- 18 -
written plan and the party that incurred or committed more than
50 percent of the adjusted basis of the equipped building.
The specific written plan relied on by Payless is the
construction contract between TPS and DiCarlo Construction.
Under that contract TPS not Payless, incurred or committed the
construction costs for Two Pershing Square.
The TRA transitional provisions make no accommodation for
attributing costs incurred by a limited partnership to the
partners for the purpose of determining whether they have
“incurred or committed” costs. Even if such attribution were
proper, we would be unwilling to attribute to Payless more than
16.67 percent of the costs of construction, which was the extent
of Payless’ interest in the TPS, partnership. If 16.67 percent
of the construction costs of $36,600,000 claimed by Payless as
part of its precommitted costs were attributed to Payless, and
assuming we accepted Payless’ total cost of the equipped building
of $77,627,266 and Payless’ other committed costs, Payless’
commitment would amount to substantially less than 50 percent of
the total estimated cost of the equipped building on or before
December 31, 1985.11
11(Ownership interest times cost of Two Pershing Square)
plus tenant allowance plus equipment and furnishings equals
Payless’ pre-1986 committed costs ((.167 x $36,600,000) +
$4,900,000 + $14,812,179 = $25,824,379. $25,824,379/total
estimated costs of $77,627,266 x 100 = 33.3 percent of total
(continued...)
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011