On September 15, 2010, the Mayor and City Commission adopted Resolution No. 2010-27485, authorizing the Administration to enter into negotiations with Blissberry, LLC (“Blissberry”), as the top-ranked proposer pursuant to Request for Proposals (RFP) No. 34-09/10, for the management and operation of a food and beverage concession located in a portion of the South Pointe Park Pavilion Building; and further authorizing the Mayor and City Clerk to execute an agreement, upon conclusion of successful negotiations.

The resulting Concession Agreement, dated November 24, 2010, contained the following basic terms and conditions:

Concession Area:  A portion of the South Pointe Park Pavilion Building, consisting of approximately 240 square feet

Initial Term:  Two (2) years commencing on December 1, 2010 and ending on November 30, 2012

Renewal Options:  Three (3) renewal options for one (1) year each, at the City Manager’s sole discretion.                       

Concession Fee:  Fifteen percent (15%) of gross sales

Minimum Guarantee:  Nine thousand dollars ($9,000) annually, paid at the beginning of each contract year, with annual Consumer Price Index (CPI) increases, starting in the third year.

Blissberry’s gross sales, and the corresponding fees paid to the City, are illustrated in the chart below:

Prior to the expiration of the Concession Agreement, Blissberry submitted a letter to the City requesting to extend the Concession Agreement for a period of five (5) years.  Subsequently, Blissberry requested that the concession fee be reduced from fifteen percent (15%) of gross sales to ten percent (10%) of gross sales.

On May 6, 2015, the Mayor and City Commission adopted Resolution No. 2015-29008, accepting the recommendation of the Finance and Citywide Projects Committee, and waiving, by 5/7ths vote, the competitive bidding requirement, finding such waiver to be in the best interest of the City; and approving the Mayor and City Clerk to execute a new Concession Agreement with Blissberry, containing the following basic terms and conditions:

Concession Area:  A portion of the South Pointe Park Pavilion Building, consisting of approximately 240 square feet

Initial Term:  Five (5) years commencing on December 1, 2015 and ending on November 30, 2020

Renewal Options:  None      

Concession Fee:  Ten percent (10%) of gross sales

Minimum Guarantee:  Twenty-five thousand dollars ($25,000) annually, payable in equal quarterly installments of six thousand two hundred and fifty dollars ($6,250), on the first day of each quarter, with annual Consumer Price Index (CPI) increases.

Assignment from Blissberry, LLC to South Pointe Café LLC

The Concession Agreement between the City and Blissberry, LLC, dated July 1, 2015, was assigned to South Pointe Café LLC (“Concessionaire”) on September 1, 2016.  The assignment required the reasonable consent of the City Manager, which was also provided on September 1, 2016.

Concessionaire’s gross sales, and the corresponding fees paid to the City, are illustrated in the chart below:

As reflected above, since taking over the concession operation three (3) years ago, Concessionaire has consistently increased gross sales over the previous six (6) years of gross sales achieved by the previous operator.  The highest annual gross sales achieved by the previous operator was $243,226 while the highest annual gross sales achieved by the current operator was $415,216.  This represents a 71% increase.  However, due to the decrease in the concession fees paid to the City under the current contract (Percentage of Gross Sales decreased from 15% to 10%), the concession fees received by the City in conjunction with said gross sales only increased by 14% ($36,484 to $41,522).  Similarly, over the term of the two contracts, the average concession fees received by the City have only increased 20% ($2,254 to $2,699 monthly).

Current comparable food and beverage concession agreements in the City include the Boucher Brothers Beachfront Concession Agreement at 21^st & 46^th Streets which, over the last three years, has resulted in a Percentage of Gross Sales paid to the City of approximately twenty-two percent (22%) of food and beverage sales.  This includes food and beverage sales both on the beach and from the upland concession buildings.  Additionally, the Boucher Brothers Beachfront Concession Agreement at Lummus Park contains a Percentage of Gross Sales paid to the City of fifteen percent (15%) for food and beverage sales.

As contained in the attached letter dated September 14, 2020 (attached hereto as Exhibit A), Concessionaire has requested a new Concession Agreement for a period of five (5) years, commencing on December 1, 2020 and ending on November 30, 2025.  Per Concessionaire’s letter, since taking over the operation in 2016, Concessionaire has expanded the products offered and has invested over $10,000 in equipment (i.e. refrigerators, espresso machine, convection oven, blenders, juicers, etc.).  Additionally, Concessionaire has hired approximately thirty current and former Miami Beach High School students.  Concessionaire also included a letter of support from the President of the Friends of South Pointe Elementary Children & Education Foundation.