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No Money Going To Harder Hall Creditors

ONLY THE CITY WILL BENEFIT

Kathy Waters

Kevin Skeeles, owner of Gray's Janitorial Service, is one of the several contractors that won't be repaid for his services at Harder Hall.

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By MANDY SHEETS | Highlands Today

Published: September 7, 2007

SEBRING — Although Harder Hall is on track to sell for enough to repay all claims against it, no one but the city of Sebring will see a check.

The city, which purchased the hotel for $3 million at an Aug. 1 bankruptcy auction, is in the process of selling it for $5.55 million to Sebring Hospitality Group. Contracts were signed Wednesday and the 30-day due-diligence period is underway.

The purchase price of $5.55 million creates a profit over the city's owed $5.3 million. At least two City Council members and a handful of local contractors hoped this profit could be used to repay claims for work that went unpaid.

"It's a laudable idea, but it's our legal opinion that is not an option," City Attorney Bob Swaine said. "It would be giving away public funds to a private entity, which the city cannot legally do."

The city purchased the hotel free and clear in bankruptcy court, meaning all liens and claims against the property became invalid. Because the city did not have a contract with any of the companies, it cannot pay for services they provided.

"If this was possible, it would put the city in the position of determining which claims are valid and who should be paid first," Swaine said, noting this is not a process the city would want to become involved in.

Kevin Skeeles, owner of Gray Janitorial Service, estimates he is owed about $1,000 from cleaning the offices at Harder Hall.

"I am a little bit upset because our company, and many others, are owed money and now all the sudden, the city saves the day and turns a profit," Skeeles said. "It leaves us wondering where we fit into this."

Jesse Palmer, a licensed real estate broker representing Harder Hall, said the group would like to use the same subcontractors as Joran Realty hired. Those contracts are being reviewed during the due-diligence period, Palmer said.

Skeeles said he would negotiate another contract there under new management.

"I'm a romantic about Harder Hall," Skeeles said. "I want to see somebody finish it and restore it … I think when you are dealing with a different management company, it would be a different situation."
David Delaet, office manager for Nealis Plumbing, said although the company was stiffed about $16,000 between labor and parts, he would return to work there as well.

"We are upset about the money, but, honestly, we would love nothing more than to see the 'Old Lady' up and running again," Delaet said. "We wouldn't hesitate to get involved again. We are kind of waiting with our fingers crossed to see if someone calls us about the plumbing."

Not only could Delaet provide experience, but he already has many of the necessary parts for completing much of the plumbing.

"It would be a Godsend to be able to use those parts we ordered," Delaet said. He also estimates the company has about $10,000 worth of bathtubs on the property.

Although he may be more cautious the second time around, Delaet said he would give the new group a fresh start.

"Any hard feelings from the previous situation will go away," Delaet said. "I think we will start over with a clean slate.

"We won't be in there walking on egg shells because we do need to get work done. But we will be more conscious of receiving payments for work completed, and we won't let a single bill go past its due date."

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