Questions raised over Thirroul Pavilion Cafe tender decision

The operator of Thirroul’s popular beachfront cafe has questioned what she describes as a “bizarre” tender process that will see new management take over the venue at the end of next month.

Lana Bloom is managing director of the Thirroul Beach Pavilion, and for the past decade her team has served many thousands of coffees, burgers and fish and chips to regulars and visitors to the beach.

Early this year Wollongong City Council called for tenders for the property it described as “an iconic beachfront venue overlooking the scenic shores of Thirroul Beach. The cafe has long served as a community hub, offering relaxed seaside dining and convenient access to one of the region’s most popular and accessible beaches. Renowned for its stunning ocean views, family-friendly surrounds, and a laid-back coastal atmosphere, the cafe continues to be a valued destination for both locals and visitors.”

In its tender documentation, Council required the successful operator “to demonstrate the capacity to establish and operate a sustainable and commercially viable hospitality business, while also enhancing the overall amenity and visitor experience of the cafe and the surrounding foreshore area”.

As reported by The Illawarra Flame last month, Council received three tenders: two complying and one non-complying. In its report to Council, staff said “the Tender Evaluation Panel evaluated all tenders in accordance with the … evaluation criteria and weightings as set out in the formal tender document”.

Lana Bloom said the details included in the report to Council, which informed the decision to award the tender to her only rival tenderer, NB Kiosk Pty Ltd, differed from the advice she received from Council once the decision was made.

“I received correspondence from WCC stating: 'regarding the tender submissions received, the evaluation panel determined that only the complying submissions would be assessed. Alternative (non-complying tenders) were not considered, as the complying tenders were assessed as representing best value for Council. Accordingly, Council did not assess the alternative submission as part of the tender assessment'.”

Lana said she found it “bizarre” that her non-conforming tender wasn't considered in the mix, together with her conforming tender and the ultimate winning tender from NB Kiosk Pty Ltd, the operators of Diggies and the North Beach Kiosk. Late last year, the Diggies operators won a 15-year extension to their lease after initially submitting a non-conforming tender which, on that occasion, wasn’t ruled out by Council.

Just as he did for the Diggies lease process, Council’s general manager, Greg Doyle, exempted himself from the Thirroul tender process. He has a business relationship with the NB Kiosk operators outside of Wollongong LGA. “Considering 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 staff‘s report to Council said.

'No conversation' about 'community asset'

Lana Bloom has questioned why non-conforming tenders have been accepted in the process in some cases (including when her business was successful in winning the Bulli Beach Cafe tender last year) but not in the case of the Thirroul Beach Pavilion. “With Bulli there was a conversation with Council; with Thirroul there was no conversation at all.”

She has shared her non-complying tender documentation with The Illawarra Flame, in which Lana “outlined an alternate set of commercial terms aimed at supporting the long-term sustainability of the business, while ensuring the Pavilion continues to be a vibrant, activated and well-utilised community asset”.

The non-complying tender, which proposed a 5 + 5 + 5 year lease structure compared to the 10 years on offer, also included significant capital investment.

Major upgrades proposed

Those works included an al fresco dining upgrade that would see the installation of a freestanding waterfront pergola at an estimated cost of $250,000; the refurbishment and modernisation of the kitchen and service areas, also at a cost of about $250,000; the full replacement and upgrade of seating, tables and finishes to enhance comfort and the customer experience at a cost of up to $120,000; an upgrade and refurbishment of the timber flooring throughout at a cost of up to $25,000; and a total repaint refresh of the interior, together with new cabinetry and the installation of new stone benchtops at a cost of $60,000.

At a total cost of about $700,000, the tender document said “these works represent a significant financial commitment and will deliver long-term improvements to functionality, safety and the overall amenity of the venue, while all upgrades ultimately remain with the lessor”.

“We propose an annual base rent of $184,500 per annum in accordance with the independent rental valuation prepared by Herron Todd White.

“Our vision is to enhance the space in a manner that is fully respectful of heritage constraints, while improving its functionality and resilience. Following discussions with heritage consultants, we are confident that it is possible to create a weather-protected, all-season offering that significantly improves the usability of the venue without impacting the heritage fabric,” the non-conforming tender said.

Clarity sought over 'best value' assessment

In correspondence to Council, which Lana also shared with The Illawarra Flame, she asked for “the rationale behind deeming our alternate submission non-complying, instead of considering it as an alternate commercial proposal, particularly given similar submissions have been considered in previous Council tender processes”.

She also asked for “the criteria used to determine 'best value' without assessing all submitted proposals” and “whether the assessment of “best value" included factors beyond financial and commercial metrics, to include demonstrated community benefit, operational capability, and long-term viability”.

“As the incumbent operator of the Thirroul Beach Pavilion for the past 10 years, the alternate submission was made in good faith, with the intention of addressing what we considered to be some genuine commercial and operational realities associated with the site, particularly around building and infrastructure issues that have been raised over many years.

“My intention is not to challenge the integrity of the tender process, but simply to better understand how alternate submissions are handled, particularly where Council expressly permits them as part of the procurement process.

“Our alternate submission was not frivolous or speculative. I’m struggling to reconcile the explanation that Council determined the complying submissions represented 'best value' without assessing the alternate tender submission at all. It seems difficult to form a complete view of what represents best value for Council, and more importantly for the broader community, if all submissions put forward in good faith were not actually considered on their merits,” Lana wrote in her correspondence to Council.

Council's response

The Illawarra Flame asked Council why the Thirroul Pavilion Cafe tender had been handled differently to other recent tenders for Council-owned cafes.

In a statement, a Wollongong City Council spokesperson said: “In line with probity requirements, Council does not provide detailed commentary on individual tender evaluation scoring or comparative assessments. Council remains committed to transparent and robust procurement practices that achieve fair and equitable outcomes while delivering community benefit.

“Council assesses all tenders in accordance with its Procurement Framework, which establishes clear, consistent requirements for probity, fairness, and value for money. For the Thirroul Pavilion Cafe process, Council evaluated the submissions against the published criteria and determined that the complying tenders represented the best overall value for Council and the community.

“While each procurement process is undertaken in accordance with the same framework, outcomes can differ depending on the specifics of each site, the proposals received, and the assessed risks, benefits, and value to the community. As an example, a longer lease term was offered for the Bulli Beach Cafe in recognition of the significantly greater capital investment required at that location,” the spokesperson said.

Lana Bloom said all 12 staff employed at her Thirroul cafe would be offered continuing employment at the Bulli Beach Cafe and North Beach Pavilion once the current lease comes to an end on 31 July 2026.

The cafe is expected to be closed for about two months to enable Council to undertake essential repairs and maintenance with a reopening date, under new management, on 1 October 2026.