Peace Declared: City, Civil War Museum reach accord on artifacts, rent.

Gene Barr, a board member of the National Civil War Museum, speaks at a press conference today announcing a deal with the city.

Harrisburg’s mayor and a city museum have put aside their contentious past in a deal that would give the museum ownership of its permanent collection.

At a press conference today, Mayor Eric Papenfuse and board members of the National Civil War Museum outlined an agreement in which the city would sell the collection to the museum for $5.25 million and begin to charge the museum rent.

“My goal has always been to reach an agreement in the city’s best interest, and I believe this is in everyone’s best interest,” Papenfuse said.

This agreement seems to resolve a longstanding dispute between the city and the museum board.

After becoming mayor in 2014, Papenfuse strongly objected to deals reached under former Mayor Steve Reed that allowed the museum to display the city-owned artifacts at no cost and that charged the museum just $1 a year in rent for the city-owned building, even while the city remained on the hook for building maintenance and repair.

The new agreement addresses both those issues.

First, the city would sell the artifacts to the museum for $5.25 million. In turn, the city would put $1 million into a reserve fund to pay for capital improvements to the building, which the city would continue to own. The other $4 million would pay for improvements to Reservoir Park, where the museum is located.

Under the deal, the museum has five years to raise the $5.25 million to purchase about 25,000 artifacts. If it fails to raise the money within that time, the city would be allowed to sell 20 percent of the museum’s collection.

Papenfuse acknowledged that $5.25 million is below the retail value of the artifacts, which were not appraised for purposes of the agreement. But said he believed the price was in the best overall interest of both parties.

“The museum now will have a legitimate path forward to sustainability,” Papenfuse said.

The $5.25 million figure, he said, was arrived at through negotiation, taking into account the amount of money the museum could reasonably raise.

He added that it was unknown exactly how much Reed paid for the artifacts, given poor recordkeeping, but that it likely exceeded $10 million. The market for Civil War memorabilia has generally softened since Reed bought most of the artifacts in the late 1990s, he added.

The agreement also outlines a graduated schedule for the payment of rent.

For the first five years, the museum would pay the city $45,000 per year in rent. However, no money would change hands, as the cumulative amount over that period almost equals the amount of money that the museum claims it is owed by the city for unreimbursed building maintenance and repair costs dating back to 2009.

“We’re going to credit that initial rent in the five-year period,” Papenfuse said.

The rent then would increase incrementally, capping off at $100,000 per year for 10 years starting in 2029.

The museum’s board of directors approved the deal last week. Before the agreement can take effect, Harrisburg City Council also must OK it.

“It took us a long time to be here, but I think we realize that this made a heck of a lot of sense for both (parties),” said Gene Barr, a museum board member.

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“Prime” Location? Harrisburg area suggested for new Amazon headquarters.

Could the old State Hospital grounds be the perfect spot for a new Amazon.com headquarters?

Amazon.com announced this morning that it is scouting locations for a second headquarters complex—and cities across the country are gearing up to woo.

The announcement that Amazon would build a $5 billion facility supporting 50,000 jobs immediately lit up social media. Some local activists and officials suggested that the sprawling, for-sale Harrisburg State Hospital grounds off Cameron Street would be a perfect fit.

Indeed, the Harrisburg metropolitan area is already home to four Amazon warehouses. But what else would it need to beat other cities vying for the headquarters project?

For starters, another half-million people, said David Black, president of the Harrisburg Regional Chamber of Commerce & CREDC.

“Harrisburg is too small to put in a bid, but I do think there’s an opportunity to put in a bid with partners in York and Lancaster,” Black said on Thursday.

He said that the population of the Harrisburg metro hovers near 560,000 people, falling short of Amazon’s preference for metro areas with more than 1 million people.

Black thinks that the city could offer a competitive application if it works as part of a regional team. He said that the region’s existing relationship with Amazon distribution centers could distinguish it from other cities, as could its proximity to highways, major East Coast cities and the resources of the Penn State network.

“Working with the broader region is the only way this will work,” Black said.

In the press release announcing the location search, Amazon CEO Jeff Bezos said that the new headquarters will be a “full equal” to the company’s 8.1-million-square-foot headquarters in Seattle. That location, which comprises 33 buildings housing more than 40,000 employees, has a yearly operating budget of $1.4 billion.

Harrisburg might score better on a few other criteria that Amazon outlined: a stable and business-friendly environment; urban or suburban locations with the potential to attract and retain strong technical talent; and communities that think big and creatively when considering locations and real estate options.

One potential pitfall of a regional application is that it would require a patchwork of incentives, since most of these programs are created at a municipal level.

Harrisburg has a LERTA tax abatement program to encourage building in the city, and Black said that neighboring municipalities have programs ranging from LERTAs to Keystone Opportunity Zone designations. Since applications for the program are due Oct. 19, there is no hope of creating uniform incentive programs on a regional level.

“We can only offer what’s in place now,” Black said, adding that there are 103 municipalities in Dauphin and Perry counties alone.

He did say that input from the commonwealth could strengthen the incentives portion of the application, since it has successfully negotiated with Amazon in the past to build warehouses.

“The state did work with Amazon on some of their distribution facilities in PA, and they put together a nice package,” Black said. “Since this is a generic application, the state can say, ‘We offer incentive packages based on more detail.’”

On the whole, Black believes that business and political leaders in the midstate could put together a thoughtful bid for the Amazon project. He thinks that workforce data from the Penn State Data Center will strengthen the bid, as will the region’s established relationship with the company.

“We have a track record with Amazon,” Black said. “They’re here, they know the workforce, and it’s not like we’re coming in out of the cold.”

Black cautioned the public from becoming too excited about the prospect of Amazon breaking ground in the midstate, but said he believes that the application process itself will benefit the community.

“Whether or not we get it, the exercise is worthwhile,” Black said.

Members of the city’s legislative branch made moves on Thursday to begin considering an application. Councilman Westburn Majors said he contacted city officials and business leaders shortly after seeing the morning announcement.

“It is my hope that the administration can work with the county, the commonwealth, local business groups such as the Chamber, CREDC, etc., to determine if putting in an application is something that they would consider,” Majors said.

“We would love to have Amazon come here and will see what we can do as a collective team to make it happen,” said Ben Allatt, chair of the council’s finance committee.

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Weekend Roundup with Sara Bozich

Welcome to September!

I’m headed to State College tonight — not for the Pitt/PSU game — but to rep Poured in PA at the Brewers of Pennsylvania Mid-Atlantic Symposium.

Back in time Friday for our podcast recording with Beer Busters (You’re invited!), then hopping on the turnpike Saturday for a baby shower (mine), then turning around and heading back to see if I can actually watch the Steelers game with the CBS All Access app.

 

What are you doing this weekend?

(more…)

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Back to Back: County Democrats nominate Dave Madsen for Harrisburg Council seat.

Dave Madsen makes his pitch to members of the Dauphin County Democratic Committee before tonight’s nomination vote.

Dave Madsen’s service on City Council got a likely two-year extension on Wednesday night, thanks to a vote of confidence from the Dauphin County Democratic Committee.

At a packed nomination meeting in the Kline Library, DCDC voted to make Madsen the party candidate for the November city council election. Madsen beat out four other nominees to clinch his spot on the ballot.

His victory came one day after he was appointed by council to serve a four-month term, filling the seat vacated by Jeffrey Baltimore in August. Madsen will run for the same seat in November to serve out the remaining two years of Baltimore’s term.

Madsen’s win in November is all but inevitable, since the county Republicans have not put forth a candidate for the seat.

Madsen secured 21 of the committee’s 44 votes at Wednesday’s nomination meeting. Devan Drabik, the city’s business development director who said she would quit her job to take a council seat, followed with 18 votes. Three votes went to former city Councilwoman Patricia Stringer. Steven Williams, who was absent from the meeting, and Jennie Jenkins, who announced her withdrawal before the vote took place, got a single vote each.

Since Madsen faces likely election in November, he plans to focus most of his energy during the campaign season on promoting other Democratic candidates, he said.

“It’s about pushing the ticket,” he said after the meeting. “We have competitive races for the state Supreme Court and at the county level.”

Madsen said that his most immediate priority as a council member will be helping the city approve a 2018 budget. After that, he hopes to work on local campaign finance reform.

“It’s something that’s talked about a lot at the national and state level, and I’m looking forward to promoting it locally,” Madsen said.

He also came out in favor of mayoral term limits, a topic of debate at last night’s council work session. Madsen said he supports 12-year term limits for both the executive and legislative branches.

When asked about long-term financial planning for the city, Madsen said that he would approve a Home Rule charter “as a last ditch effort” and only after a one-year campaign to engage and educate the public. He also supports the city’s application for a three-year extension on its Act 47 status and intends to speak with Harrisburg’s state representatives about maintaining the local services tax at its current rate.

Author: Lizzy Hardison

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Heated Exchange: Harrisburg council, administration argue over political influence, alliances

Harrisburg’s newest councilman, Dave Madsen, posed for a picture following last night’s long, sometimes heated, City Council meeting.

A discussion about mayoral term limits and political alliances in Harrisburg drew sharp words at a Tuesday night council meeting, ultimately ending with the City Council president accusing the mayor of trying to influence a council selection process.

Council is considering a resolution that would limit Harrisburg mayors to serving two, four-year terms. The bill was first introduced at the Aug. 29 legislative session and discussed again at Tuesday’s non-voting work session.

While the consensus on council seems to favor term limits, Mayor Eric Papenfuse said that he would only support an ordinance that established term limits on all elected offices.

“It’s a problem to have the legislative branch impose term limits on the executive branch,” Papenfuse said.

He also said that city hall needed to engage the public on the issue and compromise on the length of the term limit before making any change.

Williams agreed that term limits should apply to all branches of government, but then accused the mayor of interfering with legislative activities by trying to influence council votes. The exchange that followed, wherein Papenfuse defended his right to express opinions to council people, became a referendum on the perceived mistrust between the city’s executive and legislative branches.

Williams rebuked Papenfuse for allegedly texting members of council to tell them how to vote in the selection of a new council person. Council held a special session on Tuesday to appoint a replacement for Jeffrey Baltimore, a councilman who resigned last month.

Dave Madsen got the four-vote majority he needed to take the vacant seat, an appointment that only lasts about four months until the winner in the November election can claim the seat. Papenfuse, though, favored another nominee, Brian Ostella. He drew Williams’ ire for sharing his preference before Tuesday’s vote.

“How are we going to be transparent if you text a council person to select a certain individual?” Williams asked Papenfuse. “You should not have been involved in that process—how can we work together if you keep doing things like that?”

Papenfuse defended sending text messages to councilmen Westburn Majors and Cornelius Johnson, saying that he only told them how he would vote if he were called in to break a tie.

“The mayor gets to participate if there’s a tie, so I thought they should know where I stand if there was,” Papenfuse said. “I expressed my opinion that, for a four-month term with the budget vote coming up, that Brian Ostella would be a good addition to council.”

Williams accused Papenfuse of sending a text message to Councilwoman Destini Hodges, who was absent from last Thursday’s special meeting when council began the selection process.

Hodges voted for Madsen at Tuesday’s meeting, bringing his vote total to four and ending the election. If she had voted for Ostella, however, there could have been a tie between the two nominees. Papenfuse denied texting her about the vote.

“I had no conversation with Hodges at all,” Papenfuse said.

The long evening ended with Karl Singleton, special assistant to the mayor, getting into a heated exchange with Williams. He implied that Papenfuse had every right to voice his preference and that, in any case, Madsen was the choice of Williams’ backer, Jimmy Pianka.

Following this tense, loud exchange, Madsen got up briefly to say, “I look forward to working with all of you in a constructive manner.”

Author: Lizzy Hardison
Lawrance Binda contributed to this story.

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More Questions than Answers: Term limit debate stalls in Harrisburg Council.

Harrisburg Mayor Eric Papenfuse speaks at the microphone during a recent City Council meeting.

Harrisburg City Council will take more time for discussion as it considers legislation to restrict the city’s mayor to two terms in office.

At a work session tonight, members began debating the ordinance, proposed by council President Wanda Williams. However, they had many questions about how it would work or if it even was a good idea.

“I think we’re trying to put a Band-Aid on the system,” said Councilman Cornelius Johnson.

Johnson repeatedly said he didn’t like Harrisburg’s current, “strong mayor” form of government, suggesting that term limits were an insufficient change to the structure of the system.

Most council members seemed opposed to the ordinance as written. Some said that, if the mayor is term-limited, so should other elected offices, including City Council, the treasurer and the controller.

“I’m in favor of term limits, but it should be across the board,” said Councilwoman Destini Hodges.

Hodges and other council members said that the proposed ordinance left several important questions unanswered, such as the proposed start date for term limits and whether they would apply to the sitting mayor.

Johnson suggested that the city might want to change its form of government entirely, perhaps through the Home Rule charter process supported by Mayor Eric Papenfuse. This process would appoint a commission to consider changes to the how the city governs itself, which, subject to voter approval, could include imposing term limits on elected officials.

Williams has announced her opposition to Home Rule, and, tonight, insisted that term limits could be imposed by ordinance within the current, strong-mayor form of government. She added that she’s not opposed to term limits for other elected offices in the city.

The idea for term limits, she said, has been percolating ever since former Mayor Steve Reed left office after seven terms, leaving financial devastation in his wake.

“This is due to the fact that we had a mayor for 28 years who had power that went unchecked,” she said. “There was no transparency and certainly no accountability.”

Williams said she would not bring up the ordinance for a vote at next week’s legislative session, but would continue the discussion about term limits at a subsequent work session.

Author: Lawrance Binda

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“Turnaround Story”: Harrisburg budget strong but challenges remain.

Harrisburg City Council members listened to a mid-year budget update as part of a lengthy work session tonight.

State officials tonight offered an optimistic forecast for Harrisburg’s 2017 finances, but the city’s ability to maintain a balanced budget through the end of the year remains uncertain.

Members of the city’s Act 47 team appeared before City Council to give a mid-year assessment of the city’s current budget.

Act 47 is a state oversight and assistance program for “economically distressed” municipalities. Harrisburg has been under Act 47 since October 2010.

Praising the “exemplary” leadership of Mayor Eric Papenfuse and City Council, the team summarized the city’s 2017 finances through June and offered recommendations for the second half of the year.

According to Gerald Cross, a representative from the Pennsylvania Economy League, the city received 58 percent of its total projected yearly revenue by June 30 of this year, putting trends slightly higher than they were in 2016. Real estate taxes, earned income taxes and local services taxes all came in at higher rates than last year. Parking revenues, on the other hand, fell short of projections. The city also saw lower revenue trends in its “other sources” category, due in part to the state’s budget crisis delaying the disbursal of state grants.

On the expenditure side, the city exhausted 45 percent of its personnel budget by mid-year, slightly below the 50 percent expected. Officials attributed the savings to vacant jobs and cautious hiring.

Non-personnel expenditures, however, reached 66 percent of full-year capacity by June 30. According to Cross, the city makes several large, one-time payments in the beginning of the year to cover long-term services, so expenditures should level out by January.

Since it collects most of its revenue in the first half of the year, Harrisburg ended June with $21.6 million in cash. City Controller Charlie DeBrunner called that figure “extraordinary” compared to when he took office in 2014.

While Cross and his team commended the city’s financial vigilance, Harrisburg will see some challenges looking into the second half of the year.

For example, the city doesn’t yet know if it can count on its annual payment from the state. In past years, the state has made a single, lump-sum payment to Harrisburg to cover the costs of supporting the state Capitol complex. A $5 million payment to the city is in the commonwealth’s spending plan, but fears are it still could get axed.

“Not getting $5 million from the state is a little concerning,” said Bruce Weber, city finance director. “Even though we may be in good financial position now, it’s tenuous.”

Moreover, expenses will spike when the city makes a “substantial” $3 million debt payment this month, Weber said. He also pointed out that some of city’s savings brings a practical cost, particularly in the police department.

“The city accrues a lot of savings by not having as much law enforcement as we’d like,” Weber said.

He said that recent retirements and a shortage of applicants prevent the force from operating at full compliment.

On the whole, the Act 47 team praised Harrisburg’s financial management amidst tough economic conditions for cities across the state.

“This is really a turnaround story,” Cross said. “You should be happy with your financial picture.”

He explained that the state tax structure places undue burdens on urban areas, where revenue bases have dwindled as residents moved to the suburbs.

“The tax structure we work under was designed when all the wealth was in the cities and everyone else was a farmer,” Cross said. “We operate under a structure assuming cities can provide all the services.”

Weber confirmed that Harrisburg’s revenue base needs to grow for the city to exit Act 47. Though real estate and taxable income have remained stagnant for about 10 years, the city has seen increased revenue from building projects.

“If you get real building going on in the city, you see real dollars that are generated from that,” Weber said.

The Act 47 team will submit its full, mid-year report to council later this week. Council is slated to begin taking up the 2018 budget in November.

Author: Lizzy Hardison

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Old to New: Harristown to demo, develop in downtown Harrisburg.

A new office building is expected to rise following demolition of the dilapidated former Coronet restaurant building.

Downtown Harrisburg may soon get its first new office building in many years, as Harristown plans to clear and develop a narrow space off of Market Square.

Asbestos remediation work will begin this week on 21 S. 2nd Street, a small, three-story, dilapidated brick building that once housed the Coronet restaurant on the ground floor, said Brad Jones, president and CEO of Harristown Enterprises. Demolition will follow, he said.

“This building was beyond repair,” Jones said. “Rehabilitation is always our preference when working on an old building, but unfortunately this former restaurant had severe water damage and asbestos and couldn’t be saved.”

Harristown hopes to construct a new, six-story office building next year, with retail or restaurant space on the first floor, once demolition is completed in February 2018. It expects to combine the space with a renovation of the historic SkarlotosZonarich building next door.

 Above: Artist’s rendering of a new office building planned by Harristown.

“If combined with a renovation of the adjacent law firm building, there is great potential to create a wonderful, new, mixed-use office complex with a blend of new construction and renovations,” Jones said.

A.P. Williams, based in Susquehanna Township, will conduct the remediation and demolition.

Harristown purchased the building last month for $150,000 from real estate investor Dusan Bratic, who had owned it about nine years, during which it mostly sat empty.

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Decision Made: Madsen named new Harrisburg councilman.

Dave Madsen (center) chats with fellow council hopeful Brian Ostella at last week’s Harrisburg council meeting.

Dave Madsen is Harrisburg’s newest council member, as City Council today appointed the Midtown resident to a four-month term.

Madsen takes the seat vacated by former Councilman Jeffrey Baltimore, who resigned last month.

Six city residents applied for the position, and City Council named four finalists: Madsen, Brian Ostella, Jennie Jenkins and Joshua Burkholder. In the end, Madsen, Ostella and Jenkins received nominations from council, which selected Madsen, a technician with the state Department of Revenue, by a 4-2 vote.

Council members Wanda Williams, Ben Allatt, Shamaine Daniels and Destini Hodges supported Madsen. Councilman Cornelius Johnson voted for Ostella, and Councilman Westburn Majors voted for Jenkins.

Madsen remained for the lengthy work session that followed his appointment. He is expected to be sworn in before council’s legislative session next week.

This was the second time that council attempted to fill the seat. Last week, council met in a special session to name a new member to the seven-person body. However, because Hodges was absent, no nominee could garner the four votes necessary for the seat.

Madsen will only serve four months. In the November general election, voters will decide who will serve out the remaining two years of Baltimore’s term. Both the Dauphin County Democratic and Republican committees are eligible to nominate one candidate to appear on the November ballot for the seat.

Tomorrow night, the Democratic committee will meet to decide who will be its nominee. Madsen said he also has applied for that nomination.

Author: Lawrance Binda

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Arbour Named New Executive Director of LGBT Center of Central PA

Amanda Arbour

Amanda Arbour has been named the new executive director of the LGBT Center of Central PA, the center announced this morning.

Arbour replaces Louie Marven, who left after a five-year tenure to take a position with the National Sexual Violence Resource Center.

Most recently, Arbour served as the racial justice program coordinator at the YWCA Greater Harrisburg. She earned a bachelor’s degree in sociology and politics from Messiah College and is pursuing a master’s degree of education in training and development from Penn State Harrisburg.

With this appointment, Arbour becomes the Harrisburg-based center’s third executive director.

“I’m proud to be part of this diverse, vibrant and resilient community,” Arbour said in a statement. “I look forward to working with the board of directors, staff, partners, donors and community members to continue providing the safe spaces, supportive services and educational programs that the LGBT Center has become known for.”

Arbour’s past work includes service as the legislative liaison for the Pennsylvania Department of Aging and interim coordinator of local community service for the Agape Center for Service and Learning at Messiah College.

“I am appreciative of Amanda’s evolving understanding and continuous display of ally-accomplice-ship to communities of color, people with disabilities, immigrants, trans-specific issues and more,” said Shaashawn Dial-Snowden, board president, in a statement. “Amanda is a bold, consistent voice in our movement and I look forward to working with her.”

Arbour begins in her new role on Sept. 11. To welcome her, an open house will be held at the LGBT Center, located at 1306 N. 3rd St. in Harrisburg, from 4 p.m. to 7 p.m., Friday, Sept. 22.

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