Mushroom Magic: Come in from the cold, bring a skillet.

September 29, 2013 | by Rosemary Ruggieri Baer

Fall is here. And from a cooking perspective, I am ready.

I fought with my Weber gas grill this summer and of course, I blame the grill. We had our share of overdone chicken breasts and boneless pork chops. I managed to turn beautiful halibut steaks into fish hash and set cedar planks on fire with the salmon already on them. Our grill cooks very fast and hot and now, at summer’s end, everything seems to taste the same to me. It’s time to come inside and celebrate fall.

Italian cooks are known for celebrating the seasons and focusing on whatever food is at its absolute best at the time. Fall in Italy is harvest time in the vineyards. But it is also the season for digging mushrooms, especially the prized porcinis. Found in the damp, still-warm soil of the forest, porcini means “little pig” in Italian, so called because of its fat stem.

While cooks in southern Italy are still gathering the last ruby red tomatoes from the vine, those in the northern Piedmont region are having a love affair with mushrooms. I am always amazed how the Italians can take just one vegetable and find so many ways to serve it. Mushrooms, especially porcinis, are sautéed and broiled, stuffed, cooked with meats, used in risottos and pastas and simmered with cream.

When I was young, my parents traveled to New York City for a little holiday and went to their favorite Italian restaurant. Afterwards, my mother told me that their waiter, Giovanni, came to their table and presented her with a basket of fresh porcini mushrooms. He said to her “Signora, these were flown in from Italy this morning.” I no longer remember how they cooked them, but my mother had no choice but to order them and was, as the story goes, thrilled.

I have never found fresh porcini mushrooms here. Specialty stores sell the dried ones, and they are easy to re-constitute in hot boiling water. But other varieties of full-flavored, fresh mushrooms, like shiitakes, chanterelles and creminis, can now be found in supermarkets, and these make a fine substitute for expensive porcinis.

The recipe that follows is from Lidia Bastianich (the famed Italian cook and restaurateur) and her “Pasta Calendar.” It calls for not much more than pasta and mushrooms and is perfect for an October night. Because the ingredients are simple, use the best ones you can find, like real Parmesan Reggiano, good green olive oil and imported pasta. Lidia uses porcinis, but there is no need to go foraging in the woods or pay a king’s ransom for them. Use whatever kind you like.

Pappardelle with Mushrooms

In a large skillet (try to use one that is NOT non-stick), sauté a pound of trimmed and sliced mushrooms and several crushed garlic cloves in several tablespoons of olive oil. Do this in two batches, adding more oil as you go to avoid crowding the mushrooms and having them “steam.” Use moderately high heat so the mushrooms brown.
Place the first batch of mushrooms on a plate and brown the remaining one. Discard the garlic when you are finished.
Then place all the browned mushrooms back into the skillet along with 2 tablespoons of unsalted butter and a handful of chopped Italian parsley.
Add ¾ cup chicken stock or canned broth (use low sodium if you can) and simmer for 1 minute. Adjust salt and pepper to your taste.
Toss with a pound of pappardelle pasta (very wide ribbons). If you can’t find them, wide fettuccini noodles will do fine.
Sprinkle liberally with freshly grated Parmesan and serve.

Lidia’s recipe doesn’t call for it, but a few sprinkles of Marsala wine, cognac or Vin Santo really give a nice kick to the sautéing mushrooms. A crisp green salad goes well with this pasta.

I suppose next summer I will make up with my Weber gas grill. But, for now, I am so glad to eat something that doesn’t taste like teriyaki.

Getting Stronger: Officials react to receiver’s plan.

September 29, 2013 | by Admin

Fresh Start for the City through Harrisburg Strong

By Rob Teplitz

Harrisburg’s financial challenges have made national and international headlines over the past few years. It’s been a trying time for citizens who live, work and play here. The crisis also has cast a shadow over the capital of our great commonwealth.

Since taking office in January, one of my top priorities has been to lift that shadow—and our hopes—for a more prosperous city and region. Working with local city leaders, I believe we’re starting to see a clearer, brighter future ahead.

Specifically, the announcement of the Harrisburg Strong Plan marks a big step toward moving central Pennsylvania forward.

I want to thank local and state officials for their ongoing efforts to develop and implement plans to address these critical issues, especially city receiver Maj. Gen. William Lynch and his predecessor, David Unkovic.

Although having state-appointed “outsiders” to solve local problems is hardly ideal, I have seen up close the genuine concern that Lynch has for our community. He has worked tirelessly with local leaders to draft a comprehensive plan to solve long-standing, fundamental problems that simply cannot be left unresolved any longer.

The Harrisburg Strong plan addresses both the crushing debt from the incinerator project and the annual structural deficit in the city’s budget. The plan meets the criteria that I laid out last year—participation of all stakeholders in the process, shared sacrifice in the final outcome and the least amount of pain possible all around.

Not every element of the plan is perfect, but the plan as a whole is quite good. I am also pleased to note that, although everything had to be left on the table for leverage during the negotiations, the plan does not include bankruptcy, a commuter tax or a county sales tax.

There’s still much work to be done, and I will continue to play an active role.

Harrisburg deserves ongoing state support for providing fire and emergency services to the Capitol complex. For the first time, the 2013-14 state budget included full funding—$5 million—to the city for these services. Rep. Patty Kim and I are drafting legislation to permanently require full funding from the state, so that the city is not dependent on the vagaries of the annual budget process. Notably, the Harrisburg Strong plan relies on this funding in future years.

Additionally, those involved in the incinerator project must be held accountable for their actions. My Senate colleagues and I have been calling for a criminal investigation since last year, and I’m pleased that the state attorney general has publicly confirmed that one has begun. The Harrisburg Strong plan also appropriately includes the pursuit of civil claims against those responsible.

Finally, there’s a clear need to improve state oversight of municipal financing deals across the state. My Senate colleagues and I have introduced a bipartisan legislative package that makes critical reforms to prevent another fiscal catastrophe here and in other cities.

While there will be much work ahead, the Harrisburg Strong Plan will put Harrisburg on the right path toward fiscal solvency, which will benefit our entire region.

Harrisburg didn’t get into this mess overnight, and it won’t get out of it overnight either. We must continue to take steps at the local and state levels to prevent another financial fiasco here and elsewhere across Pennsylvania.

But thanks to a team effort and new leadership, we can start to see a clearing of this financial mess. It is critical that we stay united and keep moving forward together.

State Sen. Rob Teplitz (D) represents the 15^th Senatorial District in Dauphin and York counties.

Harrisburg: Ready for a Renaissance

By Patty Kim

I remember sitting across from Harrisburg receiver Gen. William Lynch in a meeting last year as he told us that bankruptcy should not be the goal to get the city out of its financial problems.

Although I agreed with him, I told him that we are essentially going through the bankruptcy process. From what I learned while I was on City Council and from interviewing bankruptcy experts, before filing, we needed to do two things: make every effort to pay down the debt and negotiate in good faith with our creditors.

I knew that the receiver and his team would develop a plan that would contain these two parts and that the plan would either get us to financial stability or put us in a great position in bankruptcy court. Thankfully, we see a path to financial stability that avoids bankruptcy with the receiver’s “Harrisburg Strong Plan.”

I believe the plan will set us in the right direction to get out from under the incinerator debt while sustaining us for the future. After studying this plan, I noticed a major difference from the previous plans that I reviewed during my time on council. Not only does it address the massive debt situation, but it provides tools for the city to recover. In addition to leasing the parking garages, selling the incinerator and restructuring general obligation debt, the plan sets funds aside for infrastructure needs and economic development.

Previous plans suggested we sell everything off, which would leave Harrisburg “high and dry” with very little to work with going forward. I appreciate the receiver and his team for thinking through the present and future needs of our city, including the Verizon Tower lease and finally resolving the “CIT” loan.

Unfortunately, parts of the plan continue to burden the city’s taxpayers. The extension of the earned income tax will hurt the working poor, and the tipping fee for city residents is still very high compared to what county residents pay. I knew the plan would impact all of us, but, because of the increased burden on city residents, it’s important that the commonwealth follows through on its commitments.

Thanks to a combined effort by the receiver, Sen. Teplitz and myself, $5 million was allocated in the 2013-14 state budget ensuring Harrisburg will finally get sufficient compensation for the fire protection services it provides to the Capitol complex and other state buildings. For years, the city only received around $1 million annually, which was cut to less than $500,000 for two years before being increased to $2.5 million last fiscal year. Sen. Teplitz and I have legislation that will ensure the commonwealth follows through on its commitment to Harrisburg. The Harrisburg Strong Plan asks a lot from city residents for years to come. We expect our colleagues in the legislature and administration to recognize that and support the very same sustained commitment from the commonwealth.

Officials at all levels of government must be on the same page and working in the same direction for the good of the city. If we all work together using the receiver’s plan as our guide, I believe that Harrisburg can emerge from this process a much stronger city ready for a renaissance.

State Rep. Patty Kim (D) represents the 103^rd legislative district in Dauphin County.

A Strong Path Forward: Receiver’s plan allows us to recapture our city’s glory.

September 29, 2013 | by J. Alex Hartzler

Something very important happened in our political system recently in Harrisburg.

Led by receiver Bill Lynch, officials across the political spectrum came together to solve a very difficult fiscal problem for the city. In doing so, they demonstrated that our political system still works and that seemingly intractable problems can be solved through hard work, persistence and a willingness to trust and cooperate—the essence of leadership. This is the best that we can ask from any of our elected and unelected public officials.

Hard as it may be to believe on the surface, Democratic Mayor Thompson worked cooperatively with Republican Gov. Corbett and a bi-partisan team of Dauphin County commissioners to put together a negotiated plan to solve the Harrisburg debt crisis while avoiding the crushing prospect of bankruptcy, which the City Council then reviewed and voted to approve. All of those leaders deserve our thanks and appreciation.

Is the plan perfect? Of course not. By its very nature, a negotiated solution will leave every party wanting, as is the case with this plan. All parties are taking a “haircut,” so to speak, to make the deal work. No doubt there is shared pain required by the city’s residents. The extension of the 1 percent increase in the EIT will cost the median family making $30,000 a year an extra $300 annually. However, if a tax increase had to happen, which under any scenario it certainly would, this is the fairest tax and far preferable to any increase in already high real estate taxes.

But look at what also happened: The bond insurance company (AGM) took an $89 million haircut, as it should have. And the commonwealth will have to contribute $5 million a year to the city budget (which it will be under tremendous pressure to continue) and has helped to guarantee the parking revenue and price for the sale of the incinerator. Yes, parking rates will go up about 15 percent (or $23 per month for a space in a public garage), but even this is a good thing from the perspective of Harrisburg citizens. This is one of the few ways that we have to raise money from people who do not actually live in our town (in other words, a commuter tax). A few more people may carpool or take the bus instead—for the sake of the environment, I hope so—but the rest will pay their small part.

Despite this favorable progress, not all city leaders are willing to demonstrate the spirit of good faith, cooperation and optimism required to get things like this done. An example is the recent presentation by Controller Dan Miller during City Council’s public hearing on the Harrisburg Strong Plan, in which he called on council members to reject the plan and opt instead for…what exactly? Putting aside for the moment that many of Miller’s facts and assumptions were simply wrong (as pointed out by several stakeholders and officials in attendance at the meeting), Miller failed to offer any explanation for how rejecting the plan, and all the uncertainty and costs associated with it, will somehow result in a better outcome for the city’s residents. Even City Council’s own independent review by Alvarez & Marsal, which Miller had previously recommended, indicated that the Harrisburg Strong Plan was the most promising option available for the city.

As much as Miller wishes it were so, we are not Detroit, and we are not going bankrupt if this plan is carried through as proposed. The only thing that further delay and dithering will do (after four long years) is cost the city’s residents more money while preserving Miller’s central campaign theme of bankruptcy. While Miller may want that in order to somehow prove he was “right,” the rest of us should reject it wholeheartedly, as our City Council did with its votes in support of the plan. For that, our council should be applauded for exhibiting tremendous leadership in the face of complex and difficult proceedings.

Let’s follow the receiver’s, the mayor’s and council’s lead and continue to move Harrisburg forward and not waste one more day or one more dollar of our citizen’s hard-earned money on politically motivated attempts at delay and obfuscation. There are many more issues the city has to deal with, including finding ways to attract more residents and businesses so that we can turn our city around and begin to grow our population base. Issues of safety, economic competitiveness, infrastructure and schools are high on the list of our problems to solve, but we can solve them if we finally get this crisis behind us.

Nearly 100,000 people lived in Harrisburg a half-century ago, almost twice as many as today. However, if we get back to work and focus on growth and opportunity for jobs, housing and investment, I believe that Harrisburg has the potential to rediscover its former glory and rightful spot as a leading capital city.

J. Alex Hartzler is publisher of TheBurg.

Bloody Good Time: It’s a little twisted and a big mess, but Bloodbath Bash has become a holiday hit.

September 29, 2013 | by Trevor Pierce

What began as a fake crime scene with real police intervention has grown into one of downtown Harrisburg’s goriest traditions. For the past three Octobers, hundreds of partygoers have taken part in VeTour Productions’ BloodBath Bash, a Halloween party that has guests splattering themselves and each other in fake blood from head to toe.

“The BloodBath Bash is copious amounts of blood, booze and tunes all in one place,” said Sean Kunkle, executive director of VeTour Productions, the promotional group behind many of Harrisburg’s most ambitious social and music events. ”We try to create another world, a detour from the norm. It’s not the environment Harrisburg is used to.”

The first BloodBath Bash was held in 2010 as a house party on Reily Street, hosted by Kunkle and his roommates, Jon Robinson and Adam Brunson. “We had been throwing smaller parties every month or so and decided we wanted to throw a Halloween party,” said Kunkle. “Personally, I have always been opposed to dressing up. More than likely, the costume will hinder the drinking process, which is unacceptable. So, I proposed that we just have everyone wear white and do a blood theme.”

The group bought white sheets, water coolers and gallons of fake blood and began prepping the house with black lights and fog. Using the garage as a gateway to the party, guests dressed in white and received their splattering. “We hung a ton of sheets up in the garage and went nuts with blood: throwing it, spitting it and even flinging it with an old Civil War-style bayonet,” said Kunkle. “Once they had some fake blood on them, we’d send them on their way, and, thus, the BloodBath was born.”

The inaugural Bash was promoted in the manner of most VeTour Productions events, generating buzz for the concept through Facebook and word-of-mouth advertising. “VeTour Productions has always prided itself on our guerilla marketing style,” said Kunkle. “The turnout was insane. The party started at 9 p.m., and, by 10, we had over 350 people in our house and yard.”

The first BloodBath Bash was so successful at attracting guests that local police had the party shut down less than three hours after it began, prompting Kunkle and VeTour to look for an official venue for the Bash’s next iteration. “Not surprisingly, it was very hard to find a bar that would allow us to throw blood everywhere,” said Kunkle. “We got a lot of confused looks and quick dismissals.”

However, VeTour’s marketing continued well into the next year, again through the use of promotion on social media. By offering guests the opportunity to take iconic photos, images of bloodstained partygoers flooded social media feeds for weeks following the party and became staples of many users’ profiles. Eventually, the momentum was enough to attract consideration from bar owners, despite the party’s inherently messy theme.

“I got to sit down with Josiah Ferris of Ceoltas Irish Pub and go over the particulars and the numbers from the previous year,” recalled Kunkle. “With a little convincing, he eventually agreed to let us take over Ceolta’s second floor, the Raftery Room. We knew we needed to step our game up and make this something that random people would swoon over, not just our acquaintances.”

VeTour Productions adapted the house party’s splatter area for a public space by using plastic sheeting to create a “kill room” inspired by the television show “Dexter.”

“I remember scrubbing the ceiling after that one, but we had a turnout similar to the house party only without the police involved,” said Kunkle. “And with the success of the second BloodBath, we were given free reign to do whatever we wanted for the third.”

In 2012, the Bash expanded to both floors of Ceolta’s, adding a light show, blood-themed drink specials and a more sturdy and outdoor splatter booth, styled after Alfred Hitchcock’s “Psycho.”

“We had close to 400 at the last one and expect more this year,” concluded Kunkle. “We wanted to keep the classic horror film theme going, so this year we are doing a “Birds” theme. Expect blood stains, ringing in your ears, new friends and many pictures because your memory may be a bit foggy.”

The 4th Annual BloodBath Bash will be held Oct. 19 at Ceolta’s Irish Pub at 310 N. 2nd St., Harrisburg. Guests are advised to wear white clothes they are comfortable having “blood-splattered.” For more information, visit Facebook.com/VeTourProductions or VeTourProductions.com.

September News Digest

September 28, 2013 | by Lawrance Binda

Harrisburg Strong Gets Thumbs Up

A near-unanimous City Council last month affirmed most elements of the Harrisburg Strong financial recovery plan for the city, followed days later by the approval by a Commonwealth Court judge.

The council vote allowed major elements of the plan to move forward, including the sale of the incinerator, the long-term lease of the city’s parking assets, an increase in the earned income tax rate and changes to union contracts. In sum, the council:

Approved the sale of the debt-ridden incinerator to the Lancaster County Solid Waste Management Authority.
Voted to raise parking meter rates and lease the city’s parking assets to the state Economic Development Financing Authority (PEDFA), which, in turn, will subcontract the operation to Standard Parking Corp.
Extended a hike in the earned income tax rate to 2 percent through 2016.
Approved the installation of 88 new parking meters in Midtown, mostly on N. 3^rd Street from Verbeke to Reily streets.
Agreed to changes in union contracts for police and non-uniformed city employees.

Following the council vote, Commonwealth Court Judge Bonnie Brigance Leadbetter held a hearing on the plan and gave it her blessing. About 18 months ago, she had approved the preliminary plan and needed to OK the many changes to it.

The complex Harrisburg Strong plan promises to relieve the city of its debilitating debt load. Highlights of the plan include:

Sale of the incinerator for net proceeds of $126 million to $132 million.
Long-term lease of the city’s parking facilities, including about 10,000 garage, surface lot and metered spaces, for around $260 million.
Elimination of most of the city’s long-term debt and a promise of a balanced budget through 2016.
The receipt of ongoing revenue from the leased parking assets.
The creation of three not-for-profit entities that would pay for infrastructure improvements, economic development initiatives and retired city worker healthcare.
Settlement of most litigation and claims against the city, with several creditors accepting less than what they were seeking.

Before voting, City Council members amended the legislation so that their votes would take effect only if the Harrisburg Strong plan is implemented by all parties per the agreement.

More Cops on the Beat; New Captain Named

The Harrisburg Police Department has moved an additional 17 officers to street patrol, Mayor Linda Thompson said last month.

The boost helps address the high volume of calls that has taxed the existing patrol force, frequently requiring officers to work overtime.

The 17 officers, along with two administrative positions, will be drawn from specialty units that focus on areas like street crime and housing. The move demonstrates that having sufficient cops on patrol is the department’s top priority, said acting Police Chief Thomas Carter.

Separately, force veteran Deric Moody was promoted last month to captain, heading up the department’s criminal investigations division. In that post, Moody replaced Carter, who took over as chief after the sudden retirement of former Chief Pierre Ritter.

Permanent Home for Gamut

Harrisburg theater-goers soon will have a new venue to experience some of the area’s finest children’s and classical theater, as Gamut Theatre Group announced plans last month to relocate to an historic downtown church at 15 N. 4th St.

Gamut finalized its $435,000 purchase of the First Church of God, constructed in 1854. It now will renovate the 12,000-square-foot church to accommodate its two troupes: the Popcorn Hat Players Children’s Theatre and Harrisburg Shakespeare Company.

The renovation will proceed in two phases, said Gamut’s Executive Director Melissa Nicholson. Phase one, estimated to cost $700,000, will include construction of a main stage and a complete upgrade of the building’s physical infrastructure, she said. Phase two, priced at about $400,000, will include a second theater for children’s productions, as well as classrooms and other supporting spaces, said Nicholson.

Gamut has operated from rented space on the third floor of Strawberry Square for 20 years. Recently, it has actively sought to purchase a permanent home, almost moving to Lemoyne last year before that deal fell through.

Gamut will continue to produce plays at its current location before its planned move in fall 2014. It has kicked off a fundraising campaign to raise the $1.6 million needed to complete the project.

New Restaurant Building Approved

Downtown Harrisburg soon should add another new restaurant to its mix after a building project received zoning approval last month.

The Zoning Hearing Board unanimously gave the thumbs up to a proposed building for a small empty lot at the corner of State and N. 2^nd streets. The building would be a single full story with a mezzanine level, enough to accommodate about 60 diners at a time.

Developer WCI Partners LP needed a variance and several special exceptions in order to start work on the proposed Italian-style restaurant at 200 State St., said WCI President Dave Butcher.

Butcher did not estimate when the project might start, as the company still needs to receive City Council approval of its land development plan and finalize an agreement with the proposed restaurant operator.

Craft Beer Country

A dozen breweries joined together last month to form the Hershey Harrisburg Craft Beer Country.

The new coalition will work with Dauphin County and the Hershey Harrisburg Regional Visitors Bureau to promote the area’s craft brewers and attract beer enthusiasts to our region.

Participating breweries range widely from large and well established to newly formed to emerging. One new brewery, Alter Ego Brewing Co., plans to open its first location in the city of Harrisburg in the middle part of next year, according Alter Ego founder Theo Armstrong.

August Property Sales

Berryhill St., 1245: B. Arnold to Herlason LLC, $35,000

Boas St., 255½: J. Dewey to A. Cornelius, $116,000

Briggs St., 1509: B. Santana to E. Nugroho & J. Juniana, $160,000

Cumberland St., 268: Secretary of Veterans Affairs to W. & G. Landon, $84,000

Derry St., 1801: LandVest Harrisburg LLC to Dream Plaza LLC, $1.856,000

Emerald St., 232: K. Nyhart to T. Janz, $60,000

Green St., 712: R. Fink to G. Beeman, $75,000

Green St., 1608: J. Williamson to PA Deals LLC, $45,280

Hudson St., 1148: PA Deals LLC to J. Gaidos, $109,900

Meadowlark Pl., 3012: Dept. of Housing & Urban Development et al to E. Virella & J. Rojas, $36,500

N. 2^nd St., 2333: S. Habtemichael to C. Cullis, $124,000

N. 4^th St., 3303: M. & H. Elbaum & J. Johnson, $90,000

N. 5^th St., 1526: J. Vargas to R. Barzyk Jr., $79,900

N. 5^th St., 1738: J. Murphy to CNC Realty LLC, $125,000

N. 5^th St., 2226: Fannie Mae to M. Christa, $34,000

N. 7^th St., 2209: PSG Real Estate LLC to Sam Hill Properties, $220,000

N. 7^th St., 2210 & 660 Woodbine St.: P. Goldberg to Sam Hill Properties, $180,000

N. 15^th St., 165: B. Niles to D. Deligny, $59,800

N. Front St., 2837, Unit 103: Helen Smith Trust to F. Clark, $75,000

Penn St., 2309: LJC Properties LLC to Herlason LLC, $37,500

Radnor St., 410: Harrisburg Rentals LLC & Norman’s Realty Services Inc. to H. Lee, $75,000

Revere St., 1613: J. Rodriguez to N. Rodriguez, $50,000

Rumson Dr., 369: Dept. of Housing & Urban Development to PA Deals LLC, $37,000

Rumson Dr., 2578: D. & Y. Hayes to F. Ibohim & L. Gom, $75,000

S. 13^th St., 1431: New Jerusalem Christian Church & City Limits Realty to G. Adams, $37,900

Swatara St., 2316 & 2320: J. & M. Polatar to C. Phipps, $95,000

Faster, Stronger: Judge Issues Speedy Confirmation of Receiver’s Plan

September 19, 2013 | by Paul Barker

Judge Bonnie Brigance Leadbetter of the Commonwealth Court confirmed the state-appointed receiver’s recovery plan, also known as the Harrisburg Strong Plan, in a prompt decision from the bench this afternoon.

“I will confirm the plan—I am confirming the plan,” the judge said shortly before 12:30 p.m., immediately after Mark Kaufman, the attorney for the receiver’s team, wrapped up his presentation. Calling the plan the “best chance this city has seen in a long time to get its fiscal house in order,” Leadbetter pledged to sign the confirmation order in the next few days, possibly as early as tomorrow.

The hearing, which started at 10:30 a.m., included testimony from William B. Lynch, whom Leadbetter had approved as Harrisburg’s receiver in May of 2012. His position has been “all-consuming since that day,” Lynch said on the stand, but “overall very rewarding.”

Lynch said that what distinguished Harrisburg Strong was a successful emphasis on cooperation. When Kaufman asked him to identify his “guiding principle,” Lynch said it was to “focus on the positive” and “point groups in a direction where they could see what was in it for them.”

“I’m convinced this is the best deal we could get for the city, and frankly for the other parties involved,” Lynch said.

Gerald Cross, executive director of the Pennsylvania Economy League’s central division, also took the stand to walk the court through budget projections for the city over the next several years. Without the plan, which injects money into the budget through parking taxes, an earned-income tax hike, and relief from various debt obligations, the city would face a budget shortfall as early as January, Cross said. Such a shortfall would compromise the city’s ability to pay vendors, whose “patience is tried already,” according to Cross, and who now “want money upfront.”

At one point, Kaufman asked Cross to describe what would happen if the city were struck with a major snowstorm. “You wait until you can pay for diesel fuel,” Cross said.

The plan has had to clear significant hurdles, included a perception among members of the public that its provisions did not equally distribute pain between the city and its various creditors. Dan Miller, the Republican candidate for mayor, gave a presentation Monday night before City Council, titled “The Poor Pay More,” in which he claimed that the receiver’s plan disproportionately burdened city residents, without obtaining meaningful concessions from other parties.

In court, Kaufman dismissed these concerns summarily, detailing what he saw as the sizeable losses agreed to by creditors like CIT, Ambac, and Covanta. Ambac, Kaufman suggested, had done the “noblest job,” by agreeing to a delayed repayment structure on the city’s general obligation debt, despite having not been paid by the city for the past two years. Ambac “has done more than its fair share,” Kaufman said.

Leadbetter promised her confirmation after explaining that she saw no possibility that anyone would appeal. Lawyers representing Dauphin County, the suburban municipalities around Harrisburg, and Assured Guaranty, the bond insurer for the incinerator debt, all made brief appearances during the hearing in support of the plan. Leadbetter also said she was “highly optimistic the plan can succeed.”

Her confirmation was met with enthusiasm by the receiver’s team, who had prepared to put the plan’s next steps on hold until the 30-day appeal period had expired. As the judge announced her approval, Steven Goldfield, one of the plan’s chief architects, shared a fist bump with Bill Cluck, chairman of the Harrisburg Authority board. “I can move the deals,” Goldfield later said. “All the law firms in Philly are starting right now.”

Lynch, who had been sitting a few feet away, concurred. “About three-quarters through the hearing, Steve turned aside,” he said, “and started making a to-do list.”

Not Perfect

September 17, 2013 | by Lawrance Binda

Receiver William Lynch

“The Strong Plan is not a perfect plan,” Councilman Kelly Summerford said last night.

“It’s not a perfect plan,” echoed Councilwoman Eugenia Smith.

“Is this a perfect plan?” asked Councilwoman Susan Brown-Wilson before answering her own question. “No.”

And, with those words, City Council members gave the imperfect Harrisburg Strong Plan near-unanimous approval. Only Councilwoman Sandra Reid voted against what she perceived as several of the less-than-perfect elements of the imperfect plan.

The evening had started out solely focused on the plan’s imperfections, as city Controller Dan Miller–the lone Harrisburg official left standing against the plan generally–shared a PowerPoint slideshow entitled, “The Poor Pay More: No Shared Pain in the Receiver’s Plan.”

For 20 minutes, he assaulted the plan on many fronts: major creditors are made whole; assets are sold off; it infringes on residents’ fundamental rights, he charged.

“We’re trading our democratic rights for a few pieces of silver,” he biblically informed the packed City Council chambers to some applause.

Having made his points, Miller packed up his slideshow and disappeared swiftly into the night, the brief appearance his only one before the council despite nearly two weeks of hearings on the Strong plan. For the next three-and-a-half hours, residents, city officials, media–increasingly sweaty, punchy, hungry and tired–waited to see whether Miller’s pop-in would have any effect. It did not.

Steve Goldfield, the financial advisor for receiver William Lynch, was next up, refuting many of Miller’s points.

“I don’t think Mr. Miller’s presentation was factual,” he said, making perhaps the best effort at addressing an empty chair since Clint Eastwood.

In the end, Goldfield likewise conceded the non-perfection of the plan.

“You can’t get everything you want in a negotiated settlement,” he said with a hint of resignation.

After resident input, which revealed a split decision among those who spoke, it finally was time for council members to make known their views, which, in the end, were the only ones that mattered. Some read prepared statements; others spoke off the cuff.

Wanda Williams: “The work of fiscal recovery is hard. There is much to be done, and many people must do their part.”

Bruce Weber: “[The Strong Plan] will finally lift the dark, dark cloud of uncertainty that has hung over this city for far too long.”

Susan Brown-Wilson: “This plan will be one of the best plans we’ve seen. At least it gives us the chance to start new.”

Several council members went back into history, recalling the struggles of the past few years: the tussles with Mayor Linda Thompson over the prior Act 47 plans; the bounced bankruptcy filing; the initial hostility to a state-appointed receiver.

Arguably, Councilman Brad Koplinski best summarized why this night happened at all, why, over time, the council majority turned from pro- to anti-bankruptcy, from anti- to pro-receiver. The receivers, both David Unkovic and William Lynch, acted responsibly, he said. They tried to understand the city’s dilemma, getting creative in their solutions, asking council members’ opinions, keeping them informed and gaining their trust.

Because of this, “we have a much better and fairer plan” than previous plans, he said, with “shared pain,” creditor concessions and a reasonable chance for Harrisburg to regain its health both financially and as a community.

Months ago, Koplinski indicated to me that the tide had turned, that, after being briefed by Lynch, council members had begun to like what they heard. They’d come to think that the receiver’s team was an honest broker with far greater knowledge, expertise and resources than the city could ever have mustered without the state’s intervention. Bankruptcy, always over-sold as gain for no pain, had lost its tempting allure.

That’s why no last-minute slide shows or even speakers charging racism could sway the council. Most members had been in the fight for years. They had battled through it, made some good decisions and some bad ones, had even thought at one point they could end up in jail for contempt of court. And, now, after all this time, they had something they could live with.

“This plan, while not perfect, is going to allow the people of the city of Harrisburg to sleep at night and know that the city will have a brighter future,” Koplinski said.

So, not perfect. But, to council members, finally good enough.

Senior writer Paul Barker contributed to this article.

Constant Comment

September 17, 2013 | by Paul Barker

Last night, in a four-hour session, City Council voted to approve 11 pieces of legislation connected to the Harrisburg Strong Plan.

The voting itself was anticlimactic, since council members had largely broadcast their intentions in statements earlier in the meeting. But that’s not to say the evening didn’t have its drama.

It started with a press release, around 2 p.m., from the office of the city controller, Dan Miller, the erstwhile Democrat turned Republican nominee for mayor. Miller, who last week sent a cautionary letter to council, had concluded his review of the plan’s finer details and would be presenting his findings that night in City Hall.

Shortly after 6 p.m., Miller took the microphone and narrated as a slideshow played on one of the walls. “The Poor Pay More,” his first slide read. “No Shared Pain in the Receiver’s Plan.” Miller had organized his critiques into three main points: that the city’s poor will disproportionately bear the plan’s burdens; that the plan results in a “significant lack of self-governance” for Harrisburg; and that it calls for insufficient concessions from creditors.

So much for the merits of the plan itself. But Miller also had critiques on the process. He observed that, although the receiver’s team had spent two years crafting the plan, council—actually, his word was “we”—had “less than 30 days” to review it.

“I hope council will move slowly,” he advised. “We are trading democratic rights for a few pieces of silver.”

In the public comment that followed, several Harrisburg residents echoed Miller’s concerns. One, Brooks Mountcastle, taped a sign to the microphone stand comparing the incinerator’s tipping fees for city residents ($190 per ton) to suburban ones ($80). (“Really???????” the sign said at the bottom.) Bishop A. E. Sullivan, Jr., president of the Interdenominational Ministers Conference of Greater Harrisburg, objected that the plan had received no “independent cost-benefit analysis.”

“Please slow down until there’s a chance to go through the plan with a fine-toothed comb,” Sullivan said.

And Alan Kennedy-Shaffer, the founder of the community group Harrisburg Hope, worried that the plan was “moving forward without community input.”

To the receiver’s team, and to members of City Council, this must all have seemed a bit baffling. The past two weeks have been filled with hearings on every piece of the plan. Each hearing included a portion devoted to public comment, where residents were invited to voice their concerns. City Council did not have “less than 30 days” to review Harrisburg Strong; as members pointed out last night, the receiver’s team presented them with an outline in February, which was itself a development upon the already-public proposal wrought by the previous receiver.

On top of all this, and despite having a go-ahead from their attorney Neil Grover, whose credentials as an advocate for the city are nonpareil, council voted to retain independent financial advisors to review the receiver’s plan. The advisors, Alvarez and Marsal, reported back that “the receiver and his team are giving it their best to help the people of this city,” according to Council President Wanda Williams.

What, then, could possibly be fueling the perception that the democratic process is being subverted, and that citizens are getting a raw deal?

I suspect, in part, it’s a misunderstanding of council’s legislative procedure. Bills, once proposed, are pushed into committee, where they are discussed in public hearings. By the time they reach the floor for a vote, their fate has mostly been decided. Several members of the public, and some members of council, lambasted residents for “not being there” over the long course of recovery. But I wonder if, for many who showed up last night, it might simply have been a matter of not knowing when to get involved.

It’s also a result of a long-standing sensitivity to unfair treatment in the city-county divide. City residents see a disparity in fees, and automatically suspect foul play. In the case of the incinerator, though, this reflex is unwarranted. In 2003, when Dauphin County guaranteed the borrowings for the incinerator retrofit, one of the trades was a long-term contract for the county with a locked-in low rate. The county also delivers a much higher volume of trash—some 130,000 tons annually to the city’s 38,000—which contributes to the lower fee.

In addition, the city’s rate is actually being negotiated down, from $200 to $190, as part of the recovery plan. It had to stay high, according to the office of the receiver’s Steven Goldfield, in order to secure the best price possible for the incinerator sale. But by helping to eliminate the incinerator debt, he said, the sale will release “$13 million per year in general fund revenues” that would otherwise need to go to debt service.

On top of all this, it bears mentioning that, unlike a tax, the tipping fee distributes over a much wider base than just city residents. Anyone who disposes of trash in the city—including non-profits, corporations, and the oft-maligned tax-exempt state buildings—pay fees into the city’s sanitation fund. Contra Miller’s broad claim that the “poor pay more,” the actual amount paid for trash by city residents is positively impacted under the recovery plan.

“Trash fees for residents absolutely should go down next year, and these tipping fees are locked in until 2018 with no right to increase them,” Goldfield said.

One of the most frequent observations last night, on behalf of the recovery plan, is that it’s not perfect, but that it may be the best offer Harrisburg will get. It should be added that, in a modern democracy, policy is not only apt to be imperfect, but also to be imperfectly understood. (How many of us, either for or against the Affordable Care Act, can actually explain what’s in it?)

The claim that the plan has somehow proceeded “without public input” founders on the fact that its provisions, in the form of term sheets, executive summaries, proposed budgets, and council legislation, have been publicly available in far greater detail than the average citizen could possibly want or have time to review. We have placed our fate in the hands of others, directly, by way of elections, and indirectly, by way of the professionals they’ve retained to assist them.

Last night, after two years of rejecting inadequate plans, and consulting with the best experts available on how to solve a historically wicked problem, City Council offered its informed assessment that the Strong Plan might just succeed. It strains good judgment to conclude that, through all this, democracy has somehow been subverted. For the residents of Harrisburg, long in the dark about what would become of their city, might it be that democracy has started to work?

County Commissioners: We Support Harrisburg Strong

September 16, 2013 | by TheBurg Staff

HARRISBURG STRONG PLAN BENEFITS ENTIRE REGION

As aspects of the Harrisburg Strong plan and related agreements are finalized, the Dauphin County Commissioners stressed that the accord is good for the city and the entire region.

In addition to avoiding bankruptcy and ending the economic uncertainty over Harrisburg’s future, the plan provides a way to solve the city’s debt that is fair to all the stakeholders.

“From the beginning, this board of commissioners has said we wanted to work with Harrisburg to find a solution that would be just to the city as well as the rest of Dauphin County,’’ said commission Chairman Jeff Haste. “Not only does this plan accomplish that goal, but it also solves the long-term issue of how to handle the region’s waste.’’

Since the Harrisburg Strong plan was submitted to the Commonwealth Court on Aug. 26 by state-appointed receiver William Lynch, there has been a lot of reporting about various aspects of the agreement. What follows is a look at some key points related to the county.

Better financial footing for Dauphin County

Under the plan, Dauphin County would see its overall debt exposure to Harrisburg drop by more than $40 million and would have the opportunity to recoup $21 million already spent covering the city’s incinerator debt.

As part of the plan, the county would back a portion of the bonds issued by the Pennsylvania Economic Development Financing Authority to purchase the city’s parking system and then lease it back to Harrisburg over 40 years. The county would also be assisting in covering some of the debt payments for the Lancaster County Solid Waste Management Authority (LCSWMA) to purchase the Harrisburg incinerator.

Money from the parking system borrowing, as well as from the sale of the Harrisburg Authority’s resource recovery facility to LCSWMA, will be used to pay off the county’s incinerator guarantee. It will also allow the city to pay off its debts and have sufficient funds to maintain services, address aging infrastructure and help spur development.

Under the “Harrisburg Strong” plan, Dauphin County would be responsible for up to $99 million in guarantees and fees (including the $21 million already spent by the county) — far less than the current $140 million in incinerator debt the county is now obligated to cover for the city.

The county’s obligations under the Harrisburg Strong plan would include:

$800,000 per year to help cover interest payments associated with the bonds used for LCSWMA to buy the Harrisburg incinerator. This is expected to total $16 million over 20 years.
Up to $36 million to assist in disposing of ash from the Harrisburg incinerator. These payments, expected to be roughly $2.3 million annually, would not begin until the fifth year of the agreement.
If LCSWMA is selected as the recipient of the county’s trash after 20 years, LCSWMA will pay the $24 million debt guaranteed by the county.

In terms of annual cost, the county in 2014 would start paying the $800,000 to help with LCSWMA’s incinerator debt under the plan. Then, in the fifth year, the county will begin paying $2.3 million to help with ash disposal, bringing the yearly payment to $3.1 million.

That $3.1 million is far less than the $7.5 million the county is now paying to cover the city’s incinerator debt.

“This plan does require all the stakeholders to step up,’’ Haste said. “At the same time, we were able to strike a good balance for all of Dauphin County’s residents.’’

Haste added the agreement does not call for either a commuter tax or a county sales tax, features some have called for but that the county commissioners have long opposed.

As part of the plan, bond insurer Assured Guaranty Municipal Corp. will insure a portion of the debt used in the purchasing of the city’s parking system. Under the plan, the commonwealth will be entering into a long-term parking lease with the system, which will help ensure the parking revenues are more than enough to cover operating costs and debt service.

Additionally, the county and AGM in later years will be able to split a portion of excess revenues generated by the parking system, which will eventually allow Dauphin County to recoup the $21 million already spent covering the city’s incinerator debt. Additional revenues generated by the parking authority would go to the city.

“This agreement takes the economic uncertainty caused by Harrisburg’s debt problem off the table and sets the stage for future growth,’’ said Haste. “The region has shown it can come together to solve tough problems and that’s what leadership is about.’’

Achieving a long-term waste management solution

The sale of the Harrisburg Authority’s resource recovery facility to LCSWMA provides a long-term municipal waste solution that allows the region to benefit from being able to send waste to the Harrisburg and Lancaster facilities. It also makes operational sense, since Covanta Energy will continue to operate both plants.

While the plan calls for a slight increase in tipping fees at the start of 2014, the impact on residential trash bills will be negligible and roughly the same that would have been seen under the existing contract with the Harrisburg Authority, which allowed for increases tied to the consumer price index (CPI).

Under the proposed agreement, the tipping fee per ton of trash brought to the incinerator will increase by $3 to $80 and stay at that rate until 2016. It then would rise by $5 in 2017 and another $5 in 2020, after which increases would be based on the CPI.

For the average county resident, the $3 tipping fee would be no more than a roughly 1.5 percent increase in their annual trash bill.

Harrisburg Strong plan lays groundwork for regional economic growth

“The receiver’s plan addresses the city’s issues in a comprehensive way, allowing it to pay off its crushing debt load and have money to eliminate the budget shortfalls that hobbled Harrisburg year after year,’’ said Haste. “At the same time, it lowers the county’s overall exposure to the city’s debt and provides a way for the county to be reimbursed over time for what it spend covering the incinerator bonds.’’

David Black, president and CEO of the Harrisburg Regional Chamber and CREDC, said he believes the plan is good for Harrisburg and the region.

“First of all, it stops the incinerator from being Harrisburg’s problem or the county’s problem and it becomes part of a regional solid waste authority, and Lancaster has tremendous experience,’’ he said. “I think they’ve had a vision for some time how to operate the two facilities together.’’

Just as important, Black said, the plan removes the financial uncertainty that’s been hanging over Harrisburg and sets the stage for regional economic growth. The business community likes certainty, and the plan gives would-be investors the message that the city’s situation is under control and no longer under the threat of a costly bankruptcy.

“I think with the solution of the debt crisis, Harrisburg is poised for an incredible renaissance based on what we have going on and getting out from under this debt,’’ he said. “I think that positively impacts the region as well.’’

Black also praised the county commissioners for their leadership through the process and said they fulfilled their role to serve the entire county. If Harrisburg had been allowed to fail, the impact would have been felt throughout the area.

“The region is fortunate to have the leadership of the county,” Black said. “[The county commissioners] struck a great balance in both serving the county as a whole and the city, and I think the entire business community understands and appreciates that role.’’

Don’t Spook The Horse

September 13, 2013 | by Paul Barker

Since the Harrisburg Strong Plan was unveiled in late August, after fifteen months of corralling by Receiver William Lynch and his team, its components have moved towards enactment with the momentum of a stampede.

Mayor Thompson, taking credit for seeing the city through receivership, spoke of the plan’s implementation as a foregone conclusion. Eric Papenfuse, the Democratic nominee for mayor, wrote in an op-ed for the Patriot-News that he had “never been more optimistic about our city and more confident that its best days are ahead.” The board of the Lancaster Solid Waste Management Authority rapidly approved the purchase of the Harrisburg incinerator, a key provision of the plan. (This morning the Harrisburg Authority board kept up its end of the bargain, voting to approve the sale.)

But in the chambers of City Council, particularly this week, the pace has momentarily faltered. In four consecutive nights of hours-long hearings, council members questioned the plan’s proponents over virtually every corner of its tangled territory. Meanwhile, a handful of high-profile citizens have come forward with their concerns.

On Tuesday, Nevin Mindlin, the independent mayoral candidate who was struck from the ballot in August, lectured council from the microphone during public comment. “This is a term sheet, not a contract,” Mindlin said, referring to the outline of the proposed long-term lease of the city’s parking assets. “Do not commit yourselves to anything until you see the contract.”

On Wednesday, Dan Miller, the city controller and Republican candidate for mayor, sent council an open letter. Identifying himself as the city’s “elected fiscal watchdog,” Miller asserted that the Harrisburg Strong Plan “dismantles city government” and places the burden “disproportionately on the residents and taxpayers of the city.”

The warnings, it would seem, have reached the ears of an already skittish council. Tuesday night, council voted to retain a consulting firm, Alvarez and Marsal, to conduct an independent review of the parking plan. That night, during the hearing, Councilman Bruce Weber pointedly asked Steven Goldfield, from the receiver’s team, whether he was operating “in the best interest of the city of Harrisburg.” (Goldfield replied with a “two-part” answer: an “unequivocal yes,” and an addendum that he is “technically counsel to the office of the receiver, whose job is to work in favor of a solution.”) By Wednesday, they were cribbing Mindlin’s term-sheets line, insisting they wouldn’t feel assured until they saw a contract.

In short, days before its next legislative session, council has started to behave as though, deep in the recovery plan’s weeds, something was lurking that could sting them. “If you wanna go riding in the tall green grass,” as Neil Young sang, “try to not spook the horse.” The horse, it would appear, is spooked.

At the center of council’s worry is—or should be—the effects of the parking plan. The earned-income hike, as I’ve argued before, is comparatively modest and, besides that, is a long-overdue remedy to the structural deficit concealed by Reed-era borrowing. The water and sewer system transfer, meanwhile, replaces complexity with transparency, and constitutes not only the restoration of a true municipal authority, but also the removal of a substantial (and unaffordable) environmental liability.

But the parking transaction, to abuse a final equine metaphor, is a horse of a different color. Steven Goldfield, the transaction’s chief architect and the receiver’s financial dab hand, spoke advisedly when he said his loyalty was to a “solution,” and not necessarily to Harrisburg. His achievement, in the form of the garage-and-meter transfer, is an ingenious way of eliminating stranded debt. He has also gone to considerable lengths to do right by the city’s long-term needs, engineering an annual $3.3 million payment to Harrisburg from the parking system’s revenues.

None of this should obscure the fact that the agreement is less than ideal. In contrast to the sewer transfer, which pulls the Harrisburg Authority into the sunshine, the parking transfer marches deeper into the labyrinth. The “purchase” of the parking assets—the garages, lots, and meters, along with rights of collection and enforcement—will be funded by the issuance of tax-exempt bonds by PEDFA, a state financing agency. PEDFA, in turn, will enter into agreements with AEW, a multinational real-estate management corporation, and Standard Parking, a national company that, according to its website, manages “more than one million parking spaces in the United States and Canada.”

PEDFA has limited capacity to administer contracts of this scope and complexity. As a result, it will delegate duties to an outside designee, currently slated to be the Capital Region Economic Development Corporation, or CREDC, to the great chagrin of council. (Last December, members of council had a widely publicized spat with CREDC over an imprudent video at the latter’s awards night.)

In other words, control of the city’s parking will be flung far indeed from the clutches of city residents. A consolation prize is that meter and garage rates, along with penalty fines, will be structured in such a way as to force non-residents into garages, effecting a sly commuter tax under a different name. But the transaction’s conditions also require a raft of legislation from council, to lock in hiked initial meter rates and to provide for new Midtown meters.

They also—again, in contrast to the sewer transfer—leave the city with several liabilities. If, for instance, an undetected environmental problem, like asbestos, compromises the use of a garage, the city and the parking authority will be accountable. The same applies if one or another of the garages becomes structurally unsound and needs replacing. (At one time, according to Goldfield’s testimony on Tuesday, this was projected to occur on two garages, in 2027 or 2028 and in 2032, respectively, at a potential cost of $90 million. Recent engineering surveys apparently—and rather conveniently, one might add—reversed this prognosis.)

And the city will also be signing off on an elimination of union labor. The transfer excludes “existing labor agreements,” and though negotiations with the local union council are ongoing, by now the likely outcome is clear. Jobs that once paid $12 to $15 an hour will trend towards minimum wage. I spoke with one current parking employee who said that workers had been offered either a buyout of one year’s unemployment, or continued employment at a lower wage, with no guarantee of a job after one year. (“I’m not sure I can keep going to work, doing the same thing I was doing before, but getting paid less,” the employee said.)

In light of all this, is it any surprise that Council has sought to proceed carefully? There’s a sense in which their objections are mere quibbling: the momentum, in virtually every quarter, is solidly behind the receiver’s plan. Yet their questioning plays a vital role. Besides the mayor, whose position is abundantly clear, council members are the only representatives in the recovery elected by the citizens of Harrisburg. The hearings, more than any other forum since the plan was unveiled, have aired its inner workings for public review.

In the long march to recovery, the electorate, along with the media, has been preoccupied with fairness, in the form of concerns over whether the receiver’s plan represents “shared pain.” But the intricacies of the parking transaction have much less to do with fairness than with necessity.

“Every stream of revenue you can put into the system is a multiplier,” council’s attorney Neil Grover said at Tuesday’s hearing. “It increases the price you can get for leasing the assets.”

Harrisburg’s immediate needs are to shed its debt and to access unreachable capital. Everything in the transfer, from the involvement of PEDFA to the hiking of rates right down to the slash through labor, is a product of that necessity. And the members of City Council, under the pressure of necessity, must weigh whether to sign off on its consequences. No wonder they’re watching their steps.

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