Drummoyne: Bay Run cafe operators ‘in shock’ as wedding venue wins tender to take over site

The doors to a popular Bay Run cafe have closed to customers in the wake of a council decision to grant the tender to operate the site to a high end dining and wedding venue.

Aqua Luna dining has been awarded a tender to take over the site of a long-running cafe on Sydney’s Bay Run.

The owners of a long-running cafe on Sydney’s Bay Run say they have been left “in shock” after a high end dining and wedding venue was awarded a tender to take over the site.

The doors of the Watershed Kitchen overlooking Parramatta River in Drummoyne have closed to customers in the wake of decision by Canada Bay Council to grant the tender to operate the site to neighbouring business Aqua Luna.

The decision has become a talking point among residents and regular walkers along the Bay Run with 1500 people signing a petition opposing the decision. It has also fuelled speculation the Watershed Kitchen site, known for its casual vibe, is at risk of becoming a high end-dining institution.

Aqua Luna – which operates a wedding and dining venue next to the Watershed Kitchen – was awarded the contract for the site during a confidential council meeting and has plans to use the site to run a Thai restaurant as well as continental breakfasts.

Jessica Deligne, who has operated the Watershed Cafe alongside her husband for the last decade, said she was stunned to discover the couple had failed to secure the five year tender to continue operating the site.

The Watershed Kitchen has operated for 10 years.

“We’ve run it since 2015 and when the tender came up for renewal it never crossed my mind we wouldn’t be successful because everyone loves what we do,” she said.

“Normally when cafes shut their doors it’s because business isn’t going well, but that’s not why we’ve had to leave – it’s because our lease was given to someone else

“We had 19 staff who we’ve had to let go which has been devastating.

Jessica Deligne pictured at the venue.

“We complied with the council tender and even had plans to expand our service.

“Closing the doors on the last day was heartbreaking.”

The public backlash over the tender process also prompted Aqua Luna to issue a public statement on social media affirming its commitment to maintaining a “casual dining precinct” that will cater for lunch and dinner.

A Photo of the Watershed Kitchen

Peter Lufi, an architect representing Aqua Luna owners Michael Corrente and Pino Salerno, said that the tender process was fair and transparent, and the company was now in the process of finalising development plans for the site which will include demolishing parts of the ground floor and creating additional seating.

In a statement, a spokeswoman for Aqua Luna said “we acknowledge the contribution that the previous local business made to this space and the local community”.

“As long-time, local business owners ourselves, we completely understand the strong community ties that exist here, and we’re committed to ensuring that this beloved location continues to serve as a welcoming and vibrant space for everyone,” she said.

“Throughout this process we have listened carefully to the community feedback and adjusted our proposal accordingly.”

Ms Deligne said the tender process had left her family so disheartened they are now in the process of packing up their bags for brighter prospects with plans to operate a cafe on Magnetic Island in Queensland.

Aqua Luna owners Michael Corrente and Pino Salerno.

She said her tender had complied with the council requirements and included a commitment to undertaking renovation works.

Canada Bay Council Mayor Michael Megna, in a statement, said the tender process was undertaken in accordance with legislation and conducted within standard time frames.

“It is not uncommon for incumbent leasees to be unsuccessful in an open tender process as the overall community benefit informs the decision on each tender,” he said.

“The operator was aware that any future lease would be the subject of an open tender process as a consequence of the expiry of the lease.

“I am looking forward to the site’s new operator submitting their development application so that this site will be once again open to locals and visitors to Drummoyne.”

At a public council meeting last week, loyal customers of the Watershed raised their concerns over the tender process and what they described as a “lack of transparency”.

“The cafe is there for the community and the community doesn’t want fine dining at night. If it’s not broken, why fix it?” resident Jean Turner said.

The cafe site remains closed with Aqua Luna yet to confirm a reopening date for the venue.