LERTA Hung Up
The Harrisburg City Council last month quashed an effort to revive a city tax abatement proposal, the second time in a month the administration failed to pass this economic development initiative.
At council’s first legislative session of the year, Councilman Jeffrey Baltimore tried to bring the bill forward for reconsideration, but his effort failed after a split council denied the motion.
The Papenfuse administration had hoped to pass a 10-year abatement for residential properties in the city under the Local Economic Revitalization Tax Assistance (LERTA) program. Under this bill, owners would not be taxed on the value of their property improvements for a full 10 years.
Two weeks earlier, Councilman Brad Koplinski successfully forced the proposal onto the council’s agenda over the objection of council President Wanda Williams. Council then tacked on 10 separate amendments to the Papenfuse administration’s original bill.
The administration balked at some of those amendments, particularly those that would make the LERTA graduated, so that the tax burden on property improvements would increase by 10 percent each year over 10 years.
After the bill was amended, the administration asked that it be withdrawn, citing a need to conduct a legal review.
By January, Koplinski appeared to have changed his position on the proposal, casting one of the three votes, along with Williams and Councilwoman Shamaine Daniels, which defeated the motion to reconsider the bill.
Mayor Eric Papenfuse vowed to try again to pass his proposal, which he regards as essential to revitalizing the city, which is full of vacant land and dilapidated buildings. If the council does pass a tax abatement bill, it also would have to be approved by Dauphin County and the Harrisburg school board.
Budget Shows Surplus
Harrisburg ended last year with a $5.3 million budget surplus, which it has carried over into 2015.
Finance Director Bruce Weber credited the surprise surplus to an administration directive that city departments spend less than they were authorized to spend. In addition to the surplus, the city paid down nearly all of the $4 million in outstanding 2013 payables that it inherited from the previous administration.
Moreover, the city met all its general obligation bond payments for the first time in three years.
In late December, the City Council approved a balanced 2015 municipal budget that did not raise property taxes but added several key positions. Fourteen more public safety personnel were funded under the $59.4 million budget, which also included a $2 million investment in the city’s sanitation program.
The 2015 budget also included hundreds of thousands of dollars in discretionary departmental accounts, which previously had been kept off-book. They were brought into the regular budget process for the first time in many years.
City Weighs TRAN
Harrisburg City Council last month considered authorizing a $4.5 million tax and revenue anticipation note (TRAN).
A TRAN is a form of short-term borrowing that municipalities often issue to cover lean revenue periods, allowing the city to pay its bills in the event of a cash shortfall until property taxes and revenues begin to roll in. In Harrisburg, for instance, cash flow often is weak until late March, when people begin to pay their city property taxes.
Three lenders bid on the city’s request for a TRAN, according to the Papenfuse administration. The TRAN is expected to cost the city a $1,500 legal fee and no commitment fee.
Last year, the council authorized a $2 million TRAN with a $10,000 commitment fee and a $5,000 legal fee. Ultimately, the city did not draw on the TRAN at all.
Distillery Rejected
The Harrisburg Zoning Hearing Board has rejected a proposal by two city residents to build a distillery in the heart of Midtown Harrisburg.
The board unanimously denied a variance to Alan Kennedy-Shaffer and Stanley Gruen, who wanted to locate a micro-distillery, Kennedy Spirits LLC, in the historic “Carpets and Draperies” building at 1507 N. 3rd St.
After two hearings, the board was unsatisfied with the evidence presented for the variance, which is needed because the area is not zoned for this use. The board urged the applicants to return with additional witnesses who could speak on behalf of their project at its next meeting this month.
The applicants, however, said a delay would jeopardize their financing. When asked if they wanted to continue the case to the February meeting, the applicants did not respond, and the board voted down the variance request.
Solicitors Confirmed
Harrisburg’s understaffed legal department received a boost last month, as City Council confirmed two new hires.
City Council unanimously approved the appointment of Douglas L. Walmer as deputy city solicitor and Marta Rifin as assistant city solicitor.
Walmer has worked for the city in an acting capacity since July and Rifin since August. They report to city Solicitor Neil Grover.
Equipment Purchased
Harrisburg last month acquired several pieces of heavy equipment to assist with sanitation and firefighting.
City Council approved the purchase of a used 2005 International Recycling Truck from the Borough of Shippensburg, Pa., for $15,400. The truck will assist in the city’s recycling program.
Council also directed the administration to purchase a used 2001 International Rear Loader Trash Truck from the Borough of Conshohocken, Pa., for $22,500. This truck will be deployed for trash collection.
Finally, the city agreed to acquire a 1996 Sutphen Tower Truck from Union Grove, Ala.-based Brindlee Mountain Fire Apparatus in exchange for four used fire trucks and $38,000.
Changing Hands
Bellevue Rd., 2301: D. & D. Dwyer to J. & D. Schroeder, $139,000
Berryhill St., 2247: S. Burner to PA Deals LLC, $56,000
Berryhill St., 2247: PA Deals LLC to MidAtlantic IRA LLC, $62,000
Calder St., 270: C. Martin & D. Zimmerman to JLS Rentals LLC, $30,650
Derry St., 2423: J. Green to E. Gmys, $62,900
Fulton St., 1726: PA Deals LLC to R. & K. Lloyd, $104,900
Green St., 1918: M. Kirk to J. Leahan, $147,000
Green St., 1934: WCI Partners LP to B. & J. Lentes, $201,000
Harris St., 213: 8219 Ventures LLC to Braxley Property Management LLC, $60,000
Kensington St., 2143: B. Ramper et al to P. Luna, $65,000
Kensington St., 2302: J. & K. Flynn to X. Weng & C. Yang, $41,000
Kensington St., 2412: L. Batista to J. Na, $54,000
Midland Rd., 2406: R. & A. Kurtz to S. Peterson, $123,500
Muench St., 315: S. Jusufovic to K. Mullen & T. Hawbaker Jr., $76,000
N. 2nd St., 1110: W. Moyer to MC Investment Properties LLC, $117,000
N. 2nd St., 1805: Members 1st Federal Credit Union to T. Pham & T. Nguyen, $32,000
N. 2nd St., 2410: T. Keyes to C. Bennet, $133,000
N. 2nd St., 2417: R. Hunsicker to Z. & J. Kashatus, $125,000
N. 2nd St., 3106: C. Hawk to M. Kaschock & S. Bryant, $46,500
N. 2nd St., 3305: J. William to J. England, $96,500
N. 3rd St., 3015: A. Montalvo to M. St. Vil, $75,500
N. 5th St., 3128: S. & D. Creek to S. Jawhar, $35,000
N. 7th St., 3116, 3120; & 630 Antoine St.: OLINC Limited Partnership to LNW, $247,500
Pennwood Rd., 3205: C. Lebo to T. & A. Wolfe, $96,000
Royal Terr., 145; 2716 Reel St.; 524 Radnor St.: Harlie Investments LLC to S. Maurer, $54,000
Rumson Dr., 281: S. Zimmerman to G. Burdsal, $65,500
S. 17th St., 248: Harrisburg School District to Pennsylvania Counseling Services, Inc., $680,000
S. Cameron St., 1201: W. Dealtrey & R. Bennett to H. Tran, $355,000
S. Front St., 331: I. & T. Heikel to L. Brice & P. Cappetta, $85,000
S. Front St., 575: W. & L. Renz to N. Hiltz, $165,000
State St., 200: WCI Partners LP to 200 State Street LLC, $580,000
State St., 231, Unit 301: LUX 1 LP to D. Scott, $149,900
State St., 231, Unit 404: LUX 1 LP to M. & K. Lastrina, $119,000
Swatara St., 2400: E. Johnson to G. Washington, $115,000
Verbeke St., 258: River Front Development Group LLC to J. Boyd & V. Brandler, $132,500
Wisconisco St., 630; 2605A N. 6th St; 2603 N. 6th St.; 2611 Reel St.: Aydel Investments LLC to S. Maurer, $72,000
Zarker St., 1942: Mussani & Co. LP to Next Generation Trust Services, $35,000
Harrisburg property sales for December 2014, greater than $30,000. Source Dauphin County. Data is assumed to be accurate.
