OF
HF LOGISTICS-SKX, LLC
Page | ||||
Article 1 DEFINED TERMS | 1 | |||
Article 2 ORGANIZATIONAL MATTERS | 9 | |||
Article 3 PURPOSE | 11 | |||
Article 4 CAPITAL CONTRIBUTIONS; MEMBER LOANS; CAPITAL ACCOUNTS | 11 | |||
Article 5 DISTRIBUTIONS AND ALLOCATIONS | 15 | |||
Article 6 LOANS | 15 | |||
Article 7 MANAGEMENT AND OPERATION OF BUSINESS | 19 | |||
Article 8 BUY-SELL PROVISIONS | 28 | |||
Article 9 BOOKS, RECORDS, ACCOUNTING AND REPORTS | 30 | |||
Article 10 TAX MATTERS | 31 | |||
Article 11 TRANSFERS AND WITHDRAWALS | 34 | |||
Article 12 ADMISSION OF MEMBERS | 36 | |||
Article 13 DISSOLUTION AND LIQUIDATION | 36 | |||
Article 14 AMENDMENT OF AGREEMENT | 39 | |||
Article 15 DISPUTE RESOLUTION | 40 | |||
Article 16 DEFAULTS / REMEDIES | 40 | |||
Article 17 GENERAL PROVISIONS | 41 | |||
Article 18 OVERRIDING PROVISIONS RE SUBSIDIARIES | 46 |
i
OF
HF LOGISTICS -SKX, LLC
DEFINED TERMS
2
3
4
5
6
7
8
ORGANIZATIONAL MATTERS
9
10
PURPOSE
CAPITAL CONTRIBUTIONS; MEMBER LOANS; CAPITAL ACCOUNTS
11
12
13
14
DISTRIBUTIONS AND ALLOCATIONS
LOANS
15
16
17
18
MANAGEMENT AND OPERATION OF BUSINESS
19
20
21
22
23
24
25
26
27
BUY-SELL PROVISIONS
28
29
BOOKS, RECORDS, ACCOUNTING AND REPORTS
30
TAX MATTERS
31
32
33
TRANSFERS AND WITHDRAWALS
34
35
ADMISSION OF MEMBERS
DISSOLUTION AND LIQUIDATION
36
37
38
AMENDMENT OF AGREEMENT
39
DISPUTE RESOLUTION
DEFAULTS / REMEDIES
40
GENERAL PROVISIONS
41
c/o Highland Fairview Properties
14225 Corporate Way
Moreno Valley, California 92553
Attention: Iddo Benzeevi
12100 Wilshire Boulevard, 15th Floor
Los Angeles, California 90025-7120
Attention: Bruce R. Greene, Esq.
3070 Bristol Street, Ste 320
Costa Mesa, California 92626
Executive Vice President
TG Services, Inc.
4 Stage Coach Run
East Brunswick, New Jersey 08816
228 Manhattan Beach Boulevard
Manhattan Beach, California 90266
Attention: David Weinberg, COO
2450 Colorado Avenue
Suite 400 East
Santa Monica, California 90404
Attention: Eric Rowen, Esq. and Sanford Presant, Esq.
Skechers U.S.A., Inc.
228 Manhattan Beach Boulevard
Manhattan Beach, California 90266
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43
44
45
OVERRIDING PROVISIONS RE SUBSIDIARIES
46
47
“HF” | “SKECHERS” | |||||||||||
HF LOGISTICS I, LLC, a Delaware limited liability company | SKECHERS R.B., LLC, a Delaware limited liability company | |||||||||||
By: | /s/ Iddo Benzeevi | By: | Skechers U.S.A., Inc., a Delaware corporation, | |||||||||
its sole member | ||||||||||||
By: | /s/ David Weinberg |
“SKECHERS PARENT” SKECHERS U.S.A., INC., a Delaware corporation | ||||
By: | /s/ David Weinberg | |||
David Weinberg, Chief Operating Officer | ||||
ALLOCATIONS OF PROFIT AND LOSS,
AND OTHER TAX MATTERS
DEFINITIONS
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2
3
4
5
CAPITAL ACCOUNTS
6
ALLOCATIONS OF PROFIT AND LOSS
7
8
9
10
11
OTHER TAX MATTERS
12
2
3
4
5
6
7
8
9
10
11
12
13
14
OF DEVELOPMENT MANAGER
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If to Owner: | Highland Fairview-SKX, LLC | |
c/o Highland Fairview Properties | ||
14225 Corporate Way | ||
Moreno Valley, California 92553 | ||
Attention: Iddo Benzeevi | ||
With a copy to: | Skechers RB, LLC | |
c/o Skechers USA, Inc. | ||
228 Manhattan Beach Boulevard | ||
Manhattan Beach, California 90266 | ||
Attention: David Weinberg | ||
Chief Operating Officer | ||
If to Development Manager: | HFC Holdings, LLC | |
c/o Highland Fairview Properties | ||
14225 Corporate Way | ||
Moreno Valley, California 92553 | ||
Attention: Iddo Benzeevi | ||
With Additional Copy to: | James Lieb, Esq. | |
Executive Vice President | ||
TG Services, Inc. | ||
4 Stage Coach Run | ||
East Brunswick, New Jersey 08816 | ||
- and - | ||
Danette Fenstermacher | ||
3070 Bristol Street, Ste 320 | ||
Costa Mesa, California 92626 |
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“OWNER” | “DEVELOPMENT MANAGER” | |||||||||||
HF LOGISTICS -SKX, LLC, a Delaware limited liability company | HFC HOLDINGS, LLC, a Delaware limited liability company | |||||||||||
By: | HF Logistics I, LLC, a Delaware limited liability company, it’s Managing Member | |||||||||||
By | ||||||||||||
By: | ||||||||||||
Executive Officer | ||||||||||||
By: | Skechers RB, LLC, a Delaware limited liability company, it’s Managing Member | |||||||||||
By: | Skechers USA, Inc., a Delaware Corporation, It’s sole member | |||||||||||
By: | ||||||||||||
Officer | ||||||||||||
By: | ||||||||||||
Officer |
“SKECHERS PARENT” | “SKECHERS MEMBER” | |||||||||
SKECHERS USA, INC., a Delaware corporation | SKECHERS RB, LLC, a Delaware limited liability company | |||||||||
By: | Skechers USA, Inc, a Delaware corporation, its sole member | |||||||||
By: | ||||||||||
David Weinberg, Chief Operating Officer | ||||||||||
By: | ||||||||||
David Weinberg, Chief Operating Officer | ||||||||||
By: | ||||||||||
Robert Greenberg, Chief Executive Officer | ||||||||||
By: | ||||||||||
Robert Greenberg, Chief Executive Officer |
26
Land | $ | 30,000,000 | ||||||
Construction Costs | [*] | |||||||
Fees, Bonds and Permits | ||||||||
Governmental Fees | [*] | |||||||
Construction Bonds | [*] | |||||||
Impact Fees | ||||||||
MSHCP | [*] | |||||||
Kangaroo Rat | [*] | |||||||
Area Drainage Fee | [*] | |||||||
DIF | [*] | |||||||
TUMF | [*] | |||||||
Schools | [*] | |||||||
EMWD | [*] | |||||||
Total Fees, Bonds and Permits | [*] | |||||||
Technical Consultants | ||||||||
Entitlements | [*] | |||||||
Engineering, Traffic and Other | [*] | |||||||
Building Architectural & Structural | [*] | |||||||
Landscaping | [*] | |||||||
Total Technical Consultants | [*] | |||||||
Other Costs | ||||||||
Leasing Commissions | [*] | |||||||
Skechers Alternative Site Rental Cost | [*] | |||||||
Development Management Fee [1] | [*] | |||||||
Project and Construction Management | [*] | |||||||
Insurance and Taxes | [*] | |||||||
Solar Facility | [*] | |||||||
Financing | [*] | |||||||
Contingency | [*] | |||||||
Total Other Costs | [*] | |||||||
Total Project Cost | $ | [*] | ||||||
Potential Reimbursements | ||||||||
Area Drainage Fee Credit | [*] | |||||||
DIF Credit | [*] | |||||||
Solar Grants and Incentives | [*] | |||||||
State Grants | [*] | |||||||
Total Potential Reimbursements | [*] | |||||||
Net Project Cost | $ | [*] | ||||||
* | Confidential Portions Omitted and Filed Separately with the Commission. |
![]() | Date: 1/29/2010 |
CSI | Tenant Improvements - Current Plans & Requests thru 2009 | Total | ||||||
General Conditions | ||||||||
00-7213 | General Conditions | $ | [*] | |||||
01-3100 | Project Management | $ | [*] | |||||
01-5126 | Temporary Lighting | $ | [*] | |||||
01-7423 | Final cleaning | $ | [*] | |||||
General Conditions — Subtotal: | $ | [*] | ||||||
Site | ||||||||
32-1313 | Concrete Curb & gutter — Retail | $ | [*] | |||||
32-1313 | Concrete Paving Drive Aisle — Retail | $ | [*] | |||||
32-1313 | Paved Parking Area — Retail | $ | [*] | |||||
32-1313 | 4” Side Walk — Retail | $ | [*] | |||||
32-1723 | Striping — Retail | $ | [*] | |||||
32-1723 | ADA Signage — Retail | $ | [*] | |||||
32-1313 | Guard Shack Foundation | $ | [*] | |||||
32-1313 | 7” PCC in lieu of AC Paving | $ | [*] | |||||
32-3213 | Concrete Screen wall — Retail | $ | [*] | |||||
32-3113 | 8” Tube Steel Fence | $ | [*] | |||||
Sliding Gates & Motor Control | $ | [*] | ||||||
Pedestrian Tube Steel gate | $ | [*] | ||||||
33-1116 | 1” Copper Water Service Guard Shack | $ | [*] | |||||
33-3113 | 6” Sanitary Sewer Service Guard Shack | $ | [*] | |||||
6” Sewer Clean-Out | $ | [*] | ||||||
33-7139 | Electrical Service Guard Shack | $ | [*] | |||||
Site Underground Electrical — North | $ | [*] | ||||||
Transformer Electrical Service — North | $ | [*] | ||||||
33-8113 | Low Voltage to Guard Shack | $ | [*] | |||||
Gate Conduit to Building | $ | [*] | ||||||
09-9113 | Paint | $ | [*] | |||||
26-3213 | Site Electrical Generator | $ | [*] | |||||
12-9213 | Bike Racks, Benches, Pots, Urns, Trash | $ | [*] | |||||
10-7516 | Flag Poles | $ | [*] | |||||
32-3119 | Structural Steel (Trash Gates & Lids) | $ | [*] | |||||
Additional Land Cost — Retail | $ | [*] | ||||||
Site — Subtotal: | $ | [*] |
* Confidential Portions Omitted and Filed Separately with the Commission.
1
![]() | Date: 1/29/2010 |
CSI | Tenant Improvements - Current Plans & Requests thru 2009 | Total | ||||||
Building | ||||||||
03-2100 | Reinforcement Steel | $ | [*] | |||||
03-3100 | Lightweight Concrete | $ | [*] | |||||
WEI Racking Foundations | $ | [*] | ||||||
05-1223 | Structural Steel | $ | [*] | |||||
05-3113 | Metal Decking | $ | [*] | |||||
05-7313 | Glazed Decorative Hand Railing | $ | [*] | |||||
06-1113 | Rough Carpentry | $ | [*] | |||||
06-2033 | Finish Carpentry (Millwork) | $ | [*] | |||||
Solid Surface Fabrication | $ | [*] | ||||||
06-8200 | Fiber Glass Reinforced Plastic (Marlite) | $ | [*] | |||||
07-1113 | Bituminous Dampproofing | $ | [*] | |||||
Water Proofing Showers | $ | [*] | ||||||
07-2116 | Insulation | $ | [*] | |||||
07-4213 | Metal Wall / Soffit Panels | $ | [*] | |||||
07-6200 | Sheet Metal Flashing & trim | $ | [*] | |||||
07-7236 | Skylights | $ | [*] | |||||
08-1213 | Doors / Frames / Hardware | $ | [*] | |||||
08-8000 | Glass & Glazing | $ | [*] | |||||
09-2116 | Gypsum Board Assemblies | $ | [*] | |||||
09-3100 | Thin-Set Tile | $ | [*] | |||||
09-5113 | Acoustical Panel Ceilings | $ | [*] | |||||
09-6223 | Bamboo Flooring & Base | $ | [*] | |||||
09-6536 | Static Control Resilient Flooring | $ | [*] | |||||
09-6816 | Carpeting | $ | [*] | |||||
09-6953 | Access Flooring Accessories (Mats) | $ | [*] | |||||
09-9100 | Paint & Wall Covering | $ | [*] | |||||
10-1400 | Plastic Signage Restrooms | $ | [*] | |||||
10-2813 | Metal Toilet Compartment & Accessories | $ | [*] | |||||
10-4416 | Fire Extinguishers & Cabinets | $ | [*] | |||||
10-5113 | Lockers & Benches | $ | [*] | |||||
12-2413 | Roller Shades | $ | [*] | |||||
14-2423 | Hydraulic Passenger Elevator | $ | [*] | |||||
21-1313 | Wet-Pipe Sprinkler Systems | $ | [*] | |||||
Fm-200 Suppression System | $ | [*] | ||||||
Pre-Action Interlock | $ | [*] | ||||||
22-4213 | Commercial Water Closet, Urinals, Fixtures | $ | [*] | |||||
23-0000 | Heating, Ventilating & Air Conditioning | $ | [*] | |||||
26-0100 | Electrical | $ | [*] | |||||
26-5113 | Lighting | $ | [*] | |||||
28-3100 | Fire Alarm | $ | [*] | |||||
Building — Subtotal: | $ | [*] | ||||||
General Conditions / Site / Building — Subtotal: | $ | [*] | ||||||
Liability Insurance ([*]%) | $ | [*] | ||||||
Subtotal: | $ | [*] | ||||||
Profit and Overhead ([*]%) | $ | [*] | ||||||
Total: | $ | [*] |
2
“OWNER” | “DEVELOPMENT MANAGER” | |||||||||
HF LOGISTICS -SKX, LLC, a Delaware limited liability company | HFC HOLDINGS, LLC, a Delaware limited liability company | |||||||||
By: | HF Logistics I, LLC, a Delaware limited liability company, it’s Managing Member | |||||||||
By | ||||||||||
Iddo Benzeevi, its Chief Executive Officer | ||||||||||
By: | ||||||||||
Iddo Benzeevi, President and Chief Executive Officer | ||||||||||
By: | Skechers R.B., LLC, a Delaware limited liability company, it’s Managing Member | |||||||||
By: | Skechers U.S.A., Inc., a Delaware Corporation, It’s sole member | |||||||||
By: | ||||||||||
David Weinberg, Chief Operating Officer |
“SKECHERS PARENT” | “SKECHERS MEMBER” | |||||||||
SKECHERS U.S.A., INC., a Delaware corporation | SKECHERS R.B., LLC, a Delaware limited liability company | |||||||||
By: | Skechers U.S.A., Inc., a Delaware corporation, | |||||||||
By: | its sole member | |||||||||
David Weinberg, Chief Operating Officer | ||||||||||
By: | ||||||||||
David Weinberg, Chief Operating Officer |
2
PROJECT SCHEDULE
![(GRAPHIC)](https://capedge.com/proxy/10-Q/0000950123-10-103100/v57380a57380i01.gif)
$14,000,000 | January 30, 2010 |
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“OWNER” | |||||||||||
HF LOGISTICS -SKX, LLC, a Delaware limited liability company | |||||||||||
By: | HF Logistics I, LLC, a Delaware limited liability company, It’s Managing Member | ||||||||||
By: | |||||||||||
By: | Skechers RB, LLC, a Delaware limited liability company, it’s Managing Member | ||||||||||
By: | Skechers USA, Inc., a Delaware Corporation, It’s sole member | ||||||||||
By: | |||||||||||
Officer | |||||||||||
By: | |||||||||||
Officer |
5
$1,000,000 | January 30, 2010 |
1
2
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4
liability company
By: | HF Logistics I, LLC, a Delaware limited | |||
liability company, it’s Managing Member | ||||
By: | ||||||
Iddo Benzeevi, President and Chief | ||||||
Executive Officer | ||||||
By: | Skechers RB, LLC, a Delaware limited liability | |||
company, it’s Managing Member | ||||
By: | Skechers USA, Inc., a Delaware | ||||||
Corporation, It’s sole member | |||||||
By: | ||||||||
David Weinberg, Chief Operating | ||||||||
Officer | ||||||||
By: | ||||||||
Robert Greenberg, Chief Executive | ||||||||
Officer |
5
Building and Expansion Sites
![]() | Date: 1/29/2010 |
Year | 2011 | 2012 | ||||||
Duration in Months | 6 | 12 | ||||||
Physical Occupancy | 50 | % | 100 | % | ||||
Rent Building | $ | 0.513 | $ | 0.513 | ||||
Sq Ft Building | 1,820,457 | |||||||
REVENUES (D-1) | 6,739,057 | 9,275,589 | ||||||
EXPENSES | ||||||||
Building (D-1) | [*] | [*] | ||||||
Parcel 2: | ||||||||
Maintenance (D-3) | [*] | [*] | ||||||
POA (D-4) | [*] | [*] | ||||||
Property Taxes (1) | (10,000 | ) | (20,000 | ) | ||||
TOTAL OPERATING EXPENSES | [*] | [*] | ||||||
NET OPERATING INCOME | [*] | [*] | ||||||
DEBT SERVICE (D-1) | (3,090,616 | ) | (6,181,233 | ) | ||||
CAPITAL RESERVES (D-1) | (45,511 | ) | (91,023 | ) | ||||
NET | $ | [*] | $ | [*] | ||||
(1) | Based upon actual for 2009/2010 |
* Confidential Portions Omitted and Filed Separately with the Commission.
Skechers Building Site Only
![]() | Date: 1/29/2010 |
Year | 2011 | 2012 | ||||||||||
Duration in Months | 6 | 12 | ||||||||||
Physical Occupancy | 50 | % | 100 | % | ||||||||
Rent Building Site | $ | 0.513 | $ | 0.513 | ||||||||
Sq Ft Building | 1,820,457 |
REVENUES | 2011 $/SF/MO | |||||||||||
Scheduled Base Rent | $ | 0.513 | $ | 5,603,367 | $ | 11,206,733 | ||||||
Base Rent Abatement | (4,202,525 | ) | ||||||||||
Total Scheduled Base Rent | 5,603,367 | 7,004,208 | ||||||||||
Expense Reimbursements | 0.098 | 1,071,416 | 2,142,832 | |||||||||
Solar Revenue (1) | 64,274 | 128,549 | ||||||||||
EFFECTIVE GROSS REVENUE | 0.425 | 6,739,057 | 9,275,589 | |||||||||
OPERATING EXPENSES | ||||||||||||
Repairs | [*] | [*] | [*] | |||||||||
Maintenance (D-2) | [*] | [*] | [*] | |||||||||
POA (D-4) | [*] | [*] | [*] | |||||||||
Insurance | [*] | [*] | [*] | |||||||||
Real Estate Taxes | (0.056 | ) | (609,811 | ) | (1,219,622 | ) | ||||||
CFD Assessment | (0.015 | ) | (163,841 | ) | (327,682 | ) | ||||||
TOTAL OPERATING EXPENSES | [*] | [*] | [*] | |||||||||
NET OPERATING INCOME | [*] | [*] | [*] | |||||||||
DEBT SERVICE ON LOANS (2) | (0.283 | ) | (3,090,616 | ) | (6,181,233 | ) | ||||||
CAPITAL RESERVES | (0.004 | ) | (45,511 | ) | (91,023 | ) | ||||||
NET CASH FLOW | [*] | $ | [*] | $ | [*] | |||||||
(1) | 602kW(AC) system running 1,810 hours per year at an 11.8-cent average charge per kilowatt-hour | |
(2) | Debt service on $55 million bank loan and $15 million of partner loans |
* Confidential Portions Omitted and Filed Separately with the Commission.
![]() | Date: 1/29/2010 |
Building Site - Maintenance | ||||||||||||||||
No. | Description | Unit | Quantity | Unit Price | Total | |||||||||||
1 | Detention / Water Quality Basins | SF | 200,375 | $ | [*] | $ | [*] | |||||||||
2 | Landscape - Slope | SF | 248,300 | $ | [*] | $ | [*] | |||||||||
3 | Landscape - Flat | SF | 104,500 | $ | [*] | $ | [*] | |||||||||
4 | Utilities - Common Sewer/Cleanouts | LS | 1 | $ | [*] | $ | [*] | |||||||||
5 | Sign Maintenance | LS | 1 | $ | [*] | $ | [*] | |||||||||
6 | Annual Water Cost | AF | 37.5 | $ | [*] | $ | [*] | |||||||||
7 | Palm Tree Maintenance | LS | 1 | $ | [*] | $ | [*] | |||||||||
8 | Screen Wall Maintenance - Eucalyptus S | LS | 1 | $ | [*] | $ | [*] | |||||||||
Subtotal: | $ | [*] | ||||||||||||||
Contingency ([*]%): | $ | [*] | ||||||||||||||
Total: | $ | [*] | ||||||||||||||
Building SF: | 1,820,000 | |||||||||||||||
Cost/SF: | $ | [*] | ||||||||||||||
Yearly Inspection, Flushing, Camera of Sewer/Cleanouts | ||
Graffiti Repair, Bulbs/Fixtures | ||
Based upon Recycled Water Use Exhibit and EMWD water rates | ||
Assume 54 palm trees trim 2 times per year at $[*]/tree/trimming | ||
Graffiti Repair, Periodic Painting |
* Confidential Portions Omitted and Filed Separately with the Commission.
![]() | Date: 1/29/2010 |
Expansion Site - Maintenance | ||||||||||||||||
No. | Description | Unit | Quantity | Unit Price | Total | |||||||||||
1 | Detention / Water Quality B | SF | 89,275 | $ | [*] | $ | [*] | |||||||||
2 | Landscape - Slope | SF | 46,500 | $ | [*] | $ | [*] | |||||||||
3 | Landscape - Flat | SF | 834,750 | $ | [*] | $ | [*] | |||||||||
4 | Landscape - Parkway | SF | $ | [*] | $ | [*] | ||||||||||
5 | Annual Water Cost | AF | $ | [*] | $ | [*] | ||||||||||
Subtotal: | $ | [*] | ||||||||||||||
Contingency ([*]%): | $ | [*] | ||||||||||||||
Total: | $ | [*] | ||||||||||||||
Assumes undeveloped condition. Unit Price assumes mowing/weed wacking 2 times per year No irrigation in undeveloped condition |
* Confidential Portions Omitted and Filed Separately with the Commission.
![]() | Date: 1/29/2010 |
Property Owners Association (POA) - Maintenance | ||||||||||||||||||||
No. | Description | Unit | Quantity | Unit Price | Total | |||||||||||||||
1 | Landscape - Parkway | SF | 87,000 | $ | [*] | $ | [*] | |||||||||||||
2 | Drainage - Spreading Facility | SF | 400,750 | $ | [*] | $ | [*] | |||||||||||||
3 | Common Driveway - Maintenance | LS | 1 | $ | [*] | $ | [*] | |||||||||||||
4 | Insurance | annual | $ | [*] | $ | [*] | ||||||||||||||
Subtotal: | $ | [*] | ||||||||||||||||||
Contingency ([*]%): | $ | [*] | ||||||||||||||||||
Total: | $ | [*] | ||||||||||||||||||
Acres | ||||||||||||||||||||
Allocated to Building Site | [*] | 82.6 | ||||||||||||||||||
Allocated to Expansion Site | [*] | 27.4 | ||||||||||||||||||
[*] | 110 | |||||||||||||||||||
Other Parcels | [*] | 20 | ||||||||||||||||||
Total | [*] | 130 |
Hydroseed Slopes, Trash, Graffiti, Growth Control | ||
Yearly Re-Stripe, Monthly Sweeping, Red Curb Paint | ||
General Liability, Personal Property & Professional Liability Insurance |
* Confidential Portions Omitted and Filed Separately with the Commission.
![]() | ||
Commercial Real Estate Banking FL7-528-15-08 1 Alhambra Plaza Penthouse Coral Gables, FL 33134 |
a Delaware limited liability company
4000 Island Boulevard, Penthouse 2
Williams Island, FL 33160
Re: | $55,000,000 Construction Loan (the “Loan”) to finance a portion of the cost to construct an approximately 1,820,000 square foot industrial warehouse (the “Building”) located Moreno Valley, California to be leased to Skechers USA, Inc. (“Skechers”) |
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Very truly yours, BANK OF AMERICA, N.A. | ||||
By: | /s/ Kim Abreu | |||
Kim Abreu, Senior Vice President | ||||
6
BANC OF AMERICA SECURITIES LLC | ||||
By: | ||||
Name: | ||||
Title: | ||||
BORROWER: HF LOGISTICS — SKX, LLC., a Delaware limited liability company | ||||
By: | HF Logistics I, LLC, managing member | |||
By: | /s/ Donald Elbert | |||
Donald Elbert, Senior Vice President | ||||
GUARANTOR: TG DEVELOPMENT Corp., a Delaware Corporation | ||||
By: | /s/ Donald Elbert | |||
Donald Elbert, Senior Vice President | ||||
7
LEGAL DESCRIPTION OF PROPERTY
DISPUTE RESOLUTION
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Sierra Club Environmental Law Program: | 85 Second Street | |
San Francisco, CA 94105 | ||
Aaron.Isherwood@sierraclub.org |
7
Sierra Club, San Gorgonio Chapter: | Chapter Chair/Conservation Chair | |
4079 Mission Inn Avenue | ||
Riverside, CA 92501-3204 | ||
san.gorgonio.chapter@sierraclub.org | ||
Sierra Club, Moreno Valley Group: | Ann Turner-McKibben and George | |
Hague | ||
P.O. Box 1325 | ||
Moreno Valley, CA 92556-1325 | ||
morenovalleygroup@yahoo.com | ||
with a copy to Raymond W. Johnson, Esq.: | Johnson & Sedlack | |
26785 Camino Seco | ||
Temecula, CA 92590 | ||
esqaicp@wildblue.net | ||
The City attention of the City Manager, | ||
w/ copy attention of the City Attorney: | 14177 Frederick Street | |
P.O. Box 88005 | ||
Moreno Valley, CA 92552 | ||
CMOffice@moval.org | ||
CityAttorney@moval.org | ||
Highland Fairview: | 14225 Corporate Way | |
Moreno Valley, CA 92553 | ||
ibenzeevi@highlandfairview.com | ||
with a copy to Kenneth B. Bley, Esq.: | Cox, Castle & Nicholson LLP | |
2049 Century Park East, 28th Floor, | ||
Los Angeles CA 90067 | ||
kbley@coxcastle.com |
8
9
January 7, 2010 | SIERRA CLUB | |||
By: | [ILLEGIBLE] | |||
Its: CHAPTER CHAIR, SAN GORGONIO CHAPTER | ||||
January 11, 2010 | THE CITY OF MORENO VALLEY | |||
By: | [ILLEGIBLE] | |||
Its: MAYOR | ||||
January 7, 2010 | HIGHLAND FAIRVIEW PARTNERS I By: HFP Realty Investment, LP, its Managing Partner By: HFP Realty Holdings, LLC, its General Partner | |||
By: | /s/ Iddo Benzeevi | |||
Its: President | ||||
January 7, 2010 | HIGHLAND FAIRVIEW PARTNERS II By: New Sands Holdings, LP, its Managing Partner By: Sand Holdings, LLC, its General Partner | |||
By: | /s/ Iddo Benzeevi | |||
Its: President | ||||
January 7, 2010 | HIGHLAND FAIRVIEW PARTNERS III By: HFP Realty Investment, LP, its Managing Partner By: HFP Realty Holdings, LLC, its General Partner | |||
By: | /s/ Iddo Benzeevi | |||
Its: President | ||||
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January 7, 2010 | HIGHLAND FAIRVIEW PARTNERS IV By: Sinclair Holdings, LP, its Managing Partner By: Sinclair Realty Holdings, LLC, its General Partner | |||
By: | Iddo Benzeevi | |||
Its: President | ||||
January 7, 2010 | HF LOGISTICS I, LLC | |||
By: | Iddo Benzeevi | |||
Its: President | ||||
APPROVED AS TO FORM: January 11, 2010 | JOHNSON & SEDLACK | |||
By: | /s/ Raymond W. Johnson | |||
Raymond W. Johnson | ||||
Attorneys for the SIERRA CLUB | ||||
January 11, 2010 | CITY ATTORNEY OF THE CITY OF MORENO VALLEY | |||
By: | [ILLEGIBLE] | |||
Its: INTERIM CITY ATTORNEY | ||||
January 7, 2010 | COX CASTLE & NICHOLSON LLP | |||
By: | /s/ Kenneth B. Bley | |||
Kenneth B. Bley | ||||
Attorneys for HIGHLAND FAIRVIEW PARTNERS I; HIGHLAND FAIRVIEW PARTNERS, II, HIGHLAND FAIRVIEW PARTNERS, III, HIGHLAND FAIRVIEW PARTNERS, IV and HF LOGISTICS I, LLC |
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![(GRAPHIC)](https://capedge.com/proxy/10-Q/0000950123-10-103100/v57380v5596102.gif)
LEED Projected Certification Items
(Based upon LEED current standards)
• | Alternative Transportation: |
Bicycle Storage & Changing Rooms The project will provide secure bicycle racks within 200 yards of the building entrances for 5% or more of all building users and will provide shower and changing facilities in the building for 0.5% of full-time equivalent occupants. Low Emission and Fuel Efficient Vehicles The project will provide preferred parking for low-emission and fuel efficient vehicles for 5% of the total vehicle parking capacity of the site. Parking Capacity The project will meet, but not exceed the number of parking stalls required by the local zoning requirements and will provide preferred parking for carpools and vanpools for 5% of the total parking spaces. |
Site Development: |
Maximum Open Space As approved by the City of Moreno Valley, the project will provide vegetated open space within the project boundary in accordance with the local zoning’s open space requirement. |
• | Storm Water Design: |
Quality Control Highland Fairview will implement the City approved Storm Water Pollution Prevention Program (SWPPP). |
• | Heat Island Effect: |
Roof The project will use roofing materials having a Solar Reflectance Index (SRI) equal to or greater than 78 for a minimum of 75% of the roof surface. |
• | Water Efficient Landscaping: |
The project will reduce potable water consumption for irrigation by 50% from a calculated mid-summer baseline case. |
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LEED Projected Certification Items
(Based upon LEED current standards)
• | Water Use Reduction: |
Reduce Water Usage by 30% | |||
The project will employ strategies that in aggregate use 30% less water than the water use baseline calculated for the building (not including irrigation). |
• | Optimize Energy Performance: |
The project will demonstrate a percentage improvement in the proposed building performance rating compared to the baseline building performance rating. |
• | On-Site Renewable Energy: |
The project will use on-site renewable energy systems (solar) to offset a portion of building energy cost. |
• | Enhanced Commissioning: |
The project began the commissioning process during the design process and will execute additional activities after systems performance verification is completed. |
• | Construction Waste Management: |
The project will recycle and/or salvage a minimum of 50% (by weight) of non-hazardous construction and demolition debris. |
• | Recycled Content: |
The project will use materials with recycled content such that the sum of post-consumer recycled content plus one-half of the pre-consumer content constitutes at least 10% (cost-based) on the total value of the materials in the project. |
• | Regional Materials: |
The project will use building materials or products that have been extracted, harvested or recovered, as well as manufactured, within 500 miles of the project site for a minimum of 10% (cost-based) of the total materials value. |
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LEED Projected Certification Items
(Based upon LEED current standards)
• | Increased Ventilation: |
The project will increase breathing zone outdoor air ventilation rates to all occupied spaces by at least 30% above the minimum rates required by ASHRAE Std. 62.1-2004. |
• | Construction IAQ Management Plan: |
The project will develop and implement an Indoor Air Quality (IAQ) Management Plan for the construction and pre-occupancy phases of the building. |
• | Low Emitting Materials: |
The project will utilize only those paints and coatings that comply with Credit 4.2, 4.3 and 4.4 of the LEED standards. |
• | Indoor Chemical & Pollutant Source Control: |
The project will provide entryway systems to reduce the infiltration of dirt and particulates into the indoor environment. Separate ventilation systems will be provided for storage areas for hazardous chemicals in order to minimize and control pollutants in the building. |
• | Daylight and Views: |
The project, will achieve day-lighting via skylights for building occupants in 75% of all regularly occupied areas. |
• | Innovation In Design: |
The project will utilize locally-sourced concrete and interior fixtures providing a 40% water use savings. |
• | LEED Accredited Professional: |
At least one principal participant of the project team is a LEED Accredited Professional (AP). |
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LEED Projected Certification Items
(Based upon LEED current standards)
• | Use of More Shade Trees vs. Palm Trees to Reduce Temperature |
As shown in the City-approved Plot Plan package, palm trees used on the site will be located at the building’s primary entry as part of the decorative entry treatment, and along the freeway, near gates and building corners as accent elements. All other trees on the site, in the parking areas, adjacent to the building, in the landscape areas, and along the freeway will be varieties of shade trees. |
• | Waterless Urinals |
Use of these products was investigated but ultimately rejected based upon marginal performance and excessive maintenance costs. Very low flow urinals will be used in the facility which will provide a 30% reduction in water use over typical low-flow urinals. |
• | Automatic turn on and off for lavatory faucets—only allow 1/2 gal per minute |
These products will be installed throughout the building. |
• | Monitoring system that keeps track of all systems so that response can be quick if one of the systems does not function properly |
The Skechers building will include a building systems monitoring program which will immediately notify maintenance personnel of any system malfunction. |
• | Photo Sensors for Lighting |
Motion sensors will be installed in the office areas of the building to turn off all lighting (except security lighting) when theses areas of the building are not occupied. A network of thousands of roof-mounted skylights will provide substantial natural light in the warehouse areas. Sensors will be installed in the warehouse areas to automatically turn off artificial area lighting when ambient light is adequate. |
• | Reduce carpet and flooring glue toxics by environmentally friendly carpet and non toxic glue. |
Low VOC carpeting, paint and adhesives will be used throughout the building. Polished concrete flooring will replace vinyl flooring originally |
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LEED Projected Certification Items
(Based upon LEED current standards)
planned for the warehouse restrooms, break rooms and shipping/receiving areas. |
• | Recycle of All Used Materials |
Recycling bins will be provided at the site for recycling during the operation of the building. Recycling of construction waste will be required to the greatest degree practicable. Skechers currently bundles and recycles all cardboard waste and will provide recycling bins for employee use throughout the facility. Skechers is exploring opportunities for recycling (mulching) of damaged wood pallets. |
• | 75% of Construction Waste Salvaged or Recycled |
The project will salvage or recycle as much construction waste as is feasible, but in no case less that 50% by weight of such waste. The project will utilize recycled (crushed) concrete during construction for temporary access roads and for paving base where acceptable. The project is directing green waste from clearing operations during construction, to a location for mulching and will be re-used. |
• | Independent Venting for Toxic Places |
The storage of toxic materials, as identified by the State of California, will be in accordance with all applicable building code requirements including the independent venting of such storage areas. |
• | Thermal Controls in Various Work Spaces |
The warehouse area is not heated or cooled, utilizing a controlled air exchange system to moderate interior temperatures. The office and commercial areas will be served by a number of HVAC zones each with its own controls. The units are equipped with an automatic time switch with an accessible manual override that allows operation of the system during off-hours. |
• | The building occupant/owner must share whole-project energy and water usage data for at least five years with the US Green Building Council or Green Building Certification Institute. |
Highland Fairview will provide all documentation used to secure LEED certification, including any tenant operational documentation. Such documentation requirements will be addressed in the lease documents. |
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“The Building, together with the parking areas, landscaped areas and other areas consisting of approximately 82.59 acres of land situated at the NWC of Theodore Street and Eucalyptus Avenue in Moreno Valley (Rancho Belago), California, as shown on the draft of Parcel Map No. 35629 attached to this Second Amendment as “Exhibit “A” (Revised)”.” |
“LANDLORD” | “TENANT” | |||||
HF LOGISTICS I, LLC, a Delaware | SKECHERS U.S.A., INC., a Delaware | |||||
limited liability company | corporation | |||||
By | By | |||||
Chief Executive Officer |
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HF LOGISTICS-SKX T2, LLC, a Delaware | ||||||||
limited liability company | ||||||||
By: HF LOGISTICS SKX, LLC, a Delaware | ||||||||
limited liability company, its sole | ||||||||
member | ||||||||
By: | HF LOGISTICS I, LLC, a | |||||||
Delaware limited liability | ||||||||
company, its managing member | ||||||||
By | ||||||||
Iddo Benzeevi, President and | ||||||||
Chief Executive Officer | ||||||||
By: | SKECHERS R.B., LLC, a | |||||||
Delaware limited liability | ||||||||
company, its managing member | ||||||||
By: SKECHERS U.S.A., Inc., a | ||||||||
Delaware limited liability | ||||||||
company, its sole member | ||||||||
By | ||||||||
David Weinberg, Chief | ||||||||
Operating Officer |
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(REVISED)
SITE PLAN
![(FLOOR MAP)](https://capedge.com/proxy/10-Q/0000950123-10-103100/v57380v5738076.gif)
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“SKECHERS” | “LLC” | |||||||||||||
SKECHERS R.B., LLC, a Delaware limited liability company | HF LOGISTICS-SKX T1, LLC, a Delaware limited liability company | |||||||||||||
By: | Skechers U.S.A., Inc, a Delaware | By: | HF LOGISTICS -SKX, LLC, a Delaware | |||||||||||
corporation, its sole member | limited liability company, its sole member | |||||||||||||
By: | HF Logistics I, LLC, a Delaware limited | |||||||||||||
By: | liability company, its Managing Member | |||||||||||||
David Weinberg, Chief Operating Officer | ||||||||||||||
By: | ||||||||||||||
Iddo Benzeevi, President and Chief | ||||||||||||||
Executive Officer | ||||||||||||||
By: | Skechers R.B., LLC, a Delaware limited | |||||||||||||
liability company, its Managing Member | ||||||||||||||
By: | Skechers U.S.A., Inc., a Delaware | |||||||||||||
Corporation, its sole member | ||||||||||||||
By: | ||||||||||||||
David Weinberg, Chief Operating Officer |
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“HF LOGISTICS” HF LOGISTICS-SKX, LLC, a Delaware limited liability company, its sole member | ||||
By: | HF Logistics I, LLC, a Delaware limited liability company, its Managing Member | |||
By: | ||||
Iddo Benzeevi, President and Chief | ||||
Executive Officer | ||||
By: | Skechers R.B., LLC, a Delaware limited liability company, its Managing Member | |||
By: | Skechers U.S.A., Inc., a Delaware Corporation, its sole member | |||
By: | ||||
David Weinberg, Chief Operating Officer | ||||
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“ESCROW AGENT” BANK OF AMERICA, N.A. | ||||
By: | ||||
Its: | ||||
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(MASTER LEASE)
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“ASSIGNOR” | “T1” | |||||||||||||
HF LOGISTICS I, LLC, a Delaware | HF LOGISTICS-SKX T1, LLC, a | |||||||||||||
limited liability company | Delaware limited liability company | |||||||||||||
By | By: | HF LOGISTICS-SKX, LLC, a | ||||||||||||
Iddo Benzeevi, President and | Delaware limited liability company, | |||||||||||||
Chief Executive Officer | its sole member | |||||||||||||
By: | HF Logistics I, LLC, a | |||||||||||||
Delaware limited liability | ||||||||||||||
company, its managing | ||||||||||||||
member | ||||||||||||||
By: | ||||||||||||||
and Chief Executive | ||||||||||||||
Officer | ||||||||||||||
By: | SKECHERS R.B., LLC, a | |||||||||||||
Delaware limited liability | ||||||||||||||
company, its managing | ||||||||||||||
member | ||||||||||||||
By: | Skechers U.S.A., Inc., a | |||||||||||||
Delaware corporation, its | ||||||||||||||
sole member | ||||||||||||||
By: | ||||||||||||||
David Weinberg, Chief | ||||||||||||||
Operating Officer |
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“T2” | ||||||||||||||
HF LOGISTICS-SKX T2, LLC, a | ||||||||||||||
Delaware limited liability company | ||||||||||||||
By: | HF LOGISTICS-SKX, LLC, a | |||||||||||||
Delaware limited liability company, | ||||||||||||||
its sole member | ||||||||||||||
By: | HF Logistics I, LLC, a | |||||||||||||
Delaware limited liability | ||||||||||||||
company, its managing | ||||||||||||||
member | ||||||||||||||
�� | By: | |||||||||||||
and Chief Executive | ||||||||||||||
Officer | ||||||||||||||
By: | SKECHERS R.B., LLC, a | |||||||||||||
Delaware limited liability | ||||||||||||||
company, its managing | ||||||||||||||
member | ||||||||||||||
By: | Skechers U.S.A., Inc., a | |||||||||||||
Delaware corporation, its | ||||||||||||||
sole member | ||||||||||||||
By: | ||||||||||||||
David Weinberg, Chief | ||||||||||||||
Operating Officer |
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(SKECHERS LEASE)
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“ASSIGNOR” | “ASSIGNEE” | |||
HF LOGISTICS I, LLC, a Delaware limited liability company | HF LOGISTICS-SKX T1, LLC, a Delaware limited liability company | |||
By: | By: | HF LOGISTICS-SKX, LLC, a Delaware limited liability company, its sole member |
By: | HF Logistics I, LLC, a Delaware | |||
limited liability company, its | ||||
managing member |
By: | ||||
Iddo Benzeevi, President and | ||||
Chief Executive Officer |
By: | SKECHERS R.B., LLC, a | |||
Delaware limited liability | ||||
company, its managing member |
By: | Skechers U.S.A., Inc, a | |||
Delaware corporation, its | ||||
sole member |
By: | | |||
Operating Officer |
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