Miami Beach Approves Boucher Brothers’ & Major Food’s $26 Million Proposal for Nikki Beach Club Site

Despite protests from some residents, Miami Beach city commissioners 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 decision and what it means: In late September 2023, the commission voted 4-3 to grant City Manager Alina Hudak the authority to negotiate a new 10-year lease with the joint venture, starting in 2026 when the current lease expires.

The resolution comes after a long-drawn bidding process that began in April, when the city commission first gave a no-bid, non-binding term sheet to Boucher Brothers. However, the commission rescinded that decision following complaints from residents and opened up the bidding process to other companies.

What the approved bid entails: Boucher Brothers and Major Food Group's proposal was selected over others submitted by The Group, RH, and Tao Group Hospitality. The joint venture is offering the city annual payments amounting to 10 percent of the upcoming new beach club's gross operating revenue, or $4 million per year. These payments would escalate by 3 percent annually, resulting in approximately $41 million for Miami Beach over the 10-year term.

The partnership has proposed a $26 million renovation of the existing building, encompassing a pool, a wellness center and spa, a “kids corner,” and a beach concession area, according to bid documents. Their submission also features Sadelle’s, an all-day dining restaurant by Major Food Group.

Some valid concerns: Residents have spoken against the city's decision to select Boucher Brothers and Major Food Group, arguing that the process was rushed and that the joint venture's winning bid is not in the best interests of the city. However, city officials have defended the decision, saying that this proposal is the most financially beneficial to the city and that the renovation plans will improve the site.

The city is in trouble: The Penrods, the current operators of Nikki Beach Club, have filed a lawsuit against the city, alleging that city officials violated procurement rules by initially selecting Boucher Brothers and rejecting their proposal. The lawsuit is still pending.

The approval of Boucher Brothers and Major Food Group's proposal is a major victory for the joint venture and a setback for the Penrods. The new beach club is expected to open in 2026.