A buyer identified for bankrupt Governor’s Square development

Photo by Dani Fresh

A blighted and bankrupt affordable housing development in Harrisburg may soon be under new ownership.

Uptown Partners, the owner of the Residences at Governor’s Square, has identified a potential buyer for its 200-plus rental units.

According to court documents filed late last week, the owner identified New Jersey-based real estate company ANCDI as the proposed buyer. The company made an offer of $9.6 million at a Jan. 10 auction.

Uptown Partners filed for Chapter 11 bankruptcy and, for months, has sought out a buyer for the beleaguered properties in the area near Maclay Street and N. 5th Street, which have received hundreds of city code citations and condemnations over the past several years.

ANCDI’s bid would also include payment of all real taxes, payments in lien of real estate taxes, water, trash and sewer bills and payment of a 5% buyer’s premium.

The buyer would also assume about $8.9 million in debt from a loan that was awarded to the owner from the U.S Department of Housing and Urban Development, through the Harrisburg Redevelopment Authority.

ANCDI provided proof of funds to close and proof of additional funds to renovate, repair and make improvements at Governor’s Square, according to the documents.

While Hilco Real Estate Sales, which was employed by Uptown Partners to find a buyer, initially received five offers for the property, only three made bids during the auction. In addition to ANCDI, 2087 Market Street LLC offered $9.5 million for Governor’s Square and Woda Cooper Companies, an Ohio-based affordable housing provider, offered $9.1 million.

2087 Market Street LLC was selected as the backup buyer.

Neither ANCDI nor 2087 Market Street LLC could be immediately reached for comment.

On Tuesday, an attorney with the Community Justice Project, a nonprofit legal assistance firm for low-income residents, filed an objection to the sale motion, on behalf of three people, Monique Bryant, Anita Hall and Deborah Taylor, two of whom hold tenant leases at Governor’s Square.

In the filing, they objected to the language in the motion that states that the property should be sold “free and clear of all liens, claims, encumbrances and other interests.” This wording, the filing says, may allow the property to be sold free of and violate restrictive covenants that currently require the units to remain affordable. The objection also states that the language may allow Governor’s Square to be sold free of current tenant leases.

The objectors also oppose the sale to ANCDI, stating that the company “has no HUD property subsidized housing experience whatsoever.”

However, according to a narrative by ANCDI owner Charles Howard, which was attached to the objection documents, the company has “decades of experience” working with tenants with housing choice vouchers.

He also stated in the document, signed on Nov. 28, that there is no plan to change existing use, requiring any changes to deed restrictions.

Howard also explained in the narrative that ANCDI would own and operate Governor’s Square and would not use a third-party management company.

“I look forward to working with you and building a neighborhood worthy of the name Governor’s Square,” he said in the document. “I believe the public investments on 6th Street can be matched with our private investment and sweat equity building a fantastic future for Harrisburg.”

Uptown Partners also previously filed a motion to sell four of its units to Homeland Center in Harrisburg. The center, located on N. 6th Street would obtain four units near its building on the 500-block of Peffer Street. According to a previous filing, Homeland was given a right of first refusal to purchase the properties for $1 as part of a tri-party agreement formed with Uptown Partners and the Redevelopment Authority in 2006.

A final bankruptcy court hearing to approve a buyer is slated for Jan. 30 in the in U.S. Bankruptcy Court for the Middle District of Pennsylvania.

According to the court documents, closing on the sale within 20 days of the Jan. 19 filing.

 

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Historic preservation priorities announced for 2024, William Penn tops list

William Penn High School (illustration: Rich Hauck)

A Harrisburg school building tops a list of local “preservation priorities,” as an area historic preservation group has unveiled its annual list.

On Monday night, Historic Harrisburg Association (HHA) detailed its list of endangered historic structures in the greater Harrisburg area.

“By compiling this list and publicizing it, it has played a very significant role in encouraging these important properties to be preserved,” said David Morrison, HHA’s executive director, reflecting on past efforts.

In an hour-long presentation, HHA board President Jeb Stuart outlined the group’s priorities for 2024, with the former William Penn High School topping the list of preservation priorities.

Last year, the Harrisburg School District proposed demolishing the century-old school, which has been vacant and deteriorating for over a decade. That proposal met pushback from the community and alumni, resulting in the appointment of a task force to weigh other options for the building and property. Those options are due to be presented imminently to district officials.

“There is agreement that the property can be saved and should be saved,” said Morrison, who sits on the task force. “I think there’s a good chance that a good outcome will result from this effort.”

The sprawling Harrisburg State Hospital complex, located mostly in Susquehanna Township, was second on the list. The commonwealth had been trying to sell the property, with Dauphin County as a proposed buyer, but that deal later fell through.

The Broad Street Market takes the third spot on the list. Last year, a fire devastated the market’s 150-year-old brick building, which has been shuttered since. The older stone building remains open, but reconstruction has not yet commenced on the brick building’s restoration, which could take years.

“We hope to work very closely with the city and with the Pennsylvania Historical Museum Commission in making sure, to the extent possible, that this [fire-ravaged] section of the brick building will be rebuilt as it was,” Stuart said.

The fourth “preservation priority” was the former Camp Curtin Memorial Mitchell UMC Church. In 2021, a local developer purchased the church from the Susquehanna United Methodist Conference, proposing to redevelop it into housing. That project didn’t occur and, just last month, the church was sold to a Lancaster-based congregation called Ministry Int IPDA.

HHA listed two vacant Harrisburg firehouses as the fifth “preservation priority.” Sale of the Riverside Firehouse has been in limbo for years, as it sits on two different property parcels that have not yet been consolidated. Likewise, the Paxton Firehouse in Shipoke has long been empty, despite an attempt two years ago to turn it into a facility serving the homeless population.

HHA’s top-five preservation priorities differ significantly from last year’s when the Market Street Bridge topped the list, followed by Balsley House, a dilapidated, Federal-style building in downtown Harrisburg.

Moreover, HHA put about two-dozen buildings and structures on its “watch list,” meaning they’re historic properties of concern. These include the Market Street Bridge, Balsley House, Prospect Hill Cemetery Gatehouse, Zembo Shrine Center, the Walnut Street Bridge, Grace United Methodist Church, former Coca-Cola bottling works and several Front Street mansions, among others.

Balsley House

HHA’s 2024 “Preservation Priorities” was drafted by the organization’s preservation committee and still must be approved by the full board.

“When we publicize [these properties], sometimes it spurs the owner into doing something about it. Sometimes, it spurs somebody to look into purchasing the property,” Morrison said. “So, it’s a very effective tool for promoting historic preservation.”

You can watch Historic Harrisburg Association’s “Preservation Priorities” presentation on their Facebook page. The video also will be posted on their website.

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The Week that Was: News and features around Harrisburg

Young Professionals of Color is one group where Harrisburg newcomers have found social connections and friendships.

If you have cabin fever, we have the cure. Pick up our January issue and try your hand at one of our puzzles. We have plenty of online distractions, too, including a full week of news and features, which we’ve compiled right here.

Breadcoin is a new option in the Harrisburg area to help the food insecure, says our magazine feature. A bonus: it also helps support area businesses and the community as a whole.

Broad Street Market has organized a bakeoff in the hopes of raising necessary funds, according to our online story. You can show your support for the market during the Saturday event.

Flexibility is increasingly identified as a key to good health. Our magazine feature stretches out the benefits, with our reporter sampling a few area programs.

Harrisburg Symphony Orchestra is featuring the Dali Quartet next month, as it diversifies its Masterworks series, says our magazine story.

A hearty pasta dish may be just the recipe for a cold winter night. Our food writer suggests a relatively simple meal, with added zing from a very small fish.

Home sales and prices in the Harrisburg area were generally in line with a year ago, our online story reported. Click here for the latest data.

Making friends can be tough, especially for adults who find themselves in a new city. In Harrisburg, numerous groups fill the gap, helping to make connections for the many newcomers here, says our magazine story.

Nutritious eating may be among your New Year’s resolutions. If so, a local company, Clean Eatz, makes it easy and convenient, according to our recent magazine feature.

Sara Bozich has her usual long list of local events for the weekend. Check out her Weekend Roundup for a warm place for good food, drink and entertainment.

Smith Fine Art & Fine Custom Framing is a local landmark that supports area artists and offers great framing services. Learn about their lengthy history in the Harrisburg area and their continuing mission in our magazine story.

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Weekend Roundup with Sara Bozich

Plan your weekend with my weekly list of things to do around Harrisburg and central PA!

 

What you’ll find ⤵️

For something new: Dave’s Hot Chicken opens Friday Worth noting: Friday is 3rd in the Burg!! Explore Harrisburg — from downtown through Midtown! Things on my agenda this weekend: SoMa Pop-Ups tonight and tomorrow for 3rd in the Burg!

For your weekend planning

Below are more options for your weekend.

A Look Ahead

  1. WIN tickets to see HU Presents JOSEPH on Jan. 26!
  2. Submit your events for the Weekend Roundup

Thursday

Friday

Saturday

Sunday

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Broad Street Market to hold bake-off event this weekend to help raise funds

The Broad Street Market will hold a fundraiser this weekend as it attempts to  plug a hole in its operational budget.

On Saturday, the market will host “The Great Broad Street Bake-Off” to raise funds for the market’s revival. The event will be held from 11 a.m. to 4 p.m.

In July, a devastating fire closed the market’s brick building, displacing about two-dozen vendors. As a result, market revenue has plummeted by about 70%, according to the market.

Saturday’s event will try to recoup some of that lost revenue.

The market had planned to nearly double vendors’ rents to raise more money, but, last week, the board rescinded that decision.

The event will feature three vendors—Lil’s Pretzels, Lovedraft’s Express and Piper Belle’s Wood Fired Flatbreads—as well as other areas businesses, such as Pennsylvania Bakery, Las Delicias Restaurante ad Cece’s Cake Shop, which will all showcase their culinary talents and creations, according to the market.

The event is free, but the market is requesting a suggested donation of $5 per person. The goal is to raise about $5,000 to help the market financially.

It’s estimated that market is running a deficit of about $10,000 per month.

“Every contribution, big or small, will make a significant impact on rebuilding this vital community space,” according to the market’s event announcement. “We invite everyone in the community to come together, enjoy a pie-filled day, and contribute to the future of Broad Street Market.”

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The Week that Was: News and features around Harrisburg

Vendors spoke at a Broad Street Market board meeting this past week.

There’s cold weather coming, making it a perfect time to warm up inside while catching up on your Burg reading. Grab a copy of our January magazine if you haven’t yet and get up to speed on our weekly news coverage below.

The Broad Street Market’s board of directors voted to temporarily halt a plan to increase vendors’ rent by almost double, our online story reported. The decision came after numerous vendors and community members attended this week’s board meeting to oppose the raise.

Catherine Hershey Schools for Early Learning opened the application process for its Harrisburg location, which is being developed at N. 6th and Muench streets, our online story reported. The center is an arm of the Milton Hershey School and will offer free care and education to 150 low-income and at-risk children.

Central PA MLK Day of Service is right around the corner, our online story reported. The day will feature dozens of ways to serve the greater Harrisburg community in honor of the holiday.

Dovie Thomason has become a nationally and internationally renowned storyteller, our magazine story reported. The Lower Paxton Township resident shares her Native American origin stories with community groups, at festivals and in classrooms.

Events this weekend in Harrisburg range from live music to brewery tours to the PA Farm Show. Find Sara Bozich’s full roundup, here.

The Harrisburg Area YMCA’s Camp Curtin Branch announced that it would serve as the new home for the Harrisburg Area Food Pantry, our online story reported. Beginning on Feb. 5, the pantry will operate at the Y’s N. 6th Street location, offering food assistance to those in need.

Harrisburg has received one bid for electrical work at the Broad Street Market’s temporary structure, but no bids for plumbing, our online story reported. The city will review the electric contractor’s bid and will republish the plumbing job for bids.

Harrisburg University Presents announced that country music duo Maddie & Tae will perform at XL Live on April 13, our online story reported. HU Presents has additional concerts planned for the winter into the spring.

The LGBT Center of Central PA has a new interim executive director, our online story reported. Amanda Carter will take the leadership post, replacing long-time Executive Director Amanda Arbour.

“Monster” is an “artistic masterpiece and a tribute to humanity,” says our movie reviewer. The film, which tells the same story three times, each from a different perspective, will play at Midtown Cinema this month.

Nate Davidson, a Harrisburg resident and Pa. Capitol staff member, will launch his campaign as a Democratic candidate for the 103rd district House seat, our reporting found. He becomes at least the fifth Democrat vying for the open seat for the district.

Sharp opened recently in downtown Camp Hill, offering men a chance to get a custom fit and helping them to feel comfortable while shopping, our magazine story reported.

Vendors at the Broad Street Market signed a letter with a list of “actionable items” that demanded greater transparency and vendor involvement at the market, our online story reported. The business owners’ requests were in response to the market’s recent notice that vendors’ rents would be raised.

The William Penn building demolition is officially canceled, our online story reported. The Harrisburg School District decided instead to clean out and secure the building for future use.

 

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Harrisburg area homes sales slip, prices steady, says report

A house for sale in Harrisburg

Harrisburg-area home sales slipped while the median sales price inched higher in December, according to the latest monthly report on previously owned houses.

For the three-county region, 492 homes sold in December compared to 528 in the year-ago period, as the median sales price rose to $259,275 from $250,000, according to the Greater Harrisburg Association of Realtors (GHAR).

In Dauphin County, 245 houses sold, a decrease from 274, as the median sales price climbed to $243,500 from $225,000 the prior December, GHAR said.

Cumberland County had 210 home sales, a drop from 229, as the median price decreased to $284,950 versus $288,900 in December 2022, according to GHAR.

In Perry County, sales totaled 30 homes, an increase from 21 over the prior December, as the median sales price rose to $220,000 from $206,500, GHAR said.

The pace of sales was steady, as “average days on market” rose in December to 23 days versus 22 days a year ago, according to GHAR.

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Harrisburg Area Food Pantry to move operations to Camp Curtin YMCA

Harrisburg Area Food Pantry Executive Director Deidre Lenker packs bags for clients. File photo.

Two community organizations are teaming up to address food insecurity.

The Harrisburg Area YMCA’s Camp Curtin Branch announced on Friday that it would serve as the new home for the Harrisburg Area Food Pantry (HAFP).

Beginning on Feb. 5, the pantry, formerly called The Ecumenical Food Pantry, will operate at the Y’s N. 6th Street location, offering food assistance to those in need.

The pantry, which was previously located at Messiah Lutheran Church, has operated for over 51 years, currently serving over 3,400 clients monthly.

“The Board, volunteers and I are very excited to create a welcoming space for anyone needing food assistance,” said Deidre Lenker, the pantry’s executive director, in a statement. “We are grateful to the YMCA for providing this opportunity. We thank our many community supporters including a variety of community groups, faith-based organizations, foundations and individuals who have supported us through donations and volunteering over the years. With your support we can continue to meet this most basic human need.”

According to the Y, the HAFP is one of the largest food pantries in Dauphin County in terms of the volume of people served and it provides access to emergency food assistance at least five days per week. Clients may receive an emergency supply of food around every 30 days, and no vouchers or appointments are necessary.

The move will allow HAFP to serve the community in new ways, with access to parking, increased accessibility and a built-in collaboration with the YMCA, the Y shared.

According to Central Pennsylvania Food Bank data, Dauphin County has a food insecurity rate of 11.4%, representing 31,330 people.

“As an organization committed to healthy living, the YMCA’s collaboration with the Harrisburg Area Food Pantry allows our organizations to assist our community in providing nutrition and food security,” said Richard Utley, chair of the Camp Curtin YMCA’s board of managers. “We’re very excited to welcome the Harrisburg Area Food Pantry to our neighborhood.”

The organizations will hold a ribbon-cutting event at the Camp Curtin YMCA on Feb. 6 at 1 p.m.

For more information about the Camp Curtin YMCA, visit their website. To learn more about the Harrisburg Area Food Pantry, visit their website.

 

 

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Catherine Hershey Schools opens application process for Harrisburg location

A rendering of the future Catherine Hershey School for Early Learning in Harrisburg (credit: Catherine Hershey School)

A major, cost-free childcare and early education center in Harrisburg is now accepting applications for enrollment.

On Thursday, the Catherine Hershey Schools for Early Learning opened the application process for its Harrisburg location, which is being developed at N. 6th and Muench streets.

The center is an arm of the Milton Hershey School and will offer free care and education to 150 low-income and at-risk children, from 6 weeks to 5 years old. It will focus on providing kindergarten readiness programming and family support.

The 45,000-square-foot complex has been under construction for over a year and is expected to be completed later in 2024, at which time it will open to students.

It will be open weekdays, from 7 a.m. to 6 p.m., employing a play-based curriculum to enhance a child’s overall development and early education.

The Harrisburg location will be the second Catherine Hershey Schools for Early Learning in central PA. The first opened in Hershey last year, and another in Middletown is slated for 2025. Three additional schools—in Lancaster, New Danville and Elizabethtown—are expected to open in 2026.

Click here to learn more about CHS Harrisburg and to begin the admissions process.

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Broad Street Market pauses vendor rent increase after community pushback

Theo Armstrong, a market vendor, addressed the market’s board of directors at a meeting on Wednesday night.

A packed room cheered Wednesday night after the Broad Street Market temporarily halted a plan that has received significant community opposition.

The market’s board of directors voted to pause a rent hike that was announced by the market last week, after hearing pushback from frustrated vendors and community members at a board meeting.

“We got some wins for us and some wins for the market,” said Theo Armstrong, co-owner of Zeroday Brewing Co., a vendor at the market.

Early last week, the market’s stone building vendors were given notice from management that the board had voted to nearly double their rents, from $2.67 to $5.25 per square foot, on Feb. 1. According to the market, the raise would help make up some of the market revenue, which has dropped by 70% since the July brick building fire and closure.

Vendors reacted strongly to the news of the increase, stating that the change would further hurt their businesses, which were already suffering due to less market foot traffic following the fire.

“How does this get put on our backs as vendors? We’ve lost 70% of our business too,” said Josh Longo, owner of The Cheesesteak Guy.

A packed room of market vendors and community members at a board meeting.

At Wednesday’s monthly board meeting, dozens of community members and market vendors piled into a small room in the Historic Harrisburg Association building to share their concerns and ask questions.

Ultimately, the board decided to put the rent increase on pause to give them time to explore alternative fundraising efforts. Members discussed options such as temporarily cutting out marketing, public relations and special events funding. They also said that they would reach out to the city and utility providers to ask about deferring payments until the market is financially stable.

“There is a scenario, I guess is my question, in which we could make all of this balance and walk out of here with a plan to at least try to avoid the worst case scenario,” said Eric Hagarty, a new market board member.

Six market board members were present at the meeting, all voting in favor of the pause. Executive Director Tanis Monroy was not present at the meeting due to “personal reasons,” according to the board.

“Fundraising shouldn’t be left all to the vendors,” said Kevin Hancock, another new board member.

The board also voted to reinstate annual leases with vendors instead of month-to-month leases, after hearing input from vendors who were afraid that their leases could suddenly be terminated or altered.

Board members and vendors also discussed the need for vendors to elect two board representatives from among them to sit at meetings.

Currently, there are nine board members, including two who were elected on Wednesday.

The board also took input from vendors on possibly adding additional hours or days to the market’s current operational hours. Vendors were generally open to both ideas, stressing the need for consistent hours from vendors. However, no decision was made on Wednesday.

Dennise Hill, the city’s director of building and housing development, shared an update on the temporary market structure for displaced vendors. She said that the city has received a bid for electrical work, but none yet for plumbing. That bidding period for plumbing will remain open until Jan. 25.

After the three-hour meeting, Armstrong was tired and overwhelmed with information, but generally feeling better about the situation, he shared.

“The increase was put on hold, so I’m interested to see where that goes,” he said. “I think our main points were addressed.”

 

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