Greater Harrisburg's Community Magazine

City Council approves zoning change to former hospital site, now proposed for apartments

The former Polyclinic Hospital and proposed site of an adaptive reuse project.

A project to turn a former Harrisburg medical facility into apartments has taken a step forward.

City Council on Tuesday approved a zoning change and subdivision for the former Polyclinic Hospital at 2601 N. 3rd St. in Uptown Harrisburg, which a developer has proposed renovating.

In March 2024, Pennmark Harrisburg Holdings, an affiliate of Montgomery County-based Pennmark Management Company, purchased the property and later proposed making it into market-rate apartments with commercial space. As part of the estimated $45 million project, Pennmark would construct 250 to 300 apartment units, along with retail shops.

Council’s approval changed the property’s current Institutional zoning to Commercial Neighborhood zoning and split the land into four separate parcels to aid in development.

Council members shared concerns over the lack of affordable units for lower-income residents and expressed a desire to see the developer work to accommodate existing neighbors.

One resident who lives near the project site shared her concerns for the potential of increased traffic and parking challenges in the neighborhood.

Pennmark’s project will still require approval for its land development plan.

Also on Tuesday, council voted to appropriate about $2 million into the budget, sourced from various city fund balances, to pay money that it owes as a result of recent litigation. A Dauphin County jury decided last month that Harrisburg underpaid the owner of the former Brenner Motors car dealership when the city took the property via eminent domain several years ago.

In other news, council voted to appoint Basir Vincent, who recently ran unsuccessfully for a council seat, to the Harrisburg Planning Commission.

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