Gain on Disposal of Property	12 Months Ended
Dec. 31, 2012
Gain on Disposal of Property	NOTE 11 – GAIN ON DISPOSAL OF PROPERTY On May 3, 2011, an automobile accident and ensuing fire resulted in a total casualty loss of the Plaza at Puente Hills restaurant in Industry, California (Unit 218). The restaurant has not conducted any operations since that date. Unit 218 was operated by Del Taco on real property and improvements owned by the Partnership and leased to Del Taco under a standard lease dated February 24, 1988 between Del Taco and the Partnership, as amended (the Lease). The Lease provided for rental payments equal to 12% of the gross sales (as defined in the Lease) at Unit 218. During the years ended December 31, 2011 and 2010, the annual 12% rental paid to the Partnership was $45,627 and $74,052, or $0.965 and $1.551 per Partnership unit (unaudited), respectively. The Lease did not provide for any minimum rent, except for rental value insurance of $3,500 per month for six months in the event of casualty loss and loss of rental income. The Lease was to expire on February 28, 2023. As required by the Lease, Del Taco maintained fire and casualty insurance covering Unit 218 with Commonwealth Insurance. The carrier confirmed coverage. In the case of total destruction of the improvements from any cause covered by the insurance (as occurred here), the Lease provided that Del Taco would be obligated to repair the improvements upon receipt of the net insurance proceeds. Del Taco’s obligation to repair was not limited to the net insurance proceeds. Del Taco, as the General Partner, with certain exceptions, had the sole and exclusive right to manage the business of the Partnership. This right included, specifically, the right to operate, construct or sell any personal and real property owned by the Partnership. Due to Unit 218’s historical financial underperformance relative to an average Del Taco unit and Del Taco’s obligation to repair the improvements above and beyond the net insurance proceeds, Del Taco, as the lessee under the Lease and as the operator of Unit 218, had a material financial interest in the disposition of that restaurant. Due to the presence of such material financial interest, it appeared that Del Taco had a conflict of interest in the determination of the ultimate course of action. Section 5.8.3 of the Partnership Agreement provides that, if the General Partner believes it is unable to resolve a conflict of interest, it is authorized to describe the relevant facts and submit alternatives to the Limited Partners for their vote, who may then vote on the alternatives or choose another alternative. As such, the General Partner requested a vote on a proposal to sell the land, retain the net insurance proceeds and distribute all such proceeds in a special distribution to the limited partners. If the proposal was not adopted, the General Partner would be required to rebuild and continue operating the unit. Based on an analysis performed by management, the General Partner recommended that the financial interests of the Partnership and the Limited Partners would be best served to sell the land, retain the net insurance proceeds and distribute all such proceeds in a special distribution to the limited partners. As such, Del Taco filed a definitive proxy statement with the Securities and Exchange Commission on August 29, 2011. The result of such vote was determined in September 2011 and authorized the General Partner to sell the land, retain the net insurance proceeds and distribute all such proceeds in a special distribution to the limited Partners. The property was sold on December 2, 2011 for net sale proceeds of $926,393. In addition to the net sale proceeds, net insurance recovery proceeds for the property and equipment destroyed by the fire totaling $305,327 were received. The Partnership recorded net gain of $545,973. As of December 2, 2011, there were 47,323 limited partner units outstanding in the Partnership. Pursuant to the Partnership Agreement, these limited partners received a special distribution of $26.03 per unit on December 12, 2011 totaling 100% of the total net proceeds of $1,231,720 and the General Partner did not receive any distribution. The operating results of Unit 218 were not deemed significant to the overall financials to qualify for discontinued operations reporting.

NOTE 11 – GAIN ON DISPOSAL OF PROPERTY

On May 3, 2011, an automobile accident and ensuing fire resulted in a total casualty loss of the Plaza at Puente Hills restaurant in Industry, California (Unit 218). The restaurant has not conducted any operations since that date. Unit 218 was operated by Del Taco on real property and improvements owned by the Partnership and leased to Del Taco under a standard lease dated February 24, 1988 between Del Taco and the Partnership, as amended (the Lease). The Lease provided for rental payments equal to 12% of the gross sales (as defined in the Lease) at Unit 218. During the years ended December 31, 2011 and 2010, the annual 12% rental paid to the Partnership was $45,627 and $74,052, or $0.965 and $1.551 per Partnership unit (unaudited), respectively. The Lease did not provide for any minimum rent, except for rental value insurance of $3,500 per month for six months in the event of casualty loss and loss of rental income. The Lease was to expire on February 28, 2023.

As required by the Lease, Del Taco maintained fire and casualty insurance covering Unit 218 with Commonwealth Insurance. The carrier confirmed coverage. In the case of total destruction of the improvements from any cause covered by the insurance (as occurred here), the Lease provided that Del Taco would be obligated to repair the improvements upon receipt of the net insurance proceeds. Del Taco’s obligation to repair was not limited to the net insurance proceeds.

Del Taco, as the General Partner, with certain exceptions, had the sole and exclusive right to manage the business of the Partnership. This right included, specifically, the right to operate, construct or sell any personal and real property owned by the Partnership. Due to Unit 218’s historical financial underperformance relative to an average Del Taco unit and Del Taco’s obligation to repair the improvements above and beyond the net insurance proceeds, Del Taco, as the lessee under the Lease and as the operator of Unit 218, had a material financial interest in the disposition of that restaurant. Due to the presence of such material financial interest, it appeared that Del Taco had a conflict of interest in the determination of the ultimate course of action.

Section 5.8.3 of the Partnership Agreement provides that, if the General Partner believes it is unable to resolve a conflict of interest, it is authorized to describe the relevant facts and submit alternatives to the Limited Partners for their vote, who may then vote on the alternatives or choose another alternative.

As such, the General Partner requested a vote on a proposal to sell the land, retain the net insurance proceeds and distribute all such proceeds in a special distribution to the limited partners. If the proposal was not adopted, the General Partner would be required to rebuild and continue operating the unit. Based on an analysis performed by management, the General Partner recommended that the financial interests of the Partnership and the Limited Partners would be best served to sell the land, retain the net insurance proceeds and distribute all such proceeds in a special distribution to the limited partners.

As such, Del Taco filed a definitive proxy statement with the Securities and Exchange Commission on August 29, 2011. The result of such vote was determined in September 2011 and authorized the General Partner to sell the land, retain the net insurance proceeds and distribute all such proceeds in a special distribution to the limited Partners. The property was sold on December 2, 2011 for net sale proceeds of $926,393. In addition to the net sale proceeds, net insurance recovery proceeds for the property and equipment destroyed by the fire totaling $305,327 were received. The Partnership recorded net gain of $545,973. As of December 2, 2011, there were 47,323 limited partner units outstanding in the Partnership. Pursuant to the Partnership Agreement, these limited partners received a special distribution of $26.03 per unit on December 12, 2011 totaling 100% of the total net proceeds of $1,231,720 and the General Partner did not receive any distribution.

The operating results of Unit 218 were not deemed significant to the overall financials to qualify for discontinued operations reporting.