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Highlands Today

SOLD! Sebring Sells Harder Hall For $5.55Million

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By MANDY SHEETS | Highlands Today

Published: September 4, 2007

SEBRING — Excitement filled City Hall as city council members unanimously voted to sell Harder Hall for $5.55 million.

The hotel's new owner, Sebring Hospitality Group LLC, has grandiose plans to renovate the building as it was in its heyday.

"We want to restore this building," said Jesse Palmer, a licensed real estate broker representing the company. "We appreciate the historic charm of it."

Initial plans are to restore the building to an upscale, luxury hotel that will include a restaurant, conference room and banquet center, Palmer said.

The group is still debating whether to operate the hotel independently or establish a contract with a management company, Palmer said.

The remainder of the 13.6 acres will likely be developed in the future to upscale condominiums that would share the hotel's amenities, Palmer said.

City Attorney Michael Swaine said city officials received numerous inquiries about the property and were satisfied with the offers he presented at Tuesday's City Council meeting.

"(City Administrator Bob) Hoffman and I are very pleased at the interest of the parties who have come to us," Swaine said. "They talk a good game, and I think they have the experience to do good things."
Sebring Hospitality Group is a recently formed Delaware corporation comprised of a group of investor doctors, primarily from New York, New Jersey and Michigan, Palmer said.

City officials considered two contracts at Tuesday's meeting – the Sebring Hospitality Group offer, which was accepted, and one from Macartney and Associates for $5.5 million. Sebring Hospitality Group has a 30-day inspection period and Macartney and Associates asked for 60 days.

"I am certainly excited about the opportunities we have here," Mayor George Hensley said. "I would encourage us to accept the highest offer."

City officials will ask Macartney and Associates to be a backup offer in case anything falls through during the due-diligence period.

The sale of the property, at $5.55 million, creates a profit over the city's owed $5.3 million.
Council member Bud Whitlock said he would like to see the profit used to repay subcontractors who were not paid for work they completed at the site. The list of creditors owed money includes 63 Sebring businesses and 11 businesses and contractors in Highlands County.

Swaine said this is not possible, however, because the city purchased the hotel free and clear and cannot give away city money.

Palmer said Sebring Hospitality has plans to use as many of the original subcontractors as possible for the renovations.

"We know the financial hardship they are in, and we want to try to help them recoup some of their losses," Palmer said.

Bob Hoffman said he will continue to field calls, show the property and accept offers until the due-diligence period is over.
"I am not going to get too excited until we actually have hard money," Hoffman said. "We are just hopeful we make it to closing."

TERMS OF CONTRACT
-- $5.55 million selling price
-- $50,000 already paid in escrow
-- 30-day inspection period
-- Purchaser can terminate contract if inspections are not acceptable and get deposit back
-- After 30-day period, purchaser puts up an additional $150,000
-- Closing will be 60 days from initial inspection period

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