NOTE 23. ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS

During the fourth quarter of 2018, the Company commenced efforts to pursue monetization of certain of its multi-tenant income properties and the golf operations and assets comprising the Club. Accordingly, four multi-tenant income properties and the golf assets comprising the Club were classified as held for sale as of December 31, 2018. Additionally, the golf operations qualify as discontinued operations and have been reclassified as such in the accompanying consolidated statements of income for the years ended December 31, 2019, 2018, and 2017.

As described in Note 3, “Income Properties”, the Multi-Tenant Dispositions were completed during the year ended December 31, 2019 comprising $56.8 million of the reduction in assets held for sale. Additionally, the Westcliff property located in Fort Worth, Texas is no longer being actively marketed and was reclassified as held and used during the quarter ended June 30, 2019 comprising $14.6 million of the reduction in assets held for sale.

In October 2019, the Company completed the sale of the Golf Club. There were no assets or liabilities held for sale as of December 31, 2019.

The following is a summary of assets and liabilities held for sale as of December 31, 2018:


	As of December 31, 2018
	Land JV Assets		Multi-Tenant Income Properties		Golf Assets		Total Assets Held for Sale
Property, Plant, and Equipment—Net	$	—	$	67,810,880	$	3,659,703	$	71,470,583
Land and Development Costs		20,139,788		—		—		20,139,788
Cash and Cash Equivalents		—		—		156,489		156,489
Restricted Cash		831,966		—		—		831,966
Other Assets		—		—		646,285		646,285
Intangible Lease Assets—Net		—		4,366,858		—		4,366,858
Intangible Lease Liabilities—Net		—		(773,705)		—		(773,705)
Total Assets Held for Sale	$	20,971,754	$	71,404,033	$	4,462,477	$	96,838,264


	As of December 31, 2018
	Land JV Liabilities		Multi-Tenant Income Properties		Golf Liabilities		Total Liabilities Held for Sale
Accounts Payable	$	—	$	—	$	199,422	$	199,422
Accrued and Other Liabilities		—		—		924,323		924,323
Deferred Revenue		831,320		—		223,551		1,054,871
Total Liabilities Held for Sale	$	831,320	$	—	$	1,347,296	$	2,178,616

Golf $1 Round Surcharge. Accrued and Other Liabilities within Liabilities Held for Sale of approximately $924,000 is primarily comprised of a $1 per round of golf surcharge. 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”). In connection with the Golf Course Land Purchase, each year the Company is obligated to pay the City additional consideration in the amount of an annual surcharge of $1 per golf round played (the “Per-Round Surcharge”) with an annual minimum Per-Round Surcharge of $70,000 and a maximum aggregate of Per-Round Surcharges of $700,000. The maximum amount of $700,000 represents contingent consideration and was recorded as an increase in Golf Buildings, Improvements, and Equipment and Accrued and Other Liabilities in the accompanying consolidated balance sheets. The first two annual payments were made in January 2018 and 2019 leaving a remaining commitment of approximately $560,000. In conjunction with the sale of the Golf Club in October 2019, the Company repaid its remaining $560,000 obligation to the City. As a part of the sale of the Golf Club, the buyer agreed to pay the Company approximately $560,000 in the future based on a per round surcharge of $1.50 per round for each round played at the Golf Club.

Deferred Revenue on Land Sales. In conjunction with the land sale to Buc-ee’s in March 2018, the Company funded an escrow account for approximately $831,000 related to the portion of the acreage sold for which the Company remains obligated to perform wetlands mitigation. As a result of the Company’s continuing obligation, approximately $831,000 of the sales price collected at closing was deferred and the revenue will be recognized upon the Company’s performance of the obligation. The Company estimates the obligation related to the wetlands mitigation will total approximately $25,000.

The following is a summary of discontinued operations for the years ended December 31, 2019, 2018, and 2017:


	Year Ended
	December 31, 2019		December 31, 2018		December 31, 2017
Golf Operations Revenue	$	4,096,594	$	4,941,997	$	5,095,313
Golf Operations Direct Cost of Revenues		(5,259,424)		(5,848,429)		(5,958,888)
Loss from Operations		(1,162,830)		(906,432)		(863,575)
Impairment Charges		—		(1,119,362)		—
Depreciation and Amortization		—		(373,979)		(349,259)
Gain on Disposition of Assets		15,050		—		—
Land Lease Income		—		—		2,226,526
Income (Loss) from Discontinued Operations Before Income Tax		(1,147,780)		(2,399,773)		1,013,692
Income Tax Benefit (Expense)		290,906		608,222		(391,032)
Income (Loss) from Discontinued Operations (Net of Income Tax)	$	(856,874)	$	(1,791,551)	$	622,660

Land Operations Revenue	$	11,043,151	$	43,030,713	$	47,666,408
Land Operations Direct Cost of Revenues		(6,404,844)		(10,922,539)		(16,155,784)
Loss from Operations		4,638,307		32,108,174		31,510,624
Gain on Disposition of Assets		127,518,231		—		—
Income from Discontinued Operations Before Income Tax		132,156,538		32,108,174		31,510,624
Income Tax Expense		(32,932,100)		(8,137,818)		(12,155,225)
Income from Discontinued Operations (Net of Income Tax)	$	99,224,438	$	23,970,356	$	19,355,399

Total Income from Discontinued Operations (Net of Income Tax)	$	98,367,564	$	22,178,805	$	19,978,059