Sebring council workshop examines ground-lease offer for municipal golf course tied to Harder Hall restoration

Sebring — Representatives for the Blackman family told the Sebring City Council at a May 12 workshop they would assume operations, capital costs and liability for the city-owned municipal golf course under a proposed long-term ground lease tied to renovation of the historic Harder Hall hotel.

The offer, presented by Brian Sykes, an attorney for Meridian Partners Law, and by Robert Blackman, a partner in the Harder Hall resort project, would keep city ownership of the land while shifting day-to-day operations and capital responsibility to the lessee. “The city would have 0 responsibility, 0 liability, 0 obligation,” Sykes said, calling the arrangement a “triple net lease.”

The proposal was framed as part of a larger redevelopment: Blackman representatives and their consultants said linking the golf course to a restored Harder Hall would make the hotel economically viable as a resort amenity. “If you don't have the course, you don't have a resort,” Drew Locker, a licensed general contractor working with the Blackman group, said.

Why it matters: City staff and presenters said the municipal golf course has operated at a loss for years and requires capital work. In his presentation, Sykes gave revenue and expense figures he attributed to current operations — “about 798,000 in revenues with 1,300,000 in expenses,” which he said created “over $500,000 per year operating deficit.” Finance staff presented additional fund-level numbers and said transfers from the general fund have varied year to year; the staff presentation noted transfers and capital spending in recent years and said “the amount that's actually being transferred into the fund ... is a hundred and 16,000 in the current year,” as shown in the draft audited statements provided to council.

What was discussed: Speakers and council members pressed for specifics on several fronts before any formal action: (1) whether the Blackman proposal requires a certificate of occupancy for Harder Hall before a long-term lease is finalized; (2) whether the city would include a long-term covenant to keep the property a golf course or public recreation; (3) terms to protect existing tenants, specifically Caddy Shack and its roughly 33 employees; (4) the lessee’s planned capital improvement program (CIP) and minimum investment; and (5) whether a 99-year lease, an option to purchase, or a shorter initial term would be appropriate.

Caddy Shack and employees: Multiple speakers who identified themselves as Caddy Shack owners or supporters asked that the restaurant be protected and given a longer lease. Sonia Mendoza, who identified herself and her husband Gavin as the Caddy Shack operators, said the restaurant has paid $3,598.89 per month in rent since 2006 and employs 33 people. “We would like you to consider giving us a 5 year lease,” Mendoza said. Blackman representatives told council they have “no intentions to kick them out” and said they expect to negotiate with the restaurant operator if a lease proceeds, but noted the existing restaurant lease includes a provision giving Caddy Shack certain service rights to the course that the hotel’s restaurant could affect.

Tourism alternatives and county funding: Casey, a presenter from the county Tourist Development Council (TDC), and consultant Alan Broadlander reviewed a county-funded sports-tourism study that evaluated the county’s facilities, including Max Long park. The TDC presentation — described by the presenters as a study rather than a recommendation — said enhancing existing sports fields and Max Long could increase hotel room nights and county tourism revenue without converting golf holes. Broadlander said upgrades to Max Long fields could generate tens of thousands of additional hotel nights, and that the TDC’s facility-improvement grant funds (paid from the county’s tourist development tax) are available only to facility owners who apply to the TDC board.

Council concerns and next steps: Council members expressed a range of views but repeatedly stated no vote would be taken at the workshop. Several members said they were open to a ground lease if benchmarks were written into any agreement to protect city interests, preserve public access and protect employees. Councilman Carlisle said he would not support giving city property “for a dollar” without strong protections and asked for a city-resident rate, reversion language, and employee protections. Another council member said any lease should include a timeline for performance and defined milestones; several members said they wanted a certificate of occupancy for Harder Hall included as a condition or milestone.

Public comments: About two dozen residents and stakeholders spoke during a five-minute-per-person public-comment period. Comments included support for the Blackman group and the Harder Hall restoration, requests to protect Caddy Shack and its employees, concerns about losing an 18-hole public course, and suggestions to pursue a private management contract or to invest in Max Long park as an alternative.

No formal action: City staff and the city attorney advised there is no legal requirement to run a request-for-proposal (RFP) in order to negotiate a long-term lease. Council members asked staff to draft benchmarked terms and requested additional financial detail from the Blackman group, including a CIP plan, milestones, and employee transition protections. Council consensus was to continue discussions; several council members asked staff and the proposer to return with a draft agreement for future council consideration.

What remains unclear: Presenters for the Blackman group said their current ground-lease template includes a front-loaded capital commitment and a proposed minimum of a $250,000 initial investment, but they also said a detailed CIP and cost estimates are not yet complete and would be developed during due diligence. The TDC clarified its study was countywide and not a direct recommendation to convert golf holes into sports fields. Financial details about exact recent transfers from the general fund and the full capital needs of the course were presented in draft numbers that council and staff said would be reviewed and clarified before any final proposal returned to the council.

Council advised the public to submit questions and concerns to city staff while the parties negotiate draft terms; staff said the matter will return to council for a formal vote if and when a negotiated agreement is presented.