City Manager of Miami Beach Suggests A New Vendor For Nikki Beach

Miami Beach City Manager Alina Hudak has recommended that beach concession operator Boucher Brothers take over the site of the long-standing Nikki Beach day club once its lease expires in 2026. The City Commission will make the final decision at a meeting on September 27. Boucher Brothers’ 10-year proposal includes annual payments of 10% of gross operating revenue or a minimum of $4 million, with a 3% increase each year, totaling about $41 million in rent over the term. They also plan to invest $26 million in renovating the existing building, adding amenities like a pool, wellness center, and a Sadelle’s restaurant in partnership with Major Food Group.

The Group, a New York-based collection of restaurants, submitted a 30-year proposal offering $3 million in annual rent with a 10% increase every five years. Their plan involves tearing down the existing Nikki Beach building and constructing a new one with a multi-floor restaurant, a cultural theater space, a “lagoon area” for wellness programs, and a beach concession area, amounting to a $36 million investment.

Hudak favors a 10-year deal over a 30-year one to allow flexibility for potential future uses of the property. Any lease exceeding 10 years would necessitate citywide voter approval, and residents within a mile of the property at 1 Ocean Drive would need to consent, as per county charter provisions for public parks.

Notably, representatives for Nikki Beach were excluded from the bidding process due to a technical issue with the city’s online portal, a move contested by the club’s owners, Jack and Lucia Penrod, who have filed a challenge in Miami-Dade Circuit Court. The Penrods have proposed revamping the existing building to include a restaurant and bar, terrace, special events space, retail shop, children’s play area, butterfly garden, and oceanfront beach club. They have alleged bias in favor of Boucher Brothers since April, leading to a public outcry and a subsequent call for proposals for the property and adjacent beach area.

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