According to Gonzalez, even if voters approve a new lease that allows Penrod to continue operating Nikki Beach, he'll have to make some substantial adjustments. For one, the business will have to change from nightclub to restaurant, in compliance with the recently passed ordinance banning new outdoor nightclubs throughout South Pointe. "What does that do to the viability of Nikki Beach?" Gonzalez asks rhetorically. "That is something Penrod has to figure out."
In addition, Penrod should expect an increase in the city's cut of his revenues. "Penrod would like to give us three-and-a-half percent [from Nikki Beach]," Gonzalez says. "I would like fifteen. So we need to figure out a number in between -- maybe seven or eight percent." In the meantime Gonzalez has ordered Penrod to remove the fence, portions of the landscaping, and other objects until the issue is resolved. "He's agreed to do that," the manager says. (A recent inspection of Nikki Beach suggests that Penrod has yet to heed the order.)
Will Miami Beach voters tell Jack Penrod to pack up his teepees and shut down Nikki Beach Club?
So why didn't the city simply shut down the illegal business? "Under the letter of the law, one might argue that it should be closed down," Gonzalez admits. "But our approach was to tell him what he needs to do in order to stay open." And, of course, to continue pumping money into the city treasury.