Harrisburg controller says city could repay bonds early, contradicting mayor

A screen shot of Harrisburg Controller Charlie DeBrunner during this week’s City Council meeting

Harrisburg should end the year with enough money in the bank to pay off its accumulated debt, according to a key city official.

Appearing before City Council this week, Controller Charlie DeBrunner told council members that his office projects a $34 million fund balance by year-end, which could be enough to pay off the city’s bonds, he said.

“I think it’s pretty clear that we can if this holds up,” DeBrunner said. “We’re not in the administration, so we can only see what’s happened, not what’s going to happen. We don’t have a crystal ball that the finance people and the mayor do.”

In contrast, Mayor Eric Papenfuse has repeatedly stated that the city does not have enough savings to pay off about $25 million in debt, plus settle ongoing city expenses and retain an adequate reserve fund of $11 million to $13 million. He’s also said that, with a healthy fund balance, the city would regain a credit rating and be able to re-enter the bond markets for the first time since defaulting on its debt a decade ago.

For months, Papenfuse has criticized council for refusing to act on his proposed bond refinancing, introduced in early June, which would significantly reduce the city’s general obligation bond interest rate, which currently stands at 6.75%.

Council President Wanda Williams and other council members have said that they want to use the city’s savings to pay off the debt all at once, as opposed to refinancing it.

DeBrunner told council members this week that, by paying off the debt early, the city could save some $14 million in accumulated interest over a planned 10-year repayment period.

The Intergovernmental Cooperation Authority, a body created by the commonwealth to help oversee Harrisburg’s finances, has urged the administration and council to meet to resolve their differences over financial data and to reach an agreement on a path forward. As of late last month, the two sides had not yet met.

Papenfuse has said that he welcomes alternatives to his refinancing plan, but council has not formally introduced legislation to pay off the debt in part or in full.

“I’m open to ideas,” he told TheBurg previously. “I haven’t seen anything on their part.”

Papenfuse this week said that, if council had acted in June, the refinancing could have been completed already, with the interest rate cut in half to the financial benefit of the city.

DeBrunner said that another bond payment is slated for January, so council could wait until then to see exactly how much savings the city has before making a decision on whether or not to pay off the debt.

The good news is . . . we don‘t have to do anything until we know,” he said. “We don’t have to pay any money until January 2022, so we’ll know exactly what we have then.”

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Democratic mayoral nominee Williams vows to re-initiate campaign, following grieving period

Wanda Williams speaks to the press on the night of the Democratic primary in May.

Harrisburg’s Democratic nominee for mayor says that she’s gearing up for the November general election, stating that her “campaign team is moving forward.”

In a statement released on Thursday night, Wanda Williams, currently president of City Council, said that she will re-initiate her campaign by “month’s end,” following a mourning period for her mother, Patricia Dockens.

“Since her funeral, just last week, we have worked as a family to persevere through this sudden tragedy,” Williams wrote in a press statement. “As anyone who has suffered the sudden loss of a parent knows, the mourning process won’t be easy or immediate, so your continued prayers of support are greatly appreciated.”

She then directly addressed the entry of current Mayor Eric Papenfuse into the race. On Wednesday, Papenfuse declared that he would run as a write-in candidate, having lost May’s Democratic primary election by 46 votes to Williams in a five-person race.

In her statement, Williams said that she was surprised by Papenfuse’s reaction in the months following the election, as he called her to concede on the night of the primary. Since then, he’s been increasingly critical of her and has cited concerns about her becoming mayor as a major reason for his write-in campaign.

Over the past few months, Papenfuse and Williams have clashed over such matters as a planned refinancing of city debt and the distribution of federal pandemic relief dollars, with each accusing the other of not returning calls and refusing to cooperate.

“The recent remarks made by the current mayor are in stark contrast to the sentiment of encouragement that was made to me when he conceded on May 18 after losing the primary election,” she wrote. “In fact, he was on the record in communicating his full support of my ability to lead the city of Harrisburg into the future and made several requests to be integrated on my transition team.”

The general election is slated for Nov. 2, though Dauphin County is expected soon to begin to distribute mail-in ballots. A Republican, Timothy Rowbottom, will also be on the ballot.

Williams’ entire statement follows:

First, I would like to take a moment to thank all the residents of Harrisburg, including many lifelong friends, and family for their outpouring of love, warm thoughts and condolences for the recent loss of my mother, Patricia Dockens. She inspired my commitment to the community and was a pillar whose example I’ve tried to emulate every day of my life. Since her funeral, just last week, we have worked as a family to persevere through this sudden tragedy. As anyone who has suffered the sudden loss of a parent knows, the mourning process won’t be easy or immediate, so your continued prayers of support are greatly appreciated. I look forward to resuming our campaign activities by month’s end.

The headlines have been intense over the past week and it’s important to me that I address the community with a balanced response.

The recent remarks made by the current mayor are in stark contrast to the sentiment of encouragement that was made to me when he conceded on May 18th after losing the primary election. In fact, he was on the record in communicating his full support of my ability to lead the City of Harrisburg into the future and made several requests to be integrated on my transition team. His absence throughout most of his term of office as an essential no-show was only exacerbated after the primary loss. Since his concession and offer to support my leadership, he has consistently obfuscated his responsibility as mayor leaving the City without leadership on the second floor. Now, when he should be supporting a smooth transition, he’s rushing to refinance bonds, spend down federal relief dollars and hire critical positions in the waning weeks of this administration with no regard for the sustained needs of the City.

Mr. Papenfuse is legally able to attempt a write-in campaign, however, I was hopeful that his voice of support would be one that I could count on when he shared his commitment to me as the only Democratic candidate.

Our campaign team is moving forward, and we are grateful for the endorsement from the Dauphin County Democrats, under the leadership of Chairwoman Rogette Harris, as well as the support of many of the candidates for Mayor who have all conceded and expressed positive reinforcement in my ability to lead the City of Harrisburg.

Through the course of my more than 20 years in politics, I’ve seen many attempts to quell the voices of Black women. I’ve seen attempts to ensure that women in politics do not have a proper stake in the conversations that are leading this city. And I’ve committed myself through this campaign to make sure that doesn’t happen any longer. The time is now to lift the voices of our small businesses, our urban centers, our schools, our communities, heal from the COVID-19 pandemic and take this city to the next level. I’m looking forward to building a broad-based coalition of support that is going to lead this city to the future.

The residents of Harrisburg finally have an authentic leader who is rooted in the community, who’s going to take input from the community, and going to ensure that this beautiful city of ours, lives, breathes and feels like the community it wants to become and has always meant to be.

I look forward to seeing you on the campaign trail very soon.

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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! Scroll down or use the menu links to find ideas for your weekend.

Need something NEW to do? Holy smokes (this is how I talk now) there are a lot of festivals going on. Art & Wine in Mechanicsburg, Wish Upon a Food Truck on City Island, Fall Fests at Ashcombe and Gray Apple Market. I also wouldn’t sleep on Savor or Carlisle’s Champagne Stroll (do both?)

(Still) Worth noting: Check out my private Facebook community, Cheers Harrisburg. You can join the convo here.

Things on my agenda this weekend: Some combo of Market/Farm/Talking Breads. Bo starts swimming lessons; a friend’s wedding

Don’t forget to support your local brewery! Click here to find one near you.

For your weekend planning:

Below are options for your weekend.

Things to Do in Harrisburg + Central PA | Weekend Roundup | Sara Bozich

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Top Weekend Recs

  1. Pick-up a perfect fall beer
  2. WIN a Lancaster Brewing Co. gift card – just in time for Oktoberfest!
  3. You need new shoes
  4. Refresh with an Anti-Aging Treatment at Moxy #selfcare
  5. Explore the best local markets
  6. Pick up a local 6-pack and stream ? episodes of Poured in PA: The Series

COVID-19 Disclaimer: Masking and social distancing policies may vary per business, venue, and event. Please be considerate, follow the rules, and be nice. And tip extra!

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Sunday


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Harrisburg-area home sales down slightly, prices jump in latest sales report

A house for sale in Harrisburg

Sales declined a bit, but prices increased considerably, as the area’s real estate association released its existing home sales report for August.

In the three-county coverage area, sales dropped to 810 housing units compared to 866 in August 2020, but the median sales price rose by 9.3% to $235,000, according to the Greater Harrisburg Association of Realtors (GHAR).

The Dauphin County market experienced substantial price appreciation, as the median sales price of a house jumped to $216,000 versus $170,600 last August. The number of houses sold dipped to 376, a decline of nine units, GHAR stated.

In Cumberland County, sales fell by 16 units to 380 houses, while the median sales price rose to $265,000 from $240,000 the prior August, according to GHAR.

Perry County had 41 home sales, a decline of two compared to last August, as the median sales price increased to $230,000 from $149,900 last year, GHAR said.

Houses were also selling quickly. According to GHAR data, the “average days on the market” in August was just 17 days, compared to 35 in August 2020.

The area’s housing market has been very active, with substantial price appreciation, throughout the last year.

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Harrisburg to upgrade outdated IT system, improve efficiency for employees, residents

Screenshot of Steve Zimmerman (left), an IT consultant for Harrisburg and Terry Quinn of Tyler Technologies who discussed the city’s computer upgrade on Tuesday.

Decades after it was installed, Harrisburg’s aged mainframe appears headed for the scrap heap, as the city plans a major upgrade of its municipal computer system.

City Council, at a legislative meeting on Tuesday night, passed a resolution that will start the process of phasing out the city’s existing, outdated mainframe and implementing new, more efficient IT systems.

“It’s about time,” said council vice president Ben Allatt, a sentiment echoed by other council members.

The current system is about 35 years old, according to Steve Zimmerman, a former director of information technology for Harrisburg, who will provide consulting to the city on the legacy system. The city will pay Zimmerman up to $135,000 for one year of consulting work as it transitions off the old mainframe.

The city then will use Texas-based Tyler Technologies, a software company that works in the public sector, to complete the upgrade.

Over the next two years, the tech company will introduce an enterprise resource planning (ERP) system that will manage day-to-day internal activities such as accounting, budgeting, payroll, scheduling and tax billing.

Harrisburg residents may also see some benefit from the upgrade, as it impacts businesses license and dog license registration, building permits access, as well as online payments.

Tyler Technologies also provides contracting for the Harrisburg School District and works with over 100 entities in the state, said Terry Quinn, senior account executive of Tyler.

The initial cost of the conversion is about $651,000 with an annual cost of $331,000, Zimmerman explained. The existing system currently costs the city $504,000 annually, he said.

In other action, council passed a resolution to continue an intergovernmental cooperation agreement with Swatara Township to allow the city to use a composting facility owned and operated by the township. The city first entered into the agreement in 2020.

Under the new contract, Harrisburg will pay the township $50,000 for the services, whereas the city previously only paid $2,945.10 per year. According to Chris Nafe, Harrisburg’s sustainability coordinator, the township said that they had originally underestimated the cost of operation.

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Papenfuse makes it official, announces write-in campaign for Harrisburg mayor

Harrisburg Mayor Eric Papenfuse today announced a write-in bid for re-election.

Harrisburg Mayor Eric Papenfuse made it official today, declaring that he is running as a write-in candidate in the November general election.

Papenfuse, with his wife Catherine Lawrence beside him, made the announcement while standing in front of the Hudson Building, recently renamed the Atlas, a structure in Uptown Harrisburg undergoing extensive renovation.

A line of construction workers stood in the background as Papenfuse spoke to the media.

He stated that he decided to run for a third term, despite narrowly losing the Democratic primary in May, based on his track record of fiscal management and rebuilding the capacity of city government, along with a pledge to forge a coalition across the city.

“I plan to lead by decisive outreach in a way that brings in people and has their voices heard in ways that they haven’t been heard before,” he said.

In May’s Democratic primary, Papenfuse lost by 46 votes to City Council President Wanda Williams. Two other candidates, David Schankweiler and Otto Banks, also tallied more than 20% of the vote in the five-person race.

On Monday, Papenfuse named Banks as the city’s new director of economic development.

“There was no mandate in the primary,” Papenfuse said. “If there was any lesson from the primary, it’s that we have to build a broader coalition. We have to work together, and I’m the candidate for that.”

Write-in campaigns are rarely successful, as the candidate’s name does not appear on the ballot, forcing voters to take an extra step to write in their choice.

Papenfuse said that he believed he could defy the odds. In an interview preceding today’s announcement, he described his decision to run as a write-in as a “long process.”

“I really took some time over the summer to think about what I wanted to do,” he said. “The way I saw it, I could either give up and watch the city fall apart or I could fight to keep the ship from sinking and keep us on course.”

He said he’s running on “three strengths” based upon his two terms as mayor: “strong fiscal management,” “ethical leadership” and “a commitment to bipartisanship.”

He said that, when he first became mayor in January 2014, the city was just emerging from a historic financial crisis driven by years of overspending and fiscal mismanagement. Since then, the city has run consecutive balanced budgets, has accumulated a large fund balance and, last year, got the state legislature to extend its extraordinary taxing authority.

“All of that is the proven track record which I think is the story of success for the city,” he said.

Papenfuse also said that, during his years as mayor, he’s doubled the size of the city government and vastly increased its capabilities, which had been devastated during the fiscal crisis.

“And we’re able to pay for it and did it slowly over the course of eight years,” he said.

He also said that he ended “pay to play” politics, which, he said, took root under long-time Mayor Steve Reed.

In addition, Papenfuse took aim at Williams, saying that she was part of the “corrupt” Reed team and that her election would endanger the city’s progress.

“Throughout the past eight years, President Williams has been hostile to economic development in this city,” he said, during his official announcement on Wednesday. “She’s also been hostile to growing the population of this city. I called those views, at one time, xenophobic, in what they essentially were, were a fear of the growth of our population and the growth of our tax base. That fits with the theme of fiscal responsibility because, without the growth of our population, without the growth of our tax base, we won’t have a strong and healthy city.”

In response to Papenfuse’s announcement, Williams issued the following statement:

“Today Eric Papenfuse revealed his true colors,” according to Williams’ statement. “After a history of supporting Republicans over Democrats, using the mayor’s office to give favors to his political allies, and working for developers, not the people, he announced a last-ditch attempt to stop a black woman from becoming mayor. As I did in the primary, I will beat (him) in November and end his tenure of sexism and cronyism.”

In addition to the Democrat Williams, the ballot will include city businessman Timothy Rowbottom, who received the Republican nomination for mayor.

Papenfuse said that recent changes to voting in Dauphin County may aid his write-in effort. For instance, many more people now vote by mail and, at the polling place, people are given a pen to vote and no longer can push a button to vote a straight party ticket.

“I will be going out of my way not only to forge a coalition with people who voted David Schankweiler and Otto Banks, but also Republicans and independents,” he said. “I’m a candidate who’s always desired to work broadly with people, not narrowly within the wedge issues of Democratic politics.”

The general election is slated for Nov. 2. However, Dauphin County is expected to begin to send out mail-in ballots in the coming weeks.

This story was updated to include a statement by Wanda Williams.

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Developer proposes contemporary-style, mixed-use building for downtown Harrisburg

Under a current proposal, the two buildings on the right would be razed for a new mixed-use building.

A Harrisburg-area builder is proposing a five-story, mixed-use building for downtown Harrisburg, which would require demolition of two derelict structures now on the site.

On Monday night, the project’s architectural firm presented a plan for 512-514 N. 2nd St. to the Harrisburg Architectural Review Board (HARB).

Project architect Allison Krichman told board members that the design reflected a contemporary aesthetic that respects the historical integrity of the block.

“We hope that we’ve evolved the project to be a very contextual, 21st century contemporary building that fits in with the context around it,” said Krichman of the Harrisburg-based firm, Chris Dawson Architect.

She stated that the building’s structural design, materials and balconies combine to yield a modern look that addresses a contemporary desire for open space while still respecting the block’s architectural legacy.

A rendering of the current design for a building proposed for the 500-block of N. 2nd Street in Harrisburg

At the meeting, the firm represented their client, developer Derek Dilks, who is proposing to raze the dilapidated buildings now on the site and construct a new, 5,000-square-foot building with first-floor retail or restaurant space and seven apartments on four floors above.

Last year, Dilks bought the two forlorn buildings for $90,000 from former area attorney Gilbert Petrina, who had owned them for decades. Three years ago, HARB gave Petrina permission to raze the buildings, but he never did so.

The city’s Planning Bureau has pushed back on the proposed design, stating that it lacks continuity with the historical streetscape.

“Replication or reproduction is not the goal with new infill construction but the retention of character and continuity of the existing fabric is important to preserve the feel, character, and experience of the historic district,” states the bureau’s case report. “The current proposal is more differentiated than it is compatible, and it is recommended that the design is amended to ensure more contiguous architectural harmony with surrounding buildings.”

Several HARB members on Monday agreed with the report’s findings, stating that they believed that the design could fit in better with the other buildings along the street, which generally are a century-plus old.

HARB members requested possible design alternatives, and the case was tabled and continued to the October meeting.

HARB approval constitutes just one step in what could be a lengthy approval process for the project, which also must go through the land development process, with final approval by City Council.

At the meeting, HARB also voted to allow some modifications to a Midtown building slated to become a 16-unit, market-rate apartment building, but pushed back on some of the changes requested by the developer.

Notably, the builder, Wormleysburg-based Integrated Development Partners, agreed to install aluminum casement windows to better match the materials originally used in the mid-century, former Salvation Army building at 1122 Green St. in Harrisburg.

The developer also will be permitted to mount a sign to the building at the corner of Green and Cumberland streets, while closing off building access from Green Street, instead employing the main entrance on Cumberland Street.

The project will convert the 10,920-square-foot building to one- and two-bedroom units. The developer plans to begin the project soon, with an expected completion date of mid-2022. The city already has approved the project’s land development plan.

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Harrisburg Book Festival returns next month with book sale, virtual author events

Midtown Scholar Bookstore

For those on the hunt for a good book, Harrisburg soon will have even more than usual to choose from.

Midtown Scholar Bookstore will host its ninth annual Harrisburg Book Festival on Oct. 6 through 10, featuring special book sales and author talks.

“Celebrating the power of storytelling, the festival aims to amplify and promote literature for all ages, and to build a community of readers, writers and life-long learners in Harrisburg,” said bookstore Director Alex Brubaker in a statement.

The event will include in-person bookstore hours, an outdoor tent sale and virtual author events with award-winning and bestselling authors.

A large tent in the grass lot on the corner of 3rd and Verbeke streets, across from the store, will hold over 10,000 fiction, nonfiction, art and children’s books priced at $3 and under. It will be open from 10 a.m. to 6 p.m. each day of the festival.

The virtual author events will feature renowned meditation teachers Sharon Salzberg and Kate Johnson, two-time Pulitzer nominee Howard French and the writers of Atlas Obscura. Award-winning historian Keisha Blain will discuss Frannie Lou Hamer’s political strategies and their relevance for tackling modern social issues. Also, New York Times bestselling author TJ Klune will read from and talk about his new LGBTQ novel. All author talks are free and will be broadcast on Zoom and Facebook Live and later uploaded to Youtube.

Last year, the festival was held virtually, with only a book sale in front of the store. However, the virtual format allowed the bookstore to feature bigger-name authors that may not have previously traveled to Harrisburg, like novelist John Grisham.

While Brubaker said it’s been a turbulent year and a half for the bookstore during the pandemic, he’s excited to welcome back readers and writers to the festival again.

Midtown Scholar Bookstore is located at 1302 N. 3rd St., Harrisburg. For more information about the Harrisburg Book Festival, visit their website.

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Midtown Cinema changing directors, as new manager, assistant manager named

After years featuring the same lineup, Midtown Cinema is making a major casting change.

Rachel Landon has been named general manager of Harrisburg’s arthouse theater, while Stacey Werner has been hired as assistant manager.

They replace Adam Porter, who has served as director of operations since 2013, and Sammi Leigh Melville, who has been assistant manager since 2014, respectively.

“We are inheriting the responsibility for caring for and cultivating one of Harrisburg’s most important artistic institutions,” Landon said. “It’s daunting, but it’s an honor to be a part of the Cinema.”

Most recently, Landon has served as marketing director for Open Stage, a theater company in downtown Harrisburg where she also performs as an actor. Werner has long served as a manager in Harrisburg-area restaurants.

Porter recently announced his departure to focus full-time on his growing business, StartUp Harrisburg, a co-working space in Midtown. Melville is completing her second novel and will continue to write movie reviews for TheBurg.

Midtown Cinema recently completed a yearlong renovation, with major upgrades to both the interior and exterior of the building, including the location of a Zeroday Brewing Co. “Outpost” inside the lobby area.

Midtown Cinema is known for its independent, first-run films, for its special events and for its nostalgia-driven programming, such as special holiday-themed movie screenings.

“There’s always something going on at 250 Reily Street,” Landon said. “I really can’t wait for people to come here, see the upgrades that have been made to the Cinema, and enjoy seeing a movie on the big screen.”

Midtown Cinema is located at 250 Reily St., Harrisburg. For more information, visit their website.

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Harrisburg mayor names former political opponent Otto Banks as economic development director

Harrisburg Mayor Eric Papenfuse (left) announced Otto Banks (center) as the new director of economic development at a press conference.

Harrisburg Mayor Eric Papenfuse will now work alongside a former political opponent, who will now serve as a top city official.

At a press conference on Monday, Papenfuse announced former U.S. Department of Housing and Urban Development official Otto Banks as the new director of economic development for Harrisburg.

Banks, a Harrisburg native, ran for the Democratic nomination for Harrisburg mayor against Papenfuse in the May primary election, often criticizing the mayor’s administration.

However, on Monday, Banks said that he has put the primary election results behind him and plans to work with Papenfuse to make improvements to the city.

“We were opponents,” Banks said. “There were some issues I felt like needed to be addressed, and the mayor and I spoke after the election, and we came to an agreement. The election is over, the opportunity is here. There is so much stuff that still needs to be done, and we are going to do this.”

Banks previously worked for HUD as the deputy assistant secretary for economic development, overseeing more than 800 employees and managing a $14 billion portfolio.

“He brings vision, he brings energy, he brings experience, and he brings bipartisanship,” Papenfuse said.

Papenfuse said that Banks’ relationship with HUD will benefit the city. Harrisburg’s Department of Building and Housing Development, which often works with HUD, falls under Banks’ purview.

Banks and Papenfuse explained that their goals for Banks’ position include creating a guaranteed income program for low-income residents, for which the mayor has proposed using federal American Rescue Plan funds.

Banks said that he also plans to work with the Harrisburg School District to develop after-school programming and partnerships, advocate for the proposed federal infrastructure bill and work with trade unions on job training.

“As unlikely as it [Banks’ hiring] may seem in the eyes of many, it made perfect sense for the mayor and I as we shared similar goals and ideals for the city of Harrisburg,” Banks said.

Banks denied that joining Papenfuse’s administration was a political move, but rather a move to assist the city he cares about.

“You know that old saying, ‘to whom much is given, much is required,’” Banks said. “I’ve done so well in my life. It is incumbent upon me to give back.”

Harrisburg City Council President Wanda Williams defeated both Papenfuse and Banks in the primary election, gaining the Democratic nomination. However, Papenfuse plans to announce on Wednesday whether he will launch a write-in campaign for the November general election.

When asked if his choice to hire Banks, a former political opponent, was done to benefit a possible campaign, Papenfuse did not directly answer the question.

Instead, he said, “I’m bringing in a former political opponent because I feel as a city, that’s what we need to do to overcome the divisions that hold us back. I’m also trying to acknowledge that I have failed up until this point to bring the community together in a way that brings about meaningful change.”

Earlier this month, Papenfuse hired one of Banks’ former political allies, Fiordaliza “Ana” White as the bureau’s new director of community relations and engagement.

Although during his campaign, Papenfuse criticized Banks for formerly being a registered Republican, he now said that Bank’s bipartisanship experience will benefit Harrisburg. Banks is now a registered Democrat.

“I’ve always seen bipartisanship as a strength,” he said. “I think the single greatest accomplishment that we’ve had in the city over the past eight years was the extension of the city’s taxing authority […] that was done through partnership with Republicans on the hill.”

During his tenure, Papenfuse has had several directors of economic development, most recently Nona Watson, who resigned after the primary election. His annual salary will be $90,000.

“There is so much work to be done,” Banks said. “I’m essentially trying to create a renaissance.”

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