City of Miami Beach Reaches Settlement Agreement with Penrod Brothers Inc.

Miami Beach, Florida – The City of Miami Beach Commission has approved a settlement agreement with Penrod Brothers Inc. and Boucher Brothers, LLC, ending more than three years of litigation concerning the future use of the property at Pier Park. The settlement allows the City to move forward without any out-of-pocket payment to Penrod Brothers, Inc. and clears the way to transition the property into a new, world-class public amenity intended to serve residents and visitors.

Under the terms of the settlement, Penrod’s lease and concession agreements for the property at 1st Street and Ocean Drive will be extended through August 6, 2027 and Penrod will receive a payment of $3,000,000. When the parties first reached agreement at a mediation on March 26, 2027, the City and Boucher Brothers were each to pay 50% of the $3,000,000 owed to Penrod. As a result of recent negotiations, however, Boucher Brothers has agreed to pay the City’s $1,500,000 share, subject to recoupment of that amount from future payments owed to the City under the Boucher Brothers Pier Park concession agreement and other considerations that remain under negotiation.

In addition, the deadline for Boucher Brothers’ commencement of operations (along with related deadlines) will be extended to account for delays caused by the litigation and unanticipated site conditions. In addition, Boucher Brothers will have the option to extend the term of its concession agreement for an additional five years.

“The approved resolution concludes prolonged litigation and avoids additional expense, delay and uncertainty associated with continued legal proceedings,” said Miami Beach City Manager Eric T. Carpenter. “With the matter resolved, the city can now focus on planning and transformation of a premier public space that enhances public access and recreational opportunities at Pier Park.”

Boucher Brothers Pier Park — who partnered with Major Food Group during the city’s solicitation to operate a world-class beach establishment at One Ocean Drive — was the top‑ranked proposer in 2023. The project is slated to infuse tens of millions of dollars of private capital in order to transform the existing property into a best-in-class beachfront destination, featuring high‑quality recreational, dining and retail amenities along with beachfront concessions. Proposed culinary offerings include a Mediterranean restaurant, Japanese teppanyaki rooms and a Sadelle’s Café.

The agreement with Boucher Brothers delivers a broad package of community benefits that strengthen public safety, expand resident access, support local schools and enhance quality of life in Miami Beach. Highlights include beach‑accessible wheelchairs and funding for two Police Officers and a Park Ranger. Residents will receive priority access and discounts through a new All‑Access App, along with continued support for programs such as the Mobile Food Pantry, senior services, dune maintenance and the Victory Garden. Boucher Brothers will also partner with Miami Beach Senior High School’s Culinary Arts Program, provide annual donations to every public school, host 12 resident‑focused events each year, and carry out extensive beach and environmental cleanups. The project anticipates breaking ground in late summer 2027 with a fall 2029 opening.

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