17. Discontinued Operations and Real Estate Interests Held for Sale

12 Months Ended

Dec. 31, 2012

Discontinued Operations, Policy [Policy Text Block]

17. DISCONTINUED OPERATIONS AND REAL ESTATE INTERESTS HELD FOR SALE

On February 25, 2013 the Company completed the sale of its interests in Grove Isle Associates LLLP, Grove Isle Yacht Club Associates, Grove Isle Investments Inc. and CII Yacht Club, Inc., which represent interests in the Grove Isle hotel, club, tennis courts and marina (collectively, the “Grove Isle Property”) to Grove Isle Yacht & Tennis, LLC, a Florida limited liability company and an unrelated entity (“the Purchaser”), pursuant to a purchase agreement entered into on the same day. The purchase price was $24.4 million, consisting of $23.4 million in cash and a $1 million promissory note due from the Purchaser. Approximately $2.7 million of the proceeds were used to pay off the existing mortgage on the Grove Isle Property.

The Company’s interest in Grove Spa, LLC was not sold as part of the transaction described above, however the Purchaser has an option to purchase our 50% interest in the spa for $100,000, and accordingly this interest is classified as held for sale.

We have classified the results of operations for the real estate interests discussed above into discontinued operations in the accompanying consolidated financial statements of operations.

	For the years ended December 31,
	2012		2011
Revenues:
Rental and related revenue	$	1,139,000	$	1,204,000
Marina revenue		557,000		556,000
Spa revenue		430,000		535,000
Other		—		31,000
Total revenue		2,126,000		2,326,000
Expenses:
Rental operating expenses		4,000		49,000
Marina expenses		495,000		519,000
Spa expenses		392,000		538,000
Interest expense		124,000		97,000
Depreciation, amortization and other expenses		277,000		458,000
Total expenses		1,292,000		1,661,000
Income from discontinued operations	$	834,000	$	665,000

The major classes of assets and liabilities associated with the real estate interest held for sale as of December 31, 2012 and 2011 were as follows:

	December 31, 2012		December 31, 2011
Grove Isle land, hotel, club building and marina	$	1,801,000	$	1,870,000
Grove Isle spa building, improvements, furniture, fixtures and equipment (before 50% noncontrolling interest)		1,434,000		1,577,000
Other assets		172,000		177,000
Assets associated with real estate interest held for sale	$	3,407,000	$	3,624,000
Mortgage note payable	$	2,696,000	$	2,819,000
Accrued and other liabilities		23,000		97,000
Obligations associated with real estate interest held for sale	$	2,719,000	$	2,916,000