Harrisburg Lauds Debt Payoff
Harrisburg officials last month celebrated a historic day, as the city made a final payment on its once staggering debt load.
The city officially paid off the last $8.3 million in general obligation bond debt dating back more than a decade to its municipal financial crisis.
“This is a historic moment in our city,” said Mayor Wanda Williams. “Harrisburg’s best days are ahead.”
The forbearance liability debt is money that the city owed to bond insurer Ambac Assurance after it defaulted on its Series D&F bond payments in 2011. The original D&F bonds were issued in 1997, under former Mayor Steve Reed. Harrisburg paid off those bonds in September 2022.
Late last year, Harrisburg City Council approved the payoff of $12 million of what was $20 million in remaining in debt, at the time. While city administration officials had originally proposed paying off the total $20 million at once, council members were hesitant to spend down such a large amount of the city’s fund balance.
“I’m glad we were in a position to finish the task,” said council President Danielle Bowers.
Before the Williams administration made the two large payments, the city, for years, mainly made smaller, routine annual payments, with the exception of a $6 million payment under former Mayor Linda Thompson in 2013 and a $7.2 million payment under former Mayor Eric Papenfuse in 2021.
Before last month’s payment, Harrisburg’s fund balance, or savings, sat at around $25 million. With this final bond payment, it now is about $17 million, according to Brian McCutcheon, accounting manager for the city.
Officials pointed out that the total debt payoff also saves the city from continuing to accrue interest on the debt. Williams said that the city plans to put the freed-up money towards resident services, possibly street repaving, purchasing public works vehicles and blighted building demolition.
Local Primary Slates Set
Eight Democrats will vie for three seats on Harrisburg City Council, as the petition deadline for the May primary came to a close last month.
Council President Danielle Bowers and newly appointed council member Robert Lawson both submitted petitions to compete in the May 16 municipal primary. However, two-term member Westburn Majors did not, meaning that the field will include an open seat.
In an interview, Majors cited “family obligations” for deciding not to seek re-election.
“I’m very proud of the work we’ve done on council over the last two terms to move the city forward,” he said. “I will continue to be involved in the community.”
Other candidates for the three, four-year council seats include:
- Cole Goodman
- Lamont Jones
- Brad Barkdoll
- Lori Beamer Saulisbury
- Crystal Davis
- Leslie C. Franklin
No Republicans submitted candidate petitions for city council.
Harrisburg also has an election for five, four-year seats to the school board. Only four candidates, all Democratic incumbents, submitted nominating petitions. They are:
- Ellis Rick Roy
- James Thompson
- Doug Thompson Leader
- Terricia Radcliff
For city treasurer, only Democratic incumbent Dan Miller submitted nominating petitions to run for the four-year seat.
For magisterial district justice, long-time incumbent Barbara Pianka did not submit election petitions for District 12-1-02. However, her son, Matthew Pianka, did, cross-filing as both a Democrat and a Republican. He is running unopposed.
For District 12-1-04, Democrat Mikaela Sloan was the lone candidate to file for that district judgeship. The seat is currently held by MDJ David O’Leary.
In District 12-1-05, incumbent MDJ Hanif Johnson cross-filed for both the Democratic and Republican nominations. He faces competition on the Democratic side from Claude Phipps and Lori Ann Jenkins.
In District 12-1-06, Wendy Grella was the lone candidate to file petitions for the position, cross-filing for both parties. MDJ Joseph Lindsey currently holds that judgeship.
Harrisburg Weighs Grant Disbursal
With millions of dollars in federal COVID relief funds in hand, Harrisburg soon will determine how the city will use the money.
Harrisburg City Council last month weighed a plan to potentially use its remaining American Rescue Plan Act (ARPA) dollars to support affordable housing development and to create a spray park in south Harrisburg, among other projects.
Under ARPA, Harrisburg received $47 million for pandemic relief. In June 2022, council voted to use about $15.6 million of the funds to reimburse the city for lost revenue during the pandemic, for the replacement of the HVAC system in its Public Safety Building, and for one-time bonuses to uniformed personnel in the Harrisburg Fire Bureau and Bureau of Police.
Last month’s proposal from the administration included using another $28.1 million of the funds. The two largest allotments, each $8 million, would go towards funding affordable housing projects and towards constructing a spray park at the site of the closed Hall Manor pool.
According to Director of Building and Housing Development Dennise Hill, the affordable housing funds may be disbursed to developers as either matching funds or direct assistance. The money could be used to support the development of around 100 rental or for-sale units for low-income residents, Hill explained.
The spray park would replace the aging Hall Manor community pool with a large, water park-style facility. According to Parks and Recreation Director Dave Baker, the project could include the construction of a new pool, lazy river and spray pad elements.
Another $5 million would support the city’s Housing Rehabilitation Program, which provides home repair assistance to low-income residents. A $1.5 million allocation would fund blighted property demolition, $1.5 million would create an ADA-accessible playground, and $1 million would help cover the cost of delinquent trash bills for low-income residents. Other, smaller allocations would go towards small business assistance, tree removal and pruning for seniors and an upgraded radio system for the Fire Bureau.
Council officials stated that they plan to hold several public meetings to gather input on the proposal before voting.
Public Housing Redevelopment Eyed
In a few years, some public housing in Harrisburg may look a lot different.
The Harrisburg Housing Authority, along with the city, recently received a federal grant to begin to redesign and redevelop Hoverter Homes in South Harrisburg.
The $500,000 grant, from the U.S. Department of Housing and Urban Development (HUD), would support plans to renovate the 233 units in the housing complex. According to the city, the project would eliminate the current World War II-era barracks-style homes that have stood since 1941 and create a modern, mixed-income development in its place.
“There’s a lot of improvement we can do for this community, mostly for the kids who are growing up here,” said Johan Soto-Santa, development and revitalization manager for the housing authority.
According to city officials, the project would redevelop the current public housing, while also incorporating new development of housing for various income brackets.
Officials stated that Hoverter Homes was chosen first for renovation, over Hall Manor, another of the city’s public housing complexes, because it is older and smaller in size. However, there are plans to include Hall Manor in future projects, according to the city.
Over the next two years, the housing authority and the city will work with Chicago-based urban planning firm COLLABO to engage with the South Harrisburg community and receive input, while putting together a formal plan.
The authority will hold several public meetings, this year and next, for community members to share their thoughts on changes they’d like to see at Hoverter Homes and Hall Manor. Dates and times for those meetings are to be determined.
City OKs Apartment Project
An apartment project near the new federal courthouse in Harrisburg received the green light last month to move forward.
Harrisburg City Council approved a land development plan for the Savoy, 48-unit apartment building proposed for the 1500-block of N. 6th Street.
Harrisburg-based Vice Capital, a firm headed by retired NFL running back LeSean McCoy, plans to demolish three existing buildings at 1522, 1524 and 1526 N. 6th St.
The developer then plans to construct a four-story, 62,370-square-foot building that will include a mix of studio, one-bedroom and two-bedroom units. Ten of the units will be designated as affordable. The project also will include first-floor commercial space.
Construction of the $8 million project is expected to begin in mid-to-late summer and will likely take a year to complete, according to Jonathan Bowser, managing partner of Wormleysburg-based Integrated Development Partners, the project’s general contractor.
Cork & Fork Changes Hands
One of downtown Harrisburg’s most popular restaurants has new ownership, but patrons shouldn’t see too much change.
Restaurateur Josh Kesler, owner of the Millworks in Midtown, recently purchased Cork & Fork, alongside partners Patrick Garrity and John Laporta.
“It’s a great existing brand and restaurant in downtown Harrisburg,” Kesler said. “It seemed like a really good fit.”
Kesler said that he purchased both the business, from Harrisburg-based Nourish Hospitality Group, and the building, located at State and N. 2nd streets. He explained that, as his management group continues to expand, purchasing Cork & Fork seemed like a natural addition.
While Kesler plans to make small adjustments to the business behind the scenes, he said that nothing on the customer-facing side will change.
In December, Café Fresco Center City owner Brian Fertenbaugh purchased the Cork & Fork Osteria in Hampden Township with plans to make it a Mediterranean-style restaurant.
Fertenbaugh said that he plans to name the new restaurant Aura Modern Mediterranean and is currently renovating the building to fit the new theme.
He expects to open in early May for dinner, possibly rolling out lunch and Sunday brunch menus in the following months. Award-winning chef of the York and Baltimore areas, John Walsh, will also join the team.
East Shore Y Ponders Renovation
You can exercise, swim and take your kids to the East Shore YMCA, but in the coming years, you may be able to do a lot more there.
Local Y officials announced recently that the organization is considering significant renovations and changes to its historic facility, which would increase its role as a community hub.
“We hope to end up with a modern YMCA with services Harrisburg can enjoy,” said Harrisburg Area YMCA President and CEO David Ozmore.
Ozmore painted a picture of an aging East Shore Y that also faces significant financial challenges due to the pandemic. The remodel would aim to boost its economic situation and bring the building up to date.
The Y, located along N. Front Street downtown, dates back to the 1930s when it was built and opened to the public. The wellness center was added onto the building in 2003. In total, the Y owns 2.3 acres of land, making up almost an entire city block.
Possible renovations may include changes to the current wellness center, which is elevated over the parking lot, and the Y’s administration building adjacent to the main recreational center.
The main building is considered historical and therefore will not undergo significant changes, Ozmore explained.
The Y is working with national firm Gro Development, which provides services to nonprofits, especially YMCA’s, around the country.
The Y has put together a task force of around 20 community members to help advise the organization on development.
“At the end of the day, it’s not about what the Y wants, but what the residents need,” Ozmore said.
Home Sales Dip, Prices Rise
Home sales slowed but prices ticked higher in the latest report on previously owned houses in the Harrisburg area.
For the three-county region, 368 homes sold in February compared to 456 in the year-ago period, as the median sales price increased to $234,950 from $227,000, according to the Greater Harrisburg Association of Realtors (GHAR).
In Dauphin County, 179 homes changed hands versus 233 in February 2022, while the median price rose to $205,000 versus $193,550 last year, GHAR said.
Cumberland County had sales of 157 homes compared to 196 in the prior year, as the median sales price was nearly unchanged at about $270,000, according to GHAR.
In Perry County, 23 houses sold, an increase of three, as the median price rose to $215,000 versus $189,900 in February 2022, GHAR said.
The pace of sales was similar year-over-year, as “average days the market” rose to 30 days compared to 29 days the prior February.
County Primary Field Set
The primary ballot for Dauphin County seats is set, with candidates running unopposed for commissioner and for several row offices.
For commissioner, Republican incumbents Mike Pries and Chad Saylor are running unopposed for the party’s two nominations. Likewise, incumbent George Hartwick and challenger Justin Douglas are running unopposed on the Democratic side.
Incumbent District Attorney Fran Chardo, Sheriff Nick Chimienti, Controller Mary Bateman and Register of Wills Jean Marfizo King are all running unopposed for Republican nominations. No Democrats filed for these races.
For clerk of courts, Republican John McDonald is running unopposed, as is Democrat Bridget Whitley. For recorder of deeds, incumbent Republican Jim Zugay is running unopposed, as is Democratic challenger Tami Dykes. County treasurer also has two unopposed candidates: Republican Nick DeFrancesco and Democrat Fred Faylona.
The municipal primary is slated for May 16.
So Noted
Christy Zitsch last month was named the economic development manager for Cumberland Area Economic Development Corp. In this role, she assists local businesses with expansion, retention and attraction, according to CAEDC.
Erik Wiedman of Mechanicsburg has been promoted to director of counseling services at Reach Cyber Charter School, an online public charter school. In this position, Wiedman, along with the school’s leadership team, monitors students’ career readiness growth, ensures accessible graduation pathways, and oversees academic progress for nearly 7,000 students.
Garden plots of varying sizes are available this spring for free at the Atlas Street Garden, located in the 2200-block of Atlas Street in Harrisburg. Free parking and water are available on site. Interested gardeners should contact Dan Miller at danmillerhbg@gmail.com.
Harrisburg University’s Center for Innovation and Entrepreneurship held a ribbon-cutting last month for its new location inside Strawberry Square in downtown Harrisburg. The large space offers founders—the entrepreneurs who are invited into the incubator—residency to develop their business ideas for up to 18 months, financial assistance, coaching and student interns, according to HU.
Terese Delaplaine has been named the new president and CEO of Harrisburg-based Hamilton Health Center, replacing longtime CEO Jennine Peterson, who has moved into a consultant role. Previously Hamilton Health’s chief compliance officer, Delaplaine is joined by a new leadership team of Steve Ho as chief operating officer, Frackson Sakala as chief financial officer and Mary Elizabeth Bebe as chief clinical officer.
Changing Hands
Adrian St., 2435: I. & K. Mita to K. Weldeghebrial, $111,500
Bailey St., 1245: J. Jimenez to People First Homes LLC, $82,875
Balm St., 147: C. Wise to J. Shurns, $92,000
Bellevue Rd., 1841: PNC Bank to R. Escano, $80,000
Berryhill St., 1422 & 1424: R. & D. Waibel to V. Aguirre, $55,000
Berryhill St., 1643: C. Porter to A&K Investments Partnership LLC, $62,500
Briggs St., 205: BD Property Management LLC to J. Gjieli, $167,000
Briggs St., 217: C. McNelis to M. Shugars & P. Dee, $200,000
Briggs St., 1716: M. Mesa to HBA Landscaping LLC, $75,000
Camp St., 538: D. McNair to Camp St Investments LLC, $74,700
Catherine St., 1624: First Choice Home Buyers LLC to M. & D. Braktia, $53,000
Chestnut St., 1944 & 1948: J. Medina to Triple B Realty Group LLC, $180,000
Crescent St., 235: G. Neff to Saintelia Properties LLC, $108,000
Crescent St., 251: D. & R. McLean to D. Boyle, $62,000
Curtin St., 537: Brothers Group LLC to E. Megbaje, $145,000
Curtin St., 626: Sangrey Properties LLC to Lafite Investments LLC, $75,000
Derry St., 1327: J. Castillo & R. Mendez to R. Mendez, $103,713
Derry St., 1329: M. Nichols to N. & J. Monegro, $92,000
Duke St., 2444: M. Moyer to C. Lozano, $104,000
Dunkle St., 539: J. Zandieh to L. Johnson, $125,000
Forster St., 264: K. & E. Meckes to PDI Properties LLC, $180,000
Green St., 2129: Sangrey Properties LLC to Leachman Properties LLC, $140,000
Green St., 2225: O. Dawes to J. Sumner, $129,000
Hale Ave., 402: M. & B. Marsico to F. Alvarez, $100,000
Hale Ave., 427: D. & C. Taylor to K. Maxwell, $126,000
Herr St., 1621: N. Lawson to SPG Capital LLC, $57,000
Hummel St., 434: Rumers Corp. to J. & E. Aziza, $120,000
Kensington St., 2266: A. Tilghman to H. Alcantara, $77,327
Logan St., 2216: C. Salazar to O. & S. Malcolm, $70,000
Luce St., 2367: E. & B. Horting to A. & T. Botek, $87,500
Meadowlark Pl., 182: V. Ross to R. Ramos, $70,000
Moore St., 2135: R. Reyes to A. Bouhach, $69,000
North St., 261: M. Henao to J. Manning, $177,500
N. 2nd St., 1013: V. French to S. & J. Toole, $125,000
N. 2nd St., 3237: R. Lysaght to H. & J. Loughery, $235,000
N. 3rd St., 1724: J. Montone to RS Rentals LLC, $222,000
N. 3rd St., 1828: Dakar Realty Inc. to PDI Properties LLC, $170,000
N. 3rd St., 1830: Dakar Realty Inc. to PDI Properties LLC, $170,000
N. 3rd St., 2007: Young Advocate Program to Portee Properties LLC, $299,000
N. 3rd St., 2319: DAG EKG Properties LLC to J. Alfaro, $165,000
N. 4th St., 2104: Gold Key Properties LLC to R. Chevalier, $109,900
N. 4th St., 2412: T. Carlson to J. Zapata, $135,551
N. 5th St., 1702A: S. Kent to Montalvo Investments LLC, $92,000
N. 5th St., 2536: Mainline Funding Group Inc. to D. Boyle, $67,000
N. 7th St., 2512: D. Boyle to M. Perez, $46,000
N. 7th St., 2640: Riley Residential Real Estate LLC to V. Butts, $76,000
N. 12th St., 43: Neidlinger Enterprises to M. & J. Raabe, $125,000
N. 16th St., 921: Equity Trust Co. Custodian FBO Beatrice McQuarrie IRA to PA Deals LLC, $100,000
N. 16th St., 1220: B. Debeljak to S. Ruiz, $128,000
N. 17th St., 27: R. Staff & L. Dunkle to F. Ramirez, $45,000
N. 17th St., 32: R. Luu & C. Sun to C. & I. Castro, $87,500
N. 18th St., 714: E. Sanchez & R. del Hidalgo to A. Ortiz, $85,000
N. 18th St., 822; 3154 N. 6th St. & 2028 Susquehanna St.: Sangrey Properties LLC to J. Tang, $122,500
N. 18th St., 1010: Neidlinger Enterprises LLC to M. Lebowitz, $135,000
Penn St., 1702: T. Underkoffler to T. Todd, $205,000
Penn St., 1929: R. Sterner to F. Deckter, $125,000
Penn St., 2115: J. Russell to Equitable Rentals LLC, $46,500
Penn St., 2154: Great Row LLC to J. Yingling, $70,000
Penn St., 2312: JRP Transportation LLC to C&A Fix Hold & Flip LLC, $103,000
Radnor St., 102: Renovations RE LLC to DelGiorno Investments LLC, $99,000
Radnor St., 674: S. Merritts to Lafite Investments LLC, $47,500
Reel St., 2417: Brookside Premier Properties LLC to W. Newton & J. Gainer, $75,000
Reel St., 2437: Endurance Capital Management LLC to D. Boyle, $50,000
Ross St., 617: D. Lansanah to SPG Capital LLC, $52,500
Ross St., 653: McNelis Gutter Cleaning Inc. to Sale Lizard LLC, $130,000
Royal Terr., 109: L. Bedon to E. Camones, $50,000
Seneca St., 216: J. Alibrio to J. Peters, $48,000
S. 9th St., 1125: J. Halkias to DB Real Estate & Properties LLC, $250,000
S. 13th St., 1516: S. Rodriguez to B. Arias, $128,000
S. 18th St., 211, 225; 2618 Atlas St.; 408 Moon Alley.: J. & S. Tang to Luce St Warehouse LLC, $122,500
State St., 231, Unit 402: M. & M. Vaccaro to B. Waxman & J. Wertheimer, $170,000
Swatara St., 1235: M. & M. Orellana to C&P Property Management Inc., $77,000
Swatara St., 1507: Tri County HDC Ltd. to T. Millovich, $116,000
Swatara St., 1509: Tri County HDC Ltd. to D. Taylor, $116,000
Swatara St., 2054: J. & G. Avila to M. Lopez & O. Perez, $55,000
Sylvan Terr., 125: S. & J. Rhoades to Triple S Real Estate LLC, $165,000
Verbeke St., 114: A. Labs to Silverstone Enterprises LLC, $88,400
Vernon St., 1306: JCAS1 LLC to KS Homes of PA LLC, $231,000
Walnut St., 228: RRF Building LLC to 1422 Route 179 Florida Realty LLC, $13,130,000
Washington St., 105: BD Property Management LLC to A. Cruz, $134,900
Harrisburg property sales, February 2023, greater than $40,000. Source: Dauphin County. Data is assumed to be accurate.
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