Transactions with General Partner and its Affiliates

9 Months Ended

Sep. 30, 2016

Related Party Transactions [Abstract]

Transactions with General Partner and its Affiliates

6. TRANSACTIONS WITH GENERAL PARTNER AND ITS AFFILIATES:

Pursuant to the terms of the Permanent Manager Agreement (“PMA”) executed in 1993 and renewed for an additional two year term as of January 1, 2015, the General Partner receives a base fee (the “Base Fee”) for managing the Partnership equal to four percent of gross receipts, subject initially to a minimum annual Base Fee. The PMA also provides that the Partnership is responsible for reimbursement of the General Partner for office rent and related office overhead (“Expenses”) up to an initial annual maximum of $13,250. Both the Base Fee and Expense reimbursement are subject to annual Consumer Price Index based adjustments. Effective March 1, 2016, the minimum annual Base Fee and the maximum Expenses reimbursement increased by 0.12% from the prior year, which represents the allowable annual Consumer Price Index adjustment per the PMA. Therefore, as of March 1, 2016, the minimum annual Base Fee paid by the Partnership was raised to $267,300 and the maximum annual Expenses reimbursement was increased to $21,564.

For purposes of computing the four percent overall fee paid to the General Partner, gross receipts include amounts recovered in connection with the misappropriation of assets by the former general partners and their affiliates. Through the quarter ended September 30, 2016, in total the General Partner had received fees from the Partnership totaling $59,729 on the amounts recovered. The fee received from the Partnership on the amounts recovered reduces the minimum monthly Base Fee by that same amount.

Amounts paid and/or accrued to the General Partner and its affiliates for the three and nine month periods ended September 30, 2016 and 2015 are as follows:

	Three Month		Three Month		Nine month		Nine month
	Period ended		Period ended		Period ended		Period ended
	September 30, 2016		September 30, 2015		September 30, 2016		September 30, 2015
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
General Partner
Management fees	$	66,825	$	66,744	$	200,421	$	199,522
Overhead allowance		5,391		5,385		16,169		16,097
Other outsourced administrative fees		0		0		0		1,088
Reimbursement for out-of-pocket expenses		0		0		2,500		2,500
Sales and Leasing Commissions		9,099		0		9,099		0
Cash distribution due to partner		1,252		1,146		1,764		1,681
	$	82,567	$	73,575	$	229,953	$	220,888

At September 30, 2016 and December 31, 2015, $1,252 and $1,416, respectively, was payable to the General Partner.

As of September 30, 2016 and December 31, 2015, TPG Finance Corp. owned 200 limited partnership interests of the Partnership. The President of the General Partner, Bruce A. Provo, is also the President of TPG Finance Corp., but he is not a shareholder of TPG Finance Corp.

As of September 30, 2016, the General Partner did not own any limited partnership interests in the Partnership. The following table identifies the beneficial ownership of Mr. Provo, who, controls the General Partner, and performs the functions of the Partnership’s principal executive officer. Mr. Provo is the only person performing the function of an executive officer of the Partnership that beneficially owns any limited partnership interests.

Title of Class	Name of Beneficial Owner(1)	Amount and Nature of Beneficial Ownership			Percentage of Class Outstanding(3)
Limited Partnership Interest	Bruce A. Provo		200	(2)		0.43	%

(1)	A beneficial owner of a security includes a person who, directly or indirectly, has or shares voting or investment power with respect to such security. Voting power is the power to vote or direct the voting of the security and investment power is the power to dispose or direct the disposition of the security.
(2)	Bruce A. Provo is deemed to have beneficial ownership of all of TPG Finance Corp.’s limited partnership interests in the Partnership due to his control as President of TPG Finance Corp.
(3)	Based on 46,280.3 limited partnership interests outstanding as of September 30, 2016.