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Highlands Today

BREAKING NEWS: City Has New Buyer For Harder Hall

FIRST BUYER DROPS OUT AFTER CITY STANDS FIRM

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By MANDY SHEETS | Highlands Today

Published: October 4, 2007

SEBRING — Harder Hall is changing hands once again, after Sebring Hospitality Group withdrew its contract just hours before the due-diligence period ended Thursday.

The city will now move forward with its contract with Steve Israel, an investor from New York, who has offered to purchase the hotel for $5.6 million. City council approved a back-up contract with Israel at a Sept. 19 meeting, in case the contract with Sebring Hospitality Group fell through.

Sebring Hospitality Group requested a 30-day extension to its due-diligence period, which the city council denied at a special meeting Thursday.

"I think a 30-day due diligence period was unrealistic to start with, but it was one of the terms that attracted us to this offer," Councilor Bud Whitlock said.

City council members said because they had a back-up contract with a higher offer, they were not interested in the extension.

Nils Richter, a general contractor representing Israel, was excited to learn the city would be moving forward with their contract. He said Israel plans to renovate the historic hotel and build condominiums on the site.

"The hotel is a beautiful structure with a lot of potential," Richter said. "By itself, it's probably not financially viable, which is why the condo project is so promising. I think when we are finished, we will create a real asset for the city."

Richter, a general contractor who specializes in historic renovation and hotel management, said he has already started inspections on the property and will move forward with the due-diligence as soon as the contract is signed.

"I don't see a problem with us completing our due diligence within 30 days," Israel said. "I can't speak for what we will find in those 30 days, but I think we will get all the answers we need in that time."

Israel has already made a $10,000 deposit to secure the spot for the back-up contract. He will pay another $40,000 when the contract is signed and then the 30-day due-diligence period will begin. At the end of the 30 days, another $150,000 will be paid and then closing will take place within 60 days.
Although Israel was one of the three bidders that pre-qualified for the Aug. 1 bankruptcy auction in Miami, Richter said the terms of that sale were too restrictive.

Meanwhile city officials will continue to field phone calls and show the property to potential buyers. City Clerk Kathy Haley said she expects another group to submit a back-up contract for City Council's approval.

Bill Paedae, of Sebring, said he has a group of investors, which includes local residents, who may be interested in submitting a contract.

"Unfortunately, at this point we have to wait in line," Paedae said. "We want to see the hotel restored to what it once was. And there is something to be said for having a group with local investors who really have a passion for the project."

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