Transactions with General Partner and its Affiliates

9 Months Ended

Sep. 30, 2019

Related Party Transactions [Abstract]

Transactions with General Partner and its Affiliates

5. 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, 2019, 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 Expenses reimbursement are subject to annual Consumer Price Index based adjustments. Effective March 1, 2019, the minimum annual Base Fee and the maximum Expenses reimbursement increased by 2.44% from the prior year, which represents the allowable annual Consumer Price Index adjustment per the PMA. Therefore, as of March 1, 2019, the minimum annual Base Fee paid by the Partnership was raised to $283,176 and the maximum annual Expenses reimbursement was increased to $22,848.

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. The fee received by the General Partner from the Partnership on any amounts recovered reduce the four percent minimum 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, 2019 and 2018 are as follows:

	Incurred for the		Incurred for the		Incurred for the		Incurred for the
	Three Months Ended September 30, 2019		Three Months Ended September 30, 2018		Nine Months Ended September 30, 2019		Nine Months Ended September 30, 2018
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
General Partner
Management fees	$	70,794	$	69,108	$	211,258	$	206,364
Overhead allowance		5,712		5,577		17,046		16,653
Leasing commissions		-		-		12,906		-
Reimbursement for out-of-pocket expenses		-		-		2,500		2,500
Cash distribution		1,211		153		1,800		453
	$	77,717	$	74,838	$	245,510	$	225,970

At September 30, 2019 and December 31, 2018, $1,211 and $998, respectively, was payable to the General Partner.

As of September 30, 2019, Jesse Small, an Advisory Board Member, beneficially owned greater than ten percent of the Partnership’s outstanding limited partnership interests. Amounts paid to Mr. Small for his services as a member of the Advisory Board for the three- and nine-month periods ended September 30, 2019 and 2018 are as follows:

	Three Month Period ended September 30, 2019		Three Month Period ended September 30, 2018		Nine Month Period ended September 30, 2019		Nine Month Period ended September 30, 2018
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Advisory Board Fees paid	$	875	$	875	$	2,625	$	2,625