Scarborough Beach venue pushes for independent assessment after council terminates lease
A popular Italian restaurant that sits above one of Perth's best-known beachside pools is fighting to reopen after its local council terminated its lease, citing unresolved water damage to the building's structure.
La Capannina, which has occupied the top floor of the City of Stirling's Scarborough Beach Pool facility since 2018, was locked out of its premises following the Easter Monday public holiday after the City of Stirling moved to end the tenancy. The council cited water penetrating a concrete slab as posing a "significant structural risk" to adjoining businesses, including Zoie Cafe below.
Owner Karri Li disputes the council's characterisation of events, maintaining that rectification works have been completed and that she is entitled to a final inspection to confirm compliance. In a statement provided to PerthNow, Ms Li called for an independent assessment to break the impasse.
"We have already identified and fixed the source of the water issue, and extensive works have been completed. There is currently no sign of ongoing water ingress.
We have repeatedly invited the City to inspect the premises, but no further inspection has taken place. To move forward fairly, we have proposed appointing an independent expert to assess the site. We believe this is the most reasonable and transparent way to resolve the situation."
Li said the team remains committed to staying together during the closure, with up to 40 staff on the venue's off-peak roster.
"During this time, we are continuing to support our team and keep everyone together, because we believe in reopening and moving forward," she said. "Our goal remains simple — a fair outcome and the opportunity to reopen. We remain open to resolving this constructively, but will take any further practical and legal steps necessary to seek a fair outcome."
The City of Stirling has maintained the closure was a measure of last resort following a lengthy compliance process. Mayor Mark Irwin said the council had issued multiple formal notices to the tenant since late 2024, including Improvement Notices in February and October 2025 and a Breach Notice in March 2026.
"We have conducted tests and inspections in that period and issued multiple notices," Mayor Irwin told PerthNow. "Unfortunately, the tenant has repeatedly failed to comply with the notices, leaving the City with little choice but to terminate the lease.
"We are passionate about supporting small businesses and local jobs, and terminating a lease is a last resort, but the water penetration issue now represents a significant structural risk. We plan to start the works required to rectify the issue as soon as possible."
The restaurant announced its closure on the Tuesday following the public holiday, urging supporters to sign a community petition calling for the council to reverse its decision. The petition had attracted more than 2,300 signatures within days of launching, reflecting the venue's standing among local patrons, staff and suppliers.
Jonathan Jackson, 5th May 2026
