Related Party Transactions

12 Months Ended

Dec. 31, 2016

Related Party Transactions [Abstract]

Related Party Transactions

RELATED PARTY TRANSACTIONS

Randolph K. Repass, West Marine's founder and a member of the Company's board of directors, is a general partner of two partnerships in which he, together with certain members of his family, owns substantially all of the partnership interests. Currently, West Marine leases two properties from the partnerships: the Watsonville Support Center and the Santa Cruz store, which relocated to a larger building in the same center in mid-2016. Both locations are in California.

The lease for the Watsonville Support Center is West Marine's most significant related party transaction. On October 26, 2016, West Marine Products, Inc., a wholly-owned subsidiary of West Marine, Inc., and the landlord entered into an amendment to this lease which would have expired on October 31, 2016. The amendment extended the term to October 31, 2021, with one five-year extension at the option of the Company. Base rent is initially fixed at $1.2 million per year, with contractual increases in year three and year four. In addition, base rent could be adjusted if the Company exercises its right under the amendment to give back a portion of the leased space during the term, subject to certain conditions.

Negotiations for both the Support Center lease amendment and the Santa Cruz store lease were conducted at arms' length using independent representatives for each party.

During 2014, West Marine terminated one related party lease, Braintree, Massachusetts store location.

West Marine made payments to the above-related parties during fiscal years 2016, 2015 and 2014 in the aggregate amount of approximately $1.6 million, $1.6 million and $1.7 million, respectively.

All related party transactions, including the related party new and renewal leases noted above, are pre-approved by West Marine's Board of Directors acting through the Audit and Finance Committee. The Audit and Finance Committee reviews and determines that the related party transaction is in the best interest of the Company and its stockholders.