1
Exhibit 99(b)
Financial Statements of Riverview Tower
Limited Partnership as at December 31, 1994 and 1995
2
RIVERVIEW TOWER LIMITED PARTNERSHIP
LIMITED PARTNERSHIP
FINANCIAL STATEMENTS
As At December 31, 1994
3
MALITZ, WEINSTEIN & RUBIN Co.
RIVERVIEW TOWER LIMITED PARTNERSHIP
A LIMITED PARTNERSHIP
December 31, 1994
INDEX
-----
AUDITORS' REPORT
BALANCE SHEET EXHIBIT A
As At December 31, 1994
ANALYSIS OF PARTNERS' EQUITY SCHEDULE A-1
For The Year Ended December 31, 1994
STATEMENT OF OPERATIONS EXHIBIT B
For The Year Ended December 31, 1994
STATEMENT OF CHANGES IN CASH POSITION EXHIBIT C
For The Year Ended December 31, 1994
NOTES TO FINANCIAL STATEMENTS EXHIBIT D
SCHEDULE OF PROPERTY AND EQUIPMENT EXHIBIT E
For The Years Ended December 31, 1992, 1993 and 1994
SCHEDULE OF ACCUMULATED DEPRECIATION AND AMORTIZATION EXHIBIT F
OF PROPERTY AND EQUIPMENT
For The Years Ended December 31, 1992, 1993 and 1994
4
MALITZ, WEINSTEIN & RUBIN CO.
CERTIFIED PUBLIC ACCOUNTANTS
3690 ORANGE PLACE - SUITE 250
CLEVELAND, OHIO 44122-4422
TELEPHONE (216) 464-9560
TELECOPIER (216) 464-2887
[Letterhead]
February 24, 1995
INDEPENDENT AUDITOR'S REPORT
RIVERVIEW TOWER LIMITED PARTNERSHIP
A LIMITED PARTNERSHIP
We have audited the accompanying balance sheet of Riverview Tower Limited
Partnership, A Limited Partnership, as of December 31, 1994, and the related
statements of partners' equity, operations and changes in cash position for the
year then ended. These financial statements and the schedules referred to
below are the responsibility of the Company's management. Our responsibility
is to express an opinion on these financial statements and schedules based on
our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Riverview Tower Limited Part-
nership, A Limited Partnership, as at December 31, 1994, and the results of its
Operations and its cash flows for the year then ended in conformity with
generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The information contained in Exhibits E and F is
presented for purposes of additional analysis and is not a required part of the
basic financial statements. This information has been subjected to the audit-
ing procedures applied in our audit of the basic financial statements and, in
our opinion, is fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
/s/ Malitz, Weinstein & Rubin Co.
5
MALITZ, WEINSTEIN & RUBIN CO . CERTIFIED PUBLIC ACCOUNTANTS . CLEVELAND, OHIO
RIVERVIEW TOWER LIMITED PARTNERSHIP
A LIMITED PARTNERSHIP
BALANCE SHEET Exhibit A
As At December 31, 1994
-----------------------
ASSETS
------
Cash $ 150.
Accounts Receivable 183.
Escrow Receivable 163,377.
Prepaid Expenses 24,248.
Property and Equipment 6,705,077.
Less: Accumulated Depreciation and
Amortization (4,102,470.)
-------------
TOTAL ASSETS
$12,790,565.
============
LIABILITIES AND PARTNERS' EQUITY
--------------------------------
LIABILITIES
Accounts Payable $ 320,001.
Accrued Interest and Real Estate Taxes 360,280.
Security Deposits 2,482.
Mortgage Payable 11,937,438.
-----------
Total Liabilities $12,620,201.
PARTNERS' EQUITY - SCHEDULE A-1 170,364.
------------
TOTAL LIABILITIES AND PARTNERS' EQUITY $12,790,565.
============
SEE ACCOUNTANTS REPORT LETTER AND NOTES TO FINANCIAL STATEMENTS
6
MALITZ, WEINSTEIN & RUBIN CO . CERTIFIED PUBLIC ACCOUNTANTS . CLEVELAND, OHIO
RIVERVIEW TOWER LIMITED PARTNERSHIP
A LIMITED PARTNERSHIP
ANALYSIS OF PARTNERS' EQUITY Schedule A-1
For The Year Ended December 31, 1994
BALANCE NET BALANCE
BEGINNING INCOME ENDING
--------- ------ ------
GENERAL PARTNERS $ (403,183.) $ 283,918. $(119,265.)
LIMITED PARTNERS (2,620,485.) 2,910,114. 289,629.
------------ ------------ ---------
TOTALS $(3,023,668.) $ 3,194,032. $ 170.364.
============ ============ ==========
SEE ACCOUNTANTS REPORT LETTER AND NOTES TO FINANCIAL STATEMENTS
7
MALITZ, WEINSTEIN & RUBIN CO. . CERTIFIED PUBLIC ACCOUNTANTS . CLEVELAND, OHIO
RIVERVIEW TOWER LIMITED PARTNERSHIP
A LIMITED PARTNERSHIP
STATEMENT OF OPERATIONS Exhibit B
For The Year Ended December 31, 1994
INCOME
Rentals $ 4,314,541.
Excess Operating and Tax Charges 2,656,961.
Garage 382,448.
Antenna 142,841.
-----------
Total Income $ 7,496,791.
OPERATING EXPENSES
Custodial and Manager $ 302,628.
Elevator Maintenance 114,630.
Insurance 71,410.
Management Fees 120,000.
Office Expense 67,249.
Professional Fees 43,406.
Repairs and Maintenance 900,374.
Supplies (29,272.)
Taxes - Real Estate 271,360.
Taxes - Other 2,659.
Travel 155.
Utilities 854,087.
General Expenses 4,891.
----------
Total Operating Expenses 2,723,577.
------------
INCOME BEFORE INTEREST EXPENSE, DEPRECIATION
AND AMORTIZATION $ 4,773,214.
LESS: Interest Expense 1,140,730.
------------
INCOME BEFORE DEPRECIATION AND AMORTIZATION $ 3,632,484.
LESS: Depreciation and Amortization 438,452.
------------
NET INCOME FOR THE YEAR $ 3,194,032.
============
SEE ACCOUNTANTS REPORT LETTER AND NOTES TO FINANCIAL STATEMENTS
8
MALITZ, WEINSTEIN & RUBIN CO. . CERTIFIED PUBLIC ACCOUNTANTS . CLEVELAND, OHIO
RIVERVIEW TOWER LIMITED PARTNERSHIP
A LIMITED PARTNERSHIP
STATEMENT OF CHANGES IN CASH POSITION Exhibit C
For The Year Ended December 31, 1994
CASH GENERATED BY OPERATIONS:
Net Income $ 3,194,032.
Depreciation Amortization 438,452.
-----------
Total $ 3,632,484.
CHANGES IN OPERATING ASSETS AND LIABILITIES:
Current Assets - (Increase) Decrease
Receivables $ 323.
Prepaids and Escrows
Current Liabilities - Increase (Decrease) (4,987.)
Accounts Payable (1,772,043.)
Security Deposits 2,482.
Accrued Expenses and Taxes (46,094.)
-----------
Total (1,820,319.)
------------
NET CASH PROVIDED BY OPERATIONS $ 1,812,165.
INVESTING ACTIVITIES -0-
FINANCING ACTIVITIES
Decrease In Debt (1,821,177.)
------------
INCREASE (DECREASE) IN CASH $ (9,012.)
CASH BALANCE - BEGINNING 9,162
------------
CASH BALANCE - ENDING $ 150.
============
SUPPLEMENTAL DISCLOSURE
Cash Paid During The Year For Interest $ 1,112,312.
============
SEE ACCOUNTANTS REPORT LETTER AND NOTES TO FINANCIAL STATEMENTS
9
MALITZ, WEINSTEIN & RUBIN CO. . CERTIFIED PUBLIC ACCOUNTANTS . CLEVELAND, OHIO
RIVERVIEW TOWER LIMITED PARTNERSHIP
A LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS Exhibit D
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
- ----------------------------------------
Accounting Method
-----------------
The Partnership keeps its records and prepares its financial
statements on the accrual basis.
Property and Equipment
----------------------
The fixed assets are recorded at cost and are being depreciated
as follows:
Buildings 40 Years Straight-Line
Building Improvements 40 Years Straight-Line
Equipment and Improvements 10 Years Straight-Line
NOTE 2 - TRANSACTIONS WITH RELATED PARTY
- ----------------------------------------
The property, which is located in Toledo, Ohio is managed by the
Mid America Management Corporation.
Accounts Payable in the amount of $137,244. are due to the
management company.
SEE ACCOUNTANTS REPORT LETTER AND NOTES TO FINANCIAL STATEMENTS
10
MALITZ, WEINSTEIN & RUBIN CO. . CERTIFIED PUBLIC ACCOUNTANTS . CLEVELAND, OHIO
RIVERVIEW TOWER LIMITED PARTNERSHIP
A LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS Exhibit D
(Continued)
NOTE 3 - MORTGAGE PAYABLE
- -------------------------
The land and buildings owned by the Company are encumbered by mortgages
securing two notes; one to New York Life Insurance (due in 1999) and
the other to Realty Refund Trust (due in 1996). One of the limited
partners of the partnership is also Chairman of the Board of Realty
Refund Trust.
The Company has a fixed monthly principal and interest payment of
$74,195. on the first mortgage plus an interest only payment on the
Realty Refund note at 10% per annum. In addition, the Company has
agreed to pay $850,000. against the outstanding amount due on January
1, 1995 and January 1, 1996.
The Company has also agreed to deposit with Realty Refund Trust in
escrow all excess cash flow. The funds will be made available for
tenant improvements or third party leasing commissions. The amount due
for 1994 is $304,291.
NOTE 4 - LEASE AMENDMENT AND EXTENSION
- --------------------------------------
On June 2, 1994, the Company modified its lease with Owens-Corning
Fiberglass Corporation as follows:
The tenant has extended its lease to December 31, 1996 and agreed to a
lease extension fee of $5,000,000. payable June, 1994, January, 1995
and January, 1996. There were also modifications of lease and
operating expense payment terms.
SEE ACCOUNTANTS REPORT LETTER AND NOTES TO FINANCIAL STATEMENTS
11
MALITZ, WEINSTEIN & RUBIN CO. . CERTIFIED PUBLIC ACCOUNTANTS . CLEVELAND, OHIO
RIVERVIEW TOWER LIMITED PARTNERSHIP
A LIMITED PARTNERSHIP
SCHEDULE OF PROPERTY AND EQUIPMENT Exhibit E
For The Years Ended December 31, 1992, 1993 and 1994
1992
----
BALANCE
AT BEGINNING ADDITIONS BALANCE AT END
OF PERIOD AT COST RETIREMENTS OF PERIOD
--------- ------- ----------- ---------
Building $13,771,320. $13,771,320.
Building Improvements 1,473,220. $ 1,473,220.
Equipment 551,143. 551,143.
Land 887,000. 887,000.
----------- ------ ----------- -----------
Total $16,682,683. $ -0- $ -0- $16,682,683.
=========== ======= =========== ===========
1993
----
Building $13,771,320. $13,771,320.
Building Improvements 1,473,220. 1,473,220.
Equipment 551,143. $22,394. 573,537.
Land 887,000. 887,000.
----------- ------- ----------- -----------
Total $16,682,683. $22,394. $ -0- $16,705,077.
=========== ======= =========== ===========
1994
----
Building $13,771,320. $13,771,320.
Building Improvements 1,473,220. 1,473,220.
Equipment 573,537. 573,537.
Land 887,000. 887,000.
------------ ------- ----------- -----------
Total $16,705,077. $ -0- $ -0- $16,705,077.
=========== ======= =========== ===========
SEE ACCOUNTANTS REPORT LETTER AND NOTES TO FINANCIAL STATEMENTS
12
MALITZ, WEINSTEIN & RUBIN CO. . CERTIFIED PUBLIC ACCOUNTANTS . CLEVELAND, OHIO
RIVERVIEW TOWER LIMITED PARTNERSHIP
A LIMITED PARTNERSHIP
SCHEDULE OF ACCUMULATED DEPRECIATION AND AMORTIZATION Exhibit F
OF PROPERTY AND
EQUIPMENT For The Years Ended December 31, 1992, 1993 and 1994
1992
----
BALANCE ADDITIONS
AT BEGINNING CHARGED TO BALANCE AT END
PERIOD COSTS & EXPENSES RETIREMENTS OF PERIOD
------------ ---------------- ----------- --------------
Building $2,233,494. $344,283. $2,567,777.
Building Improvements 231,217. 36,816. 268,033.
Equipment 333,522. 56,234. 389,756.
---------- -------- -------- ----------
Total $2,798,233. $437,333. $ -0- $3,225,566.
========== ======== ======== ==========
1993
----
Building $2,567,777. $344,283. $2,912,060.
Building Improvements 268,033. 36,816. 304,849.
Equipment 389,756. 57,353. 447,109.
---------- -------- -------- ----------
Total $3,225,566. $438,452. $ -0- $3,664,018.
========== ======== ======== ==========
1994
----
Building $2,912,060. $344,283. $3.256,343.
Building Improvements 304,849. 36,816. 341,665.
Equipment 447,109. 57,353. 504,462.
---------- -------- -------- ----------
Total $3,664,018. $438,452. $ -0- $4,102,470.
========== ======== ======== ==========
SEE ACCOUNTANTS REPORT LETTER AND NOTES TO FINANCIAL STATEMENTS
13
THE RIVERVIEW TOWER LIMITED PARTNERSHIP
FINANCIAL REPORT - INCOME TAX BASIS
DECEMBER 31, 1995
14
THE RIVERVIEW TOWER LIMITED PARTNERSHIP
CONTENTS
- -----------------------------------------------------------------------------------
Page
----
AUDITORS' REPORT ON THE FINANCIAL STATEMENTS 1
FINANCIAL STATEMENTS:
Statement of assets, liabilities and partners' deficit - income tax basis 2
Statement of revenues and expenses - income tax basis 3
Statement of partners' deficit - income tax basis 4
Statement of cash flows - income tax basis 5
Notes to financial statements 6-8
15
[LOGO] HAUSSER + TAYLOR
- -------------------------------------------------------------------------------
1400 NORTH POINT TOWER, CLEVELAND OHIO 44114-1152 216/523-1900
FAX: 216/522-1490
Partners
The Riverview Tower Limited Partnership
Cleveland, Ohio
Independent Auditors' Report
----------------------------
We have audited the accompanying statement of assets,
liabilities and partners' deficit income tax basis of The Riverview Tower
Limited Partnership as of December 31, 1995, and the related statements of
revenues and expenses, partners' deficit, and cash flows - income tax
basis for the year then ended. These financial statements are the
responsibility of the Partnership's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally
accepted auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As described in the notes to the financial statements,
the Partnership's policy is to prepare its financial statements on the
accounting basis used for income tax purposes, which is a comprehensive
basis of accounting other than generally accepted accounting principles.
In our opinion, the financial statements referred to
above present fairly, in all material respects, the assets, liabilities,
and partners' deficit of The Riverview Tower Limited Partnership as of
December 31, 1995, and its revenues and expenses, partners' deficit, and
cash flows for the year then ended, on the basis of accounting described
in the Organization and Summary of Significant Accounting Policies.
/s/ Hausser and Taylor
Cleveland, Ohio
February 23, 1996
-1-
BUSINESS ADVISORS AND CERTIFIED PUBLIC ACCOUNTANTS / MEMBERS OF
MOORES ROWLAND INTERNATIONAL
CLEVELAND CANTON COLUMBUS ELYRIA
16
THE RIVERVIEW TOWER LIMITED PARTNERSHIP
STATEMENT OF ASSETS, LIABILITIES AND PARTNERS' DEFICIT -
INCOME TAX BASIS
December 31, 1995
-----------------
ASSETS
- ------
RENTAL PROPERTY
Land $ 887,000
Building and improvements 15,264,693
Equipment 598,257
-----------
Total 16,749,950
Less accumulated depreciation 9,598,758
-----------
Net rental property $ 7,151,192
OTHER ASSETS
Cash 150
Accounts receivable 44,533
Prepaid expenses 22,846
Real estate escrow 149,017
Capital reserve escrow 214,291
-----------
Total other assets 430,837
-----------
$ 7,582,029
===========
LIABILITIES AND PARTNERS' DEFICIT
- --------------------------------
LIABILITIES
Accounts payable $ 148,316
Accrued interest and real estate taxes 365,075
Security deposits 2,482
Mortgage notes payable 10,413,780
-----------
Total liabilities $10,929,653
PARTNERS' DEFICIT (3,347,624)
-----------
$ 7,582,029
===========
The accompanying notes are an integral part of these financial statements.
-2-
17
THE RIVERVIEW TOWER LIMITED PARTNERSHIP
STATEMENT OF REVENUES AND EXPENSES - INCOME TAX BASIS
Year Ended December 31, 1995
----------------------------
REVENUES
Rental income $3,631,044
Garage 390,413
Antenna 154,855
Excess operating and other pass through charges 1,925,473
---------
Total revenues $ 6,101,785
OPERATING EXPENSES
Custodial and manager expenses 180,286
Elevator maintenance 123,746
Insurance 70,302
Management fees 120,000
Office expense and miscellaneous 128,220
Office salaries 55,132
Professional fees 34,623
Repairs and maintenance 743,561
Security expense 22,419
Sellers' fee 90,000
Supplies 36,462
Taxes - payroll 15,726
Taxes - personal property 2,427
Taxes - real estate 286,871
Travel 1,696
Utilities 1,267,731
---------
Total operating expenses 3,179,202
---------
NET OPERATING INCOME 2,922,583
---------
INTEREST EXPENSE 944,283
---------
INCOME BEFORE DEPRECIATION AND AMORTIZATION 1,978,300
---------
DEPRECIATION AND AMORTIZATION 778,933
---------
NET INCOME $ 1,199,367
===========
The accompanying notes are an integral part of these financial statements.
-3-
18
THE RIVERVIEW TOWER LIMITED PARTNERSHIP
STATEMENT OF PARTNERS' DEFICIT - INCOME TAX BASIS
Year Ended December 31, 1995
----------------------------
Balance Net Balance
Beginning Income Distributions Ending
--------- ------ ------------- ------
GENERAL PARTNERS $ (552,055) $ 159,916 $ (392,139)
LIMITED PARTNERS (3,994,936) 1,039,451 (2,955,485)
----------- ----------- -----------
TOTAL $(4,546,991) $ 1,199,367 $ -- $(3,347,624)
=========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements.
-4-
19
THE RIVERVIEW TOWER LIMITED PARTNERSHIP
STATEMENT OF CASH FLOWS - INCOME TAX BASIS
Year Ended December 31, 1995
----------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 1,199,367
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization $ 778,933
Changes in assets and liabilities:
Increase in accounts receivable (44,350)
Decrease in prepaid expenses 1,402
Decrease in escrow receivables (199,931)
Decrease in accounts payable (171,685)
Increase in accrued interest and taxes 4,795
----------
Total adjustments 369,164
-----------
Net cash provided by operating activities 1,568,531
CASH FLOWS FROM INVESTING ACTIVITIES
Building improvements and equipment purchases (44,873)
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on long-term debt (1,523,658)
-----------
NET CHANGE IN CASH -
CASH - BEGINNING OF YEAR 150
-----------
CASH - END OF YEAR $ 150
===========
Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest $ 944,283
The accompanying notes are an integral part of these financial statements.
-5-
20
THE RIVERVIEW TOWER LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
NOTE 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Purpose -- The Riverview Tower Limited Partnership is an Ohio limited
partnership formed for the purpose of owning, leasing and operating
an office building in Toledo, Ohio. The Partnership commenced
operations on July 26, 1985.
B. Basis of Accounting - The Partnership's policy is to prepare its
financial statements on the basis of accounting used for income tax
purposes. This basis of accounting differs from generally
accepted accounting principles primarily as follows:
Assets will be depreciated over a time period shorter than
their estimated useful lives.
C. Concentration Account - An affiliate of the general partner
utilizes a concentration account for the various properties it
manages. In this way excess cash for all properties may be
invested on a short term basis and cash disbursements made on
behalf of each separate partnership are funded when necessary.
D. Property and Improvements - The building and related
improvements are being depreciated on straight-line or
accelerated cost recovery methods over periods dictated by
statutory requirements.
E. Income Taxes - No provision for income taxes is necessary
because any income or loss is includible in the tax returns of
the partners.
F. Adjustments Necessary to Conform with Generally Accepted Accounting
Principles (GAAP) - As stated in the auditors' report and previously
in Note 1 of the Notes to Financial Statements, the Partnership
has used various depreciation and amortization methods which do not
conform to generally accepted accounting principles (GAAP). Had the
Partnership conformed to GAAP the accumulated depreciation and
amortization and partners' capital accounts would be reflected as
follows:
Beginning Ending
----------- -----------
BALANCE SHEET
Accumulated depreciation and $ 4,102,470 $ 4,518,193
amortization =========== ===========
Partners' capital $ 170,364 $ 1,732,941
=========== ===========
STATEMENT OF OPERATIONS
Net income for the year $ 1,562,577
===========
-6-
21
THE RIVERVIEW TOWER LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 2. MORTGAGE NOTES PAYABLE
The land and building owned by the Partnership are encumbered by
mortgages securing two notes; one to New York Life Insurance
(due in 1999) and the other to Realty Refund Trust (due in
1996). One of the limited partners of the Partnership is also
Chairman of the Board of Realty Refund Trust.
The Partnership has a fixed monthly principal and interest
payment of $74,195 on the first mortgage plus an interest only
payment on the Realty Refund note at 10% per annum. In addition,
the Partnership has paid $850,000 against the outstanding amount
due on January 1, 1996.
Principal payments on the mortgage note payable as of December 31,
1995 are as follows:
1996 $ 7,854,792
1997 756,263
1998 803,308
1999 999,417
-----------
Total $10,413,780
===========
The fair value of the Partnership's long-term debt is estimated
based on borrowing rates currently available to the partnership
for bank loans with similar terms and maturities and
approximates the carrying value.
NOTE 3. TRANSACTIONS WITH RELATED PARTY
The property is managed by the Mid-America Management
Corporation. Accounts receivable in the amount of $41,405 are
due from the management company.
The Partnership is obligated to pay a management fee to
Mid-America Management Corporation for certain services with
respect to the operations of the Partnership. The amount of the
fee included in expense for the year ended December 31, 1995 is
$120,000.
NOTE 4. OPERATING LEASES
The Partnership's operating revenue is principally obtained from
tenants through rental payments as provided for under
noncancelable operating leases. The tenant leases typically
provide for fixed minimum rent and reimbursement of real estate
taxes and operating costs.
-7-
22
THE RIVERVIEW TOWER LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 4. OPERATING LEASES (CONTINUED)
The following is a schedule of minimum future rentals on
noncancelable operating leases as of December 31, 1995 for the
next five years:
1996 $ 2,418,850
1997 137,660
1998 42,700
1999 19,540
2000 19,200
-----------
Total $ 2,637,950
===========
NOTE 5. LEASE AMENDMENT AND EXTENSION
On June 2, 1994, the Partnership modified its lease with
Owens-Corning Fiberglas Corporation as follows:
The tenant has extended its lease to December 31, 1996 and
agreed to a lease extension fee of $5,000,000 payable as
follows:
June 1994 $2,000,000
January 1995 1,500,000
January 1996 1,500,000
----------
Total $5,000,000
==========
There were also modifications of lease and operating expense
payment terms.
NOTE 6. SUBSEQUENT EVENTS
The Partnership's principal tenant has not renewed its lease and is
expected to vacate the premises during 1996.
The Partnership has listed the building with a broker and is attempting
to dispose of the property.
-8-
23
[LOGO] Hausser + Taylor
- -------------------------------------------------------------------------------
1400 NORTH POINT TOWER, CLEVELAND, OHIO 44114-1152 216/523-1900
FAX: 216/522-1490
March 20, 1996
Mr. Alan M. Krause
Managing Partner
Riverview Towers Ltd. Partnership
600 Eaton Center
1111 Superior Avenue
Cleveland, Ohio 44114
Dear Mr. Krause:
You have asked us to schedule the amount due Realty Refund Trust re: the
financing agreement with Riverview.
Income Before Depreciation and Amortizafion $ 1,978,300
Building Improvements and Equipment Purchases (44,873)
Reduction of Mortgage Principal (1,523,658)
-----------
Excess Amount Due Realty Refund Trust 409,769
Provision for Federal Income Tax 239,873
-----------
Excess Due Realty Refund Trust $ 169,896
===========
Very truly yours,
HAUSSER + TAYLOR
/s/ Charles P. Malitz
---------------------
Charles P. Malitz
Partner
CPM/js
BUSINESS ADVISORS AND CERTIFIED PUBLIC ACCOUNTANTS
/MEMBERS OF MOORES ROWLAND INTERNATIONAL
CLEVELAND CANTON COLUMBUS ELYRIA