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From approximately 1979 until the date of trial, Morton
Silver (Mr. Silver) has owned and functioned as president of Orda
Management. Apparently, from its organization in 1954,
Mr. Silver also has owned ownership units in the FC Partnership.
From at least 1954 through 1981, space in the Partnership
Properties was generally leased out for light manufacturing and
industrial purposes.
By 1981, the two buildings located on the Partnership
Properties were old and in poor condition, and they did not
command lease rates as high as other typical secondary office
space in Midtown South. In 1981, the FC Partnership realized net
income of approximately $300,000 from rental of the Partnership
Properties.
In 1981, the City University of New York (CUNY) agreed to
lease four floors of the Partnership Properties consisting of
approximately 88,000 square feet for office and classroom space.
CUNY's lease, for a term of 10 years, was to begin in the summer
of 1982 and was due to expire in the spring of 1992. As part of
the lease agreement with CUNY, the FC Partnership agreed to
renovate the lobbies of the two buildings and the four floors to
be leased by CUNY and recouped portions of these capital
expenditures through the annual lease charges to CUNY.
In January of 1982, a capital contribution of $4,895,833 was
made to the FC Partnership by Silver-Park Co. (Silver Park), a
New York limited partnership of which Mr. Silver was the general
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