19950 Federal Register / Vol. 63, No. 77 /Wednesday, April 22, 1998 / Notices

Comments and/or suggestions

regarding the item(s) contained in this

notice, especially regarding the

estimated public burden and associated

response time should be directed to

Barbara Allen-Hagen (phone number

and address listed below). If you have

additional comments, suggestions, or

need a copy of the proposed information

collection instrument with instructions,

or additional information, please

contact Barbara Allen-Hagen, (202) 307–

1308, Office of Juvenile Justice and

Delinquency Prevention, 810 7th Street,

NW, Room 8241, Washington, DC

20531.

Overview of this information

collection:

(1) Type of information collection:

New collection.

(2) The title of the form/collection:

Performance Measures Data Collection

Forms.

(3) The agency form number, if any,

and the applicable component of the

Department sponsoring the collection.

Forms: PM–1 Primary Facility Form,

PM–2 Staff Interview, PM–3 Juvenile

Interview, PM–4 Incident Report, PM–5

Staff Record, PM–6 Juvenile Record.

Sponsoring Department: Office of

Juvenile Justice and Delinquency

Prevention, Office of Justice Programs,

United States Department of Justice.

(4) Affected public who will be asked

or required to respond, as well as a brief

abstract: Primary: Public and Private

Juvenile Confinement Facilities. Other:

None. This collection will gather

information necessary to determine how

juvenile confinement facilities

operationalize their stated policies,

deliver services, and collect and

maintain data. Additionally, the

collection will help identify the extent

to which facilities achieve performance

standards in the areas of order, safety,

security, programming, health and

mental health, and justice. Based on the

findings expert consultants will

collaborate with facility directors to

develop improvement plans.

(5) An estimate of the total number of

respondents and the amount of time

estimated for an average respondent to

respond: 5,490 respondents with an

average 20 minutes per response for

juveniles and staff and an average 21

hours per response for facility

coordinators.

(6) An estimate of the total public

burden (in hours) associated with the

collection: 123 annual burden hours.

If additional information is required

contact: Mr. Robert B. Briggs, Clearance

Officer, United States Department of

Justice, Information Management and

Security Staff, Justice Management

Division, Suite 850, Washington Center,

1001 G Street, NW Washington, DC

20530.

Dated: April 16, 1998.

Robert B. Briggs,

Department Clearance Officer, United States

Department of Justice.

[FR Doc. 98–10585 Filed 4–21–98; 8:45 am]

BILLING CODE 4410–01–M

DEPARTMENT OF LABOR

Pension and Welfare Benefits

Administration

[Application No. D–10524, et al.]

Proposed Exemptions; Jack Mayesh

Wholesale Florist, Inc.

AGENCY: Pension and Welfare Benefits

Administration, Labor.

ACTION: Notice of proposed exemptions.

SUMMARY: This document contains

notices of pendency before the

Department of Labor (the Department) of

proposed exemptions from certain of the

prohibited transaction restrictions of the

Employee Retirement Income Security

Act of 1974 (the Act) and/or the Internal

Revenue Code of 1986 (the Code).

Written Comments and Hearing

Requests

All interested persons are invited to

submit written comments or request for

a hearing on the pending exemptions,

unless otherwise stated in the Notice of

Proposed Exemption, within 45 days

from the date of publication of this

Federal Register Notice. Comments and

requests for a hearing should state: (1)

The name, address, and telephone

number of the person making the

comment or request, and (2) the nature

of the person’s interest in the exemption

and the manner in which the person

would be adversely affected by the

exemption. A request for a hearing must

also state the issues to be addressed and

include a general description of the

evidence to be presented at the hearing.

ADDRESSES: All written comments and

request for a hearing (at least three

copies) should be sent to the Pension

and Welfare Benefits Administration,

Office of Exemption Determinations,

Room N–5649, U.S. Department of

Labor, 200 Constitution Avenue, N.W.,

Washington, D.C. 20210. Attention:

Application No. lll, stated in each

Notice of Proposed Exemption. The

applications for exemption and the

comments received will be available for

public inspection in the Public

Documents Room of Pension and

Welfare Benefits Administration, U.S.

Department of Labor, Room N–5507,

200 Constitution Avenue, N.W.,

Washington, D.C. 20210.

Notice to Interested Persons

Notice of the proposed exemptions

will be provided to all interested

persons in the manner agreed upon by

the applicant and the Department

within 15 days of the date of publication

in the Federal Register. Such notice

shall include a copy of the notice of

proposed exemption as published in the

Federal Register and shall inform

interested persons of their right to

comment and to request a hearing

(where appropriate).

SUPPLEMENTARY INFORMATION: The

proposed exemptions were requested in

applications filed pursuant to section

408(a) of the Act and/or section

4975(c)(2) of the Code, and in

accordance with procedures set forth in

29 CFR Part 2570, Subpart B (55 FR

32836, 32847, August 10, 1990).

Effective December 31, 1978, section

102 of Reorganization Plan No. 4 of

1978 (43 FR 47713, October 17, 1978)

transferred the authority of the Secretary

of the Treasury to issue exemptions of

the type requested to the Secretary of

Labor. Therefore, these notices of

proposed exemption are issued solely

by the Department.

The applications contain

representations with regard to the

proposed exemptions which are

summarized below. Interested persons

are referred to the applications on file

with the Department for a complete

statement of the facts and

representations.

Jack Mayesh Wholesale Florist, Inc.,

Profit Sharing Plan (the Plan), Located

in Los Angeles, California

[Application No. D–10524]

Proposed Exemption

The Department is considering

granting an exemption under the

authority of section 408(a) of the Act

and section 4975(c)(2) of the Code and

in accordance with the procedures set

forth in 29 CFR Part 2570, Subpart B (55

FR 32836, 32847, August 10, 1990). If

the exemption is granted, the

restrictions of sections 406(a), 406 (b)(1)

and (b)(2) of the Act and the sanctions

resulting from the application of section

4975 of the Code, by reason of section

4975(c)(1) (A) through (E) of the Code,

shall not apply to the proposed sale by

the Plan of certain unimproved real

property (the Property) to Roy Dahlson,

a party in interest with respect to the

Plan, provided that the following

conditions are satisfied: (1) the sale is a

one-time transaction for cash; (2) the

Plan pays no commissions nor other
Federal Register / Vol. 63, No. 77 /Wednesday, April 22, 1998 / Notices 19951

1The Department expresses no opinion herein as

to whether the acquisition and holding of the

Property by the Plan violated any of the provisions

of Part 4 of Title I in the Act. However, the

Department notes that section 404(a) of the Act

requires, among other things, that a plan fiduciary

act prudently and solely in the interest of the plan

and its participants and beneficiaries when making

investment decisions on behalf of the plan.

expenses relating to the sale; and (3) the

Plan receives an amount which is the

greater of either (a) the fair market value

of the Property as of the date of the sale,

as determined by a qualified,

independent appraiser, or (b) the

original acquisition cost of the Property

to the Plan, plus lost opportunity costs

attributable to the Property.

Summary of Facts and Representations

1. The Plan is a defined contribution

plan sponsored by Jack Mayesh

Wholesale Florist, Inc. (the Employer)

and has approximately 58 participants.

Mr. Dahlson is an owner of the

Employer and one of the trustees of the

Plan. The assets of the Plan, and of the

Money Purchase Plan also sponsored by

the Employer, are held in a combined

trust. As of December 31, 1996, the fair

market value of the assets of both plans

was $1,062,124.34.

2. The Property consists of two

adjoining parcels of unimproved real

property located at Sunland Blvd., Los

Angeles, California (mail address at

12901 Harding St., Sylmar, California).

The two parcels are known as Parcel #

2544–010–002 (Lot 2) and Parcel #

2544–101–003 (Lot 3). Lot 2 consists of

an area of 37,900 sq. ft., while Lot 3

consists of an area of approximately

50,530 sq. ft. The other parcels adjacent

to Lot 2 and Lot 3 are owned by persons

unrelated to the Plan, the Employer, and

Mr. Dahlson.

3. The Property was acquired by the

Plan from Shadow Hills Development

Corp., an unrelated party, in March,

1993, for a total purchase price of

$101,808. The purchase was paid by the

Plan in four installments, as follows.

Date of payment Amount

paid

1. March 12, 1993 .................... $25,000.00

2. August 27, 1993 ................... 6,808.38

3. March 5, 1994 ...................... 20,000.00

4. September 14, 1994 ............. 50,000.00

101,808.38

The applicant represents that all

expenses relating to the Property since

its acquisition by the Plan, including

taxes, insurance, and fees, have been

paid by Mr. Dahlson. However, the

applicant states that the Property has

not been leased to, nor used by, any

party in interest with respect to the

Plan, at any time since its acquisition by

the Plan. The Property has produced no

income for the Plan.1

4. The applicant has obtained two

appraisals of the Property by qualified,

independent appraisers, both certified

in the State of California. The first

appraiser, William G. Dyess, relying on

the market approach to valuation,

concluded that the fair market value of

the Property (both parcels combined)

was $44,000, as of June 8, 1997 (the

Dyess Appraisal). The second appraiser,

Terry T. Komatsu, of Suburban

Appraisal Service, also relying on the

market approach, estimated that the fair

market value of the Property (both

parcels combined) was $30,000, as of

July 7, 1997 (the Komatsu Appraisal).

Each appraiser examined three recent

sales of comparable properties in the

local real estate area in making his

determination of the fair market value of

the Property. The zoning of the Property

is Ra–1&K—Residential/agricultural.

The Dyess Appraisal noted that Lot 2,

which has street frontage on Sunland

Blvd., is land that rises up sharply from

the street and has value only to an

adjoining lot. The Komatsu Appraisal

noted that Lot 3 has no street frontage

or other direct access from the street

except through other parcels. Thus, by

itself, it would have no apparent value

unless vehicular ingress/egress

easements could be obtained from

adjoining parcels.

5. The applicant represents that the

Plan has attempted to sell the Property

on the open market for several years,

without success. Mr. Dahlson therefore

proposes to purchase the Property from

the Plan for an amount which is the

greater of either (a) the fair market value

of the Property as of the date of the sale,

based on an updated independent

appraisal, or (b) the original acquisition

cost of the Property to the Plan, plus lost

opportunity costs attributable to the

Property. Since the Property has

declined in value, based on the

conclusions of the Dyess Appraisal and

the Komatsu Appraisal, Mr. Dahlson

will pay the Plan the latter amount.

Specifically, Mr. Dahlson will pay the

Plan a total purchase price of

$145,922.64, which amount includes

the Plan’s original acquisition cost of

$101,803.38, as well as lost opportunity

costs calculated at a rate of 9%,

compounded annually, or $44,114.27.

As stated above, the Plan paid for the

Property in four installments, and the

appropriate purchase price to be paid by

Mr. Dahlson was determined as follows.

Date of payment Amount

paid

Interest

compounded

annually at

9% through

4/30/98

March 12, 1993 ....................................................................................................................... $25,000.00 $13,898.34

August 27, 1993 ...................................................................................................................... 6,808.38 3,378.84

March 5, 1994 ......................................................................................................................... 20,000.00 8,443.37

September 14, 1994 ................................................................................................................ 50,000.00 18,393.72

101,808.38 + 44,114.27 = $145,922.64

The Plan will pay no commissions

nor other expenses relating to the sale.

The applicant represents that the

exemption will be in the best interests

of the Plan because Mr. Dahlson is

willing to pay more than the Plan could

receive for the Property on the open

market based on the current fair market

value of the Property. In addition, the

sale will convert a non-income

producing, illiquid asset that continues

to decline in value into more liquid

assets that will achieve a higher rate of

return for the Plan. All costs relating to

this exemption application are being

borne by the Employer.

6. In summary, the applicant

represents that the proposed transaction

satisfies the statutory criteria for an

exemption under section 408(a) of the

Act for the following reasons: (1) the

sale will be a one-time transaction for

cash; (2) the Plan will pay no

commissions nor other expenses

relating to the sale; (3) the Plan will

receive an amount which is the greater
19952 Federal Register / Vol. 63, No. 77 /Wednesday, April 22, 1998 / Notices

2Pursuant to CFR 2510.3–2(d), the Department

has no jurisdiction with respect to the IRA under

Title I of the Act. However, there is jurisdiction

under Title II of the Act pursuant to section 4975

of the Code.

3The Trust is not an employee benefit plan or

other plan subject to the provisions of the Act or

the Code.

4 In this regard, section 4975(e)(2)(G) of the Code

states, in relevant part, that a ‘‘disqualified person’’

includes a trust of which (or in which) 50 percent

or more of the beneficial interest of such trust is

owned, or held by, a person who is a fiduciary of

a plan.

of either (a) the fair market value of the

Property as of the date of the sale, as

determined by a qualified, independent

appraiser, or (b) the original acquisition

cost of the Property to the Plan, plus lost

opportunity costs attributable to the

Property; and (4) the sale will divest the

Plan of a non-income producing,

illiquid asset that continues to decline

in value and will allow the Plan to

reinvest the sale proceeds in assets that

will achieve a higher rate of return.

FOR FURTHER INFORMATION CONTACT: Ms.

Karin Weng of the Department,

telephone (202) 219–8881. (This is not

a toll-free number.)

James E. Jordan, Sr. Individual

Retirement Account (the IRA) Located

in Phoenix, Arizona

[Application No. D–10550]

Proposed Exemption

The Department is considering

granting an exemption under the

authority of section 4975(c)(2) of the

Code and in accordance with the

procedures set forth in 29 C.F.R. Part

2570, Subpart B (55 FR 32836, 32847,

August 10, 1990.) If the exemption is

granted, the sanctions resulting from the

application of section 4975 of the Code,

by reason of section 4975(c)(1)(A)

through (E) of the Code, shall not apply

to the proposed cash purchase by the

IRA of a certain promissory note issued

by unrelated parties (the Martin Note)

which is secured by a first mortgage on

certain residential property (the

Property) from the James E. Jordan

Revocable Trust Agreement (the Trust),

a disqualified person with respect to the

IRA; 2 provided that the following

conditions are met:

1. The purchase of the Martin Note

will be a one-time cash transaction;

2. The IRA will pay no commissions

or other expenses associated with the

purchase;

3. The amount paid by the IRA for the

Martin Note will be the lesser of (i)

$63,108.97, which is the current fair

market value of the Martin Note as

determined by an independent,

qualified appraiser, or (ii) the fair

market value of the Martin Note, as

determined at the time of the purchase

by an independent, qualified appraiser;

4. Both the amount paid by the IRA

for the Martin Note and the outstanding

principal balance on such Note will

involve less than 25% of the IRA’s total

assets;

5. Mr. Jordan, as the sole participant

of the IRA, will be the only individual

affected by the proposed transaction;

and

6. On the date the IRA purchases the

Martin Note from the Trust, the IRA will

be named as loss payee under the

homeowners insurance policy on the

Property.

Summary of Facts and Representations

1. The IRA is a self-directed

individual retirement account. The

current custodian for the IRA is Fidelity

National Bank located in Atlanta,

Georgia. James E. Jordan, Sr. (Mr.

Jordan) is the sole participant, a

fiduciary and the owner of the IRA. As

of January 31, 1998, the fair market

value of the IRA’s assets was

$324,240.87. Thus, the proposed

purchase of the Martin Note would

involve approximately 19 percent (19%)

of the IRA’s assets.

Both the amount paid by the IRA for

the Martin Note and the outstanding

principal balance on such Note will

involve less than 25% of the IRA’s total

assets.

2. The Trust is the Jordan Revocable

Trust Agreement dated August 18,

1993.3 The trustees of the Trust are Mr.

Jordan and Sheree G. D’Amico. Mr.

Jordan is also the grantor and the

primary beneficial owner of the Trust.

The Trust was created by Mr. Jordan as

a will substitute for the purpose of

implementing Mr. Jordan’s estate plan.

During his lifetime, Mr. Jordan is the

primary beneficiary, and after his death,

the beneficiaries will be Sheree G.

D’Amico, Lori D. Jordan, James E.

Jordan Jr. and Jay Jordan. The Trust is

considered a disqualified person, as

defined in section 4975(e)(2) of the

Code, due to Mr. Jordan’s relationship to

both the IRA and the Trust.4

3. The Martin Note is currently

between the Trust, as the original

lender, and John William Martin and

Andreina Martin (the Martins), as the

original borrowers. The Martin Note and

the accompanying mortgage were

created as seller financing when Mr.

Jordan sold an investment property to

the Martins to be used as their primary

residence. It is represented that the

Martins have no other relationship to

Mr. Jordan, the Trust and the IRA.

4. The Martin Note was appraised

March 12, 1998, by F. Gregory Rhodes

(Mr. Rhodes), an independent qualified

appraiser with the Valuation Advisory

Group, Inc. (the Appraisal) in Atlanta,

Georgia. The Appraisal stated that the

original amount of the Martin Note,

dated December 28, 1994, was $66,000.

The Martin Note has a fixed interest rate

of 8.75% per annum until maturity. The

Martin Note has a 30-year term and is

scheduled to mature in December, 2024.

However, the Martin Note is subject to

prepayment by the Martins prior to

maturity. The terms of the Martin Note

call for monthly payments of principal

and interest, beginning January 29,

1995, equal to $519.23, with a final

payment of $268.89 at maturity.

The Martin Note is secured by a first

mortgage on a residence located in

Volusia County, Florida (the Property).

A recent appraisal of the Property was

performed by Michael F. Beckman (Mr.

Beckman) of Family Realty of Central

Florida, Inc., which stated that the value

of the Property is between $72,000 and

$74,000. In determining the fair market

value of the Martin Note, Mr. Rhodes

reviewed Mr. Beckman’s appraisal of

the Property. Mr. Rhodes states that this

appraisal of the Property indicates that

the outstanding principal amount of the

Martin Note is adequately secured by

the Property.

5. With respect to the fair market

value of the Martin Note, the Appraisal

considered the following factors:

(a) The Martin Note is secured by a

first mortgage on the Property;

(b) appraisal of the underlying

property indicates that the Martin Note

is adequately secured;

(c) from the 1994 execution of the

Martin Note, it appears that all

payments have been made in

accordance with the terms of such Note;

and

(d) there is a lack of marketability for

the Martin Note.

The Appraisal states that because no

organized market exists for an

instrument of this sort, a typical buyer

of the Martin Note would demand a rate

of return in excess of what would be

available for fixed income securities of

comparable duration in the public

marketplace at the time of the

transaction. Therefore, the Appraisal

applies an appropriate discount rate to

the remaining stream of payments of

principal and interest on the Martin

Note to arrive at a required yield of

8.86% per annum to account for the

inherent lack of marketability of the

Martin Note. Therefore, based on this

analysis, the Appraisal concluded that

the fair market value of the Martin Note

was approximately $63,108.97 as of

March 12, 1998.
Federal Register / Vol. 63, No. 77 /Wednesday, April 22, 1998 / Notices 19953

6. The applicant represents that the

proposed transaction presents a

desirable investment opportunity for the

IRA. For reasons discussed above, the

appraiser discounts (the Discount) the

Martin Note. This Discount of the Note

in effect produces an enhanced yield to

the IRA. The transaction will be a onetime cash purchase by the IRA. The

amount paid by the IRA for the Martin

Note will be the lesser of (i) $63,108.97,

which is the current fair market value of

the Martin Note as determined by an

independent, qualified appraiser, or (ii)

the fair market value of the Martin Note,

as determined at the time of the

purchase by an independent, qualified

appraiser. The IRA will not bear any

commissions or expenses associated

with the transaction.

In addition, the applicant represents

that the acquisition of the Martin Note

will be consistent with the liquidity

needs and investment objectives of the

IRA, which is currently heavily invested

in equities. The interests of the IRA will

be protected because the Note is

adequately secured by the first mortgage

on the Property. In a letter of February

12, 1998, Fidelity National Bank, the

IRA custodian, stated that it would

retain the Property as an IRA asset in

the event the IRA forecloses on the

Property. Furthermore, the applicant

states that on the date the IRA purchases

the Martin Note, the IRA will be named

as the loss payee under the homeowners

insurance policy on the Property. Thus,

if the IRA becomes the owner of the

Property, the IRA’s investment interests

will be protected in the event that

payments are made to the loss payee on

this insurance policy.

7. In summary, the applicant

represents that the transaction satisfies

the statutory criteria of section

4975(c)(2) of the Code because:

a. The purchase of the Martin Note

will be a one-time cash transaction;

b. The IRA will pay no commissions

or other expenses associated with the

purchase;

c. The amount paid by the IRA for the

Martin Note will be the lesser of (i)

$63,108.97, which is the current fair

market value of the Martin Note as

determined by an independent,

qualified appraiser, or (ii) the fair

market value of the Martin Note, as

determined at the time of the purchase

by an independent, qualified appraiser;

d. Both the amount paid by the IRA

for the Martin Note and the outstanding

principal balance on such Note will

involve less than 25% of the IRA’s total

assets;

e. On the date the IRA purchases the

Martin Note, the IRA will be named as

loss payee under the homeowners

insurance policy on the Property; and

f. Mr. Jordan, as the sole participant

of the IRA, will be the only individual

affected by the proposed transaction.

Notice to Interested Persons

Because Mr. Jordan is the sole

participant of the IRA, it has been

determined that there is no need to

distribute this notice of proposed

exemption to interested persons.

Comments and requests for a hearing are

due 30 days from the date of publication

of this notice in the Federal Register.

FOR FURTHER INFORMATION CONTACT:

Ekaterina A. Uzlyan of the Department

at (202) 219–8883. (This is not a toll-free

number.)

Pipefitters Local Union No. 537 Pension

Fund (the Plan) Located in Boston,

Massachusetts

[Application No. D–10577]

Proposed Exemption

The Department of Labor is

considering granting an exemption

under the authority of section 408(a) of

the Act and section 4975(c)(2) of the

Code and in accordance with the

procedures set forth in 29 CFR Part

2570, Subpart B (55 FR 32836, 32847,

August 10, 1990). If the exemption is

granted, the restrictions of sections

406(a) and 406(b)(1) and (b)(2) of the

Act and the sanctions resulting from the

application of section 4975 of the Code,

by reason of section 4975(c)(1)(A)

through (E) of the Code, shall not apply

to the sale (the Sale) of certain real

property (the Property) to the Plan by

Local Union 537 (the Union) of the

United Association of Journeymen and

Apprentices of the Plumbing and

Pipefitting Industry of the United States

and Canada, a party in interest with

respect to the Plan; provided the

following conditions are satisfied:

(A) The terms and conditions of the

transaction are no less favorable to the

Plan than those which the Plan would

receive in an arm’s-length transaction

with an unrelated party;

(B) The Sale is a one-time transaction

for cash;

(C) The Plan incurs no expenses from

the Sale;

(D) The Plan pays as consideration for

the Property no more than the fair

market value of the Property as

determined by a qualified, independent

appraiser on the date of the Sale; and

(E) The independent fiduciary for the

Plan will undertake to monitor and

enforce the terms of the proposed

exemption, if granted.

Summary of Facts and Representations

1. Two employer associations

represent the contributing employers to

the Plan and serve as their collective

bargaining agents with the Union. These

two associations are the Air

Conditioning and Refrigeration

Contractors of Boston, Inc. (ARCA) and

the New England Mechanical

Contractors Association, Inc. (NEMCA).

ARCA represents employers in eastern

Massachusetts and surrounding areas

who erect, install, and service all types

of food cases, refrigeration, and air

conditioning equipment. NEMCA

represents employers throughout most

of New England who erect, service, and

install and maintain all types of heating,

pipe laying, piping, refrigeration and air

conditioning systems and equipment.

The Union is the sole collective

bargaining agency for employees

covered by applicable collective

bargaining agreements who are

employed by members of ARCA and

NEMCA.

2. The Plan is a jointly administered

Taft-Hartley trust fund established

pursuant section 302(c)(5) of the Labor

Management Relations Act that

maintains a defined benefit plan which

is intended to qualify under section

401(a) of the Code. The Plan is for

employees covered by collective

bargaining agreements between the

participating employers and the Union,

and for certain employees of the Plan

and the Union.

The Plan is administered by a six

member Board of Trustees (the Trustees)

of whom three members are appointed

by the two employers’ associations,

ARCA and NEMCA, and three members

are appointed by the Union. The

Trustees of the Plan, who have

investment discretion over the assets of

the Plan, are represented by the

applicant to include Messrs. Leo Reed,

Charles L. Grinnell, and Ron Ledoux,

who were appointed by the employers

associations and Messrs. Michael

Benullo, President of the Union, Robert

O’Toole, Business Manager of the

Union, and Thomas MacKay, Business

for the Union, who are appointed by the

Union.

The applicant represents that, as of

January 30, 1998, the Plan had

approximately total assets of

$237,300,000, and approximately 1990

participants.

3. The Property is a condominium

unit, designated as Unit 1, consisting of

2,536 square feet of floor area located in

the lower (basement) level of a two story

office building, with a non-exclusive

right to use parking spaces at the site

location. The Property is 47.5 percent of
19954 Federal Register / Vol. 63, No. 77 /Wednesday, April 22, 1998 / Notices

5The applicant represents that it is contemplated

that the Pipefitters Local Union No. 537 Health and

Welfare Fund and the Pipefitters Local Union No.

537 Deferred Income Annuity Fund will occupy a

portion of the Property; and these two Funds will

share space and reimburse the Plan for reasonable

costs and expenses in accordance PTE 76–1 and

PTE 77–10 (41 FR 12740, March 26, 1976 and 42

FR 33918, respectively). The Department expresses

no opinion herein as to whether or not the

occupancy of a portion of the Property by the two

Funds as described satisfies the terms and

conditions of PTE 76–1 and PTE 77–10.

the total condominium area in the office

building, and the remaining

condominium area in the office

building, designated as Unit 2, is

occupied and used by the Union, the

owner of the office building since

December 17, 1996. The office building

has approximately 6,560 square feet of

gross building area situated on a 21,090

square foot parcel of land located at 35

Travis Street, Boston (Allston),

Massachusetts.

The Property was appraised by Peter

L. Lane, Certified Gen. R. E. Appraiser,

with the Robert P. Wood & Co., Inc.,

located in Milton, Massachusetts, who

determined that the Property had a fair

market value of $151,000, as of

November 28, 1997.

4. The Union proposes to sell the

Property to the Plan for cash in a onetime transaction with no expenses

incurred by the Plan. The applicant

represents that the Union will receive,

as consideration from the Sale, no more

than the fair market value of the

Property as determined on the date of

the Sale by a qualified, independent

appraiser.

The Plan is prompted to take this

action because of the need for an

improved location and increased office

space and storage facilities that will

provide more and better facilities than

its current location of 1,400 square feet

floor area on the fourth floor of an office

building located in an undesirable

neighborhood. The applicant represents

that the current location of the Plan’s

offices fails to provide parking facilities,

accessibility for handicapped persons,

and lacks cleanliness and security.

The applicant represents that the

Trustees for the Plan have determined

that the proposed acquisition of the

Property will be in the best interests of

the Plan and the rights of its

participants and beneficiaries will be

protected because the Property will

provide the Plan with a desirable

combination of improved and increased

office and storage facilities,

handicapped accessibility, on-site

parking space, increased security, and a

proximity to major thoroughfares and

public transportation. Also, the

applicant represents that the Property

will provide the Plan and its

participants and beneficiaries with a

close proximity to the offices of the

Union, and thus facilitate the processing

of applications for benefits from the

Plan, minimizing inconveniences to

participants and beneficiaries and

personnel of the Plan and enhancing

administrative efficiencies. 5

The applicant also represents that

compliance with the terms and

conditions of the requested exemption

will be monitored and enforced by an

independent fiduciary, Edward K.

Wadsworth, MAI, president of The

Boston Valuation Group, Inc. located in

Weymouth, Massachusetts. Mr.

Wadsworth represents that he has

extensive experience in the field of

market, financial, and real estate

analysis, serving as a leader of

professional organizations in these

fields and serving as a qualified expert

witness in a number of court

proceedings. In addition, Mr.

Wadsworth represents that he is on the

teaching faculty of the Appraisal

Institute and has instructed courses in

the Standards of Professional Practice

and Income Capitalization.

Mr. Wadsworth represents that the

proposed Sale is in the best interests of

the Plan and is protective of the rights

of the participants and beneficiaries of

the Plan; and that he has the power,

authority, and responsibility to take the

necessary action in the proposed

transaction so that the Plan will not pay

more than the fair market value as

determined by the independent

appraiser, Peter L. Lane of Robert Wood

& Co., Inc., on the date of the Sale.

5. In summary, the applicant

represents that the proposed transaction

satisfies the criteria of section 408(a) of

the Act because (a) the Sale is a onetime transaction for cash; (b) the Plan

will not incur any expenses from the

transaction; (c) the Plan will pay no

more than the fair market value of the

Property as determined on the date of

the Sale by a qualified, independent

appraiser; and (d) the proposed

transaction will be monitored and

enforced by a qualified, independent

fiduciary.

For Further Information Contact: Mr.

C. E. Beaver of the Department,

telephone (202) 219–8881. (This is not

a toll-free number.)

General Information

The attention of interested persons is

directed to the following:

(1) The fact that a transaction is the

subject of an exemption under section

408(a) of the Act and/or section

4975(c)(2) of the Code does not relieve

a fiduciary or other party in interest of

disqualified person from certain other

provisions of the Act and/or the Code,

including any prohibited transaction

provisions to which the exemption does

not apply and the general fiduciary

responsibility provisions of section 404

of the Act, which among other things

require a fiduciary to discharge his

duties respecting the plan solely in the

interest of the participants and

beneficiaries of the plan and in a

prudent fashion in accordance with

section 404(a)(1)(b) of the act; nor does

it affect the requirement of section

401(a) of the Code that the plan must

operate for the exclusive benefit of the

employees of the employer maintaining

the plan and their beneficiaries;

(2) Before an exemption may be

granted under section 408(a) of the Act

and/or section 4975(c)(2) of the Code,

the Department must find that the

exemption is administratively feasible,

in the interests of the plan and of its

participants and beneficiaries and

protective of the rights of participants

and beneficiaries of the plan;

(3) The proposed exemptions, if

granted, will be supplemental to, and

not in derogation of, any other

provisions of the Act and/or the Code,

including statutory or administrative

exemptions and transitional rules.

Furthermore, the fact that a transaction

is subject to an administrative or

statutory exemption is not dispositive of

whether the transaction is in fact a

prohibited transaction; and

(4) The proposed exemptions, if

granted, will be subject to the express

condition that the material facts and

representations contained in each

application are true and complete, and

that each application accurately

describes all material terms of the

transaction which is the subject of the

exemption.

Signed at Washington, DC, this 17th day of

April 1998.

Ivan Strasfeld,

Director of Exemption Determinations,

Pension and Welfare Benefits Administration,

U.S. Department of Labor.

[FR Doc. 98–10692 Filed 4–21–98; 8:45 am]

BILLING CODE 4510–29–P