Historic Warehouse District Development Corporation of Cleve

“The organization is the holder of several historic preservation easements (the "easements"). The easements represent a voluntary legal agreement that protects a significant historic, archaeological, or cultural resource. The easements provide assurance to the owners of historic or cultural property that the property's intrinsic values will be preserved through subsequent ownership. Under the terms of the easements, property owners grant a portion of, or interest in, their property rights to the corporation whose mission includes historic preservation. The easements are a useful historic preservation tool in several respects as they allow an owner to retain private ownership of the property and obtain potential financial benefits. The easement binds not only the current owner, but future owners as well. Ensurning that the property will be maintained and preserved for future generations. When property owners donate an easement to the organization, they may be eligible to claim a charitable deduction on their federal income tax return in accordance with rules set by the internal revenue service. The easements give the organization the legal authority and responsibility to enforce the terms of the easements. This includes the right to inspect the property to ensure that the owner is complying with the terms. The easements typically prohibit the owner from demolishing or making alterations to the property without prior review, consultation and approval by the easement holder. Currently the organization holds 20 easements. Management's estimate of potential future costs of maintaining these easements is not material to the financial statements. As a result, the corporation has not recorded a liability on the accompanying statements of financial position. The organization contract with professional services to monitor, inspect and enforce the easements.”

“The organization is no longer subject to tax examinations for years before 2013 by taxing authorities in jurisdictions where the organization has filed returns. The organization has adopted the accounting provisions pertaining to uncertain tax positions. The organization did not identify any material unrecognized tax benefits upon evaluation of tax positions taken and therefore, there was no material effect on the organization's financial condition or results of operations upon adoption. The organization evaluates at each balance sheet date uncertain tax positions taken, if any, to determine the need to record liabilities for taxes, penalties, and interest. The organization's policy is to record interest and penalties on uncertain tax provisions as income tax expense. As of december 31, 2016 and 2015, the organization has no accrued taxes, interest or penalties related to uncertain tax positions. The organization estimates the unrecognized tax benefit will not change significantly within the next twelve months.”