‘Going with our hometown boys’: City awards Nikki Beach site bid in narrow vote
_fitted.png "A rendering shows a proposal by Boucher Brothers to redevelop the site of the Nikki Beach day club.")
The Miami Beach City Commission voted Wednesday night to award a 10-year deal to beach concession operator Boucher Brothers to take over the Nikki Beach day club site when its lease with the city expires in 2026.
The vote was 4-3 to accept a recommendation last week by City Manager Alina Hudak and conclude months of debate and controversy over the future of the highly coveted oceanfront property at 1 Ocean Drive.
Mayor Dan Gelber and Commissioners Ricky Arriola, David Richardson and Kristen Rosen Gonzalez supported the bid award to Boucher Brothers.
“I know in my heart this was a fair process,” Richardson said.
Arriola, who first floated the notion of having Boucher Brothers take over the site, said the city faced “a lot of unfair criticism” from the Nikki Beach owners.
“I think this is a no-brainer and I’m proud to support this today,” Arriola said.
Laura Dominguez, Alex Fernandez and Steven Meiner were opposed.
Those who voted “no” focused on concerns about the process, including the commission’s consideration of a no-bid deal earlier this year. Some advocated for delaying the vote to get more public feedback.
“This is a textbook case of, if we had done the process right from the beginning, I don’t think we would be in this position right now,” Meiner said.
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The vote directs city staff to negotiate the details of a lease or concession agreement with Boucher Brothers. The contract would come back to the City Commission for final approval.
Any lease would also need to be approved by residents in voting precincts within a mile of the property under a county charter provision for public parks. The property operated as a park before the day club took over.
Support for ‘hometown boys’
For months, Nikki Beach owner Lucia Penrod has argued the city’s process was rigged in favor of Boucher Brothers, which has operated beach concession rentals across the city for decades.
In an email Tuesday to a resident who argued against awarding the deal to Boucher, Rosen Gonzalez explained her thought process.
“I am going with our hometown boys. They have been very good to our city,” she wrote. “Economics is not always about capital.”
In a text message Wednesday to the Miami Herald, Rosen Gonzalez said she was “happy our ‘hometown boys’ won the bid proposal” based on the details of their bid.
“They won the bid fair and square, and I am happy to vote for them,” she said.
Gelber said he was following Hudak’s recommendation, as he does for almost all bids, to prevent undue influence from elected officials.
“I say, ‘What is your recommendation?’ and I am going to follow it,” he said.
The Boucher proposal
Boucher Brothers’ 10-year proposal contemplates annual payments to the city of 10% of gross operating revenue, or at least $4 million per year, increasing by 3% each year.
The Boucher proposal would put $26 million into renovating an existing building at the site. The redesign would include a pool, a wellness center and spa, a “kids corner” and a beach concession area, according to bid documents. It would also feature a Sadelle’s restaurant under a partnership with Major Food Group.
A committee reviewing proposals to operate a “high-end beach club” at the site gave high marks to Boucher Brothers earlier this month, ranking the company first among three bidders for a 10-year deal and tied for first with restaurant company The Group among four bidders for a 30-year arrangement.
Miami Beach officials last week released the complete proposals put forth by Boucher Brothers and three other bidders: The Group, RH (formerly known as Restoration Hardware) and Tao Group Hospitality.
Hudak and several commissioners said they preferred a 10-year deal to a 30-year deal to avoid getting tied up in a particular long-term use.
A controversial process
The process leading up to the bid award was riddled with tension and legal strife.
In April, the City Commission voted to pursue a non-binding term sheet with Boucher and paved the way for a possible no-bid deal. The move was met with public outcry and commissioners walked back their vote, directing staff to instead issue a request for proposals for the property and adjacent beach area.
Nikki Beach sued the city in May and later filed a formal bid protest. But their own bid was ultimately not considered, after city officials said they failed to submit it on time. Penrod says there was a glitch in the system.
The restaurant and day club is a popular party and relaxation spot at the city’s southern edge. It has operated on city land under a series of agreements since 1985. The club pays the city about $1 million per year, calculated as 6.5% of gross receipts.
This story was originally published September 27, 2023 at 10:08 PM.
