2.2.0.25falsefalse11301 - Disclosure - Commitments and Contingenciestruefalsefalse1falsefalseUSDfalsefalse1/1/2010 - 12/31/2010
USD ($)
USD ($) / shares
$Duration_1_1_2010_To_12_31_2010http://www.sec.gov/CIK0000924901duration2010-01-01T00:00:002010-12-31T00:00:00Unit1Standardhttp://www.xbrl.org/2003/iso4217USDiso42170Unit13Dividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli0Unit12Standardhttp://www.xbrl.org/2003/instancesharesxbrli0USDUSD$2true0cli_CommitmentsAndContingenciesAbstractclifalsenadurationCommitments and Contingencies [Abstract]falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringCommitments and Contingencies [Abstract]falsefalse3false0us-gaap_CommitmentsAndContingenciesDisclosureTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseverboselabel1falsefalsefalse00<div>
<div>
<table style="font-family: Times New Roman; font-size: 10pt;" cellspacing="0" cellpadding="0" width="100%">
<tr valign="top"><td style="width: 18pt;" align="right">
<div><font style="display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;" class="_mt">13. </font></div></td>
<td>
<div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;" class="_mt"><font style="display: inline; text-decoration: underline;" class="_mt">COMMITMENTS AND CONTINGENCIES</font></font></div></td></tr></table></div>
<div style="text-indent: 0pt; display: block;"><br /></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;" class="_mt">TAX ABATEMENT AGREEMENTS</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">Pursuant to agreements with the City of Jersey City, New Jersey, the Company is required to make payments in lieu of property taxes ("PILOT") on certain of its properties located in Jersey City, as follows:</font></div>
<div style="text-indent: 0pt; display: block;"><br /></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">The Harborside Plaza 4-A agreement, which commenced in 2002, is for a term of 20 years. The PILOT is equal to two percent of Total Project costs, as defined. Total Project costs, as defined, are $49.5 million. The PILOT totaled $1,205,000, $1,001,000 and $1,001,000 for the years ended December 31, 2010, 2009 and 2008, respectively.</font></div>
<div style="text-indent: 0pt; display: block;"><br /></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">The Harborside Plaza 5 agreement, as amended, which commenced in 2002 upon substantial completion of the property, as defined, is for a term of 20 years. The PILOT is equal to two percent of Total Project Costs. Total Project Costs, as defined, are $170.9 million. The PILOT totaled $3.8 million, $3.2 million and $3.2 million for the years ended December 31, 2010, 2009 and 2008, respectively.</font></div>
<div style="text-indent: 0pt; display: block;"><br /></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">At the conclusion of the above-referenced PILOT agreements, it is expected that the properties will be assessed by the municipality and be subject to real estate taxes at the then prevailing rates.</font></div>
<div style="text-indent: 0pt; display: block;"><br /></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;" class="_mt">LITIGATION</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">The Company is a defendant in litigation arising in the normal course of its business activities. Management does not believe that the ultimate resolution of these matters will have a materially adverse effect upon the Company's financial condition taken as whole.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;" class="_mt"> </font> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;" class="_mt">GROUND LEASE AGREEMENTS</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">Future minimum rental payments under the terms of all non-cancelable ground leases under which the Company is the lessee, as of December 31, 2010, are as follows: <font style="font-style: italic; display: inline;" class="_mt">(dollars in thousands)</font></font></div>
<div style="text-indent: 0pt; display: block;"><br /></div>
<div>
<table style="font-family: Times New Roman; font-size: 10pt;" cellspacing="0" cellpadding="0" width="100%">
<tr><td style="border-bottom: black 2px solid;" valign="top" width="40%">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: -18pt;" align="justify"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">Year</font></div></td>
<td style="border-bottom: black 2px solid; text-align: right;" valign="top" width="40%">
<div><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">Amount</font></div></td></tr>
<tr><td valign="top" width="40%">
<div><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">2011</font></div></td>
<td style="text-align: right;" valign="top" width="40%">
<div><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">$ 375</font></div></td></tr>
<tr><td valign="top" width="40%">
<div><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">2012</font></div></td>
<td style="text-align: right;" valign="top" width="40%">
<div><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">367</font></div></td></tr>
<tr><td valign="top" width="40%">
<div><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">2013</font></div></td>
<td style="text-align: right;" valign="top" width="40%">
<div><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">351</font></div></td></tr>
<tr><td valign="top" width="40%">
<div><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">2014</font></div></td>
<td style="text-align: right;" valign="top" width="40%">
<div><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">367</font></div></td></tr>
<tr><td valign="top" width="40%">
<div><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">2015</font></div></td>
<td style="text-align: right;" valign="top" width="40%">
<div><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">371</font></div></td></tr>
<tr><td style="border-bottom: black 2px solid;" valign="top" width="40%">
<div><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">2016 through 2084</font></div></td>
<td style="border-bottom: black 2px solid; text-align: right;" valign="top" width="40%">
<div><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">16,688</font></div></td></tr>
<tr><td valign="top" width="40%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font></td>
<td valign="top" width="40%"><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt"> </font></td></tr>
<tr><td style="border-bottom: black 3px double;" valign="top" width="40%">
<div><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">Total</font></div></td>
<td style="border-bottom: black 3px double; text-align: right;" valign="top" width="40%">
<div><font style="display: inline; font-family: times new roman; font-size: 10pt;" class="_mt">$18,519</font></div></td></tr></table></div>
<div style="text-indent: 0pt; display: block;"><br /></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">Ground lease expense incurred by the Company during the years ended December 31, 2010, 2009 and 2008 amounted to $490,000, $734,000 and $701,000, respectively.</font></div>
<div style="text-indent: 0pt; display: block;"><br /></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"><font style="display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;" class="_mt">OTHER</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">The Company may not dispose of or distribute certain of its properties, currently comprising seven properties with an aggregate net book value of approximately $133.9 million, which were originally contributed by certain unrelated common unitholders, without the express written consent of such common unitholders, as applicable, except in a manner which does not result in recognition of any built-in-gain (which may result in an income tax liability) or which reimburses the appropriate specific common unitholders for the tax consequences of the recognition of such built-in-gains (collectively, the "Property Lock-Ups"). The aforementioned restrictions do not apply in the event that the Company sells all of its properties or in connection with a sale transaction which the Company's Board of Directors determines is reasonably necessary to satisfy a material monetary default on any unsecured debt, judgment or liability of the Company or to cure any material monetary default on any mortgage secured by a property. The Property Lock-Ups expire periodically through 2016. Upon the expiration of the Property Lock-Ups, the Company is generally required to use commercially reasonable efforts to prevent any sale, transfer or other disposition of the subject properties from resulting in the recognition of built-in gain to the specific common unitholders, which include members of the Mack Group (which includes William L. Mack, Chairman of the Company's Board of Directors; David S. Mack, director; Earle I. Mack, a former director; and Mitchell E. Hersh, president, chief executive officer and director), the Robert Martin Group (which includes Robert F. Weinberg, director; Martin S. Berger, a former director; and Timothy M. Jones, former president), the Cali Group (which includes John R. Cali, director, and John J. Cali, a former director). 130 of the Company's properties, with an aggregate net book value of approximately $1.8 billion, have lapsed restrictions and are subject to these conditions.</font></div>
<div style="text-indent: 0pt; display: block;"><br /></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;" class="_mt">Sanofi-Aventis U.S. Inc. ("Sanofi"), which occupies neighboring buildings in Bridgewater, New Jersey, exercised its option to cause the Company to construct a building on its vacant, developable land and has signed a lease for the building. The lease has a term of 15 years, subject to three five-year extension options. The construction of the 205,000 square foot building commenced in 2009 and was delivered to the tenant in January 2011. The total estimated costs of the project are expected to be approximately $50.9 million (of which the Company has incurred $38.0 million through December 31, 2010.)</font></div> </div>13.
COMMITMENTS AND CONTINGENCIES
TAX ABATEMENT AGREEMENTS
Pursuant to agreements with the City of Jersey City, New Jersey, the Company isfalsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringIncludes disclosure of commitments and contingencies. This element may be used as a single block of text to encapsulate the entire disclosure including data and tables.Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
falsefalse12Commitments and ContingenciesUnKnownUnKnownUnKnownUnKnownfalsetrue