Storage Express opened a 25,000-square-foot expansion at an existing self-storage facility in Bedford, Ind. The expansion completes Phase II of its 25,000-square-foot property, which opened in 2008. 

Storage Express was the first in the area to offer heated and cooled storage spaces along with all the latest generation of tenant security, and 24-hour automated rental center.

Storage Express owns and operates 75 self-storage properties in smaller markets across Indiana, Illinois, Kentucky, Tennessee and Ohio.  Rentals are centralized out of the companys Bloomington, Ind., headquarters.

A months-long FBI sting resulted in the arrest of an alleged terrorist and the confiscation of several weapons and explosives being stored in a unit at a Framingham, Mass., self-storage facility.

Police said Rezwan Ferdaus, 26, rented the self-storage unit June 17. He paid $450 cash for the rental, with money given to him by undercover FBI agents. Undercover agents met with Ferdaus Wednesday at a storage facility on Waverly Place.

The undercover agents gave Ferduas the requested items, which included six AK-47 assault rifles, three grenades and what Ferdaus thought was 25 pounds of plastic explosives. Ferdaus had previously purchased and stored remote-controlled airplanes he planned to use to attack the U.S. Capitol and Pentagon.

Once Ferdaus placed all the items in the unit and closed the door, he was arrested. Ferdaus appeared in U.S. District Court in Worcester on Wednesday. Hes being held pending a full detention hearing on Monday.

StorageTreasures.com, an online resource for self-storage auctions, has launched an auction-scheduling widget that will allow self-storage facilities, state self-storage associations and auctioneers to display and update auction schedules, details and status updates online. The widget can be created in just minutes, and can be easily installed on any website without special coding, support, programming or expertise. It can be obtained by signing up for an account at StorageTreasures.com.

Our goal was to create a tool to update self-storage auction info in the time it takes to send an e-mail, said president and founder Lance Watkins. Most storage facilities do not have a webmaster at their disposal to maintain online auction schedules, so we wanted to create a tool that any facility manager could easily use. Our development team nailed this one, building a tool that solves a problem many facilities deal with on a daily basis.

StorageTreasures.com is a free storage-auction locator and facility finder covering the United States and Canada. The website offers auction schedules and site-specific guidelines for auction hunters and self-storage owners alike.

Earlier this year, StorageTreasures entered an agreement to receive investment funding and advisory services from three partners: A-1 Self Storage, RESCO Self Storage and Stor-All Storage. Executive managers from each company serve on the StorageTreasures Board of Directors. In addition, the company has partnered with the Self Storage Legal Network, the official legal counsel of the national Self Storage Association, and American Auctioneers, the auction company of Storage Wars reality TV fame.

The Spanish Self Storage Association (Asociación Española de Self Storage, or AESS) will hold its annual conference on Oct. 25 in Barcelona. The program includes a tradeshow and presentations on topics such as Best Technical Advice on Starting a Self-Storage Facility. Event details can be found at AESS.es.

There has never been a better time to invest in self-storage in Spain, according to a press release by the AESS. Property is at all-time-low prices, and the market has continued to grow despite the economic downturn. Spanish operators have attracted investment dollars from Europe and the United States, as Spanish banks lack knowledge and understanding of self-storage, AESS said.

With a population of 46 million, most living in urban locations, Spain has only 40 self-storage operators with 100 facilities, mainly in Barcelona, Madrid and Valencia. Capital investment continues to be the biggest barrier to entering the Spanish market, according to the association.

AESS is part of the Federation of European Self Storage Associations. It is managed by Sandra Noy.

Strategic Storage Trust Inc., a publicly registered, non-traded real estate investment trust targeting the self-storage market, purchased a 6.5-acre land parcel in Brampton, Ontario, Canada, for approximately $5.1 million (CAD). Plans for the site include developing a five-building, 930-unit self-storage facility on 4.36 acres. The remaining 2.17 acres may be redeveloped for retail use.

Toronto-based Budget Development Partners, a developer and manager of self-storage properties, will oversee the development efforts of the proposed 108,800-square-foot storage facility. "This acquisition represents one of the last available small retail parcels along this highly sought after corridor," said Reade DeCurtins, senior partner at Budget Development. "Due to rapid growth, scarcity of land and stout demographics, this area has become one of the most attractive areas for development in the entire country."

Last year, Strategic Storage Holdings LLC, an affiliate of Strategic Storage Trust, agreed in principle to a joint venture with Budget Development to build new self-storage facilities or redevelop existing industrial buildings throughout Canada, as well as actively acquire operational self-storage properties.

"This site is ideal for self-storage development due to its prime access to nearby highways along a major retail road like Queen St.," said H. Michael Schwartz, chairman and CEO of Strategic Storage Trust. "The city of Brampton's proximity to downtown Toronto and Pearson International makes this area a desirable location for residential development, and perfect for a new first-class storage facility, which will be representative of the SmartStop brand."

Strategic Storage Trust operates self-storage facilities under the SmartStop brand name. Since the companys launch in 2008, its portfolio has expanded to include 78 facilities in 17 states and Canada, comprising approximately 52,000 self-storage units and 6.4 million rentable square feet of storage space.

The LifeStorage self-storage facility of Mokena, Ill., has been chosen as a recipient of the 2011 Beautification Award bestowed by the Mokena Community Affairs Commission. The facility is one of 32 businesses to win the award out of a pool of more than 700.

Created in 1997, the award is given each year to homes and businesses that are well-maintained, colorful and enhance the beauty of the village. For the selection process, volunteer judges are assigned sections of Mokena. They make two passes during different seasons, selecting three winners for each section that represent and embody the spirit of the award.

Facility managers Kelly Butt and Corey Tolbert attribute their win to hard work and maintaining the appearance of their facility, particularly through their landscaping service. Our landscaper company, CNC Lawn Care Inc., has maintained the property for two years and keeps everything looking fantastic. We have a variety of seasonal plants that keep the facility colorful year round, said Butt, who has worked at the facility for 19 months. Mokena is one of LifeStorages newest locations.

The self-storage facility has been working diligently since April to improve its appearance beyond the seasonal flora, adding new paint, signs and even a new gate, said Tolbert. Im happy that we have been able to present our company in a good light, and honored to be one of the few selected for this award. I hope that the Beautification Award will help our reputation and be proof that LifeStorage cares about quality, Tolbert said.

The 2011 Beautification Award ceremony takes place Sept. 29. It includes a video presentation, and businesses receive certificates and yard plaques.

LifeStorage was founded in 2002 by Jean Jodoin and Christopher Barry. The company owns and operates 18 self-storage facilities throughout the Chicagoland area.

Jurors in a murder trial are now weighing information about a visit by the defendant to a self-storage facility in Subiaco, a suburb of Perth in Australia.

Cameron Mansell is on trial in connection with the disappearance and alleged murder May 3 of millionaire Craig Puddy. Police said Mansell killed Puddy after he threatened to tell police he suspected Mansell was stealing from Crawley Bar Basement, which Mansell managed. 

Puddys body has not been found and Mansell maintain hes not involved. He claims Puddy was assaulted by a group of men over a drug debt.

On Wednesday, a taxi driver told the jury in court he drove Mansell from Observation Hotel in Scarborough on May 5 to National Storage in Subiaco.

Assistant manager Anne Elsner said the facilitys computer records show Mansell accessed his unit that day. It was the first time since January 2010. Elsner told the jury Mansell had forgotten his keys and asked her for bolt cutters to break the lock. Mansell told the storage managers he was in a hurry and needed to put some belongings in the unit.

After serving a search warrant on May 7 police found several items belonging to Mansell including a Honda headlight from a motorcycle, a small black suitcase, some plastic bags, a chamois, an iPod dock, a black organizer and a 2009 street directory. Some of the documents found in the plastic bags contained information about financial transactions.

An empty factory in Sutton, United Kingdom, has been converted into a 17,000-square-foot self-storage facility. B.E. Webbe purchased the factory on Coxmoor Road from GT Tools a year ago. The factory had been empty for more than a year and had been vandalized.

The conversion cost £1.2 million ($1.6 million). Transforming the building included removing the asbestos roof and adding new columns to support a new roof. A mezzanine floor and loading bays were also added. Other changes include new offices, kitchen and toilets. The flooring was sandblasted and painted.

B.E. Webb Self Storage has 150 storage units ranging in size from 20 square feet to 300 square feet. A second phase to add another 17,000 square feet is scheduled for next year. The property also includes an adjacent yard, which will become a gated storage compound.

B.E. Webbe owns a facility on Mansfield Road in Derby, and has refurbished buildings in Burton and Long Eaton into self-storage facilities.

By Jeffery J. Greenberger

Just when I thought it was safe to go back in the water, I find self-storage wage and hour issues still lurk in the shallows. The last time I addressed this topic in an article was in 2002 when there were class-action lawsuits pending against several large self-storage operators for violations of the Fair Labor Standards Act. There now seems to be a new round of these claims being made in the self-storage world.

Many self-storage owners operate under the misconception that if an employee carries the title manager, its enough to exempt the employee from being paid overtime. You think you can simply pay the manager a salary, regardless of the hours worked or job duties performed. While its not impossible for a facility manager to be exempt, there are benchmarks that must be met.

Fixed Wage

To begin, an exempt employee should receive a fixed salary even if he doesnt work 40 hours in a week. If you consider your manager to be exempt but dock hours for personal appointments, late reporting times, etc., he does not fit the definition.

You cant have it both ways. If you want your employee to be exempt, his wage must be fixed, no matter what. If he fails to show up on time, work full days or do the job as required, discipline or discharge are your remedies.

Professional, Executive or Administrative

Exempt status is reserved for employees who are considered professional, executive or administrative. Ill exclude discussion of the professional classification from this article because that category is generally reserved for professions such as doctor, accountant, attorney, etc.

An executive employee must manage at least two other employees and exercise a significant amount of discretion and independent judgment in doing his job. While your manager may manage two other staff members, the test really looks to the latter half of that definition. For example, if a manager has the power to waive late fees for tenants but must otherwise follow the owners policies and procedures to a T, he is not exercising a significant amount of independent judgment and discretion.

An administrative employee must exercise a substantial amount of independent discretion in the position, be empowered to make important decisions that directly relate to the companys management policies, and operate with only general supervision. A good example of an exempt administrative employee is a project manager. Its difficult to find a self-storage manager who fits into this category.

Further, in an executive or administrative position, the managers work must significantly relate to the success or failure of the business. Examples might include but are not limited to setting rental rates, determining marketing sources, purchasing hardware and software, and negotiating vendor contracts for services. If your manager doesnt do any of these things, he may not fit into the executive or administrative categories.

Finally, if your employee makes a salary of less than $455 per week, there is  no way he can be exempt from overtime, even if he meets the rest of the criteria listed above. This is important because many of you offset salary with an apartment, and a manager's actual monetary compensation may be less than $455 per week. In such cases, your employee is entitled to overtime regardless of whether he meets the test of the administrative or executive categories.

Industry-Specific Challenges

Assuming you still have questions about whether your employee is exempt, lets discuss the problems inherent to self-storage:

1. Some days are just very busy, for example, the day rents get posted, particularly if they all come due on the first of the month. Many managers may work more than 40 hours during the week rent is posted, and you cannot give compensatory off time in another week to make up for the excess hours of a previous week. The make-up time must be within the same week or the employee is entitled to overtime.

2. Office hours for self-storage facilities almost always exceed 40 hours per week. This is problematic if youre running the facility with one manager or a manager and a relief employee.

3. Managers are often expected to field phone calls after office hours. Any form of work is considered time calculatable toward overtime. If the office phones forward to a managers phone after office hours, those calls are subject to overtime if the employee is not exempt.

4. Onsite managers may be expected to perform additional services after office hours. For example, they may be required to walk the property, open or close the manual gate, assist customers who experience trouble with the gate, and perform facility maintenance. If your manager is not exempt, all of these duties are subject to an overtime claim.

5. In self-storage, couples often work together. The manager may work 40 hours in a week, but his or her spouse may work an additional 20 or 30 hours to assist with phones, sweeping out units or any number of tasks. If the spouse is assisting outside his or her regular work hours, that person is on duty and wracking up overtime.

Recording Hours Worked

One of the biggest problems is facility owners do not keep track of employees work hours because they believe their managers are exempt or that each manager is really only working 40 hours per week. If the relationship between the manager and the business ends, a disgruntled manager may go back to owner with a record of all the hours he worked, and the owner will be hard-pressed to prove differently.

As a matter of fact, some owners have probably encouraged employees to turn in time sheets that do not show overtime, even if they believe their managers to be exempt, because they think time sheets will protect them from a wage an hour claim later. Unfortunately, this isnt true, and it has been the subject of multiple class-action lawsuits.

Lets face it: A manager who is no longer enthralled with his position or who has been discharged can make a wage and hour claim, insisting he worked all kinds of extra hours for any number of reasons. If you have no record of whether this additional work was actually performed, you will be at the mercy of the employees estimates or records. As the employer, you are required to maintain accurate records of all hours worked by your non-exempt employees.

The Consequences

The look-back period for a wage and hour claim is two or three years, depending on whether the violation is willful. If the employees case proceeds successfully, youre looking at repayment of the wages at the rate of time and a half, plus penalties, interest and attorneys fees.

The good news is your employee may be exempt, or you may be able to create a job category to make him exempt going forward. Consult with a local attorney who knows wage and hour law to ensure youre handling the matter correctly. If you determine your employee is not exempt and wish to fix the situation, you can reach a settlement with the employee with a release of claim for wage and hour violations. This will prevent the possibility of future claims should you and the employee become disenchanted with one another.

Essentially, you can buy yourself a release of that claim now for probably a substantially lower sum simply because you and the employee did not understand that he was not exempt. You want to address and fix this problem as quickly as possible to stop the clock running on the look-back period. You also want to resolve the situation in a manner that is fair to you and your employees and avoid the risk of an expensive claim down the road.

As always, and certainly in a wage and hour situation, the best place to start is with your local attorney. Review job descriptions, job requirements, job duties, performance hours and other tasks the employee may be expected to perform to determine if you have risk or exposure to risk. If you are at risk, work with your attorney to refine job characteristics and responsibilities, attempting to make the employee exempt. If that is not possible, resolve the claim with the employee and begin paying overtime wages when overtime hours are worked.

This column is for the purpose of providing general legal insight into the self-storage field and should not be substituted for the advice of your own attorney.

Jeffrey J. Greenberger is a partner with the law firm of Katz Greenberger & Norton LLP in Cincinnati and is licensed to practice in Kentucky and Ohio. Mr. Greenberger primarily represents the owners and operators of commercial real estate, including self-storage owners and operators. To reach him, call 513.721.5151; e-mail jjg@kgnlaw.com ; visit www.selfstoragelegal.com .