
The Heinz-Menaker Senior Center
Harrisburg City Council has extended the city’s tax abatement program for another year, while weighing a plea for financial support for a senior center.
On Monday, City Council approved the extension of the Local Economic Revitalization Tax Abatement (LERTA) program, which gives tax break incentives to developers, while also questioning its success.
“We want time to be able to convene a committee, that will involve council as well, to talk about the LERTA, whether the LERTA has been as successful as we want it to be over the last 10 years,” said Gloria Martin-Roberts, interim director of building and housing development. “We need a year to just have that meeting to give us some time to be able to come up with a better LERTA.”
The city’s program was first approved by council in 2015, giving developers 100% tax abatement for 10 years for residential renovations and construction. Commercial and mixed-use projects were eligible for 50-100% abatement. However, to qualify, the city imposed certain requirements on new construction and commercial buildings, such as employing 15% minority businesses and 15% city-resident workers, and paying prevailing wage.
Over the years, the effectiveness of LERTA has been questioned by developers, some who say the requirements significantly raise the project cost, and city officials who see low numbers of developers erecting new buildings opting in.
At Monday’s meeting, Jason Graves, director of economic development for the city, shared that, in the past three years, only 43 out of 426 eligible projects applied for LERTA.
By extending the program, which was set to expire Dec. 31, officials said the city will have more time to move current applicants through the process, while brainstorming ways to improve LERTA.
Council voted 6-1 in favor of the extension, with council member Shamaine Daniels voting against it.
“There is a lot of work that needs to be done, and we do need the partnerships and it does need to be revamped, and the economic environment we are in is significantly different from the one we were in in 2015,” Daniels said. “So, giving us this time to work on a better bill is more valuable than simply extending something that’s kind of halfway working.”
Also on Monday, several staff and supporters of the Heinz-Menaker Senior Center in Harrisburg spoke during public comment on a city proposal to award the center a significant grant. They explained that, without the money, the center may close.
At a November council meeting, the city proposed awarding the senior center $250,000 of its share of federal American Rescue Plan Act (ARPA) funding that it received as COVID relief.
In March, council voted to move a large chunk of its multi-million grant into the city’s general fund, but earmarked portions of the money for specific uses. One of those allocations was the $250,000 for senior programming.
While the city administration has proposed giving 100% of that allocation to the Heinz-Menaker Senior Center, claiming it’s the only senior center in the city, council pushed back on the idea. Several council members said that they believe there should’ve been a process for organizations to apply for the money. Some council members also suggested that the way the proposal was introduced to council wasn’t fully transparent, as the allocation was lumped into another resolution for budget reallocations.
“This isn’t questions we are asking just particularly of the Heinz senior center, we’ve asked these process questions as far the ARPA money about every program,” said council member Ausha Green.
At that meeting, council members also questioned whether Martin-Roberts, the department head, was on the senior center’s board of directors.
Sheila Dow Ford, speaking on behalf of the center, has since said that Martin-Roberts was previously on the board, but has not been since she has been a city employee.
Ultimately, council decided to remove the allocation for Heinz-Menaker from the resolution.
In a press release following the November meeting, the city held their position that Heinz-Menaker was the only “viable contender” for the money. They stated that, out of four senior centers listed on Dauphin County’s website, Heinz Menaker was the only one certified by the county and city and providing social, cultural and health-related services.
At Monday’s meeting, Les Ford of Heinz-Menaker said that, without the money, the center would not be able to continue operations.
“We don’t have funding to go beyond Dec. 31,” said Ford. “If we don’t get some additional funding from somewhere, by the 31st of December, we are in no position to continue to operate.”
After hearing comments from Heinz Menaker supporters, council member Jocelyn Rawls said that she isn’t against giving the center money, but rather has concerns about how the decision was made.
“It was never that I didn’t think you all deserved funding, that wasn’t it,” Rawls said. “My concern was, why is it that Heinz Menaker Senior Center was the only senior center to get the $250,000? They were going to get all of it.”
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