In addition, MID granted MEC the right to receive a one-time profit participation payment in respect of any sale or development of the property equal to 15% of the marginal net proceeds on such property after MID achieves a 15% internal rate of return. MID, which is the parent company of MEC, intends to develop the property, either for its own account or as part of a joint venture arrangement, for residential purposes.
The property in 2005 was put under contract with residential developer Toll Brothers for $51 million , but the agreement was terminated last year, due in part to opposition from Palm Beach County over the potential buyer's development plans.
MI Developments announced March 28 that it has purchased from subsidiaries of Magna Entertainment a 157-acre development property in Palm Beach County, Fla., adjacent to MEC's Palm Meadows Training Center, for cash consideration of $35 million.
