Newcastle Council has closed beloved Stockton cafe, Lexie's on the Beach, until further notice, following advice from coastal engineers.
Newcastle Council extended the closure, as they were advised the erosion impact on the building had created an "imminent risk to public safety" and as a result, the building cannot be occupied.
Cafe' Owner, Nick Sovecheles, says 25 staff members of the cafe will now be left without a job.
"At 9 o'clock we received a phone call and I had to walk out to my staff and say we are shut and they have not given us a re-open date," he said.
"I'm hoping it's not permanent."
"They've said the surf club there is safe because it has a rock wall in front. We have had plumbing and a rock wall put all the way out the front of Lexie's as well," he said.
"Look we get a feeling they don't want Lexie's here. I've asked them a while back and a second time, can we do something to the building? We will do it."
"At 9 o'clock we received a phone call and I had to walk out to my staff and say we are shut and they have not given us a re-open date," he said.
"I'm hoping it's not permanent."
Mr Sovechles is contesting the closure of the venue, saying it is still safe for them to operate, and says he will be getting independent advice.
"They've said the surf club there is safe because it has a rock wall in front. We have had plumbing and a rock wall put all the way out the front of Lexie's as well," he said.
"There is nothing wrong with those foundations that's a fact. I'm sure that's secure, it certainly can hold 60 tonne. I'm not standing here scared."
Mr Sovechles says the council have done adequate work in protecting the area, and the closure is unnecessary.
He says he received an email saying the cafe was unsafe due a one in two year event.
"If you hear of a wave I give you my word, we will shut it," he said.
"Look we get a feeling they don't want Lexie's here. I've asked them a while back and a second time, can we do something to the building? We will do it."
City of Newcastle Infrastructure and Property Director, Ken Liddell, said the decision was made because of the unacceptable risk to public safety.
“We understand the direct impact this will have for the operators of the Café, staff and its patrons as Lexie’s is a much-loved and valuable part of the community," he said.
"We will be working closely with the business owner to transition out of the premises to make this difficult process as smooth as possible."
The independent report following further severe erosion in recent weeks stated the building is within a hazardous zone of wave impact and is at immediate risk of significant damage or failure in a one-in-two-year storm event.
“The erosion of Stockton Beach has been recognized as a natural disaster and the City must keep public safety a priority as the ongoing issues are managed and we work with the NSW Government on sustainable long-term solutions," Mr Liddell said.
Mr Sovechles said the closure has already taken a toll on his family."I've got a job and I'm reasonably okay, however my young bloke applied for a home loan to buy a house in Stockton to settle this Friday."
"They rang to say we can't settle because we've just found out you don't have a job."
NSW Labor Member Jodi Mckay speaking to Lexie's on the Beach Owner, Nick Sovechles