Grand Jury Probes City Finances
A state grand jury has been empaneled to investigate the various dealings that led to Harrisburg’s financial crisis.
Mayor Eric Papenfuse last month confirmed that he recently testified before the grand jury, which reportedly is meeting in Pittsburgh. He would not give specifics of his testimony.
City officials and former receivers William Lynch and David Unkovic all have supported criminal investigations into how the city wound up on the verge of bankruptcy, largely due to crippling debt tied to the city incinerator.
Dauphin County District Attorney Ed Marsico turned the matter over to state Attorney General Kathleen Kane after citing a possible conflict of interest in the case.
The grand jury probe appears to be wide-ranging. Investigators have taken large quantities of documents both from City Hall and the school district, according to sources.
In City Hall, many of the documents were discovered in locked filing cabinets and in locked closets that were opened once Papenfuse took office in January, sources said.
After its investigation is complete, the grand jury will recommend whether to file charges in the case. The prosecutor then determines whether or not to issue indictments.
Councilwoman Eugenia Smith Dies
Councilwoman Eugenia Smith died suddenly last month at age 53.
Smith, a lifelong city resident, died at Harrisburg Hospital after suffering a heart attack. She had begun her second term on City Council in January and was chair of the council’s Public Safety Committee.
“This is deeply shocking,” said Mayor Eric Papenfuse. “I share the pain and loss that people throughout our city assuredly feel as we try to absorb this sudden news. Our thoughts and prayers are with her family at this time.”
Council now must fill the open seat. City residents have until May 2 to submit applications, and a brief, public interview will follow. After nominations by council members, a final vote is slated for May 12. The new council member will serve until January 2016.
Judith Hill, Harrisburg’s first African-American councilwoman, also died last month.
Firefighter Contract Approved
Harrisburg City Council last month approved an agreement with the firefighter’s union designed to save the city about $70,000 a month.
The contract sets up a 14/1 shift, meaning that 14 firefighters and one commander will be on duty across the city at all times. Previously, the department operated with 16 firefighters and one commander for each shift.
The contract changes should significantly reduce firefighter overtime, a key element in city and state efforts to bring Harrisburg’s budget into balance.
The city last month also proposed closing the aging Paxton Fire Co. station in Shipoke. This proposal, an outgrowth of the new contract, caused concern among some residents, leading the Papenfuse administration to hold a community meeting to explain its plan.
Former Mayor Linda Thompson also had proposed closing the station, but dropped the idea after encountering resistance.
Mayor Moves to Replace Veno
Mayor Eric Papenfuse has asked the state to replace Gene Veno as chief recovery officer for the school district.
Papenfuse last month said he met with state Secretary of Education Carolyn Dumaresq to “express his alarm at the lack of progress at improving academic standards” in city schools and request that Veno be replaced.
“My concern is that Mr. Veno does not believe Harrisburg schools will meet academic benchmarks under the plan he devised,” he said. “This is unacceptable and compromises the future of our children.”
Papenfuse also came out in support of Key Charter School, which wishes to locate in the old Bishop McDevitt High School at 2200 Market St. The school board, which has rejected many charter school applications in recent years, must approve Key’s application.
“There should be a sense of urgency about these under-performing schools,” Papenfuse said, “and parents ought to have other possibilities to ensure their children are well educated and ready for the workplace. Harrisburg’s economic recovery won’t succeed unless we have an educated workforce ready to claim the jobs that will be created.”
“Mary K” Mansions Sell
A decade-long saga came to a close last month as the “Mary K mansions” sold at auction for a total of $756,000 to two buyers from the west shore.
On a sunny, cool day, multiple bidders dueled for about 2 1/2 hours at the outdoor auction, held on one of the four lots near the corner of Front and Manor streets.
In the end, Mike and Sally Wilson of Lisburn paid $361,000 for two of the properties at 2909 and 2917 N. Front St. Rob Edwards of Dillsburg paid $395,000 for 2901 N. Front St., which includes a large house and a parking lot off of Division Street.
Mike Wilson, the owner of Integral Construction, said that he and his wife intend to renovate and live in the mansion at 2909 N. Front, but he wasn’t sure what they’d do with 2917 N. Front, a dilapidated building that long served as an office building.
Edwards said he had no plans yet for his properties. He said he often buys and sells properties at auction and was attracted to these houses because of the location on the river.
Previous owner Mary Knackstedt bought the properties in 2004, planning to raze them and build a 32-unit condominium development. However, her land use plan met fierce resistance in the neighborhood, and City Council ultimately rejected it.
She later defaulted on her mortgages and declared bankruptcy. A last-ditch effort last year to sell the properties for $2.5 million failed, leading to the auction.
Illegal Gun Project Launched
Harrisburg and Dauphin County are teaming up to increase penalties for carrying illegal weapons.
Under the “$100K Illegal Gun Project,” Harrisburg police officers and the county district attorney’s office will request that courts set bail at a minimum of $100,000 for anyone charged with illegally carrying a firearm.
The bail amount would be recommended for felons who are prohibited from carrying a gun and for anyone carrying one on themselves or in their vehicle without a license, according to a joint city/county announcement.
In addition, police and prosecutors will request juvenile detention for any juvenile older than 15 who is charged with illegally carrying a firearm.
Historic Train Moved
The historic GG1 Pennsylvania railroad locomotive No. 4859 was temporarily moved from its spot at the Harrisburg Transportation Center last month to a siding 1,000 feet west of the station.
Rail enthusiasts gathered to watch and take photos of the GGI locomotive and caboose, which were moved so that Amtrak could continue its $36 million project to improve power, signals, track and switches in the station.
An Amtrak locomotive pushed the GGI and caboose to a siding near the 7th Street garage about ¼-mile away. The locomotive then was “shrink-wrapped” to protect it from the elements until it can be moved back to its current location.
The GG1 served the Harrisburg station on service to Philadelphia and New York between 1938 and 1981. It was located at the station as a memorial to that service in 1986, designated as the official state locomotive and is listed on the National Register of Historic Places.
The Harrisburg Chapter of the National Railway Historical Society maintains both No. 4859 and the caboose.
Changing Hands
Calder St., 211: T. Chapin to I. Blynn, $165,000
Charles St., 232: L. Milner & A. Lee to R. Gosnell, $120,000
Chestnut St., 2048: Secretary of Housing & Urban Development et al to S. Reyes, $70,875
Disbrow St., 97: J. Handy Jr. to J. Hobbs, $45,000
Duke St., 2452: PA Deals LLC to M. & D. Graeff, $68,000
Harris St., 230: Fannie Mae to Klimke Holdings LLC, $51,000
Jefferson St., 2241: Kirsch & Burns LLC to LMK Properties LLC, $45,000
Manada St., 1918: K. & J. Frobenius to 2013 Central PA Real Estate LLC, $55,000
Market St., 1827: K. Frobenius et al to 2013 Central PA Real Estate Fund LLC, $55,000
North St., 231, 233, 235: F. Galiardo Realty Management Associates LLC to Murphy & Laus Real Estate LLC, $325,000
N. 2nd St., 817: R. Baker to HCH Investments LP, $127,000
N. 3rd St., 1633: B. Jones & C. Heintzelman to J. & S. Compton, $38,000
N. 4th St., 2737: M. Horgan & Innovative Devices Inc. to T. Murphy, $37,000
N. 5th St., 3024: S. Zerbe to J. Olan, $89,000
N. 6th St., 2013: Sixth Street Clover Club to Victor Ventures, $30,000
N. 16th St., 921: J. & V. Waid to Equity Trust Co., $38,250
N. Front St., 1107: J. Farrell to M. Perrone, $184,900
Parkway Blvd., 2507: R. Zogby & L. Sfier to B. & B. Reid, $120,000
Peffer St., 214: BFI LP to M. Magaro et al, $51,000
Penn St., 1424: R. Benton to R. Essig, $30,000
Penn St., 2315: BFI LP to M. Magaro et al, $36,000
Regina St., 1849: J. Vogelsong to D. Moore Sr., $40,000
Rolleston St., 1315 & 1411: S & R Estates LLC to Keystone RH LLC, $890,000
Rudy Rd., 2400: Secretary of Housing & Urban Development to J. & M. Caulfield, $90,000
S. 14th St., 361: J. Rodriguez to Urena Diaz Property, $33,000
S. 15th St., 438: J. Vogelsong to D. Moore Sr., $30,000
S. 16th St., 336: Harrisburg Redevelopment Authority & Tri-County HDC to L. Wilson, $101,000
S. 20th St., 1226: G. & H. Fabiankovitz to R. & G. MacWhinnie, $110,000
S. 25th St., 713: Fannie Mae to S. Mosley, $50,500
S. 26th St., 710: Fannie Mae to S. Mirenda, $62,500
S. 27th St., 724: E. & R. Kolp to S. Armstrong & P. Hudson, $125,000
Walnut St., 1261: JP Morgan Chase Bank NA to G & G Property Services LLC, $35,000
