Will Nikki Beach still close next month? A settlement deal may change things
Nikki Beach is entering the final days of its lease with the city of Miami Beach, but a settlement agreement may allow the famed South Beach day club to continue operating until August 2027 before it shuts down for good.
The agreement was reached “in principle” late last month, according to court documents, and now requires approval by the Miami Beach City Commission.
The settlement would put to bed a bitter dispute between Nikki Beach ownership and the city that began in 2023.
City officials had initially contemplated a no-bid deal to allow the beach concession company Boucher Brothers to take over the site at 1 Ocean Drive, then decided to initiate a competitive bidding process amid backlash. But the city rejected Nikki Beach’s bid to continue operating at the site, saying it missed a submission deadline, and instead chose Boucher Brothers and restaurant giant Major Food Group to take over the city-owned property on prime waterfront land.
On Wednesday, the commission is slated to discuss the settlement in a closed-door session with city attorneys. Commissioners may also vote on an initial extension for Nikki Beach through this August, giving the city time to prepare settlement documents. The day club’s lease and concession agreements currently expire May 6.
Then, at a May 20 meeting, the commission could vote to finalize the settlement, including a possible extension until Aug. 6, 2027. The full terms of the settlement agreement are not yet public.
The initial extension, city officials said in a memo, is “a necessary first step in the process of settling the outstanding litigation” between the city and Nikki Beach. Lawsuits are ongoing in state and federal court.
A spokesperson for Nikki Beach declined to comment, citing the pending litigation.
Miami Beach spokesperson Melissa Berthier also declined to comment.
Nikki Beach owner Lucia Penrod and her team were still sparring with the city earlier this year. In January, lawyers for the club accused Boucher Brothers and Major Food Group of attempting a “bait and switch” by straying from their original designs for the site, including by proposing to demolish, rather than renovate, an existing building.
Representatives for Boucher Brothers and Major Food Group did not comment at the time.
Their plans to transform the property into a “world-class beachfront destination” featuring a Mediterranean restaurant, Japanese teppanyaki rooms and a Sadelle’s Café remain pending before multiple city boards.
Boucher Brothers and Major Food Group will pay the city at least $50 million over a 10-year agreement. A lease of more than 10 years would have required voter approval in a citywide referendum.
The origins of Nikki Beach date back to 1998, when it was called Nikki Café to honor founder Jack Penrod’s daughter Nicole, who died in a car crash at the age of 18. The business later became known as Nikki Beach and transformed day club culture in the area.
Jack Penrod, 85, died in February. His wife, Lucia, remains the owner and CEO of Nikki Beach Hospitality Group, which now has locations around the world.
