Item Coversheet

Resolutions - C7  W




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Jimmy L. Morales, City Manager 
DATE:September  16, 2020
 



SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER, AND APPROVING, PURSUANT TO REQUEST FOR LETTERS OF INTEREST (RFLI) 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.

RECOMMENDATION

The Administration recommends that the Mayor and City Commission adopt the Resolution accepting the City Manager’s recommendation to approve the concession agreements described herein, pursuant to RFLI 2019-318-WG, for the management and operation of street markets at Lincoln Road. 

BACKGROUND/HISTORY

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.  Currently, successful markets on Lincoln Road have been under contract since 2014 and the concession agreements governing those markets, and any applicable renewal/extension periods, are scheduled to expire September 30, 2019.

 

Pursuant to RFLI 2019-318-WG, 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 productsThe 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.  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.  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 similar 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, Inc. (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 DBA 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.        The Market Company (*Administration’s recommended 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 BID submitted a recommendation letter supporting award to proposer.

 

     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 $10,000.

·         With proposer’s two markets in Lummus Park, operator demonstrated need for significant oversight and moderating from City staff.

 

    iii.        Just Brands

·         No revenue proposal or financial component provided in bid (indicated as required component of bid document).

·         Proposal dramatically modified the market’s 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).

·         No experience indicated with the production and/or management of markets

 

    iv.        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.

 

    iii.        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.

 

Production 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 events including Vintage South Florida in Hollywood, Westin Antique Market, Fort Lauderdale Antique Market, and Clematis Street Market in West Palm Beach.

 

In 1991 Production Sud established business in Miami Beach. Anthony Angione and Louis Bondi opened a shop called “Debris” at 630 Lincoln Road and quickly became involved in the Lincoln Road revitalization. Louis served as the President of the Lincoln Road Merchants Association for a time. He was a firm believer in strengthening the local identity and building a greater sense of community ownership. Both welcomed the establishment of the Lincoln Partnership and the promise of a future 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 Company, 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.

 

CONCLUSION

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.


Applicable Area

South Beach
Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? Does this item utilize G.O. Bond Funds?
No No 

Strategic Connection

Prosperity - Market and promote Miami Beach as a world class arts, culture, and quality entertainment destination.
Legislative Tracking
Property Management

ATTACHMENTS:
Description
Resolution