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News-Sun file The City of Sebring currently has two offers to purchase Harder Hall.

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published: Friday, December 21, 2012

Harder Hall has another suitor

By SAMANTHA GHOLAR

sgholar@newssun.com

SEBRING -- Council members looked over a report from the Harder Hall Committee Tuesday evening before approving the recommended action to accept the newest proposal.

Last month's regular council meeting introduced potential Harder Hall purchaser Arthur Marrero to the council. Marrero wants to restore the historic hotel completely using a $4 million budget.

Marrero offered a substantially lower amount for purchase, nearly $2 million below what the city still owes on the property.

The Harder Hall Committee, composed of Council President John Griffin, members John Clark and Scott Stanley, City Administrator Scott Noethlich and a few other city staff members, came to a consensus at their Dec. 17 meeting to hash out a step-by-step plan to deal with investors.

Recently, a second proposal has been received by city staff also showing interest in purchasing the property. The $3.675 million offer -- including a down payment of just over $2 million -- from Mitchell Pasin of Delray Beach was submitted Dec. 16.

Both potential investors stated that a purchase money mortgage should be used for the property. (A purchase money mortgage is defined as a mortgage issued to the borrower by the seller as part of the purchase transaction.) The mortgage would be held in an account for the city at a 5 percent interest rate. In addition, a balloon payment at the end of a five-year period will also be included as part of the purchase price.

Committee members discussed both offers at their meeting before bringing their recommendation before the entire council.

After the consideration of both proposals, the committee recommended the a detailed course of action that begins with the city notifying both potential investors and allowing them an inspection period. During the period, buyers would be allowed to review the many city records, conduct property examinations and submit a formal contract for purchase.

Following the inspection period, interested parties are then instructed to submit sealed bids for the Harder Hall purchase with a contract prepared by City Attorney Bob Swaine.

If a proposal is accepted, a $100,000 deposit will be placed in an escrow account. Three other time frames, known as "due diligence periods" will take place over the course six months with another $100,000 being collected.

The city will relinquish all rights and the deed to the property and have "no strings attached" to the Harder Hall property at the end of the entire process.

The inspection period for the potential Harder Hall purchase will end on Feb. 1.