HomeMy WebLinkAbout508-2005 RDA Reso
RESOLUTION NO.
508-2005
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF
THE MIAMI BEACH REDEVELOPMENT AGENCY
AUTHORIZING THE CHAIRMAN AND SECRETARY TO
EXECUTE A RETAIL LEASE AGREEMENT WITH TRAINING
CAMP OF SOUTH BEACH 06, INC., D/B/A TRAINING
CAMP, FOR SUITES 1, 2, 3 AND 41N THE ANCHOR
SHOPS, LOCATED AT 100 16TH STREET, MIAMI BEACH,
FLORIDA, SUBJECT TO AND CONDITIONED UPON
CONTINUED COMPLIANCE AND SATISFACTION OF THE
TERMS AND CONOOIONS SET FORTH IN THE LETTER
AGREEMENT BETWEEN THE MIAMI BEACH
REDEVELOPMENT AGENCY AND ADOLFO DOMINGUEZ
USA, INC., DATED DECEMBER 8,2004.
WHEREAS, on September 13, 2000, Adolfo Dominguez USA, Inc., (Tenant)
executed a ten (10) year Retail Lease Agreement with the Miami Beach Redevelopment
Agency (RDA and/or Landlord) for 2,884 square feet of space, located in the Anchor Shops
of South Beach, located at 100 16th Street Suites 1-4, Miami Beach, Florida (the Lease
Agreement); and
WHEREAS, on December 8, 2004, the RDA Board approved a Letter Agreement
between the RDA and the Tenant, allowing for early termination of its Retail Lease, subject
to its ability to negotiate a new lease for its space or remit one (1) year's rent plus any
brokerage fees associated with a new lease or sublease; and
WHEREAS, in accordance with the terms of the Letter Agreement, the Tenant
continues to remit rent payments until such time that one year's rent is paid (by December
1, 2005), or a new tenant is procured for the space and begins paying rent within the
remaining term of the Letter Agreement; and
WHEREAS, on June 13, 2005, the Tenant's broker informed staff that it had
located a potential new tenant, Training Camp of South Beach 06, Inc., d/b/a Training
Camp (Training Camp), a New York-based specialty chain retailer, selling high-end
sportwear, accessories and footwear; and
WHEREAS, subsequent to a review of Training Camp's references and financial
statements, the RDA staff has proceeded to negotiate a new lease agreement (Proposed
Lease) for the Premises; and
WHEREAS, the Proposed Lease shall be for an initial term of five (10) years, with
two (2) five (5) year renewal options, starting at a minimum annual rent of $77,868.00, or a
rate of $27/sq.ft., to be adjusted yearly by the greater of three percent (3%) or by CPI
multiplier; and
WHEREAS, Training Camp shall also be required to execute an unconditional
completion warranty for the proposed improvements to the Premises and provide a
Personal Guaranty for the Proposed Lease Term; and
WHEREAS, a two-month security deposit and one-month prepaid rent are also
requirements of the Proposed Lease; and
WHEREAS, Training Camp has requested that the Rent Commencement date
begin two months (60 days) after the Proposed Lease commencement date, to allow for
the design, permitting and build-out of the proposed interior improvements; and
WHEREAS, execution of the Proposed Lease with Training Camp is also subject to
and conditioned upon the continued compliance and satisfaction of the terms in the Letter
Agreement between the RDA and Tenant, dated December 8, 2004; and
WHEREAS, the Letter Agreement requires the Tenant to pay for all leasing
commissions associated with the Proposed Lease and pay the minimum rent due for the
two (2) month rent abatement period being requested by Training Camp to complete its
improvements.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRMAN AND
MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that the Chairman
and the Members of the Miami Beach Redevelopment Agency hereby authorize the
Chairman and the Secretary to execute a Lease Agreement with Training Camp of South
Beach 06, Inc., d/b/a Training Camp, for Suites #1,2,3 and 4, in the Anchor Shops,
located at 100 16th Street, Miami Beach, Florida, subject to and conditioned upon
continued compliance and satisfaction of the terms and conditions set forth in the Letter
Agreement between the RDA and Adolfo Dominguez, USA, Inc., dated December 8,
2004, and Adolfo Dominguez, USA, Inc's compliance and satisfaction of the terms and
conditions set forth in said Letter Agreement.
PASSED and ADOPTED this 6th day of July, 2005
RObert Parcher
jMG\CMC\KOB
T:'~G EN DAX2005\Jul06\RDA\Training_Camp_Res.doc
RMAN
David Dermer
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
Red~v-e~dp~fl~t Kgenc~ I Date
General Coun
CITY OF MIAMI BEACH
MIAMI BEACH REDEVELOPMENT AGENCY ITEM SUMMARY
Condensed Title:
A Resolution authorizing the Chairman and the Secretary to execute a Lease Agreement with Training Camp of South Beach 06,
Inc., d/b/a Training Camp for suites #1,2,3 and 4, comprising approximately 2,884 square feet in the Anchor Shops at South
Beach, subject to and conditioned upon continued compliance and satisfaction of the Letter Agreement between the RDA and
Adolfo Domin~luez, USA, Inc., dated December 8, 2004,
Issue:
IShall the RDA authorize execution of the Lease Agreement ?
Item Summary/Recommendation:
On December 8, 2004, the RDA Board approved a Letter Agreement between the RDA and Anchor Shops Tenant Adolfo
Dominguez USA, Inc., allowing for early termination of its retail lease subject to certain terms and conditions.
On June 13, 2005, Virtual Realty USA, Inc., the Broker representing Adolfo Dominguez, presented a new lease proposal for its
space in the Anchor Shops from Training Camp of South Beach 06, Inc., d/b/a Training Camp, a New York-based specialty chain
retailer, selling high-end sportwear, accessories and footwear. Subsequent to a review of Training Camp's references and
financial statements, the Administration has proceeded to negotiate a new Lease Agreement for the Premises. The proposed
Lease shall be for an initial term of ten (10) years, with two (2) five (5) year renewal options, starting at a minimum annual rent of
$78,868.00 or a rate of $27/sq.ft., to be adjusted yearly by the greater of 3 percent (3%) or by CPI multiplier.
As in the case of certain other leases at the Anchor Shops, the proposed subject Lease was delivered by outside brokers.
Pursuant to the aforementioned Letter Agreement, Adolfo Dominguez shall pay these fees directly to the respective firms, upon
execution of the new Lease Agreement with Training Camp.
The Administration recommends approval of the new Retail Lease Agreement with Training Camp, subject to and conditioned upon
continued compliance and execution of the aforementioned Letter Agreement between the RDA and Adolfo Dominguez, dated
December 8, 2004.
Advisory Board Recommendation:
Financial Information:
;3;
Finance Dept. TOtal
City Clerk's Office Legislative Tracking:
Tim Hemstreet/Kent O. Bonde
n-Offs:
gCamp_sum.doc
AGENDA ITEM
DATE
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miamibeachfl.gov
MIAMI BEACH REDEVELOPMENT AGENCY MEMORANDUM
To:
Chairman and Members of the Board of the
Miami Beach Redevelopment Agency
Date: July 6, 2005
From: Jorge M. Gonzalez
Executive Director
Subject:
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY AUTHORIZING THE CHAIRMAN
AND SECRETARY TO EXECUTE A RETAIL LEASE AGREEMENT WITH
TRAINING CAMP OF SOUTH BEACH 06, INC., D/B/A TRAINING CAMP,
FOR SUITES 1,2, 3 AND 4 IN THE ANCHOR SHOPS, LOCATED AT 100
16TM STREET, MIAMI BEACH, FLORIDA, SUBJECT TO AND
CONDITIONED UPON CONTINUED COMPLIANCE AND SATISFACTION
OF THE TERMS AND CONDTIONS SET FORTH IN THE LETTER
AGREEMENT BETWEEN THE MIAMI BEACH REDEVELOPMENT
AGENCY AND ADOLFO DOMINGUEZ USA, INC., DATED DECEMBER 8,
2004.
ADMINISTRATION RECOMMENDATION:
Adopt the resolution.
BACKGROUND:
On December 8, 2004, the RDA Board approved a Letter Agreement between the RDA
and Anchor Shops Tenant Adolfo Dominguez USA, Inc., allowing for early termination of its
retail lease, subject to its ability to negotiate a new lease for its space with Cuts Fitness for
Men, LLC. which the RDA Board also approved at the same meeting. However, due to
certain internal issues with Cuts Fitness, the Lease Agreement was never executed,
leaving Adolfo Dominguez with the continuing responsibility for its space. The Letter
Agreement provided that if the lease agreement fell through, Adolfo Dominguez would pay
one (1) year's rent plus any brokerage fees associated with a new lease or sublease. In
accordance with these terms, Adolfo Dominguez continues to remit its rent payments until
such time that one year's rent is paid (by December 1, 2005), or a new tenant is procured
for the space and begins paying rent within the remaining term of the Letter Agreement.
On June 13, 2005, Virtual Realty USA, Inc., the Broker representing Adolfo Dominguez,
presented a new lease proposal for its space from Training Camp of South Beach 06, Inc.,
d/b/a Training Camp, a New York-based specialty chain retailer, selling high-end
sportwear, accessories and footwear. Additional informational material concerning the
Company is attached to this Memorandum.
July 6, 2005
Redevelopment Agency Memorandum
Anchor Shops - Proposed Lease Agreement with A&R Footwear 98, Inc., d/b/a Training Camp
Page 2 of 2
ANALYSIS
Subsequent to a review of Training Camp's references and financial statements, the
Administration has proceeded to negotiate a new Lease Agreement for the Premises. The
proposed Lease shall be for an initial term of ten (10) years, with two (2) five (5) year
renewal options, starting at a minimum annual rent of $77,868.00, or a rate of $27/sq.ft., to
be adjusted yearly by the greater of 3 percent (3%) or by CPI multiplier. All costs
associated with the tenant improvements to the premises and other connections and
services are the responsibility of the Tenant. The Tenant will also be required to execute
an unconditional completion warranty for the retail space improvements and provide a
personal guaranty covering the Lease. The Rent Commencement date starts two months
(60 days) after the lease commencement date, to allow for the design, permitting and build-
out of the interior improvements. A two-month security deposit and one-month prepaid
rent are requirements of the proposed Lease. It should be noted that based on the Letter
Agreement, Adolfo Dominguez will cover the rent payments during the two-month rent
abatement period provided for under the new Lease.
As in the case of certain other leases at the Anchor Shops, the proposed subject Lease
was delivered by outside brokers. Pursuant to the aforementioned Letter Agreement,
Adolfo Dominguez shall pay these fees directly to the respective firms, upon execution of
the new Lease Agreement with Training Camp.
The Administration recommends that the Chairman and the Members of the Miami Beach
Redevelopment Agency authorize the Chairman and the Secretary to execute a Lease
Agreement with Training Camp for suites #1, 2, 3 and 4, in the Anchor Shops, pursuant
and subject to continued compliance and satisfaction of the Letter Agreement between the
RDA and Adolfo Dominguez, USA, Inc., dated December 8, 2004.
JMG/TH/K~
T:XAGENDA~2005XJuly6\RDA\Training_Camp_Mem. doc
Attachments
LANDLORD:
TENANT:
Miami Beach Redevelopment Agency, a public body
corporate and politic
1700 Convention Center Drive
Miami Beach, Florida 33139
Training Camp of South Beach 06, Inc., d/b/a Training Camp
25 West 45th Street
New York, NY 10036
DATE OF EXECUTION:
,2005
ANCHOR SHOPS AT SOUTH BEACH
RETAIL LEASE
D-R-A-F-T
Lease Agreement - Cuts Fitness for Men, LLC
(i)
D-R-A-F-T
LEASE SUMMARY
The following is a summary of basic lease provisions with respect to the Lease. It is an integral part of the
Lease, and terms defined or dollar amounts specified in this Summary shall have the meanings or amounts as
stated, unless expanded upon in the text of the Lease and its Exhibits, which are attached to and made a part of
this Summary.
1. Date of Lease Execution:
,2005.
2. "Landlord":
Miami Beach Redevelopment Agency
Landlord's Address:
Miami Beach Redevelopment Agency
1700 Convention Center Drive
Miami Beach, Florida 33139
Attention: Kent O. Bonde, Redevelopment Coordinator
with a copy to:
City of Miami Beach
Miami Beach Redevelopment Agency
1700 Convention Center Drive
Miami Beach, Florida 33139
Attention: Legal Department
4. "Tenant":
Training Camp of South Beach 06, Inc.,
d/b/a Training Camp
5. Tenant's Address:
25 West 45th Street
New York, NY 10036
6. "Guarantor":
Training Camp of South Beach 06 Inc.,
d/b/a Training Camp
o
Guarantor's Address:
25 West 45th Street
New York, NY 10036
Premises (section 1.1 ):
100 16th Street - Suite #1,2,3 and 4
Miami Beach, FL 33139
As shown on Exhibit "B"
10.
Gross Rentable Area of
Premises (section 1.1):
Gross Rentable Area of
Retail Space (section 1.1 ):
Approximately 2,884 square feet.
Approximately 20,500 rentable square feet
Lease Agreement - Cuts Fitness for Men, LLC
(~i)
11. Tenant's Proportionate
12.
Share (section 2.4):
Permitted Use of
Premises (section 3.1):
13. Term of Lease (section 1.1):
N/A
Retail apparel and footwear (and subject to the
prohibited uses described in Exhibit "D" to the Lease).
Ten (10) years.
"Commencement Date": The date that Landlord delivers
possession of the Premises to Tenant or August 1,2005,
whichever occurs earlier.
"Rent Commencement Date": The earlier of (i) the date
Tenant opens for business or (ii) the Completion Date for
Tenant's Work (I.e. sixty (60) days after the
Commencement Date).
"ExpirationDate": Ten (10) years after the "Rent
Commencement" Date.
"Renewal Options": Two (2) options of five years each,
after the Expiration Date of respective Lease Term.
Tenant must notify Landlord in writing, one hundred and
eighty (180) days prior to Expiration Date of its intention
of exercising the Renewal Option.
14. "Minimum Rent" (section 2.2):
MONTHS
ANNUAL MINIMUM RENT
MONTHLY PAYMENT
(PLUS SALES TAX)
Commencement Date
Rent Commencement Date -
next succeeding twelve months *
$ 0.00 $0.00
$77,868.00 $6,489
* Beginning with the thirteenth (13th) month after the Rent Commencement Date, and thereafter at the
beginning of each succeeding year during the Term of the Lease, the Minimum Rent shall be adjusted by by the
greater of three percent (3%) or multiplying the Minimum Rent then being paid by a fraction, the numerator of
which shall be the Consumer Price Index - U.S. City average for urban wage earners and clerical workers all items
(1982-84 equals 100) ("CPI") for the third month-preceding the month of adjustment, and the denominator of which
shall be the CPI for the fifteenth month preceding the month of adjustment. Anything herein to the contrary
notwithstanding, in no event shall Minimum Rent in any year be less than the Minimum Rent paid for the
immediately prior year. Should the CPI become unavailable, a reasonable substitute prepared by the U.S.
Department of Labor or other source, as designated by Landlord, shall be used. Minimum Rent shall continue to
be payable in monthly installments as otherwise described above until Landlord notifies Tenant of the new monthly
Minimum Rent installment amount. Landlord shall attempt to so notify Tenant prior to the commencement of each
adjustment date. However, failure of Landlord to timely notify Tenant of the new monthly Minimum Rent
installment amount shall not be deemed a waiver by Landlord of the increased rental; the new monthly amount (or
any portion to previously paid) shall be payable, retroactive to the commencement of the new adjustment date,
upon notification by Landlord to Tenant of the new monthly Minimum Rent installment amount. Notwithstanding
Lease Agreement - Cuts Fitness for Men, LLC
the foregoing, the annual Minimum Rent shall not be increased by more than three percent (3%) from the
Minimum Rent payable for the immediately prior year.
15. Percenta,qe Rental (section 2.3):
16. Prepaid Rent (section 2.2):
17. Security Deposit (section 2.7):
18. Cost Pass-Throu,qhs (section2.4):
N/A
$6,943.23 (includes sales tax) (due upon execution of
Lease; to be applied to first full month Minimum Rent is
due).
$12,978 (excludes sales tax) (due upon execution of
Lease).
N/A
19. Comprehensive General
Liability Insurance (section 6.1 ):
$2,000,000.00
20. Monthly Promotional Charge
(section 13.1 ):
21. Broker(s) (section 14.12):
22. Completion Date for Tenant's Work
23.
(section 5.1 ):
Trade Name (section 3.1):
N/A
Cushman & Wakefield of Florida, Inc.
Sixty (60) days after the Commencement Date.
Training Camp
Lease Agreerr~nt - Cuts Fitness for Men, LLC
(iv)
Z
0
Sunday, April 4, 200,
Want Something Basic
Do Not See This Guy
The shoe
provider of
choice for
street kids
and hip-hop
stars.
SNEAKER KING Udi Avshalom caters to the genre's cognoscenti.
By CARL SWANSON
UDI AVSHALOM has always known
how to sell sneakers. He can look at
you and see immediately~ that the all-
black Nike Dunk High Premiums are iust
the shoes to set you apart from all the other
guys in Nike Air Monarch li cross-trainers.
The black-on-black High Premiums aren't
flashy. If you aren't attuned ~o the subtle
gradations of sneaker styles, they might
even look a bit like Reebok aerobics shoes
from the 1980's. But wear them, Mr. Avsha-
lom promises, and you will turn heads
among the cognoscenti of high-tops.
It is a skill Mr. Avshalom, 33, has been
honing since he was the sneaker buyer for
his father's discount store on Lower Broa,b
way as a teenager. When he opened his own
store, Training Camp, in 1997, it bec une the
most influential -- if downscale and disof
ganized-k)oking -- addetic shoe outlet in the
city, eventually growing to six branches in
Manhattan, B~'ooklyn and Stwen lsland~
'Frainmg Camp is the favorite of New York's
sneaker fiends, those customers with 20 or
30 pairs in their' close[s, who clean them
with :1 toothb~-us;h, who apprmse new ac~
quaintances from the footwear up.
"He does wh~t he does the best," said the
tapper R ~ekwon of rhe Wu-Tang Clan, who
got to know Tr..unmg Camp from ils Staten
Island outpost. ~He keeps his ear to the
street, and he km;ws sneakers."
Mike Bogm'd, a 4ty!ist for Sean Combs,
said: "When ~t'-~ ~mae to do our shopping, we
can }us~ go to Ldi md just knock it out ~'ight
~here. He ha:; excluswes. He's usually the
fir,;[ one to ~4et h m~d sometimes ~:he only one
Best of New York- Sneakers 6/7/05 8:03 PM
YEARS BACK
TO THE LOOK OF YOUR, SKiN+
BEST OF NEW YORK
Select a Guide ClASSt~i~S I ~i),~q~ I ~:~,~A!~
BEST OF NEW YORK
Main
[]
] Beauty & Fitness
] Fun & Kids
] Ni~lhflife
] Services
Shom)irm
] A-Z List
] By Neighborhood
2OO0
Shopping
Best Sneakers
~ Training Camp
25 West 4Sth Street
212-840-7842
1079 Sixth Avenue
212921-0203
Ghosfface Killah, proud owner of more than 100 pairs of Wallabees, is the shoe-obsessed Wu-
Tang Clan's most fanatic devotee, and when he needs new sneakers (a frequent occurrence),
Ghostface goes to Training Camp: "1 just call Udi, and he'll lace me up with the hot new joints, or
Uptowns, or whatever I'm feeling like." Udi Avshalom, the store's Israeli-bom owner, has been
selling shoes since he was 12. "Footwear is my addiction," he claims. "The only thing I like more
than footwear is, um, my wife -- no, that's a fie -- but my kids, my two girls which God just gave
me, them I definitely like more." He stocks a wide range of brands and styles for reasonable
pdces, follows his own instincts, and in the process has gained a large following in the hip-hop
world, attracting customers like Puff Daddy, Jay-Z, and Cappadonna, among othem All the major
brands are available, as well as old-school Air Jordans and Bo Jacksons, and harder-to-find lines
like Avirex, Phat Farm, and Royal Elastics, for prices between $30 and $100.
More ShoppinR Winners >>>
Click here to get IN:NYC
Ads _by Gog_o_?oogle~
http://www.newyorkmetrocom/urban/guides/bestofny/shopping/OO/sneakers.htm Page I of 2
Best in Shoe
6/7/05 8:05 PM
How-To Guides > CareerJoumal Center ~ Bookstore > Interoet Solutions Center
> Topics
Best in Shoe
Knowing what's hip has helped this shoe expert build a footwear empire.
Entrepreneur maOaZJne - September 2003
By Al~ril Y. Penningten
Vital Stats: Udi Avshalom, 32, president and
CEO of Trainin; Camp in New York City
Company: Retail stores carrying urban shoes and apparel
Projected 2003 Sales: About $15 million
Paternal Instinct: "My father was in the variety goods
business. Our job was to watch the merchandise outside
[his store] or sell in another location. His motto was 'Don't
come home 'til you're sold out.' And that's how it started."
Shoe Fetish: In
1983, the day his
father got in a pair
of purple
KangaROOS to
sell, Avshalom fell
in love. "Being the
kid who always
had rejects, and
"The customer is the
boss. I'm just the
schmuck who makes
sure the bills get paid."
,- ad~,ertizerr, ent
looking at all the
shoes other kids had, [the shoes] gave me a lot to study. I 'rig ,,.oblle-
started looking for more footwear resources." He launched ~
Article Tools
E-mail this ~ Print this_ ~ Bookmark this
his first shoe store in 1996 and now has six locations in
the Tri-State area.
Floored: Avshalom's reputation as an urban gear and
shoe expert has hip-hop celebrities stopping by for new
gear and companies seeking consultation on the hottest
trends. He plans to build his brand and open more stores
outside New York City. But he still manages to spend two
full days a week working the sales floor, trying to outsell
every employee.
You Suckl In Avshalom's weekly "Udi Sucks" contest, one
random employee is asked to list five criticisms about the
business. "My father said, 'Someone who's good for you is
someone who's going to criticize you.' When a
[salesperson] tells me something I'm doing wrong, we
make changes quickly."
Strength, Control, and Flexible Rewards
See what it can do for your business.
MasterCard® Small Business
Reso u rces
· Small Biz Finance Guide · Web Design & Hosting
· Procurement Opps. · Newsletter Request
Reprint & E-Print information
T Mobile
New~attem Special Offers
Starting a Business Biz Opportunities
Growing a Business Technology
Tech/Ebiz Home Business
Franchise News Entrepreneurs
Sales & Marketing Sales
Entrepreneur.com Privacy Ptedge
Find franchises and business opportuni~es at Entrepreneuffs Opportunity Finder
Quick Browse:
~ Lowdnvestment [~ Food & Restaurants
El Executive investment ~'-1 Homebased
I73 International CJ Part-Time
Ci Retail F3 Specialty Products
E'~ Business Services ~ Computer & Tech
EMP'LOYI~R C~TI~t
hnp://wWw.entreprencur.com/article/O.4621,310240,OO.html Page I of 2
an evolutionary retail concept by
Market Place
The Miami/South Beach marketplace is void of a high-end retail outlet featuring
cutting edge footwear, fashion labels and accessories that target the increasingly
affluent and product savvy 25 - 44 year old consumer. Currently there are no premier
destinations that speak directly to the ever-growing, design-minded community who
continue to make South Beach one of the premier destinations in the US. New York
retail staples such as Union, Atrium and Nom De Guerre, as well as west coast leaders
American Rag and Fred Segal, represent a growing pool of independent retailers that
cater specifically to highly educated fashion consumers with increasing disposable
income. As the host city for the country's top events, as well as becoming the vacation
playground for the new America, Miami consistently draws a diverse crowd of young
professionals with over 4 million visitors a year. And while Miami is a transient port,
there exists a continual ebb and flow of trends and influences that have left the
marketplace ripe for new product. The Miami lifestyle breeds an atmosphere ideal for
shopping. The weather and proximity to restaurants, hotels and beaches all provide an
intimate backdrop for the year-round calendar of events and booming nightlife. Along
with which coexists a healthy consumer base unconsciously and unknowingly vulner-
able to impulse and seasonal purchases during their stay. And while the beach features
its own designer district on Collins, Washington, and Ocean Avenues as well as Lincoln
Drive the demand for great product increases exponentially. As such there must be a
corresponding increase in the supply for such product. This highly specialized demo-
graphic deserves a retail outlet that will quell its never-ending quest for the newest and
latest fashion, footwear, technology, art and culture.
Concept
Travel. It's the way we move. It's how we see the world and how the world sees us. It's how
cultures connect. It's how we grow and how we learn. It's the missing piece in the ubiqui-
tous "lifestyle"concept. It shapes fashion. It is fashion. Because its not what we wear but
why we choose to wear it. It's about how we pack, where we stay, what we do when we
It's about new experiences, what we learn and what we bring back to teach our
friends. '. : is the first shop dedicated to the new, young globetrotter emphasizing the
importance of the global experience. As we develop socially and economically, travel
becomes an increasingly important facet in our life and lifestyle. Our goal is to create a
simple, clean and thoughtful retail space that will house an ever-changing collection of
sportswear, accessories, technology and footwear that specifically enhances the travel
experience. But you don't have to fly privately or own your own Gulfstream V to relate to the
· concept. It's all about the experience of the trip, the idea of the journey--whether
you're flying around the world for work or jetting to Miami for the weekend. Which jacket to
bring, how many pair of shoes, which watch, what bag? Do you pack everything you own or
bring only your most versatile essentials? ~' ~' .: '.. ', asks these questions and helps answer
them through an exclusive range of design-minded and travel inspired product. Each and
every item at ~ will specifically reference an aspect of travel, whether it's a quad-band
GSM cell phone, a packable pair of Reebok Travel Trainers or an :. ! private label
garment bag. '~, , is a photo ipod. It is a Luminor GMT. It is a Goyard toiletries bag. It is a
Nike Commjacket, a CP Company pant and a Pentax Lumix. It's looking at how people travel
and then making that experience more enjoyable, convenient and pleasurable. Don't just
get there....
The Space
will serve as a learning center where different ideas, cultures and design-minded
products from around the world meet. It's about bringing the world together in one
space. The goal of the store is to maintain a delicate balance of all-things cool and travel
inspired presented in a clean, modern and stylized setting. While the space will draw
references from different travel environments, the airport, a first class cabin, etc, it will
not overshadow the product but instead subtly support the theme. While this theme
will run concurrent throughout the space it should feel less conceptual and more
dynamic like being in a new city, an international airport, a crossroads of culture, art and
fashion. An energetic space much like Miami, the transient port that it calls home.
Borrowing from the "first class cabin" model, all efforts will be made to provide the
ultimate service-based shopping experience ensuring every comfort is thought of and
provided. A pleasurable shopping experience makes for great conversation while an
educational shopping experience makes for a return visit. To ensure this all employees
will exude the same passion and knowledge as our consumer. All product will be
well-thought out, new and as exclusive as possible. However, exclusivity and quality will
be treated as a necessity and not a privilege. And unlike other small retailers, keeping
sufficient inventory levels will not preclude our commitment to finding the best in
innovative and forward product.
Product
All product selected to be showcased at will share the same sensibilities: smart,
modern, ergonomic, versatile, classic, design conscious. It is these very same sensibilities
that will distinguish the selling floor from other locations on the beach. The space will
serve as a laboratory for new product from established couture and sportswear brands, as
well as product from up and coming independent designers all featured from an angle of
travel. It's about being both well traveled and travel-minded then selecting which items
to make your journey that much more enjoyable. In addition to this unique group of
product and brands, there will be obvious opportunities to develop special make product
with progressive labels like Nike and Evisu that will house the travel concept. And to drive
this travel concept further, each month a new designer from a different country will be on
display and featured at the store with an accompanying installation piece. The following
are some key apparel and footwear brands that will define the ~'~ '. assortment:
Denim -
Sportswear'
Couture::
Intl' Designers
Footwear':
Accessories/
Technology~
PRPS, Red Monkey, Evisu, Nudie, Stitches, True Religion, Edun
Nike White Label Y3, Duffer of St. George, Triko, Ryan Kenny,
Royal Filth, Great China Wall, Red Ear
Paul Smith, Comme des Garcons, Juyna Wantanabe, Martin
Margiela, Balenciaga, Stone Island, CP Company
Misericordia, Hamek, Permanent Vacation, Prix Des Nations
Adidas, Nike, Nike SB, Reebok, Puma, New Balance,
Creative Recreation, Visvim, Dior, Arrive Private Label
Goyard, Mandarina Duck, Samsonite, Burton, IWC,
Bell & Ross, Motorola, Nokia, Arrive Private Label
Private Label
In addition to showcasing the most unique and compelling product assortment in Miami,
will also design and produce a private label collection featuring cut and sew
apparel and luggage. These two product categories are integral components in establish-
ing overall travel concept and will embody the same sensibilities the brand
conveys: smart, modern, ergonomic, versatile, classic, design minded, luxury, youth. These
elements will be addressed in every detail of design and production. Only the finest
fabrics and pieced goods will be used in creating this private label collection. Each season
will draw inspiration from classic and timeless silhouettes the world over then given its
own twist of young street styling executed through thoughtful and rich trim, technique
and color. Special attention will be given to the fit which will reflect a tailored but relaxed
look. Every thought will be given to what we do, how we move and things we need when
we travel. It's always about being both well traveled and travel-minded then reshaping
and styling the items which make your journey that much more enjoyable. The consumer
who appreciates discovery, detail and special features will be introduced to an exclusive
new range of product ans accessories. Both the apparel and luggage will be available for
wholesale and retail. The following is a detailed breakdown of the two private label
product categories and price ranges:
Apparel
Knits/$75 - $225
Denim/$98 - $2.50
Tees/$32 - $60
Outerwear/$125 - $250
Luggage
Trunk- $695
Duffle - $495
Weekender- $300
Tote - $425
Garment Bag - $395
Toiletries Bag - $125
Founded in 2004, Jayden Dreese dba was formed by four friends to address the
ever-growing demand for better product in the under serviced Miami market for design-
minded individuals.
Udi Awha~,~.~,~,.~::v - Owner and head merchant for the 7 highly popular Training Camp
stores throughout New York City, Udi is widely considered by his peers as the footwear
guru of his time with 17 years of hard-nosed retail and merchandising experience. In
addition to holding the Penguin footwear license and building the label into a legitimate
brand, Udi also consults and develops special make product for such footwear power-
houses as Nike, Adidas, and Timberland. His retail insight and merchandising prowess are
often enlisted by the likes of such companies as Foot Action and Reebok for product
seminars and retail lectures. His role will continue to serve as head merchant and chief
buyer along with developing co-branding opportunities.
Dao~Yi Ch~-~ - Creative Director for Sean John, Dao-Yi brings 10 years of extensive
market and product knowledge to the team. Serving as Sean "RDiddy" Combs' right hand
and fashion consigliore, Dao-Yi oversees the development for all product categories and
licensees under the Sean John umbrella, including denim, outerwear and accessories. In
addition to working on the brand Dao-Yi also plays an integral part in directing the vision
of the iconic label through its award winning print and advertising campaigns. Connect-
ing the dots between marketing and design Dao-Yi brings the best of both worlds in
brand building. His role will be head buyer, co-branding specialist and product develop-
ment for the private label component.
Max Pie~ ~t - Director of Marketing for the Opium Group, music producer, and trend
consultant, Max is the self-proclaimed "King" of South Beach. As the Opium Group
director Max manages the event calendars for the Beach's most popular nightclubs:
Opium, Prive'and Mansion. From bookings, promotions, special events to artist relations
Max's extensive network of clientele and services is a critical piece to the overall business.
With Miami at his fingertips and the nightlife scene under wraps Max is the modern day
Clark Gable. His role will be day-to-day operations, marketing and public relations.
'Oav l E.
Cohen,
CPA, M.S.
Certified Public Accountant
350 Fifth Ave., Ste. 724
Empire State Building, 7th Floor
New York, N.Y. 10118-0724
(212) 714-1040
To the Board of Directors
A & R FOOTWEAR 98 INC. and Subsidiaries D/B/A TRAINING CAMP
I have compiled the accompanying
Consolidated Statement of Assets and Liabilities as of FEBt~ UARY 28 2005
and the related
Consolidated Statement of Revenues and Expense,:
year then ended, in accordance with Statements on Standarc s for Accounting and
Review Services issued by the American Institute of Certifie cl Public
Accountants.
A compilation is limited to presenting in the form of financi~ ~1 statements
information that is the representation of management. I hay{: not audited or
reviewed the accompanying financial statements and, accord ingly, do not express
an opinion or any other form of assurance on them.
Management has elected to omit substantially all of the discl:)sures and the
statement, of cash flows required by generally accepted accot ~nting principles. If
the omitted disclosures and statement of cash flows were inc !uded in the financial
statements, they might influence the user's conclusions abou: the Company's
financial position, results of operations, and cash flows. Acc ordingly, these
financial statements are not designed for those who are not i~ [formed about such
matters.
David E. Cohen
New York, April 6, 2005
MEMBER:
American Institute of Certified Public Accountants
New York State Society of Certified Public Accountant
A & R FOOTWI~;AR 98 INC. and Subsidiaries D/B/A TRAINING CAMP
Consolidated Statement of Assets and Liabifities
ASSETS
CURRENT ASSETS
Cash
Accounts receivable
Inventory
Prepaid expenses
Other curren! assets
Total currcn! assets
FIXED ASSETS
Equipment and Furnishings(net)
Other fixed assets
Total fixed assets
As of FEBRUARY28 2005
$ 110
52,122
1,275,000
15,122
$ 1,459,988
845,8O0
1,060,800
Total assets
:,5~0,788
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable
Other current liabilities
Total cmTent liabilities
$ 1,210,833
10,101
$ 1,22O,934
EQUITY
Capital Slock 200 shares no par value
Retained earnings
Total equity
150,0(X)
1,149.854
1,299.854
Total liabilities and equity $ ~.5._0.78
A & R FOOTWEAR 98 INC. and Subsidiaries D/B/A TRAINFNG CAMP
Consq(((l~ajed Slatem?Lt_~f Reven?s__a?_d Expenxes
b~r the )~ ar Ended l:cbruarv 28 200S
REVENUES
Sales receipts $ 13,100,005
Investment income I, 120
Other revenues 1,978
Total rcvel]ues
$ 10, t 03,103
EXPENSES
Cost of Goods Sold 5,454,000
Compensation of Officers 650,000
llmployees Salaries and related taxes and insurance 1,259,444
Rent 864,000
Utilities 21,599
Office supplies I 1,272
Advertising 51,222
Communicalions 22,978
Insurance 5,926
Taxes 631,72 I
Other expenses ......... 52,559
Tolal expenses
9,024,721
Excess o|' revennes ovcr expenses
$ 1,078,382