By the late 1970s the 50-year-old Centenary Bathing Pavilion was deteriorating and considered structurally unsound.
A pounding by Cyclone Alby in 1978 also led to safety concerns about the concrete boardwalk leading to the groyne.
In 1979 the Council began demolition of the boardwalk and commissioned a report on the best options for the Pavilion. The report recommended demolition as it was not considered economically viable to restore the Pavilion. In June 1982 demolition began.
A new plan for the site by Brand, Deykin & Hay was proposed. The two-storey building included a boatshed and changerooms at the beach level and café/restaurant area on the second level, preserving the open view out to sea.