Transactions with General Partner and its Affiliates

6 Months Ended

Jun. 30, 2020

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, 2020, the minimum annual Base Fee and the maximum Expenses reimbursement increased by 1.81% from the prior year, which represents the allowable annual Consumer Price Index adjustment per the PMA. Therefore, as of March 1, 2020, the minimum annual Base Fee paid by the Partnership was raised to $288,300 and the maximum annual Expenses reimbursement was increased to $23,256.

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 six month periods ended June 30, 2020 and 2019 are as follows:

	Incurred for the		Incurred for the		Incurred for the		Incurred for the
	Three Months Ended		Three Months Ended		Six Months Ended		Six Months Ended
	30-Jun-20		30-Jun-19		30-Jun-20		30-Jun-19
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
General Partner
Management fees	$	72,075	$	70,794	$	143,296	$	140,464
Overhead allowance		5,814		5,712		11,560		11,334
Leasing commissions		-		6,453		-		12,906
Reimbursement for out-of-pocket expenses		-		-		2,500		2,500
Cash distribution		787		589		787		589
	$	78,676	$	83,548	$	158,143	$	167,793

At June 30, 2020 and December 31, 2019, $787 and $1,345, respectively, was payable to the General Partner.

As of June 30, 2020, 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 six month periods ended June 30, 2020 and 2019 are as follows:

	Three Month Period ended June 30, 2020		Three Month Period ended June 30, 2019		Six Month Period ended June 30, 2020		Six Month Period ended June 30, 2019
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Advisory Board Fees paid	$	875	$	875	$	1,750	$	1,750

At June 30, 2020 and December 31, 2019 there were no outstanding Advisory Board fees accrued and payable to Jesse Small.