Tag Archives: Community Development Block Grant

Take 2: HBG mayor issues CDBG veto, council to reconsider allocation

July 2, 2018 | by Lizzy Hardison

Habitat for Humanity and TriCounty HDC, which together sponsored a “building blitz” last week on Allison Hill, are proposed recipients of CDBG funds this year. Photo: Diane McNaughton.

For the second time in his administration, Harrisburg Mayor Eric Papenfuse has vetoed City Council’s allocation of federal housing grants.

Papenfuse overturned a bill disbursing $2 million in grants to more than a dozen nonprofit organizations and city programs. The source of the money was the Community and Development Block Grant (CDBG), a program from the federal Department of Housing and Urban Development.

Papenfuse today said his veto was due to council’s decision to award a $15,000 grant to Breaking the Chainz, a mentorship program that works with at-risk youth. Council granted the organization money even though it submitted an incomplete grant application.

Fifteen organizations applied for funding this year, according to Dave Madsen, chairman of council’s Community and Economic Development Committee. Last week, council passed a bill awarding grants ranging from $5,000 to $320,000 to 13 of those applicants, including Breaking the Chainz.

The city’s Department of Community and Economic Development screens and ranks grant applications according to a formal system every year. They did not recommend Breaking the Chainz for any funding. Even though the program met CDBG eligibility guidelines, its incomplete application meant that it ranked below other eligible organizations.

But council voted last week to reduce a proposed grant to TLC Work Based Training from $45,000 to $30,000, freeing up $15,000 for Breaking the Chainz.

Some council members expressed concern about veering from the ranking system, but the amended bill passed 4-3.

Papenfuse said the decision took money away from a deserving applicant and set bad precedent by breaking with the accepted grant-screening procedures.

“Their actions raise questions of fairness and transparency,” he said. “We have gone out of our way to establish an independent and trustworthy scoring process.”

Papenfuse has used his veto power once before, when he overturned CDBG allocations in 2016.

On Monday, Madsen said that both TLC and Breaking the Chainz provided valuable services in helping to keep residents out of the criminal justice system. TLC provides workplace training for formerly incarcerated people entering the workforce, while Breaking the Chainz reaches at-risk youth through mentoring, he said.

“Something we’re currently struggling with in the city is a high population that ends up in the criminal justice system,” Madsen said. “We wanted to do a full-court press in addressing the issue.”

Council is set to vote on a veto override at a legislative session tomorrow, according to a meeting agenda. But Madsen said that council members don’t plan to award any money to Breaking the Chainz anyway.

In the week since council passed its CDBG funding bill, Madsen learned that the organization may have trouble fulfilling administrative requirements tied to the federal funds.

Barring any last-minute amendments from council members, the body will likely revert back to the allocations recommended by the city Department of Community and Economic Development.

According to city Solicitor Neil Grover, council doesn’t have to override the mayor’s veto – it could simply vote to amend the bill it passed last week.

If the override vote does not pass, the entire CDBG bill dies, Grover said. Council members would have to introduce a new bill and publicly advertise it before voting to allocate funds.

Council adjourns for summer recess after its July 3 legislative session. But Madsen said that the break won’t start until council finishes its CDBG business.

“We have to get this done before we go anywhere to meet federal requirements,” he said.

Harrisburg Council disburses federal development funds, approves apartment projects

June 26, 2018 | by Lizzy Hardison

$250,000 of CDBG money will go to Tri-County HDC, an affordable housing developer that has partnered with the city on the MulDer Square revitalization project. The ribbon cutting for the first MulDer Square house was held in February.

Harrisburg City Council approved its annual allocation of federal development grants to local service groups on Tuesday night, but not before making one significant change to a proposal from the city’s administration.

In a rare close vote, council voted 4-3 to direct a $15,000 grant to Breaking the Chainz, a nonprofit that works with at-risk youth and released offenders.

The funds come from the city’s annual Community Development Block Grant (CDBG), a program of the federal Department of Housing and Urban Development.

The city’s Department of Community and Economic Development, which screens and ranks grant applications, did not recommend Breaking the Chainz for any funding this year. Romulus Brown, a project manager in the city’s housing bureau, said that the group submitted an incomplete application.

But economic development committee chair Dave Madsen advocated for Breaking the Chainz to receive funding. He said that council has previously strayed from its application ranking system to provide funds to worthy organizations and argued that Breaking the Chainz provided valuable youth enrichment activities.

Brown confirmed that Breaking the Chainz was an eligible program under CDBG guidelines. Council tried to award the organization CDBG funds last year, but determined it did not meet program requirements.

This time around, council President Wanda Williams and council members Ben Allatt and Ausha Green agreed with Madsen and voted to carry his amendment. Council members Cornelius Johnson, Westburn Majors and Shamaine Daniels voted against it.

“This organization does great work,” Johnson said before casting his vote. “I just believe our process should be transparent… and we should set clear expectations for a competitive grant process.”

In order to give $15,000 to Breaking the Chainz, council reduced a proposed grant to TLC Work Based Training from $45,000 to $30,000. Other grant recipients include:

Christian Recovery Aftercare Ministries (C.R.A.M.): $40,000
A Miracle 4 Sure: $50,000
Latino Hispanic Community Center: $25,000
Fair Housing Council: $25,000
PPL/IN HOUSE: $20,000
Shades of Greatness: $15,000
Heinz-Menaker Senior Center: $25,000
Neighborhood Dispute Settlement: $5,000
TriCounty HDC: $250,000
Habitat for Humanity: $100,000
Housing Rehabilitation Programs (city-run): $321,642

As in past years, almost $600,000 of the city’s $2 million CDBG grant will go to debt service. They city is still repaying federal loans it backed for development projects under former Mayor Steve Reed, including the disastrous Capitol View Commerce Center project, which went bankrupt before being completed years later by a new owner.

In addition, $408,000 will go to CDBG administration.

Council also approved two new downtown apartment projects on Tuesday night. The first, proposed by the Executive House Apartments, will convert commercial space at 101 S. 2nd St. into 15 residential units.

Another project, proposed by Harristown Development CEO Brad Jones, will convert an office building on Pine Street into 45 residential units and retail space. Williams, who has been critical of Harristown’s downtown redevelopment efforts, cast a vote against the project.

Who Was Chosen? Harrisburg proposes recipients for federal housing funds.

May 29, 2018 | by Lawrance Binda

Members of Harrisburg City Council listen as a resident speaks at tonight’s meeting.

The annual process of disbursing federal housing funds began tonight, as Harrisburg City Council introduced an ordinance that would provide money to nearly a dozen nonprofit groups.

Mayor Eric Papenfuse said that the city used the same process in selecting award recipients as last year, using a point-based merit system to judge applications.

“It’s a number of small grants,” Papenfuse said. “It’s not as much as anyone wanted.”

In all, the city will distribute $2.04 million in Community Development Block Grant (CDBG) money, a program of the federal Department of Housing and Urban Development. This amount includes almost $1.9 million from the 2018 allocation, plus a small supplemental amount tied to unallocated funds from a prior year.

Like last year, the greatest single amount of money, $593,423, will go to repay federal loans the city backed during the Reed administration for several development projects, including the disastrous Capitol View Commerce Center project, which went bankrupt before being completed years later by a new owner.

“If we didn’t have an exorbitant debt service, we’d have a lot more money for housing,” Papenfuse said.

Most of the nonprofits proposed to receive funds have gotten some money from previous CDBG allocations. The proposed recipients include:

TriCounty HDC: $250,000
Habitat for Humanity: $100,000
A Miracle 4 Sure: $50,000
TLC Work Based Training: $45,000
Christian Recovery Aftercare Ministries (C.R.A.M.): $40,000
Latino Hispanic Community Center: $25,000
Heinz-Menaker Senior Center: $25,000
Fair Housing Council: $25,000
PPL/IN HOUSE: $20,000
Shades of Greatness: $15,000
Neighborhood Dispute Settlement: $5,000

Like last year, Tina Nixon, an executive with UPMC Pinnacle, scored the applications, Papenfuse said. While most nonprofits that applied received some funding, several did not make the cut, he said.

In addition, the city is proposing to allocate $321,642 for its housing rehabilitation programs and another $408,765 to CDBG administration.

At tonight’s meeting, Les Ford, executive director of Heinz-Menaker, addressed council to emphasize the importance of the Midtown Harrisburg facility.

“The Heinz-Menaker Senior Center is the most active senior center in Dauphin County, bar none,” he said. “We’re just lucky enough to have that in the city of Harrisburg.”

Last year, the administration did not recommend that Heinz-Menaker receive CDBG funds, saying its application did not make the cut. In the end, council reversed that decision and approved $25,000 for the center.

Council is slated to discuss CDBG funding at its next work session, scheduled for June 5. In recent years, it has made some adjustments to the administration’s proposal.

February News Digest

February 28, 2018 | by Lawrance Binda and Lizzy Hardison

CRW Releases Infrastructure, Rate Plan

Capital Region Water last month announced plans to spend more than $315 million over the next 20 years upgrading the city’s antiquated sewer system, which will bring Harrisburg into compliance with federal guidelines and carry a cumulative 150 percent increase to water and sewer rates.

Known collectively as the City Beautiful H2O plan, the improvements come following years of deferred maintenance to Harrisburg’s centuries-old combined sewer system. CRW says the updates will reduce sewer discharge into natural waterways, enhance sewer efficiency, and improve neighborhoods through the implementation of green storm water management systems.

The improvements also will significantly raise the rate burden for city households. The draft plan includes an extensive affordability assessment that helped CRW set rate projections for the duration of the project. The analysis concluded that many CRW ratepayers have significant financial limitations that preclude aggressive rate hikes.

As a result, CRW decided to seek the lengthiest improvement schedule permitted by federal environmental agencies, giving the authority 20 years to complete the projects. Water and sewage rates are set to increase by a cumulative 150 percent over that time period.

The rate increases will be most dramatic in the next decade, with annual 10 percent hikes projected from 2019 to 2022. After reaching a 106-percent cumulative increase in 2027, rate hikes will level off to just 2 percent a year from 2027 to 2038.

CRW set rates so that an average household will not spend more than 2 percent of its annual income on water, but households earning less than the median income could face significant burdens

“It is anticipated that there will still be affordability issues for some customers within the City, with some customers experiencing wastewater and storm water costs as a percentage of income exceeding 3.0 percent,” the report says.

The draft plan is part of CRW’s response to a partial consent decree it negotiated with the U.S. Department of Environmental Protection in late 2014. Earlier that year, the EPA alleged that sewage runoff in Harrisburg violated the federal Clean Water Act and PA Clean Streams Law.

Like many old cities, Harrisburg has a combined sewer system, in which storm drains connect to the same sewer system as toilets and showers.

When it’s not raining, all the contents of the sewer system flow to a treatment plant on Cameron Street, where they are cleaned and then discharged into the Susquehanna River. But heavy rain can cause the system to overflow, sending untreated water into the river and Paxton Creek.

Under state and federal environmental laws, Harrisburg would have faced financial penalties for those runoff incidents. After a year of negotiations, the EPA agreed to spare the city financial penalties as long as CRW agreed to update its long-term plan for the city’s sewer system.

A public meeting on the proposal is slated for March 1, 6 to 8 p.m., at the Camp Curtin YMCA.

Fight Against Dogfighting

Citing concerns over animal welfare and illegal gambling, Harrisburg is asking its residents to help stop a scourge of illegal dogfighting.

City communications Director Joyce Davis announced last month that Harrisburg obtained a $20,000 grant from the Pennsylvania Gaming Control Board to launch a public information campaign about dogfighting. So far, city officials have purchased ads on Facebook that explain the warning signs of dogfighting and ways to report it to law enforcement.

Davis said that the campaign did not arise as a response to a single incident or spate of reports. Rather, it seeks to curb an on-going animal abuse problem that also enables illegal gambling.

“We want to stamp this out,” she said.

The issue of dogfighting came to the fore locally in June 2017, when Harrisburg police officers staged a raid on a dogfighting ring on S. 14^th Street. Since then, the bureau has issued charges on three counts of illegal dogfighting in the past year, as well as one count of possession of dogfighting paraphernalia, according to animal control officer William Sandstrom.

If city residents suspect dogfighting, they can call 311 from within city limits to report it. Reports that result in charges are eligible for a $5,000 reward from the Humane Society of the United States.

Zembo Shrine to Sell

The historic Zembo Mosque and Shrine is set to sell after almost one year on the market.

The 65,000-square-foot property at Division and N. 3rd streets will be sold to Arkansas-based TempleLive LLC, which plans to operate the building as a meeting, gathering and performing arts venue, said city communications Director Joyce Davis.

“The goal is to make it a more culturally active space,” Davis said

TempleLive currently owns two Masonic temples similar to Zembo, one in Cleveland and one in Fort Smith, Ark. The company runs both properties as multi-purpose event spaces, according to the venues’ websites.

Mike Brown, vice president of acquisitions for Beaty Capital Group, TempleLive’s parent company, expects the sale to close at the end of March or beginning of April. He hopes the site will be operational by the fall.

Zembo went on the market in February 2017 with a $950,000 asking price. Davis could not confirm the property’s final sale price, which was reportedly reached at a special meeting on Jan. 11.

The deal includes 396 parking spaces adjacent to the building.

Since its opening, Zembo has been home to the Shriners, a fraternal organization affiliated with the Freemasons. The Shriners continue to meet there, but the group’s declining membership, coupled with the building’s high operating costs, forced them to sell the historic property.

Zembo was constructed in 1930 in a Moorish Revival architectural style. The building features interior arches, hand-painted motifs and ornate stone detailing. It houses large meeting rooms and a theater with a 2,500-seat capacity.

Youth Center Approved

The Harrisburg City Council last month approved the expansion of a teen center in North Allison Hill, which will double the facility in size.

Bethesda Mission plans to renovate an old printing plant on Herr Street adjacent to its current Youth Center, adding a full-size gymnasium, classrooms, office space and an event hall with a full-service kitchen.

The result will be a full-service community center with classes and amenities for all age groups, said Cindy Mallow, director of development at Bethesda Mission. The current youth center only serves children and teens.

“We’re hoping to involve families and expand out into the community even more,” Mallow said.

Bethesda Mission hopes to break ground on the $2.8 million project this summer and finish it by the end of 2018, Mallow said.

Bethesda Mission has operated its teen center from a former fire station at 1428 Herr St. since 1990. It purchased the former Kurzenkabe Press facility at 1424 Herr for $275,000 in 2015, according to Dauphin County property records.

The 10,000-square-foot space needs extensive renovations, Mallow said, including an overhaul of its HVAC, plumbing and electrical systems. Contractors will also raise the ceilings to accommodate the gymnasium and construct a connection between the print facility and the youth center.

Since Bethesda Mission announced its plan to renovate the printing facility back in 2015, it has raised more than $1.5 million from the community and private foundations, including $600,000 from the York-based Stabler Foundation.

The expansion will also allow the mission to double or triple the enrollment in its after-school program and summer programs for youth, Mallow said.

“There’s just a need for a place for the kids to go,” she said. “Our center gives them the opportunity to be with other kids and have a mentor.”

Grant Input Sought

Is there a nonprofit that’s doing good in your neighborhood?

That’s one of the questions that city administrators will pose at a public meeting this month, as Harrisburg begins to chart its priorities for Community Development Block Grant (CDBG) money over the next five years.

CDBG funds are allocated annually to organizations that help build community and stabilize neighborhoods in low- and moderate-income areas. The city received $1.9 million last year and expects the same this year, according to city communications Director Joyce Davis.

The federal Department of Housing and Urban Development (HUD), which disburses CDBG money, requires each municipality receiving grants to have a “consolidated plan” describing its development priorities and goals.

Harrisburg’s current three-year plan is set to expire in September. Roy Christ, Harrisburg’s director of Building and Housing, said that development projects started during Mayor Eric Papenfuse’s first term require a new plan with a longer duration.

In past years, CDBG funds have supported organizations such as the Heinz-Menaker Senior Center, Habitat for Humanity of Greater Harrisburg, the Latino Hispanic American Community Center and MidPenn Legal Services.

City departments can also apply for grants. Last year, the Harrisburg Police Bureau received $90,000, which paid for a community policing van and helped launch the police cadet program.

For this planning cycle, Christ said Harrisburg hopes to target projects in “tipping point” neighborhoods.

“These are neighborhoods that need a bit of help to bounce back and become self-sustaining,” he said.

City residents can contribute input at the public meeting or through an online survey. The meeting will be held on March 5 at Jackson-Lick Tower at 5:30 p.m.

Strawberry Square Apartments

Harrisburg City Council last month gave the green light to another set of apartments inside Strawberry Square.

Council unanimously approved a land development plan submitted by Brad Jones, CEO of Harristown Enterprises, which will convert vacant office space in Strawberry Square into 13 apartment units. The project will add to the 24 apartments already inside Strawberry Square, the result of a 2016 office-to-residential conversion by Harristown.

It’s also the third project that Jones has put before council just this year, as, in January, council approved two other downtown projects proposed by Harristown: a new office building on S. 2nd Street just off Market Square and a small office-to-residential conversion at 221 N. 2nd St.

Approval came despite recent statements from some council members that they are concerned about affordable housing in the downtown district.

Earlier in the month, Jones defended his pricing structure, telling council that 15 percent of Harristown’s apartment units could be rented by someone with an annual income of just $25,000 to $40,000 a year, while another 40 percent could be afforded by someone with an average income of $60,000 a year.

Council has not proposed any plans to regulate rents in Harrisburg. In January, however, council President Wanda Williams said that she would continue to monitor housing development and advocate for affordable options.

Comp Plan Chugs Forward

The Harrisburg Planning Commission last month made plans to advance the city’s comprehensive plan towards completion, a process that could last into the summer.

City officials and business developers excoriated the plan at a meeting in January, saying it limited the discretion of private property owners. Mayor Eric Papenfuse called the document “unsalvageable” and urged the commission to reject it in favor of a plan proposed by the city.

Last month, though, commissioners hardly mentioned the planning document submitted by the city, except to ask if and when it had been published online.

“We’re moving ahead with our product,” said commissioner Vern McKissick, referring to the document that the commission developed with local architect Bret Peters and his assistants at the Harrisburg-based Office for Planning and Architecture.

The commission will host monthly workshop meetings for the next three months to incorporate public feedback and professional advice into the draft document, which is published online at BeHBG.org. They hope to reengage some of the consultants that Peters hired while drafting the plan in 2015 and 2016.

To do that, however, they’ll need to secure additional funding. They already have $10,000 allotted by City Council in the 2018 city budget, but McKissick said they will likely need more to consult with subcontractors and see the plan to completion. Commissioners will evaluate grants and other funding opportunities at a workshop later this month.

Spradley Chosen for School Board

The Harrisburg school board last month selected Tyrell Spradley, a tax consultant and former city treasurer, to serve an appointed term until 2019.

Spradley replaced Matt Krupp, a board director who resigned in January to serve as Dauphin County prothonotary.

After two rounds of voting, the board picked Spradley over three other candidates: newcomer Mariah Rodriguez and board veterans James Thompson and Kia Hansard.

In his interview before the board, Spradley touted his financial background and his two years of experience working in the district’s accounting department. He said he thinks many of the issues facing the district can be resolved, given the improved fiscal health he has seen since he worked as a district accountant.

“A lot of the issues I see are administrative issues, communication,” Spradley said. “Money isn’t a problem like it was before. We’re stronger now and have a stronger administration.”

Spradley joins the board as it braces for a number of contentious discussions, including the annual budget process and the expiration of Superintendent Sybil Knight-Burney’s contract this June. The board must decide soon whether it will renew Knight-Burney’s contract or open an application process in which she may participate.

So Noted

AAA Central Penn last month named Jodie Daubert as its new president and CEO. In this position, Daubert will lead the nine-county club composed of 290 employees serving 11 offices. She succeeds David Meckley, who served as interim CEO.

Brandalynn Armstrong, co-owner of Harrisburg-based Zeroday Brewing Co., has been elected to the Brewers of Pennsylvania board of directors. The trade association works to protect and promote the brewing industry in the state.

Excel Interior Concepts & Construction last month announced two new hires. Thomas Fogie joined the Lemoyne-based company as project coordinator, and Alicia Mirando came on as designer.

The Harrisburg Senators last month signed a two-year extension with the Washington Nationals, their player development agreement now extending through 2020. The Senators are the Nationals’ AA-affiliate Minor League baseball team. Separately, the Senators announced that Dan and Michael Schwab, co-presidents of Harrisburg-based D&H Distributing, along with their sister, Amy Silfen, have joined the team’s ownership group as minority owners.

S&T Bank has named Jeffrey Scoutelas as vice president, private banker for central Pennsylvania region. Scoutelas, a graduate of Lynchburg College, has 12 years of private banking and management experience in the area, said the company.

Changing Hands

Berryhill St., 2155: L. & D. Sandoe to M. Macas & C. Pulla, $55,500

Boas St., 1826: Z. Weist to S. Henry, $59,900

Brookwood St., 2448: Wilmington Savings Fund Society to HT Properties LLC, $35,500

Capital St., 907: A. Sheaf to E. Ashenfelder, $148,000

Capital St., 1200: 8219 Ventures to R. & C. Steele, $76,000

Croyden Rd., 2951: K. & M. Zinn to A. Smith, $70,000

Derry St., 1433: A. Vaughn to Aum Investments LP, $32,000

Derry St., 1901: L. Nguyen to T. Nguyen, $150,000

Derry St., 2022: M. Khatoon to A. Saeed, $30,000

Emerald St., 226: C. Shokes to HBG Rents LLC, $210,000

Forster St., 1815: Blackscotch LLC to C. Burke, $50,000

Green St., 914: P. Vanitem to C. Williams, $138,900

Green St., 1401½: C. & C. Kellar to R. & F. Armetta, $80,000

Green St., 1623: S. Vemula & M. Chada to B. Golper & J. Wu, $132,000

Green St., 3118: US Bank NA Trustee & PA Housing Finance Agency to Hawk Vesta LLC, $65,750

Hale Ave., 436: M. Davis to J. Sayed & S. Sherin, $40,000

Hanna St., 103: S. Brown to DLK Properties LLC, $63,500

Harris St., 434: Alta Reo LLC to B. Parfitt, $83,000

Herr St., 1001: Harsco Corp. to Capital Region Economic Development Corp., $505,000

Hanover St., 1312 and 1283 & 1285 S. 13^th St.: Y. & C. Lee to D&F Realty Holdings LP, $50,000

Hoffman St., 3131: G. Hanslovan to O. Perry, $63,000

James St., 1315: J. Brinks & C. Wise to S., J. & N. Kindler, $95,000

Kensington St., 2101: Nationstar Mortgage LLC to HT Properties LLC, $48,500

Kensington St., 2103: PA Deals LLC to L. Myers, $65,900

Lawton St., 1416: M. Maloney to J. Foote & R. Tompkins, $429,500

Luce St., 2365: T. Nguyen & H. Truong to M. Phan, $30,000

Maclay St., 332: S. Hite & L. Ware Jr. to JTA Consulting Group LLC, $51,000

North St., 1836 & 1838: Reyart Properties to B. & R. Lomax, $72,000

N. 2^nd St., 1404: Tang Liu Realty LLC to C. Albers, $121,000

N. 2^nd St., 2323: M. Horgan & CR Services Inc. to A. & A. Mathew, $147,500

N. 2^nd St., 3118: P. & M. Rowan to D. Inghilterra, $203,000

N. 2^nd St., 3303: C. Myers to J. Myers, $90,000

N. 4^th St., 2735: S. Patrick to T. & L. Lydell, $107,900

N. 6^th St., 3111: R. & S. Hopkins to C. Morel, $62,000

N. 13^th St., 142: J. Forsyth LLC to 37 Estate LLC, $41,000

N. Front St., 1125: D. & J. McEnany to RMK Management Group LLC, $233,000

N. Front St., 1525, Unit 301: W. Cohen to W. Krenz & P. Meehan, $135,000

N. Front St., 3029: Pumphouse Partners LP to BXF Real Estate LLC, $450,000

Penn St., 1324: D. Stridacchio to S. Olsen, $117,000

Penn St., 1715: BencMarq Holdings LLC to Fratelli Property Investments LLC, $116,000

Race St., 568: R. Hunter to E. Fultz, $157,968

Rolleston St., 1239: G. Neff to J. McCloud, $45,000

Seneca St., 330: J. Runion to M. Saldana & R. Zavala, $87,500

S. 14^th St., 1418: R. Scott to City of Harrisburg, $52,000

S. 14^th St., 1422: G. Neff to City of Harrisburg, $48,500

S. 14^th St., 1424: C. Gamble to City of Harrisburg, $45,000

S. 14^th St., 1433: Z. Owens to City of Harrisburg, $51,000

S. 14^th St., 1440: G. Neff to City of Harrisburg, $51,000

S. 19^th St., 850: S. & N. Fulginiti to City of Harrisburg, $60,000

S. 23^rd St., 616: R. Bowers to D. & N. Gonzalez, $89,900

S. Front St., 601: A. Poindexter to R. & L. Firestone, $174,900

State St., 1504: A. Sandoval to 77 Estate LLC, $37,000

Susquehanna St., 1612: K. O’Neill & PA Housing Finance Agency to T. Weaver, $146,500

Susquehanna St., 1723: G. Neff to J. Hirt, $104,000

Valley Rd., 2308: L. & N. Eikenberry to Bean GST Trust II, $218,000

Washington St., 103: R. Bray to Q. Tran, $32,000

July News Digest

July 31, 2017 | by Lawrance Binda

Housing Funds Disbursed
Harrisburg City Council doled out some $1.9 million in federal housing funds last month, but not before making tweaks to the administration’s proposal.

Council provided $25,000 to the Heinz-Menaker Senior Center from the city’s portion of annual Community Development Block Grant (CDBG) funds, a program of the federal Department of Housing and Urban Development.

The city administration had denied funding for the center, saying its application scored too low to merit a grant.

To make room for the Heinz-Menaker grant, $15,000 was taken from a proposed allocation for the city’s Police Bureau, which still will receive $90,000 to help pay for a new community policing van and a police cadet program.

Another $10,000 was taken from the city’s Department of Community and Economic Development, which still will receive about $43,000 to cover unreimbursed costs related to the sinkhole project on S. 14th Street.

Like last year, the greatest single amount of money, $562,248, went to repay federal loans the city backed during the Reed administration for several development projects, including the disastrous Capitol View Commerce Center project.

Other CDBG recipients included:

City Housing Rehabilitation Programs: $330,000
Tri-County HDC: $150,000
City Emergency Demolition: $120,000
Harrisburg Fire Bureau: $51,686
Habitat for Humanity Greater Harrisburg Area: $30,000
Rebuilding Together: $15,000
Christian Aftercare Recovery Ministries: $25,000
A Miracle 4 Sure: $25,000
Latino Hispanic American Community Center: $25,000
Fair Housing Council: $25,000
Mid Penn Legal Services: $15,000
Neighborhood Dispute Settlement: $3,900

While the city undertook the annual process of distributing CDBG money, funding is not assured as the Trump administration has threatened to end the program.

Riot Gear Debated

Harrisburg City Council last month left for summer break without voting on a plan that would supply the city’s police with new protective gear.

Council members said they would take up the matter once more after they returned from hiatus in late August and, in the interim, urged police to engage with residents to discuss the issue.

The Police Bureau is seeking to transfer $65,000 from unspent personnel funds to purchase 30 “top to toe” protective suits. The bureau’s current gear is old and inadequate, police say.

Some city residents have urged council not to approve the transfer, saying that so-called “riot suits” would escalate tense situations. Police, though, say that protests, particularly at the state Capitol, have become more frequent and more violent, and that officers need the equipment for personal protection.

College Plans Move to City Hall

Eastern University announced last month that it would like to move its satellite campus into the basement of Harrisburg city hall.

“I want to be in the city,” said Wesley Bunting, an official with the St. Davids, Pa.-based Christian college, whose satellite campus currently is located in Lower Paxton Township.

Therefore, the university approached the city with a novel offer. It would spend about $615,000 to fully renovate the mostly empty, worn-out basement of the MLK Jr. City Government Center on N. 2nd Street.

The city would be able to use a portion of the space for a new, state-of-the-art emergency operations center. It also would get access to classroom space when not in use and to the lounge, which could be used as a break room. The city would receive the improvements but no monetary rent during the 10-year lease term.

If approved by council, the project could start immediately and would take less than a year to complete, Bunting said.

“This is a substantial investment in the building with resources that we otherwise would have to draw from somewhere else,” Mayor Eric Papenfuse said.

Papenfuse said the project also would bring more people downtown, would boost building security, especially after hours, would offer technology upgrades in the building and would help create a “critical mass” of colleges downtown, adding to the existing presence of Harrisburg University, Temple University and Messiah College.

HDID Seeks Renewal

The Harrisburg Downtown Improvement District last month asked City Council for a five-year reauthorization, a plan that would expand the district to State Street.

Executive Director Todd Vander Woude outlined a few recent activities by the group, including last year’s “Dino-Mite Summer” public art project, this year’s “Discover the Ducks Downtown,” the St. Patrick’s Day parade, several new murals, more bike racks, brightly painted planters and a new safety substation.

“Our focus is making downtown clean, safe and beautiful,” said Vander Woude, who received a generally positive reaction from council.

In 2015, council refused to grant a full, five-year term, offering only two years with instructions to become more visible and active. Back then, some council members said that HDID wasn’t doing enough to attract people downtown.

Getting firm council support is particularly important this year, as the HDID is seeking to expand its northern boundary from Pine Street to State Street, bringing 58 more properties into the district and upping the organization’s annual budget by $40,000 to $820,000. Each commercial property is assessed a 1.75 mil surcharge on its city property taxes to cover the cost of HDID services, which also include cleaning, safety and beautification measures.

Property owners within the proposed district have 45 days from last month’s council hearing to vote against the district. Forty percent of properties within the boundary must vote against it for reauthorization to be defeated.

City Payment Restored

Harrisburg will receive its full state funding after all, as the legislature passed a budget re-inserting a $5 million payment to the city.

The $32 billion state budget for 2017-18 includes full funding of the “Capitol fire protection” line item, a type of payment in lieu of taxes that the city counts on to help fund emergency services.

Gov. Tom Wolf included the payment in his proposed budget in February, but it was later stripped out by the state Senate.

Over the decades, this annual payment has ranged widely from nothing to the current $5 million, an amount decided upon while the city was under state receivership. However, the money is not guaranteed, meaning that Harrisburg isn’t certain it will receive the funds until the always-fraught state budget is passed.

The money lands in the city’s general fund, but Harrisburg officials say it offers compensation for services that the city provides to about 30,000 state workers. The state pays no property taxes on its massive holdings in the city, which include some 50 state-owned buildings on about 42 percent of the city’s land.

New Grocery Store

If you’ve been hungering for an urban-style grocery store in Harrisburg, your wait is almost over.

In a few months, Provisions will open in Strawberry Square, emphasizing natural, organic and locally produced goods, mostly sold in bulk.

Provisions will occupy 2,350 square feet of space next to Fresa Bistro with a storefront entrance on N. 3rd Street, said Brad Jones, CEO of Harristown Enterprises, which owns Strawberry Square.

“You’re going to be able to get fresh food that you can shop daily for,” said Jones, who described the market as a “locally grown Trader Joe’s.”

Jones expects the build-out of the space to begin immediately, with the store opening in mid-October.

Provisions is the brainchild of Shaun Donovan, the owner of the online grocery store Appalachian Organics, and Adam Porter, co-owner of the co-working space, StartUp Harrisburg.

Steelton Redevelopment

A new development called Renaissance Row soon will begin to rise in downtown Steelton, in part thanks to a tax incentive program.

Dauphin County and Steelton officials last month credited property tax abatement for enabling the project, which will feature 80,000 square feet of commercial space and 46 one-and two-bedroom apartments across the street from Steelton Borough Hall.

“Providing property tax relief for new construction and renovation can make the difference between making it viable to move forward on a project,’’ said county board Chairman Jeff Haste.

Philadelphia-based developer Chariot Companies will build Renaissance Row. A second development featuring 12 new townhouses on Adams Street should break ground later this year.

All of Steelton is part of a Local Economic Revitalization Tax Assistance (LERTA) program, which provides tax breaks on property improvements for 10 years.

Home Sales Climb

The Harrisburg area scored another solid month for home sales, as purchases increased 4.2 percent year over year.

The Greater Harrisburg Association of Realtors reported 1,147 sales in June compared to 1,101 sales in June 2016 for its coverage area, which covers all of Dauphin, Cumberland and Perry counties and parts of York, Lebanon and Juniata counties.

The median price also rose, increasing to $183,000 versus $175,000 in the year-ago period, GHAR said.

In Dauphin County, 389 homes sold, an increase of 23 units, with the median price rising to $163,500 from $160,000. In Cumberland County, sales totaled 398 units versus 388, with the median price jumping to $210,000 from $190,900.

Perry County had 51 home sales against 33, with the median price rising to $143,000 from $129,900 a year earlier.

So Noted

Fine Wine and Good Spirits will open an 11,500-square-foot retail store at the Capital City Mall this fall, according to mall owner PREIT. Next year, a Dave & Busters also will open, offering a casual dining and entertainment option.

Harrisburg University is relocating its Philadelphia campus, which will more than quadruple its space. The new site at 1500 Spring Garden St. in Center City will allow the university to offer full, four-year bachelor degrees at the campus without students needing to transfer to the main campus in Harrisburg.

Merit is the new name of the Harrisburg-based marketing and innovation firm, Sacunas. The company, founded by Nancy Sacunas, said it changed its name to better reflect its mission under now-owner Adam Vasquez.

Mom’s Tamales & Papusas is expected to open this month at 263 Reily St., across from Midtown Cinema. Owner Josue Osorto, a veteran of many Harrisburg restaurants, will run the eatery specializing in food from El Salvador.

PinnacleHealth has completed the acquisition of four hospitals in three surrounding counties. The Harrisburg-based company bought Carlisle Regional Medical Center, Heart of Lancaster Regional Medical Center, Lancaster Regional Medical Center and Memorial Hospital of York.

Rite Aid and Walgreens have dropped their plans to merge. Instead, Walgreens will buy 2,186 Rite Aid stores for $5.2 billion, leaving East Pennsboro Township-based Rite Aid with 2,350 stores after the deal is complete.

In Memoriam

Robert Marquette, long-time president and CEO of Members 1st Federal Credit Union, died last month, said the Mechanicsburg-based company. Marquette, 68, also was the face of the Members 1st, donning a superhero-type outfit and making homespun pitches during numerous advertisements.

Benjamin Olewine III, lifelong Harrisburg resident, businessman and philanthropist, has died at the age of 95. Olewine grew his family’s food business into one of the top food distributors in the country, selling it in 1988 to giant Sysco Corp., where he continued to work until a few years ago.

Changing Hands

Allison Ct., 7: B. Schaeffer to Flipside Home Renewal LLC, $32,000

Barkley Lane, 2503: F. Scott to L. Holloway, $62,500

Bellevue Rd., 2026: M&N Associates LLC to N. & S. Diehl, $70,000

Berryhill St., 1621: G. Campos to B. Brown, $30,000

Capitol St., 901: G. Ulrich to C. Lenz Jr., $117,900

Capitol St., 1003, 414 Forster St. and 919 & 923 N. 2nd St.: PLM Real Estate Investments & M. Stuski to AON LLC, $265,000

Chestnut St., 1822: G. Neff to A. Brown, $43,900

Derry St., 1408: M. Neidigh to J. & D. Judge, $30,000

Derry St., 2334: R. Miller & D. Shellenhamer to N. Hanna, $35,000

Derry St., 2400: J. Seibert to 2400 Derry Street LLC, $65,000

Edgewood Rd., 2315: R. Everngam Jr. & D. Bottini to I. & A. MacFarlane, $204,900

Fulton St., 1418: Ocwen Loan Servicing LLC to PA Deals LLC, $61,960

Fulton St., 1733: J. & R. Gregoire to M. Shelleman, $121,000

Grand St., 919: L. Bolan to A. Chen, $114,900

Green St., 1809: M. & R. Monticchio to D. Caley, $140,000

Harris St., 342: Keystone Properties Group LLC to D. Shelley, $89,000

Herr St., 211: M. Rudderow to G. Broome, $119,900

Herr St., 259: B. Eppley to J., J., & P. Millner, $150,000

Holly St., 1946: M. Naranjo to A. Mercado, $105,500

Hudson St., 1106: J. Raab to K. Fernandez, $60,000

Hudson St., 1215: A. Powers to PI Capital LLC, $33,500

Kelker St., 231: A. DeHoff to D. Rubenstein, $174,900

Lewis St., 303: E. Gadsen to E. Torres, $124,000

Market St., 810, 812 & 900; 24 & 26 N. 10thSt.; and 12, 21 & 23 N. 9th St.: Patriot News Co. to 812 Market Street LLC & Twenty Lake Holdings, $644,286

Market St., 1848: Kusic Financial Services to E. Lewis, $37,100

Muench St., 212: K. & K. Warner to C. Kim, $169,900

Mulberry St., 1162: Stoute Housing Inc. to Evidence Group LLC, $73,000

N. 2nd St., 1225: M. & L. Day to S. Shaffer, $125,000

N. 2nd St., 2011: M. Patterson to S. Gallagher & C. Prestia, $139,000

N. 2nd St., 2915: K. & K. Russell to L. Whitcomb & M. Quinn, $315,000

N. 2nd St., 3004: S. Jusufovic to L. Bolan, $219,000

N. 3rd St., 1722: M. Kravanis Jr. & N. Melton to A. Glickman, $112,000

N. 3rd St., 1728: Leonard J. Dobson Family Limited Partnership to Keystone Brothers Investments, $106,000

N. 3rd St., 1730: Secretary of Housing & Urban Development and Information Systems & Networks Corp. to S. Bernhard, $72,000

N. 3rd St., 1928: Secretary of Housing & Urban Development to J. Hobbs, $70,000

N. 6th St., 3107: E. Willis to S. & K. Wright, $99,500

N. 6th St., 3136: M. Naranjo to L. Seay, $55,000

N. 12th St., 47: Hobbeze Inc. to E&K Homes LLC, $35,000

N. 16th St., 521: D. Taylor to Wells Fargo Bank NA, $38,262

N. Front St., 1525, Unit 413: H. Michels to J. Becker, $93,900

N. Front St., 2201, 2225 & 2229; and 2200, 2214, 2216 & 2218 N. 2nd St.: 2201 Partners LP to 2201 NFS LLC, $1,800,000

Penn St., 1805: L. Urban to T. & K. Hand, $93,000

Penn St., 1933: WCI Partners LP to D. Ranson, $139,900

Rudy Rd., 2145: M. & K. DeRosa to G. Broadnax, $178,000

Rudy Rd., 2409: N. Ishman to W. & A. Krahn, $149,900

Rumson Dr., 2843: N. & I. Nanov to C. Rojas, $35,000

S. 13th St., 340: JKC Properties LLC to Round Rock Investments LLC,, $101,000

S. 17th St., 927: M. Maniari & Z. Erroudi to A. Mejia, $89,900

S. 18th St., 1128: J. Buzby to T. Ro & J. Musa, $95,000

Verbeke St., 116: H. Reynolds to M. Zecharya & B. Macavoy, $30,000

Verbeke St., 215: J. & S. Bircher to J. & & E. High, $215,000

Verbeke St., 235: S. Will to A. & C. Maset, $146,000

Author: Lawrance Binda

Council Update: Housing funds approved; meeting urged between police, residents.

July 6, 2017 | by Lawrance Binda

Harrisburg City Council tonight approved numerous resolutions tonight before going on summer hiatus.

Harrisburg City Council doled out some $1.9 million in federal housing funds tonight, but not before making tweaks to the administration’s proposals.

“It is the only senior center in the city of Harrisburg,” council President Wanda Williams said after the meeting. “The services they provide are outstanding.”

The city administration had denied funding for the center, saying its application scored too low to merit a grant.

Williams said she agreed to fund the center on the condition that the money pay for critical infrastructure needs, not the salary of center Director Les Ford. In turn, Ford said he’d use the money to refurbish bathrooms and replace faulty fire doors, in addition to several smaller projects.

City Council wanted to fund a small nonprofit called Breaking the Chains, which works with at-risk youth in Harrisburg. However, before the meeting began, council members determined that the organization’s application did not meet the requirements of the CDBG program.

Other CDBG recipients included:

City Housing Rehabilitation Programs: $330,000
Tri-County HDC: $150,000
City Emergency Demolition: $120,000
Harrisburg Fire Bureau: $51,686
Habitat for Humanity Greater Harrisburg Area: $30,000
Rebuilding Together: $15,000
Christian Aftercare Recovery Ministries: $25,000
A Miracle 4 Sure: $25,000
Latino Hispanic American Community Center: $25,000
Fair Housing Council: $25,000
Mid Penn Legal Services: $15,000
Neighborhood Dispute Settlement: $3,900

While the city undertook the annual process of distributing CDBG money, funding is not assured as the Trump administration has threatened to end the program.

Also at tonight’s meeting, City Council:

Approved a series of resolutions for the installation and monitoring of video security systems at Reservoir Park and at the playground at N. 4^th and Emerald streets.
Passed a resolution allowing the city to enter into a professional services agreement for engineering and environmental services with Lower Allen Township-based Barton & Loguidice for the city’s proposed new composting facility in Susquehanna Township. The resolution will allow the city to complete an application required by the state Department of Environmental Protection.
Approved a resolution for a professional services agreement with Hampden Township-based Dawood Engineering for engineering services for MulDer Square, a major revitalization project on Allison Hill.

Originally, council had planned to vote tonight on whether to transfer $65,000 to permit police to purchase new protective, or riot, gear. That vote has been delayed until after council members return from summer break on Aug. 29.

In the interim, Councilman Ben Allatt asked the administration to schedule two meetings between community members, especially those who oppose the purchase of the gear, and police to discuss differences between them and to help heal divisions.

“I’m very concerned about a growing disconnect I see between law enforcement and the community,” Allatt said.

Author: Lawrance Binda

Circling Back: After a lifetime of career challenges, Gloria Vazquez Merrick has returned to serve the community where she was raised.

August 31, 2016 | by Susan Ryder

A common assumption holds that successful people set specific goals, create plans, and carefully orchestrate their success. For some, this might be true, but, for others, success happens after life places them along a winding path.

Gloria Vázquez Merrick, executive director of the Latino Hispanic American Community Center, was born in a little alley in Harrisburg—Honey Street. Her father immigrated to the United States in 1951 from Puerto Rico after being recruited by a prominent construction company.

“It was common to come [to the United States] to make money and then send for your family,” she said.

The family moved to Market Street, the first Latino family on the street. This would be one of her many firsts.

She worked odd jobs as a Bishop McDevitt High School student—at Rudy’s Market and the St. Francis Roman Catholic Church’s rectory. In her senior year, she received an opportunity that would direct her whole life. The Governor’s Office of Administration sought high school graduates who were not headed directly to college. Vázquez Merrick took a clerical position, which eventually led her to work for the Pennsylvania Commission for Women.

“It empowered me to learn and to obtain a lot of self-help for myself, which actually pivoted me towards my future direction, building my confidence, my positive self- image,” she said.

This growing confidence allowed her to accept an opportunity at the Pennsylvania Department of Transportation. In her 13 years at PennDOT, she developed an English class for the clerical pool, formed the first foreman academy and created the department’s first new employee orientation program.

Later, she returned to the governor’s office as director of management development. While there, she was invited to participate in the Leadership Development Institute for Women in State Government, a program where she became the director.

“I was never one to be always looking and looking,” she said. “People would find me and call me, and I never said no. I was always up for a new challenge.”

In 2006, after facilitating the Latina Health Summit, she was approached by the Department of Health to work with then-Deputy Secretary of Health Robert Torres.

Vázquez Merrick cites her willingness to take chances as key to her accomplishments.

“You don’t know how many times I went into territory I had never known anything about,” she said.

She had confidence in her ability to perform “because I knew that I had those embedded, transferrable skills that could take me from an executive leadership development arena to now a health arena.”

She left work at the commonwealth in 2007.

“I thought I could just relax and have a nice time and breathe and enjoy life and break out all my cookbooks,” she said. “I wanted to do some traveling and spend some time with my daughter.”

Reciprocity, Growth

As with most of Vázquez Merrick’s transitions, another opportunity soon found her.

She was offered a position on the board of the new Latino Hispanic American Community Center (LHACC). When the executive director took leave in 2011, she assumed the post.

“I thought—I’ve done a full circle back to where I was born, in my community where I grew up,” she said. “And now I’ll take everything that I’ve learned, everything that I did and all those skills, and bring them to fruition by way of working for the Latino Hispanic American community.”

Program development experience proved integral to her work at LHACC. Youth participate in the newly formed Leadership Institute Star Training Opportunity, while senior citizens have the Sharing Wisdom Program. These programs involve reciprocity. Seniors benefit from the program when youth show them proper use of their cell phone and other technology; youth benefit from the years of wisdom shared by the seniors.

Work at LHACC includes creating a bridge between cultures, embracing diversity.

“The richness of those cultures is very important because you grow as a person, you grow intellectually,” she said. “You grow spiritually by experiencing other cultures.”

Vázquez Merrick also noted that the center offers an opportunity for Hispanics to connect and be informed about their own culture. Not all Hispanic cultures are alike, and she said that Hispanic American Heritage Month offers an opportunity for Latinos to “learn about the diversity in the diversity.”

Running an organization like LHACC is not without its difficulties. Recently, the city denied the center Community Development Block Grant funds, which has made up one-fifth of its budget.

“We are now struggling with how we are going to meet the huge void that we are going to begin to feel come October,” she said.

Vázquez Merrick speaks of her achievements nonchalantly, but she said that, each time she took on a new position, she thought, “What am I doing? I can’t do this.”

She credits her many mentors—whom she describes as the voices in the back of her head—with encouraging and empowering her. So, now she shares this advice to others: “Don’t be afraid to go into the area of the unknown because that’s how you grow.”

The Latino Hispanic American Community Center (LHACC) is located at 1301 Derry St., Harrisburg. For more information, visit www.lhacc.org.

LHACC’s Hispanic Heritage Kick Off Festival takes place Sept. 10, 10 a.m. to 3 p.m., on Derry Street between 13^th & 14^th streets in Harrisburg.

Author: Susan Ryder

Housing Bill Unchanged as Council Turns Back Mayoral Veto

July 21, 2016 | by Lawrance Binda

Harrisburg City Council

Harrisburg City Council tonight overrode a mayoral veto, thereby permitting seven nonprofit groups to receive federal housing funds.

Council voted unanimously to override Mayor Eric Papenfuse’s first-ever veto, returning from summer recess to cast their votes.

Last week, Papenfuse vetoed the annual bill that distributes federal Community Development Block Grant (CDBG) funds, saying that council selected nonprofit groups to receive funding without sufficient public input.

“There was no public comment on any of these specific changes, many of which drastically altered the funding amounts requested by the sub-recipients,” he said.

However, council President Wanda Williams tonight disputed Papenfuse’s version of events.

“In 11 years that I have been in this position, it has been the practice and responsibility for council to discuss and enact any changes they feel are in the best interests of the residents regarding CDBG funding,” she said, in a prepared statement. “All discussions were held in public settings, which involved public comments.”

PennLive’s Christine Vendel has reported that, despite two public meetings on CDBG funding, council members reached consensus on final recipients and allocations “through email and private conversations.”

Originally, Papenfuse proposed that the city retain all $1.9 million in CDBG funds for its own needs. However, council unanimously decided to carve out $295,000 and distribute it to a handful of service organizations.

In the end, the following groups received funds:

Habitat for Humanity of the Greater Harrisburg Area, $80,000
Heinz-Menaker Senior Center, $40,000
African American Chamber of Commerce, $30,000
East Shore YMCA, $30,000
MidPenn Legal Services, $30,000
Fair Housing Council, $25,000
Christian Recovery Aftercare Ministries, $25,000

MidPenn Legal Services was the only group that received all the money it requested, while others received considerably less. Council also awarded $35,000 to the Ferguson Group, which helps nonprofits with grant writing.

In vetoing the bill, Papenfuse specifically cited the Ferguson Group, saying that it was not eligible to receive CDBG funds. Following tonight’s meeting, he reiterated this position.

“We still won’t be able to fund the Ferguson Group,” he said. “They’re not an eligible sub-recipient.”

Before the override vote, several residents spoke to defend their requests for CDBG money. Members of the Latino Hispanic American Community Center, for instance, went to the microphone to urge council members to reconsider their request. Though the group has been funded in past years, it was denied funding this year.

Melvin Johnson, chairman of the Fair Housing Council of the Capital Region, appealed for additional money, saying that this year’s grant represented just 6 percent of his budget. Meanwhile, the demands on his organization continue to grow, he said, including finding new homes for residents displaced by the recent condemnation of the McFarland apartment building following the collapse of a retaining wall near the Mulberry Street Bridge.

Afterwards, Williams apologized to the room, stating that debt obligations prevented council from being able to fund more groups and at higher levels. In the end, council passed the veto override without proposing any changes to the bill.

The city needed to reserve the single-largest amount of CDBG money—$641,113—to repay a federal loan it backed for the once-bankrupt Capitol View Commerce Center, as well as for other federal community development loans dating back about 15 years.

The Papenfuse administration has sent a letter to Julian Castro, secretary of the U.S. Department of Housing and Urban Development, asking for relief from the remaining balance of the Capitol View Commerce Center loan, as the developer, David Dodd, defaulted on the loan and was later convicted on federal fraud charges. No response has yet been announced.

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