Proof Highland Fairview Couldn’t Finance Their Corporate Park Project

San Bernardino: Broke, Yes, but One Sector’s Booming Published: Wednesday, 1 Aug 2012 | 4:28 PM ET By: Jane Wells CNBC Reporter:

There are challenges. The permitting process for ultra-big box developments requires patience, despite the jobs and taxes they bring. However, it’s unlikely many companies would choose to locate these facilities outside of California to Nevada or Arizona.

Longo says half the goods which come into the Los Angeles and Long Beach ports stay in California to be sold or finished. Trucking them too far east for distribution, means trucking a large portion back again.

Financing has sometimes been a challenge, and it’s one reason Skechers became a co-owner of its building, not just a tenant. “When construction loans became such a very difficult thing to obtain, we had to partner in order for that to happen,” said Skechers’ Paul Galliher.

The new center consolidates six separate buildings Skechers used to lease 30 miles west. The new plant may be further from the port, but Galliher said, “There’s more economic value to putting everything in one room.” More than 500 people work there.

But that isn’t what is claimed by Wynright, a company which specializes in material handling. Wynright was hired by Skechers for their layout and design of the new Distribution Center in Moreno Valley, and what do they state the benefit of the move into this new 1.8 million square foot box of cement was for Skechers?

Outcome:

SKECHERS, USA was able to achieve their goal of eliminating multiple buildings. This alone reduced transportation costs, reduced inventory issues by putting it all under one roof, consolidated their management structure, and reduced order cycle time. The new facility gives them ample space to meet their current needs with room to grow on site.

SKECHERS, USA can now process approximately 17,000 pairs of shoes per hour — more than double the number handled in its old buildings, and the system is capable of handling expected growth of 25%. The number of times a product is touched between receiving and shipping has been reduced by at least 50%.

Previously, 1,200 associates were required during peak periods; the new facility requires about 300 employees for average volumes and an estimated 500 during peak periods.

The new facility — as of 2011, the largest LEED-certified building in North America — has helped SKECHERS meet two strategic goals: it consolidates all North American distribution under one roof, and it sets the stage for continued growth.

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4 thoughts on “Proof Highland Fairview Couldn’t Finance Their Corporate Park Project

  1. So if there is never going to be a World Logistics Center because Iddo Benzeevi can’t ever afford to build it, then why does Deanna Reeder’s gang have another meeting scheduled in April to protest the project? Why do these people not get that Iddo Benzeevi is simply a scam artist and that his development will never be a threat to them? They need to put their thinking caps on.

  2. It also goes to show Skechers USA had an architect design an automated building to consolidate the five warehouses into one 1.8 million square foot facility and then started looking for a piece of land to put it on. Iddo Benzeevi happened to be sitting around eastern Moreno Valley with about 1,600 acres he owns to which he has never developed and is desperate to sell and make worth the initial investment from 1986 and so he gave them the acreage cheap and pretended he had a hand in developing it, as he still does today.

    So delusional he also plans now to try his seventh stated logistics project, the Morongo Inland Port and Intermodal Center, in 30 years after trying to develop San Bernardino International Airport (which fell through “over concerns about financing” according to the LA Times), March Logistics Center, Moreno International Trade Center, Suelo Business Park, Highland Fairview Corporate Park, the World Logistics Center. The first five were never constructed and the sixth one he never developed. Is history going to repeat itself? I think so.

    Let’s add promises of large scaling housing developments such as Moreno Highlands twice, Aquabella, and a recently desired medical corridor which has no plans or paperwork for it to be prepared. 10 major overstated projects that have now gone nowhere. Why does any city trust Highland Fairview or Iddo Benzeevi to develop anything? He has no experience developing squat.

    • Great post MVGORDIE and CODY. I dont know why the city has allowed him to continue with these delusional plans. I really think those who push this project have some sort of land deal with him and have money invested, Its a ponzi scheme

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