ACCRUED AND OTHER LIABILITIES

9 Months Ended

Sep. 30, 2022

ACCRUED AND OTHER LIABILITIES

ACCRUED AND OTHER LIABILITIES

NOTE 18. ACCRUED AND OTHER LIABILITIES

Accrued and other liabilities consisted of the following (in thousands):

	As of
	September 30, 2022		December 31, 2021
Accrued Property Taxes	$	4,194	$	813
Reserve for Tenant Improvements		4,501		5,457
Tenant Security Deposits		2,192		1,942
Accrued Construction Costs		2,085		190
Accrued Interest		1,314		431
Environmental Reserve		67		81
Cash Flow Hedge - Interest Rate Swaps		192		26
Operating Leases - Liability		83		198
Other		3,521		3,983
Total Accrued and Other Liabilities	$	18,149	$	13,121

Reserve for Tenant Improvements. In connection with recent acquisitions, the Company received an aggregate of $7.0 million from the sellers of certain properties for tenant improvement allowances, leasing commissions and other capital improvements. These amounts are included in accrued and other liabilities on the consolidated balance sheets.  Through September 30, 2022, payments totaling $2.5 million were made, leaving a remaining reserve for tenant improvements of $4.5 million.

Environmental Reserve. During the year ended December 31, 2014, the Company accrued an environmental reserve of $0.1 million in connection with an estimate of additional costs required to monitor a parcel of less than one acre of land owned by the Company in Highlands County, Florida, on which environmental remediation work had previously been performed. The Company engaged legal counsel who, in turn, engaged environmental engineers to review the site and the prior monitoring test results. During the year ended December 31, 2015, their review was completed, and the Company made an additional accrual of $0.5 million, representing the low end of the range of possible costs estimated by the engineers to be between $0.5 million and $1.0 million to resolve this matter subject to the approval of the state department of environmental protection (the “FDEP”). The FDEP issued a Remedial Action Plan Modification Approval Order (the “FDEP Approval”) in August 2016 which supports the approximate $0.5 million accrual made in 2015. The Company is implementing the remediation plan pursuant to the FDEP Approval. During the fourth quarter of 2017, the Company made an additional accrual of less than $0.1 million for the second year of monitoring as the low end of the original range of estimated costs was increased for the amount of monitoring now anticipated. Since the total accrual of $0.7 million was made, $0.6 million in costs have been incurred through September 30, 2022, leaving a remaining accrual of less than $0.1 million.