Tag Archives: Harrisburg Zoning Hearing Board

A Beer & a Dream: Brandalynn and Theo Armstrong had a vision for a brewery in Midtown Harrisburg. With the help of the community, it’s come true.

Screenshot 2015-03-30 01.29.57Brandalynn Armstrong sits on a high-backed bar chair and surveys the room with her eyes.

She motions to the orange-painted walls, to the space where local artists will display their works, to the windows into the brewhouse.

This was her dream.

This was the dream that she and her husband Theo spoke of nearly two years earlier when they first went public with their hope to open a microbrewery in Harrisburg.

“It will happen,” Brandalynn wrote in a Facebook post after a story entitled “Beer Ambition” appeared in TheBurg.

And, now, incredibly, it has.

This month, Zeroday Brewing Co. will open its doors, and the first thirsty, curious customers will stream in, ready to sample Theo’s artisanal quaffs, from blondes to stouts.

They will gather at the bar made of salvaged corrugated metal from a 100-year-old Perry County barn. They will sit at a counter ledge carved from locally sourced, reclaimed wood. They’ll huddle with friends at the dozen or so tables and high tops, maybe while enjoying a bite of charcuterie or listening to someone from the neighborhood play guitar.

Brandalynn pauses a moment, looks up at the roof timbers they uncovered after removing the drop ceiling; looks down at the freshly poured concrete floor.

“This building was just made for us,” she said.

Where We Left Them

From the beginning, the Armstrongs centered on Midtown Harrisburg as the home of their future brewery.

They liked the neighborhood feel of what they wanted to be a neighborhood place and the complement of nearby destinations like Midtown Scholar Bookstore, Midtown Cinema and the new Susquehanna Art Museum.

They first had their eyes on Midtown’s landmark “Carpets and Draperies” building on N. 3rd Street, but abandoned that plan after calculating the cost of transforming the large, dilapidated structure into usable space.

That disappointment, though, led directly to where they eventually landed. Surveying the outside of the building, waiting for their realtor to arrive, they were approached by Adam Porter, co-owner of St@rtup, the co-working outfit next door. Porter recognized them from TheBurg story, and they got to talking.

“I said, ‘Oh, you’re the brewery folks,’” Porter recollected. “I got their email and later found out that the building they were looking at wasn’t going to be a good fit for them.”

He then thought about the large, unused block of space down the street at the back of Midtown Cinema, where he serves as director of operations.

“I thought it would be a great complementary use for the Cinema,” Porter said.

Built as a grocery store, the squat, circa-1940 brick building long had been cut in two, the back half last serving as a plasma donation center. It had been empty for about 20 years.

“It wasn’t much to look at,” joked Brandalynn.

Indeed, floor and ceilings tiles were damaged and missing. Medical equipment had been left behind. The dust was thick, and debris was scattered everywhere.

But the Armstrongs liked the size and loved the location. They also got the strong backing of John Tierney and Matt Tunnell, principals of Lift Development LLC, which owns the building and the Cinema.

“After Adam introduced the Armstrongs, we saw what they were doing and that they already had a great following,” said Tunnell. “We thought they’d be a terrific addition to the Cinema and to Midtown.”

Cool Area

Brandalynn and Theo had found a place they wanted, but they now needed to find out if the community wanted them.

So, they set out to meet their potential neighbors and get their support before appearing before the city’s Zoning Hearing Board. Some people did object to the proposal, worried about potential traffic, noise and odors. Many others, though, supported the brewery, which strengthened their application for a zoning variance and, just as importantly, gave them assurance that they were welcomed.

“We never could have done this without the community’s support,” said Brandalynn.

The build-out began in August and was completed just a few months later. Licenses, permitting and equipment delivery, however, pushed the open date up several months. The Armstrongs were especially frustrated by the delay of a critical piece of equipment called a mash tun, which got hung up at a port in Seattle during the recent dockworkers strike.

The couple’s greatest disappointment, though, came last year, when they learned that they would have to abandon their original, beloved moniker, Alter Ego Brewing Co.

They had conducted a trademark search before settling on Alter Ego, but a subsequent, more thorough investigation revealed a potential conflict with another company. The Armstrongs didn’t want to run the risk of losing a trademark challenge down the road. So, for the long-term good of their business, they reluctantly changed the name of their brewery.

After brainstorming, they agreed to Zeroday Brewing, after the hiking term, “zero day,” which means a day when no miles are logged. It was a nod to the time that Theo hiked the Appalachian Trail and a statement of how they felt about their new home.

“You only take a zero day to explore a cool area,” said Brandalynn. “We feel that Harrisburg is a zero-day destination.”

Grain to Glass

When I met up with the couple in early March, the tasting room was complete. The tables were set up, the stools positioned, and the USB ports below the Corian bar counter had just been installed.

The 1,500-square-foot space comfortably holds 60 people, and the high ceilings and well-spaced tables give the room a relaxed, uncrowded feel. Brandalynn describes the décor as “man cave chic,” by which she means “manly with warm accents.” Though the intentional absence of that most essential part of the man cave—the TV—might belie that description.

On the other side of the wall, the brewhouse was nearly complete. The seven-barrel system was installed with the exception of the 25-foot exhaust stack, which was erected in the midst of a snowstorm several days later and now towers above the building.

They had even received their first shipments of barley, which sat in piles of large, heavy bags, just waiting for Theo to start the process of milling, mashing, fermenting, kegging, tapping and pouring.

“It is literally 20 feet from grain to glass here,” he said.

On a nearby pallet, two-pint cans called crowlers (can-plus-growler) were stacked, ready for take-out, a perfect portable vessel for movie patrons who want to enjoy a beverage while in the theater.

A few weeks before opening, Zeroday somewhat resembled an empty movie set itself—built out, but just waiting for the action to begin. Behind the scenes, though, the Armstrongs had been attending to a hundred last-minute details, and the mad dash to the final approvals clearly had taken a toll.

“I’m exhausted; Theo’s exhausted,” said Brandalynn. “But, when we push that first pint of beer across the counter, it will be worth it.”

Two years ago, when we first met the Armstrongs, they had a goal to build a business and share their beer with the world. Since then, their mission had grown.

They still wanted to make excellent beer, but they also hoped their brewery would be a credit to the people of Harrisburg, that it would serve the needs of the community and bring in outsiders—“beer tourists”—who might not venture into Midtown otherwise. The newcomers then would be able to experience the charming, historic neighborhood and the destination that it’s rapidly becoming.

“We always say that Midtown made this happen,” said Brandalynn. “It’s taken a community to make this work, and we don’t want to let them down.”

 

Zeroday Brewing Co. is located at the rear of 250 Reily St., Harrisburg. The grand opening is slated for April 8. For all the information, go to www.zerodaybrewing.com or visit their Facebook page.

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Spirited Arrival: Distillery Set to Open in Harrisburg

Distillery2Web

Midstate Distillery is slated to open in the summer in this building on Harrisburg’s Cameron Street.

Lovers of small-batch, locally produced spirits, raise a glass—it looks like Harrisburg will get its first craft distillery after all.

For more than a year, business partners Dan Healy and Brian Myers have been quietly creating a distillery inside the former Smith Paint Building at 1817 N. Cameron St, a couple of blocks south of the state Farm Show Complex. If all goes according to plan, the pair expects to open Midstate Distillery this summer.

“We want to make a product that the people of the greater Harrisburg area will embrace,” said Healy, 32, a Camp Hill resident.

Healy and Myers, 42, bought the building in December 2013 and have been hard at work since transforming the dilapidated, 7,000-square-foot space into a modern distillery and tasting room. They plan to manufacture rum, vodka and moonshine at first, then gin and whiskey.

Healy said they originated the concept two years ago after leaving another manufacturing company co-owned by Myers.

“We left and brainstormed what to do next,” he said. “We had considered brewing, but thought that market seemed more saturated.”

They began touring micro-distilleries, taking distilling classes, working on their business plan and searching for a site. They decided on Cameron Street because of the central location, the proximity to the Farm Show Complex and the existing industrial zone, which allows distilleries to operate by right.

In addition, the building was already fitted with an extensive sprinkler system, which is essential given the potentially volatile process of manufacturing spirits.

This is the second micro-distillery proposed for Harrisburg in recent months. In December, city residents Alan Kennedy-Shaffer and Stanley Gruen attempted to locate a distillery in the historic “Carpets and Draperies” building in Midtown Harrisburg, a location that required a zoning variance. Following a contentious meeting, the city’s Zoning Hearing Board denied their application.

Healy said Midstate Distillery will produce about 20 cases of liquor a week to start, with the ability to ramp up as demand increases. They will serve drinks by the glass, as well as sell bottles, and also would like to distribute to bars in the area. There are no plans to serve food, though they are open to partnering with food vendors.

Healy and Myers hope to open in July, though the timing will depend upon receipt of their state distillery license. They’ve already received their federal Distilled Spirits Permit. They also must complete the interior renovation, which they’re mostly doing themselves.

“The building has required a lot of TLC,” said Healy.

When Midstate Distillery opens, it will be the first distillery in Harrisburg in many decades, perhaps since Prohibition. In recent years, craft distilleries have opened in cities across Pennsylvania, such as Old Republic in York and Thistle Finch in Lancaster.

“We’re very excited,” said Healy. “But we’re also a little nervous because we still have a lot of work ahead of us before we can open.”

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Judgment Call: Before condemning Harrisburg, opinion-writers might want to pick up the phone.

Screenshot 2015-01-27 23.42.27

In case you missed it, I took a month off from my publisher’s column to start 2015, in favor of Paul Barker’s excellent analysis of the research skills that are a necessary part of honest and engaged journalism. Apparently, though, local media took little notice of Paul’s story.

Instead, our area’s largest paper started off 2015 where it left off in 2014—with a continued assault on all things Harrisburg, this time with claims about a supposed negative business climate.

In an editorial, PennLive’s opinion-writers attempted to link three unrelated decisions, two of which took place at least two years apart and one that has been under discussion for decades. The first, Harrisburg City Council’s refusal to sell the Keystone Products building on Cameron Street to Appalachian Brewing Co. (ABC) for $1, took place in 2012 under the Thompson administration.

The second was the Harrisburg Zoning Hearing Board’s December 2014 refusal to grant a variance to a proposed distillery in Midtown. (See Larry Binda’s Jan. 7 blog post at www.theburgnews.com.)

The final knock was directed at Mayor Papenfuse and the fulfillment of his campaign promise to update the city zoning code. The zoning code update had, in fact, been in process for decades under three administrations and countless reviews.

From these unrelated stories, the writers concluded that Harrisburg was hostile to entrepreneurship and that somehow Mayor Papenfuse and other city officials were to blame. This argument struck me as contrary to my observations and experience over the past year. So, taking Paul’s advice, I did a bit of research and called the affected parties.

First, I spoke to Adam Meinstein who owns Transit Park on the site of the old U.S. Post Office. Adam said he is “thrilled” with his investment in Harrisburg, has more than 450 daily users of his “low-cost” commuter lot (mostly Amtrak commuters) and is expanding capacity to nearly 900 spots, some of which will be under cover. In addition, he has active interest from commercial/industrial tenants for the renovated building on his site. His initial concern with the new zoning code involved a technical matter that his current use is permitted as a “pre-existing condition” and not as a “right” under the code that could theoretically impact value down the road. Nonetheless, the code does not impede his current business, his plans for further investment or his enthusiasm for his first time doing business in our city.

Next, I spoke to Alan Kennedy-Shaffer about his plans for a distillery. Not unexpectedly, Alan and his partner were not pleased with the zoning board’s decision, but Alan said that he remains personally “as committed as ever” to Harrisburg. Knowing Alan’s commitment to the city, my guess is that he will keep working hard on his plans and try to come back again at another city location.

I also spoke to a member of the zoning board who confirmed Larry’s reporting that—far from a rash rejection of the distillery—the board (made up of citizen volunteers) stressed their duty for a thorough review to make sure that the plans comply with the law. They encouraged the pair to re-submit their plans with additional detail with the hope for an eventual approval at the proposed site or another.

Finally, the 2012 ABC issue revolved around the value of a parcel of real estate. Regardless of past decisions by former government officials, the Papenfuse administration confirmed to me that it is now willing to sell the property for $1. City economic development officials and the mayor also told me that they are in active discussions with ABC about jointly seeking outside grants for the necessary site work and expanding their brewing operations, something that would create “scores of jobs” if successful.

I find it ridiculous to pin a two-year-old decision on the new mayor or new council. Moreover, editorial writers should realize that a business that starts in the city and then expands to the suburbs (like ABC) is not a sign of city weakness, but can be (and in this case is) the sign of a strong brand being built here and then taken on the road to greater heights for the mutual benefit of both.

There are many other signs of robust entrepreneurial spirit throughout the city.

Just to the north of ABC at Cameron and Herr streets, Moran Industries stepped in last year to buy a building on a formerly failed development site. Moran is now investing millions to finish the building and grounds, turning a former eyesore into a handsome new operating complex for its trucking and logistics business.

Likewise, since the Papenfuse administration took office last January, there are at least five new restaurants representing several million dollars in total new investment throughout the city (underscoring also that the new parking rates have had little impact in the decision-making of new restaurant openings).

One of these is Josh Kesler’s complete renovation of the long-vacant Millworks building across from the Broad Street Market. Josh told me that the Millworks will house 23 artist workspaces, a new indoor/outdoor beer garden and farm-to-table restaurant when it opens in early March.

Several other new businesses with good paying jobs, such as WebpageFX, have moved their employees into the city. Co-owner Bill Craig said that his move to the city has greatly helped with recruiting. He said he’s received about 500 more applications for his rapidly growing company, up 20 percent from the year before.

“We grew 50 percent last year, so finding technical marketing talent is one of our keys to maintaining our current growth trajectory,” Craig told me. “Many of the applicants are from other cities and from outside of central PA, which we would not have received if we didn’t move to Harrisburg.”

The company has grown tremendously since its move just 11 months ago, and the 70-plus employees “love the city,” Craig said.

Demand for apartments and condos is also rising. Brickbox opened its new for-sale condos at LUX (3rd and State streets) and is more than half sold out. WCI Partners (where I am a partner) has noticed increased demand for apartments and townhomes and a new willingness on the part of many people to “give the city another try” after moving out during the Thompson administration, in the words of several of our new residents.

Much more remains to be done, and a half-century of population decline will not be reversed quickly or without great effort or smart policies that encourage investment. However, this renewed enthusiasm points to business confidence in the Papenfuse administration.

A modest suggestion for those who get paid to give opinion about the city would be to actually talk to business owners before writing about city business. It may just give pause enough before reflexively propagating inaccuracies about our little city from across the river.

J. Alex Hartzler is publisher of TheBurg.

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January News Digest

LERTA Hung Up

The Harrisburg City Council last month quashed an effort to revive a city tax abatement proposal, the second time in a month the administration failed to pass this economic development initiative.

At council’s first legislative session of the year, Councilman Jeffrey Baltimore tried to bring the bill forward for reconsideration, but his effort failed after a split council denied the motion.

The Papenfuse administration had hoped to pass a 10-year abatement for residential properties in the city under the Local Economic Revitalization Tax Assistance (LERTA) program. Under this bill, owners would not be taxed on the value of their property improvements for a full 10 years.

Two weeks earlier, Councilman Brad Koplinski successfully forced the proposal onto the council’s agenda over the objection of council President Wanda Williams. Council then tacked on 10 separate amendments to the Papenfuse administration’s original bill.

The administration balked at some of those amendments, particularly those that would make the LERTA graduated, so that the tax burden on property improvements would increase by 10 percent each year over 10 years.

After the bill was amended, the administration asked that it be withdrawn, citing a need to conduct a legal review.

By January, Koplinski appeared to have changed his position on the proposal, casting one of the three votes, along with Williams and Councilwoman Shamaine Daniels, which defeated the motion to reconsider the bill.

Mayor Eric Papenfuse vowed to try again to pass his proposal, which he regards as essential to revitalizing the city, which is full of vacant land and dilapidated buildings. If the council does pass a tax abatement bill, it also would have to be approved by Dauphin County and the Harrisburg school board.

 

Budget Shows Surplus

Harrisburg ended last year with a $5.3 million budget surplus, which it has carried over into 2015.

Finance Director Bruce Weber credited the surprise surplus to an administration directive that city departments spend less than they were authorized to spend. In addition to the surplus, the city paid down nearly all of the $4 million in outstanding 2013 payables that it inherited from the previous administration.

Moreover, the city met all its general obligation bond payments for the first time in three years.

In late December, the City Council approved a balanced 2015 municipal budget that did not raise property taxes but added several key positions. Fourteen more public safety personnel were funded under the $59.4 million budget, which also included a $2 million investment in the city’s sanitation program.

The 2015 budget also included hundreds of thousands of dollars in discretionary departmental accounts, which previously had been kept off-book. They were brought into the regular budget process for the first time in many years.

 

City Weighs TRAN

Harrisburg City Council last month considered authorizing a $4.5 million tax and revenue anticipation note (TRAN).

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.

Three lenders bid on the city’s request for a TRAN, according to the Papenfuse administration. The TRAN is expected to cost the city a $1,500 legal fee and 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.

 

Distillery Rejected

The Harrisburg Zoning Hearing Board has rejected a proposal by two city residents to build a distillery in the heart of Midtown Harrisburg.

The board unanimously denied a variance to Alan Kennedy-Shaffer and Stanley Gruen, who wanted to locate a micro-distillery, Kennedy Spirits LLC, in the historic “Carpets and Draperies” building at 1507 N. 3rd St.

After two hearings, the board was unsatisfied with the evidence presented for the variance, which is needed because the area is not zoned for this use. The board urged the applicants to return with additional witnesses who could speak on behalf of their project at its next meeting this month.

The applicants, however, said a delay would jeopardize their financing. When asked if they wanted to continue the case to the February meeting, the applicants did not respond, and the board voted down the variance request.

 

Solicitors Confirmed

Harrisburg’s understaffed legal department received a boost last month, as City Council confirmed two new hires.

City Council unanimously approved the appointment of Douglas L. Walmer as deputy city solicitor and Marta Rifin as assistant city solicitor.

Walmer has worked for the city in an acting capacity since July and Rifin since August. They report to city Solicitor Neil Grover.

 

Equipment Purchased

Harrisburg last month acquired several pieces of heavy equipment to assist with sanitation and firefighting.

City Council approved the purchase of a used 2005 International Recycling Truck from the Borough of Shippensburg, Pa., for $15,400. The truck will assist in the city’s recycling program.

Council also directed the administration to purchase a used 2001 International Rear Loader Trash Truck from the Borough of Conshohocken, Pa., for $22,500. This truck will be deployed for trash collection.

Finally, the city agreed to acquire a 1996 Sutphen Tower Truck from Union Grove, Ala.-based Brindlee Mountain Fire Apparatus in exchange for four used fire trucks and $38,000.

 

Changing Hands

Bellevue Rd., 2301: D. & D. Dwyer to J. & D. Schroeder, $139,000

Berryhill St., 2247: S. Burner to PA Deals LLC, $56,000

Berryhill St., 2247: PA Deals LLC to MidAtlantic IRA LLC, $62,000

Calder St., 270: C. Martin & D. Zimmerman to JLS Rentals LLC, $30,650

Derry St., 2423: J. Green to E. Gmys, $62,900

Fulton St., 1726: PA Deals LLC to R. & K. Lloyd, $104,900

Green St., 1918: M. Kirk to J. Leahan, $147,000

Green St., 1934: WCI Partners LP to B. & J. Lentes, $201,000

Harris St., 213: 8219 Ventures LLC to Braxley Property Management LLC, $60,000

Kensington St., 2143: B. Ramper et al to P. Luna, $65,000

Kensington St., 2302: J. & K. Flynn to X. Weng & C. Yang, $41,000

Kensington St., 2412: L. Batista to J. Na, $54,000

Midland Rd., 2406: R. & A. Kurtz to S. Peterson, $123,500

Muench St., 315: S. Jusufovic to K. Mullen & T. Hawbaker Jr., $76,000

N. 2nd St., 1110: W. Moyer to MC Investment Properties LLC, $117,000

N. 2nd St., 1805: Members 1st Federal Credit Union to T. Pham & T. Nguyen, $32,000

N. 2nd St., 2410: T. Keyes to C. Bennet, $133,000

N. 2nd St., 2417: R. Hunsicker to Z. & J. Kashatus, $125,000

N. 2nd St., 3106: C. Hawk to M. Kaschock & S. Bryant, $46,500

N. 2nd St., 3305: J. William to J. England, $96,500

N. 3rd St., 3015: A. Montalvo to M. St. Vil, $75,500

N. 5th St., 3128: S. & D. Creek to S. Jawhar, $35,000

N. 7th St., 3116, 3120; & 630 Antoine St.: OLINC Limited Partnership to LNW, $247,500

Pennwood Rd., 3205: C. Lebo to T. & A. Wolfe, $96,000

Royal Terr., 145; 2716 Reel St.; 524 Radnor St.: Harlie Investments LLC to S. Maurer, $54,000

Rumson Dr., 281: S. Zimmerman to G. Burdsal, $65,500

S. 17th St., 248: Harrisburg School District to Pennsylvania Counseling Services, Inc., $680,000

S. Cameron St., 1201: W. Dealtrey & R. Bennett to H. Tran, $355,000

S. Front St., 331: I. & T. Heikel to L. Brice & P. Cappetta, $85,000

S. Front St., 575: W. & L. Renz to N. Hiltz, $165,000

State St., 200: WCI Partners LP to 200 State Street LLC, $580,000

State St., 231, Unit 301: LUX 1 LP to D. Scott, $149,900

State St., 231, Unit 404: LUX 1 LP to M. & K. Lastrina, $119,000

Swatara St., 2400: E. Johnson to G. Washington, $115,000

Verbeke St., 258: River Front Development Group LLC to J. Boyd & V. Brandler, $132,500

Wisconisco St., 630; 2605A N. 6th St; 2603 N. 6th St.; 2611 Reel St.: Aydel Investments LLC to S. Maurer, $72,000

Zarker St., 1942: Mussani & Co. LP to Next Generation Trust Services, $35,000

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

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Strong Stuff

Last call?

Last call for the proposed distillery?

When I was a young reporter covering municipal government, I found myself often surprised when my newspaper’s editorial board wrote an opinion piece about a story that I was covering.

“How do they know what really happened?” I asked a fellow reporter after one such editorial. “They weren’t there. They weren’t at that meeting.”

I joked that all they knew about the issue was what they had read in their own newspaper, which was true, since they sat in their offices all day. They didn’t even consult with me, the guy covering the issue, the person who had the backstory (there’s always a backstory), which often went beyond the simple who, what, where, when and how. I found their editorials to be shallow, obvious and sometimes just plain wrong.

I had a flashback to those days yesterday after reading PennLive’s third piece in a week about the proposed distillery in Midtown Harrisburg. I thought to myself, “How do these guys know what really happened at the zoning board meeting? They weren’t there.”

In the minds of the PennLive editorial board, the zoning board is in the wrong, hindering the redevelopment of Harrisburg by denying a variance for the distillery. That sentiment has been repeated in the numerous comments accompanying the stories, as well as on several Facebook posts. So, is it true?

Outside of the zoning board members, the two applicants, the stenographer and the city planning officer, there were only two people in the room for that hearing. I was one of them, the only reporter present.

Actually, this was the second zoning board meeting I had attended for this project.

Two weeks earlier, the zoning board had first heard from the applicants, Alan Kennedy-Shaffer and Stanley Gruen, who proposed creating a distillery in the long-empty, dilapidated “Carpets and Draperies” building at 1507 N. 3rd St. The board quickly determined that the applicants lacked standing in the case as they did not own the building, nor did they have a valid purchase or lease agreement for it.

Nevertheless, the board let the applicants begin to make their case. Kennedy-Shaffer and Gruen spoke about their dream for a distillery, about how they wanted to contribute to the economic revitalization of Midtown Harrisburg and how they hoped to put an historic, neglected building back into productive use.

These were all noble goals, members of the board agreed. However, they believed that the applicants similarly lacked standing to testify about both distilling and the building itself, as neither was a distiller nor a structural engineer or architect.

“We need evidence,” said board Chairwoman Marian Frankston. “We just can’t take what you’re saying third-hand. We need proof.”

I’ve been to many zoning board hearings over the years, and, indeed, the board can be exacting and tough. Members take their jobs seriously, and they expect applicants to be equally serious about their projects, to have their act together before appearing before them.

In this case, the board wanted the applicants to have a signed sales/lease agreement, as well as reliable data on such issues as raw materials used, frequency of deliveries, size of vehicles, shipments out, bottling, parking, waste, odors and more. Alcohol production, after all, can be hazardous if not done correctly, and the business certainly would impact the immediate commercial and residential area, which is not zoned for industrial uses.

Board members strongly advised the applicants to bring in experts who could testify in detail about the distilling process, about its potential dangers, about the business of a micro-distillery and about the building itself–its condition, its viability and its suitability for the proposed purpose.

“We want to promote business in Harrisburg,” said Frankston. “But you have to have your case ready for us to properly review it.”

The board offered to continue the case to the next zoning board meeting in February. The applicants, though, claimed hardship, saying the delay might cause them to lose potential investors. Yielding to their needs, the board agreed to hold a special meeting for their case in two weeks, just days before the end of the year.

When I walked into that second meeting, I immediately had a bad feeling.

Kennedy-Shaffer and Gruen sat in front, before the board, ready to begin their testimony. However, the same people were there as in the previous meeting: the applicants, the board, the stenographer, the planning officer and, with my appearance, the same two guys in the audience.

In other words, there were no experts or witnesses on hand to offer testimony and, based upon the prior hearing, I knew right off that was trouble.

The applicants did have a signed sales agreement for the property, contingent upon zoning board approval. The board accepted the document as valid and began to listen to the applicants’ testimony.

To their credit, they had more information this time. They had some data from existing micro-distilleries and some government statistics regarding matters such as odor, noise, waste, deliveries, etc. They also had included the street addresses of nearby business owners who had signed letters of support, information missing the first time around.

The applicants also answered questions about the building itself, about the equipment they would use and about what they expected in terms of deliveries, waste, etc., at their distillery.

The problem: They still had no expert witnesses, such as an architect, structural engineer and master distiller, who could support these assertions. The board also wanted greater detail, as members were not satisfied with the floor plans, renderings and other documents that the applicants submitted.

The applicants offered to call their distillery consultant to testify over the phone. However, the board refused to take telephonic testimony.

“We have certain rules of evidence,” said board member Dan Deibler. “We may not use hearsay or testimony by someone not here.”

Kennedy-Shaffer stated that the pair couldn’t afford to meet the board’s requirements, as they were “paying out of pocket right now” until their proposed backers provided financing, which, they said, was contingent on the zoning board granting a variance. The applicants estimated the project’s cost to be at least $1.2 million.

After two hours, they board remained unsatisfied with the presentation.

“I’ve never seen anyone present such a major project so ineptly,” said James Cowden, the board’s solicitor.

The board offered to continue the hearing until the next meeting in February. Half-a-dozen times, Frankston asked the applicants if they wanted to continue the hearing until February. The applicants refused to answer “yes” or “no.”

Frankston told them that, if they didn’t respond, the board would have no choice but to vote, as they couldn’t leave the case open without a continuance. The applicants still refused, with Kennedy-Shaffer reading his closing remarks over Frankston’s final warnings that a vote probably would go against them. Exasperated, she called the vote, which unanimously denied the variance application.

In the end, the distillery hearing came down to two contrasting views of what was necessary to obtain a variance for the property.

The applicants believed that they had presented a solid case. The board did not agree and explicitly told them why. At both meetings, the board attempted to educate the applicants on what more they needed to do. Chairwoman Frankston strongly advised them to return in February to take another shot at it and said that some applicants appear before the board three or four times before getting it right. The applicants, though, ignored her advice.

In its editorial, PennLive had another opinion, in which it tried to make a larger point. It stated that the distillery rejection was an example of an anti-business mindset in Harrisburg. That’s simply not true. I’ve repeatedly seen the zoning board bend over backwards to approve projects it believes are in Harrisburg’s economic and business interests. Just in recent years, these projects have included the Zeroday Brewing (Alter Ego) brewery, the Susquehanna Art Museum, LUX condominiums, the Millworks and others–some of the most important businesses proposed in Harrisburg in decades. Furthermore, PennLive’s conflation of this case with City Council’s attempt to sell a blighted property on Cameron Street near Appalachian Brewing Co. makes no sense, as the two cases are very different, involving different properties, different government bodies and different circumstances.

As it should, the Harrisburg Zoning Hearing Board believes that the bar should be set high to obtain a variance, which, after all, is an explicit exception to established city law–the zoning code. The board takes this responsibility seriously and does not grant variances until it is convinced that a project is viable, is in the city’s interest, will benefit the immediate neighborhood and is generally supported by the community.

Even after its “no” vote, the board told the applicants that they had the option to re-file. If they do, I hope they make the most of this first, failed attempt. In fact, their experience should serve as an example to anyone considering filing for a special exception or a variance: give the board precisely what it wants, bring in the experts, be courteous and professional, and understand that the board gets to decide what is needed for approval–the applicants don’t.

This story was updated to correct a quote attribution.

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Dispirited: Zoning Board Denies Distillery Plan

Two Harrisburg residents hope to transform this dilapidated building into the city's first distillery.

Two Harrisburg residents had hoped to turn this building into a distillery.

The plan to locate a craft distillery in Midtown Harrisburg suffered a major setback last night, as the city’s Zoning Hearing Board denied a variance for the project.

The board unanimously turned down the variance request, which would have allowed Kennedy Spirits LLC to locate in the so-called Carpets and Draperies building at 1507 N. 3rd St. The proposal previously had been approved by the city’s Planning Commission.

The two-hour hearing was at times marked by heated exchanges between the applicants, Alan Kennedy-Shaffer and Stanley Gruen, and members of the board. The two parties seemed to have widely differing opinions over the level of documentation and detail necessary to approve the variance, which is needed because the area is not zoned to permit a distillery to operate there.

“We have endeavored to answer all of your questions,” said Kennedy-Shaffer, near the end of the hearing. “We believe we have met our burden under the law.”

The board, however, did not believe the information provided was sufficient to warrant approval.

“We don’t have the information required upon which to base a decision,” said board Chairwoman Marian Frankston. “We are disappointed with your presentation.”

The hearing was the second one in two weeks for the project, which proposed a tasting room and a bar, in addition to a manufacturing facility to produce about 500 gallons a week of such liquors as vodka, gin, whiskey and rye. During the first hearing, the board requested more information, documents and plans, necessitating last night’s special hearing.

Kennedy-Shaffer and Gruen presented some of the requested information, including a signed sales agreement for the dilapidated, three-story building, which was built in 1922 to house a home furnishings retailer called the Gerber Department Store, later renamed the Keystone Furniture Co. They also addressed questions about the building’s condition, customer parking, supply deliveries, storage and the distillation process.

Board members, however, felt their answers were not thorough enough. They wanted greater detail, such as floor plans and architectural renderings, as well as testimony from experts in the distillation of spirits, the waste it produces, safety issues and if that particular building is suited to serve as a distillery. Neither Kennedy-Shaffer nor Gruen is a distiller.

“We review real plans that are submitted to us,” said Frankston. “You submitted your dream.”

For their part, the partners were upset that the board did not let their distillery consultant, who is based in New Hampshire, testify over the telephone. They also felt that the information they provided should have been sufficient to grant the variance and that the level of detail and documentation the board wanted was onerous and costly.

The board gave the business partners the option to continue the hearing to its next meeting, slated for late February. However, Kennedy-Shaffer and Gruen said that a two-month delay could cause them to lose investors for the distillery, which they estimate will cost $1.2 million.

“I think this project will be dead in the water if we wait until February,” said Kennedy-Shaffer, who refused to agree to a continuance, leading the board to cast a negative vote.

Following the meeting, Gruen and Kennedy-Shaffer said they would have to assess their next step.

“We’re going to move forward,” said Gruen. “The question is where.”

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March News Digest

 

New Parking Rates Go into Effect

The first of Harrisburg’s new parking meters went live last month, doubling street parking rates through much of downtown.

Street parking in the heart of downtown Harrisburg now costs $3 an hour, or 75 cents for every 15 minutes. In addition, enforcement hours have been extended to Monday through Saturday, 8 a.m. to 7 p.m.

The 40 new meters accept credit cards, meaning parkers, for the first time, do not have to manually feed the meters with change.

The new parking rates were agreed to as part of the long-term lease of the city’s parking system to Standard Parking. Outsourcing the parking system was a key part of the city’s financial recovery plan, which helped rid Harrisburg of its overwhelming debt load and, if revenue projections are met, should provide additional annual funds to the city.

Standard Parking still must install new meters in several locations, including in Midtown Harrisburg, where metered parking also will be extended up N. 3rd Street to around Reily Street.

 

Water Rate Hike Effective

The Harrisburg Authority last month began implementing its new rate structure that includes a 27 percent hike in combined water and sewer rates.

As a result, authority customers experienced an increase in their utility bills last month. Most customers saw their bills go up by under $15 per month, said the authority.

The rate hike will help ensure the long-term health of Harrisburg’s drinking water, wastewater and storm water systems, said Executive Director Shannon Williams, who added that, even with the increase, water rates are among the lowest in the region.

 

Brewery Headed to Midtown

A brewery is headed to the heart of Midtown Harrisburg, as Alter Ego Brewing Co. last month received the OK to open a brewhouse at the rear of Midtown Cinema.

The city’s Zoning Hearing Board unanimously approved a special exception to permit the brewery and brew pub to operate in a residential zone.

Several dozen supporters—and some opponents—gathered in City Council chambers to voice their opinions. Supporters testified that the brewhouse would play an important role in continuing the revitalization of the area, while opponents cited possible traffic, noise, odor and parking issues.

Owners Theo and Brandalynn Armstrong expect to begin to build out the space at 250 Reily St. in May. If the renovation goes as planned—and assuming Alter Ego is granted its liquor license—the brewery should begin to serve customers around October.

When completed, the beer-making operation will take up about half of the 3,500-square-foot space, which is owned by Lift Development LLC. The other half will include a bar, tables and a small stage, which will be confined to acoustic acts and small bands.

In addition to serving their own beer in mugs and growlers (no bottles), Alter Ego will offer local Pennsylvania wines and a limited menu focused on small plates and finger foods. No spirits will be served.

Hours are expected to be Wednesday to Friday, 4 p.m. to 11 p.m. and Saturday and Sunday, 11 a.m. to 11 p.m.

 

Stadium to Undergo Upgrade

Harrisburg plans to undertake a major upgrade to the Skyline Sports Complex to significantly improve the soccer facility used by the Harrisburg City Islanders and youth soccer groups.

Mayor Eric Papenfuse last month said the project will double the seating capacity at the city-owned facility to 4,500. It also will create a new entrance plaza, install a new scoreboard and build new restrooms, locker rooms and a concession area.

No city funds will be used for the $14 million project on City Island, said Papenfuse. Instead, private funds will be pursued, in addition to a possible state matching grant, said Islanders President Eric Pettis, who expects work to be finished in 2016.

The upgrades will allow greater use of the venue, including for concerts, youth sports and other events, said Papenfuse.

 

More Downtown Housing Planned

Another downtown office building is going residential, as the 19-century Walnut Court building is slated to become a 21-unit apartment building.

The Harrisburg Zoning Hearing Board last month agreed to waive the parking requirements for the conversion by 210 Walnut LLC, which is made up of the partners of WCI Partners LP. City Council still must OK the land use plan for the project.

The developers plan to convert the four-story, 21,600-square-foot building into 15 one-bedroom units, three two-bedroom units and three lofts. Rents will range from $900 to $1,350 per month.

The building has housed many businesses throughout the years, including, most recently, the law firm of Keefer, Wood, Allen & Rahal, which relocated up the block. The women’s clothing store, The Plum, also long-occupied the large retail space at Walnut and N. Court streets. It has moved next door to Locust and N. Court streets.

The building will retain two commercial spaces. The first is the snug storefront at 206 Walnut St. that long has housed Alden, a men’s haberdashery. The second, at the corner, will probably house a restaurant, said Butcher.

 

Flood Insurance Hikes Rolled Back

Congress last month passed legislation watering down key elements of the Biggert-Waters Act, which had threatened to dramatically raise the cost of flood insurance.

The U.S. Senate and House both passed bills that will roll back hikes that, in many cases, would have increased federal flood insurance premiums by more than three-fold. In addition, many property owners now will be allowed to pass on below-market rates to people who buy their homes.

As of press time, the legislation was waiting action by President Barack Obama. The White House has indicated he will sign it.

 

Warfel Snags National Award

Warfel Construction last month received national recognition with a first-place award for its work on the new office building at N. 2nd and State streets in Harrisburg.

Associated Builders and Contractors (ABC), a leading construction trades organization, honored East Petersburg, Pa.-based Warfel with the first place Eagle Award in the category of commercial property, $5 to $10 million.

“The Excellence in Construction awards program is the industry’s leading competition, developed to honor innovative, high-quality merit shop construction projects,” according to ABC.

The project was selected from entries submitted from across the nation and judged first in terms of complexity, attractiveness, workmanship, innovation, safety, cost and completion time.

WCI Partners developed and owns the building. Major tenants include the Buchanan Ingersoll & Rooney law firm and First National Bank of Pennsylvania.

 

New Bishop Installed

Most Rev. Ronald W. Gainer was installed last month as the 11th Catholic bishop of Harrisburg at a Mass at St. Patrick Cathedral.

A native of Pottsville, Pa., Gainer was ordained in 1973 and previously served as bishop of Lexington, Ky.

He succeeds Bishop Joseph P. McFadden, who died last May.

 

Changing Hands: February Property Sales

Brookwood St., 2451: Fannie Mae to C. Wise & L. Stone, $41,000
Chestnut St., 2044: W. Bohn Jr. to M. Catania, $81,900
Chestnut St., 2304: M. & T. Bosak to M. & K. Johnson, $189,500
Duke St., 2622: J. Pierce to PI Capitol LLC, $51,031
Hale Ave., 377: H. & K. Le to I. Yolov, $49,000
Hale Ave., 412: Fannie Mae to T. Tran, $36,000
Herr St., 226: M. Kurowski to V. Wills & R. Moore, $160,000
Meadowlark Pl., 3028: C. Capitani to K. Clark, $73,000
North St., 244: S. Touloumes & J. Nye to E&S Properties LLC, $37,000
N. 2nd St., 511: C. Longyear to L. Eyler, $240,000
N. 2nd St., 1605: Freddie Mac to NR Group LLC, $42,000
N. 3rd St., 906 & 912: 3rd Street LLC to Nish Properties LLC, $285,000
N. 3rd St., 925: AIM Holdings LLC, CL Holdings LLC & Lam & Cheng Properties to 921 Home LLC, $715,000
N. 3rd St., 1724: G. DiCioccio to Y. Farzana, $91,500
N. 3rd St., 2103: WEC 97A 11 Investment Trust to Rite Partners LLC, $985,366
N. 3rd St., 3017: Deutsche Bank National Trust Co. Trustee to J. Crossett & M. Hochstetler, $80,000
N. 3rd St., 3221: Freddie Mac to PA Deals LLC, $39,250
N. 4th St., 1723: P. Laudermilch to R. Brock, $130,000
N. 14th St., 210: R. Rammouni & W. Othman to FBTB Group LLC, $48,900
N. 15th St., 1340: PA Deals LLC to MidAtlantic IRA LLC & James Yeager IRA, $56,500
N. Front St., 1525, Unit 409: P. Krantz to M. Anderson, $189,150
Penn St., 1338, 1340 & 1342: P. Sowers-Alton to T. Hanley & J. O’Neill, $36,000
Pennwood Rd., 3141: J. & P. Sandrock to C. Giba, $75,000
Rose St., 933: Rose Street Associates to F.A. Clark, $150,000
Rudy Rd., 2323: Fannie Mae to O. Saleh, $61,000
Rudy Rd., 2400: A. & J. Erby to Secretary of Housing & Urban Development, $156,008
Seneca St., 540: K. McCauley to E. Jefferies, $59,000
S. 13th St., 127 & 1304 Derry St.: S. Pak to Mount Pleasant Laundromat LLC, $1.2 million
S. 13th St., 301: 301 South 13th Street LLC to Skynet 301 LP, $360,000
State St., 1522: E. Stoute to C. Evans, $75,000
Susquehanna St., 1909: WCI Partners LP to L. Marven III, $149,900
Sycamore St., 1525: J. Moyer to P. Pham & T. Nguyen, $63,000
Valley Rd., 2300: E. & J. Schweikert to M. & R. Lewis, $208,000
Woodbine St., 245: J. & J. Nagy to J. & M. Harris, $52,800

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

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