Maguire/Thomas Partners Fifth & Grand, Ltd., Maguire/Thomas Partners Grand Place Tower, Ltd., Tax Matters Partner - Page 5

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               CRA’s plan to rehabilitate the Central Library became a part           
          of the Library Square development project.  We refer to the                 
          parcel of land on which the Central Library is located and four             
          other parcels on which private development was planned as the               
          Library Square tract.  The Library Square tract consists of:  (1)           
          The Library Tower parcel, (2) the Garage Plaza parcel, (3) the              
          Grand Place Tower parcel, (4) the One Bunker Hill parcel, and (5)           
          the Central Library parcel.  These five parcels are contiguous or           
          separated only by public streets or rights of way.                          
               In September 1983, CRA requested proposals under which the             
          City and CRA would sell the Garage Plaza land and the development           
          rights to the Central Library parcel and part of the Central                
          Library parcel to a developer to facilitate development of an               
          adjacent or nearby site.  CRA hoped to finance the rehabilitation           
          of the Central Library through that sale.                                   
               4.   Ownership of the Five Parcels                                     
               During 1984, MTP and CRA negotiated the proposed Library               
          Square development project.  MTP then owned parts of the Library            
          Tower and Grand Place Tower parcels.  An entity related to MTP              
          owned the One Bunker Hill parcel.  The City owned the Central               
          Library and Garage Plaza parcels and part of the Library Tower              
          parcel and the public streets and rights of way to be included in           
          the Library Square tract.  MTP proposed to build an approximately           
          71-floor building on the Library Tower parcel, an approximately             






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