Nearly a million dollars a year will be lost to the community if Cafe 3nineteen is demolished before a suitable replacement is ready to be built according to the cafe's owner, Mark Burnett.

Situated near the Sugar Wharf with views of the inlet and the range, the popular eatery employs up to 25 staff at peak times and has provided hundreds of thousands of dollars in wages since it took over the building in April 2011.

With the building due to be demolished in the coming months to make way for a grassed area, Mr Burnett argues Council should delay their plans.

"We knew that we only had a lease until October 30 this year...then they came up and said we could have another extension for a month to handle the Solar Eclipse.

"Here we are closing in on that date and just yesterday (Wednesday) at the Council meeting the project has basically been shelved unless they get the funds (from State and Federal Government).

"I'm looking at the business point of view. Yes, I make money and I'm going to feather my own nest because that's what we do, but we keep people employed here.

"Our payroll last year was just over $400,000 just for this property, our goods and services was just over $500,000 which includes tradies, milkmen, fruit and veg, a lot of it localised.

"All that money that is being generated and going back into the community is just going to stop.

"Why are we closing down a restaurant that is trading very well?"

Mr Burnett, who also operates Cafe Fresq in Grant Street said the uncertainty has meant his staff have no job security.

"We've just lost one today because they know we're closing, and this is the problem we have. It's a very dicey situation."

Mr Burnett's advice to Council is blunt.

"Don't demolish the building. You've only got $500,000 in the budget to do this, and we're going to turn it into a grassed area where 50 people can sit on the grass and say 'isn't it lovely' or 2000 a week can come down here and generate money for the community. It doesn't make sense economically.

"If you get the waterfront (funding) then trash the building then, we'll gladly move. But just to turn it back to grass and turf a lot of people out of jobs and a million dollars literally going back to the community. That's the crux."

Mayor Bob Manning told The Newsport that Mr Burnett would be in a better position to negotiate if he signed the extension to the lease offered by Council, effectively allowing him to operate 3nineteen until 30 November.

"If I was him that's the first thing I'd be doing," Cr Manning said.