C2A PresentationRFP 2023-479-KB
for the
Management & Operation
of a
High-End Beach
Establishment at
1 Ocean Drive
Resolution 2023-32612
…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…
•Allow bidders to submit up to two proposal alternates.
•30-year maximum term of agreement.
•Minimum prior similar experience of at least five years.
Proposal Options
Option 1
a term of less than ten (10) years
Option 2
a term equal to or greater than
ten (10) years but not more than
thirty (30) years
Proposals Received
Option 1
•Boucher Brothers Management, Inc.
•Tao Group Hospitality/One Ocean
Hospitality
•The Group US Management
Option 2
•Boucher Brothers Management, Inc.
•RH
•Tao Group Hospitality/One Ocean
Hospitality
•The Group US Management
Minimum Eligibility
At least five (5) years of experience with a beach establishment, beach concession or a similar operation.
All proposers met the minimum eligibility requirements
Evaluation Criteria
Five points were available for the veteran’s preference. However, none of the proposals were eligible.
Option 1 Proposals
Ranking Option 1
1st Place* –Boucher Brothers
2nd Place* –The Group US Management
3rd Place* –Tao Hospitality
*The rankings are unanimous across all evaluation committee members.
Option 2 Proposals
Ranking Option 2
1st Place (tied) –Boucher Brothers
1st Place (tied) –The Group US Management
3rd Place* –Tao Hospitality
4th Place* –RH
*The rankings are unanimous across all evaluation committee members.
Financial Considerations between Options 1 & 2
Option 1:
•Boucher Brothers is proposing 10%of gross revenue to the City as rent with a $41 million minimum annual guarantee for
Option 1.
Option 2:
•Boucher Brothers is proposing 10 percent (%)of gross revenue to the City as rent with a $190 million minimum guarantee
for Option 2.
•The Group US Management is proposing $115 million total rent for Option 2.
Considering Net Present Value*for Boucher Option 1 (10 year)and The Group Option 2 (30 year):
•Boucher Brother’s Option 1 is $30 million in minimum guaranteed.
•The Group US Management’s Option 2 is $45 million in minimum guaranteed.
Given the difference in NPV between Boucher’s Option 1 and The Group’s Option 2, is it in the City’s best interest to tie
the property for 30 years?
*Assuming a 5% discount rate.
Recommendation for Award
After careful review of …
•Resolution 2023-32612
•the proposals received
•the results of the evaluation committee process
•the financial analysis of the 10-year option versus the 30-year option, and
•the long-term interests of the City with regard to the property
…it is recommended that the Mayor and City Commission select Option 1 and authorize the Administration to negotiate with Boucher Brothers, the unanimous top-ranked bidder for Option 1.
RFP 2023-479-KB
for the
Management &
Operation
of a
High-End Beach
Establishment at
1 Ocean Drive