TBO.com - TBO is Tampa Bay Online

Highlands Today

BREAKING NEWS: Harder Hall Deal Down To The Wire

BUYER WANTS EXTENSION, OR NO DEAL

ADVERTISEMENT

By MANDY SHEETS | Highlands Today

Published: November 5, 2007

The City Council will consider a familiar proposal Tuesday - the extension of the due-diligence period on Harder Hall.

The due-diligence period ended at 5 p.m. Monday, but instead of moving forward with the purchase, Steve Israel is requesting a 30-day extension to the due-diligence period.

Council will consider this request at tonight's meeting, at 6:30 p.m. at City Hall.

Israel, an investor from Ney York, became the buyer, with a $5.6-million contract, after City Council denied a request from Sebring Hospitality Group to extend its due-diligence period from 30 days to 60 days. City Council members said at the October meeting because they had a back-up contract with a higher offer, they are not interested in the extension.

City officials also then expressed concerns that delaying the closing by 30 days would increase the tab for bills they must pay until closing of the property. Interest on the original debt, security, insurance, electricity, storage trailers and attorney fees cost the city about $43,000 per month.

The city no longer has a back-up contract, but Macartney and Associates, which previously offered a purchase price of $5.5 million with a 60-day inspection period, has kept in touch with the city about a possible offer, City Clerk Kathy Haley said.

City Administrator Bob Hoffman said he continues to field calls from potential buyers and show the property.

If City Council denies the request and Israel withdraws his contract, Haley said Israel will recoup his $50,000 deposit because he requested the extra time before the due-diligence period ended.

Share this:

Loading Comments...

Email Print

ADVERTISEMENT