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Resolution 2020-31401R E S O LU T IO N N O . 2 0 2 0 -3 1 4 0 1 A R E S O L U T IO N O F T H E M A Y O R A N D C IT Y C O M M IS S IO N O F T H E C IT Y O F M IA M I B E A C H , FLO R ID A , A C C E P T IN G T H E R E C O M M E N D A T IO N O F TH E C IT Y M A N A G E R , A N D A P P R O V IN G , P U R S U A N T TO R E Q U E S T FO R LET T E R S O F IN T E R E S T (R FU ) N O . 2019-318 -W G , FO R TH E M A N A G E M E N T A N D O P E R A T IO N O F S T R E ET M A R K ET S : 1) A C O N C E S S IO N A G R E E M E N T B ET W E E N T H E C IT Y A N D T H E M A R K ET C O M P A N Y , IN C . ("T H E M A R K E T C O M PA N Y "), FO R T H E M A N A G E M E N T A N D O P E RA T IO N O F T H E LI N C O L N R O A D FA R M E R S M A R K E T A N D 2) A C O N C E S S IO N A G R E E M E N T B E T W E E N T H E C IT Y A N D P R O D U C T IO N S U D , IN C . ("P R O D U C T IO N S U D ") FO R T H E M A NA G E M E N T A N D O P E R A T IO N O F TH E LI N C O L N R O A D A N T IQ U E S A N D C O L L E C T IB L E S M A R K E T ; A N D FU R T H E R A U T H O R IZ IN G T H E C IT Y M A NA G E R A N D TH E C IT Y C L E R K TO EX EC U T E S A ID A G R E E M E N T S U P O N C O M P L E T IO N O F NE G O T IA T IO N S . W H E R EA S , the City's open-air markets serve several objectives, including enhancing the public realm and providing a community gathering place, bringing value to neighborhoods, offering economic opportunity to local vendors and businesses, and contributing to a diverse marketplace for our residents and the community; and WHEREAS, pursuant to RFU 2019-318-WG, on August 26, 2019, the City sought letters of interests from firms qualified to manage and operate weekly street markets open to the public, featuring vendors that provide high quality and locally produced products; and WHEREAS, the City will grant to the successful proposer(s) the right, during the term of the agreements, to operate the open-air market concessions commonly known as the Lincoln Road Green Market and the Lincoln Road Antiques and Collectibles Market; and WHEREAS, the initial term of the proposed agreements is for a period of three (3) years, with two (2) additional renewal options for two (2) years each, at the City Manager's sole discretion; and WHEREAS, the City reserves the right, in its sole and absolute discretion, to add additional market locations to the contract scope under similar terms and conditions as to those existing under the negotiated contract; and WHEREAS, the City received a total of five (5) proposals from the following firms: 1) Production Sud, Inc. (Lincoln Road Antiques and Collectibles Market), 2) Rimar Investments, LLC (Lincoln Road Green Market), 3) The Market Company, Inc. (Lincoln Road Green Market), 4) Metro Promotions (Lincoln Road Green Market & Antiques and Collectibles Market) and 5) 2301 LLC OBA Just Brands (Lincoln Road Green Market & Antiques and Collectibles Market); and WHEREAS, the Administration evaluated the letters of interest based on certain criteria resulting in the recommendation of Production Sud to manage and operate the Lincoln Road Antiques and Collectibles Market and The Market Company to manage and operate the Lincoln Road Green Market; and W HER EA S, the City Manager recommends that the Mayor and City Commission authorize the Administration to finalize negotiations with Production Sud for the Lincoln Road Antiques and Collectibles Market, and The Market Company for the Lincoln Road Green Market; and further authorize the City Manager and the City Clerk to execute the final negotiated agreements. NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby accept the recommendation of the City Manager, and approve, pursuant to Request for Letters of Interest (RFU) No. 2019-318-WG, for the management and operation of street markets: 1) a concession agreement between the City and The Market Company, Inc. ("The Market Company"), for the management and operation of the Lincoln Road Farmers Market and 2) a concession agreement between the City and Production Sud, Inc. ("Production Sud"), for the management and operation of the Lincoln Road Antiques and Collectibles Market; and further authorizing the City Manager and the City Clerk to execute said agreements upon final completion of negotiations. PASSED AND ADOPTED this /~ day off~ 2020. ,,~- ....... "'6--i----tt'- _ - Dan Gelber, Mayor ATTEST: Rafa APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION 2\CL ·4te° City Attorney Date R e s ol uti on s -C Z y MIAMI BEACH COMMISSION MEMORANDUM T O : H ono rable M ayor and M em be rs of th e C ity C om m ission FR O M : Jim m y L. M ora les, C ity M anager D AT E : S ep t em b er 16 , 2020 S U B JE C T : A R E S O L U T IO N O F T H E M AY O R A N D C IT Y C O M M IS S IO N O F TH E C IT Y O F M IA M I B E A C H , FLO R ID A , A C C E P T IN G T H E R E C O M M EN D AT IO N O F T H E C IT Y M A N A G E R , A N D A P P R O V IN G , P U R S U A N T TO R E Q U E S T FO R LE T T E R S O F IN T E R E S T (R F LI ) N O. 20 19 -318 -W G , FO R T H E M A N A G E M E N T A N D O P E R AT IO N O F S T R E E T M A R K E T S: 1) A C O N C E S S IO N A G R E E M E N T B E T W E E N T H E C IT Y A N D TH E M A R K E T C O M PA N Y, IN C . ("T H E M A R K E T C O M PA N Y"), FO R T H E M A N A G E M E N T A N D O P E R AT IO N O F T H E LI N C O L N R O A D FA R M E R S M A R K E T A N D 2) A C O N C E S S IO N A G R E E M E N T B E T W E E N T H E C IT Y A N D P R O D U C T IO N S U D , IN C . (P R O D U C TI ON S UD "), FO R T H E M A N A G E M E N T A N D O P E R AT IO N O F T H E LI N C O LN R O A D A N T IQ U E S A N D C O LLE C T IB L E S M A R K E T ; A N D F U R T H E R A U T H O R IZ IN G T H E C IT Y MANAG ER AND TH E C IT Y C L E R K TO E X E C U T E S A ID A G R E E M EN T S U P O N FIN A L C O M P LE T IO N O F N E G O T IAT IO N S . ---- ··-----· - ---- - ---········---· ·---·-·-·- REC O M M E ND ATIO N T he A dm inistra tion recom m ends th at the M ayor and C ity C om m ission adopt the R esolut ion accep ting th e C ity M anag er's re com m endati on to appro ve the concession agreem ents describe d he rein, purs uant to RF L1 2019 -318-W G , for the m anag em ent and opera tion of stre et m a rk ets at Li n coln R oad. BACKGROUND/HISTORY T he C ity's open-a ir m ark ets serv e severa l objectives, including enha nc ing th e public re alm and p ro vi ding a com m unity gat hering place, bring ing value to neighborho ods, offering econom ic opp ort unity to local vendors and businesses, and contri but ing to a divers e m arketplace fo r our re siden ts a nd the com m unity . C urre ntly, suc cessful m arkets on Li ncoln R oad have been under con tract sin ce 20 14 and th e concession agre em ents govern ing those m ark ets, and any applica b le re n ewa l/ext ension periods, are sche duled to exp ire S eptem ber 30, 2019. P ursu a n t to R F LI 2019 -318-W G , th e C ity sought letters of intere sts fro m firm s qualified to m a nag e a nd op er at e we ek l y stre et m arkets open to th e public, featuring vend ors that pro vi de high q u a lity a nd locally pro duced pro ducts. The C ity wi ll gra nt to the successful pro pose r(s) the right , d u ring the term of th e ag reem ents , to opera te the open-air m arket concessions com m only kn o wn as th e Li ncoln R oad G reen M ark et and the Li ncoln R oad A ntiques an d C ollectibles Page 513 of 1855 Market. The ini ti al term of the pro posed ag re em ents is for a period of th ree (3) years, wi th two (2) additional renewal options for two (2) years each, at the City Manager's sole discretion. In addition, the City reserves the right, in the City Manager's sole and absolute discretion, to add additional market locations to the contract scope under simi lar terms and conditions as to those contained in the negotiated contracts. ANALYSIS On August 26, 2019, the City issued RFLI 2019-318-WG. The Procurement Department issued solicitation notices to 3,990 firms utilizing PublicPurchase.com. Twenty-two (22) prospective proposers accessed the advertised solicitation. RFLI responses were due and received on September 11, 2019. Proposers were invited to submit a response for any one market, or any combination of markets outlined in the RFLI. The City received a total of five (5) proposals from the following firms: Production Sud, I ne. (Lincoln Road Antiques and Collectibles Market) Rimar Investments, LLC (Lincoln Road Green Market) The Market Company, Inc. (Lincoln Road Green Market) Metro Promotions (Lincoln Road Green Market & Antiques and Collectibles Market) 2301 LLC OBA Just Brands (Lincoln Road Green Market & Antiques and Collectibles Market) The Administration evaluated the letters of interest based on criteria including: 1) relevant concessionaire experience with street markets, 2) business plans, 3) proposed site plans and layout, 4) booth quantity, design and presentation, 5) proposed product lists, 6) proposed vendor guidelines and standards, 7) references and 8) proposed revenue share. Following is a basic summary of the proposals for each market: Lincoln Road Green Market i. ii. iii. The Market Company ("Administration 's recom mended proposer ) Revenue proposal: Percentage of Gross Sales (PG)- 22.5% Proposal increased PG above current contract requirement (from 15% to 22.5%), which is a 50% increase in revenue share with the City. Current operator of the Lincoln green market for past 22 years. Operator produces consistently with quality vendors, professional staff, and reliable accounting records. Director of the Lincoln Road 8 I D submitted a recommendation letter supporting award to proposer. Metro Flea Revenue proposal: Percentage of Gross Sales (PG)- Year 1: 15%, Year 2: 17% and Year 3: 20%; annual Minimum Guarantee (MG) of $10,000. With proposer's two markets in Lummus Park, operator demonstrated need for significant oversight and moderating from City staff. Just Brands No revenue proposal or financial component provided in bid (indicated as Page 514 of 1855 iv. required com ponent of bid docum ent). Proposal dram atically m odified the m ark et's scope in a direction different than City desire s (expansion of m arket the entire length of Li ncoln ro ad, on both we ekend days , and intro duction of new, incom patible pro ducts). No exp erience indicated wi th the production and/or m anagem ent of m ark ets Rimar Investments Revenue proposal: Percentage of Gross Sales (PG) - 15%; annual Minimum Guarantee (MG) of $5,000. No experience indicated with the production and/or management of markets Lincoln Road Antiques & Collectibles i. Production Sud ("Administration's recommended proposer) Revenue proposal: Percentage of Gross Sales (PG) - 15%; annual Minimum Guarantee (MG) of $34,034.18. Proposal increased PG above current contract requirement (from 12.5% to 15%), which is a 20% increase in revenue share with the City. Current operator of Lincoln antiques market for past 25 years. Operator produces a consistently reliable production with quality vendors/products, reliable accounting records, and responsive management staff. ii. Metro Flea Revenue proposal: Percentage of Gross Sales (PG) Year 1-15%, Year 2 - 17% and year 3-20%; annual Minimum Guarantee (MG) of $15,000. With proposer's two markets in Lummus Park, operator demonstrated need for significant oversight and moderating from City staff. i. Just Brands No revenue proposal or financial component provided in bid (indicated as required component of bid document). Proposal dramatically modified the market's proposed scope in a direction different than City desires (expansion of market the entire length of Lincoln road, on both weekend days, and introduction of new, incompatible products). The evaluation process resulted in the recommendation of Production Sud to manage and operate the Lincoln Road Antiques and Collectibles Market and The Market Company to manage and operate the Lincoln Road Green Market. Following is a brief summary of the qualifications of the two (2) recommended proposers, as provided in their response to the RFLI. Produ ction Sud Founders Louis Bondi and Tony Angione developed and created the Lincoln Road Antique and Collectible Market. Previously Mr. Angione facilitated a Market on Broadway at Grand Street in New York City. Mr. Bondi ran a very successful antique shop in the East Village and also ran an outdoor antique show in Germany. As Production Sud, they have been in business for over 20 years and have managed over 400 Page 515 of 1855 events including Vintage South Florida in Hollywo od, W estin Antique Market, Fort Lauderdale Antique M arket, and Clematis Street Market in W est Palm Beach. In 1991 Pro duction Sud established business in Miami Beach. Anthony Angione and Louis Bond i opene d a shop ca lled "Debris" at 630 Lincoln Road and quickly beca m e involved in th e Lincoln Road revitalization. Louis served as th e President of the Li ncoln Road Merchants Association fo r a time. He wa s a firm believer in strengthening the local identity and building a greater sense of com munity own ership. Both wel come d the establishment of the Li ncoln Partnership and the promise of a fut ure vital economy for all. The first Antique and Collectible show was in 1992. At that time, the west end of Lincoln Road was barren and desperately in need of pedestrian traffic. The market quickly caught the public's interest and support. Today the Antique and Collectible Market plays a vital role in the community economy. It serves as a gathering place for people of different ethnic, cultural and socioeconomic communities. It provides the ultimate incubator for small businesses, as market vendors fueled with self-motivation and commitment engage in the open marketplace. For over 25 years, the Antique and Collectible Market has contributed significantly to Lincoln Road as a vibrant gathering space for the community and world-wide visitors. The Market Com pany, Inc, The Market Company was formed in 1997, and incorporated in the State of Florida in 2007, with the primary mission of producing special events with an emphasis on farmers markets. For over 20 years, The Market Company has produced markets in Fort Lauderdale, Pinecrest, Little Havana, Miami Springs, Miami, Miami Beach, Key Biscayne, Boca Raton, Williams Island, Deerfield Beach, Miami Lakes and Miami Shores. Currently, The Market Company produces the Lincoln Road Green Market (22 years), Normandy Village Marketplace (21 years), Well 'Canes Markets on the University of Miami campus in Coral Gables and the Medical Center campus, a part of the Jackson Hospital complex. The Market Company also produces markets at Jackson South Hospital, Government Center Downtown, Miami Shores, Miami Lakes, and at the Lennar Center in Coral Gables. The Market Company vendors provide locally grown quality produce and tropical fruits, fresh baked breads, cakes and cookies, plants, spices, local honey, and an impressive array of prepared foods. The Market Company promotes selection of vendors that have local connections and interviews all prospective vendors to review the market application and guidelines. CONCLUSI ON The City Manager recommends that the Mayor and City Commission authorize the Administration to finalize negotiations with Production Sud for the Lincoln Road Antiques and Collectibles Market, and The Market Company for the Lincoln Road Green Market; and further authorize the City Manager and the City Clerk to execute the final negotiated agreements, pursuant to Request for Letters of Interest (RFLI) 2019-318-WG, for Management and Operation of the Street Markets; and further authorize the City Manager and the City Clerk to execute the final negotiated agreements. Page 516 of 1855 Ap plicab l e Area South Beach ls this a "Residents Right to Know" item, pursuant to City Code Section 2-14? No Doe s thi s item utili ze G.0, Bond Fun ds? No Strategic Conn ection Prosperity - Market and promote Miami Beach as a world class arts, culture, and quality entertainment destination. Legislative Tracking Property Management ATTACHMENTS: Description Resolution Page 517 of 1855