A seafront caf owner faces a bill of £10,000 for delays in moving his business just 10ft away.
Rodney Posner gained planning permission three years ago to move The Meeting Place from Hove to Brighton.
Since then, he has been in lease negotiations with Brighton and Hove City Council.
Mr Posner, 55, signed the lease on Thursday only to find the wait had pushed his building costs up by £10,000.
He said: "It has been a hard battle but I'm so happy to have achieved this after all these years."
Mr Posner bought the 28ft kiosk in 1977.
He wanted to expand it but Brunswick Gardens, Hove, is covered by a preservation order.
There is no such restriction on the alternative site, just 10ft away across the boundary with Brighton.
Mr Posner plans a 40ft cafe on the site with much-needed extra storage space.
At the moment cakes and scones are made in nearby Chapel Mews and transported to the cafe by bicycle.
The original wooden building from the Thirties will be demolished and the area used for more outdoor seating.
But customers are sceptical about the £200,000 plan.
Richard Harris, a Meeting Place regular for five years, said: "I don't want to see the old building knocked down.
"It would be great to have it preserved. It has a casual and faded splendour and is an important part of Brighton and Hove seaside history."
Fellow customer Phil Higson said: "There should be more of this type of thing in Brighton where people can sit in the open air by the sea."
Mr Posner said: "A lot of the regulars are upset because they don't want the cafe to change.
"They like its friendly spirit. We hope the atmosphere doesn't alter.
"The modern building will give us more space and be easier to keep clean."
A council spokesman said: "We supported this move as the cafe is an institution and an important part of the seafront's attraction.
"It was even once on TV, appearing in Lovejoy.
"The move took a fair bit of time but there were all sorts of legal complexities and paperwork to be overcome.
"But better late than never. We are hopeful this will help the cafe go from strength to strength."
Building should start this month and the new cafe is expected to open by August.
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