Tag Archives: Chuck London

August News Digest

August 30, 2019 | by Lawrance Binda

Harrisburg Changes Funds Process

Harrisburg agreed last month to switch up the process of how it distributes its annual allocation of federal housing funds.

City Council unanimously passed ordinances that will substantially change how nonprofit organizations apply for the U.S. Department of Housing and Urban Development’s Community Development Block Grant (CDBG) funds.

Previously, community groups—called “sub-recipients”—applied for grants that were individually approved by council.

Now, the sub-recipients will have to respond to a “request for proposals” that is being issued by the city. All interested applicants then will have to attend a mandatory workshop on Sept. 10 at the city Public Works building and submit their final applications by Sept. 20.

Moreover, organizations will have to apply from two separate funding buckets.

Of the $1.94 million in total CDBG funding, the city is setting aside $100,000 for “public service activities,” which includes most programming activities. It then has allocated another $407,261 for “public improvement/public facilities,” which includes most facility and building projects.

In the past, funds for these activities had been combined into a single application process and source of funds. However, HUD recently instructed the city to separate operational projects from infrastructure projects.

“The primary reason for this change is so we can get those dollars separated properly,” said Franchon Dickinson, director of the city’s Building and Housing Department. “Nonprofits can apply for both public services and public facilities dollars, but have to apply separately.”

The city will favor applications that show that a service is new or has demonstrated a quantifiable increase in a level of service over the last 12 months, said Dickinson. In addition, she said that HUD prefers to fund senior enrichment programs or programs geared towards special needs populations.

Dickinson said that a scoring matrix will be used to judge applications and determine who will receive funding. City Council then will approve the contracts with the sub-recipients, said city Business Administrator Marc Woolley.

Other CDBG allotments included:

$593,423 for debt service, as the city continues to pay down a federal loan it guaranteed under former Mayor Steve Reed for the disastrous Capitol View Commerce Center project
$387,670 for grant administration
$250,000 for homeowner rehabilitation
$200,000 for emergency demolition

Dickinson said that the city is now conducting a reconciliation of disbursals in recent years, matching allocations with expenditures. It’s possible, she said, that additional funds could be available following the results of that reconciliation.

Residents Criticize Proposed Water System Sale

Harrisburg City Council is considering holding one or more meetings on the proposed privatization of the city’s water and sewer system.

Last month, council President Wanda Williams told a crowd attending a legislative session that she planned to schedule public meetings on the city’s proposal to sell the system to a private operator.

“We probably won’t just have one meeting,” she said. “We’ll probably have two or three.”

Her statement came following numerous public comments criticizing the proposed sale.

Harrisburg is currently asking qualified, private entities to respond to a “request for information” (RFI) to gauge interest in acquiring the system. Companies have until Sept. 16 to submit responses, with interviews slated for the following week.

At the council meeting, about a half-dozen residents spoke, uniformly saying that they opposed privatizing the water/sewer system, which would eliminate the current operator, the municipal authority Capital Region Water (CRW).

“I just wanted to speak out early and often against the idea of privatizing the city water authority, with the understanding that this is the first step to that potential process,” said one Green Street resident. “I’m categorically against the idea of privatizing the water authority.”

Both city Engineer Wayne Martin and Business Administrator Marc Woolley told council members that the request for information was a preliminary step and did not mean that city has decided to privatize the system.

“The information that we’re gathering is just that—gathering information—about the water system and any potential disposition of assets,” Woolley said. “But we have not decided what we’re going to do.”

Stop Sign Removals Cause Concern

Should Harrisburg proceed with a plan to remove stop signs at two intersections on N. 3rd Street?

At two City Council meetings last month, numerous residents spoke out against the planned removal of signs at the corners of Boyd, Harris, Kelker and Emerald streets.

“There are multiple playgrounds there,” said 3rd Street resident Laura Harding. “I see kids running across the street every day, multiple times a day without checking both ways.”

Currently, the intersections stop traffic in all directions. The planned removals are only for 3rd Street. The stop signs halting traffic traveling on the side streets would remain.

Residents’ remarks echoed similar concerns voiced on local social media pages, and council members said residents also had contacted them.

In early August, residents began to notice a second sign attached to several stop sign poles, notifying people that the signs would be eliminated, prompting concerns about safety at those intersections.

Some social media posts also posited a theory that the sign removals were part of the planned conversion of much of N. 2nd Street to two-way traffic, presumably because traffic displaced from 2nd Street would flow faster along the 3rd Street corridor.

However, according to city Business Administrator Marc Woolley, that is not the case. He said that the decision to remove those stop signs was made back in 2016 when the final design for the 3rd Street multimodal project was approved and that it had nothing to do with 2nd Street.

The city, he said, decided that those stop signs would no longer be necessary because the 3rd Street redesign, which includes numerous bump-outs at intersections, would have enough of a calming effect on through-traffic. And that, he said, has happened.

“It was determined that these were overused stop signs,” he said. “The bump-outs did
work.”

At the second council meeting concerning the issue, council members said they were exploring ways to retain the stop signs.

HMAC Plans Improvements

The Harrisburg Midtown Arts Center (H*MAC) has offered details of its newest phase of construction, which will include a basement dance club and a new restaurant concept.

Co-owner Chris Werner said that some construction has already begun to improve the 34,000-square-foot venue’s façade and roof, but that most work on the project will take place over the coming months.

“We’re really excited to finally complete this unique project, which has been in the works for decades, and serve it up the community for its enjoyment,” he said.

In May, Werner, along with co-owners Chuck London and Javier Diaz, bought the mixed-used entertainment and restaurant space and the business from owners Bartlett, Traynor & London LLC for $6 million. Last year, the prior owners declared Chapter 11 bankruptcy, which former co-owner John Traynor blamed partly on a social media firestorm aimed at the venue.

Werner said that the first major change will be renovations and rebranding at The Kitchen & Gallery Bar, which has been renamed The Green Room. He said that a Philadelphia-based restaurant consultant, JT Hearn, will lead a culinary team that will roll out a new food and drink menu that will focus on “innovative” and locally sourced items. In addition, the restaurant and bar space will include new furniture and décor.

The two existing entertainment spaces will also see significant changes, Werner said.

Stage on Herr, which was H*MAC’s original venue when it opened in 2009, will be redesigned and rebranded as Stage Right. The 350-person nightclub and gallery will feature a wider stage, stadium seating and sound system upgrades.

Upstairs, the Capitol Room will include a new balcony, two new bars and new bathrooms, as well as new green rooms and other amenities for performers, Werner said. Above that, H*MAC plans to finish the rooftop, building out a beer garden.

The most significant change will be in the basement, which was built as an indoor pool when H*MAC served as the Harrisburg Jewish Community Center then, later, as the Harrisburg Police Athletic League.

According to Werner, the pool room will be converted to a “psychedelic” dance club dubbed “The Deep End.” Artists will be able to create installations inside the pool area, viewable from holes above it.

“It will be a throwback to the days of dance clubs, while bringing the best of EDM and dance music to Harrisburg,” Werner said.

In late 2017, H*MAC received a $1 million state Redevelopment Assistance Capital Program grant, which will finance much of the work, Werner said.

Broad Street Market Seeks “Friends”

Do you consider yourself a “friend” of the Broad Street Market?

If so, Josh Heilman wants to hear from you.

Heilman is the market’s new executive director, and, as one of his first major initiatives, he has launched a long-planned “Friends of the Market” program.

The new initiative allows residents to help the market through a yearly donation or by volunteering for certain events and activities. The goal of the program is to bring additional revenue to the Broad Street Market for renovations, events, merchandise and more.

“We’re looking to get monetary donations and volunteer time,” Heilman said. “The market kind of needs some work. So, we’re looking for some extra sources of revenue.”

The immediate donations are going toward two different projects: installation of banners that will surround the market and replacing the string roof lights on each building, which have been out for some 20 years.

Volunteers, also called “market ambassadors,” will be asked to help with landscaping, painting and any special events. According to Heilman, the market is planning to roll out a merchandise table by Christmas, which the volunteers will also help run. They’ll sell tote bags and eventually T-shirts and answer any questions people have about the market.

Members get an exclusive Broad Street Market tote bag, which serves as a member ID, access to special market events such as their upcoming barbeque in September, and discounts to certain stands in the market. Right now, Sweet 717 and R.G Hummer Meats & Cheese are offering 10 percent off to all members.

For more information on how you can become a “Friend of the Market,” visit broadstreetmarket.org/friends.

Sales Data Mixed

Home prices edged up, while the number of units sold dipped, according to July data from the Greater Harrisburg Association of Realtors (GHAR).

GHAR reported that, for July, 694 housing units sold in Dauphin, Cumberland and Perry counties compared to 743 units in July 2018, while the median sales price rose slightly to $190,000 from $187,500.

In Dauphin County, the number of units sold was nearly flat at 335, as was the median sales price at almost $175,000. In Cumberland County, 330 units sold compared to 362 in the year-ago period, while the median price rose to $213,450 from $205,690 last year.

Perry County sales fell to 29 units versus 44 in July 2018. However, the median price rose to $164,000 compared to $156,450 a year earlier.

So Noted

Broad Street Market in Harrisburg has been named a “Great Public Space” by the PA Chapter of the American Planning Association. The association’s “Great Places” program also singled out Ligonier Diamond Park in Westmoreland County and Main Street Bethlehem for recognition.

Harrisburg School District started the 2019-20 academic year last month, the first under newly appointed district Receiver Dr. Janet Samuels and her recovery team. In an address to faculty and staff, Samuels pledged competence, kindness and a renewed focus on student academic achievement.

Harrisburg School District last month approved a resolution to re-start the nonrenewal process for Premier Arts and Science Charter School. In 2018, the previous administration started the process to deny the school a new charter, but never completed it. The current administration plans to begin public hearings “as soon as possible,” as a step to deny Premier another five-year charter.

Harrisburg Symphony Orchestra has initiated a national search for a new executive director after Jeff Woodruff announced his retirement. Woodruff plans to retire at the end of the 2019-20 season following 17 years at the helm of Harrisburg’s professional orchestra.

UPMC Pinnacle last month opened the doors of its new UPMC Memorial hospital at 1701 Innovation Dr. in west York. In so doing, it closed its former facility 325 S. Belmont St., York. The new hospital is a five-level, 102-bed facility. The 220,000-square-foot hospital provides acute and emergency medical care, maternity services, cardiology and vascular services, chronic disease management and surgical services.

Vintage Vault Gallery has opened at 300 Bridge St., New Cumberland, offering furniture, apparel and other items, with an emphasis on mid-century design. It’s the second location for owner David Morrison, who also runs the Vintage Vault Gallery in Middletown.

Wakeen Enterprise, a Harrisburg-based business consultancy and marketing company, last month announced the acquisition of Lancaster-based The Premise Studio. The acquisition will help Wakeen expand its creative and branding capabilities, according to the company.

Changing Hands

Bellevue Rd., 1932: Demara Properties LLC to C. Nsiah, $35,000

Berryhill St., 2242: G. & M. Toro to M. Giambanco & A. Lebron, $64,000

Boas St., 404: M. Riley to R. Stanley, $70,000

Briggs St., 1617: M. Lewis to Amos Financial LLC, $31,000

Crescent St., 302: Penn Home LLC to SG Homes of PA LLC, $30,000

Derry St., 1312: Keystone Community Development Corp. to E. Roberts LLC & I Am That I Am, $120,000

Derry St., 1531: Z. Mohammad to E. Cortes, $30,000

Derry St., 2428A: General Electrical SVC CO Inc. to 101 S. 17th Street LLC, $62,000

Derry St., 2811: Crist Holdings LLC to A. Banton, $75,000

Division St., 240: Stephen Weinberger Trustee & Bette Weinberger Trustee to J. & A. Jones, $200,000

Emerald St., 236: HHTP1 LLC to R. Picado, $64,900

Emerald St., 237: M. Fannie to M. Freeman, $35,000

Fulton St., 1939: Wells Fargo Bank NA to P. Sisemore & K. Hugo, $43,000

Green St., 1121: T. McLaughlin to S. Urban & R. Capellaro Jr., $128,500

Green St., 1415: D. Shreve to V. Schmidt, $132,000

Green St., 1607; C. Frater to Fratelli Property Investments LLC, $110,000

Green St., 1712: S. Jusufovic to M. Silver & H. Glaser, $220,000

Green St., 1900: J. Bovender & J. Van Horn to A. & S. Lowry, $203,000

Green St., 2012: T. & B. Alton to E. Lane, $159,000

Green St., 3116: S. Quigley to J. Laumer, $106,000

Greenwood St., 2516: KMM Development LLC to M. Smith, $105,000

Hamilton St., 334: Harrisburg Homes Investment LLC to PA Deals LLC, $67,500

Harris St., 234: Big Leaf Properties LLC to K. Rhett, $219,000

Hoffman St., 3225: L. Cappellano to S. Feltman & J. Beck, $129,900

Hummel St., 245: Tri County HDC LTD to J. Soberanis, $79,900

Jefferson St., 2662: Dobson Family Partnership to H. Rhodes, $69,900

Kelker St., 218: C. Proctor & J. Mesa Cruz to A. Czopek, $175,500

Kensington St., 2035: J. Stoltzfus to C. Rameau, $35,900

Kensington St., 2216: S. Roland to R. & C. Murphy, $60,250

Kensington St., 2318: RDR Property Management LLC to G. Yolov, $60,000

Maclay St., 1017: J. Pagliaro Estate & S. Pagliaro to PEG Commercial LLC, $850,000

Market St., 1000: Pennsylvania Housing Finance Agency to 812 Market Inc. PMI, $200,000

Muench St., 220: Q. Vandermeersch to M. Marzzacco & A. Godfrey, $199,900

Mulberry St., 1954: S. & E. Schwartz to E. Guider, $91,500

Naudain St., 1642: Wells Fargo NA to Moxie Properties LLC, $30,000

North St., 1613: JustGeoff Partners LLC to Y. Refae, $35,000

N. 2nd St., 29: C. Yi to L & C Holdings LLC, $297,000

N. 2nd St., 1825: CPenn Properties Old Uptwon LLC to E. Chattah, $67,000

N. 2nd St., 1913: C. Hanshaw to Lansanah Home Services Group, $78,000

N. 2nd St., 3005: H. Sharifi to F. Ramirez, $35,000

N. 2nd St., 3011: R. Finkel to Central Pennsylvania Home Buyers LLC, $105,000

N. 3rd St., 904: J. & S. Tang to Ramsden & Ramsden LLC, $215,000

N. 3rd St., 1904: Green Street Properties LP to A. & A. Hughes, $178,000

N. 4th St., 1320: Harrisburg Homes Investment LLC to PA Deals LLC, $65,000

N. 4th St., 2703: K. Shenk to S. Gonzalez, $99,000

N. 4th St., 3116: G. & J. Desgres to T. Keller, $102,000

N. 4th St., 3215: W. Prough to G. & S. Erdman, $50,000

N. 5th St., 1734: R. Rohlif to 4JL LLC, $112,500

N. 5th St., 2510: M. & D. Blount to R. Diaz, $45,000

N. 5th St., 2623: SL Realty to E. Mendoza, $46,000

N. 5th St., 3014 & 3016: L. Powell to L. Busko, $100,000

N. 6th St., 3153: PA Deals LLC to D. Borelli, $69,900

N. 7th St., 2612: V. Galasso to R. Martinez & R. Rasmussen, $58,000

N. 16th St., 814: Bretland Enterprises LLC to D. Boyle, $30,000

N. Cameron St., 100: D. Deitchman, L. Hatter & Brickbox Enterprises LTD to Hatzlucha LLC, $4,650,000

N. Front St., 27: W. & R. Balaban to Dauphin County Library System & McCormick Riverfront Library, $295,000

N. Front St., 305: P1-30, P32-50, P52-59, P65-68, P97-101, P110-119, P260-270, P280-300, P302, P16A, P33A, P294A, P298A, UT400, UT500 & UT600: Harrisburg Riverfront Development & Cumberland Property to 305 Front Street Investors LLC, $7,800,000

Penn St., 1107: J. Musselman to B. Mathers, $155,000

Penn St., 1308: Adonis Real Estate LLC to Invigaron LLC, $280,000

Penn St., 1506: R. Miller to J. Owens, $130,000

Penn St., 1914: L. Maurer to S. Desai Sturgis & J. Sturgis Jr., $168,500

Penn St., 2935: R. Solano to M. Kanpol, $134,900

Penn St., 2441: M. Frater to S. & T. Johnson, $46,000

Race St., 558: Cash Now LLC to M. Kramer, $114,900

Reily St., 223: J. Chadwick to W. & A. Adams, $166,500

Reily St., 265: A. Kost & E. Morrison to R. Wodele, $132,000

Seneca St., 230: Members 1^st Federal Credit Union to M. Temba, $50,000

Showers St., 611: NP Ventures LLC to K. & P. Steele, $150,200

S. 13th St., 445: H. Yap to R. Smolsky, $75,000

S. 13th St., 1541: L. Clemente to Y. Refae & H. Esmaeil, $35,000

S. 14th St., 229: P. Watson to Citibank NA Trustee, $94,500

S. 18th St., 1125: Midfirst Bank to HT Properties LLC, $39,500

S. 19th St., 411: Midatlantic IRA & Niall Harry IRA to Q. & T. Forbes, $59,900

S. 27th St., 724: Freedom Mortgage Corporation to W. Zhang, $45,140

State St., 1626: Harrisburg Homes Investment LLC to America’s Choice Remodeling of HBG LLC, $60,000

State St., 1817: A. Marshall to F. Mora, $64,000

Susquehanna St., 1701: R. Covington & T. Pean to I. Preston, $156,000

Susquehanna St., 1912: N. Carter to C. Mincemoyer, $156,000

Swatara St., 2047: Building LLC to Sr Homes LLC, $44,000

Swatara St., 2230: R. & J. Woll to H. Marca & M. Alvarez, $78,000

Valley Rd., 2308: Bean Charlotte Spence GST Trust II to A. & E. Hendrickson, $220,000

Vineyard Rd., 216: J. & W. Legaspi to R. & M. Loucas, $169,500

Watson St., 2817: E. Hurlock to LJ Realty Trust, $37,500

Harrisburg property sales for July 2019, greater than $30,000. Source: Dauphin County. Data is assumed to be accurate.

H*MAC unveils plans for construction, restaurant, dance space

July 29, 2019 | by Lawrance Binda

Harrisburg Midtown Arts Center

The Harrisburg Midtown Arts Center (H*MAC) today offered details of its newest phase of construction, which will include a basement dance club and a new restaurant concept.

Co-owner Chris Werner today said that some construction had already begun to improve the 34,000-square-foot venue’s façade and roof, but that most work on the project will take place over the coming months.

“We’re really excited to finally complete this unique project, which has been in the works for decades, and serve it up the community for its enjoyment,” he said, in a statement.

Werner said that the first major change will be renovations and rebranding at The Kitchen & Gallery Bar, which will be renamed The Green Room, beginning in early August. He said that a Philadelphia-based restaurant consultant, JT Hearn, will lead a culinary team that will roll out a new food and drink menu that will focus on “innovative” and locally sourced items. In addition, the restaurant and bar space will include new furniture and décor.

The two existing entertainment spaces will also see significant changes, Werner said.

Upstairs, the Capitol Room, will include a new balcony, two new bars and new bathrooms, as well as new green rooms and other amenities for performers, Werner said. Above that, H*MAC plans to finish the rooftop, converting it to a beer garden.

“It will be a throwback to the days of dance clubs, while bringing the best of EDM and dance music to Harrisburg,” Werner said.

In late 2017, H*MAC received a $1 million state Redevelopment Assistance Capital Program grant, which will finance much of the work, Werner has said previously.

When the project is done, H*MAC will employ some 80 people, Werner said. He added that the owners expect to donate 10 percent of profits for local charities.

Two Harrisburg companies are leading the build-out: the Office of Planning and Architecture led by Bret Peters and Smarter Design Group led by Jonathan Thomas.

May News Digest

May 31, 2019 | by Lawrance Binda

Challengers Sweep School Board Incumbents

Voter turnout may have been light, but the impact on Harrisburg could be huge, as challengers for city school board swept the Democratic primary last month.

The four challengers on the reformist slate known as C.A.T.C.H. (Concerned About the Children of Harrisburg) were all victorious: Gerald Welch, Jayne Buchwach, Steven Williams and Doug Thompson Leader. Challenger James Thompson, a former member of the school board, also picked up a nomination for one of the five, four-year seats at stake.

All four incumbents lost, some by a lot: Lola Lawson, Ellis R. Roy, Lionel Gonzalez and Patricia Whitehead-Myers. Three other challengers, Lewis Butts Jr., Cory X. Williams and Ralph Rodriguez, failed to secure nominations.

The victorious challengers had all run campaigns broadly critical of the policies of the current school board majority and the district administration led by Superintendent Sybil Knight-Burney.

“This feels gratifying. It feels like mission accomplished,” said Buchwach, the top vote-getter for city school board. “But it’s not my win. It’s a win for Harrisburg, and that’s what feels great to me.”

Buchwach said that, once seated, the new board would have to get to work improving the district’s finances, bettering its academics and rebuilding trust with residents.

“We have to be transparent. We have to be accountable in everything we do,” she said. “We have to tell the citizens of Harrisburg, ‘This is what we will do and why.’”

No Republicans ran in the primary election for Harrisburg school board, meaning that the winners likely will prevail in the general election in November.

In the six-person race for Harrisburg City Council, incumbents Westburn Majors, Dave Madsen and Danielle Bowers easily won nomination for three, four-year seats, defeating challengers Christina Kostelecky, Dionna Reeves and Brianna Smith.

No Republicans ran in the primary, meaning that the winners likely will prevail during the general election in November.

In Dauphin County, incumbent commissioners Jeff Haste and Mike Pries ran unopposed for the two Republican nominations. On the Democratic side, incumbent George Hartwick won a spot on the November ballot, as did challenger Diane Bowman, who prevailed over challenger Tom Connolly.

In the general election, voters will select three commissioners from the two Republican and two Democratic nominees.

For other county offices, all of the Republican incumbents had no competition in their primaries, so won nomination: District Attorney Fran Chardo, Sheriff Nick Chimienti, Clerk of Courts Dale Klein, Recorder of Deeds Jim Zugay, Treasurer Janis Creason, Controller Timothy DeFoor and Register of Wills/Clerk of Orphans’ Court Jean Marfizo King.

On the Democratic side, four candidates ran unopposed and therefore won their party’s nominations: Cole Goodman for Recorder of Deeds, Brad Koplinski for Clerk of Courts, Tim Butler for Treasurer and Bridget Whitley for Register of Wills/Clerk of Orphans’ Court.

The general election is slated for Nov. 5.

School Tax Hike Proposed

For a second straight year, Harrisburg property owners would see their tax bills shoot up under a proposed budget by the city school administration.

The district is proposing a 3.4-percent tax hike that would increase the millage rate from 28.8 mills to 29.78 mills.

The average city homeowner, with a median property value of $42.800, would see the school portion of their property tax bill increase by $41.91, according to budget data. The hike would raise $1.37 million for the district.

Property taxes support about one-quarter of the district’s annual budget, with the remainder originating from a variety of other taxes and fees, as well as state and federal government support.

“I don’t agree with raising taxes to make up for the budget shortfall,” said board member Carrie Fowler, who added that she opposes the proposed budget. “We’ve been taxed enough. We don’t need to be taxed more for this over-bloated administration.”

The $155.5 million proposed budget for the 2019-20 school year is about $5 million more than the current, 2018-19 budget and about $9 million more than the 2017-18 budget.

The greatest increases in expenses originate from faculty pay and retirement contributions. The district, which has 6,540 K-12 students and 936 faculty and staff, also proposes dipping into its reserve (savings), reducing that fund by some $3 million.

Last year, school property taxes rose 3.6 percent, the maximum amount allowable under state law.

5-Year Plan Unveiled

Harrisburg officials last month dug into the details of a proposed, five-year financial plan for the city, a critical step to fulfill a state mandate and ultimately exit Act 47.

Mayor Eric Papenfuse made a presentation of what he called a “responsible” long-range budget, which assumes “no significant growth” in the city’s tax base, yielding a flat operating budget of about $64 million through 2023.

“This is, in my opinion, a fiscally responsible plan,” he said. “It doesn’t call for the raising of taxes.”

The commonwealth required Harrisburg to draft a five-year financial plan as part of legislation passed last year that allowed the city to retain its elevated local services and earned income tax rates for another five years.

That plan must be approved by the Intergovernmental Cooperation Authority (ICA), the state-created body tasked with overseeing the city’s financial recovery.

After the budget plan passes muster, both the ICA and City Council must approve an Intergovernmental Cooperation Agreement. Papenfuse said that he hoped that step would occur by early July, before council takes its traditional six-week summer recess.

At that point, the city would be able to exit Act 47, the state’s program for financially distressed municipalities, Papenfuse said. The city has been in the program since 2010.

While revenues are assumed to remain mostly flat over the five-year period, expenses are expected to increase by several million dollars per year, with the gap made up by tapping the city’s substantial fund balance.

Over the next five years, the fund balance is projected to decrease from the current $21 million to about $3.3 million, leveling out at about 5 percent of the operating budget, which, according to Papenfuse, is the city’s target level.

In recent years, the city has built up a large fund balance mostly by under-spending its budget over successive years.

HMAC Sale Pending

A major arts and entertainment venue in Harrisburg is poised to exit bankruptcy, in a move that promises to bring significant change to the House of Music, Arts & Culture (HMAC).

Judge Henry W. Van Eck, U.S. Bankruptcy Court for the Middle District of Pennsylvania, has approved the sale of the sprawling Midtown venue, its liquor license and other assets for $6 million to a new partnership called HMAC LLC. This will enable the current controlling entity—Bartlett, Traynor & London—to exit Chapter 11 bankruptcy.

Chuck London, a founding HMAC partner, is a minority owner in the new entity. His founding co-partners, Gary Bartlett and John Traynor, will have no ownership in the new company.

“I feel we’re at a turning point with the promise of a new beginning,” London said, in a telephone interview. “We need to take all the lessons we’ve learned from the past and make them our future.”

Bartlett, Traynor & London LLC entered Chapter 11 bankruptcy last August following a loss of business that Traynor blamed on a social media firestorm directed at the venue. He also said that the bankruptcy filing would allow the company to reorganize its finances in preparation for a sale.

Under the new ownership, Traynor said that he will step down as the day-to-day manager of HMAC, which, until a rebranding, was known as the Harrisburg Midtown Arts Center. He expects to stay on for about six months to help with the transition and to help supervise a period of construction.

That construction will include the renovation of the basement level into a third music space, a rooftop deck and a “major facelift” to the front of the building, Traynor said. Much of the construction will be funded with a $1 million state Redevelopment Assistance Capital Program (RACP) grant that HMAC received in late 2017, he said.

“Now that we have new ownership, it’s going to be a bright new future for this building and for this community,” Traynor said.

In late 2007, Traynor, Bartlett and London purchased the former Harrisburg Jewish Community Center and Police Athletic Club building from the Harrisburg Redevelopment Authority. At the time, the sprawling, 34,000-square-foot building had been long abandoned and was badly blighted.

A lengthy, costly renovation followed that eventually yielded the Stage on Herr bar and performance space on the lower level, a restaurant and bar on the main level and the spacious Capitol Room upstairs.

Area Home Sales Strong

The Harrisburg area’s housing market had a solid start to the spring buying season, as inventory dropped and prices crept up.

For April, the median sales price increased 2.9 percent to $180,000 from $175,000 in the year-ago period, according to the Greater Harrisburg Association of Realtors (GHAR).

The number of unit sales dropped to 573 from 623, which GHAR blamed on a lack of inventory. Indeed, “average days on market” dropped significantly, to 50 days from 67 days in April 2018, GHAR said.

In Dauphin County, the median sales price increased to $168,000 versus $156,450 in the year-ago period, while unit sales fell to 265 from 296, according to GHAR. In Cumberland County, the median price fell slightly, to $200,000 from $205,500, with sales falling to 281 units from 300 units in April 2018.

Perry County saw a significant increase in the median sales price, $189,900 compared to $160,000, while sales were flat at 27 units, GHAR said.

So Noted

Alexis Singleton-Robinson last month was named the recipient of the Harrisburg Area Civic Garden Center Inc. scholarship. A graduating senior of Sci-Tech High, she plans to attend North Carolina A&T State University.

Fredricksen Library cut the ribbon last month to its new lower-level entrance, which will allow easier access to the children’s library and public meeting rooms on the ground floor, according to the library. It also debuted its new, main-floor Business and Career Center @ Fredricksen, which will bring workshops, programming and technology assistance for employment and career goals. A final phase, a “reading plaza” on the Walnut Street side, should be completed this fall.

Harrisburg University last month named Jay Jayamohan as executive director for its new Center for Innovation and Entrepreneurship. An engineer, product manager and entrepreneur, Jayamohan brings more than 20 years of experience developing startup companies and tech products, according to HU.

Historic Harrisburg Association last month named two new members to its board of directors: Dr. David Bronstein and Michael Waterloo. Bronstein has practiced medicine locally for more than 63 years and has served on numerous other nonprofit boards. Waterloo works as a content manager for Bravo Group. They join 17 other members of the board of HHA, which is dedicated to historic preservation, urban revitalization and smart growth.

Midtown Scholar Bookstore will be expanding into a nearby storefront located at 1324 N. 3rd St., Harrisburg. Co-owner Catherine Lawrence said that she her husband, city Mayor Eric Papenfuse, purchased the long-time location of Fornwald’s Shades to house their discount book retail operations.

Orrstown Bank last month named Zachary “Zack” Khuri as its new executive vice president and market president for the Capital Region. In this role, he’s responsible for overseeing the bank’s business development and community engagement efforts throughout Dauphin and York counties, as well as the West Shore community in Cumberland County.

The Storm, Harrisburg University’s varsity e-sports team, captured the ESPN Overwatch National Championship trophy last month, defeating three other teams in the inaugural Collegiate Esports Championship. The victory closed out The Storm’s undefeated 33-0 season.

Three Mile Island plans to proceed with a plan to shut down the nuclear energy facility by Sept. 30. In a news release, TMI owner Excelon Generation stated that hoped-for legislative relief would not come in time to save the plant, which is located in Londonderry Township.

In Memoriam
Edward “Naed” Smith Jr., the long-time manager of the St. Martin de Porres Catholic Worker House in Harrisburg, died suddenly last month. Smith, 52, was born in Wilkes-Barre, where he began his career advocating for social justice and serving the poor. He moved to Harrisburg more than 20 years ago, serving the Allison Hill community and anyone who needed help. Friends are encouraged to make contributions in his memory to the St. Francis of Assisi Catholic Church, 1439 Market St., Harrisburg, Pa., 17103, or to the St. Martin de Porres Catholic Worker House, 1440 Market St., Harrisburg, Pa., 17103.

Changing Hands

Berryhill St., 2306: Jiang Brothers Realty LLC to D. Dang, $43,000

Brookwood St., 2610: University Park Plaza Corp. to Harrisburg Mini Storage LLC, $239,000

Briggs St., 1941: V. Rivas to A. Reyes & F. Narvaez, $65,000

Crescent St. 243: M. Redding to ICE Properties LLC, $32,500

Cumberland St., 261, 263 & 265: J&S Estates to A. Himalaya PA II LLC, $355,000

Delaware St., 263: R. & C. Steele to K. Chaney, $139,900

Derry St., 2505: C. Johnson to M. Ousley, $62,000

Fulton St., 1726: R. & K. Lloyd to T. Reinhart, $110,000

Fulton St., 1939: R. Bowman to Wells Fargo Bank NA, $65,985

Graham St., 304: S. Walther to J. & K. Pianka, $120,000

Green St., 1114 & 221 Sassafras St.: L. & L. Raver to R. Snyder, $148,000

Green St., 1117: PNC Bank NA to A. Nebbou & C. Myers, $55,500

Green St., 1804: C. & R. Stevens to S. Serafini, $140,000

Green St., 2031: WCI Partners LP to M. & M. Doughty, $237,000

Green St., 2046: M. Hochberg to HAMR Property Services LLC, $108,000

Greenwood St., 2239: AADE RML LLC to Rental Link LLC, $33,100

Hamilton St., 232: A. & M. Fretz to J. Serra Jr., $164,900

Hamilton St., 336: S. Heredia to J. Pierre, $35,000

Herr St., 312: M. Kraemer to M. Harris, $133,000

Hudson St., 1131: R9 Holdings to T. Smarsh, $45,000

Lewis St., 228: C. Moss Trust to J. & C. Bisel Trust, $68,500

Logan St., 2222: Jakk B Ventures LLC to B. & K. Saltzgiver, $44,250

Logan St., 2235: Jakk B Ventures LLC to B. & K. Saltzgiver, $44,250

Logan St., 2305: Jakk B Ventures LLC to B. & K. Saltzgiver, $44,250

Logan St., 2157: Jakk B Ventures LLC to B. & K. Saltzgiver, $44,250

Maclay St., 324: R. & S. Keller to J Elias Holdings LLC, $37,500

Market St., 1903: Federal National Mortgage Assoc. to CAR Property Holdings LLC, $62,000

Market St., 2019: T. & T. Black to Harrisburg Community Partners LLC, $140,000

Market St., 2101: E Street Properties LLC to C. Good & B. Mengel, $60,000

Muench St., 273: WCI Partners LP to S. Eicher, $143,000

N. 2^nd St., 1205: L. Smith to S. & J. Toole, $80,000

N. 2^nd St., 1611: A. Skocik to S. & J. Toole, $140,000

N. 2^nd St., 1708: J. Seigle to Harrisburg Redevelopment Group LLC, $176,000

N. 2^nd St., 1710: G. Miller to Harrisburg Redevelopment Group LLC, $182,700

N. 2^nd St., 2522: A. Graham & J. Hays to G. Narehood, $120,500

N. 4^th St., 1911: M. Demeo to D. Bukowski, $80,000

N. 4^th St., 2428: D. Leaman to A. Norris, $51,500

N. 4^th St., 2635: Jhonleo Home Renovations LLC to A. Sload & M. Drake, $121,000

N. 6^th St., 2500, 2502 & 2504: J. & E. Cooper to Harvest DCP of Pennsylvania LLC, $750,000

N. 6^th St., 3203: Premier Property Solutions LLC to Wylie and Wylie Enterprise LLC, $41,000

N. 14^th St., 228: J. Johnson to G. Brown, $47,000

N. 15^th St., 1609: Cama Sidra LLC FBO Shirley Mitrovich IRA to T. & D. Yuncker, $49,000

N. 16^th St., 805: Premier Property Solutions LLC to M. Temba, $39,738

N. 17^th St., 29: D. & L. Godoy to S. Mercado, $39,485

N. Front St., 1525, Unit 405: S. Freet to C. Crago, $153,000

N. Front St., 1701: R. Simons & T. Bissey to 1701 N Front LLC, $350,000

Penn St., 1908: K. Smyth & D. Smith to T. Palmieri & S. Russell, $172,500

Penn St., 2119: G. Neff to DHS Team LLC, $40,000

Race St., 568: E. Fultz to Green Book Enterprises LLC, $142,100

Rudy Rd., 2406: P. & R. Brehm to J. Cruz & C. Proctor, $195,000

Rudy Rd., 2482: N. Wright to F. Sisuc, $52,000

Rumson Dr., 2965: Reverse Mortgage Solutions Inc. to T. Jones, $52,900

Shellis St., 2102: A. Bintavihok to E. Lillo, $52,000

S. 13^th St., 330: A. & R. Stoltzfus to S. Fisher, $35,000

S. 13^th St., 421: B. Nguyen to D. Nguyen, $34,000

S. 16^th St., 943: L. & D. Burkhart to Dowling Management Co. LLC, $35,250

S. 17^th St., 137: D. Peffley Sr. to WH RE LLC, $230,000

S. 25^th St., 434: T. Thompson to W. & C. Eubanks, $95,000

S. 26^th St., 633: M. Tucci to Q. & L. Tran, $75,000

State St., 1510: J. Ansell to Shizzymac 717 Homes LLC, $36,000

Susquehanna St., 2246: University Park Plaza Corp. to Harrisburg Mini Storage LLC, $114,500

Swatara St., 2039: J. Stoltzfus to JPC Property LLC, $49,350

Sycamore St., 1705: K. Jarrett to C. Faicon, $38,000

Waldo St., 2610: W. Foutres to Tassia Corp., $35,000

Walnut St., 120 & 122: Tang & Perkins Property Management LLC to A. Himalaya PA II LLC, $455,000

Zarker St., 1423: T. Freeman & Habitat for Humanity to C. Waters, $64,000

HMAC Sale Complete: Venue now under new ownership, renovations to begin

May 23, 2019 | by Lawrance Binda

New at HMAC: General Manager Patrick Hite and co-owner Chris Werner

The House of Music, Arts & Culture (HMAC) has sold, as a new ownership group closed this morning on a $6 million deal.

Business partners Chuck London, Chris Werner and Javier Diaz, under an entity called HMAC Venue LLC, now own the sprawling Midtown arts, entertainment, restaurant and bar complex.

“This has always been my favorite venue, so this is the fulfillment of a dream,” said Werner, a Dover, Pa., resident who also owns Lifetime of Autographs, a celebrity and music memorabilia business.

Werner has been an investor in HMAC for almost two years, he said.

Co-owner London, a long-time NBCUniversal executive, was a founding partner of the original HMAC corporate entity, Bartlett, Traynor & London. Last year, that company declared Chapter 11 bankruptcy following a social media firestorm directed at the venue, which the owners said substantially harmed their business.

The third partner, Javier Diaz, owns Wings Air Helicopters, a New York-based helicopter charter company, said John Traynor, part of the former ownership group.

The $6 million price tag covers everything at HMAC: the real estate, the décor, the liquor license, etc., Werner said. Originally, the sale was expected to close in early June, as per the sales agreement filed in U.S. Bankruptcy Court, but was moved up by about two weeks.

As a new owner, Werner said that he often will be on site at HMAC and will take the lead in booking bands and scheduling other events. A new general manager, Patrick Hite, formerly with Appalachian Brewing Co. in Harrisburg, will run the venue’s day-to-day operations, Werner said.

“I’ve been coming to HMAC for 10 years, and I’ve always held this place in high regard,” Hite said. “The opportunity here is endless.”

HMAC, on the 1100-block of N. 3^rd Street, occupies a 34,000-square-foot building that housed the original Harrisburg Jewish Community Center and then the Harrisburg Police Athletic League. It had been long empty and increasingly blighted when HMAC’s founders bought it from the Harrisburg Redevelopment Authority for $153,000 in late 2007.

Years of renovation followed. In 2009, the first performance space and bar opened, the 300-person capacity Stage on Herr on the lower level, followed by a restaurant, bar and arts space on the main level, and then the expansive Capitol Room, which can accommodate as many as 1,500 people, on the upper level.

The new owners plan even more renovation work. In late 2017, HMAC received a $1 million state Redevelopment Assistance Capital Program (RACP) grant, which conveyed with the sale. It now will finance the renovation of the basement level into a third performance space, which will accommodate about 600 patrons, and the construction of a rooftop deck, among other projects, Werner said.

Traynor said, that while he no longer manages HMAC, he would stay on to oversee the construction, which is expected to take four to six months. The project is being led by Bret Peters of the Harrisburg-based Office for Planning and Architecture, and Jonathan Thomas, owner of the Harrisburg-based Smarter Design Group, Traynor said.

For his part, Traynor said that he was “delighted” with the completion of the deal, saying that he and his husband, Gary Bartlett, were proud of what they had accomplished.

“We built wonderful foundations,” he said. “I’m really excited and happy for the possibilities that HMAC has now.”

Werner said that he wants to build upon that foundation, substantially increasing the number of shows and events at HMAC. He also hopes to reestablish the trust and patronage of people who may have become estranged from the venue over the years.

“Now is the time that we have to get the community to come back,” he said.

Hite agreed.

“At its essence, the experience guests will feel will be as welcoming as it’s always been but even more so,” he said.

HMAC is located at 1110 N. 3^rd St., Harrisburg. For more information, visit www.harrisburgarts.com.

HMAC Sale Pending: Harrisburg arts venue to change ownership, exit bankruptcy

May 1, 2019 | by Lawrance Binda

A new ownership group is acquiring HMAC.

A major arts and entertainment venue in Harrisburg is poised to exit bankruptcy, in a move that promises to bring significant change to the House of Music, Arts & Culture (HMAC).

The sale is expected to close in early June.

Chuck London, a founding HMAC partner, is a minority owner in the new entity. His founding co-partners, Gary Bartlett and John Traynor, will have no ownership in the new company.

According to court documents, a sales agreement was reached in January, with the sale order approved in late March. Right now, the sale is scheduled to close on June 6.

Once the transaction is complete, Traynor said that he will step down as the day-to-day manager of HMAC, which, until a rebranding, was known as the Harrisburg Midtown Arts Center. He expects to stay on for about six months to help with the transition and to help supervise a period of construction.

“Now that we have new ownership, it’s going to be a bright new future for this building and for this community,” Traynor said.

In late 2007, Traynor, Bartlett and London purchased the former Harrisburg Jewish Community Center and Police Athletic Club building from the Harrisburg Redevelopment Authority. At the time, the sprawling, 21,000-square-foot building had been long abandoned and was badly blighted.

“This project was key to the redevelopment and transformation of Midtown,” Traynor said. “Everyone said I was crazy. Everyone said that this project shouldn’t happen.”

London, a long-time executive with NBCUniversal Media who lives in Los Angeles, said that he planned to spend much more time in Harrisburg under the new partnership, which includes Christopher Werner, a Dover, Pa., resident who owns a sports memorabilia company.

“We’ll be able to bring to the community something that we haven’t been able to before,” London said. “We have to make this a smooth and functional and polite and wonderful experience not just for us, but for everyone.”

A new general manager, he said, will be hired who can “make [HMAC] even more of a success than in the past.”

“It’s going to be new ownership, and that means that new thinking will be brought to the process,” London said.

For his part, Traynor said that he and Bartlett will continue to live on their farm in Perry County, but also may live part-time in Italy, where they’re eyeing another rehabilitation project.

“We’re going to take the time and find a new project that we enjoy,” he said.

The House of Music, Arts & Culture (HMAC) is located at 1110 N. 3^rd St., Harrisburg. For more information, visit www.harrisburgarts.com.

Following online outrage and revenue hit, HMAC files chapter 11 bankruptcy as a prelude to sale

September 6, 2018 | by Lizzy Hardison

The House of Music, Arts & Culture in Midtown Harrisburg

One month after a sexual assault allegation engulfed the House of Music, Arts & Culture (HMAC) in a social media maelstrom, its owners have filed for bankruptcy and plan to sell their business.

HMAC (formerly the Harrisburg Midtown Arts Center) will continue its normal operations as its owners restructure debt obligations to more than three dozen creditors, said John Traynor, who owns HMAC with his husband, Gary Bartlett, and two other partners.

Their company, Bartlett, Traynor & London LLC, last week filed for Chapter 11 bankruptcy in the U.S. District Court for the Middle District of Pennsylvania. They believe that they have a buyer for the business, according to the filing documents. HMAC listed more than $5 million in total assets, chief among them the sprawling, historic building at 1110 N. 3^rd Street.

Traynor hopes to transition to new management and ownership by 2019.

“This allows us to reorganize, take a breath, and work with creditors,” Traynor said. “I think HMAC could use a fresh start, and Chapter 11 will help facilitate that.”

Traynor and his partners have developed HMAC for a decade and, in 2009, opened the first phase, Stage on Herr, a bar and concert venue. In all, they’ve since spent millions of dollars renovating the 34,000-square-foot property, which served as the city’s Jewish Community Center starting in 1924 and later housed Harrisburg’s Police Athletic League.

Today, HMAC comprises three separate performance venues, as well as a full-service bar and kitchen. It hosts shows by local and national performance artists, corporate events, weddings and community gatherings.

According to Traynor, it’s one of the largest privately funded development projects in Midtown Harrisburg.

Crimes and Consequences

Traynor said that that HMAC’s finances were healthy until July, when an HMAC customer claimed that she was drugged inside the bar and later beaten and raped. On social media, she said that HMAC’s staff failed to recognize her as a victim of date rape drugs and left her vulnerable to her attacker when they asked her to leave the bar.

She posted those allegations on HMAC’s public Facebook page on July 28 and deleted them within an hour, Traynor said.

But a screenshot of her post, along with a sensational article from the Philadelphia-based site YC.news, circulated in other online community groups. A conversation in the Midtown Harrisburg Facebook group generated hundreds of comments from people both excoriating and defending HMAC.

The Harrisburg Police Bureau investigated the woman’s assault and quickly debunked her allegations against HMAC. Chief information officer Gabe Olivera told the press that the woman left the bar premises with her attacker, voluntarily, after it closed. The assault occurred later that night in a home in Uptown Harrisburg.

Michael Ray Wright was charged with the woman’s rape on July 30. But Olivera said that HMAC could not have prevented the assault.

“We were totally vindicated by the police,” Traynor said.

He said the claims that the bar mishandled the incident were the work of “disgruntled ex-employees who work for a competing venue.”

The accusation sparked a firestorm nonetheless. Traynor says that the woman’s refuted allegations were “conflated” with other grievances against him and his business.

On Facebook, some community members said that reports of racism, predation and poor working conditions at HMAC long ago led them to boycott the establishment. Traynor denies their claims wholesale.

“I’ve heard them all,” he said. “I’ve heard that I’m a sexual predator, that I drug people, that I cultivate a [bad] culture, but it’s so ridiculous. Some of the people that are maligning me worked for me for seven, eight years. I think they don’t understand the ramifications of what they’re doing. The whole advent of social media and how easy it is to pile on and make false statements is a new phenomenon.”

John Traynor, inside HMAC, from December 2017

Traynor admits that Stage on Herr had a freewheeling reputation in its early days but said that HMAC’s management became more professional as the business grew. He claims he didn’t take the social media “bashing” personally.

But he said he won’t forgive the critics who allegedly contacted national booking agents and convinced bands to back out of HMAC gigs.

In all, the firestorm cost HMAC a dozen shows and some $200,000 in revenue, Traynor said.

“We were operating on cash flow, and our cash flow was severely impacted,” Traynor said.

Under Chapter 11, HMAC will be able to rebuild its events calendar and renegotiate debt payment schedules, Traynor said. He said that the company did not have any problems fulfilling its debt obligations until recently.

In the coming weeks, Traynor said, HMAC’s owners will also prepare a case against a dozen people who he claims defamed the business and interfered with its performance contracts.

He said that he and his partners have collected evidence to press charges for tortious interference of contract – the act of intentionally damaging a business agreement and causing financial harm.

Traynor said that the Dauphin County District Attorney’s Office is investigating the claims of interference. That office could not be reached for comment on Wednesday.

He expects that a dozen people could be named in a civil complaint.

“They’ll all pay,” Traynor said. “They can’t do what they did without consequences.”

Not Going Away

It’s unlikely that HMAC’s patrons will notice that the business has filed for bankruptcy.

Filing under Chapter 11 of the federal bankruptcy law grants debtors temporary relief from liabilities while they reorganize their assets. Unlike a Chapter 7 filing, it does not mean that the business will liquidate and close.

“A company doesn’t have to be insolvent to file for bankruptcy,” said Juliet Moringiello, an associate dean and bankruptcy law expert at Widener University Law School. “Chapter 11 was designed as a process for a company with a good business model to pare down its debts and renegotiate contracts.”

According to bankruptcy filings, HMAC has less than $10 million in liabilities. The documents indicate that the company will be able to pay its debts in full once it emerges from restructuring.

Twenty of HMAC’s creditors – including business vendors and utility providers — are unsecured, meaning they wouldn’t be guaranteed money in a liquidation. Peggy Grove Enterprises is the largest unsecured creditor, with $170,000 invested in the project.

The City of Harrisburg is a secured creditor due to its status as a taxing entity, according to city Solicitor Neil Grover. Property records show that HMAC owes $19,000 in local property taxes, including $4,700 to the city of Harrisburg and more than $11,000 to the Harrisburg School District.

Even though a Chapter 11 filing may indicate that a business is in distress, it usually doesn’t hamper its services, Moringiello said. She pointed to America’s airline industry as an example.

“Every legacy airline in America has filed Chapter 11, but as far as passengers are concerned, the planes keep flying,” Moringiello said. “Filing for bankruptcy doesn’t mean a company is going away.”

That’s good news to Jeb Stuart, a lifelong Harrisburg-area resident and preservation advisor to the Historic Harrisburg Association. He said that HMAC’s multi-use spaces have enriched Midtown Harrisburg and preserved an important historic structure.

“It’s very contemporary and animated and innovative,” Stuart said. “To have a space for public assembly with a huge auditorium and stage capabilities, that’s a major contribution to North 3rd Street.”

Traynor said that HMAC will continue its normal program of musical shows, weddings, corporate events and fundraisers through the end of the year. But its owners are also planning new projects.

The project received a $1 million state Redevelopment Assistance Capital Program (RACP) grant in December, which will finance infrastructure improvements. Traynor hoped to use the money to expand the Capitol Ballroom and refurbish the basement to accommodate a music school.

He insists that the grant is the only public money HMAC has received.

Traynor said he wants to see HMAC endure for years to come, which is one reason he wants to find it a new owner, he said. He hopes that the restructuring under Chapter 11 will facilitate a sale.

“What I would hate to see is for this project to close,” Traynor said. “We put a lot of money and sweat equity into it, and now it’s time for a transition.”

The owners’ desire to sell pre-dates the social media firestorm, Traynor said. They’ve been negotiating with national entertainment agencies for the past three months, he said.

HMAC’s assets include more than $5 million in property, $44,000 of inventory and approximately $22,000 in accounts receivable, according to its bankruptcy filings.

Among those assets are HMAC’s liquor license, which it will defend in a Pennsylvania Liquor Control Board hearing later this month.

The PLCB put HMAC under a conditional licensing agreement (CLA) in 2014. It placed additional requirements on HMAC’s license, namely that the owners install soundproofing systems and perform additional security checks every night.

Traynor said that the CLA arose from noise complaints. He is confident that the business will retain its license after the hearing.

He also denied that the PLCB hearing had any influence on the decision to file for bankruptcy.

If the PLCB yanks the license, however, the value of HMAC’s assets would depreciate significantly, Moringeillo said. She thinks it unlikely that the Chapter 11 filing will influence the PLCB’s decision.

Wednesday, Sept. 6: This article was edited to correct the name of a Philadelphia-based news site. It is YC.news, not YC.com.

H*MAC, Rising: Once near extinction, a restored Harrisburg Midtown Arts Center surges back with a casual restaurant, a new performance space and a re-energized mission.

June 1, 2015 | by M. Diane McCormick

The developers of the Harrisburg Midtown Arts Center see an unfilled niche in the city’s entertainment scene.

H*MAC partner Michael Giblin sees it when, in his life as a bass player, he tours nationwide with musicians from such revered bands as R.E.M. and Wilco. Lisa White, the Washington, D.C.-based booker brought on to fill the Lazarus-like space, also saw it when she drove down 2^nd Street late one night and stopped for young drunks lurching in front of her car.

That niche is the responsible, grown-up crowd, hungry for a night out that doesn’t end in a drunken blur. White knew that mature types would want “to hang out in Midtown where there are more adult things to do, and more art-related things to do, whether it be visual art or musical art or film.”

“Every city has their area where the younger people go to just be drunk, and they have other places where people can go who don’t want to be part of that, and that’s what Midtown Harrisburg is going to be,” she says.

H*MAC, rescued five times from the sheriff’s sale list, has been restored to life. A financing deal in October 2014 finally provided the infusion to capitalize on the whole, historic building and not just the funky, existing Stage on Herr.

Giblin says he became “organically involved” with the project, moving from frequent customer to hands-on partner with John Traynor, Gary Bartlett and Chuck London. Traynor is the British import who wandered off I-81 to check out Harrisburg and fell in love with the possibilities at the former Police Athletic League building at 1110 N. 3^rd Street.

But the dream collided with the recession, and H*MAC’s tribulations were front-page news. Today, the partners are about $4 million into the total $5 million project, and the end is in sight, says Giblin. Here’s what to expect in the new, ADA-compliant H*MAC:

Stage on Herr, rebranded as Herr Street Stage, continues hosting fun and up-and-coming acts. Even in the darkest days, the success of this space helped pay the bills.

The spectacular upstairs ballroom becomes the Capital Room. With capacity up to 1,100, it’s a configurable venue worthy of hosting name music acts, weddings, galas, fundraisers and dances.

The Kitchen at H*MAC opened May 15, serving fast-casual, but not like Chipotle. These are “gourmet-ish,” PA Preferred, Southern-inspired, chef-prepared dishes, Giblin says. The H*MAC partners signed on the Delaware restaurant consultant behind Troegs Brewing Co.’s breakout tasting room and snack bar to create the concept.

What else? Maybe a dance club in the basement. Maybe a bar on the rooftop. That’s in the next phase, so we’ll have to wait and see. The idea isn’t just about expanding the space but “bringing a whole new concept to the landscape,” says Giblin.

“We’re going to be a one-stop shopping event for your evening out,” he says. “You can come and eat, either before or between the show, you can go to the show upstairs, and then you can hang out in the night club afterwards.”

There’s that grown-up thing. H*MAC belongs to the Destination Midtown coalition striving for the eclectic go-to neighborhood that Harrisburg pines for. He remembers the days of the “I saw your mama on 3^rd Street” taunts. Now, he sees a turnaround because a few smart folks bought low during the recession and are dreaming high.

“All of those wonderfully hidden architectural gems were sitting there, waiting to blossom,” he says.

Giblin envisions a “middle class of acts” coming to H*MAC from the “rich catalog that appeals to the over-30 crowd or the cottage industry of artists that makes a living playing live.”

That’s where Lisa White comes in. She has been booking spaces and consulting since the 1980s. She signed on with H*MAC because she saw the “little renaissance” of artistic variety in Midtown and recognized the need for touring acts and events in a wide-open space.

White says she won’t sign any artists to the Capital Room until renovations are wrapping and an opening date is clearly in sight.

“The last thing we want to do is move a confirmed show that someone has routed a tour around,” she says.

But she’s been planting the seed among managers. At this year’s South by Southwest music festival, her descriptions of this new venue in a city just off a major highway got their attention. She and other buyers are conversing about an I-81 music corridor, where acts can find eager audiences city by city.

“They can’t go up and down the I-95 corridor all the time,” she says. “You can only play those markets a certain amount of times before you start having diminishing returns. Bands are on the road more because they’re not getting any revenue from the recorded product, so they need to find places where they can perform and do well.”

Enter Harrisburg. There will be an experimentation period in booking the Capital Room, finding what delights Harrisburg, whether it’s Scandinavian black metal or swing dance lessons on the ballroom’s wooden floor.

“That’s part of the adventure of it,” White says. “You don’t know these things, and you can’t know these things, and you just gotta try it and see what works.”

The Harrisburg Midtown Arts Center (H*MAC) is located at 1110 N. 3^rd St., Harrisburg. For the latest updates and scheduled acts, visit www.harrisburgarts.com or the Facebook page: Harrisburg Midtown Arts Center.

The Kitchen at H*MAC is open Monday to Thursday, 4 p.m. to 11 p.m.; Friday, 4 p.m. to midnight; Saturday, 11 a.m. to midnight; and Sunday, 11 a.m. to 10 p.m.

October News Digest

October 29, 2014 | by Lawrance Binda

Treasurer Turmoil Continues

Harrisburg’s newly appointed treasurer stepped aside last month after the city learned that he had filed for personal bankruptcy.

City Council selected accountant Timothy East in late September to fill the post left vacant following the resignation of former city Treasurer John Campbell. East was one of six applicants deemed qualified for the office and one of four ultimately nominated by members of council.

East did not reveal the 2011 bankruptcy during his interview before council. The issue arose later when he needed to be bonded for the job. He was never sworn in.

The city now must re-start the process of selecting a city treasurer.

Campbell resigned in early September following his arrest on charges of theft from two nonprofit organizations unaffiliated with the city. The new treasurer will fill out the remainder of Campbell’s term, which runs through next year.

Note: An October news digest article about the city treasury incorrectly attributed a comment to the controller’s office, saying the office had reviewed the treasurer’s books and “found no anomalies.” To date, the controller’s review of treasury, involving questionnaires about treasury’s internal controls, has not yet been completed.

Arborist Position Created

Harrisburg soon will have someone looking after its trees, as City Council approved the new position of arborist.

The post, which will pay no more than $50,000 a year, including benefits, will be funded by the city’s Host Municipality Benefit Fee Fund, money that Harrisburg receives for being the host site of a regional waste facility, namely the incinerator now owned and operated by the Lancaster Solid Waste Management Authority.

The arborist will help ensure the health of the city’s extensive tree canopy. Among the arborist’s first jobs: the removal of about 200 dead trees identified in the city’s recently completed tree inventory.

In addition to hiring an arborist, City Council approved other administration priorities for the Host Fee Fund: $55,000 for a portable road salt shelter; $32,000 for liners for several leaking trash trucks; and $25,000 for charges relating to the city’s comprehensive plan.

Before the allocation, the city’s Host Fee account totaled about $400,000, according to Bill Cluck, chairman of city’s Environmental Advisory Council. The city should receive another $100,000-plus into the fund soon, said Cluck.

The city receives $1 for every ton of trash processed at the facility. The money then is set aside for environmental projects.

Mayor Eric Papenfuse admitted that the spending from the Host Fee Fund had been ad hoc this year. However, he said he would propose a 2015 budget that will set priorities for use of the monies going forward.

School Resource Officers Urged

Harrisburg Mayor Eric Papenfuse last month urged the city school district to reinstate the school resource officer program, saying it would help make the student environment safer.

The administration has drafted a proposal for rebooting the program, which was suspended several years ago by the school district for budgetary reasons. The administration’s proposal would cost about $500,000 a year, the cost borne by the district.

He made the proposal following the sexual assault last month of a student just a block away from Harrisburg High School. He reiterated it after four teenagers, including three high school students, were arrested for allegedly trying to hold up two state assemblymen on a Midtown street, an altercation that resulted in gunfire between the suspects and the lawmakers.

Collection Agency Hired

Harrisburg last month agreed to hire a collection agency to recover some of the back business taxes and fees owed to the city.

City Council voted unanimously to engage Pittsburgh-based eCollect Plus to collect delinquent taxes such as the business privilege tax, business license fee, mercantile tax, zoning review fee, health license fee, amusement tax and parking tax.

The company’s fee will range from 20 to 25 percent of the amount recovered. However, it must recover at least $376,000, which is 10 percent of the city’s average business and mercantile tax collections over the past three years, to receive any compensation.

eCollect specializes in tax collections for Pennsylvania municipalities. Its client list includes Chester, McKeesport and Hanover Township.

HMAC Gets Funding

After years of trying to secure financing, the owners of the Harrisburg Midtown Arts Center have received the funding that they believe will allow them to complete the renovation of the expansive arts space.

Michael Giblin, an HMAC principal, confirmed that he and his partners—John Traynor, Gary Bartlett and Chuck London—closed on financing that will allow them to add a restaurant, a 700-person entertainment space and a rooftop bar to the building at N. 3^rd and Herr streets. The restaurant will be designed and managed by Rehoboth Beach, Del.-based Highwater Management.

HMAC opened in 2009 with a single entertainment space and bar called Stage on Herr. However, the project remained uncompleted after hitting funding snags as banks scaled back lending in the wake of the financial crisis. The facility has been on the sheriff’s sale list numerous times over the past five years, though was never publicly auctioned.

The century-old building was originally Harrisburg’s Jewish Community Center. It later housed the city’s Police Athletic League. It had sat empty for many years before Traynor, Bartlett and London bought it from the Harrisburg Redevelopment Authority in late 2007.

SAM Opening Set

The Susquehanna Art Museum has set Jan. 16 for the opening of its new building in Midtown Harrisburg.

SAM will debut the 20,000-square-foot facility with an exhibit titled, “Open: Icons of Pop Art from Niagara University.” The show will feature art on loan from the university’s Castellani Art Museum, including works from such seminal mid-20^th century figures as Andy Warhol, Robert Indiana, Marisol and Roy Lichtenstein.

The new museum includes the original, fully renovated Keystone/Fulton bank building at N. 3^rd and Calder streets, plus an addition built in the former bank parking lot. It also will feature the Doshi Gallery for Contemporary Art, a sculpture garden and a new mural by Messiah College professor Daniel Finch.

For the past several years, SAM has been without a permanent home, mounting exhibits in a gallery in the State Museum. It long exhibited in the Kunkel building downtown before that building was redeveloped.

Enterline Appointed Chief

Harrisburg Mayor Eric Papenfuse last month named department veteran Brian Enterline as the new chief of the city’s Fire Bureau.

Enterline had been acting chief since his appointment a year ago by former Mayor Linda Thompson. He has served for 14 years with the department.

Heavy Equipment Bought

Harrisburg last month purchased two pieces of heavy equipment: one for road maintenance and the other for firefighting.

City Council approved the lease/purchase of a new Case 580 SN Loader Backhoe from Mechanicsburg-based Groff Tractor and Equipment. After a trade-in of an existing backhoe, the net sales price will be $47,425, amortized over 60 months.

Council also OK’d an intergovernmental agreement to buy a 1984 Sutphen Pumper Fire Engine from Swatara Township. The used pumper will cost $3,500.

Changing Hands

Adrian St., 2252: Nationwide Mutual Insurance Co. to E. Waters, $58,000

Adrian St., 2445: C. & T. Phillips to G. Goneste & G. Niguse, $70,000

Adrian St., 2459: M. Sopp to B. Rotta, $70,000

Barkley Lane, 2524: J. Paul to Codi Tucker, $53,200

Bellevue Rd., 2042: L. & S. Freeman to D. Miller & M. Heagy, $91,000

Brookwood St., 2610: Scottsdale Commercial Partners LP & Brickbox Enterprises Ltd. to University Park Plaza Corp., $230,000

Capital St., 1200: J. & D. Fuhrman to 8219 Ventures LLC, $70,000

Elder St., 821 & 808 S. 26^th St.: GR Sponaugle & Sons Inc. to AIS Property Management LLC, $939,500

Green St., 1900: WCI Partners LP to J. Bovender & J. Van Horn, $192,500

Green St., 1938: WCI Partners LP to I. Brea to O. Sanchez, $201,000

Green St., 2133: D. Ware to M. Brown, $40,000

Hale Ave., 420: V. Ly to Luckylan Properties LLC, $30,000

Harris St., 205: Arthur A. Kusic Real Estate Investments to J. Heinly, $100,000

Herr St., 256: C. Wilson to N. Hench & R. Wetzel Jr., $125,000

Hillside Rd., 109: L. & K. York to W. Morgan Jr. & A. Winans, $254,900

Hoffman St., 3133: S. Harvey to M. Sobkowski, $62,000

Hoffman St., 3235: Harrisburg Television Inc. c/o Allbritten Communications to WHTM Acquisitions LLC & Revac Inc., $598,400

Holly St., 1823: J. Johnson to S. & D. Fenton & Exit Realty Capital Area, $56,000

Hudson St., 1152: PA Deals LLC to Amboy MAA Properties LLC, $104,000

Kensington St., 2241: F. Marsico to L. Murphy, $40,500

Kensington St., 2400: M. Eck to R. Murphy, $49,000

Lewis St., 101: R. Alexander to T. Arora, $75,000

Market St., 2048: S. St. Clair Jr. to R. Monzon & L. Trinh, $35,000

North St., 216: E. & R. Maff to R. Lamberson, $75,000

N. 2^nd St., 1307: B. Winpenny to V. McCallum, $68,900

N. 2^nd St., 2101: JAD Development to SMKP Properties LLC, $229,000

N. 3^rd St., 1126: Cornerstone Realty Management LLC to BCG Holdings LLC & Lehman Property Management, $310,000

N. 3^rd St., 1200: Cornerstone Realty Management LLC to Keuka LLC & Lehman Property Management, $575,350

N. 3^rd St., 1626: C. Hoffman to C. Grilli, $119,000

N. 4^th St., 1630: PA Deals LLC to M. & J. Leahy, $48,000

N. 4^th St., 2032: M. Stransbaugh to A. & A. Gault, $81,000

N. 12^th St., 54: D. Schubert to J. Achenbach, $44,000

N. 19^th St., 43: Kirsch & Burns LLC to LMK Properties LLC, $52,669

N. Front St., 1525, Unit 202: C. Shoemaker to R. & A. Chappelka, $185,000

Reel St., 2719: J. Eby to E. Tilahun, $51,000

Reily St., 255: C. Ruegsegger & S. Kauffman to E. Harman, $139,000

S. 19^th St., 901: L. Zaydon Jr. to CSP Group LLP, $285,000

S. 19^th St., 1101: PA Deals LLC to Amboy MAA Properties LLC, $98,000

S. 27^th St., 701: Fannie Mae to A. Brinkley, $87,900

S. Cameron St., 535: J. Strohecker to Capitol City Holdings LLC, $175,000

Susquehanna St., 1622: D. Remm & E. Goshorn to R. & G. Harris, $116,000

Wilson Parkway, 2600: A. Sias Jr. & S. Gibbs to M. Cabrera, $50,000

Harrisburg property sales for September 2014, greater than $30,000. Source: Dauphin County. Data is assumed to be accurate.

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