Tag Archives: Dauphin County commissioners

June News Digest

June 30, 2016 | by Lawrance Binda

Miller Named Treasurer

Long-time Harrisburg official Dan Miller is the city’s new treasurer, following a close vote last month by City Council.

Miller bested a field of four nominees to replace Tyrell Spradley, who left after 18 months in office and just months after being sworn in for a full term. Miller will serve until the next municipal election in 2017.

Council selected Miller by a 4 to 3 margin in a second round of voting, following interviews with all four nominees. Besides Miller, the finalists included former city Councilman Brad Koplinski and local attorneys Karen Balaban and Peter Marks.

Miller, an accountant by trade, told council that he wished to serve because he is well qualified for the job and hopes to improve the operations of the department. He plans to set up a separate website for the treasurer’s office and said he is not interested in running for higher office.

Miller has a long history of public service in Harrisburg, previously serving as a city councilman and city controller. Three years ago, he ran unsuccessfully for mayor in a contentious race against now-Mayor Eric Papenfuse.

School Budget Passed

The school portion of Harrisburg’s property tax will drop slightly this year under a $143 million budget passed last month by the district’s school board.

The board cut the tax rate from about 27.9156 mills to 27.8 mills, meaning that an owner with property valued at $100,000 would see a tax decrease of about $11 for the 2016-17 school year. Property tax bills are due to be mailed this month.

The school board was divided on whether to retain the current tax rate and keep about $150,000 in the budget or give homeowners a small tax break. In the end, the board decided to offer the largely symbolic tax cut.

Teacher Contract Approved

The Harrisburg school board and teachers agreed to a new contract last month, ending a four-year battle between the two sides.

The agreement gives teachers their first raise since a state-appointed chief recovery officer was named in 2012. In turn, teachers and others covered by the agreement, including school guidance counselors and nurses, will contribute more to their health care plans.

Before the agreement, teachers had threatened to strike if the school board and the Harrisburg Education Association could not reach a new accord.

Dispersal of Housing Funds Considered

Harrisburg would retain federal housing funds for its own use under an ordinance introduced last month by the city administration.

Under the proposal, the city would keep nearly $1.9 million in Community Development Block Grant funds, an annual grant from the federal Department of Housing and Urban Development. For years, the city has shared the money with a select group of nonprofit organizations.

Under the administration’s proposal, about one-third of the amount would go to debt service, as the city must pay back a federal loan it backed for the once-bankrupt Capitol View Commerce Center, as well as pay back other federal community development loans dating back about 15 years.

Remaining funds would go to public safety, housing rehabilitation, emergency demolition and several other city-identified priorities.

Several nonprofit groups have protested being shut out of the annual distribution. At press time, City Council had not agreed to the final disbursement of the monies.

Tax Abatement Finalized

Dauphin County last month gave the final OK to Harrisburg’s tax abatement plan, allowing the 10-year abatement to proceed.

The county commissioners approved the plan unanimously, which will offer a full, 100-percent abatement over 10 years for improvements to residential properties and at least a 50-percent abatement on improvements to commercial properties.

A divided City Council passed the administration’s abatement plan last year. The school board approved it in May, leaving only Dauphin County—as the final taxing authority for city properties—to offer its blessing. Harrisburg now must hire an administrator to oversee the program.

The abatement also offers some benefit for new construction, but, to get tax relief, developers must follow certain requirements, including paying a prevailing wage for construction workers and hiring a certain percentage of minority and local workers.

State Forgoes Appeal

The state attorney general’s office will not appeal a court ruling that dismissed 305 criminal counts against former Harrisburg Mayor Steve Reed.

In a brief statement, the office said it would honor a May ruling by presiding Judge Kevin A. Hess that the crimes alleged by the state occurred too long ago, exceeding the statute of limitations.

The state, though, will continue to pursue 144 criminal counts against Reed on theft-related charges.

“With his fascination for the Wild West, this man used other people’s money to decorate his house and office with antiques,” said Solicitor General Bruce L. Castor Jr. “But Pennsylvania is not the Wild West. We have the rule of law here.”

New Precinct Planned

Allison Hill soon may get a new police precinct, as the city plans to renovate a building near 15^th and Derry streets.

Money to rehab the one-story structure would come from part of a $250,000 federal community grant, according to Harrisburg Police Chief Thomas Carter.

Allison Hill residents have been clamoring for increased police presence for many years, and Carter said the new, 24-hour station should make police officers more visible, while reducing response times and increasing ties to the community.

Home Sales Jump

Home sales in the Harrisburg area continued their yearlong rise, according to the Greater Harrisburg Association of Realtors.

Sales rose to 908 units in May compared to 792 units in the year-ago period, with the median price rising to $174,900 vs. $170,000, said GHAR.

In Dauphin County, sales totaled 297 units against 269 in May 2015, while the median price dipped to $155,000 from $159,900. In Cumberland County, sales rose to 326 from 281, and the median price increased to $219,561 from 213,712. Average days on the market fell in both counties.

In Perry County, 30 homes sold compared to 37 in the year-ago period. However, the median price increased to $151,500 vs. $117,900 in May 2015.

In addition to all of Dauphin, Cumberland and Perry counties, GHAR covers parts of York, Lebanon and Juniata counties.

So Noted

Harrisburg Beer Week handed over a check for $40,000 last month to Harrisburg River Rescue and Emergency Services. The check was double the amount raised last year during the weeklong celebration of craft beer. River Rescue plans to use the money for additional improvements to its facility.

Highmark Blue Shield presented Harrisburg with a $100,000 grant last month to fund summer enrichment and after-school programs for children in the city school district. The Highmark funding will support activities like basketball, golf, swimming, various educational field trips and a daily lunch. Harrisburg children ages 6 to 18 are eligible.

PinnacleHealth this month plans to open the new Lebanon Valley Advanced Care Center, an 80,000-square-foot building at 1251 E. Main St., Annville. When fully occupied, the facility will house numerous groups, including Annville Family Medicine, PinnacleHealth Endocrinology, Select Physical Therapy, PinnacleHealth Express and the PinnacleHealth CardioVascular Institute.

Rite Aid in downtown Harrisburg will move across Market Street into about 14,000 square feet in Strawberry Square, it was announced last month. The larger space will allow Rite Aid to offer more products, as well as a retail pharmacy, said Brad Jones, CEO of Harristown Enterprises, which owns Strawberry Square. The move should occur by the end of the year. In other Strawberry Square news, CASA plans to take another 2,400 square feet of space there, while the fashion brand AMMA JO last month doubled its presence by expanding into an adjoining storefront.

The Game Table Café has cut the ribbon on its location at 4900 Carlisle Pike in Mechanicsburg. The Game Table Café provides a relaxed setting to enjoy a cup of coffee and play board games with friends and family.

Changing Hands

Barkley Lane, 2515: K. Troung & L. Pham to L. Truong, $45,000

Bellevue Rd., 2114: Federal National Mortgage Assoc. to D. & E. Kerr, $153,000

Boas St., 219: D. Commins to A. Moyer, $136,000

Brookwood St., 2434: R. Hillman to The IRA Club & T. McDougal, $42,000

Calder St., 115: A. & M. Anselmo to Penn Real Estate Solutions LLC, $49,700

Calder St., 519: S. & M. Martin to J. Fisher, $100,000

Croyden Rd., 2778: PA Deals LLC to D. Blumenthal, $78,000

Derry St., 2712: L. & J. Burnette to D. Diehl, $72,000

Edward St., 243: A. Clionsky to D. & J. Ruscito, $200,000

Edward St., 504: S. Krum to D. & J. Kruzhilin, $88,000

Ellersie St., 2344: G. Rudy to V. Ramsey, $59,000

Fulton St., 1405: PA Deals LLC to S. Orwan, $110,000

Fulton St., 1937: B. Rodriquez & American Heritage Property Management to T. Gates, $43,800

Green St., 1414: S. Jusufovic to V. Reydams, $140,000

Green St., 1423: J. & V. Bates to R. Walter, $81,900

Green St., 1915: GRSW Stewart Real Estate Trust to J. & K. Johnston, $195,000

Green St., 1945: J.A. Hartzler to WCI Partners LP, $212,000

Hale Ave., 415: T. Pham & T. Vu to J. & J. Fickett, $59,000

Hamilton St., 238: J. Manzella to J. & M. Moritz, $135,000

Herr St., 127: R. Lake to C. Wagoner, $156,500

Hudson St., 1246: Bank of New York Mellon to PA Deals LLC, $47,250

Logan St., 1728: Wilmington Savings Fund Society to S. Eagle, $102,000

Maclay St., 245: N. Do to M. Cvetko, $30,000

Midland Rd., 2408: J. Jaxheimer to M. Boone, $179,900

Mulberry St., 1951: C. Campbell to E. & B. O’Brien, $51,000

N. 2^nd St., 812: J. Swoyer to A. Meoli, $197,500

N. 2^nd St., 1700: Metro Bank to Hopewell Estates 2^nd Street LLC, $400,000

N. 2^nd St., 2414: A. & G. Hall to R. Gist, $62,000

N. 2^nd St., 2539: US Bank NA Trustee to D. Garber, $58,000

N. 2^nd St., 2802: D. Skerpon & C. Baldrige to S. Gallagher & C. Prestia, $166,900

N. 2^nd St., 3004: E. & T. Lukoski to 8219 Ventures LLC, $40,000

N. 3^rd St., 1621: Wells Fargo Bank NA to Henly Homes LLC, $54,180

N. 3^rd St., 2451: Triple J. Assoc. Ltd. To Hornby Zeller Properties LLC, $149,900

N. 5^th St., 3204: Information Systems Networks Corp. & Secretary of Housing & Urban Development to T. Radcliff, $98,100

N. 16^th St., 911: M. McManus to S. Sprinkle, $87,500

N. 18^th St., 1116: P. & S. Mitchell to K. Wright, $70,000

Parkside Lane, 2922: A. Anderson to J. & B. Williams, $200,000

Race St., 562: Brady Daughters Realty LLC to S. Garnes, $153,500

S. 2^nd St., 302: Federal Home Loan Mortgage Corp. to J. Pronio, $49,900

S. 17^th St., 319: E. & L. Castillo to 4P Ventures LLC, $120,000

S. 29^th St., 720: C. Karstetter to S. Maurer, $38,000

S. Front St., 709: R. Stevenson to D. Smith, $185,000

State St., 217: Medical Bureau of Harrisburg to D. Ragland, $110,000

State St., 231, Unit 303: LUX 1 LP to T. & D. Jensen, $121,000

State St., 1936, 1940 & 1942: L. & K. Price to M. & E. Duvall, $75,000

Susquehanna St., 1825: A. Tilley to M. Manley, $87,000

Susquehanna St., 2005: Kusic Financial Services LLC to M. Rioux & H. Perry, $68,000

Harrisburg property sales for May 2016, greater than $30,000. Source: Dauphin County. Data is assumed to be accurate.

November News Digest

November 30, 2015 | by Admin

New Council Members

Harrisburg City Council will have a fresh look next year, as voters last month elected three newcomers to the city’s seven-member legislative body.

Cornelius Johnson tallied 3,383 votes, while Westburn Majors took 3,343. Jeffrey Baltimore, the only incumbent running, earned 3,563 votes.

All three were running unopposed for the three, four-year seats after topping a crowded Democratic field during the May primary. No Republicans ran.

Destini Hodges tallied 3,514 votes running unopposed for the lone, two-year council seat.

Three council seats were open after councilwomen Susan Brown-Wilson and Sandra Reid decided not to run and Councilman Brad Koplinski lost in the primary.

For city treasurer, Tyrell Spradley earned his first full term, taking 3,545 votes in the general election.

School Board Shakeup

Harrisburg voters last month elected several new members to the district school board last month.

Meanwhile, newly re-elected board President Jennifer Smallwood announced her resignation from the body.

Ellis R. Roy, Lionel Gonzalez, Matthew Krupp and Melvin Wilson Jr. each earned four-year seats, as did Smallwood. Judd Pittman, who recently was appointed to the board to fill an opening, took the lone two-year seat.

The candidates all ran unopposed for their seats after emerging victorious in the May primary. Krupp was the only candidate on the Republican ballot, having been nominated by both parties.

The board now must appoint a replacement for Smallwood. That person will serve until the next school board election in 2017.

County Commissioners Re-Elected

The makeup of the Board of Commissioners will be unchanged as Dauphin County voters last month retained the three incumbents.

Voters returned Republicans Jeff Haste and Mike Pries, as well as Democrat George Hartwick, to office. Democrat Tom Connolly lost his challenge.

In other competitive county races, Republican Nick Chimienti beat Democrat Tim Carter for county sheriff, and Republican Timothy DeFoor defeated Democrat Eric Gutshall for county controller.

Several incumbents won re-election running unopposed, including District Attorney Ed Marsico, Clerk of Courts Dale Klein and Treasurer Janis Creason.

Water Rate Hiked

Customers of Capital Region Water will pay 9.7 percent more next year for drinking water, as the board last month passed a rate increase.

The new water rate will be $7.88 per 1,000 gallons, as opposed to $7.18 in 2015. The “ready to serve” charge also will increase 9.7 percent

“We don’t take rate increases lightly, and our board of directors is sensitive to the burdens already placed on the people and places we serve, but the systems that our customers rely on to deliver safe drinking water every day and to clean wastewater before it reaches the Susquehanna River were long ignored,” said Capital Region Water CEO Shannon Williams.

Sewer rates will remain unchanged at $6.05 per 1,000 gallons.

“After years of deferred maintenance and lack of investment into our drinking water, wastewater and stormwater systems, we continue to build up to necessary staffing levels and to make long overdue improvements to our aging infrastructure to prevent the even higher costs of failure,” Williams said.

County Taxes Steady

For the 11^th straight year, Dauphin County property taxes are expected to be unchanged, the county commissioners said last month.

The county portion of the property tax should remain at 6.876 mills for 2016, according to a statement by the commissioners.

The county commissioners are expected to pass a 2016 budget this month, which will affirm their tax plan.

Managers Get Payouts

Five Harrisburg department managers will receive payouts for unused off-time following approval last month by City Council.

Council authorized the city administration to spend almost $29,000 to compensate these managers for unused sick and vacation time from 2013. It was about $7,000 more than the administration was requesting.

Mayor Eric Papenfuse said that, following negotiations, the managers had agreed to take 75 percent of the amount owed them for the unused time. Council, however, authorized Papenfuse to reimburse them for up to 100 percent of that time.

Sinkhole Relief Denied

Harrisburg received disappointing news last month, as the Federal Emergency Management Agency rejected its application for sinkhole relief funds.

FEMA notified Harrisburg that it had turned down a request for $4.1 million to buy out homeowners in a sinkhole-ravaged area of S. 14^th Street.

In the competition for funds, the Pennsylvania Emergency Management Agency had ranked Harrisburg’s request first in the state, but, instead, FEMA approved a $2.1 million application from Palmyra, which was ranked second.

PEMA appealed the decision, and Mayor Eric Papenfuse also wrote a letter asking FEMA to reconsider.

Housing Data Strong

Home sales showed continued strength in October, sustaining a yearlong trend in the Harrisburg area.

For the month, 791 housing units sold, compared to 671 in October 2014, with the median price increasing to $162,900 from $156,500, according to the Greater Harrisburg Association of Realtors.

In Dauphin County, sales totaled 245 units versus 229 units in the year-ago period, with the median price inching up to $139,000 from $138,000, GHAR reported.

Cumberland County sales actually dropped slightly, to 297 units from 303, but the median price increased to $185,000 from $175,000, said GHAR. Perry County followed a similar trend, with sales decreasing to 28 units from 43, but the median price rising to $129,250 from $115,000, GHAR reported.

In addition to all of Dauphin, Cumberland and Perry counties, GHAR’s coverage area includes parts of York, Juniata and Lebanon counties.

So Noted

Little Amps Coffee Roasters last month opened its third location, a kiosk on the main floor of Strawberry Square in Harrisburg. Little Amps was founded in 2011 at a location on Green Street in Olde Uptown and later opened a downtown café at N. 2^nd and State streets.

Allen Distribution has signed a 321,333-square-foot lease at 100 Capital Lane, part of the newly renovated Capital Logistics Center in Middletown. The logistics company has leased the entire building, one of six comprising the 1.55-million-square foot industrial complex.

Level 2 is making changes going into 2016. The popular Latin Night will move to Friday and combine with the monthly Latin Fuzion party to create Fuzion Fridayz. Level 2 also is responding to increased demand for private events, with the space available for fundraisers, rehearsals, receptions and more. For information and updates, visit www.level2.us or their Facebook page.

Changing Hands

Alricks St., 638 & 651: Central Dauphin Realty Co. to Coho Spawning Industries & Meridian Recycling LLC, $650,000

Boas St., 235: L. Dempsey & B. Hartlage to C. Guy, $171,500

Calder St., 115: L. Paige to A. & M. Anselmo, $42,500

Derry St., 2436: M. Miranda to M. & I. Collins, $63,000

Forster St., 416 & 418: Pennsylvania Psychological to ITSM Specialties LLC, $145,000

Forster St., 1844: D. & D. Hall to S. Martin, $75,000

Fulton St., 1400: C. Krobath to PA Deals LLC, $90,000

Green St., 1617: A. Doherty to A. Calvano, $124,000

Green St., 3214: M. Traxler to D. Bartels, $105,000

Hale Ave., 397: J. & G. McCarchey to J. Gonzalez, $62,000

Hamilton St., 235: R. Swartz to G. Huggens, $168,900

Hamilton St., 238: LSF8 Master Participation Trust to J. Manzella, $63,900

Hamilton St., 326: K. Stratton to R. Hadrick, $110,000

Hanover St., 1701: C. Cheam to S. Chen, $400,000

Hoffman St., 3206: Skynet Property Management LP to J. Ostrander, $75,000

Kelker St., 315: N. Schock to C. Clymire, $109,900

Kensington St., 2313: Skye Holding LLC to J. Meas, $45,000

Locust St., 110 & 112: Pennsylvania Housing Finance Agency to Locust Company LLC, $140,000

Market St., 1811: B. Vorndran to HE Pressley Properties LLC, $33,000

N. 2^nd St., 717: M. Hilden & S. Farzin to BCRA Realty LLC, $150,000

N. 2^nd St., 806: Pennsylvania Council of Republican Women to H. Fang & K. Zhu, $77,000

N. 2^nd St., 1200: W. Moyer to Harrisburg Second Street Apartments LLC, $65,000

N. 2^nd St., 2403: CNC Realty Group LLC to AON LLC, $470,000

N. 2^nd St., 2517: 8219 Ventures LLC to AXL Realty Group Inc., $42,000

N. 2^nd St., 3002: B. & K. Elgart to E. Stailey, $152,000

N. 3^rd St., 1100 & 268 Herr St.: Triple Ace LP to AON LLC, $352,000

N. 3^rd St., 2248: M. Coleman to N. Hartwig, $85,000

N. 4^th St., 2737: T. Murphy to Mountaincrash Investments LLC, $37,000

N. 5^th St., 3208: W. & R. Bragunier to K. & D. Roberts, $61,760

N. 6^th St., 2610: S. Wright to J. Shutter, $34,650

N. 18^th St., 120: G. Neff to D. Geiger, $35,000

N. Front St., 2233: Mancke and Wagner Real Estate to J.A. Hartzler & K. Werley, $300,000

Penn St., 1110: G. Latasha to A. St. John & R. Wagoner, $180,000

Penn St., 1111: D. Cooper to H. Landenberger, $114,000

Rolleston St., 1013: R. & A. Showers to W. & J. Wirfel, $30,000

S. 13^th St., 240: NJR Group LLC & Touch of Color to A. Radon, $460,000

S. 19^th St., 1111: Secretary of Housing & Urban Development to K. Saqib, $31,500

S. Front St., 315: JGPA Realty LLC to S. Eicher, $146,650

S. Front St., 605: B. Glazier & E. Tsumura to J. & C. Fabian, $152,000

Valley Rd., 2313: Secretary of Housing & Urban Development to K. & E. High, $78,000

Waldo St., 2708: Freddie Mac to Tassia Corp., $30,000

Wilson Parkway, 2734: PA Deals LLC to G. & C. Rodda, $80,000

Wiconisco St., 611 & 2641 Agate St.: Thompson LLP to Stop & Store Inc., $175,000

Wyeth St., 1417: Secretary of Housing & Urban Development to D. Drabik, $71,000

February News Digest

February 27, 2015 | by Admin

Mayor OKs Verizon Workout

Harrisburg Mayor Eric Papenfuse last month signed off on an agreement to help the city avoid default on a $41.6 million bond tied to the so-called Verizon Tower—but did so reluctantly.

In 770-word open letter, Papenfuse blasted aspects of the deal with Assured Guaranty Municipal Corp. (AGM), attacking the amount of the city’s obligations under the agreement and saying that the state had pressured him to sign off on it.

However, not agreeing to the deal, which was approved by City Council in late January, would have been worse, he said.

The deal is the culmination of two years of negotiations to resolve an outstanding debt burden from a city-backed borrowing in 1998.

That year, the city sold three office towers in Strawberry Square to the Harrisburg Redevelopment Authority, guaranteeing the bonds issued to finance the $24 million purchase.

One of the buildings, constituting about $7 million of the original debt, was secured by rent from Verizon, the primary tenant. However, no payments would have to be made on that bond until 2016, at which time the $7 million debt would balloon to $41.6 million. Furthermore, Verizon was set to depart the building in 2016.

Beyond tenant payments, the only security for the bonds was city tax revenues, meaning that the empty office building would leave Harrisburg on the hook for the full principal and interest on the original debt, totaling $41.6 million.

In September, the state Department of General Services agreed to a 17-year lease that will pay off a portion of the city’s obligation each year, for a total of around $11 million through 2033.

The settlement agreement the mayor signed off on helped clear the way for a $16 million retrofit of the building, which the state required as a condition of its lease.

City Fights Gun Suits

Harrisburg went to court last month to fight two lawsuits challenging the city’s gun control laws.

The city filed three motions in the Court of Common Pleas to battle two lawsuits filed in January by the McShane Law Firm. The motions seek to delay the lawsuits and disqualify McShane from the suit.

Those lawsuits were prompted by a recent state law passed last year that grants gun-rights membership groups standing to sue local governments over their firearms regulations.

As a result, many cities and towns have repealed their gun ordinances. Several others, however, including Philadelphia, Pittsburgh, Lancaster and Harrisburg, have decided to fight back.

Harrisburg also established a “Protect Harrisburg” legal defense fund to help the city cope with the expense of the lawsuits. To contribute, visit www.harrisburgpa.gov/protectharrisburg.

Gaming Money Awarded

Dauphin County commissioners last month doled out $6.4 million in annual gaming grants for projects throughout the county.

Locally, grants included:

Harrisburg, $200,000 for four K9 patrol vehicles
Humane Society of Harrisburg Area, $120,000 for facility improvements
Swatara Township, $309,000 for a fire engine and other projects
Steelton, $70,866 for fire station repairs and to retire fire engine debt
Susquehanna Township, $202,000 for a pedestrian safety project and Vietnam Veterans memorial
Dauphin County Library System, $75,000 for HVAC improvements
Susquehanna Art Museum, $70,000 for a museum facility project
Gamut Theatre, $50,000 for renovation of its new facility (match required)
PA National Fire Museum, $50,000 for property acquisition
Camp Curtin YMCA, $75,000 for property improvements and sinkhole repair
Harrisburg River Rescue, $45,216 for facility improvements
Boys & Girls Club, $80,000 for facility expansion (match required)
Harrisburg Young Professionals, $75,000 for Market Square improvement project (match required)
Jewish Federation of Greater Harrisburg, $50,000 for security improvements

The grants originate from revenue generated by Hollywood Casino slot machines.

Mulder Square Proposed

Harrisburg has applied for a state grant to help revitalize a large swath of Allison Hill, an area the city is calling “Mulder Square.”

The Papenfuse administration last month submitted an application for a Redevelopment Assistance Capital Program grant totaling $6.5 million. If received, the money would pay for a wide variety of projects, such as streetscape improvements, blight removal and redevelopment, said the city.

The term “Mulder” was developed by combining Mulberry and Derry, two of the principal streets in the targeted area.

Uber Launches in Harrisburg

Got a car? Then you might be able to go into business for yourself, as the Uber ride-sharing service launched last month in Harrisburg.

Company General Manager Jennifer Krusius joined Mayor Eric Papenfuse to announce the arrival of Uber, which uses a smartphone application to link drivers and riders.

The cost to use the service is a $2 base fare, then $1.75 per mile and 25 cents per minute.

Harrisburg is at the center of the area’s Uber territory, which runs west-to-east in a peanut-shaped design that goes from the western Carlisle suburbs in Cumberland County to Palmyra in Lebanon County.

Besides Harrisburg, the territory includes such places as Mechanicsburg, Camp Hill, Linglestown, Hummelstown and Hershey.

HUD Hearings Set

Harrisburg will hold three hearings this month to get public input to help develop a plan for the annual distribution of federal housing funds.

The first will take place March 5 at 5:30 p.m. at Harrisburg school district headquarters, 1601 State St. The second will be held on March 12 at 5:30 p.m. at the Heinz-Menaker Senior Center, 1824 N. 4^th St., and the third will be on March 19 at 11:30 a.m. at HACC Midtown 2, 1500 N. 3^rd St.

The city expects to receive nearly $2 million in Community Development Block Grant (CDBG) funds; $481,295 in Home Investment Partnerships money; and $160,887 in Emergency Solutions Grants funding.

TRAN Passed

Harrisburg City Council has approved a tax and revenue anticipation note (TRAN) in the amount of $4.5 million.

A TRAN is a form of short-term borrowing that municipalities often issue to cover lean revenue periods, allowing the city to pay its bills in the event of a cash shortfall until property taxes and revenues begin to roll in. In Harrisburg, for instance, cash flow often is weak until late March, when people begin to pay their city property taxes.

The TRAN will cost the city a $1,500 legal fee, but no commitment fee.

Last year, the council authorized a $2 million TRAN with a $10,000 commitment fee and a $5,000 legal fee. Ultimately, the city did not draw on the TRAN at all.

Riviera Razed

The city last month demolished the Riviera Hotel, a dilapidated bar and rooming house at the corner of 6^th and Kelker that rapidly deteriorated after a 2010 fire and recent series of collapses.

Dave Patton, codes administrator for the city, said the demolition work was bid out to Swatara Township-based Arney Brothers, Inc., for $24,549.

Patton also said the owners of the Riviera, Marion and Diana Nicklow of Hershey, have agreed in court to a plan to pay back the city for demolition costs.

The demolition concludes a troubled run for the century-plus-old Riviera, a three-story yellow brick building with faded, blue-gray paint on the window trim and the first-floor façade.

County property records show that the Nicklows purchased the building in March 1999 for $80,000. They filed for bankruptcy protection in 2009 after defaulting on a business line of credit for the Riviera and a mortgage on a separate property, according to court records.

The building was condemned in May 2010 following a fire, Patton said. Nonetheless, Patton said he recently discovered a homeless man living on the second floor, who had gained access via a fire escape.

Changing Hands

Berryhill St., 2110: Secretary of Housing & Urban Development et al to D. Murphy, $43,200

Chestnut St., 1722: M&T Bank to J. Palmer, $47,000

Derry St., 2426: J. Fleck to S. Rimal, $32,000

Fulton St., 1715: Secretary of Housing & Urban Development & Michaelson Connor & Boul to J. Leh, $60,000

Green St., 920: P. Wambach to C. Korinda, $126,000

Green St., 2015: WCI Partners LP to J. Blouch, $205,900

Green St., 2932: R. & E. Schwab to J.A. Hartzler, $65,000

Hale Ave., 421: R. Consoli to K. Nguyen & N. Ho, $69,900

Holly St., 1915: H. & K. Bey to E. & C. Smith, $73,000

Howard St., 1354: F. & L. String to NF String & Sons, $40,000

Industrial Rd., 4230: J. Niebauer Jr. to Cottage Real Estate LLC, $2,175,000

Luce St., 2365: R. & K. Stouffer to T. Nguyen & T. Mai, $37,500

Penn St., 1419: M. Rudy & M. English to N. Myers, $135,500

Reily St., 227: K. Kuss to R. Mundy, $166,000

Rolleston St., 1025: F. & E. Wonders to M. Jimenez & G. Abreu

Rose St., 925: S. & C. Hahn to D. Niles, $67,000

N. 2^nd St., 2229: Aurora Loan Services LLC to P. & C. Ambrose, $32,500

N. 3^rd St., 1219: C. Carson et al to T. Kelley, $70,000

N. 5^th St., 3006: J. Hudock Jr. to C. Stockard, $66,000

N. 17^th St., 98: Willow LLC to D&F Realty Holdings LP, $40,000

N. 18^th St., 911; 1644 Market St.; 629 Wiconisco St.; 2040 N. 4^th St.; 327 Peffer St.; 1831 Boas St.: Shokes Enterprises to JDP 2014 LLP, $433,000

Reily St., 227: K. Kuss to R. Mundy, $166,000

S. 13^th St., 932: South 13^th Street Properties LLC to Agree Limited Partnership, $1,783,000

S. 24^th St., 706: B. & C. Shadle to M. Cornelius, $38,000

S. 25^th St., 430: J. Wright to C. Munoz, $83,900

Verbeke St., 234: Centric Bank to J. Dixon, $120,000

Vineyard Rd., 218: R. & B. Seaton to S. & J. Clark, $199,000

Waldo St., 2641: P. Proctor to S. Clark, $30,000

Mayor Again Presses County to Cut Civil War Museum Funding

August 29, 2014 | by Paul Barker

Harrisburg’s National Civil War Museum in Reservoir Park.

Harrisburg Mayor Eric Papenfuse took another shot at the National Civil War Museum’s tax subsidy late Friday afternoon, suggesting that the Dauphin County commissioners were taking an excessively long time to conduct a legal review of his request that they freeze the museum’s funding.

In a press release, Papenfuse is quoted as saying that the commissioners have clear authority under a county tax ordinance to withdraw their approval of the museum’s estimated $300,000 subsidy per year.

“This is not a complicated legal question that requires weeks of review,” the mayor is quoted as saying. “It is fully within the commissioners’ authority to stop the National Civil War Museum’s misuse of hotel tax dollars on salaries and general expenses.”

Dauphin County Chief Clerk Chad Saylor, however, said by phone Friday that lawyers for the county “basically don’t share that view.”

“He raises an important issue, and we’re taking it seriously,” Saylor said of the mayor’s request. “But we’re going through our process.”

Saylor added that the current funding arrangement, which involves a combination of state hotel tax law, county ordinance, and separate contractual agreements between various parties involved, is more complicated than the mayor suggests.

Saylor also said that the mayor should not expect a decision from the county until the commissioners have heard from museum representatives at one of their public hearings. Such a presentation by the museum is not yet scheduled, he said.

Friday’s press release is just the latest in the mayor’s sustained efforts to reclaim the museum’s portion of county tourism dollars for city use. He first raised the issue at a county commissioners’ hearing July 30, at which time he also critiqued the museum’s $1 annual rent for the use of millions of dollars worth of city artifacts and a facility whose fair market value is estimated at $633,000 per year.

The press release, with its reference to spending on “salaries and general expenses,” follows a line of argument that the mayor’s office advanced on Wednesday, when it released a report from the National Civil War Museum regarding the museum’s use of hotel tax funds.

According to that report, which only covered the museum’s 2010-11 fiscal year, the museum spent 66 percent of its $270,696 in county tourism dollars on salaries and another 18 percent on utilities.

Only 15 percent was spent on marketing, although the report also identifies the salaries as being for “3 full-time sales and marketing staff.”

The mayor’s office did not provide any reports on the museum’s marketing expenditures in more recent years.

Friday’s press release also draws a distinction between the museum’s share of hotel taxes and the city’s, noting that the county ordinance permits a broader variety of uses for the portion the city receives directly each year.

Among those permitted uses for the city is payment of debt service on bonds issued for the construction of tourism-related facilities, which the mayor’s office says more than consumes the city’s portion—around $750,000—of hotel taxes each year.

“The money the city receives directly from commissioners for tourism is less than the annual debt payments on bonds that helped originally construct the National Civil War Museum and other tourism related facilities,” the mayor is quoted as saying. “I don’t think the public is aware that the city is still paying off debt for this venture.”

In a phone call placed shortly after the press release was issued, the mayor’s spokeswoman, Joyce Davis, was unable to clarify which bond issues the release referred to. But Neil Grover, the city solicitor, said in a subsequent phone interview that they comprised general obligation bonds that were partly used to fund tourism projects, which the city is still paying off.

These bonds include a 1997 series that indirectly financed the Civil War Museum through projects related to Camp Curtin and improvements in Reservoir Park, Grover said. An additional portion of general obligation debt went to finance the construction of the stadium on City Island, which Grover said fits the description of a tourism-related facility.

Saylor, the Dauphin County chief clerk, said Friday that the county would also like to review these expenditures by the city out of its share of hotel tax funds. “Did the mayor mention the 2.5 million?” Saylor said, referring to an estimated $2.5 million the city has received in direct revenue from the tax since 2011. He said the county would like to get information from Harrisburg on how that money was spent, though he acknowledged the county had not yet made any formal request for that information.

Friday’s press release was the mayor’s third substantive action against the museum this week, his first back from a two-week vacation. In addition to the report on marketing expenditures, Papenfuse brought a resolution to City Council Tuesday night asking for its support of his request to county commissioners, which council passed unanimously.

A phone call to Wayne Motts, the National Civil War Museum’s CEO, was not immediately returned Friday afternoon.

This story has been updated to include comments from the Dauphin County chief clerk.

At Mayor’s Behest, Council Offers “Show of Unity” on Civil War Museum Funding

August 27, 2014 | by Paul Barker

The National Civil War Museum in Reservoir Park.

Harrisburg’s City Council voted unanimously Tuesday evening to join Mayor Eric Papenfuse’s request to the Dauphin County commissioners to suspend the portion of hotel tax funding that is sent under contract each year to the National Civil War Museum.

The resolution, which did not appear on the agenda and was introduced towards the end of council’s first session back after summer vacation, cites the city’s recent “profound fiscal distress” as well as the museum’s inability to show “measurable, tangible economic benefit to tourism” in Harrisburg as reasons why its funding stream should be cut off.

In his presentation Tuesday night, Mayor Papenfuse said that an affirmative vote from council would be a “show of unity” to county commissioners that the city no longer wished to subsidize the museum’s operations.

Papenfuse made his initial request to the county commissioners at their July 30 hearing. During that presentation, he noted that the museum received around $300,000 per year from a portion of county hotel taxes designated by ordinance for promoting tourism within the city. That money, he said, went to cover a portion of the museum’s more than $1 million in operating expenses.

Additionally, Papenfuse said, the museum paid only $1 to the city in rent on a facility whose fair market value is listed in the museum’s own financial statements at $633,000 per year. The building was constructed with state RACP funding of $16.2 million.

The rent also includes the use of city-owned artifacts, which the city purchased over the course of several years for somewhere between $16 and $18 million.

Papenfuse added that the hotel tax funding and the rent were fixed by agreements that had been extended—one of them out to 2039—in the “waning days” of the administration of former Mayor Stephen Reed. Reed, who spearheaded the Civil War Museum’s construction, is listed in exhibits at the site as the museum’s founder.

Council members mostly expressed dismay Tuesday night at the extent of city subsidies of the museum, as well as the absence of any council vote or discussion on the agreements that stipulate the current funding arrangement.

Councilwoman Susan Brown-Wilson, who shook her head as the mayor quoted the museum’s rent payment, also suggested that the museum needed new board members that better reflected the community.

Councilman Ben Allatt, the chair of the budget and finance committee, said he would like to invite museum directors to make their case before council. He said he would invite them to a committee meeting on Sept. 16.

In addition to the hotel tax and the rent agreement, the city has also made several direct payments to the museum since 2000. On Tuesday before council, the administration cited a figure of $12 million for these payments, and the resolution refers to the same number in its recitals.

A budget printout previously provided to TheBurg, however, shows only $1.2 million in such payments. Bruce Weber, the city’s budget and finance director, later said the administration had misspoken, and that the correct figure was $1.2 million.

The hotel tax is a 5-percent tax on overnight lodging in Dauphin County hotels. Under county ordinance, the city currently receives around $750,000 per year in hotel taxes, which is sent directly to its general fund. A second portion, around $500,000 per year, goes to a visitors bureau to be spent on promoting tourism in the city. It is out of this second portion that the museum receives its contractually established payment of around $300,000.

The National Civil War Museum opened in February, 2001, and is open 361 days per year. After a first-year high of around 96,000 visitors, its annual attendance has fluctuated between 38,000 and 41,000 for the past five years. In a recent conversation with TheBurg, museum board members spoke proudly of their efforts to reduce the museum’s operating expenses, which once covered a much larger staff and totaled upwards of $2.5 million.

For an in-depth feature on Mayor Papenfuse’s request regarding the National Civil War Museum, including an extended interview with the museum board, see the September issue of TheBurg, which will hit newsstands Friday.

County Commissioners: We Support Harrisburg Strong

September 16, 2013 | by TheBurg Staff

HARRISBURG STRONG PLAN BENEFITS ENTIRE REGION

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

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

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

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

Better financial footing for Dauphin County

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

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

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

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

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

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

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

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

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

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

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

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

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

Achieving a long-term waste management solution

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

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

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

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

Harrisburg Strong plan lays groundwork for regional economic growth

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

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

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

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

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

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

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

Tag Archives: Dauphin County commissioners

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