Wollongong City Council is excited to enter a new 10-year lease agreement for the restaurant at Stuart Park North Wollongong, with The Grounds of Alexandria set to make the iconic location its first venture outside of Sydney.
The restaurant on the Stuart Park Crown Reserve has traded as The Lagoon since opening in 1986. With the current lease set to expire in July 2026, Council undertook an open tender process seeking bids from experienced hospitality operators with ambitious plans for the oceanside premises.
On Monday night (15 December) Wollongong Council unanimously endorsed a recommendation to award the tender to The Grounds of Alexandria Pty Ltd, with the agreement outlining an initial five-year lease from late 2026, with a further five-year option.
The Grounds currently operates its eponymous flagship venue in Alexandria, as well as venues in South Eveleigh and Sydney CBD. The lease agreement will bring that signature style and premium food and beverage offering to one of the most popular stops along Wollongong's Blue Mile.
Lord Mayor of Wollongong Councillor Tania Brown was thrilled to see both the restaurant location and the city Wollongong draw the attention of a premium hospitality provider in The Grounds.
"Attracting new business and investment is a core commitment of Council and it's very encouraging that a major hospitality player sees the potential in Wollongong to expand their operations beyond Sydney," Cr Brown said.
"The Grounds' Sydney venues are well known for their eye-catching look and for providing top-quality dining and event experiences. The bid demonstrated bold plans for the site over the term of the lease, and we look forward to seeing it brought to life for our residents and visitors alike."
Council also unanimously endorsed a recommendation to grant a new lease for operation of North Wollongong Beach café and kiosk to current operator, North Kiosk Pty Limited, for five years with two subsequent five-year options.
Council will enter into an Agreement for Lease for the café and kiosk building prior to the commencement of phase two of the North Wollongong Beach sea wall works. This agreement will allow the tenant to undertake fit-out works and planned upgrades during a closure period, ensuring the venue is ready to reopen once the precinct and associated works are complete.
"In awarding the leases for two of our city's most loved and frequented hospitality venues, we're building a diverse economy that offers the community a variety of food and beverage options in prime locations," Cr Brown said.
"We have an obligation to ensure the highest and best commercial return for the community, which is why we seek independent market rent appraisals to guide the lease negotiation process.
"The majority of rental income achieved exceeds that of the independent market advice and our commercial leases include turnover provisions, annual increases and market rent reviews to ensure they remain in line with market conditions over the lease term. It's an approach we'll continue to take as commercial leases come up for renewal.
"The new lease will see the café and kiosk operating alongside the completed sea wall and extended Emma McKeon promenade so the community can enjoy one of Wollongong foreshore's flagship spots for many years to come."
Council undertook a statutorily required open tender process for the café and kiosk lease before Council endorsed a recommendation (on 17 November) to enter direct negotiations with the three initial tenderers for a potential 15-year lease.
Under the Local Government Act, which governs how Community land is managed, Council is required to undertake statutory notification advising the public of the proposed new lease agreement. Following Council's endorsement, the lease will be executed once the statutorily required public notice period is complete and any feedback has been considered.
