as public open space as part of the housing development.

But there was one problem for the developer.

Its sales office had been built on the land it no longer owned.

The documents released to the ABC show by the end of 2018 there was a flurry of emails between Gold Coast City Council staff trying to sort out what to do.

In one email a council executive estimates the company should be charged between $35,000 and $117,000 a year for the use of the council land, while noting: "I need to treat this developer like all others".

Another email by a different staff member explained the developer had by 2018 already been on the site for "over two years without tenure".

By November, a course of action had been decided on, and a council officer sent a bill to Villawood's town planners.

It included an application fee of $458, a refundable bond of $20,000, and a ground rental charge of $700 per week for the ongoing use of the council land for the company's sales office.

Developer tries to overturn fees

Villawood Properties objected to the fees, but an officer declined to remove them.

Documents show that, with the fees and charges unpaid, a council worker had the locks to the sales office changed on April 9 to allow maintenance crews access.

Villawood Properties director Tony Johnson reacted by writing an angry email to Mayor Tom Tate, which he also sent to Deputy Mayor Donna Gates.

Deputy Mayor Donna Gates says it is normal to meet council staff on matters such as the Villawood dispute. ( ABC News )

He said he was "writing this email with strong resentment and [was] disappointed".

Mr Johnson went on to say, "I have never in my 30 years in this industry come across such an action and am offended that GCCC would even contemplate such".

He was upset at being charged rent for land his company had owned and provided to the council.

Following this email, Councillor Gates and Councillor William Owen-Jones organised a meeting with two of the council officers involved.

Councillors declare donations

Both councillors had accepted election campaign donations from Villawood Properties or its representatives.

Councillor William Owen-Jones accepted a $975 donation before the last local government election while Councillor Gates lists $1,850 from Villawood and nearly $11,000 from its town planners on her register of interests.

Councillor Owen-Jones told the ABC he had spoken to Villawood directly about the issue before the meeting, and he declared the company's donation at the meeting with the council officers.

"Just because we have received a contribution to an election campaign, doesn't mean we stop being elected representatives," he said.

Councillor Owen-Jones said that he did not instruct council officers about what to do and had not been aware that the fees and charges were eventually waived by the council.

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Deputy Mayor contacts Villawood

After the meeting with the two council officers, Councillor Gates emailed Mr Johnson, the developer.

"Today I've met with the manager and put forward the positive aspects of Villawood's investment in our city, especially in the context of parks officers' handling of the Montego site office and its future use," she wrote.

She praised the developer for its contribution to the city and said that the matter "had been poorly handled by Council and for that I am sorry".

Responding to questions from the ABC, Councillor Gates said "perceived conflict of interest declarations were made" at the meeting with council staff and "councillors do not instruct officers".

"As the representative for that area, it is normal for me to meet with officers to discuss such matters," she said.

Councillor Gates said she could not recall any further notification about the matter after access was reinstated to Villawood Properties.

GCCC eventually waived the charges it claimed were owed for the use of land at the Montego Hills estate. ( ABC Gold Coast: Elise Kinsella )

Council worker writes complaint

One of the council officers at that meeting later wrote a letter that was sent to council managers, detailing his concerns.

In that long account of events, he said, "No minutes were taken in this meeting nor [were] administration staff present".

The council officer said while the councillors did not give a direct instruction to him at the meeting, both councillors discussed the possibility fees and charges "could be reassessed/renegotiated in consideration of the investment and good faith shown by Villawood Properties across the city".

The council officer wrote that he then visited the Villawood Properties site on May 9, after receiving no instructions from council staff or the developer, about the payment dispute.

"The chain securing access to the site had been cut and Villawood locks reintroduced to facilitate access to the location," he wrote.

"This has not been done under my direction nor the direction of anyone as far as I am aware."

Fees are waived

On May 21, a council officer from the city's parks department emailed Councillor Gates and Councillor Owen-Jones.

"I wish to advise the City intends to waive the fees applicable subject to the appropriate bond being paid and Villawood maintaining the site," he wrote.

He said that decision had been made following a discussion between Gold Coast council staff members and representatives from Villawood.

Another council officer wrote an email saying he had supported the proposal to waive the fees because "Villawood could simply not have transferred the property to Council and then had no fees".

He said he was not aware of any councillor involvement "and as such, that had no influence over my recommendation to waive the fees/charges".

A council spokesperson said Villawood was the previous owner of the land; however, it dedicated the parkland back to the council while the sales office was still operating.

"It appears Villawood made a genuine error in not realising the implications of dedicating the land while the sales office was still in operation,'' the spokesperson said.

"As a result and in good faith, the City took Villawood's error into account and has not charged rental for the immediate period."

Villawood Properties has not responded to the ABC.