In case you missed it, I took a month off from my publisher’s column to start 2015, in favor of Paul Barker’s excellent analysis of the research skills that are a necessary part of honest and engaged journalism. Apparently, though, local media took little notice of Paul’s story.
Instead, our area’s largest paper started off 2015 where it left off in 2014—with a continued assault on all things Harrisburg, this time with claims about a supposed negative business climate.
In an editorial, PennLive’s opinion-writers attempted to link three unrelated decisions, two of which took place at least two years apart and one that has been under discussion for decades. The first, Harrisburg City Council’s refusal to sell the Keystone Products building on Cameron Street to Appalachian Brewing Co. (ABC) for $1, took place in 2012 under the Thompson administration.
The second was the Harrisburg Zoning Hearing Board’s December 2014 refusal to grant a variance to a proposed distillery in Midtown. (See Larry Binda’s Jan. 7 blog post at www.theburgnews.com.)
The final knock was directed at Mayor Papenfuse and the fulfillment of his campaign promise to update the city zoning code. The zoning code update had, in fact, been in process for decades under three administrations and countless reviews.
From these unrelated stories, the writers concluded that Harrisburg was hostile to entrepreneurship and that somehow Mayor Papenfuse and other city officials were to blame. This argument struck me as contrary to my observations and experience over the past year. So, taking Paul’s advice, I did a bit of research and called the affected parties.
First, I spoke to Adam Meinstein who owns Transit Park on the site of the old U.S. Post Office. Adam said he is “thrilled” with his investment in Harrisburg, has more than 450 daily users of his “low-cost” commuter lot (mostly Amtrak commuters) and is expanding capacity to nearly 900 spots, some of which will be under cover. In addition, he has active interest from commercial/industrial tenants for the renovated building on his site. His initial concern with the new zoning code involved a technical matter that his current use is permitted as a “pre-existing condition” and not as a “right” under the code that could theoretically impact value down the road. Nonetheless, the code does not impede his current business, his plans for further investment or his enthusiasm for his first time doing business in our city.
Next, I spoke to Alan Kennedy-Shaffer about his plans for a distillery. Not unexpectedly, Alan and his partner were not pleased with the zoning board’s decision, but Alan said that he remains personally “as committed as ever” to Harrisburg. Knowing Alan’s commitment to the city, my guess is that he will keep working hard on his plans and try to come back again at another city location.
I also spoke to a member of the zoning board who confirmed Larry’s reporting that—far from a rash rejection of the distillery—the board (made up of citizen volunteers) stressed their duty for a thorough review to make sure that the plans comply with the law. They encouraged the pair to re-submit their plans with additional detail with the hope for an eventual approval at the proposed site or another.
Finally, the 2012 ABC issue revolved around the value of a parcel of real estate. Regardless of past decisions by former government officials, the Papenfuse administration confirmed to me that it is now willing to sell the property for $1. City economic development officials and the mayor also told me that they are in active discussions with ABC about jointly seeking outside grants for the necessary site work and expanding their brewing operations, something that would create “scores of jobs” if successful.
I find it ridiculous to pin a two-year-old decision on the new mayor or new council. Moreover, editorial writers should realize that a business that starts in the city and then expands to the suburbs (like ABC) is not a sign of city weakness, but can be (and in this case is) the sign of a strong brand being built here and then taken on the road to greater heights for the mutual benefit of both.
There are many other signs of robust entrepreneurial spirit throughout the city.
Just to the north of ABC at Cameron and Herr streets, Moran Industries stepped in last year to buy a building on a formerly failed development site. Moran is now investing millions to finish the building and grounds, turning a former eyesore into a handsome new operating complex for its trucking and logistics business.
Likewise, since the Papenfuse administration took office last January, there are at least five new restaurants representing several million dollars in total new investment throughout the city (underscoring also that the new parking rates have had little impact in the decision-making of new restaurant openings).
One of these is Josh Kesler’s complete renovation of the long-vacant Millworks building across from the Broad Street Market. Josh told me that the Millworks will house 23 artist workspaces, a new indoor/outdoor beer garden and farm-to-table restaurant when it opens in early March.
Several other new businesses with good paying jobs, such as WebpageFX, have moved their employees into the city. Co-owner Bill Craig said that his move to the city has greatly helped with recruiting. He said he’s received about 500 more applications for his rapidly growing company, up 20 percent from the year before.
“We grew 50 percent last year, so finding technical marketing talent is one of our keys to maintaining our current growth trajectory,” Craig told me. “Many of the applicants are from other cities and from outside of central PA, which we would not have received if we didn’t move to Harrisburg.”
The company has grown tremendously since its move just 11 months ago, and the 70-plus employees “love the city,” Craig said.
Demand for apartments and condos is also rising. Brickbox opened its new for-sale condos at LUX (3rd and State streets) and is more than half sold out. WCI Partners (where I am a partner) has noticed increased demand for apartments and townhomes and a new willingness on the part of many people to “give the city another try” after moving out during the Thompson administration, in the words of several of our new residents.
Much more remains to be done, and a half-century of population decline will not be reversed quickly or without great effort or smart policies that encourage investment. However, this renewed enthusiasm points to business confidence in the Papenfuse administration.
A modest suggestion for those who get paid to give opinion about the city would be to actually talk to business owners before writing about city business. It may just give pause enough before reflexively propagating inaccuracies about our little city from across the river.
J. Alex Hartzler is publisher of TheBurg.
