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Highlands Today

DEVELOPING STORY: Sebring Stands Firm On Harder Hall Deadline

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By MANDY SHEETS | Highlands Today

Published: October 4, 2007

SEBRING — City council has denied granting an extension for Sebring Hospitality Group, LLC to complete its due diligence.

Sebring Hospitality Group requested a 30-day addition to the due diligence period, which ends at 5 p.m. today.

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

Council members approved the contract Sept. 4 with Sebring Hospitality Group for a purchase price of $5.55 million.

The city also has a back-up contract with Steve Israel, an investor from New York, with a purchase price of $5.6 million and a 30-day inspection period.

Paying for interest on the original debt, security, insurance, electricity, storage trailers and attorney fees costs the city $42,840 per month. The city will continue to foot these bills until the closing of the property.

Although Sebring Hospitality Group offered the city $10,000 to help cover these costs, councilors said they didn't think it was worth pushing back the closing an additional 30 days.

"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. "I'm not willing to risk $42,000 for $10,000."

City officials said they are unsure whether Sebring Hospitality Group will move forward without the extension. Sebring Hospitality Group has until 5 p.m. today to move forward by paying an additional $150,000 or back out.

Check back for updates.

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