Diggies North Gong cafe/kiosk tender hitch causes a delay

Last week The Illawarra Flame reported that one of the most popular and iconic waterfront cafes on the South Coast was about to settle a new long-term lease.

In a business paper to Monday night’s Wollongong City Council meeting, it was recommended the current lessee, North Kiosk Pty Ltd, be given a new lease of up to 10 years. If approved, the new rent would increase by 132 per cent on the current rent.

Between that business paper going public last week and the Council meeting taking place on November 17, staff updated their report and recommendations, following some confusion among the three tenderers about the lease terms.

The late paper to Council said: “Following a review of tender responses, which demonstrate the three respondents have submitted alternate tender responses offering different lease terms, it is recommended that a more beneficial outcome for Council will be achieved by entering into commercial property negotiations directly with the three tender respondents, rather than through a traditional scored tender approach because of the differing nature of the alternate tender responses.”

It is understood negotiations are now being held with all three businesses that submitted a tender. 

In a statement, Council said: “Tender processes can be complex. Council’s tender processes allow for alternate tender responses where the tender respondent can offer alternate ways of delivering the outcomes of the tender.

“While the details of each tender for the North Wollongong Beach Cafe and Kiosk remain commercial in confidence, each tender respondent proposed alternate tender responses.”

There was another change to the late tender business paper to council to state that Council’s General Manager, Greg Doyle, had a business relationship (outside of Wollongong Local Government Area) with the current lessee of the cafe and kiosk who was the preferred original tenderer.

Instead of the GM being given delegated authority to finalise the tender negotiations, he left the meeting room when this agenda item was discussed, and the business paper was amended.

“In light of a declared Conflict of Interest, the General Manager stepped away from any role or involvement in this matter, including prior to the tender and through the evaluation and reporting of the outcome,” the paper said.

Council is still hoping to wrap up this tender process quickly given the timing of the new lease has been aligned with the upcoming Stage 2 Sea Wall Project, scheduled to commence in February 2026.

During this period, the cafe and kiosk will be required to close for approximately six months or longer to facilitate essential building repair works and the construction of the sea wall extension.