She said the council had been in regular touch with Ms Burroughs via email and phone since mid-2011 in an effort to formalise a lease for the gym.
"Council sent her the application form to do [reapply for a lease]. However, we did not receive an application from Ms Burroughs."
The lease for the building was officially advertised in November, and on December 21 Ms Burroughs was sent a letter asking her to vacate by January 23.
The Ponsonby Community Centre will take over managing the gym building, with a view to allowing various community leases.
Ms Burroughs and her husband Warren have a life-long association with the gym.
They went there as children, and he taught competitive gymnastics until suffering ill health.
About 400 leases on or in council-owned land and buildings are in the process of being reviewed or renewed.