Tag Archives: harrisburg

3 Charter Schools Proposed: Also, Ron Brown buildings back on market.

A Philadelphia education nonprofit wants to open two charter schools in Harrisburg next year, potentially giving parents another option of where to send their children.

American Paradigm Schools plans to apply for two charters by the end of the month and hopes to be open for the 2012-13 school year, said Stacey Cruise, the company’s CEO. One school would be located in central South Allison Hill and another in Midtown, probably near the 6th Street corridor. The exact sites have not yet been determined.

“American Paradigm Schools and our staffs are so excited to be here in Harrisburg,” said Cruise.

The schools would be K-4, expanding after several years to K-8. Each school eventually would have 675 students, Cruise said.

The 10-year-old company, which emphasizes technology, science and arts in its curriculum, currently operates two charter schools in Philadelphia. The Harrisburg school board must award the charters before the schools can open.

This fall, the school board also will be examining a charter school application recently filed by Mikayla’s Place founder Monica Archie, who wants to open the Archie Preparatory Academy Charter School. Currently, the city has just one charter school, the Sylvan Heights Science Charter School.

Harrisburg has had a mixed history with charter schools. One of the largest, the Ronald H. Brown Charter School, closed in 2005 after its five-year charter was not renewed.

The school was headquartered in the historic Moose Lodge at N. 3rd and Boas streets and occupied an entire city block. Those four properties, 916-922 N. 3rd St., went to tax sale last year and were bought by local real estate investor and developer Phillip Dobson, who paid $188,000.

Dobson then flipped them back for $320,000 to New York-based Mosaica Education, the for-profit charter school company that owned the buildings when Ron Brown operated there. After the school closed, Mosaica stopped making payments on the buildings, which were foreclosed on.

Mosaica has now put those four buildings back on the market, asking $3.9 million for the total of 40,000 square feet of space.

In 2000, Mosaica originally bought the buildings for $6.6 million, according to county property records, and then extensively renovated them.

The buildings, in the heart of the 3rd Street corridor, have been empty, boarded up and increasingly blighted since the Ron Brown school shut down in 2005.

 

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Developer Unwraps Post Office Purchase: Suburban Philly company to deliver renovation.

A suburban Philadelphia developer this month plans to buy the Keystone Branch postal facility at the entry to Harrisburg’s industrial zone, though the company has no firm plans yet for the site.

Adam Meinstein, president of Blue Bell-based Equilibrium Equities, said his company is purchasing the 11-acre property on Market Street, just east of the Harrisburg Transportation Center, on speculation, with no tenant in place.

“We are not coming in with a customer for the building,” he said. “It has potential for retail, office and industrial.”

Meinstein would not disclose the sales price, but said his company would complete the purchase on Sept. 15. It then will begin a $1.5 million rehabilitation of the 237,000-square-foot masonry building, which was built in 1962 as the region’s main postal sorting facility. Renovation should take nine months, he said.

This sprawling building, he said, is in “excellent shape,” but needs new heating and cooling systems and energy-efficient lighting. It also needs to be spruced up and emptied of its heavy postal equipment, he said.

The U.S. Postal Service has been trying to sell the property for about two years. Meinstein said his company has been considering the purchase since he first saw the property about 18 months ago.

Even though the company has yet to complete the sale, it already has shown the building to prospective tenants, Meinstein said, adding that the site’s location near the train station, I-83 and downtown Harrisburg makes it attractive for many businesses.

Mayor Linda Thompson praised Meinstein for investing in Harrisburg, particularly given the city’s well-publicized financial crisis. She said she looked forward to the day when the property again would become commercially active.

“We’ll have economic opportunity soon in that area, in less than two years, about the same time we’ll get to fiscal solvency,” she said.

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A Matter of Midtown: As two beloved businesses close, is something wrong?

For denizens of Midtown Harrisburg, the news came as a one-two punch, right to the gut.

First, Nonna’s Deli-Sioso on Reily Street shut its doors suddenly. Then Dawn Rettinger announced that she’d close her crafts consignment shop, The HodgePodgery, come Oct. 1.

Two beloved, unique businesses gone. Even worse, both seemed to spark new vitality in Midtown when they opened a few years back.

Since then, Twitter, Facebook and the old-fashioned talk on the street have speculated that something is wrong in Midtown. So, is there?

Interviews with many merchants revealed a business climate that, while not on fire, isn’t deeply troubled either.

“Business continues to be very strong for us,” said Eric Papenfuse, owner of Midtown Scholar Bookstore and CafĂ© on N. 3rd Street, who, in part, credits an aggressive marketing campaign for his success. “We’ve seen growth each month of 15 percent in year-over-year sales in the bookstore.”

Several owners, including Papenfuse, cautioned against a rush to judgment in Midtown, saying that businesses close for many reasons.

Indeed, Nonna’s shut after owner Ray Diaz took a job out of state. Meanwhile, Rettinger said her fixed costs were too high to justify a brick-and-mortar space. She plans to continue The HodgePodgery, but without a store, turning to markets, shows, festivals and the Internet for business.

Rettinger also places blame with the state, saying that government layoffs have removed some buyers, taking away their ability to make discretionary purchases, such as her one-of-a-kind handmade items.

“It’s been a wonderful experience in Midtown–the things that are happening here are fantastic,” she said. “But, with the economy, not enough people are spending money to support the overhead of the business.”

Down the block, CafĂ© di Luna owner Ambreen Esmail described her business as “pretty good.” She praised the surrounding residential area for the regulars that support her cozy, comfortable coffee and tea shop.

Esmail’s main challenge lies not with neighborhood support, but with the city’s. She’d love to attract Harrisburg’s many downtown and state visitors. People, though, are deterred from walking a few blocks up N. 3rd Street because, she said, public trash cans often overflow, street lights aren’t fixed quickly, no police walk the beat and sidewalks and streets look shabby–all of which mar the otherwise charming neighborhood.

“I know the city is broke, but the trash needs to be emptied, and the lights need to be fixed,” she said. “We’re all willing to work hard at making Harrisburg a better place, but we also need the city’s support.”

While sympathetic to the plight of the merchants, city spokesman Robert Philbin said the city is doing all it can given its financial strains.

“City services are stressed as a result of reduced staffing and a very tight cash flow situation,” he said, adding that residents need to be more involved to keep their neighborhoods clean and well-maintained.

“The upside to the current fiscal malaise is that it calls for more and stronger neighborhood organization,” he said. “I think that’s happening across the city right now.”

Like Esmail, John Traynor, co-owner of the Harrisburg Midtown Arts Center, said he’d like a faster response and better service from the city.

Still, Traynor is upbeat about prospects in Midtown, pointing to the build out of HMAC, the new Susquehanna Art Museum and the Furlow Building rehabilitation, all set to get underway along N. 3rd Street. These projects, he said, should vastly improve the corridor, while tying together the north and south ends of the commercial district.

He hopes that existing businesses and landlords–especially those that have let their properties sink into disrepair–will notice the positive change and make improvements.

“If the 3rd Street corridor is going to look nicer, it’s up to everyone in the community,” he said.

An unscientific survey revealed that business owners think the neighborhood is generally on the right track, focusing on specialty shops and restaurants, especially those that appeal to the neighborhood’s well-educated, urban-minded residents and to the emerging arts community.

Papenfuse agrees, but did strike a note of concern for the near-term, as Midtown waits on catalysts like SAM, not due for completion until 2014. While business may be good for him, he’s concerned that the city’s financial crisis may be keeping new businesses from setting up shop in Harrisburg.

“In Midtown, businesses come in and go out all the time,” he said. “The difference now is that new businesses haven’t really moved in to replace old ones.”

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The Neighborhood Spot: The food, the owner have locals lining up at Aleco’s.

It’s just past 1 a.m. on a Friday night–make that Saturday morning–and a line winds its way to the counter at Aleco’s, the popular eatery at the busy intersection of North and N. 2nd streets in Harrisburg.

Behind the counter, owner Jose Garcia moves quickly, taking orders, making cheesesteaks, dishing out pizza to the late-night diners. Sure, some customers may have been a bit too generously served at the nearby bars, but, in general, the crowd is friendly and orderly.

On weekends, Aleco’s is open an amazing 16 hours, until 2:30 a.m., and Garcia almost never leaves his post at the grill. It’s worth losing some sleep, he says, as those wee hours are usually the busiest of a very long, seven-day work week.

“Friday and Saturday nights are a busy, busy time,” said Garcia. “We keep the grill open, and people come here because we serve the full menu.”

Actually, it’s almost always busy at Aleco’s, the quintessential neighborhood spot, well-located at the seam where downtown and Midtown meet.

At lunch, workers from nearby offices crowd the tables in the always clean, mid-sized dining room. At dinner, Aleco’s draws from the nearby apartment buildings and houses. And, late at night, the after-hours patrons pour in.

Garcia, a native of Mexico, arrived in the United States in 1980, at age 16, and has been working in Harrisburg-area restaurants since, learning the cooking trade from the bottom up. Over the years, he served as chef at Casa Chica, Leeds and Carnahan’s, among others.

Aleco’s was opened two years ago by Richard Hanna, who also owns Roxy’s, the popular diner-style restaurant across from the state Capitol. Garcia went to work at Aleco’s, took a partner’s share and bought out Hanna’s remaining stake in the business earlier this year.

As owner, Garcia has retained the menu of sandwiches, cheesesteaks, pizza and salads, adding lunch specials and dinner entrees each day, such as pork chops, fish fillet and a delicious jumbo shrimp salad.

While perhaps attracted initially by the convenient location, patrons return for the food, as even ordinary-sounding fare, like a Caesar chicken wrap or a turkey sub, is a cut above what you might find elsewhere, reflecting Garcia’s years of training in the kitchen.

Digging into a steak salad one recent afternoon, Harrisburg resident Jeffrey Munoz, 25, said he first came to Aleco’s late at night after hitting some of the area’s clubs. However, he now makes the trip from Allison Hill once or twice a week specifically to see what Garcia is cooking up that day.

“The food is what draws us here,” he said. “That’s why we keep coming back.”

His fiancée, Heather Welsh, added that Garcia is part of the attraction.

“I love the atmosphere here,” she said. “The owner gets to know everyone, and the food is awesome.”

Garcia is grateful for the support of his many regulars, even while he has his own talent and hard work to credit for the customer loyalty. He hopes, one day, to parlay the success of Aleco’s into a full-service restaurant focusing on seafood, steaks and pasta, which will allow him to showcase the full range of his culinary skills.

In the meantime, he expects to continue working 12- and 16-hour days, seven days a week, to reach that point. While he has a loyal staff, he believes that it’s essential for the owner to be on-site virtually all the time.

“I need to be here so I can see the customers and have the quality of the food come out right,” he said. “Nothing is better than having the owner right there.”

Aleco’s, 620 N. 2nd St., Harrisburg. Hours: Monday to Thursday, 10:30 a.m. to 10 p.m.; Friday and Saturday, 10:30 a.m. to 2:30 a.m.; Sunday, 11 a.m. to 9 p.m. Phone: 717-230-9000.

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Retail, across Generations: 8 decades ago, the Mishkins arrived on Market Street. They’re still there.

Nearly 80 years ago, a young man arrived in Harrisburg from Rochester, N.Y. He soon opened a hat shop on Market Street in a storefront now occupied by the downtown Rite Aid.

Moe Mishkin started The Astor Millinery in an effort to make a living selling women’s hats, which he did for the next quarter-century. Little did he know that he’d begun something much greater, founding a Harrisburg retail dynasty.

“He only came to Harrisburg because his store in Rochester burned down,” said his son Isaac. “He felt there was opportunity here.”

When Moe died in 1957, Isaac took over the store, which he ran with his mother, Pauline. Then the hat business petered out, so Isaac smartly moved on, opening The Plum, a clothes shop catering to professional women that thrives to this day. Decades later, his son, Shawn, began Plum Sport, a store that specializes in fashionable, more casual clothing.

“We’ve tried to change with the times,” said Shawn.

Indeed, the family’s history parallels the city’s to a remarkable degree.

When Moe Mishkin came to town, Harrisburg was the retail center of the entire region. Sales were so hot in Moe’s store that he took partial ownership in two other hat shops–all three located on the same block.

Starting in the early 1960s, not only did the hat business fade, so did downtown commerce in general.

Isaac adapted, selling the family’s hat business before the market completely tanked, while eying an opportunity to cater to an emerging class of working women who wanted more modern styles. The first Plum store opened in 1968 in the old State Theatre building, moving across Locust Street when the theater was razed a decade later.

Today, the spacious Plum shop occupies the entire stretch of N. Court Street from Locust to Walnut streets. It offers a full array of women’s apparel, including accessories and footwear.

Isaac, now 74, describes his shop as a “bridge store,” as it bridges the gap between exclusive, haute couture fashion and run-of-the-mill styles that can be found in almost any department store.

“We appeal to people who want the high-end look, but don’t want to overpay for it,” he said.

The Plum also prides itself on customer service and a deep knowledge of its stock, both of which can be in short supply at big box stores and in suburban shopping malls. Isaac and his daughter, Kirsten, can be found in the store nearly every day, except perhaps when one of them is in New York meeting with buyers.

Up the block at the corner of N. 3rd and Market streets, Shawn Mishkin, 41, represents another phase of Harrisburg history–its revival. He actually started Plum Sport in the suburbs, in a location on the Carlisle Pike, but returned to the family’s downtown roots a few years later in 2001 as the city was renewing itself as a place to live, work and visit.

“I didn’t like the spread-out, ever-expanding suburban rings where you have to drive everywhere–it’s not convenient,” he said. “I wanted to possibility of walk-in traffic. I like the thought of all the people who were downtown coming in to see us.”

Like his father’s shop, Shawn’s boutique is unique. It’s a long-time survivor in a difficult urban retail environment, as well as a place that refuses to dilute its stock–that is proud to deliver the latest fashions and styles to central Pennsylvania.

“I’m the only store in this area that is like this,” he said. “Within a 50-mile radius, the only similar store is in Lancaster.”

In a perfect coincidence, Shawn has located his store right across the street from his grandfather’s flagship hat shop. In addition, the store’s 3rd Street side and its basement ate where his grandfather ran his two other shops, bringing the story of the Mishkin family in Harrisburg full circle.

The Plum, 210 Walnut St., Harrisburg; 717-232-9251. Hours: Monday to Friday, 10 a.m. to 5 p.m.; Saturday, 10 a.m. to 4 p.m.

Plum Sport, 300 Market St., Harrisburg; 717-737-4505. Hours: Monday to Friday, 10 a.m. to 6 p.m.; Saturday, 10 a.m. to 5 p.m.

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Steamed Up: As city steam vanishes, a group of homeowners fights back.

In mid-March, a group of Harrisburg property owners received a big surprise–they had six months to find, install and pay for an entirely new way to heat their homes.

These 25 customers use “city steam,” a century-old system initially provided by the city and, now, by NRG Energy Center Harrisburg. NRG informed them that their steam distribution lines weren’t profitable, so it was shutting them down.

“We didn’t ask for this,” said Eric Webb of the 700-block of Green Street. “We were satisfied with steam heat.”

Most city steam customers are in the oldest parts of downtown and Midtown. The lines that NRG plans to abandon–the current plan is to end service in September–will affect customers on parts of N. 3rd, Green, Locust, N. 2nd, Forster, Bartine and Briggs streets.

NRG has offered some compensation to its soon-to-be ex-customers: 25 percent of the cost of a new boiler or a five-year loan, less a $1,000 subsidy, that comes with a lien against the property until the loan is repaid. According to NRG, almost all customers choose the first option.

The problem, said Webb, is that new steam boilers cost $6,000 to $9,000 installed. In addition, many homes would require additional work, such as vents, gas lines and other infrastructure, which could add thousands more to the cost.

Most of his neighbors, he said, just don’t have that kind of money. In fact, many are retired and on fixed incomes.

“This is a bad economy,” he said. “Who wants to get into more debt or incur a large, unexpected expense when, tomorrow, the roof could go?”

This is the second time in four years that NRG has terminated service. In 2007, the company abandoned eight line segments affecting about 35 customers.

When NRG bought the system from Statoil Energy in 2000, city steam served about 300 customers. Come winter, it will serve just 200 or so, due to line abandonments and customers removing themselves from the system.

NRG defends its decision to end service, saying that retaining unprofitable lines unfairly penalizes its other customers, who pay more as a result.

“These 25 customers are served by seven inefficient pipelines that cost more than they make,” said Jan Sockel, general manager of NRG Energy Center Harrisburg. “Other customers actually pay for the subsidization of these customers.”

Moreover, NRG perceives its compensation model as fair. By combining the company’s subsidy with a switch to less-costly natural gas, customers can recoup their investment in less than 10 years, said Sockel.

“Over time, it’s cheaper to heat with natural gas,” he said.

It’s not just residences that are due to be shut off. The Broad Street Market and the Historic Harrisburg Association building, which face each other across N. 3rd Street, also received notices of termination.

“This is a significant cost we’re going to be undertaking,” said John Campbell, HHA executive director. “Being a nonprofit, we’re not able to find these resources.”

Campbell said he’s received quotes of $50,000 to $100,000 for a new heating/cooling system for HHA. Meanwhile, the Broad Street Market faces a tab of $250,000 to $650,000 for its two buildings, he said.

Seeking a remedy, HAA, the Broad Street Market and a group of 18 home-owners have all engaged the state’s Office of Consumer Advocate (OCA), which represents consumers before the state Public Utility Commission. They wish either to have their service retained or receive better financial terms from NRG.

State Consumer Advocate Sonny Popowsky said he has met with NRG, but wouldn’t comment on those talks.

“We filed a protest,” he said. “By our participation, we hope to get a more reasonable solution to the case.”

Sockel confirmed that NRG has met with OCA and said the company may be willing to tweak its offer. For instance, it may be flexible on ending service in September, perhaps granting customers additional time to convert to in-building heat.

“We’re working with OCA to arrive at a resolution that will satisfy the customers and OCA,” he said.

At press time, no firm adjustments to the initial offer had been made.

Sockel added that NRG plans to continue steam service in Harrisburg. The company serves several large commercial customers, including the state Capitol complex.

Additional line segments, though, may be terminated in coming years, he said. NRG’s rapidly diminishing residential user base includes several blocks of North Street and scattered locations downtown.

For his part, Webb isn’t banking on a better deal from NRG. His group of homeowners is exploring volume discounts from heating contractors.

Whatever the outcome, he’s incensed that he believes he’s losing service to the benefit of NRG.

“NRG says that these steam lines result in reduced revenue for them” he said. “So, we’re going to help make them more profitable?”

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