Tag Archives: Harrisburg Midtown Arts Center

H*MAC inks agreement, announces partnership with concert promoter, booker Live Nation

H*MAC in Midtown Harrisburg

More national musical acts soon will be making stops in Harrisburg, as the Harrisburg Midtown Arts Center (H*MAC) today announced a strategic partnership with Live Nation, a leading live entertainment company.

Under the multi-year agreement, Live Nation will be H*MAC’s exclusive booking partner for the 1,200-person capacity Capitol Room, the largest of several performance spaces in the sprawling Midtown entertainment and dining complex.

“We have a beautiful venue, and now with our new partnership with Live Nation, we’re looking to take H*MAC to the next level with even more concerts and performances,” said Chris Werner, H*MAC’s president of entertainment. “This new relationship will help drive the ongoing revitalization of the city’s live entertainment scene.”

H*MAC opened in 2009, with the original partners mounting an extensive, multi-year renovation of the 34,000-square-foot space that once housed Harrisburg’s first Jewish Community Center. In 2019, a new partnership assumed control, purchasing the venue for $6 million and continuing the building restoration.

H*MAC now includes several entertainment spaces, art galleries, bars and a restaurant, Zachary’s BBQ & Soul, which opened last year.

H*MAC’s smaller, 350-person capacity space, Stage on Herr, also will undergo improvements, including a wider stage, permanent seating and sound system upgrades, according to Live Nation.

“H*MAC is a fantastic space for live music, and we look forward to working closely with the team in creating new and exciting opportunities connecting artists to artists with their fans here in the capital city of Pennsylvania,” said Geoff Gordon, regional president, Live Nation Northeast.

According to Gordon, Live Nation was attracted to H*MAC due to its extensively renovated and upgraded facility, as well as its location in central PA, which offers a strategic stop for national touring acts.

“Our team currently books shows across the state in Philadelphia, Wilkes-Barre, Scranton, Allentown, Reading, Hershey, State College and Pittsburgh,” he said. “By adding H*MAC, we can provide an additional tour stop for artists traveling between cities like Philadelphia and Pittsburgh, connecting them with a new and engaged audience.”

In conjunction with the partnership announcement, Live Nation today unveiled the first shows that will be a part of the ongoing live performance series at H*MAC, including Jamaican reggae singer Beres Hammond on Aug. 23, Italian goth-metal band Lacuna Coil on Sept. 8, Finland’s symphonic metal band Apocalyptica on Sept. 11, and American punk rock band Dead Boys on Oct. 20.

“H*MAC is a fantastic space for live music, and we’re looking to increase opportunities to connect music fans with some of their favorite artists here in Pennsylvania’s capital city,” Gordon said.

H*MAC is located at 1110 N. 3rd St., Harrisburg. For more information, visit www.harrisburgarts.com. For more information on Live Nation, visit www.livenationentertaimment.com.

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Amped Up: HU Presents to bring “best” concert lineup yet to Harrisburg this summer

Young the Giant concert at Riverfront Park in 2021

 

Harrisburg’s music scene is set to heat up in the coming months.

This summer, Harrisburg University Presents is ready to bring back its concert series in full volume, after an altered season last year due to the pandemic.

The university is hosting shows across the city, at venues such as Riverfront Park and XL Live, with some concerts even booked in Hershey. 

At Riverfront Park, HU Presents will host Death Cab for Cutie, The Roots, LANY, KALEO, Lord Huron, Nathaniel Rateliff and the Night Sweats, and The National. The university will also sponsor Mallrat at the Englewood in Hershey this fall. 

HU Director of Live Entertainment and Media Services Frank Schofield said he is excited for all of the coming shows, especially the ones taking place in the “unique” venue of Riverfront Park.

“I’m just looking forward to being with everyone in the summer,” Schofield said. “The talent we’re bringing in is the best we’ve ever had.”

Schofield said that Lord Huron has sold the most tickets so far, but he expects that each show will be a hit. The series spans a wide range of genres, as well, he said.

“They’re all big and unique in their own way,” he said. “They complement one another and have never been in this market before. That’s what’s so awesome.”

The Englewood will host concerts by artists such as Cordovas, Steve Forbert and The New Renditions, Tractor Jerry and the Mud Bucket, and The Minks, as well as a comedy show by Zane Lamprey.

HU Presents will feature Courtney Barnett, The James Hunter Six and Barns Courtney at XL Live. King Yellowman, Helmet, Jackyl and Ani Defranco will also perform at the venue this summer.

Harrisburg Midtown Arts Center is also jam-packed with events for the season. They will hold everything from concerts, such as Lilac, Jimmie Vaughan and Jeremy McComb, to drag brunches to comedy shows featuring cast member Creed Bratton from “The Office.”

For Harrisburg University Presents concert dates and tickets, visit their website.

The Englewood is located at 1219 Research Blvd., Hummelstown. To view their lineup of events, visit their website.

Harrisburg Midtown Arts Center is located at 1110 N. 3rd St., Harrisburg. For more information, visit their website. 

XL Live is located at 801 S. 10th St., Harrisburg. To see a list of shows and purchase tickets, visit their website.

 

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Millions awarded to former H*MAC owner, business partners in defamation suit

The front exterior of H*MAC in Midtown Harrisburg

A Dauphin County judge has ordered four defendants to pay millions of dollars to the former owners of H*MAC, ruling that they were defamed in online comments.

Last week, Judge John McNally awarded about $4.7 million in combined damages to former H*MAC co-owner John Traynor and the former controlling partnership of Bartlett, Traynor & London (BTL).

In his opinion, McNally agreed with the plaintiffs that the online news blog, YC News Network, and three individuals, Nikolaos Hatziefstathiou, Travis Wilber and Shawn Cooper, “acted with actual malice” and defamed both Traynor personally and the H*MAC partnership as an entity.

The three were responsible, McNally wrote, for online posts and a YC News blog that claimed a link between H*MAC, a 34,000-square-foot arts and dining venue in Midtown Harrisburg, and criminal allegations that later proved to be false.

“YC News Network, Shawn Cooper, Nikolaos Hatziefstathiou and Travis Wilber are liable for the damage BTL suffered,” McNally wrote in his opinion.

That damage, according to McNally’s opinion, included a loss in business, a devaluation of H*MAC’s real estate and problems booking performers due to a firestorm of bad publicity that followed the false claims.

McNally ordered the defendants to pay nearly $3.2 million in compensatory damages for actual losses incurred by H*MAC and $1.2 million to Traynor for “loss of investment” in H*MAC.

Furthermore, McNally awarded Traynor $250,000 for “damage to his reputation” and ordered each defendant to pay $25,000 in punitive damages.

He also ordered the defendants to remove two stories from YC News Network.

“Let this case be a cautionary tale—you can indeed be held liable for lying and posting false information on social media,” Traynor said. “It’s also an example of what sort of harm that social media can do to a business.”

In July 2018, Philadelphia-based YC News published a story alleging criminal conduct at H*MAC, under the headline, “Harrisburg club under fire after women allege security helped men who drugged and raped them.”

That story followed an allegation by a woman who claimed that H*MAC staff failed to recognize her as a victim of date rape drugs and asked her to exit the bar, leaving her vulnerable to a subsequent sexual assault. Harrisburg police later cleared H*MAC of any responsibility in the case.

Following the woman’s claim, unproven, and ultimately, defamatory allegations against H*MAC were posted on several social media sites, some of which included the YC News story.

That December, Traynor and H*MAC filed a civil lawsuit against more than a dozen people, claiming defamation and tortious interference of business relationships.

Most of the defendants since settled with the plaintiffs, which included retracting their comments and writing letters of apology, according to Traynor. The woman who made the original rape allegation also retracted her claim that implicated H*MAC.

In September 2018, H*MAC filed for Chapter 11 bankruptcy and later sold the sprawling venue for $6 million to a new partnership. Following an extended pandemic-related shutdown, H*MAC recently began to book a full schedule of music and entertainment and is reopening its restaurant this week under a new concept with a menu based on barbecue and soul food dishes.

“The malicious way we were targeted was just awful,” Traynor said. “I’m glad that we can move on and move past it.”

Correction: A previous version of this story stated that Nikolaos Hatziefstathiou, Travis Wilber and Shawn Cooper were employees of YC News. Nikolaos Hatziefstathiou and Shawn Cooper were employees of YC News, but Travis Wilber was not. 

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August News Digest

Harrisburg Changes Funds Process

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

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

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

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

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

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

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

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

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

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

Other CDBG allotments included:

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

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

 

Residents Criticize Proposed Water System Sale

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

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

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

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

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

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

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

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

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

 

 

Stop Sign Removals Cause Concern

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

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

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

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

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

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

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

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

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

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

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

  

 

HMAC Plans Improvements

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

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

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

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

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

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

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

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

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

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

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

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

  

 

Broad Street Market Seeks “Friends”

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

If so, Josh Heilman wants to hear from you.

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

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

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

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

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

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

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

 

Sales Data Mixed

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

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

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

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

 

So Noted

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

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

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

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

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

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

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

 

 

Changing Hands

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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The Week that Was: News and features around Harrisburg

A trio of newly built houses on Swatara Street.

The past week has been packed with breaking news and feature stories. If you missed any, you’ve come to the right place.

Art Association of Harrisburg opened its latest exhibit, “Energized,” last weekend. Find our what TheBurg’s art columnist had to say about this eclectic assembly of artists.

Broad Street Market was named a “Great Public Space” by the PA chapter of the American Planning Association. Harrisburg’s historic market was only one of three places statewide to receive the honor. Click here for the story.

GreenWorks Development is the recipient of a $2 million state redevelopment grant, which will go towards a major proposed apartment and commercial project in Midtown Harrisburg. The National Civil War Museum and Tri-County Housing Development Corp. also received grants. Find out the details here.

Guglielmo Botter, an Italian-American artist, has returned to central PA to exhibit his illustrations of local landmarks. This time, he’s focused on Lancaster, with a show at the Visitor’s Center.

Habitat for Humanity and Tri-County HDC unveiled three new houses on Swatara Street that resulted from a “building blitz” last summer. The affordable houses are now on the market for sale. Read all the details here.

Harrisburg Midtown Arts Center (H*MAC) unveiled the details of its next phase of construction, which will add a dance club and other amenities to the mixed-used venue. H*MAC also plans to change up and rebrand its restaurant. Click here for all the details.

Harrisburg’s music scene is hot for the summertime. Read the recommendations for this month from TheBurg’s music columnist.

Jelani Splawn is young photographer with a lens focused on the urban environment. Find out what he’s eyeing in our feature story.

Nikolaos Hatziefstathiou has been arrested in Delaware County on multiple charges due to alleged “fake news” schemes, according to the county district attorney. Hatziefstathiou is a key defendant in a defamation suit filed by the previous owners of the Harrisburg Midtown Arts Center. Click here for the story.

R.O. Kwon drops into Harrisburg this weekend for a reading and some conversation at Midtown Scholar Bookstore. Learn about this acclaimed writer and her debut novel, “The Incendiaries.”

Sara Bozich has all your leads for a fun summer weekend. Find out what’s going on around town.

Susquehanna Art Museum will help turn a Subaru into a Picasso this weekend, with a public painting event. A Midtown Harrisburg couple generously donated the car/canvas. Read the painterly details.

TheBurg dropped our August issue, which is focused on youth and education in our area. If you ever had doubts about the next generation, you’ll want to pick up a copy or read a few stories online.

Urban Snob has rebooted, so to speak, reopening its boutique with a new look and business model. Read what the Midtown shop has in store.

Vintage Vault held the grand opening of its newest store in downtown New Cumberland. This shop is focused on mid-century pieces for all your “Mad Men” décor needs. Check out the offerings here.

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Defendant in H*MAC defamation suit arrested in alleged fake news scheme

The Harrisburg Midtown Arts Center

The subject of a defamation lawsuit filed by a Midtown Harrisburg business has been arrested in Delaware County in a bizarre case that involves allegedly impersonating professional journalists and sending racist emails in order to create a fake news narrative.

Delaware County District Attorney Katayoun Copeland last week announced the arrest of 25-year-old Nikolaos Hatziefstathiou, charging him with some 20 criminal counts, alleging that he assumed the identities of a “Good Morning America” producer and a New York Times reporter to obtain documents and that he falsified a government document to create racist email.

“Evidence shows that Nikolaos Hatziefstathiou will use any means to create his false narrative,” Copeland said during a press conference. “He will go to any length to do so, trading on the well-earned reputations of a national television producer and a print correspondent, forging government documents, paying to obtain statements from celebrities to create a story for his website and concocting a racially charged email.”

Locally, Hatziefstathiou is a principal defendant in a defamation suit filed in December by John Traynor, the former co-owner of the Harrisburg Midtown Arts Center (H*MAC), and his former company, Bartlett, Traynor & London LLC.

Hatziefstathiou runs Philadelphia-based YC News, which, in July 2018, published a story alleging criminal conduct at H*MAC, under the headline, “Harrisburg club under fire after women allege security helped men who drugged and raped them.”

That story followed an allegation by a woman who claimed that H*MAC staff failed to recognize her as a victim of date rape drugs and asked her to exit the bar, leaving her vulnerable to a subsequent sexual assault. Harrisburg police later cleared H*MAC of any responsibility in the case.

Following the woman’s allegations, several social media sites erupted in charges against H*MAC and some re-posted the YC News story. According to Traynor, the negative publicity led to substantial loss of business and was partly responsible for H*MAC declaring Chapter 11 bankruptcy shortly afterwards.

In December, Traynor filed a civil lawsuit against Hatziefstathiou and more than a dozen others, claiming defamation and tortious interference of business relationships.

“We went after YC News, the people who wrote the stories and the people who posted them on social media,” Traynor said, when reached by phone. “At a certain point, you have to stand up.”

Since then, a Dauphin County judge has issued a default judgment against YC News and Hatziefstathiou, who did not respond to the lawsuit. Damages have not yet been awarded but Traynor said that, in all, he expects total damages against all the defendants to exceed $1 million, adding that he doubts he’ll ever see any payment.

“It was never about the money,” he said. “I never expect to be able to collect.”

In the Delaware County case, district attorney Copeland said that Hatziefstathiou allegedly constructed an elaborate fake news narrative to create content for his YC News website. These alleged measures, according to Copeland, included:

  • Posing as a “Good Morning America” producer and New York Times reporter using false emails to obtain documents relating to an unidentified “decade-long scheme” involving several “Delaware County agencies.”
  • Forging government documents to obtain a PennDOT specialty plate identifying him as being employed full-time by a news agency.
  • Falsifying a government document to create a racist email claiming to be from a supervisor in the Delaware County Adult Probation and Parole Office, leading several politicians to condemn the office based on the YC News report.
  • Tampering with a video purchased online that made it seem that YC News had interviewed actors Ice-T and Snoop Dogg and that they endorsed YC News efforts regarding a case from the Delaware County D.A.’s office.

According to Copeland, Hatziefstathiou created the racist email by allegedly doctoring a legitimate email he had received from the probation office because he was on probation for past violations including several counts of false reports to law enforcement and harassment.

“Creating an article full of lies, Nikolaos Hatziefstathiou attempted to destroy the reputation of hard-working people who come to this courthouse every day to serve their community,” Copeland said. “Hatziefstathiou chose to falsely attribute horrific, racial slurs to good, hard-working probation officers, exploiting the real pain that minorities face every day, all in an effort to create racial discord.”

In late May, Traynor and his two business partners sold H*MAC to a new ownership group for $6 million. That group, H*MAC Venue LLC, yesterday announced a series of changes and construction projects to the 34,000-square-foot entertainment, arts and restaurant venue.

Read related stories from WHYY and PhillyVoice.

 

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

Harrisburg Midtown Arts Center

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

A new ownership group is acquiring HMAC.

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

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

The sale is expected to close in early June.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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September News Digest

HMAC Files Chapter 11

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

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

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

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

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

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

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

 

Renovated Playgrounds Reopen

Summer break may be over, but playtime is just beginning in Harrisburg.

Mayor Eric Papenfuse last month cut the ribbon on the newly renovated Cloverly Heights Playground, one of four play areas that were recently revamped with new equipment and green infrastructure.

After being closed all summer, playgrounds at Cloverly Heights, Norwood and Holly streets, Penn and Sayford streets and Royal Terrace are opening to the public.

The four sites have been outfitted with all-new play amenities, and each one has unique features, Papenfuse said.

Three of the sites also have storm water management enhancements thanks to Capital Region Water.

“Our parks are the city’s greatest assets,” Papenfuse said. “I’m glad we’re bringing all of our playgrounds up to the level that our community would like to see.”

The city will complete renovations at a fifth playground, at 4th and Dauphin streets, next year.

The citywide playground renovations were part of a $2 million partnership among Harrisburg, Capital Region Water, Impact Harrisburg, the state Department of Conservation and Natural Resources and the state Department of Community and Economic Development.

The ribbon cutting represented the culmination of a project three years in the making. The five playground sites were first targeted for renovations in 2015, but renovations stalled while the city pursued funding and collected public input.

 

Another Purchase for Harristown

A downtown Harrisburg building project has changed significantly, as a developer now has plans to purchase and renovate the building next door.

Harristown Enterprises expects to close this fall on the purchase of 17 S. Market Sq., currently the home of the SkarlatosZonarich law firm, said Harristown CEO Brad Jones. A full renovation of the century-old, 33,809-square-foot building will follow.

“We’re still evaluating the uses of that building,” Jones said. “We think it’s going to become a mixed-used project.”

Last year, Harristown bought the neighboring building, a small, dilapidated, early 19th-century office and retail building at 21 S. 2nd St., which notably once housed the Coronet restaurant.

It razed that building, with expectations to construct a new office building and attach it internally to the SkarlatosZonarich property. However, according to Jones, the plan changed after continuing discussions with the law firm.

“As we began to talk more, they indicated they were more interested in selling the building,” Jones said.

As a result, SkarlatosZonarich now will sell their Market Square building to Harristown and relocate to the Bowman Tower in Strawberry Square, which is also owned by Harristown.

In January, the firm’s 35 employees will move into about 11,000 square feet of office space, about double their current footprint, following a $1 million renovation, Jones said. After the relocation, Strawberry Square will have an office vacancy rate of only about 5 percent, he said.

Jones said that plans are still in flux for the redevelopment project at Market Square, but he expects a mixed use of residential, office and retail, with residential more likely for 17 S. Market Sq. and office more likely for 21 S. 2nd St.

 

Parker Departs City

A senior Harrisburg official left her post last month to work in the private sector.

Jackie Parker, who has headed the city’s Department of Community and Economic Development (DCED) since 2014, left her position to take a job with a medical marijuana company, she told TheBurg.

Parker joined the city administration when Mayor Eric Papenfuse took office in 2014. She previously served as the mayor of Lebanon, Pa., and as deputy secretary of the Pennsylvania Department of Community and Economic Development.

As the city’s DCED director, Parker was the point person for economic development projects, Papenfuse said. She managed employees in the bureaus of housing, planning, business development and parks and recreation.

Papenfuse said today that he does not plan to replace Parker. The mayor announced a city hall hiring freeze in June, but he also hopes to reorganize DCED in the wake of Parker’s departure.

He expects to prepare a reorganization plan ahead of his 2019 budget presentation in November.

“She’s been a wonderful, committed leader for the city,” Papenfuse said. “I think she’s irreplaceable.”

 

Trash Billing Proposal Revived

Unpaid trash fees are costing Harrisburg an average of $200,000 a month—a problem that city Treasurer Dan Miller thinks can be fixed by billing residents once a year for disposal services.

Miller proposed an annual trash billing structure earlier this year as part of an overhaul of Harrisburg’s sanitation laws. But City Council nixed the measure, saying it would stress the cash flow of low-income and fixed-income residents.

The city currently bills residents $32 a month for trash collection. It also has a monopoly on commercial accounts in the city.

Miller appeared before council last month to renew the case for annual billing. He’s proposing that Harrisburg include a line item for trash fees on every property’s annual real estate tax bill, which is mailed out in January. The trash collection fee would be subject to the same 2 percent, 60-day discount period as the real estate tax.

The city currently has a 98-percent collection rate on its real estate taxes. Miller hopes that trash fee collections would increase by streamlining the two bills into one. It would also save an estimated $100,000 a year in mailing costs.

Collecting up-front payments is key, Miller said, since the treasurer’s office doesn’t have many means to pursue delinquent accounts.

According to Miller, Harrisburg lost enforcement authority over delinquent trash bills when it restructured under the Harrisburg Strong Plan, the financial recovery plan it adopted in 2013.

Before the Strong Plan, Harrisburg had an in-house collections arm in its Operations Revenue Department (ORD). When the department could not collect bills from delinquent accounts, it could turn off the water at those properties to spur a payment.

But the Strong Plan dissolved the ORD and transferred Harrisburg’s water assets to Capital Region Water. As a result, the city lost the ability to terminate water services at delinquent properties.

“People discovered that, if they didn’t pay their bill, their trash was still collected and nothing else happened,” Miller said. “Maybe their bill went up [from interest], but nobody was doing anything about it.”

 

So Noted

Knead Bar Pies opened last month inside of Zeroday Brewing Co., 250 Reily St., Harrisburg. This is the second location for Knead, which also has a stand in the Broad Street Market, serving a different style of pizza. Pending approval of a liquor license transfer, Knead is planning a third location, Knead Slice Shop, at N. 3rd and Boas streets, a storefront long occupied by Mercado’s Pizzeria.

Paxton Ministries
and Monarch Development Group last month broke ground on Paxton Place, an affordable senior housing development at 1100 S. 20th St., Harrisburg. The $8.6 million development, featuring a 37-unit apartment building, should be completed in fall 2019.

Penn State Health last month appointed Deborah A. Berini as president of the Milton S. Hershey Medical Center. Berini most recently served as chief operating officer at the University of Texas Medical Branch Health System. She replaces Alan Brechbill, who has assumed the role of executive vice president for hospital operations for Penn State Health.

Salvation Army of Harrisburg last month broke ground on it new regional headquarters located at S. 29th Street and Rudy Road. When complete, the 39,000-square-foot facility will house the Salvation Army’s education and human services programs, which reach more than 18,000 adults and children in Dauphin, Perry and Cumberland counties.

Stash Vintage and The Midtown Dandy are teaming up to open a vintage clothing store in downtown Harrisburg, they announced last month. The two retailers will move into the storefront at 11 S. 3rd St. later this fall once improvements are made to the space, which is owned by Harristown Enterprises.

 

Changing Hands

Allison St., 1506: S. Maurer to J. Davison, $71,000

Boas St., 213: B. Wagner to L. & S. Godinez, $105,900

Brookwood St., 2466: Carrodo LLC to PA Deals LLC, $45,000

Conoy St., 110: M. & S. McLees to H. Peyrot, $153,000

Crescent St., 332½: Dynaspek Holdings LLC to K. Stoute, $50,000

Croyden Rd., 2981: J. Arvelo to Leonard J. Dobson Family Limited Partnership, $30,401

Cumberland St., 113: J. Townsend to J. Calla, $173,000

Derry St., 1603½: S. Vielle to R. Garcia, $37,000

Emerald St., 219: D Jay Investments LLC to M. Goldthwait, $31,600

Fulton St., 1713: A. Beck to M. Fagan, $125,000

Graham St., 310: N. Lindemyer to V. Arrington, $99,000

Green St., 1704: B. & C. Hansen to Z. Houseal, $209,900

Green St., 1914: L. Copus to K. Bogard, $194,900

Green St., 2316: Skye Holdings LLC to U&N Properties, $35,000

Holly St., 1844: V. Rivas to F. Eras, $40,000

Hunter St., 1610: M. Toro to P. Anandan, $44,000

Kensington St., 2044: PTSH Properties LLC to K. Cardona, $33,500

Kensington St., 2225: D. & S. Fenton and Harrisburg Property Management Group to F. Sisic, $54,000

Lewis St., 210: B. & C. Zandieh to T. Keller, $67,000

Logan St., 2329: I. Mirambeaux to D. Reyes-Martinez, $35,000

Maclay St., 332: JTA Consulting Group LLC to D. Jolley, $70,000

Market St., 2018: US Bank NA Trustee & Ocwen Loan Servicing LLC to C. Ovalles, $40,767

North St., 214: A. Lawson to J. Hunt & K. Lambert, $129,000

Norwood St., 920: J. & R. Lowery to J. Arocho, $91,180

N. 2nd St., 901 & 903: W. & J. Hobbie to WG PA Holdings LLC & B. Golper, $365,000

N. 2nd St., 909: C. Simmons to C. Adam, $165,000

N. 2nd St., 1223: B. Jones to A. Holt & S. Hayes, $153,000

N. 2nd St., 2425: S. & M. Hwang to A. Waltz, $168,000

N. 2nd St., 3008: H. & K. Bey to S. & R. Bogash, $234,900

N. 2nd St., 3209: Benchmarq Holdings LLC to H. & L. Robinson, $109,900

N. 3rd St., 1628: C. Frater to Heinly Homes LLC, $100,000

N. 3rd St., 1640: V. Jenkins to Heinly Homes LLC, $76,500

N. 3rd St., 1806: HBG Rents LLC to C. Shokes, $242,000

N. 3rd St., 3020: D. Porter to PA Deals LLC, $32,000

N. 4th St., 2410: PA Deals LLC to K. Moulds, $70,000

N. 5th St., 2251: K. Rolston to B. Kerstetter, $210,000

N. 5th St., 3118: Federal Home Loan Mortgage Corp. to Willowscott Investments LLC, $34,000

N. 5th St., 3132: K. Hall to Willowscott Investments LLC, $62,000

N. 6th St., 2947: Deutsche Bank National Trust Co. Trustee to D. Wenger, $61,425

N. 6th St., 2987: C. De la Riva to E. & P. Grier, $125,000

N. 6th St., 3151: A. Banks to E. Crawford, $69,900

N. 14th St., 1116: Just Sold Another One LLC to Gator Management Group LLC, $31,000

N. 16th St., 1326, 1328: W. Washington to F. Johnson, $95,000

N. Front St., 1525, Unit 212: D. Taylor to R. Viti & T. Luckenbaugh, $149,550

N. Front St., 1525, Unit 510: M. & L. Paszak to H. Evren & M. Saygin, $99,900

N. Front St., 2833: N. & P. West to A. & G. Shahbaz, $289,000

N. Front St., 3207: Remus Real Estate to 3207 N. Front St LLC, $390,000

Parkway Blvd., 2513: A. Maiga to A. Buglione, $30,000

Penn St., 1508: M. Parmer to C. Bury, $137,900

Penn St., 1608: R. Viti & T. Luckenbaugh to D. Hooker & B. Lister, $165,000

Penn St., 2117: JLP Holdings LLC to Wells Fargo Bank NA, $34,518

Penn St., 2233: J. Thomas to T. & R. Kenney, $109,900

Radnor St., 249: Federal Home Loan Mortgage Corp. to M. Chappelle, $115,620

Rudy Rd., 2339: Good Deal Properties LLC to W. MacMichael, $39,500

Rumson Dr., 2786: J. & K. Cabezas to PA Deals LLC, $40,000

S. 13th St., 435: SWM Properties LLC to F. & P. Harden, $70,000

S. 13th St., 1496: A. Roberts to DPM Development LLC, $41,500

S. 14th St., 1402: D. & E. Stanton to City of Harrisburg, $41,000

S. 14th St., 1431: R. Epps to City of Harrisburg, $57,000

S. 14th St., 1434: W. Collins to City of Harrisburg, $45,000

S. 14th St., 1456: G. Bullock & L. Gratkowski to City Harrisburg, $56,000

S. 16th St., 17: D. Springer to W. Cherelus, $33,000

S. 18th St., 1319: K. Shemory to J. Nguyen & T. Pham, $100,000

S. 27th St., 634: S. Moore to D. Mateo, $50,000

S. 27th St., 731: S. & M. Pandolfi to P. Menanga & J. Bidjeke, $135,000

S. Front St., 557: K. Stennett to K. Tatum, $128,000

State St., 1717: A. & R. Sharp to M. Demonda, $130,000

State St., 1823: C. & N. Bickel to M. Butler, $69,917

Susquenhanna St., 1730: Signature Rehab Services LLC to G. Harris, $111,200

Swatara St., 1905: H. Abukaffaya to A. Grove-Erazo, $37,000

Vine St., 119: W. Zutell to Wild Patch LLC, $80,000

Walnut St., 104: C. Hinson to MIV Properties LLC, $85,000

Walnut St., 1854-1860: T. Van, H. Van & T. Vo to H. Van, $85,000

Woodbine St., 236: M. Elganzoory to Lambar LLC, $34,000

Wyeth St., 1409: D. & M. Myers to H. Swanson, $117,000

 

Harrisburg property sales for August 2018, greater than $30,000. Source: Dauphin County. Data is assumed to be accurate.

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

The House of Music, Arts & Culture in Midtown Harrisburg

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

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

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

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

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

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

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

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

Crimes and Consequences

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

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

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

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

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

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

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

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

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

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

John Traynor, inside HMAC, from December 2017

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

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

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

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

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

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

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

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

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

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

Not Going Away

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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