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The Money Desk · Blog
Re:

City of Joondalup’s 2025 Proposal for a $5.2 Million Burns Beach Café/Restaurant

The $5.2 million figure was the City of Joondalup’s 2025 estimate for the Burns Beach café/restaurant building alone, not the full coastal redevelopment. The plan depended on approvals, lease negotiations and operator procurement.
From TheFinanceBase Team2 min to read
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The City of Joondalup’s May 2025 proposal priced the Burns Beach café/restaurant building at $5.2 million, excluding GST. That was a building-only estimate: the City listed a separate $5.5 million for coastal node redevelopment, bringing the two projects to $10.7 million in its five-year capital works program. The plan was for the City to develop the facility and lease it to a commercial operator, subject to approvals and later lease and procurement steps.

What the $5.2 million estimate covers

The City’s 27 May 2025 council report lists $5.2 million for the café/restaurant building alone. It separately lists $5.5 million for the Burns Beach Coastal Node Redevelopment project. Together, the two projects total $10.7 million in the five-year capital works program. The report states these amounts exclusive of GST. City of Joondalup, Ordinary Meeting of Council, 27 May 2025

The City’s 25 June 2024 minutes record $5.2 million assigned to a dedicated Burns Beach Café/Kiosk/Restaurant reserve. That is a funding allocation, not evidence that the full amount was spent. City of Joondalup, Ordinary Meeting of Council, 25 June 2024

What was proposed for the site

The 2024 business plan describes a public food-and-beverage facility developed by the City and leased to a commercial operator. Burns Beach Major Land Transaction Business Plan 2024 PerthNow’s 27 May 2025 report described the proposal as a two-storey building with an alfresco area opening to the main dining space, alongside wider works that included a proposed 150-bay car park. These are reported proposal details, not confirmation of what has been built. PerthNow, 27 May 2025

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How the City presented the financial case

The City’s May 2025 report set out the following projections for the building. They are estimates and assumptions, not operating results:

Item City estimate or assumption
One-off capital cost $5.2 million
Recurring expenses $26,000 per year, attributed to ground lease and structural maintenance
Recurring income $344,000 per year, comprising lease income and new rates income
Annual depreciation $156,000
Estimated whole-of-life impact $16.5 million positive over 42 years

These figures are the City of Joondalup’s projections in its 2025 council report. The $16.5 million figure is a forecast over 42 years, not a realized return or guarantee. The 2024 business plan says lease income and the ground lease payable to the Crown remained subject to further negotiation; it also notes that capital costs could change with economic conditions and tender outcomes. Burns Beach Major Land Transaction Business Plan 2024

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Approvals, consultation and operator procurement

The council report said the project required a development application, building permit and clearing permit before construction. It also said further community consultation might be required during approvals. The 2024 business plan records that consultation on the coastal node concept plan took place in 2021 and that the major land transaction business plan was advertised in accordance with section 3.59 of the Local Government Act 1995 (WA).

The intended operating model was a City-owned facility leased to a commercial operator, but the lease terms and operator were not settled in the cited plan. PerthNow reported that an open tender would follow if the land lease proposal received absolute-majority approval at the 27 May 2025 meeting. The cited materials do not establish the tender’s later outcome or identify an operator.

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What is known about delivery now

The cited 2025 records establish the proposal, its estimated costs and the approval steps described at that time; they do not establish construction status or a current final cost as of 8 October 2026. The West Australian reported in 2025 that work was about to begin, but that report does not confirm the project’s present stage. The West Australian, Detailed plans of $10.7 million Burns Beach foreshore redevelopment revealed

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