Former Lagoon Restaurant site stands empty with new lease still not finalised
This prime spot at Stuart Park remains fenced off as negotiations with The Grounds continue
Nine months after Wollongong City Council awarded the lease for its premier waterfront restaurant to a big Sydney operator, the deal still hasn’t been finalised.
At council’s December 2025 meeting, councillors unanimously voted to grant a five-year plus five-year lease for the Lagoon Restaurant site to the highly successful Grounds of Alexandria. There was only one other bidder for the lease.
The longtime operators of the award-winning Lagoon, the Harrison family, decided not to contest the lease, ending an unbroken 40-year operation at the prime Stuart Park location. It was the end of an era.
The Lagoon served its final meal on 17 May with the long-term lease expiring at the end of June. The premises has now been stripped of its furniture, the prominent Lagoon signage has been removed, and for the past month a security fence has surrounded the building to keep vandals out.
There’s no evidence that the new lessee is preparing to reopen the restaurant soon. While the previous tenants have stripped out the property, the new tenant doesn’t appear to have stepped foot in the building.
New player welcomed
There was great excitement when council awarded the lease to the big new player at the end of last year.
In a statement at the time, council said Lord Mayor Tania Brown “was thrilled to see both the restaurant location and the city of 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’s December 2025 statement said the lease agreement would allow the tenant to undertake fit-out works and planned upgrade works during a closure period.
The Grounds are still in negotiations with council. Neither party is saying what the sticking point is. Meantime, the property stands empty.
Commercial in confidence
In a statement, a Wollongong City Council spokesperson said: “The previous tenant’s lease expired at the end of June 2026, with a required de-fit of the premises recently completed. The premises has now been handed back to Council in readiness for the new tenant to commence the lease once the agreement has been finalised.
“Council continues to work with the preferred tenderer to finalise legal and commercial details of the lease, as well as necessary development and operational approvals for the new fit-out of the premises.
“These are standard processes in the negotiation and execution of a lease agreement. While specific details are commercial in confidence, we will continue to work cooperatively with the incoming tenant to finalise this process.”
The Illawarra Flame has contacted The Grounds for comment.
