NOTE 23. SUBSEQUENT EVENTS

The Company reviewed all subsequent events and transactions that have occurred after December 31, 2016, the date of the consolidated balance sheet.

On January 24, 2017, the Company acquired the land and improvements comprising the golf courses, previously leased from the City for approximately $1.5 million (the “Golf Course Land Purchase”). As a part of the Golf Course Land Purchase, the Company donated to the City three land parcels totaling approximately 14.3 acres located on the west side of Interstate 95 that are adjacent to the City’s Municipal Stadium. The Company had a cost basis of $0 in the donated land and paid approximately $100,000 to satisfy the community development district bonds associated with the acreage. Other terms of the Golf Course Land Purchase include the following:

The Company is obligated to pay the City an annual surcharge of $1 per golf round played each year (the “Per-Round Surcharge”) with an annual minimum Per-Round Surcharge of $70,000 and a maximum aggregate amount of the Per-Round Surcharges paid equal to $700,000;

Within one year following the date of the closing of the Golf Course Land Purchase, unless extended due to weather related delays outside the Company’s control, the Company is obligated to renovate the greens on the Jones Course; and

If the Company sells the LPGA International Golf Club within six years of the closing of the Golf Course Land Purchase, the Company is obligated to pay the City an amount equal to 10% of the difference between the sales price, less closing costs and any other costs required to be incurred in connection with the sale, and $4.0 million.

In conjunction with the Golf Course Land Purchase, the lease between the Company and the City was terminated. As of December 31, 2016, the Company’s accrued liability related to the straight-line rent on the lease between the Company and the City was approximately $2.2 million. Effective as of the closing date, the accrued liability will be eliminated as there is no remaining commitment related to the lease. As a result of eliminating the accrued liability, the Company will recognize approximately $0.40 per share in non-cash earnings in the first quarter of 2017.

On January 27, 2017, the Company acquired an approximately 18,120 square-foot retail building in Sarasota, Florida at a purchase price of $4.1 million. The property is situated on approximately 1.2 acres and is 100% leased to an affiliate of the Staples, Inc. under a triple-net lease with a remaining term at acquisition of approximately 5 years. The transaction is expected to be part of a 1031 like-kind exchange.

On February 10, 2017, the Company completed the sale of approximately 1,581 acres of land, or approximately 16% of its land holdings, to Minto Communities, LLC (“Minto”) for approximately $27.2 million (the “Minto Sale”), or approximately $17,200 an acre, resulting in an estimated gain of approximately $20.0 million, or $2.19 per share, after tax. On February 16, 2017, Margaritaville Holdings (“Margaritaville”) and Minto announced a partnership that will develop new active adult communities in some of the nation’s most popular destinations and that the first location of the all-new residential concept will open in Daytona Beach, Florida on the approximately 1,581 acres sold to Minto by the Company, and another approximately 1,686 acres the Company currently has under contract with Minto. Margaritaville and Minto indicated that the community would be branded as LATITUDE MARGARITAVILLE, Daytona Beach.

There were no other reportable subsequent events or transactions.