Corruption investigations into Gold Coast's mayor and chief executive could render two controversial Surfers Paradise property deals void if upheld.
A group of Gold Coast businesses and residents have alleged conflicts of interest, misuse of authority and making false and misleading statements against Gold Coast Mayor Tom Tate and CEO Dale Dickson.
The allegations mainly relate to the sale of the Bruce Bishop Car Park at Surfers Paradise and a neighbouring site which Mr Tate and his business partners are in negotiations with council to buy.
The 50-page complaint by Safe Surfers Paradise (SSP) also includes a claim the mayor nominated himself during a closed council meeting to negotiate Mr Dickson's new employment contract while the CEO had the sole responsibility for dealing with the sale of council land to his development group.
Queensland's Crime and Corruption Commission (CCC) has confirmed eight of the 10 complaints warranted further investigation.
SSP steering committee coordinator Deborah Kelly said the situation involving Mr Tate negotiating Mr Dickson's contract while the CEO dealt with the sale of 72 Remembrance Drive to his development group was particularly alarming.
"You can't have a CEO with sole discretion of a block of land that the mayor needs to do a $300 million development negotiating on a one-to-one basis with a mayor that has a sole discretion over the CEO's new contract can you? That's not right," she told AAP.
Ms Kelly said while her group's claims were just allegations at present and the CCC's investigation must be completed, the sale of the properties needed to be suspended.
Council last year approved a plan to see funds raised from the sale of several council-owned properties in Surfers Paradise would be used to pay for the first stage of the city's new cultural precinct.
SSP alleges Mr Tate did not give councillors complete disclosure about his business interests relating to Remembrance Drive.
In a letter to council sent on Friday, SSP warns any findings of improper practice or corruption from the investigation could warrant the sales void.
That would leave the council at risk of hefty legal fees and compensation to buyers, the letter claims.
The CCC is already investigating the council's decision to fill in a lake near the city's race course while Cr Tate and Deputy Mayor Donna Gates are facing scrutiny for allegedly not declaring racehorse ownership.
Cr Tate gave a one-sentence response to the accusations.
"I respect the confidentiality of the CCC," he said.
Mr Dickson welcomed the investigation into his conduct, saying the claims aren't new and are part of legal action which will soon be dealt with by the Supreme Court.
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