Miami Beach, FL – May 11, 2023 – Miami Beach’s South of Fifth is working hard to shed its once-party-centric title, and Nikki Beach is the latest focus.
After nearly 25 years in business, city officials are moving to replace the day club and oceanside lunch spot with something more high end. In a five to two vote on Friday the commission approved the process to move forward with presenting a new proposal for the 1 Ocean Drive space.
The new proposal comes from a partnership with powerful beach concession company the Boucher Brothers, and famed hospitality group Major Food Group. In a statement to World Red Eye a representative for Boucher Brothers said, “Boucher Brothers & Major Food Group are honored and look forward to exploring a partnership that offers an elevated, proven concept for Pier Park and the community.”
The move to allow a non-binding term sheet comes as a deviation from what would normally be a competitive process. Traditionally the city would allow for open bids with requests for proposals (RFPs) offered by anyone interested in the space, to then be weighed in and voted on by the commission.
While the lease does not expire until May 2026, the move seemed to blindside current lease holders Lucia and Jack Penrod, who have operated on the city-owned space for 37 years, first as Penrod’s on the Beach then as Nikki Beach. The couple argue they’ve taken steps over the years to limit noise and adapt to the city’s needs, as requested of them. In a statement on behalf of Lucia Penrod, CEO of Nikki Beach, the company told World Red Eye “We’re very disappointed that the commission approved the process. They did not move to an RFP, which is an open and competitive process and the standard procedure. And it is also how we won the lease 37 years ago. We do wish to thank Commissioners Fernandez and Meiner who voted against the process. We’re meeting internally and considering all options and next steps.”
The acceptance of a new proposal is part of a larger trend to eliminate party culture in Miami Beach, especially in the South of Fifth neighborhood.