Operation
Just a few months after the restaurant opened, The Water Club made headlines when it refused to serve Mimi Sheraton, the food critic for The New York Times. Sheraton had eaten at the restaurant unnoticed the first time she dined at the venue, but was recognized when she returned for dinner with four guests on December 30, 1982. It was the first time she had been refused service by a restaurant. In a news conference that followed the incident, O'Keeffe explained that he decided to exclude the food critic because he thought her reviews were inaccurate and was particularly unhappy about the one-star rating that she gave his River Café in Brooklyn.[15][16] In 1988, O'Keeffe hired Richard Moonen to serve as the restaurant's head chef, where he remained until 1994.[17][18]
The Water Club was located in a prime viewing spot for the Macy's 4th of July Fireworks usually held over the East River;[19] the venue had been used during the event as a command center for the fireworks show,[20] a filming location for its broadcast on television,[19][21] and private receptions for Macy's guests.[21][22][23] The waterfront promenade built as part of the restaurant included 396 ft of docking space that was used by private yachts, including vessels owned by Malcolm Forbes and Donald Trump for viewing the fireworks display on the 4th of July.[24][25][26]
In 2001, the restaurant's original lease agreement with the city was amended and the term was extended through 2030. The agreement was made through the city's Department of Small Business Services and administered by the Economic Development Corporation.[5] In 2011, the New York City Comptroller issued a report alleging that The Water Club was understating its revenue by failing to record some cash sales; the property was leased from the city and a portion of the rent was determined by the amount of revenue.[5][27] The restaurant had been previously accused of inaccurate record-keeping when its former manager was found guilty of embezzling $485,000 when he worked at The Water Club from 1983 to 1986; at that time it was the tenth largest grossing restaurant in the country.[28]
Like its sister restaurant The River Café, The Water Club was heavily damaged by Hurricane Sandy in October 2012, forcing its temporary closure for repairs.[29] The venue's event space reopened in May 2013, followed by the rooftop bar over the summer and the restaurant in October 2013.[30]
The restaurant was later converted into a venue for private events. In 2021, O'Keeffe proposed adding a 24000 sqft high-end casino next to the venue, which drew opposition from some of the local residents.[31][32][33] Subsequent to what was originally announced as renovations,[34] The Water Club closed permanently in 2024 when the remaining time on the venue's lease was turned back over to the city.[35]
