In a statement, general manager Rob Noble said the move was to “protect the council asset” and had been taken on legal advice.

He claimed there had been “significant breaches as to the terms of the management contract”.

An interim manager has been appointed to replace the managers of nine years, Danny and Vicky Whitter.

Mr Whitter, popular coach of 

the Bay Tigers under 18 rugby league side, said he was unable to comment yesterday.

The council said it would call for tenders to manage the resort.

“Eurobodalla Shire Council is determined to provide the best services and accommodation standards at the resort,” Mr Noble said.

“Council’s actions demonstrate commitment to protecting community assets and ensuring best practice management.”

Mr Noble said every existing staff member at the resort was being offered a position.

“It is of concern that they are okay,” he said. “It is very sad that it’s had to come to this.”