Tag Archives: Commonwealth Court

October News Digest

 

Funding Dispute Hits SAM
 
A battle over state funds has pitted a bank against a local construction firm and put in question the future of the newly opened Susquehanna Art Museum.

Last month, the Dauphin County Industrial Development Authority asked the Commonwealth Court to intervene in a dispute between the Harrisburg-based JEM Group and Fulton Bank, which both are laying claim to $1.2 million of a state Redevelopment Assistance Capital Program grant.

JEM, the project’s general contractor, states that it is owed the money as part of its construction fee and cannot pay its subcontractors without it. Fulton put a claim on the money after SAM failed in March to repay half of a $3 million loan.

At press time, negotiations between the parties had opened, but no resolution had been reached.

SAM opened its new, 20,000-square-foot facility in Midtown Harrisburg last January to great fanfare. However, museum officials since have said they have not been able to meet ambitious fundraising goals.

Leaf Collection Changed

Harrisburg is changing its leaf-collecting procedure this year, asking residents to use compostable paper bags for leaf collecting and disposal.

Moreover, the city is urging residents not to rake leaves into the street, which has been a common practice for many years.

“We are asking Harrisburg residents to cooperate with our Public Works employees this fall to help the city efficiently manage leaf collections,” said Mayor Eric Papenfuse. “We strongly encourage residents not to blow leaves into the street, but to put them in brown paper bags that workers can take to the Swatara Township composting site.”

The administration said that the city has a “limited number” of large brown bags available to residents for free. They can be picked up at the Public Works Center at 1820 Paxton St. during regular work hours from 7:30 a.m. to 4 p.m. Otherwise, residents will need to buy the bags, which can be purchased at many stores, including hardware and home improvement stores.

After collecting the leaves, residents should leave the bags on curbs for collection during street cleaning days. Plastic bags will be not accepted.

Bridge Rehab Work Approved
 
The Harrisburg City Council last month agreed to enter into an agreement with a civil engineering company to provide pre-construction services for two city bridges.

Council unanimously agreed to hire Herbert, Rowland & Grubic at a cost not to exceed $77,700 for design, engineering, permitting and other services for the bridge that carries Market Street over Paxton Creek and the bridge that carries Sycamore Street over the railroad tracks.

According to the city, inspections have revealed “deteriorating conditions” on both bridges.

City Engineer Wayne Martin said that the administration had not yet agreed on a funding source for the actual construction work, but may use a portion of the state liquid fuels tax, which is provided to municipalities for roadway maintenance and construction.

PHFA Expansion Weighed

The Harrisburg City Council last month began consideration of a proposal to add about 35,800 square feet of office space to the riverfront headquarters of the Pennsylvania Housing Finance Agency (PHFA).

PHFA’s plan includes construction of a 120-foot tall office tower in a surface parking lot at the rear of the agency’s current, eight-story building at 211 N. Front St.

The project also would raze a mid-20th century addition to the historic Hickok Mansion, located at the corner of Locust and Front streets and also owned by PHFA.

The plan previously had been approved by both the city Planning Commission and the Zoning Hearing Board.

PHFA has been trying to expand its decade-old headquarters for the past several years.

To do so, it first proposed razing the Hickok Mansion, and, after that met with public opposition, proposed knocking down two 19th-century houses on Locust Street. The final plan preserves both the original mansion and the two houses.

Donor Names Sought

An attorney in a legal battle with Harrisburg over its gun laws plans to appeal a ruling in the city’s favor over the privacy of donors to a legal defense fund, according to court filings.

Joshua Prince, of the Berks County-based Prince Law Offices, requested court transcripts for an appeal after Dauphin County Judge Andrew Dowling ruled the donors’ names could be kept private.

Prince is representing a gun-rights membership organization in a separate lawsuit against Harrisburg over its firearms ordinances. He sought documents, including donors’ names and addresses, in an open records request last February.

The city provided a list with the names and addresses redacted. Prince appealed to the state open records office, which ordered the city to release the full record.
Dowling, however, agreed with the city on appeal that the identity of donors is exempt under state open records law. He also sided with the city in finding it had provided records sufficient to meet other parts of Prince’s request.

Harrisburg set up its legal defense fund earlier this year after two groups sued the city over its ordinances regulating the use and ownership of firearms.

 
So Noted

Char’s Tracy Mansion is up for sale as owner Char Magaro last month announced her intention to retire and sell her Front Street restaurant. Magaro said that she had hired Lancaster-based Strategic Endeavors to manage the sale of the fine-dining restaurant, which she opened about three years ago after closing her original bistro in Shipoke. Magaro said she wanted to spend more time with her grandchildren and in her role as vice chair of the environmental group, Citizens for Pennsylvania’s Future.

Mulligan’s Pub has a new name and look after a redesign of the downtown Harrisburg bar. The interior of the renamed Mulligan’s Café and Courtyard has been divided in two, with the front area dominated by a large bar and the back area featuring an interior courtyard, which primarily serves as a restaurant. Mulligan’s, located at 17 N. 2nd St., is one of four Harrisburg establishments owned by Kamionka Entertainment Group.

Danielle Bowers has been named to the Harrisburg Zoning Hearing Board. The City Council last month unanimously made the appointment, with a term that expires in July 2018. Bowers is a research analyst for the Tourism and Recreational Development Committee of the state House of Representatives and holds a master’s degree in public administration from Penn State.

Changing Hands

Adrian St., 2433: Harrisburg Rentals LLC to C. Austin, $64,000

Calder St., 102: C. McCormack to K. Goodling & K. Shepherd, $149,900

Croyden Rd., 2871: J. Staniszewski to G. Dennis & S. Campbell, $60,000

Derry St., 2060: KSAG LLC to S. & M. Mejia, $140,000

Duke St., 2610: Residential Mortgage Loan Trust 2013 TT2 to M. & M. Kaif, $67,500

Graham St., 610: W. Taylor & S. London to Cment Enterprises LLC, $33,000

Green St., 802: K. Sheets to P. Rosen, $199,900

Green St., 1525: Mid Penn Bank to C. & S. Bikle, $35,000

Green St., 1704: L. Stevens to B. & C. Hansen, $199,900

Green St., 2006: Becodi Associates to B. Colucci, $129,900

Green St., 2915: J. & S. Kelly to K. Manderino, $211,000

Green St., 2932: J.A. Hartzler to B. & A. Smith, $330,900

Herr St., 403: S. Hankins to C. Kotlarski, $104,900

Herr St., 850 & 900: Acquired Capital I LP to Cameron Street Investments, $281,000

Kensington St., 2232: Harrisburg Rentals LLC to C. Austin, $62,000

Market St., 1849: Acquired Capital I LP to Nish Properties LLC, $40,000

Market St., 1927: J. Santiago to K. & E. High, $88,000

Midland Rd., 2408: H. McFarland to J. Jaxheimer, $40,000

N. 2nd St., 306: G. Dobrinoff to NJR Group LLC, $120,000

N. 2nd St., 1509: Flores Prado Real Estate Inc. to J. Tang, $42,000

N. 2nd St., 1517: W. Oliver to N. Shamatutu & K. Kelly, $203,550

N. 2nd St., 1605: NR Group LLC to T. Wylie, $269,000

N. 2nd St., 2531: M. & H. Hope to S. Mirza & F. Jabari, $60,000

N. 3rd St., 916, 918, 920 & 922: EFA Co. LLC & Mosaica Education to Third Street Partners LLC, $900,000

N. 3rd St., 1312: 1312 North 3rd Street LLC to Qui Zhen LLC, $250,000

N. 3rd St., 3215: R. & P. Alexander to L. Grandstaff II, $169,900

N. 4th St., 1619: GWD Capitol Heights LP to C. Hippensteel, $104,900

N. 4th St., 1701: J. & B. Sadlier to R. Steinmetz III, $115,000

N. 4th St., 2709: B. Siddons to T. Landis, $103,000

N. 7th St., 1943, 1945 & 1947: P. Dobson to Shentel Communications LLC, $65,250

N. 7th St., 2926 & 2940: Casim Inc. to Seventh Street Real Estate Holdings LLC, $224,000

Peffer St., 264: M. Linksie to J. Stimple, $105,000

Pennwood Rd., 3203: PA Deals LLC to Heller Investments LLC, $106,000

Radnor St., 127: E. Poling to A. Mentzer & S. Jones, $229,500

Shellis St., 2102: A. Bos to T. Thanasakrungruang, $53,250

S. 12th St., 1517: Joy Ark Builders Inc. to A. Early, $51,000

S. 13th St., 216 & 228: B. Santago to Keystone Community Development Corp., $35,000

S. 15th St., 226, 228, 232, 234 & 1430, 1436, 1438, 1440, 1442, 1444 Derry St.: T. Koutsokostas to Willow LLC, $120,000

S. 18th St., 1218: S. & M. Mavric to J. Johnson, $99,999

S. 20th St., 1226: R. & G. MacWhinnie to W. & M. Branche, $132,000

S. 26th St., 601: M. Brown & S. Anderson to D. Aye, $74,000

S. 26th St., 605: US Bank NA Trustee to L. Mosley, $38,000

S. Cameron St., 1119: Statewide Enterprises LLC to Paradise Pizzeria & Coffee Shop LLC, $575,000

S. Front St., 317: M. Homa to A. & K. Thornton, $119,000

S. Front St., 587: D. & W. Weigle to M. Robert, $114,000

Susquehanna St., 1703: S. Everett to R. Taylor, $103,000

Valley Rd., 205: C. Best to K. Stewart, $155,000

Vernon St., 1413: E. & A. Castillo to T. Sweet, $75,000

Walnut St., 407-409: J. & C. Bowen to M. Kurnig, $225,000

Harrisburg property sales for September 2015, greater than $30,000. Source: Dauphin County. Data is assumed to be accurate.

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September News Digest

Tax Hike Suggested
 
Harrisburg Mayor Eric Papenfuse last month proposed tripling the local services tax to help close an estimated $6 million budget gap for the year.

Papenfuse introduced the idea during the annual State of the City address, saying that the Harrisburg Strong financial recovery plan needed to be amended because some revenues, including parking revenues due to enforcement snags, have fallen short of projections.

Under this plan, the local services tax would increase from $1 to $3 per worker per week. The increase would generate about $4 million a year, according to the administration.

The increase must be passed by City Council and approved by the Commonwealth Court. Papenfuse later said that Fred Reddig, a state official and the city’s Act 47 coordinator, supports the idea.

During his speech, Papenfuse also urged Harrisburg-based businesses to help the city financially by ceasing to use private haulers for trash collection. In addition, he floated the idea that the city should consider Home Rule, which would allow it to have greater control in its own affairs.

Papenfuse said that Home Rule was the “only real way out” of Act 47 financial oversight. Many municipalities in Pennsylvania, including Carlisle, have Home Rule charters, but achieving Home Rule would take years.

 
Reed to Stand Trial
 
The criminal case against former Harrisburg Mayor Steve Reed will go to trial, a judge determined last month.

Following a daylong preliminary hearing, Senior Magisterial District Judge Richard Cashman said the state could proceed with a case against Reed on all 485 counts against him, covering a wide range of alleged corruption.

At the hearing, the prosecution presented evidence that Reed had violated numerous laws, including that he had kept in his possession hundreds of artifacts purchased with city money. Reed allegedly bought the artifacts for several museums that he had proposed building in the city.

The defense team, led by Henry Hockheimer of the Philadelphia-based firm of Ballard Spahr, refuted those charges, stating that the property rightfully belonged to Reed.

Separately, Reed’s attorneys last month filed a motion asking the court to dismiss more than 300 counts against him, claiming they were not valid because the statute of limitations had expired.

Sinkhole Application Favored
 
The state has ranked Harrisburg first in Pennsylvania to receive federal sinkhole mitigation funds, the city learned last month.

The Pennsylvania Emergency Management Agency sent a letter to Harrisburg saying its application for a federal Pre-Disaster Mitigation Grant for sinkhole remediation had been ranked No. 1 in the state.

The city is seeking grants for sinkhole repair and home demolition and buyouts in a hard-hit area of S. 14th Street.

The state support, while positive, does not guarantee that Harrisburg will receive the award, said Mayor Eric Papenfuse. Only state emergency management agencies are eligible to apply for grants under the program, but awards are not allocated on a state-by-state basis.

 
 
 
LED Project Gets Green Light

Harrisburg’s plan to upgrade all of its streetlights with long-lasting LED lights is set to begin this month after the City Council approved funding for the project.

Council last month voted unanimously to borrow $3.2 million from M&T Bank for the LED conversion project, the city’s first major borrowing since the financial crisis shut it off from the credit markets. Council then voted unanimously to contract with The Efficiency Network, based in Pittsburgh, to perform the citywide installation of about 6,000 lights.

The administration estimates that the upgrade will save the city about $500,000 annually in energy costs, which should cover the cost of the financing. As part of its contract, The Efficiency Network guarantees the savings for a 10-year period.

Mayor Eric Papenfuse said much of the work would be done this fall, but probably would not be completed until early next year.

Council also authorized the administration to apply for a $3.6 million grant from Impact Harrisburg, a nonprofit set up as part of the city’s financial recovery plan to assist its infrastructure and economic development efforts. Impact Harrisburg is in the process of hiring an executive director, which it must do before considering applications for grants.

If Harrisburg receives the money, the city would pay off the loan early and use the savings from reduced energy costs for other purposes, Papenfuse said. The loan carries a prepayment penalty of 3 percent.

The city already has received a grant of $500,000 to offset some of the cost of the LED project.

 
Campbell Gets Probation
 
Former Harrisburg Treasurer John Campbell last month was sentenced to three years of probation for stealing money from three nonprofit organizations.

As part of his sentence, Campbell turned over a restitution check for $26,230, which will repay Historic Harrisburg Association, the Capital Region Stonewall Democrats and Lighten Up Harrisburg for the thefts.

In all, Campbell pled guilty to one misdemeanor and two felony counts.

Campbell was executive director of Historic Harrisburg and a volunteer treasurer for both Lighten Up Harrisburg and the Stonewall Democrats when the thefts occurred. He was not charged with any crimes in his capacity as city treasurer.

Dauphin County Common Pleas Judge Scott A. Evans is allowing Campbell to serve his probation in the Washington, D.C., area, where he now lives.

 
Bar Loses Appeal

A Midtown Harrisburg bar targeted for closure by the city has lost its appeal, and now has taken its case to court.

The city’s License and Tax Appeal Review Board rejected the effort by the Third Street Café (formerly Club 1400) to retain its business license and continue operating from its building at the corner of N. 3rd and Calder streets.

The three-person appeals board unanimously sided with the city, which alleges that the bar attracts criminal behavior, especially drug activity.

“The owners and operators of the Third Street Café consented to or allowed behavior on and around the premises that constituted crimes under federal, state and local laws,” concluded the board in its Aug. 28 decision.

The city has tried for months to revoke the bar’s business license. In late March, it sent owner Tony Paliometros a letter stating it planned to revoke the license, giving him 30 days to cease operations. Paliometros appealed the revocation, and a one-day appeals hearing was held in late May.

After losing the appeal, Paliometros immediately appealed that decision to the Dauphin County Court of Common Pleas and was granted a stay to remain open. The court appeal is scheduled for Oct. 9.
 
 
Housing Market Stable

Housing sales and prices were relatively stable in August, compared to the same period last year.

Throughout the region, 783 houses sold at a median sales price of $165,000, according to the Greater Harrisburg Association of Realtors. In August 2014, 781 houses sold for a median price of $165,000.

In Dauphin County, 265 houses sold at a median price of $144,900. In Cumberland County, 268 houses sold for a median price of $179,900 and, in Perry County, 27 houses sold for a median price of $165,000.
 
 
So Noted

The Harrisburg Downtown Improvement District and Recycle Bicycle last month launched a Downtown Bike Library, which allows people to borrow and then return a bike, a helmet and a lock at no cost from the HDID office at 22 N. 2nd St. This program is considered a pilot program to the Bike Share Harrisburg initiative that is in the works to bring a bike share program to the city.
 
The Millworks last month started a lunch service, which begins at 11 a.m. Tuesday to Friday. The Midtown Harrisburg restaurant and art space opened in March for dinner, Tuesday through Sunday. It then added weekend brunch hours.

Bricco halted its lunch service last month in favor of expanding its catering business with Ciao! Bakery, in an endeavor now called Bricco-Ciao! Catering. The menu consists of both Ciao’s sandwiches and Bricco’s Mediterranean-inspired dishes. Bricco, at the corner of S. 3rd and Chestnut streets, remains open for dinner.

The Kitchen at H*MAC last month announced new lunch and brunch hours. The restaurant, located at 1110 N. 3rd St., Harrisburg, now is open for lunch on Monday to Friday beginning at 11 a.m. and for brunch on Saturday and Sunday beginning at 10 a.m.

Arepa City, which specialized in the Venezuelan sandwich called the arepa, closed last month after more than six years in downtown Harrisburg. Owner Daniel Farias said customers didn’t follow the restaurant after it moved into larger space further down N. 2nd Street. Farias said he plans to continue his catering business.

Frederic Loraschi Chocolate opened a retail location and production facility at 4615 Hillcrest St. in Colonial Park. For years, the chocolatier has made his high-end confections from a converted kitchen in the basement of his Hummelstown home. The new shop allows consumers to buy directly from him.

 
Changing Hands

Berryhill St., 2101: R. Pickles to D. Maxwell, $96,500

Calder St., 116: M. DePhilip to D. Goldman, $150,000

Chestnut St., 2100: W. & K. Richards to H. Trauffer, $65,000

Curtin St., 543, 2135 N. 4th St., 1949 Berryhill St., 545 Benton St. & 2314 N. 4th St.: Susquehanna Bank to MBHH RE LLC, $107,000

Graham St., 118: B. & K. Elgart & Cartus Financial Corp. to P. Furlong, $219,900

Green St., 1924: D. Miller & R. Finley to G. O’Loughlin, $214,900

Hale Ave., 428: Metro Bank to T. & K. Vu, $42,500

Herr St., 409: W. & F. Moore to D. Jordan, $106,000

Industrial Rd., 3360: Conewago Contractors Inc. to Norfolk Southern Railway Co., $7,500,000

Kelker St., 319: K. Hancock to J. Marks, $60,000

N. 2nd St., 1311: J. Feldman to T. Gray, $78,700

N. 2nd St., 1406: F. Magaro to C. Albers, $149,000

N. 2nd St., 1520: E. Spaar to N. & R. Masterson, $94,000

N. 2nd St., 1708: D. Shreve to J. Seigle, $171,300

N. 2nd St., 1829: E. Stuckey to M. Nolt, $126,000

N. 2nd St., 3206: R. & P. Kotz to S. Margut, $178,000

N. 3rd St., 1606: Fannie Mae to Anselmo Brothers Partnership, $52,500

N. 3rd St., 2243: Kusic Financial Services LLC to A. & M. Collins, $58,000

N. Front St., 2609: Supreme Forest of Tall Cedars to A. Hartzler, $225,000

Penn St., 1820: Bayview Loan Servicing LLC to PA Deals LLC, $50,250

Penn St., 1917: S. Stauffer to S. Cline & J. Lemon, $118,500

Penn St., 1920: WCI Partners LP to C. Clabaugh, $159,900

Rudy Rd., 2141: A. McKenna to M. McNelis, $142,900

Rumson Dr., 2586: Beneficial Consumer Discount Co. to PA Deals LLC, $43,299

Schuykill St., 518 & 522: M. & A. Parsons to J. & B. Readinger, $37,500

S. 15th St., 347, 1529 Catherine St., 1615 Naudain St., 30 Balm St., 1822 Park St. & 22 Balm St.: I. Colon to C. Harp, $30,000

S. Front St., 555: Ashbury Foundation to D. Ogg, $82,500

State St., 115: Pennsylvania Bar Association to Commonwealth Strategic Solutions LLC, $172,000

State St., 231, Unit 504: LUX 1 LP to M. & K. Lastrina, $144,900

State St., 231, Unit 505: LUX 1 LP to M & K. Lastrina, $154,900

State St., 1336: D. Pinnock to D. Vining, $37,000

Susquehanna St., 1833: G. & K. Ender to J. Secrest, $42,500

Swatara St., 2416: M. Gaston et al to D. & E. Davenport, $129,600

Thompson St., 1257: Jamil Karim LLC to Harrisburg Housing Authority, $80,000

Woodbine St., 502: K. Bethea to C. Guerrier, $40,000

 

Harrisburg property sales for August 2015, greater than $30,000. Source: Dauphin County. Data is assumed to be accurate.

 

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TheBurg Podcast, June 26, 2015

Welcome to TheBurg Podcast, a weekly roundup of news in and around Harrisburg.

June 26, 2015: This week, Larry and Paul talk trash – starting with the law that emboldened gun rights groups to sue Harrisburg, which a court ruling this week consigned to the dustbin, and moving on from there to the overhaul of city sanitation services.

Special thanks to Paul Cooley, who wrote our theme music. Check out his podcast, the PRC Show, on SoundCloud or in the iTunes store.

TheBurg Podcast can be downloaded by clicking on the date above or by visiting the iTunes store. You can also access the podcast via its host page.

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After the Fall: A church collapse, a bishop’s arrest and the mayor’s crackdown on blight.

church collapse

On the night of Feb. 21, just after 6 p.m., the Harrisburg fire department responded to a call about the partial collapse of a building on S. 12th Street, near the border between Harrisburg and Steelton.

The building, a three-story brick warehouse on a steeply sloping road above S. Cameron, had been abandoned for several years. Its south wall, covered in scraggly vegetation, had long showed a 10-foot-by-5-foot hole from a prior collapse. This time, the roof had caved in, dragging power lines down onto a neighbor’s porch and spilling bricks from the north wall into a nearby yard.

Crews evacuated two families from a neighboring property and searched the premises for squatters. More than an hour later, around 7:40 p.m., police arrived with the building’s owner, a 48-year-old pastor named Augustus Sullivan. Sullivan is the founder of the Victory Outreach Christian Church, which had once called the building home. Tall and fit, with closely shaved salt-and-pepper hair and a trim goatee, he showed up wearing a baseball cap and a nondescript puffy coat. Most of the reporters on the scene appear not to have recognized him. Ewa Roman, with CBS21, later recalled hearing a small commotion, followed by a voice saying, “The owner’s here, the owner’s here.” News cameras surrounded Sullivan, filming and taking pictures while officers led him in handcuffs to a police van.

A few days before the collapse, at a public forum in city hall, Harrisburg’s new mayor, Eric Papenfuse, had promised to take a harder line on blight. The forum, hosted by PennLive, featured a panel discussion with the mayor, the police chief, the public works director and members of City Council. It covered topics ranging from snow removal to police patrols and potholes.

When the moderator brought up blight, Papenfuse laid out his vision for enforcement. It included merging the city’s codes office into the police department and conducting warrant sweeps to catch known offenders. It also included increasing misdemeanor charges for negligent property owners, for things like creating a public nuisance and reckless endangerment. “In many cases we know who the largest offenders are, we know where they live, and it’s simply a matter of going out and, basically, getting them,” Papenfuse said.

On Friday night, police stood outside long enough for Sullivan, ball cap removed, to be photographed and filmed by news media. He was ultimately charged with three misdemeanors: public nuisance, reckless endangerment and failure to prevent a catastrophe. After his arrest, the fire chief held an impromptu press conference at the scene, during which he adopted the same tough stance as the mayor. “I think this should send a resounding message to the slumlords in the city of Harrisburg that we will no longer play the game with you,” he said. “We are going to come after you, and we are going to make the city right again.”

On Monday, the city released a stack of records showing a series of codes violations for the church going back to 2008. By that point, a clearer picture had emerged of exactly whom the city had arrested. Sullivan, who formally goes by the title The Apostle Dr. A. E. Sullivan, Jr., is the president of the Interdenominational Ministers Conference of Greater Harrisburg, a politically active association of black preachers. In the fall, he had spoken out forcefully against the state-appointed receiver’s recovery plan for the city. He had even shown up in Commonwealth Court to protest its confirmation, though he filed no formal objection. In early 2013, it was rumored that he had contemplated running for mayor.

Sullivan’s arrest polarized the community. Some saw a justly harsh response to dangerous negligence—the collapse would ultimately displace nine people for more than a month. But others saw a politically motivated attempt to humiliate a prominent black leader. The day after the arrest, Sullivan’s attorney told a reporter for PennLive that her client had no knowledge that the building was unsound. She would later complain of “disparate treatment,” citing a “long list of people” facing similar violations who were not arrested in the same manner. (Sullivan has since filed a civil complaint, alleging that, when the city eventually demolished the church, it did so without proper notice and at an excessively high cost.)

It’s one thing to make a campaign promise, and another actually to follow through, especially when doing so implicates people with deep ties in the community you serve. In the weeks after the collapse, Papenfuse stood by his officers while Sullivan’s supporters rallied. The mayor’s crackdown on blight, barely inscribed as policy, was facing its first real test. 

________________________________

A week and a half before the collapse, Sullivan was preaching in a church in São Marcos, a town in the southernmost state of Brazil. He had arrived that morning, Tuesday, Feb. 11, and would stay in the country for nearly a week, preaching in and around the state capital, Porto Alegre. His host for the trip, a pastor named Mauro Lastra, recorded his itinerary in a guestbook on Sullivan’s website. According to Lastra, Sullivan mostly preached in the evening, in services that ran until midnight or later, and that often included weeping, speaking in tongues, “healings” and “deliverances.” “The service ended and no one wanted to leave,” Lastra wrote of one church visit, from which the pastors didn’t return home until 4 a.m. “The Ap. Sullivan was praying one by one until all are blessed by God.”

The Brazil visit was one of the several international trips Sullivan has made in recent years, in his capacity as the CEO of Apostle A. E. Sullivan Global Ministries. On his website, Sullivan identifies himself as the “Founder, Chief Apostle, Senior Bishop & Presiding Prelate” of a global network that includes “over 5,750 churches in 54 nations.” In 2010, according to a related Facebook page, he went on a “gospel crusade” to Kenya, Uganda, Rwanda and the Democratic Republic of the Congo. In November of 2012, he traveled to the Caribbean for 18 days, visiting places like St. Kitts and the Cayman Islands. In June of 2013, he spent 11 days in the Philippines; in November, he traveled to Paris and Brussels.

It’s not clear whether Sullivan funded these trips on his own or through his corporation. Although the Global Ministries is a registered non-profit in the state of Pennsylvania, it was only incorporated last October, and there’s little public record of its activities. Before each trip, however, the network would petition Facebook followers for financial assistance, referred to as a “love gift” or “seed.” The fundraising was usually explicitly about Sullivan’s international ministry; in requesting checks for the trip to Paris, for example, supporters were instructed to put “Attn: Crusade to France” on the envelope. But the checks were usually to be made out to an entity closer to home—the Victory Outreach Christian Church.

Sullivan founded the V.O.C.C. in January of 1999. His church was non-denominational and formed in the evangelical mold, with a strong reliance on scriptural interpretation and a tone of revivalist fervor. “We are anticipating a mighty move of God,” the church’s Facebook page says in one post. “God is confirming His word with signs & wonders following,” it says in another. His services often featured “altar calls,” during which people in attendance come forward to the preacher and publicly recommit themselves to Jesus Christ. In a photo of one altar call, during his trip to Brazil, a small crowd presses towards Sullivan, their eyes closed and their arms raised. In the center is a woman with a stricken look. Sullivan, his back to the camera, reaches out to touch her cheek.

Sullivan’s formal religious training took place at the Grace Bible Institute, a school of theology that opened around the same time as the V.O.C.C., initially operating out of a church basement in Steelton. (In his resume, Sullivan also claims to have graduated from the Interdenominational Theological Center, a consortium of historically black seminaries in Atlanta, although the ITC’s registrar had no record of this.) Isaac Edwards, a graduate of the Grace Bible Institute whose father, Peter Edwards, was its founder and president, told me the school had an open-ended style of instruction, emphasizing that many matters of religion were “up for interpretation.” Its curriculum drew on the work of various Protestant theologians, especially Charles Hodge, a leading figure in a 19th-century tradition known as the Princeton Theology, which emphasized scholarship and devotion to the Bible.

Grace Bible Institute had a brief tenure. Isaac told me it was “hard to get people to pay” their tuition, and after his mother died in 2005, his father closed the school. While it lasted, Grace also seems to have struggled with a tension, not unheard of in religious studies, between the anxiety over official recognition and the primacy of personal faith. In one sense, the thinkers who inspired its creation spurned the need for official endorsement. Another theologian who featured prominently in studies at Grace was John Wycliffe, the 14th-century English reformer who, in a rejection of Roman Catholic hierarchy, encouraged a movement of itinerant preachers who lacked any formal consecration. At the same time, like other institutes of higher education, Grace offered bachelor’s, master’s and doctoral degrees. It sought accreditation, and, according to Isaac, received it, though the agency he referred me to, TransWorld Accrediting Commission, claimed never to have heard of the school.

In the summer of 1999, Sullivan moved his church into the property on S. 12th Street. After the collapse, it was reported that the building was 117 years old, but Ken Frew, with the Dauphin County Historical Society, says it might be significantly older. An 1871 city map identifies a brick building on the site as the Lochiel School, which educated the children of immigrant workers at the nearby Lochiel Iron Works. Apparently it was conceived as a market house, with an auditorium on an upper floor, but that purpose was quickly abandoned. In 1909, students relocated to the new Foose School on S. 13th Street, after years of what a Harrisburg Telegraph article described as “many severe criticisms” of the 12th Street building’s “poor adaptation for school purposes.” The paper said people called it the “old barn.” Sometime after the students left, it became a candy factory. In 1967, Cumberland Electronics bought it, and it spent 26 years as a warehouse, storing TV antennas and vacuum tubes.

By the time Sullivan’s V.O.C.C. held services there, the building had been a church for several years. Initially, Sullivan rented the space from a Spanish-language congregation that had bought it in 1993. In 2004, Sullivan entered an agreement to purchase the building for $25,000—$10,000 upfront, plus three-and-a-half years of interest-free monthly installments of $350. The agreement included a clause acknowledging the property’s “good condition” at the time of sale, although David Rodriguez, a reverend with the Spanish church, told me that bricks were already falling down when the building changed hands. “They told me they were going to renovate,” he said.

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In July of 2008, about a year later than expected, the V.O.C.C. finally finished its monthly payments, and Rodriguez deeded the building to Sullivan. The trouble with the city’s codes department began almost immediately. In October, the fire bureau forwarded a complaint that bricks were falling from the building’s south wall. A codes inspector named Charles Jenakovich paid a visit and filed a notice of non-compliance. A month and a half later, after Sullivan took no action, he returned and issued a citation. “Extremely hazardous condition as bricks falling from over 30 feet onto public area,” he wrote. A couple of months later, in January of 2009, the city condemned the building.

The paper trail following the condemnation order is a good study in the frustrations of codes enforcement. Per the order, the V.O.C.C. had to cease use of the building immediately and, within 20 days, obtain permits for either demolishing the property or bringing it up to code. Sullivan acknowledged the order within a couple of days, eventually obtaining a $50,000 bid from a renovations company for necessary repairs. But after that, Sullivan appears to have done nothing further for more than a year. The next citation is dated April 23, 2010, when Jenakovich visited and noted a “[f]ailure to repair or demolish unsafe structure.”

The first delay was only the beginning. For the next year, Jenakovich issued citation upon citation, about once every two months, as Sullivan continued to do nothing. Codes citations work like parking tickets: the owner can plead guilty and pay the fine, or he can appeal, but the city will continue citing until the underlying issue—the illegally parked car, the property’s non-compliance—is resolved. There is a way to ramp up the pressure: upon the fifth guilty plea, the citation becomes a misdemeanor. But unfortunately, as with parking tickets, building citations can also be ignored, at which point enforcement depends on the district judge.

In April of 2011, the church building suffered another partial collapse. On April 25, Jenakovich issued a final citation—his ninth since the condemnation. David Patton, the city’s codes administrator, wrote to Pierre Ritter, then the police chief, requesting a reckless endangerment charge. That same month, Sullivan’s wife had passed away, and, according to Patton, then-Mayor Linda Thompson postponed enforcement, saying that Sullivan needed time. Patton recalls telling Thompson he was sorry about Sullivan’s wife, but then adding, “Some people are going to join her if we don’t do something.”

On June 2, 2011, Sullivan met with city officials and Thompson, who granted him 30 days to come up with a plan. Once again, Sullivan stalled. In early August, Patton emailed Thompson’s director of building and housing, Jack Robinson: “The time for him to do something has way expired. I need to know what’s going on.” On Aug. 17, a passerby called to alert the city that bricks were falling from the building and the barricade had been removed. On Oct. 7, Patton sent another email to Robinson: “Bishop Sullivan has yet to do anything about his deteriorating property…As we approach the freeze thaw season, my fear is that there will be a collapse…again.”

Finally, in late October of 2011, Sullivan obtained a structural analysis of the church, which determined that the building was salvageable but had “a number of major structural deficiencies.” In addition to the partially collapsed wall, the engineer also noted that the roof was caving in and that the floors on the lower stories were insufficiently supported. A month later, at the behest of the city, a York-based contractor provided a demolition estimate of $212,000.

At some point, Sullivan seems to have gotten the impression that the city would delay enforcement indefinitely while he sought funding for repairs. In February of 2012, after a few failed attempts to find financing and four months of inaction on the property, he met with PNC Bank. A week later, he wrote to Patton: “We talked about a number of things but some of these things do not move as fast as we like. Bankers and banking moves at a pace all of its own unfortunately.” He seems to have placed a higher priority on other parts of his ministry. In one Facebook post, from March of 2013, Sullivan directed followers to verses in Matthew and II Timothy “to firmly see & accurately know that we are living in ‘the last days’ and ‘the end times.’”

“I didn’t understand how somebody so vocal in the community could be doing this,” Patton told me. During a site visit, one of his officers noticed that the V.O.C.C.’s signs had been removed from the building. They assumed Sullivan was trying to dissociate himself from the property. Feeling no support from the mayor, Patton kept a subfolder of email correspondence and other records on the building—in the event of a collapse, he wanted a record of his efforts.

After Sullivan filed his civil suit, many of the folder’s contents wound up appended to the city’s objections. At the bottom of the file is an email Patton sent to Mayor Thompson, dated Feb. 12, 2013. The church property, he wrote, was “getting worse,” and he had managed to track down Sullivan’s home address. “I have 5 warrants for his arrest,” he concluded. “Permission to execute.” The mayor did not reply. (In a March 21 interview with abc27, Mayor Thompson said she had given Sullivan “no preferential treatment,” though she did acknowledge working with him while he sought “financial aid.”)

Patton, who continued paying visits to the site, told me he had a feeling something would happen this year. “It was really plaguing my mind, that someone would get hurt,” he said. I thought of a clip from Fox43’s coverage the night of the collapse, in which one of the evacuated neighbors, rattled and on the verge of tears, wonders in fragmented English about what might have happened if the church fell another way. “How many families, you know?” she says. “We can die.”           

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In the weeks after the collapse, the church community rallied behind Sullivan. As president of the Interdenominational Ministers Conference, Sullivan had close ties to local black church leaders, several of whom complained about the city’s response. Among those church leaders was the Rev. Earl Harris, one of the IMC’s vice presidents and the longtime pastor of St. Paul Missionary Baptist Church.

On Sunday, March 16, St. Paul’s hosted a summit for regional civil rights leaders, union organizers, clergy members and other community leaders. The event was originally slated to discuss anti-union measures in the state legislature, but, by the time it arrived, Sullivan’s arrest had become part of the program. “Come Hear the Community Response to the Unprecedented Handling of a Community Leader Bishop A.E. Sullivan of the IMC,” one event poster said.

At the summit, a long succession of speakers took to the podium, including Rick Bloomingdale, the president of the Pennsylvania AFL-CIO, several local pastors, and Jerry Mondesire, the president of the Philadelphia chapter of the NAACP. (Mondesire has since been suspended, following an inquiry into his alleged financial mismanagement of his chapter.) State Rep. Patty Kim, whose district includes Harrisburg, and who meets regularly with Mayor Papenfuse, offered a word of support for Sullivan that was noticeably hedged: “I wish he wasn’t the one to be an example of a slum landlord.”

Harris, when he spoke, described the mayor’s actions as “bullying.” He worked up to a climactic conclusion, urging people to translate their anger into political action. “We need to band together, we need to raise finances together, we need to make sure that this man gets the message that he will never do this again,” he said. “And if he keeps this attitude, if he doesn’t change it, we need to drive him out of office!” The crowd erupted with applause.

Two weeks later, I attended a lunchtime strategy meeting in the basement of St. Paul’s. Following Sullivan’s arrest, a group calling itself the Coalition for Social Justice of Greater Harrisburg had begun to meet regularly, to discuss possible actions in Sullivan’s case and, according to its Facebook page, to more broadly “affect social change.” Harris and Sullivan were there, along with Reggie Guy, of the MLK Leadership Development Institute, a local non-profit. A circle of chairs had been set out at the foot of a small soundstage, and a group of 20 or so gradually filled them, including Sullivan’s daughter and mother and a couple of his parishioners.

Sullivan wore a maroon suit and glasses. He led an opening prayer, closing his eyes and rocking back and forth gently. Afterwards, while people filled their plates with food, I took a seat beside Sullivan and asked him about the history of the V.O.C.C. He didn’t have an exact date for when the church moved to 12th Street, saying it “started piecemeal,” but that it was “early on.” I asked about the circumstances that led to his founding a church, and he said he would have to speak with his legal counsel before answering any more questions. (Sullivan and his lawyers declined subsequent interview requests.)

Harris, wearing a sweater and blue jeans, approached the podium. He began by discussing a City Council hearing scheduled for that evening, during which the heads of fire, police and codes were supposed to discuss “standard procedure” for handling building violations. Questions about procedure had become a fixation for Sullivan’s supporters—the claim that he received unfair treatment depended on how such cases were normally handled. In particular, Harris took issue with what he described as Sullivan being brought to the scene and “posed” for the news cameras. As a local deacon had put it, speaking to a television crew during the March 16 summit, Sullivan had been made to “do the ‘perp walk,’ handcuffed and shackled.”

“We’ve never had an arrest handled like this,” Harris said. He insinuated that the mayor had some control over when the collapse occurred, noting that the timing of the arrest looked “preconceived.” “If you want someone to spend the night and the weekend, when do you arrest them? Friday night,” he said. (In fact, Sullivan was released early Saturday morning.)

Harris then linked Sullivan’s treatment to larger trends of injustice. He and other ministers had recently returned from a trip with local rabbis and high school students to the Holocaust Museum in Washington, D.C. He had been particularly moved, he said, by an exhibit called “Some Were Neighbors,” which emphasized the point that Nazi collaborators “were those that were complicit with their silence.” He then returned to Sullivan and the response from certain local ministers. “I’ve heard nothing from the downtown clergy. I’ve heard nothing from the Jewish community. I’ve heard nothing from the Roman Catholic community. I’ve heard nothing from the Lutheran community,” he said. “The silence has been deafening.”

Sullivan spoke next. His attorney was there, and there was a limit to what he could say, but he wanted to clear a few things up. He began by addressing something “lingering out there” about his past. In the month since his arrest, some outlets had reported on a guilty plea Sullivan had entered in 1998 for a harassment charge—a low-grade misdemeanor. “The inference was that it involved a woman,” Sullivan said. “And it did not involve a woman. I was protecting my child, and it was 16 years ago. And every father worth a grain of salt protects his child.” He suggested that people had dredged up his court record “as a way to fracture this community.”

Sullivan also wanted to discuss the breadth of his work outside the church. For many years, he said, his attention to his own affairs “went lacking” because he was “always being called on for everything else.” On top of being president of the IMC, pastoring his church and overseeing his global network, he had served as a vice president of the NAACP, as religious affairs chair for the state and on the governor’s advisory commission for African American affairs. “In all these different capacities and in other ways, I was always giving, giving, giving,” he said. When his wife passed away, he lost the “one person” who was looking out for him. “There was nobody right there on the scene to take care of my things,” he said. But, he added, “I was not just sitting around. I was fighting for everybody else, and a lot of my things did not get addressed.”

The discussion turned to local issues of social justice. The group talked about the need to accurately inform their community, especially young people. Sullivan noted—and “we keep saying it,” he said—that there was “no black newspaper, no black radio station, nothing of that.” It was hoped that the Coalition’s Facebook page could help fulfill that role. (The next day, the page posted a photo of the city’s new firefighter hires, along with a short article that included the line, “Don’t strain your eyes, there are no known African Americans or Hispanics in this group of fire recruits.”) Reggie Guy, of the MLK Leadership Development Institute, spoke at length, connecting Sullivan’s experience to what he perceived as a larger assault on minority power in the city. “We are gentrifying this community, and we are chasing people out,” he said.

Afterwards, I spoke with a young couple introducing themselves as the Davises, who sat against one wall with a baby in a car seat at their feet. The mother, Clarissa, had joined the V.O.C.C. in its beginnings, in the summer of 1999. Through Sullivan’s church, she said, she had come to know her purpose. She felt his arrest was a “very big injustice”: if there were anything he could have done to avoid the collapse, he would have done it. “He’s an impeccable man,” she said. 

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After the meeting at St. Paul’s, I visited the demolition site. The downslope side of the building was completely intact, while the other half was torn wide open. Beyond a pile of bricks, lumber and split-face concrete blocks, you could see into the room where services must have been held. A drum set and a pair of pulpits remained onstage, beneath a large painting of a lake under a clear blue sky.

The demolition bid was awarded to Empire Services, a firm with an office in Reading, for $132,000. In the civil complaint, Sullivan says he obtained a qualified bid for $83,000, but the city claimed publicly that the job required specialized equipment, citing the church’s proximity to power lines and neighbors. At the site, an employee for Empire named Tony pointed out the massive excavator, which he said had a reach of 130 feet. “This thing was horrible,” he said of the building. “The trees were what was holding it together.”

A couple of guys drifted over. One of them, wearing a Standard Parking jacket and introducing himself as John, said he had lived in the neighborhood since 1973. Papenfuse had told me that, while he was going door-to-door during his campaign, residents in the area had “begged” him to address the church property. John now told me he was circulating a petition to get the city to knock down more structures. “I’d rather have empty lots than condemned houses,” he said. “How often do you drive through the suburbs and see a burned-out house?”

John lived next door to a rotting corner store that had been abandoned for around 10 years. Last year, some of the building’s windows had fallen out of their frames into his yard. “I got grandkids, man,” he said. 

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That evening, April 1, City Council held its hearing to discuss the city’s procedures for violators of building codes. For Sullivan’s supporters, the hearing was bound to be a disappointment before it started. They had originally called for an inquiry into Sullivan’s arrest, hoping council would hear sworn testimony from the officials involved, as it is theoretically empowered to do under the city’s charter. But Neil Grover, the city solicitor, advised that the relevant statute was seldom used and possibly unconstitutional—it would involve council questioning people under oath about matters that might be pending litigation. Instead, as Grover and Council President Wanda Williams explained at the beginning of the hearing, council would simply ask about procedures in general, and not about Sullivan’s case.

The result was a stunted and often bizarre conversation, as council tried to phrase questions specific to Sullivan’s case in sufficiently general terms. Williams began by interviewing the police chief, Thomas Carter, who gave a brisk overview of the police department’s role in a building collapse: secure the area, assist fire and codes. Then Williams asked a question at the heart of the Sullivan case. “Chief, are we consistent in what we do for every violator throughout the city of Harrisburg?”

“I don’t know what you mean by that, ma’am,” Carter said.

“Well, there was some concern that there was an inconsistency in how we, um, attempt to prosecute, or what would you say, arrest the individual,” Williams went on. “Are we consistent when we have violators of building codes? Are we consistent in what we do and how we arrest them?”

“Yes.”

“And this process has been used with other violators?”

“Yes.”

“Other code violators?”

“Yes.”

Williams turned to fellow council members. “Any other questions?”

Five minutes later, Councilwoman Sandra Reid tried to pursue a similar line. After Sullivan’s arrest, it had come out that police had escorted him from his home to the site of the collapse. Afterwards, the city attributed this to Sullivan having a suspended driver’s license, but his supporters suspected an intention to deliver him to news cameras. “Have you ever been called on in your 25 years to take someone to a collapsed building?” Reid asked Carter.

Grover interrupted. “I think you’re now moving into where we are in the middle of the litigation in questions like that,” he said. He offered a rephrasing of the question: do the police ever transport someone with a suspended license when a matter between the person and police arises? But Reid passed on Grover’s suggestion and asked instead about “standard practice” when police show up at someone’s home and have a warrant for his arrest.

“Every situation’s different,” Carter said finally. “But to answer your question, without taking into consideration this situation here, basically, yes, when we go to someone’s house and we have warrants on them, we do charge them right there. But in this particular situation—”

“We can’t talk—I don’t want to talk about this particular situation,” Reid said. “I just want to know, if somebody has a warrant, do you generally arrest them at that time.”

“It depends on the situation,” Carter said.

Eventually, after several false starts, the conversation opened up, and council members began to ask about the blight problem in general. David Patton, the codes administrator, explained that the city’s condemned-buildings list included 364 properties, many of whose owners were “whereabouts unknown.” State law allows potential buyers to start a corporation with virtually no identifying information, and when owners use those corporations to purchase properties, there’s almost no way for codes to track them down. “They go to the corporations bureau, they list a vacant lot or building as an address, and they don’t have to list any principals, agents or fiduciaries,” Patton said. “So who’re we gonna go after?”

At the end of the hearing, during public comment, Rev. Harris stood up and remarked that council’s questions, which he thought were “exceedingly good,” had revealed “inequities in how laws and rules are administered to people.” He revisited his point from the lunch session, about Nazis and their silent collaborators. “They used tactics of humiliation and shame,” he said. “Sound familiar?”

Why has the notion that the mayor staged Sullivan’s arrest to shame him proven so hard to dislodge? The city, for its part, maintains there was nothing personal about Sullivan’s treatment.  Papenfuse claims not to have even spoken with police the night of the collapse; the fire chief, Brian Enterline, told me that when codes gave him Sullivan’s name, he “didn’t even realize who it was.”

Yet the perception of a deliberate shaming has persisted. Perhaps, in part, it’s because Sullivan’s treatment had the effect a staged arrest would have aimed for. In an interview a week after the council hearing, Papenfuse suggested that the sequence of cause and effect surrounding the collapse couldn’t have been clearer. Days before it, he publicly pledged misdemeanor charges for negligent landlords. When the collapse happened, the police charged Sullivan accordingly. Afterwards, the city released its list of top violators, many of whom had since “quietly come forward to discharge their warrants.” If Sullivan’s treatment looked like “unprecedented” tough enforcement, perhaps that’s because it was. The new administration had sent the message that it was serious about conquering blight.

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In the weeks since the council hearing, Harris, the IMC and the MLK Leadership Institute have continued to keep the issue alive. On April 4, MLK hosted its annual “foot soldiers” dinner to honor regional civil rights leaders. Tickets cost $45 a head; proceeds, Guy told me, would be split evenly between Sullivan and the families displaced by the collapse of his church. (As of this writing, the IMC had made one donation, a down payment of around $2,000 towards a $4,200 electrical repair it had commissioned from an acquaintance of Guy’s.) Before dinner, Sullivan offered an invocation, and Harris gave a short speech, during which he said Harrisburg was “lucky and blessed” to face financial difficulties, problems in education, “soaring rates of STDs” and blight, “because only God can turn it around.”

On April 8, Harris joined two local rabbis at the Beth El Temple Uptown for a “Freedom Seder,” a shared Passover meal with roots in the Civil Rights era, during which blacks and Jews are urged to contemplate the meaning of freedom and slavery. (Sullivan was billed to co-lead the event, but wound up taking time off to recuperate following the stress of the collapse, Guy said.) Members of the IMC Revival Choir sang spirituals throughout the meal, including several verses of “We Shall Overcome”: “Black and white together, black and white together someday.”

At the end of the meal, I spoke to Guy in the hallway. The council hearing, he said, indicated that Sullivan’s treatment was “a sore that requires healing.” And, he added, it wasn’t just Sullivan. He urged me to consider two other recent issues: the school district, where Papenfuse had publicly called for the removal of the state-appointed recovery officer, and the Paxton fire station, which he had announced would close as a result of the firefighters’ new labor agreement. All of these events, Guy said, pointed to the mayor’s “impulsiveness and inability to sense the mood of his constituency.” “The mayor doesn’t get it,” he said.

I wondered if, conversely, Guy didn’t quite get Papenfuse. Since the moment he first spoke about Sullivan’s arrest, the mayor has been resolute that the city did the right thing, regardless of voters’ moods. “These charges are just the beginning,” Papenfuse said, at his initial press conference after the collapse. Since taking office, he has revamped the city’s in-house demolition team, assembled a task force on blight and embarked on a citywide housing strategy. He also has plans to resurrect a housing court, to remedy what he described as “inconsistent” enforcement by the district courts.

Patton, the codes administrator, says he feels his department is “gaining strength.” The city is slated to hire two additional codes officers this year; in the long-term, Patton also hopes it will assign a police investigator, who can access the state’s law-enforcement database, to building violations. (As a codes officer, Patton is barred from using the database, so he often resorts to Facebook and Google to track down delinquent owners.) Meanwhile, the merger of codes and police, which he credited to Papenfuse, had brought previously disparate efforts “under the same umbrella.” He said the move was emblematic of the mayor’s “government logic” approach—ensuring that people with a common purpose were coordinating their efforts. He was “extremely optimistic” about the mayor’s initiatives, he said. “You can see the electrification of everything here.”

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January News Digest

 

Harrisburg Receivership to End

The state last month submitted a petition to end Harrisburg’s 26-month-old receivership, stating that “critical components” of the city’s financial recovery plan had been completed.

If the petition is approved by the Commonwealth Court, the receivership would conclude on March 1, concurrent with the end of the state-declared “fiscal emergency” for the city. At that time, an Act 47 coordinator would replace the receiver to oversee and help guide implementation of the rest of the Harrisburg Strong Plan.

Just last November, the receiver’s term was extended for two years.

“The receiver is no longer vital and necessary to successful implementation of the remaining components of the Harrisburg Strong Plan in the absence of a fiscal emergency, and the remaining components of the plan can be successfully implemented by a coordinator appointed by the secretary (of DCED),” according to the petition by C. Alan Walker, secretary of the state Department of Community and Economic Development.

While most of the plan has been implemented—including the sale of the incinerator and the long-term lease of the city’s parking assets—a few parts remain unresolved, such as a new labor agreement with the city’s firefighters’ union.

The state imposed receivership on Harrisburg in November 2011 after the squabbling city government could not reach an agreement to resolve its financial crisis. Bond lawyer David Unkovic served several months in the post, drafting the initial recovery plan.

After Unkovic resigned, Air Force Maj. Gen. William Lynch took over as receiver, overseeing the creation of the final recovery plan and its implementation to date.

 

Officials Sworn In

The leadership of Harrisburg’s municipal government changed dramatically last month as several recently elected officials took the oath of office.

Eric Papenfuse became the city’s 38th mayor at a brief swearing-in ceremony in City Hall, replacing one-term Mayor Linda Thompson in the office.

At the same event, Charles DeBrunner took the oath as the new city controller, and Ben Allatt and Shamaine Daniels were sworn in as new council members. Returning Councilwomen Wanda Williams and Eugenia Smith also began four-year terms.

Following the ceremony, City Council held its reorganization meeting. Williams was re-elected council president, while Sandra Reid became council vice-president.

In addition, council made committee assignments. The new committee chairs are:

  • Administration Committee: Wanda Williams
  • Budget and Finance Committee: Ben Allatt
  • Building and Housing Committee: Shamaine Daniels
  • Community and Economic Development Committee: Brad Koplinski
  • Parks, Recreation and Enrichment Committee: Susan Brown-Wilson
  • Public Safety Committee: Eugenia Smith
  • Public Works Committee: Sandra Reid 

Each committee is made up of three council members except for the administration committee, which includes all council members.

 

Papenfuse Announces Cabinet

Mayor Eric Papenfuse last month announced his choices for most of the top administrative posts in city government. These include:

  • Neil Grover, who took over as city solicitor from Jason Hess. An attorney in private practice, Grover had served recently as special counsel to City Council.
  • Aaron Johnson, who replaced Kevin Hagerich as director of the Public Works Department. Johnson, previously the department’s deputy director, ran against Papenfuse as a write-in candidate for mayor in November, garnering about 17 percent of the total vote.
  • Bruce Weber, director of budget and finance, a post last held by long-time director Bob Kroboth. Weber formerly served on City Council.
  • Joyce Davis, a key Papenfuse advisor, as director of communications.
  • Jackie Z. Parker, a former mayor of Lebanon, as director of community and economic development.
  • Roy Christ, former president of the Harrisburg school board, as director of building and housing.
  • Lenwood Sloan as director of the newly named and reorganized Department of Arts, Culture and Tourism.
  • Carlesha Halkias, former deputy city solicitor, as director of human resources.

In addition, Karl Singleton was named as senior advisor on education and youth and Catherine Stetler as scheduler. 

The Harrisburg Regional Chamber and Capital Region Economic Development Corp. (CREDC) will fund Parker’s position in full for the first year and at 50 percent for the second and third years. The city will take over full funding of the position in year four.

 

Budget Revisited

Harrisburg City Council last month reopened the 2014 budget to better reflect the spending priorities of the Papenfuse administration.

The $78.5 million budget is about $280,000 more than the budget passed in December, reflecting a slight increase in projected revenues from the earned income tax and intergovernmental transfers.

The greatest changes came on the spending side.

Mayor Eric Papenfuse proposed abolishing the post of chief operating officer, which paid $110,000 a year. Instead, he wants to establish the position of chief of staff/business administrator at an annual salary of $79,500. A new post of community services coordinator, paying $50,000 a year, would replace the position of assistant to the COO, which paid $41,000 annually.

Other proposed changes included:

  • Creation of several new posts, including director of arts, culture and tourism, director of sustainability and director of planning.
  • Raises for a number of management-level positions, including for the director of building and housing development, the director of financial management, the director of human resources, the police chief and the communications director.
  • Consolidating certain positions, decreasing salaries for others and not filling several vacant posts.

The council’s first budget review committee hearing is scheduled for Jan. 30. A final vote on the new budget is currently slated for Feb. 11.

 

Transition Report Released

The Papenfuse administration last month released a report with dozens of recommendations on how to improve government performance.

The 17-page report contained suggestions ranging from aggressively seeking grant money to making greater use of technology to tighter integration and communication between segments of government.

A few of the recommendations include:

  • Adequately staffing the finance unit by filling vacant positions and completing financial reporting on a timelier basis.
  • Appointing or designating an arts, culture, heritage and tourism liaison officer to oversee programs, activities and events.
  • Developing and implementing a plan for upgrading the city’s website, improving content and implementing social media.
  • Negotiating public/private partnerships to supplement resources.
  • Creating a new department focused on education, youth, recreation and related matters, hiring a qualified director and staff and securing new funding and partnerships.
  • Adopting a “broken windows” law enforcement approach to reduce crime and preserve order in targeted neighborhoods.
  • Conducting an independent feasibility assessment of alternative ways of providing sanitation service.

More than 70 people served on Mayor Eric Papenfuse’s transition teams and contributed to the report, which was compiled by consultant Robert Melville.

“This report represents hours of hard work from very dedicated people who want to see Harrisburg rise out of its problems and become the model capital it should be,” Papenfuse said.

The report contains many more ideas to improve the city government’s functions and operations. Read the entire report on TheBurg’s website, www.theburgnews.com, under the “News” category.

  

Brewery Eyes Midtown Building

If all goes right, a new brewery will debut in the heart of Midtown Harrisburg in the early fall.

Alter Ego Brewing Co. hopes to open a brewhouse in long-vacant space at the corner of Susquehanna and Boyd streets, at the rear of Midtown Cinema. The 3,500-square-foot brick building would house a beer-making operation, in addition to a tasting room with a limited menu featuring small plates, paninis and finger foods, said Brandalynn Armstrong, who operates Alter Ego with her husband, Theo.

The Armstrongs have numerous hurdles to overcome before they can open, including securing a liquor license and probable land use approvals. The building also requires a complete renovation, which should begin in late spring.

The couple took their first step late last month, holding a community meeting at Midtown Cinema, where they presented their plan and answered questions.

“We want to be good neighbors and an active member of the community,” said Brandalynn. “We think it’s a good fit for Harrisburg and that Harrisburg is a good fit for us.”

In addition to offering Alter Ego beers and a limited menu, the Armstrongs will feature local Pennsylvania wines and art gallery space. No liquor will be served.

The building is owned by Lift Development LLC, which includes two partners of GreenWorks Development. A couple of years ago, the state tried to relocate the former Midtown magisterial district justice’s office and courtroom to the building, but an agreement could not be reached.

More information on Alter Ego Brewing is at www.alteregobrewing.com.

 

Changing Hands

Berryhill St., 1940: PA Deals LLC to S. Maurer, $75,000

Briggs St., 1823: Wells Fargo Bank NA to S. Dial, $99,000

Brookwood St., 2420: P. White to M. Rodriguez, $63,900

Chestnut St., 2403: H. & L. Miller to L. & M. Walton, $149,000

Green St., 1703: Wells Fargo Bank NA & J. Landis to PA Deals LLC & J. Etzle, $116,500

Green St., 2013: WCI Partners LP to L. Binda, $209,000

Green St., 2135: D. Boyle to V. Brown, $35,000

Green St., 2233: R. Shokes Jr. & Shokes Enterprises LLC to R. & D. Requa, $60,000

Kelker St., 213: J. Henning to M. Porter, $124,500

Lewis St., 228: D. Hartman to C. Moss, $59,000

Manada St., 1903: PA Deals LLC to M. & D. Graeff, $90,000

N. 2nd St., 606: D. Brown Jr. to 606 Dalmatian House LP, $754,000

N. 2nd St., 1311: Susquehanna Bank to J. Feldman, $36,000

N. 2nd St., 1313: Brick City Investments LLC to 1313 Real Estate Holdings LLC, $245,000

N. 2nd St., 1522: T. & A. Magrory to J. Cantarell & A. Meck, $168,900

N. 2nd St., 2731: Sierra Real Estate LLC to T. & N. Schmitt, $240,000

N. 6th St., 2667: J. Vogelsong to G. Di Bosco, $31,500

N. 15th St., 1603, 249 Maclay St., 438 Muench St. & 614 Wiconisco St.: R. Shokes Jr. & Shokes Enterprises to R. & D. Requa, $266,000

N. Cameron St., 1817: Integrity Bank to 1817 Cameron St. Associates LLC, $100,000

N. Front St., 1721: Susquehanna River Basin Commission to Hersha H. & Hasu P. Shah Family Foundation, $875,000

North St., 263: B. Josephs to B. Minner, $84,000

North St., 2009: J. & C. Mills to K. Snoke, $42,000

Paxton St., 1638: T. & A. Ferguson to CNC Realty Group Inc., $55,000

Penn St., 1612: J. & E. Rosentel to A. La Laz, $152,500

Penn St., 1703: Fannie Mae to B. Swisher Houtz, $63,000

S. 13th St., 342: K. & S. Probst to B. & R. Lehman, $53,000

S. 13th St., 502: PA Deals LLC to J. & A. Garbanzos, $45,000

S. 15th St., 446 & 141 N. Cameron St.: G. Neff to San Pef Inc., $45,000

S. 17th St., 325: R. Ekvall to J. Tran & D. Nguyen, $50,000

S. 18th St., 1115: K. & W. Watson to M. Kaman & A. Phatimah, $68,000

S. 19th St., 1670: The Harrisburg Authority to the Lancaster County Solid Waste Management Authority, $121,898,000

S. 28th St., 806: DML Properties LP to AWK Consulting Engineers Inc., $225,000 

Swatara St., 2025: Mussani & Co. to I. Fernandez, $65,000 

Valley Rd., 2301A: F. & J. Haas to S. Thornsley, $195,000

Vine St., 114: F. Hutchinson to J. Robles, $135,000

Walnut St., 407: J. Brown & Graci LaPorta Partnership to J. & C. Bowen, $50,000

Harrisburg property sales for December 2013, greater than $30,000. Source Dauphin County. Data is assumed to be accurate.

 

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November News Digest

Papenfuse Elected Harrisburg Mayor

Democrat Eric Papenfuse last month assumed the mantle of mayor-elect of Harrisburg, besting Republican candidate Dan Miller and write-in candidate Aaron Johnson.

Papenfuse won the race with 3,618 votes versus 2,333 for Miller and 1,213 for Johnson. Various others received another 121 write-in votes, including eight for former independent candidate Nevin Mindlin, who was tossed off the ballot after a successful petition challenge. Four votes went to Lewis Butts Jr., who campaigned as a write-in after losing the Democratic primary.

“The real victory will lie in the years ahead when our streets are clean, when our homes are safe, when our young professionals rush to get back to Harrisburg, rather than flee from it,” said Papenfuse, who, in his acceptance speech, encouraged his supporters at Midtown Scholar Bookstore to be humble and seek reconciliation with his opponents in the election.

“The true victory will lie in the days, the months, the years ahead when Pennsylvanians are once again proud of their capital,” he said. “When the people of Harrisburg once again cherish their homes, and when the rest of the nation connects Harrisburg with culture, prosperity and renaissance and not bankruptcy, despair and defeat.”

Running unopposed, Democrats Shamaine Daniels and Ben Allatt earned four-year terms on Harrisburg City Council, while sitting councilwomen Wanda Williams and Eugenia Smith were re-elected. Charles DeBrunner was elected in an uncontested race for city controller.

Papenfuse, DeBrunner and council members will be sworn in on Jan. 6.

For Harrisburg school board, Democrats Danielle Robinson, Patricia Whitehead Myers, James Thompson and Kenneth Mickens earned four-year terms. Monica Blackston-Bailey, LaTasha Frye and Adara Jackson each won two-year seats on the school board.

In Dauphin County races, Bill Tully outpolled Democrat Anne Gingrich Cornick for Court of Common Pleas judge, and incumbent Republican Stephen Farina won his contest for prothonotary against Democrat Kelly Summerford.

 

Parking Deal Passed

The Harrisburg City Council last month approved one of the most important parts of the city’s financial recovery plan, the long-term lease of its valuable parking assets.

The council authorized the city to enter into an agreement with the Pennsylvania Economic Development Financing Agency (PEDFA) and another with the Pennsylvania Department of General Services. They, in turn, will contract with a group known as Harrisburg First to run and enforce the city’s on-street parking system.

The council also authorized the transfer of city-owned off-street parking to the Harrisburg Parking Authority, which is entering into its own agreements so that Harrisburg First can operate the HPA’s parking garages and surface lots.

These steps are necessary as the city fulfills the requirements of Harrisburg Strong, the financial recovery plan designed to free the city of about $600 million in debt, solve its long-term structural deficit and provide pools of funds for infrastructure and economic development.

 

Water/Sewer Rates Going Up

Water and sewer rates for city residents are about to go up significantly, according to the Harrisburg Authority’s proposed budget for 2014.

The budget, which had not been officially adopted as of press time, projects an average increase of around $325 per customer per year. That amounts to a nearly 50 percent hike to current rates, which average around $687 annually.

Shannon Williams, the executive director of the Harrisburg Authority, explained that the increased rates are necessary to pay for long-overdue investments in infrastructure. Harrisburg’s aging water and sewer system has not been adequately maintained for years, and it now requires expensive repairs, Williams said.

“No one likes to pay more for utility services—including me. But the reality is that there were more than 40 sinkholes identified in Harrisburg in 2013. Just one of them—the famous 4th Street sinkhole—cost almost $1 million to repair. We cannot continue to punt on these decisions,” she said.

The rate increase comes on the heels of several weeks of customer concerns about expensive utility bills. Last month, City Councilwoman Sandra Reid devoted most of a public works committee meeting to water and sewer charges after she received a bill in the mail totaling several hundred dollars.

That total did not reflect a rate increase, however, but was the result of nearly 18 months of inaccurate bills, which Reid had been receiving because of problems with the city’s meter system. Batteries in the devices that transmit meter readings to the city’s electronic database have been expiring at unexpected rates, requiring the city to estimate water usage for properties across the city. Those estimates, which tended to be lower than customers’ actual usage, led to months of undercharging for Reid and several other residents.

In her announcement of the proposed 2014 budget, Williams tied the meter-battery problem to the infrastructure problem, saying both reflected the consequences of city officials deferring necessary investments onto future generations.

“If an investment had been made years ago to keep up with technology and replace those defective batteries, customers would not have had to rely on water usage estimates month after month,” Williams said. “It’s time to make the necessary investments in our future.”

 

Capitol View Sells

The unfinished Capitol View Commerce Center was sold last month in a bankruptcy proceeding to an out-of-area warehouse, distribution and storage company.

Watsontown, Pa.-based Moran Industries bought the 215,000-square–foot structure at N. Cameron and Herr streets in Harrisburg, including almost nine acres of land, for about $250,000.

Moran plans to finish the building next year then use about half the space for its own offices and rent out the other half, according to the company.

The building has sat as an incomplete shell since 2008, when unpaid workers walked off the job. Two years ago, Capitol View developer David R. Dodd pled guilty to federal charges of money laundering and misuse of government funds in connection with the project.

 

Trash Privatization Debated

Harrisburg last month announced it has selected Republic Services to be its new trash hauler, sparking another squabble between the administration and City Council.

Chief Operating Officer Robert Philbin told council that a three-person team had chosen the country’s second-largest waste hauler to collect and dispose of trash. He said the city would save about $900,000 a year by privatizing waste collection, which currently is done by the city’s Department of Public Works.

The administration had announced in March that it intended to issue an RFP to privatize trash service. Several firms then submitted bids, and the administration eventually selected Republic.

Council members, however, seemed surprised that the decision to privatize had been made definitively and that a hauler had been chosen. They also charged that they had been left out of the process.

The council’s Public Works Committee then held several hearings on the issue, focused on such issues as trash fees, workers’ jobs and the fact that equipment would have to be picked up in York each day. The proposed contract with Republic remained unresolved at press time.

 

Funds for Greenbelt Restoration

The Capital Area Greenbelt is a step closer to a significant improvement after the Harrisburg City Council last month agreed to dedicate $10,000 for a major fix.

Members of the Capital Area Greenbelt Association appealed to the council to transfer funds dedicated for environmental projects to help remediate and protect the Paxtang Parkway section near Penbrook from further damage caused by storm water erosion.

Originally, the association requested $20,000. However, Jim Warner, CEO of the Lancaster County Solid Waste Management Authority, who attended the council meeting, said LCSWMA would split the cost, kicking in $10,000. This month, LCSWMA is expected to close on its purchase of the city incinerator.

The city’s portion of the funds will be derived from the “host fee” that Harrisburg receives as the site of an incinerator that accepts trash from outside municipalities.

In addition to the $20,000, the association has received $25,000 from the Kline Foundation, enabling it to qualify for a $300,000 state grant to cover the extensive work on that portion of the Greenbelt, said Scott Shepler, an association volunteer.

 

New Antiques/Collectibles Shop

The good news keeps coming for Cameron Street, as a new crafts and re-sale co-op has opened near Paxton Street.

Crafty Antiques and Collectibles debuted in late October, featuring everything from antique furniture to old toys to holiday items.

Owners Kathy Clark and Rosemary Hibala rent out space in the 2,400-square-foot shop to a variety of vendors who showcase and sell their items. Though the long-time friends just opened their store, they hope soon to double its size by expanding next door.

“We decided to go into business because we work so well together,” said Clark.

The shop at 712 S. Cameron St. is open Tuesday to Friday, 10 a.m. to 7 p.m. and Saturday and Sunday, 9 a.m. to 4 p.m.

Recently, several new businesses have announced plans to occupy space nearby on Cameron Street. Business partners Richard Hefelfinger and Phil Dobson plan to open a blues club and restaurant across the street at 819 S. Cameron St., while Dobson says he will remake 1119 S. Cameron St. into an entertainment and events space.

Crafty Antiques and Collectibles can be reached at 717-547-6032 or CraftyAntiquesPa@gmail.com.

 

Receivership Extension Expected

The state last month requested an extension of Harrisburg’s receivership for another two years.

C. Alan Walker, secretary of the Department of Community and Economic Development, filed a petition in Commonwealth Court asking for the extension, which would run through December 2015. Most elements of the Harrisburg Strong financial recovery plan should be implemented by then.

Separately, Commonwealth Court last month gave receiver William Lynch the authority to sign documents related to the Harrisburg Strong plan on behalf of city Controller Dan Miller.

Judge Bonnie Brigance Leadbetter made the ruling after Miller had not signed off on contracts for key parts of the plan, including for the sale of the city incinerator and the long-term lease of the parking system. Both deals are expected to close this month.

 

Betsy’s Bakery Arrives Downtown

Betsy’s Bakery last month opened its second shop, serving its gluten-free baked goods from a prime location downtown.

Owners Betsy and Shannon Peffley began offering breads, sweets and sandwiches from a storefront right across the street from the state Capitol last occupied by Downtown Café.

Betsy said they decided to open in Harrisburg because so many of their customers from the first location in Camp Hill live on the East Shore. She added that there’s a growing demand for gluten-free products.

“We are 100 percent gluten-free,” she said. “Our customers with celiac disease or who have gluten-free needs appreciate that so they won’t get sick.”

In addition to baked goods and sandwiches made with Boar’s Head meats, the bakery soon will offer soups and paninis, said Betsy.

“We never expected our business to take off like it has,” she said. “We knew there was a need, but didn’t know it’d be so great.”

Betsy’s Bakery is located at 240 N. 3rd St., Harrisburg. Hours are Monday to Friday, 7 a.m. to 4 p.m. The shop can be reached at 717-236-9901 or at https://betsysbakery.com.  The original shop is at 115 St. John’s Church Rd., Camp Hill.

 

Changing Hands

Adrian St., 2453: W. Breeze to S. McKune, $58,500

Berryhill St., 2259: PA Deals LLC to J. Vergis, $65,000

Boas St., 122: D. & J. Mowery to J. Sadlock, $115,900

Boas St., 1937: S. Lopez et al to EB & ZEE LLC, $66,500

Briggs St., 233: A. & P. Cowell to T. Harris, $117,000

Cumberland St., 1416: PNL Penn Properties LP to T. Lewis, $35,000

Green St., 3030: E. & K. Peck to J. Luck Jr. & K. Kyper, $220,000

Herr St., 260: D. Leaman to S. Bruder & M. Richards, $165,500

Maclay St., 425: D. & J. Boyle to D. Perez, $31,738

Market St., 1249, 1253, 1255 & 3 S. 13th St.: Hill Café Partners to Hill Café 1249 LP, $500,278

Market St., 1859: M. & D. Nichols to Z. Reeves, $105,900

N. 4th St., 1324: L. Jones & J. Lambright to P. Little, $96,000

N. 4th St., 2030: B. Lerew to I. Alderton, $82,000

N. 6th St., 1500: 1500 SPE LP to A. Gulotta, $558,158

N. Front St., 2601: Radnor Realty to J.A. Hartzler, $200,000

Pennwood Rd., 3135: PA Deals LLC to T. Smith, $118,000

S. 20th St., 1208: T. Nguyen & T. Pham to M. Nguyen, $112,005

S. 26th St., 638: N. Reohr to J. Zimmerman, $69,900

Rudy Rd., 2145: J. Holmes & BAC Tax Services Corp. to M. & K. DeRosa, $162,900

Rumson Dr., 2920: A. & M. Tscherneff to W. Quezada & M. Cedeno, $34,000

Rumson Dr., 2983: PI Capitol LLC to C. Shenk, $64,900

Rumson Dr., 2991: Trusted Source Capital LLC to PA Deals LLC, $40,000

Susquehanna St., 1526: P. Mohr to C. Butcher, $104,500

Susquehanna St., 1725: Fannie Mae to M. Gojmerac & C. Roma, $48,000

Vernon St., 1308 & 113 S. 13th St.: Stevens Emmanuel United to True Worshippers Ministries, $55,000

 

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September News Digest

 

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. 3rd 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. 2nd 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. 2nd St., 2333: S. Habtemichael to C. Cullis, $124,000

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

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

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

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

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

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

N. 15th 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. 13th 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

 

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Harrisburg Stronger? Lynch’s plan might just succeed.

So, it’s done.

More than 19 months after former receiver David Unkovic filed his financial recovery plan for Harrisburg, his successor, retired Gen. William Lynch, today announced a series of agreements to implement it.

All the loose ends aren’t quite tied up. However, to Lynch’s credit, the “Harrisburg Strong” plan, at first read, sounds impressive in both its completeness and its possibility.

In sum, the plan:

  • sells the incinerator to the Lancaster County Solid Waste Management Authority for net proceeds of $126 million to $132 million.
  • leases the city’s parking facilities for around $260 million.
  • wipes out virtually all the city’s long-term debt, as well as its structural deficit.
  • provides the city with ongoing revenue from the leased parking assets.
  • funds the creation of three not-for-profit entities that would pay for infrastructure improvements, economic development initiatives and retired city worker healthcare.
  • settles most litigation and claims against the city, particularly claims pertaining to the incinerator, with several creditors accepting much less than what they were seeking.

There are some negatives, too. The city’s 2 percent earned income tax would be retained, and the cost of street parking, already expensive, would increase further to $3 per hour.

Earlier today, I wrote a blog post criticizing Lynch for seeking to extend the “one-year” hike in the earned income tax credit by four more years. To me, this remains the greatest negative of the plan. Harrisburg residents have taken, by far, the brunt of the pain, with multiple increases in taxes and fees, which many simply cannot afford. I also buckle at the insincerity of selling the hike as a single-year event when it likely will be permanent.

Nonetheless, this plan appears comprehensive, creative and, at least at this point, workable. In sum, the plan offers Harrisburg a way out — a way out of misery, a way out from beneath a future of little hope. Will it all work out perfectly? Probably not, but it’s likely the best that we could expect. If, following Commonwealth Court approval, implementation goes reasonably well, the plan might just bring about a new era of confidence and investment in the city.

Notably, in his report, Lynch states that he will use “every measure available” to seek redress for possible wrongdoing in the incinerator debacle. He said that he believes that grounds may exist to pursue civil action against certain firms and people named in the Harrisburg Authority’s forensic audit, which examined in detail how the incinerator upgrade went awry — and who benefited from it.

Perhaps Harrisburg, eventually, will recover some money from this effort. Perhaps it won’t. It almost doesn’t matter. The people here will derive tremendous satisfaction just to see the self-dealers finally called to account for their actions, actions that effectively bankrupted this city, bringing it to the edge of calamity.

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