Nikki Beach owners take City of Miami Beach to court amidst landmark property injunction
MIAMI BEACH - The owners of Nikki Beach filed for an emergency injunction to prevent the City of Miami Beach from taking any action regarding the landmark property.
The owners of Nikki Beach previously filed a lawsuit against the city and Boucher Brothers Miami Beach, LLC that accused the defendants of pursuing an "unfair, backdoor deal."
Jack and Lucia Penrod opened Penrods in the space in 1985.
The couple won a bid to lease and agreed on a concessions deal with the City of Miami Beach.
The Penrods invested more than $4 million in the property, according to their lawsuit.
The lease, which has been renewed at least twice, expires in three years.
Citing newspaper quotes and public meetings, the lawsuit filed Friday claimed Miami Beach city commissioners did not invite fair negotiations with the Penrods and others.
Instead, the city planned to give control over the property to Boucher Brothers, a firm that controls beach rentals on the island, according to the lawsuit.
"The current city process is going to the Boucher Brothers who have been vendors for 30 some years who we believe we will be able to prove send money to all of the commissioners with their pet projects," Phillip Hudson, lead attorney for Penrod Brothers, LLC.
"We believe particularly with the three commissioners that we name specifically that will not be running in November or can't run because they're termed out that this is in essence payback for all of that support over the years."
Boucher Brothers did not return calls and messages seeking comment.
City of Miami Beach Attorney Rafael Paz responded.
"(The Penrods) appear to forget this is city-owned property here and they have no right under their agreements to any further renewals," Paz said in an emailed statement.
"Obviously this complain has no merit."
Miami Beach Mayor Dan Gelber released a response too.
"I have no idea of anyone treating Nikki Beach unfairly," Gelber said in an emailed statement.
"The owners have enjoyed a below market rent for decades. Ironically, the first time I met them was recently when they asked for a private meeting to request a no-bid extension of their lease."
In their injunction filed Monday, Hudson and his team asked a judge to rule in their favor without a hearing before Wednesday's commission meeting.