Maguire/Thomas Partners Fifth & Grand, Ltd., Maguire/Thomas Partners Grand Place Tower, Ltd., Tax Matters Partner - Page 12

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          Library parcel and any future owners until released by the City             
          Council and CRA.  Under the Cooperation Agreement, the City also            
          agreed to record a covenant running with the land for the benefit           
          of the City against the Central Library parcel which met the                
          requirements of the MTP Designated Building Site Application and            
          Ordinance No. 159802.7                                                      
               3.   The MTP Designated Building Site                                  
               The City enacted Ordinance No. 159802 on April 30, 1985.               
          Ordinance No. 159802 defines a “designated building site” as an             
          area of real property, located within the CBD and/or BH Plan                
          area, which consists of parcels that are contiguous or separated            
          only by public streets or rights of way, and which is designated            
          by the City Council to implement the preservation of a City-owned           
          and operated historic structure.  This ordinance permitted parts            
          of the designated building site to be owned by different parties,           
          and it required an application for such designated building site            
          to be filed with the City Planning Commission.                              
               CRA and MTP filed the MTP Designated Building Site                     
          Application with the City Planning Commission.  In the                      
          application, they requested that the five Library Square parcels            
          be designated as a building site under Ordinance No. 159802.  The           
          application described the development that would be permitted on            


               7 That covenant and related covenants executed by MTP’s                
          successors and a related entity against the four other Library              
          Square parcels are discussed below pp. 12-13.                               




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