Vacant properties on N. 2nd Street in downtown Harrisburg.
A state-created panel that oversees Harrisburg’s finances wants to put $50,000 of its own money toward revitalizing downtown Harrisburg.
“It is such a spotlight issue with businesses relocating, retail relocating and restaurants closing, so there really needs to be a focus there,” Intergovernmental Cooperation Authority (ICA) Chair Doug Hill said of the downtown at a board meeting on Wednesday.
At the meeting, ICA board members gave the authority’s solicitor and authority manager the go-ahead to draft a contract that would give $50,000 in funding to the Capital Region Economic Development Corporation (CREDC) to be put toward an economic development plan for downtown Harrisburg.
Although CREDC, the economic development arm of the Harrisburg Regional Chamber, would control the money, Hill emphasized that the move was in “absolute partnership” with the city. Authority members said they will meet today with Mayor Wanda Williams and a legislative delegation to work through how the economic development plan will be developed.
“Who’s driving the train is a little bit of an open question, but for convenience, it makes sense to run it through CREDC,” Hill said at the meeting.
He further clarified the downtown focus does not indicate a lack of intent to develop a comprehensive economic plan for the entire city.
“That’s certainly part of the project, part of the goal set,” Hill said. “But the first focus, I think everyone’s coming to the conclusion, needs to be on the downtown.”
He said that Pittsburgh did something similar to what the ICA is shooting for—successfully, bringing in a local regional chamber to contract with an outside firm for a development plan. The plan focused primarily on Pittsburgh’s downtown and then the area’s general region. This later attracted additional investments from the state level, Hill said.
“We understand that Governor Shapiro is now engaged and has an interest in having the project move forward,” Hill added of the plan for Harrisburg.
Michael Cassidy, legal counsel for the authority, said that he thought that the ICA had the authority to make such a move because Harrisburg remains under Act 47 oversight.
“It’s my opinion that this authority can enter into agreements, whether with the City of Harrisburg or third parties, such as CREDC, that would be providing services for the benefit of the City of Harrisburg and its financial recovery,” Cassidy said.
Jeffrey Stonehill, authority manager for the ICA, suggested that the contract be written in such a way that the money can be forgiven “as a secondary action.” There would be no reason CREDC would give the money back to the ICA “other than failure to perform,” he noted.
Authority board member Kathy Speaker MacNett clarified that the $50,000 comes from the ICA.
“The ICA has operated on a miserly basis to say the least,” she said. “We have not spent a lot of money and, as a result, we have a surplus.”
She clarified that the ICA believes the plan could help the city.
“We, as the ICA, think this is important enough that we’re willing to put our money where our mouth is,” she said.
To learn more about the ICA, visit its website.
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