Miami Beach approves blockbuster deal with Boucher Brothers to take over Nikki Beach site

The Miami Beach City Commission approved a concession agreement Wednesday that will turn over operation of the Nikki Beach day club property to Boucher Brothers for 10 years starting in May 2026.

The deal means Nikki Beach, a popular South Beach hangout and party spot since the 1980s, will need to vacate the city-owned site once its lease expires.

Boucher Brothers is partnering with restaurant company Major Food Group on the project to bring a beach club and restaurants to the site. The company agreed to pay at least $50 million to the city over the course of a decade. That includes minimum annual rent payments starting at $4 million and increasing by 3% each year.

The beach concession company, whose umbrellas and lounge chairs line much of the city’s beachfront, will also pay Miami Beach 10% of its gross receipts above the amount of rent each year and an additional 5% of gross receipts between $65 million and $70 million.

“It’s hard to argue against this,” said Commissioner Ricky Arriola. “This is a great deal for the city.”

Because the deal is a concession agreement and not a lease, a voter referendum will not be required to transfer the operation of one of the city’s most highly coveted oceanfront properties.

A lease of more than 10 years would have required approval by voters in a citywide referendum under charter requirements for city-owned waterfront land. And any lease would have needed approval by residents in voting precincts within a mile of the property under a county charter provision for public parks.

Attorneys for the Nikki Beach owners, Lucia and Jack Penrod, called the concession agreement “a lease agreement in disguise” in a letter to city officials Monday, arguing voter referendums should be held. Nikki Beach has both a concession agreement with the city for its operations on the beach and a lease agreement for its use of a building on city property.

The vote to approve the concession agreement with Boucher Brothers was 6-1, with Commissioner Steven Meiner opposed.

Meiner cited concerns with the way the process has played out. Discussions about the site have been controversial, starting when a potential no-bid deal with Boucher Brothers was floated earlier this year before being scrapped, and culminating when the city rejected a bid by the Nikki Beach owners because they missed a deadline in late August.

Several elected officials applauded the deal with Boucher Brothers on Wednesday, saying the proposal and public benefits are an improvement on the current day club operations. The city’s agreement with Nikki Beach brings in about $1.4 million per year.

“The public benefits are enormous, the rent is multiples of what we have received, and the folks [city officials] have chosen and recommended to us are world class,” Mayor Dan Gelber said.

In addition to rent payments, Boucher Brothers has agreed to give the city:

• The salaries and equipment for two police officers and one park ranger, starting at $250,000 in year one and increasing by 5% each year.

• $36,000 per year for city food services for the needy.

• $30,000 per year to be distributed among the city’s public schools.

• $30,000 per year for dune maintenance.

• $20,000 per year for events for senior residents

• $2,000 per year for the Victory Garden community garden in the South of Fifth neighborhood.

• A one-time payment of $100,000 for sun shades at the Lummus Park playground or other playground improvements.

• A one-time payment of $25,000 for a dog park on Washington Ave.

• A one-time payment of $20,000 for build-out of a space of at least 250 square feet for a police sub-station or other uses by the city in a building on the property.

• A 10% discount on food and beverage for Miami Beach residents.

• A 15% discount on all Boucher Brothers beach rentals citywide for Miami Beach residents.

City officials said Boucher Brothers has also committed to conducting weekly sand sifting and daily litter cleanup in the area, offering hospitality training at Miami Beach Senior High, and hosting 12 citywide cleanup events and 12 community events per year.

Commissioner Alex Fernandez voted for the deal but said it should have included more money for public safety.

Boucher Brothers says it will invest $26 million to renovate the building at the property. The redesign would include a pool, a wellness center and spa, a “kids corner” and a beach concession area.

It would also feature a Japanese steakhouse, a Mediterranean grill and a Sadelle’s restaurant under the partnership with Major Food Group.

The site would be open to the public and free to enter, Boucher Brothers co-owner Steve Boucher told the Miami Herald after the vote.

“My family and I are very proud to have this opportunity the city is giving us,” Boucher said. “We look forward to doing some great things there.”

Jeff Zalaznick, the co-founder of Major Food Group, told the Herald his firm is “honored to have this opportunity.”

The deal gives the city the option to terminate the concession agreement with at least 180 days notice after the fifth year, but only in the event of a “financial emergency.”