Set-Asides

Department of the Treasury
Internal Revenue Service
IRS
Tax Exempt and Government Entitles
P.O. Box 2508
Cincinnati, OH 45201
Release Number: 20233 l 007
Release Date: 8/4/2023
LEGEND b dollars = Amount
C=Name
D=Name
Dear
Date: 05/10/2023
Employer ID number:
Person to contact:
Name:
ID number:
Telephone:
UIL: 4942.03-07
We received your July 27, 2022 request for 36-month extension to pay out a set-aside approval 011
Based on the information furnished, we approved your request.
Our ruling dated approved a b dollar set-aside for the year ending pmpose of constmcting a theater building. You stated the set-aside would be expended within Description of your set-aside request for the months.
The pmpose of yom set aside was, and is, to facilitate the development of a mixed use cultmat imti ~rt<: fori1itv to house galleries, classrooms, work spaces, and a theater rehearsal space. This will include a and over square feet of arts-related space. This facility will be part of a redevelopment plan within the C.
The initial amount to be set aside was to cover operating expenses in constmcting the facility.
Demolition ofD (the building containing the theater) commenced in The intention was to go straight from demolition to construction~ with the building substantially complete in June Because of the Covid-19 global pandemic, the project was put on hold. Coustmction recommenced in Currently, superstmcture is being poured and the expectation is for the building to be complete by the end of . As a result, the opening of the theater has been pushed back.
For these reasons, you are requesting an extension of time until the end of that the set-aside amount will begin to be utilized.
Basis for our determination , at which time it is expected
Internal Revenue Code (IR.C) Section 4942(g)(2)(B)(i) provides requirements for approval of a set-aside for a specific project that will be paid out in five years. A foundation must establish that the project can be accomplished better by using the set-aside instead of by making an immediate payment. A set-aside may have its period to pay extended if it satisfies the requirements of IRC Section 4942(g)(2)(B)(i) and good cause is shown.
Letter 4798 (Rev. 12-2021)
Catalog Number 58294S
Treasury Regulation Section 53.4942(a)-3(b)(7)(i)(e) states that you must provide a statement showing good cause as to why the set-aside payment period should be extended, specifying the requested extension of time.
Additional information
This determination may only be used by the organization that requested it. IRC Section 61 I0(k:)(3) provides that it may not be used or cited as a precedent.
Visit www.irs.gov/set-asides for more information.
We'll make this determination letter available for public inspection after deleting certain identifying information, as required by IRC Section 6110. Read the enclosed Letter 437, Notice oflntention to Disclose, and review the attached letter that shows our proposed deletions. If you disagree with our proposed deletions, follow the instructions in the Letter 437 on how to notify us. If you agree with our deletions, you don't need to take any further action.
Keep a copy of this letter for your records.
If you have questions, you can call the contact person shown above.
Enclosures:
Redacted Letter 4 798
Letter 437
Sincerely,
Stephen A. Martin
Director, Exempt Organizations
Rulings and Agreements
Letter 4798 (Rev. 12-2021)
Catalog Number 58294S