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Harder Hall Deadline Is Monday

By MANDY SHEETS | Highlands Today

Published: November 4, 2007

SEBRING — The due-diligence period on Harder Hall ends Monday, and city officials haven't heard anything to indicate the deal won't move forward.

If all goes according to plan, Steve Israel, an investor from New York, will move into the next phase of the purchase. The city has a contract with Israel, who will purchase the hotel for $5.6 million.

Assistant City Administrator Scott Noethlich said he has not heard anything that would suggest the buyer would not follow through with the contract.

The previous purchaser, Sebring Hospitality Group, backed out of its contract Oct.4, the day before its due diligence was to end. Because the city had a back-up contract with Israel, he became the new buyer of the hotel.

Nils Richter, a general contractor representing Israel, did not return phone calls seeking comment before press time.

He previously said Israel had plans to renovate the historic hotel and build condominiums on the site.

Israel has already paid a $50,000 deposit. After the due-diligence period ends at 5 p.m. Monday, another $150,000 will be paid and then closing will take place within 60 days.

Noethlich said last week he showed the property to Richter and his staff, which included an architect and contractor.

"They seem to be excited about the project, but they are analytical as well, as you have to be when you look at this type of project," Noethlich said.

The city does not have a back-up contract at this time, but City Administrator Bob Hoffman said he continues to field calls from potential buyers.

"I have had contact with potential investors who may want to get in line if the deal with Mr. Israel falls through," Hoffman said.

Meanwhile, the city continues to pay about $42,800 per month to cover costs of interest on the original debt, security, insurance, electricity, storage trailers and attorney fees. The city will continue to foot these bills until the closing of the property.

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