Beach concessionaires and partner Major Food Group offered roughly $4M per year for new lease
Despite some opposition from residents, Miami Beach elected officials narrowly approved a proposal by Boucher Brothers and Major Food Group to take over the Nikki Beach Club site in the city’s South of Fifth neighborhood.
The city commission voted 4-3 Thursday night to authorize City Manager Alina Hudak to negotiate a new 10-year lease with the joint venture to take over the city-owned property at 1 Ocean Drive when the agreement with the current operators, Jack and Lucia Penrod, expires in 2026.
The decision marks the end of a contentious procurement battle that began in April when city commissioners initially awarded Miami Beach-based Boucher Brothers a no-bid, non-binding term sheet for Nikki Beach Club, a restaurant-and-entertainment venue the Penrods have controlled for 38 years. A month later, the city commission rescinded its decision amid complaints from residents, and ordered a competitive bidding process.
“I know in my heart that this was a fair process,” said commissioner David Richardson, who voted yes. “It was objective. At the end of the day, the city administration has recommended an operator we know and has been a responsible operator for many, many years.”
Boucher Brothers, which has a longstanding contract to provide beach chairs and other concessions in Miami Beach, and Major Food Group beat three other proposals by The Group, RH (formerly known as Restoration Hardware) and Tao Group Hospitality.
However, the Penrods have a pending lawsuit and a court petition against the city, alleging Miami Beach officials violated procurement rules in initially going with Boucher Brothers and for rejecting its proposal because they submitted it 15 minutes after a city-imposed deadline.
A “flawed” competitive process
Commissioner Steven Meiner, who voted no, said the city’s process in finding a new operator for 1 Ocean Drive was flawed from the beginning. “We started off on the wrong foot,” Meiner said. “There was such an outcry from our residents that the commission voted again to open it up for bid. It ultimately soured the process.”
In addition to Richardson, Mayor Dan Gelber and commissioners Ricky Arriola and Kristen Rosen Gonzalez voted for the Boucher Brothers and Major Food Group, which owns and operates fancy restaurants such as Carbone at 49 Collins Avenue in Miami Beach. The New York-based firm is also partnering with David Martin’s Terra to develop a 58-story condominium in Miami’s Edgewater.
Source: TheRealDeal
