On April 6, 2022, pursuant to the reasons articulated in the attached commission memorandum (Attachment A), the City Manager recommended the rejection of the sole bid received from Alchemy Miami Beach LLC (Alchemy) in response to the RFP. The City Commission deferred action on the City Manager's recommendation and directed the Administration to attempt to negotiate mutually acceptable financial terms with Alchemy.

As directed by the City Commission, representatives from Alchemy and the Administration held several discussions in an attempt to negotiate mutually acceptable financial terms for the services. On August 16, 2022, Alchemy submitted a revised final proposal with two options (the main difference between the two being the inclusion of digital boards in Option I). On November 16, 2022, after considering the revised proposal submitted by Alchemy, the City Manager resubmitted a recommendation to the City Commission to reject the sole bid received. (See Attachment B).

At the November 16, 2022, Commission meeting, in lieu of acting on the City Manager's recommendation, the City Commission referred the item to the Finance and Economic Resiliency Committee for further discussion.

This solicitation remains under the cone of silence.

The City Manager’s November 16, 2022, recommendation to the City Commission to reject the sole proposal received in response to the RFP is attached hereto as Attachment B for the Committee’s consideration.

On December 21, 2022, Alchemy submitted a revised advertising program and financial terms (See Attachment C). The December 21 submittal is the third proposal received from Alchemy and supersedes the proposal included in its original response to the RFP and the revised proposal it submitted on August 16. The table below highlights the various proposals received and compares these to the original contract that expired in February 2021.

¹While Option III states that no digital signage is included, the proposal does indicate digital signs at various locations. The discrepancy would need to be worked out with the bidder.

Despite the most recent proposal from Alchemy, the Administration continues to have the concerns as articulated in the attached April 6, 2022, and November 16, 2022, City Commission memorandums and below.

1.       Despite the City’s high visibility and importance in advertising markets, it is concerning that the City received a sole proposal for the project. It is important to understand why other viable bidders declined to submit competing proposals. It is in the City’s best interest to understand why this is the case, particularly since the Alchemy proposal does not appear to maximize the value of City assets.

2.       The latest proposal (Option III) contemplates significant square footage of various types of advertising mediums spread across the interior and exterior of garages and at various storefront locations, including very large floor-to-ceiling signage visible from the right of way. For the amount of space proposed to be blanketed with advertising across the City, Alchemy is now proposing $160,000 annually (not including any non-guaranteed net revenue share), which is higher than its previous two proposals but still significantly less than the original contract.

In comparing Alchemy’s proposal to the bus shelter agreement with OutFront Media and the proposal for digital kiosks from IKE Smart City, it continues to be the Administration’s opinion that moving forward with the Alchemy proposal is not a prudent use of City assets. Rejecting the proposal as recommended will allow the Administration to re-evaluate the scope of work and consider other elements or city-owned assets that can make the project more viable or attractive to the market in an effort to maximize the City’s revenue potential.

3.       Of particular concern is the significant amount of advertising proposed on the exterior of some garages and the floor-to-ceiling exterior facing vinyl storefront signage proposed, including 86 continuous feet of advertising along Meridian Ave north of 17 Street and 57 continuous feet of advertising at the corner of 17 Street and Pennsylvania Avenue.

Further, the 57 linear feet of floor-to-ceiling exterior facing vinyl signage at the ground floor of 17 Street and Pennsylvania Avenue incorporates an area that has been leased to Moonlighter, a non-profit organization focused on expanding access to science, technology, engineering, arts, and math programming. Even if the City was interested in allowing this type of large advertising at this location, an agreement from Moonlighter (or a future tenant) would be required.

4.       Portions of Alchemy's proposal may require code amendments. The Planning Department believes that some of the signage, particularly the exterior façade signage in some proposed areas, may require changes to the City's current Code Section 82-71.

The City Manager’s pending recommendation to reject the proposal received from Alchemy in response to the RFP, deferred from November 16, 2022, is attached as Attachment B.