Land and Development Costs and Subsurface Interests (Tables)

12 Months Ended

Dec. 31, 2015

Land and development costs at December 31, 2015 and 2014, are summarized as follows:

	December 31,
	2015		2014
Undeveloped Land ($11,329,574 Related to Consolidated VIE as of December 31, 2015)	$	11,631,354	$	301,780
Developed Land and Development Costs		27,105,511		22,903,969
Land, Timber, and Subsurface Interests		14,669,155		14,865,515
Total Land and Development Costs	$	53,406,020	$	38,071,264

Summary of Sales within the Tomoka Town Center

Land Tract	Date Closed	No. of Acres		Sales Price		Avg. Sales Price per Acre		Gain Recognized in 2015		Deferred Revenue⁽¹⁾
Tanger Outlet	11/12/2015		38.93	$	9,700,000	$	249,165	$	2,793,419	$	6,327,421
Sam's Club	12/23/2015		18.10		4,500,000		248,619		1,278,747		2,881,795
NADG - First Parcel	12/29/2015		37.26		5,168,335		138,710		1,421,303		3,447,557
Total Tomoka Town Center Sales			94.29	$	19,368,335	$	205,412	$	5,493,469	$	12,656,773

⁽¹⁾ Deferred revenue to be recognized on the percentage-of-completion basis as remaining infrastructure costs are incurred. See Note 19 "Commitments and Contingencies" for a description of the commitments related to the remaining infrastructure costs to be incurred

Summary of Reconciliation of the Land Transactions Closed

The following table provides a reconciliation of the land transactions closed (as of December 31, 2015) or under contract for all the developable parcels of the Tomoka Town Center (Sales price and estimated infrastructure reimbursement presented in $000’s) and the reimbursement amounts for the Infrastructure Work from each buyer:

Land Tract	No. of Acres		Sales Price (In $000's)		Sales Price per Acre		Infrastructure Reimbursement (in $000s)
Tanger Outlet [Closed] ⁽¹⁾		38.93	$	9,700	$	249,165	$	5,500
Sam's Club [Closed] ⁽²⁾		18.10		4,500		248,619		1,100
NADG - First Parcel [Closed]⁽³⁾		37.26		5,168		138,710		1,800
NADG - Option Parcels ⁽⁴⁾		85.95		22,195		258,237		4,100
Total Developable Area		180.24		41,564		230,602		12,500
Common Area ⁽⁵⁾		54.32	N/A		N/A			(12,500	)
Total Town Center		234.56	$	41,564	$	177,199	$	-

⁽¹⁾ Includes $4.5 million in incentives from community development district, with remainder to be paid in equal installments over 10 years;
⁽²⁾ Infrastructure reimbursement, pursuant to contract, paid in equal installments over 10 years;
⁽³⁾ Infrastructure reimbursement due upon the later of i) Infrastructure Work completion or, ii) August 31, 2016;
⁽⁴⁾ Under Contract. Sales price reflects current contract price; price escalations would occur should any of the transactions close in 2017 and 2018. Infrastructure reimbursements for each Option Parcel occurs upon later of i) transaction closing, ii) Infrastructure Work completion or, iii) August 31, 2016; and
⁽⁵⁾ Includes common area for the Town Center association and land dedicated for public use, both to be conveyed by the Company.

Summary of Lease Payments and Drilling Penalties Received on Acreages

Lease payments on the respective acreages and drilling penalties received through lease year five are as follows:

Lease Year	Acreage (Approximate)		Florida County	Lease Payment ⁽¹⁾		Drilling Penalty ⁽¹⁾
Lease Year 1 - 9/23/2011 - 9/22/2012		136,000	Lee and Hendry	$	913,657	$	-
Lease Year 2 - 9/23/2012 - 9/22/2013		136,000	Lee and Hendry		922,114		-
Lease Year 3 - 9/23/2013 - 9/22/2014		82,000	Hendry		3,293,000		1,000,000
Lease Year 4 - 9/23/2014 - 9/22/2015		42,000	Hendry		1,866,146		600,000
Lease Year 5 - 9/23/2015 - 9/22/2016		25,000	Hendry		1,218,838		175,000
Total Payments Received to Date				$	8,213,755	$	1,775,000

⁽¹⁾Cash payment for the Lease Payment and Drilling Penalty is received on or before the first day of the lease year. The Drilling Penalty is recorded as revenue when received, while the Lease Payment is recognized on a straight-line basis over the respective lease term. See separate disclosure of the revenue per year below.