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Related Party Transactions
 12 Months Ended
Dec. 31, 2012
Related Party Transactions  
Related Party Transactions

Note 20—Related Party Transactions

 

Primoris has entered into various leasing transactions with Stockdale Investment Group, Inc. (“SIGI”).  Brian Pratt, our Chief Executive Officer, President and Chairman of the Board of Directors and our largest stockholder, holds a majority interest and is the chairman, president and chief executive officer and a director of SIGI.  John M. Perisich, our Senior Vice President and General Counsel, is secretary of SIGI.

 

Primoris leases properties located in Bakersfield (lease expires in October 31, 2015), Pittsburg (lease expires September 30, 2014) and San Dimas in California (lease expires March 30, 2019), and in Pasadena, Texas (leases expire in July 2019 and 2021) from SIGI.  During the years ended December 31, 2012, 2011 and 2010, the Company paid $929, $910 and $892, respectively, in lease payments to SIGI for the use of these properties.

 

The Company entered into a $6,100 agreement in 2010 to construct a wastewater facility for Pluris, LLC, a private company in which Brian Pratt also holds a majority interest. The transaction was reviewed and approved by the Audit Committee of the Board of Directors of the Company.  The project was substantially completed in December 2011 and the Company recognized revenues of $362 and $5,680 in 2012 and 2011, respectively at normal margins.

 

Primoris leases a property from Roger Newnham, one of our stockholders and a manager of our subsidiary Born Heaters Canada. The property is located in Calgary, Canada. During the years ended December 31, 2012, 2011 and 2010 Primoris paid $292, $277 and $252, respectively, in lease payments to Mr. Newnham for the use of this property. The term of the lease is through December 31, 2014.

 

Primoris leases a property from Lemmie Rockford, one of our stockholders, which commenced November 1, 2011.  The property is located in Toledo, Washington.  During the year ended December 31, 2012 and 2011, Primoris paid $90 and $90, respectively, in lease payments to Mr. Rockford for the use of this property.  The lease expires on January 15, 2015.

 

As a result of the November 2012 acquisition of Q3C, the Company became party to leased property from Quality RE Partners, owned by three of the Q3C selling shareholders, of whom two are current employees, including Jay Osborn, President of Q3C.  The lease commenced October 28, 2012.  The property is located in Little Canada, Minnesota.  During the year ended December 31, 2012, the Company paid $31, in lease payments to Quality RE Partners for the use of this property.  The lease expires on October 27, 2022.

 

The Company owns several non-consolidated investments and has recognized revenues on work performed for those joint ventures.  The Company recognized $0, $0 and $83 in related party revenues during the years ended December 31, 2012, 2011 and 2010, respectively, on the OMPP joint venture.  The Company also recognized $0, $0 and $472 in related party revenues for the years ended December 31, 2012, 2011 and 2010, respectively, from the St. - Bernard Levee Partners joint venture.  On November 17, 2012, the Company acquired a 49% interest in Alvah, Inc. as part of the Q3C acquisition.  During 2012, payments made to Alvah as a subcontractor by ARB and Q3C amounted to $6,377 and $537, respectively.  See Note 8— “Equity Method Investments”.