Options for a cheeky coffee at North Gong Beach will abound in 2026. Photo: LightFieldStudios.
A taste of Sydney is coming to one of Wollongong’s most iconic hospitality locations.
The restaurant on the Stuart Park Crown Reserve has traded as The Lagoon since opening in 1986.
The Lagoon’s 20-year lease expires in July 2026, and only two businesses applied for the new lease of the Stuart Park site — neither of them The Lagoon.
Wollongong City Council moved to accept the tender application of Sydney-based hospitality business The Grounds of Alexandria over Top Pub Mittagong’s bid for the site.
The Grounds will be offered a five-year lease, with the potential to extend for another five.
The Grounds currently operates its flagship venue in Alexandria, as well as venues in South Eveleigh and Sydney CBD.
Lord Mayor of Wollongong Tania Brown said she was thrilled to see both the restaurant location and the city draw the attention of a premium hospitality provider.
“The Grounds’ Sydney venues are well known for their eye-catching look and for providing top-quality dining and event experiences,” Councillor Brown said.
“The bid demonstrated bold plans for the site over the term of the lease, and we look forward to seeing them brought to life for our residents and visitors alike.”
The council also unanimously endorsed a recommendation to grant a new lease for operation of the North Wollongong Beach cafe and kiosk to current operator, North Kiosk Pty Ltd, for five years with two subsequent five-year options.
This means the popular Diggies Cafe will remain — although with an upgraded home.
The council will enter into a lease agreement for the North Wollongong cafe and kiosk building before the next phase of the North Wollongong Beach sea wall works begins.
This agreement will allow the business to undertake fitout works and planned upgrades during the closure period, and ensure the venue is ready to reopen once works on the precinct are finished, towards the end of 2026.
It’s been an extended and turbulent process for the venue, as applications for the initial tender were too disparate to be compared.
As a result, the council entered into commercial property negotiations directly with each of the three applicants.
Finally, the owner of Diggies, North Kiosk Pty Ltd, has been announced as the successful party.
“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,” Cr Brown said.
“The new lease will see the cafe 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.”
Under the Local Government Act, which governs how community land is managed, the council is required to undertake statutory notification advising the public of the proposed new lease agreement.
Following the council’s endorsement, the lease will be executed once the statutorily required public notice period is complete and any feedback has been considered.
