The house was originally built as a slaugter house, but the largest part of the restaurant was for the longest time used as a freezing plant for the local store Kaupfélag Vestur-Húnvetninga. Before this house was built, a house called Sjávarborg was located where the restaurant is now. Sjávarborg Restaurant is named after that house. The old Sjávarborg was moved to another part of town.


Ideas, inspiration and material from the local environment was the main focus of the renovation. The largest part of the furniture and furnishings are built by locals from local material. For example the bar is made from concrete but the cement was made from rocks and gravel from the shore beneath the restaurant, the rocks and gravel can be seen very well in the concretes surface. The light fixture in the restaurant are made from mussle float and driftwood, steal bobbin are used as table legs among other sea/fish related material that have a brand new purpose. Old objects that belong to Kaupfélag Vestur-Húnvetninga got new roles. A old post shelf, meat hangers from the old slaughterhouse and a refridgerator element has been painted and is used for decoration. The classic designer chair Skata by Halldór Hjálmarsson decks the place, but this design is from 1959. 

Many diffrent people took part in designing the restaurant with delivering ideas and work effort; Sjávaborg's managers, tradesmen along with local craftsmen and women. The Arcitect firm Arkibúllan arkitektar was the head designer of Sjávarborg restaurant, Ráðbarður designed the structural frame and plumbing, Ársæll Daníelsson designed electrical installation along with Stefánsson ehf. The company Tveir Smiðir ehf. managed the construction, Tengill managed electrion constructions, Villi Vlli ehf did all house painting and Ágúst Þorbjörnsson all steel construction. Sculptures and wall art was designed by Sigríður Lárusdóttir and Margrét Sóley (M.Sól), ceramics designed by Gréta Jósefsdóttir and driftwood light fixture was designed by Daníel Karlsson. Developers of this project was Kaupfélag Vestur Húnvetninga but Sveitasetrið Gauksmýri manages Sjávarborg.

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