SEBRING - Sebring Hospitality Group has withdrawn its contract for the purchase of Harder Hall after the city council denied granting an extension for Sebring Hospitality Group, LLC to complete its due diligence.
The city will now move forward with its back-up contract with Steve Israel, an investor from New York, who has a contract to purchase the property for $5.6 million with a 30-day inspection period.
Sebring Hospitality Group requested a 30-day addition to the due diligence period, which was to end 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.
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."
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