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BREAKING NEWS: Harder Hall Back On The Market Again

JESSE OSBOURNE/HIGHLANDS TODAY

Councilwoman Margie Rhoades listens to the Harder Hall debate over whether to let the most recent buyer obtain an extension on their due-diligence period for the purchase of the property.

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By MANDY SHEETS | Highlands Today

Published: November 6, 2007

SEBRING – Harder Hall is up for sale again after the buyer, Steve Israel, pulled out his contract when the Sebring City Council refused his request to extend the due-diligence period.

Nils Richter, a representative for Israel, said Tuesday night they could not secure financing for the project to renovate the hotel and build condominiums on the site.
"We didn't find it easy in this market to get the financing we need," Richter said. "We are trying to put together something that makes financial sense."

Instead of extending the due-diligence period, city council members told Richter to submit another contract if he is still interested in purchasing the property.

Richter said he and Israel have been working with Sebring Hospitality Group on a joint venture since they signed the contract. Sebring Hospitality Group terminated its contract in October after they were unable to complete due diligence.

"We don't want to waste your time or our time," Richter said. "We also don't want to commit if we can't be successful … We are as serious as we can be about making this work."
City Administrator Bob Hoffman said Macartney and Associates, which previously offered a purchase price of $5.5 million with a 60-day inspection period, has expressed interest in submitting another contract.

"By doing nothing tonight, you are opening it up and allowing the first group to come forward with an offer you like to buy it," Hoffman said.
Richter said he thinks future investors will have problems similar to Sebring Hospitality Group and Israel in completing the due diligence in 30 days.
"I think anyone else who steps in will come to same conclusion, and you will keep going around and around," Richter said.

City Attorney Michael Swaine said if council does not receive any viable offers, other options exist. The city could have an auction and sell personal property on the site and eliminate costs of security and insurance, Swaine said.

"Or you could knock the building down and sell the property," Swaine said. "The land is a lot more valuable then you think it is. We all want to see the hotel continue if we can, but if you don't get offers you like, you may have to consider something else.
Hoffman said the council could also rezone the 13-acre property to a higher density, which makes it more valuable.

"That property is only going to increase in value," Hoffman said. "Ten years from now, property will be worth far more than what you are putting into it each month."
Hoffman said although the city has to continue to pay about $43,000 in monthly bills on the property, the city is not in panic mode.

"We are certainly not backed into a corner and we have many options we can pursue," Hoffman said. "This is a valuable piece of property with a tremendous location. If we need to sit on it for awhile until the right person comes along, then we can afford to do that."

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