Resolution 2023-32612RESOLUTION NO.' 2023-32612
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, RESCINDING RESOLUTION NO. 2023-32586,
WHICH AUTHORIZED THE ADMINISTRATION TO NEGOTIATE A
PROPOSED NON -BINDING TERM SHEET WITH CITY'S EXISTING
BEACHFRONT CONCESSIONAIRE WITH RESPECT TO THE POTENTIAL
MANAGEMENT OR OPERATION OF THE PROPERTY LOCATED AT 1
OCEAN DRIVE AND ADJACENT CONCESSION AREA (THE "PROPERTY"),
TO BE EFFECTIVE AFTER THE EXPIRATION OF THE EXISTING LEASE
AND CONCESSION AGREEMENT WITH PENROD BROTHERS, INC.; AND
DIRECTING THE ADMINISTRATION TO PREPARE AND ISSUE A REQUEST
FOR PROPOSALS (RFP) FOR THE MANAGEMENT OR OPERATION OF A
HIGH END BEACH ESTABLISHMENT AND ANCILLARY USES ON THE
PROPERTY AND ADJACENT CONCESSION AREA, IN ACCORDANCE WITH
THE REQUIREMENTS SET FORTH IN THIS RESOLUTION.
WHEREAS, on October 2, 1985, the Mayor and City Commission adopted Resolution
No. 85-18223, approving a Lease between the City and Penrod Brothers, Inc. ("Penrod"), dated
November 7, 1985 (the "Lease"), as amended by Amendments No. 1-3 thereof, for the
development, construction, management and operation of a restaurant facility at 1 Ocean Drive;
said Lease having an initial term of twenty (20) years, with two (2) ten-year renewal terms, at
Penrod's option, currently set to expire on May 6, 2026; and
WHEREAS, on October 2, 1985, the Mayor and City Commission also adopted
Resolution No.85-18222, approving a Concession Agreement, dated November 7, 1985,
between the City and Penrod ("1985 Concession Agreement") for the rental of beach
equipment, water recreation equipment and food and beverage service at various locations in
the vicinity of the leased property, which agreement was amended several times until its
expiration in 2003; and
WHEREAS, on February 25, 2004, the Mayor and City Commission waived the City's
competitive bidding requirements and approved a bid waiver in favor of Penrod via Resolution
No. 2004-25506, approving a new Concession Agreement between the City and Penrod for the
management and operation of a concession in an area generally located east of the existing
building and parking lot, providing for a minimum annual payment of 6.5% of Penrod's gross
receipts, with an initial term commencing on October 1, 2003 and expiring on May 6, 2006, and
an option to renew to run concurrent with the term of the Lease, which Concession Agreement
is set to expire on May 6, 2026; and
WHEREAS, on October 26, 2022, at the request of Commissioner Ricky Arriola, the
Mayor and City Commission approved the referral of Item C4 L to the Finance and Economic
Resiliency Committee ("FERC" or the "Committee") to discuss the upcoming expiration date of
Penrod's Lease and Concession Agreement; and
WHEREAS, on January 27, 2023, the item was discussed at FERC and the Committee
directed the City Administration to undertake the following actions and return to the March 31,
2023 FERC meeting: (1) engage community partners who possess a proven track record and
reputable operators; (2) obtain two (2) appraisals for the property; (3) conduct a facility
conditions assessment of the property; and (4) meet with neighborhood association(s) and
provide a vision plan based on suggestions from the area residents; and
WHEREAS, on April 28, 2023, following a unanimous recommendation by the Finance
and Economic Resiliency Committee, the Mayor and Commission adopted Resolution No.
2023-32586, authorizing the Administration to negotiate a proposed'non-binding term sheet with
the Boucher Brothers Miami Beach, LLC with respect to the potential management or operation
of the property located at 1 Ocean Drive, to be effective after the existing Lease and
Concession Agreement with Penrod has expired (May 6, 2026); and
WHEREAS, since the April 28, 2023 City Commission meeting, the Sponsor of this
Resolution, Commissioner David Richardson,. learned that the Penrod's current concession
agreement was approved in 2004 as a bid waiver, and that Penrod has been operating the
concession area on the- Property without any competitive process for nearly twenty (20) years;
and
WHEREAS, based on the foregoing, Commissioner Richardson has sponsored this
Resolution, to rescind Resolution No. 2023-32586, and finally provide for a competitive process
with respect to the future use of the Property, after the expiration of the Penrod's current twenty-
year bid waiver for the use of the entire concession area adjacent to the Property; and
WHEREAS, to the extent this Resolution involves a motion for reconsideration of the
City Commission's April 28, 2023 vote, the Sponsor of this Resolution, having voted in favor of
Resolution No. .2023-32586, was on the prevailing side and may therefore properly present a
motion for reconsideration thereof, in accordance. with the City Commission's procedural rules;
and
WHEREAS, as part of this Resolution, the Mayor and City Commission further desire to
direct the Administration to prepare and issue a Request for Proposals for the management or
operation of a high end beach establishment and ancillary uses on the Property and the related
concession area, in accordance with the requirements set forth herein, as follows:
• The RFP shall seek proposals for the management or operation of a high end
beach establishment and ancillary uses on the Property, including the boundaries
of the concession area currently approved pursuant to Resolution No. 2004-
25506;
• The RFP shall include minimum requirements to ensure the property is managed
by a qualified operator, including a requirement that proposers have at least five
(5) years experience managing or operating a beach establishment, beachfront
concession or similar concession;
The RFP shall allow proposers to submit up to two (2) proposal alternates that
are independent of each other, to provide proposers and the City with flexibility to
consider alternative concepts or approaches for the use of the entire Property
and related concession and parking areas currently allocated to the Property, as
well as the financial and other terms for either a lease agreement, a concession
agreement, or a combination thereof (similar to the lease/concession
arrangement currently in place);
The term of the Agreement awarded pursuant to the RFP shall commence after
the expiration of the existing Lease and Concession Agreement, for a period not-
to -exceed thirty (30) years;
• In view of the importance of the Property to the City, the RFP shall require all
proposers to participate in a mandatory pre -bid conference;
The RFP shall include, at a minimum, evaluation criteria and/or consideration of
the following factors: (i) the scope of services and concept for the use of the
Property, including the proposer's approach for the maximum utilization of the
Property and compatibility with the surrounding neighborhood; (ii) experience of
the proposer and the proposer's team members; (iii) qualifications, including
financial capability of the proposer; (iv) past performance of proposers, including
consideration of performance under City of Miami Beach contracts, if any; (v)
revenue proposal and financial terms; and (vi) additional public benefits;
The RFP shall specify that the final negotiated agreement with the successful
proposer for the use of the property after the expiration of the existing
agreements shall comply with all applicable requirements for final approval of
either a lease or concession agreement under the City Code, City Charter, and
Miami -Dade County Charter, as applicable;
The Administration shall issue the RFP not later than June 15, 2023, with a
deadline for submission of proposals not later than August 15, 2023, with the
Evaluation Committee to thereafter be convened with sufficient time for the City
Manager to review the deliberations of the Evaluation Committee and make a
recommendation for award of the RFP at the September 13, 2023 City
Commission meeting;
• On the recommendation of the Administration, the foregoing RFP schedule may
be extended by up to a total of 15 days, if additional time is required for
completion of the Facility Condition Assessment Report for the property or other
supplemental information; and
The RFP shall be subject to all procurement -related requirements of the City
Code, including, without limitation, the City's Cone of Silence.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby rescind Resolution No. 2023-32586, which authorized the Administration
to negotiate a proposed non -binding term sheet with City's existing beachfront concessionaire
with respect to the potential management or operation of the property located at 1 Ocean Drive
and adjacent concession area (the "Property"), to be effective after the expiration of the existing
Lease and Concession Agreement with Penrod Brothers, Inc.; and direct the Administration to
prepare and issue a Request for Proposals (RFP) for the management or operation of a high
end beach establishment and ancillary uses on the Property and adjacent concession area, in
accordance with the requirements set forth in this Resolution.
PASSED AND ADOPTED this 7,f--k day of 2023.
ATTEST:
/ ael E. Granado, �CityClerk
REGIS BARBOU
MAY 19 2023
ORATED*
Dan Gelber, Mayor
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
S-- i9 -Z3
City Attomey ?A-7—
D e
Resolutions - C7 O
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and. Members of the City Commission
FROM: Rafael A. Paz, City Attorney
DATE: May 17, 2023
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, RESCINDING RESOLUTION NO. 2023-
32586, WHICH AUTHORIZED THE ADMINISTRATION TO NEGOTIATE A
PROPOSED NON -BINDING TERM SHEET WITH CITYS EXISTING
BEACHFRONT CONCESSIONAIRE WITH RESPECT TO THE POTENTIAL
MANAGEMENT OR OPERATION OF THE PROPERTY LOCATED AT 1
OCEAN DRIVE AND ADJACENT CONCESSION AREA (THE "PROPERTY),
TO BE EFFECTIVE AFTER THE EXPIRATION OF THE EXISTING LEASE
AND CONCESSION AGREEMENT WITH PENROD BROTHERS, INC.; AND
DIRECTING THE ADMINISTRATION TO PREPARE AND ISSUE A
REQUEST FOR PROPOSALS (RFP) FOR THE MANAGEMENT OR
OPERATION OF A HIGH END BEACH ESTABLISHMENT AND ANCILLARY
USES ON THE PROPERTY AND ADJACENT CONCESSION AREA, IN
ACCORDANCE WITH THE REQUIREMENTS SET FORTH IN THIS
RESOLUTION.
ANALYSIS
Pursuant to the request of Commissioner David Richardson, the above -referenced Resolution
is submitted for consideration by the Mayor and City Commission at the May 17, 2023
Commission meeting.
SUPPORTING SURVEY DATA
N/A
FINANCIAL INFORMATION
N/A
Is this a "Residents Right
to Know" item. pumuant to
Cry Code Section 2-14?
Yes
lKT-17I.M47w1.!
Does this item utilize G.O.
Bond Funds?
IE
Page 354 of 945
Office of the City Attorney
Sponsor
Commissioner David Richardson
ATTACHMENTS:
Description
o Resolution
Page 355 of 945