Miami-Dade Commissioners Set to Vote on No-Bid Deal to Fast-Track $332 Million Renovation at MIA

Miami-Dade’s top economic engine, Miami International Airport (MIA), could soon undergo a fast-tracked makeover through a no-bid deal with its current concessionaires. County Commissioners are set to vote on a resolution by Danielle Cohen Higgins and Kevin Marino Cabrera to authorize the deal, which would require two-thirds approval.

The agreement would extend the contracts of existing restaurants and retailers at MIA for 12 years, with an option for one three-year renewal. In exchange, the concessionaires would agree to annual rent increases and invest $332 million into renovating their spaces. Those opting for the three-year renewal would be required to commit an additional $65 million towards further investment, contributing to an estimated $1.1 billion in revenue for the county.

The deal also includes a customer experience fee of 0.5% of gross revenues, which would fund improvements to areas adjacent to the concession spaces, a 0.5% marketing fee for advertising and a secret shopper program, and a 0.25% infrastructure maintenance fee for restaurants that use grease traps.

One of the key features of the agreement is the rebalancing of the food and beverage to retail ratio. Currently at 46% food and beverage and 54% retail, the new ratio will be adjusted to 65% food and beverage and 35% retail, aligning with industry standards.

This deal comes at a time when the county is facing financial challenges, including the end of pandemic-era funding and a $9 billion investment in MIA’s expansion and renovation efforts. Mayor Daniella Levine Cava has called for spending cuts, while the county works to improve the airport’s aging infrastructure, including long-out-of-service escalators and the Skytrain.

Despite some resistance from a few concessionaires, Cohen Higgins emphasized that most are supportive of the deal, noting that a piecemeal approach would delay needed improvements. She stressed that the goal is to incentivize a comprehensive renovation.

Cabrera, who is expected to leave the County Commission for a position as U.S. Ambassador to Panama, defended the no-bid approach, citing the success of the current concessionaires. He argued that a competitive bidding process would delay improvements by a decade due to protests and bureaucratic hurdles.

The deal includes new safeguards not found in previous contracts, such as provisions allowing for tenant eviction if they violate the terms of the agreement.

Alongside this resolution, Commissioners will consider another proposal to solicit bids for 10 vacant concession spaces in MIA’s North Terminal, where American Airlines operates, as well as spaces in the Central Terminal and the upcoming Terminal K.

In response to concerns raised by Commissioner Keon Hardemon about the lack of opportunities for Black-owned businesses, Cohen Higgins pointed out that the resolution also includes a competitive bidding process for new spaces. Hardemon expressed concerns that the no-bid deal may exclude minority businesses from opportunities, as it has been nearly 20 years since a full airport-wide bidding round was held.

Commissioner Oliver Gilbert, who previously chaired the County Commission, expressed empathy for Hardemon’s concerns but noted that perspectives on whether things are “broken” can vary based on individual experiences.

MIA currently has nearly 280,000 square feet of concession space across its terminals, and the airport’s website states that concession tenants are selected through a competitive process.