Wollongong Council has awarded The Grounds of Alexandria a 10-year lease agreement for the restaurant at Stuart Park North Wollongong following a unanimous decision on Monday 15 December.
The venture marks the hospitality group’s first outside of Sydney.
The agreement outlines an initial five year lease for the restaurant on the Stuart Park Crown Reserve from late 2026 with a further five year option.
The restaurant traded as The Lagoon since opening in 1986 and its lease is set to expier in July 2026. The restaurant announed its imminent closure on Instagram in September.
“After nearly 40 years, Lagoon Restaurant will complete its lease in July 2026. This next year is your last chance to celebrate, reminisce and enjoy a meal by the water one last time,” said the post. “Thank you to everyone who has dined with us, celebrated milestones and made Lagoon a beloved part of the community.”
Lord Mayor of Wollongong Councillor Tania Brown said that having a major hospitality player see the potential in Wollongong was “very encouraging” for the council’s commitment to attracting new business and investment.
“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 alikem” said Cr Brown.
Currently, The Grounds operates a flagship venue in Alexandria, and venues in South Eveleigh and Sydney’s CBD.
The 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.
“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,” said Cr Brown.
“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 council undertook an open tender process for experienced hospitaltiy operators with plans for the venue.
Under the Local Government Act, councils must undertake statutory notification advising the public of the proposed new lease agreement. Following Wollongong Council’s endorsement, the lease will be executed once the statutorily required public notice period is complete and any feedback has been considered.
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