Tag Archives: WCI Partners

What We Did Last Summer: While you were away, Harrisburg was busy rebuilding.

August 31, 2016 | by Lawrance Binda

Illustration by Rich Hauck.

September is here, and, yes, that means we have to kiss summer good-bye.

Like many others, you may be adjusting to the grim reality that it’s time to put away the beach ball and pick up the time sheet.

Your editor also had some time away this summer, and we’ll get to that in a bit. But, first, I thought that we should catch up on some important local news—things that flew a bit under the radar or may have been forgotten somewhere in the middle of that second margarita.

Two-Way 2^nd

“Multimodal Collaborative Project.” Have I already put you to sleep? I hope not because behind this dense phrase lies a series of infrastructure projects with the potential to truly transform Harrisburg.

In July, the nonprofit called Impact Harrisburg released nearly $5.5 million, half to the city and half to Capital Region Water. Combined with a match from PennDOT, this money is slated for road (and utility) improvements that could undo some of the tremendous damage wrought in the 1950s, when the state turned charming neighborhood streets into forbidding freeways—making Harrisburg both less livable for residents and easier to flee for workers.

Most importantly, the money allows the city to begin the process of returning N. 2^nd Street, from Forster to Division streets, to two-way traffic. Mayor Eric Papenfuse told me that preliminary work would begin next year, followed by actual construction, he hopes, in 2018.

The money would fund related improvements to N. 6^th, N. 7^th and Division streets, both to handle additional traffic and to make those roads more pleasant and pedestrian-friendly. A chunk of the money also would go to repaving much of N. 3^rd Street, a project slated for next year once the utility work is done, and towards making a dangerous section of Berryhill Street safer for pedestrians.

TheBurg has long advocated making 2^nd Street in Midtown/Uptown two-way as a vital step in revitalizing Harrisburg, reintegrating neighborhoods and returning this major thoroughfare from commuters back to residents.

Papenfuse wasn’t all smiles over the actions of Impact Harrisburg. He wanted the money that went to Capital Region Water to pay off the city’s loan for the recently completed streetlight project, with the savings then used for repaving neighborhood streets. In his opinion (though not CRW’s), opportunity lost.

Bar Stays Open

Papenfuse also wasn’t wild about county Judge Andrew Dowling’s order that forced the city to issue a business license to the Third Street Café, a Midtown bar that the administration has targeted for closure. Dowling found the city’s argument against the bar (that it attracts crime) to be weak and said, in any case, that state regulation trumps city restrictions for businesses that hold liquor licenses.

So be it. I’ve previously argued that the Third Street Café has a detrimental impact on the quality of life, the redevelopment and potential safety in the heart of Midtown. In my view, those things remain true. However, I can’t disagree with Dowling that city did not present a strong case for closure.

Dowling’s decision, though, is not stopping the redevelopment of one of the most forlorn commercial streets in Harrisburg, one with tremendous potential. Last winter, Zachary Nitzan purchased the block’s two largest historic buildings—the former home of Midtown Paint & Hardware and the former Volunteers of America building—and he spent much of the summer restoring them. One will house his high-end, custom-design rug business, and the other will be divided into two renovated storefronts, returning the building to its original format. Pass by, have a look and smile.

It seems that 3^rd Street will have to rise on its own, without the help of the heavy hand of government (that is, unless the city’s long-shot appeal works). In other words, it will have to come back in the way that forsaken blocks in many other cities have—slowly, by risk-tolerant people with vision and patience.

Cut the Tape

Fortunately, Harrisburg has a number of such risk-tolerant people, as this past summer saw the completion (or near completion) of several important projects.

Downtown, Harristown began signing leases for the Flats at Strawberry Square, the first of its three apartment projects in the immediate area. Several blocks away, a few intrepid European investors brought a couple of desolate blocks of N. 2^nd Street back to life, opening expansive restaurants called Capital Gastropub (the old Ceoltas) and the Bridge’s Social Club (the old Quarter).

Across Forster Street, WCI put the finishing touches on its renovation of the historic Harrisburg Moose Lodge at N. 3^rd and Boas streets. The ground floor is the new home of the co-working outfit, Startup, and the upper levels feature high-end apartments.

Speaking of redevelopment: I spent part of my summer in Portland, Maine, which (like vacations I’ve written about before) provided me with no end of inspiration for things we could do here.

Like Harrisburg, Portland is a small, historic city that had to remake itself following industrial decline. It’s further along in the process, having succeeded in playing to its natural strengths: charm, walkability, waterfront, seafood, tourism and all-things craft.

I was especially struck by a former industrial area, which has been rezoned and repurposed. Where there once were warehouses full of boxes and forklifts, you’ll now find tourists sampling craft beer, sipping small-batch spirits, eating gourmet food truck fare (I had something called “Japanese street food”) and listening to musicians. And I thought to myself—Cameron Street!

The transformation of Cameron has already begun, pioneered by Appalachian Brewing Co., now joined by Midstate Distillery. With their open spaces, high ceilings and rock-solid build, the structures there are ideal for the new urban industry—craft, artisanal, hand-crafted anything—with a little concrete, noise and ductwork no deterrent to foodies, beer snobs, wine geeks and bespoke fans (in fact, it may be an attraction).

Lucky for us, Cameron Street—from the Farm Show complex to the incinerator—is loaded with exactly this type of building. Any takers?

Lawrance Binda is editor-in-chief of TheBurg.

st@rtup to Anchor Historic Moose Lodge Building

March 10, 2016 | by Lawrance Binda

The historic Harrisburg Moose Lodge Temple, which is undergoing rehabilitation.

A Harrisburg co-working outfit will triple in size as it becomes the anchor tenant in the renovated, historic Moose Lodge Temple in Midtown.

st@rtup Harrisburg will take the entire ground floor of the landmark building at N. 3^rd and Boas streets, which last housed the Ronald Brown Charter School. The company is expected to make the move this summer when the renovation is complete.

“This move will allow us to better serve the city’s growing creative class and independent workforce,” said Adam Porter, st@rtup co-founder with business partner Adam Brackbill. “Harrisburg’s high quality of life and easy access to major markets make it a great place for anyone with an idea and the energy to execute it.”

st@rtup Harrisburg was founded three years ago as the city’s first co-working space, setting up in a building on the 1500-block of N. 3^rd Street. The new space, measuring 6,536 square feet, will allow the company to meet growing demand for a variety of workspaces, from shared desks up to private offices, said Porter.

WCI Partners purchased the dilapidated, 92-year-old building last year from Atlanta-based Mosaica Education. It had been empty since 2005, when the school district’s former board of control refused to re-authorize the school’s charter.

In addition to the st@rtup space, the renovation includes 33 high-end apartments in the building’s upper floors. Porter described the building as “Harrisburg’s first live/work” space, with the expectation that some tenants will choose to work downstairs in st@rtup.

Besides the Moose Lodge building, the project includes the renovation of three Victorian-style townhouses along the 900-block of N. 3^rd Street. Those buildings will feature commercial tenants on the ground floors and apartments upstairs, said WCI President David Butcher. TheBurg plans to occupy the ground-floor space in two of those townhouses, moving from its current location in Uptown Harrisburg.

Increasingly, creative companies are relocating to the southern tip of Midtown. Recently, photography and video company GK Visual purchased and moved into a former warehouse at 933 Rose St. The company will hold a ribbon cutting for its new space on March 30 at 4:30 p.m.

To learn more about st@rtup Harrisburg’s new space, visit www.startuphbg.com/new-home.

Disclosure: WCI principal Alex Hartzler is publisher of TheBurg.

House Hunters Harrisburg: As amenities, confidence grow, so does interest in living in the city.

February 29, 2016 | by Ashleigh Pollart

A year ago, Jared Blouch packed up his belongings and did something that, until recently, would have seemed decidedly backwards.

He sold his house in Mechanicsburg and moved into Harrisburg.

He was tired of the commute and traffic into the city each day, he said. So, he found a beautiful, historic house that he also thought was very affordable and started a new way of life that included—egads—walking.

“I like that everything is so close, and I don’t have to drive far,” said Blouch, who purchased on Green Street. “I can get everything I want right there.”

Blouch became so enamored with his new neighborhood that he quickly became an activist for it, joining the board of Friends of Midtown and serving as president of the Olde Uptown Neighborhood Association.

Blouch’s introduction to Midtown Harrisburg could hardly be more different than that experienced by Ray Davis, who moved there in 1986.

“I bought my house on Green Street, and I drove my mother by and she looked at me, and she looked back at the house and said, ‘Are you serious?’” he said.

Davis, a familiar licensed real estate agent in central PA, and particularly in Harrisburg, laughed as he recalled the memory.

“She had no experience with city living,” he said. “So, she put her hand on my knee and said, ‘Is it safe?’”

In those three decades in Harrisburg, Davis has seen many changes—from the transition of the plasma center on Reily Street to the current Midtown Cinema; from rows of empty buildings to the recent surge of new businesses in Midtown.

“We didn’t have anything—anything!” he stressed. “It was so different than it is now.”

Today, Midtown residents have numerous restaurants, nightspots and even a brewery among a long list of amenities just a short stroll away. In part, that’s what may be driving new interest in living in the heart of the city, said Davis.

“Comparing 2011 to 2015, there were literally twice as many sales,” he said.

In 2011, the data (price range of $50,000 to $250,000) showed that 49 houses were sold in the 17102 zip code, which includes North Street to Maclay Street and Front Street to N. 7^th Street. In 2015, the same zip code totaled 99 units sold. Even more encouraging, the average time on the market for those 99 units was 87 days, just below the average of 90 days in the surrounding suburbs.

Faring Better

Wendell Hoover, Harrisburg’s other go-to agent, looked past the borders of the 17102 zip code to find that the dips and peaks of the average sales price over a six-year period told the same story.

Including data from downtown, Midtown and Uptown, the average sales price was $97,241 in 2010. In 2011, the average sales price dropped drastically to $85,339 then dropped further in 2013 to $75,058. The last two years have seen a reversal. The 2015 figures show a 22 percent increase since 2013 to an average price of $91,600.

The low numbers in 2011 were not unique to Harrisburg as the country experienced a bursting of the housing bubble. Harrisburg, however, was experiencing other challenges, financially and politically, over those years. Now, the opinion of the city has changed, said Hoover, who credited this improved perception as the main factor behind the current upswing.

“There were just so many negative things, and there were very few positive things before, so that’s the biggest trend—people have changed their viewpoint,” he said. “Whether they’re first-time homeowners or they’re investors, you need to have that confidence in the immediate market, and now a lot of people do.”

More Attractive

Hoover has been a realtor in central PA for six years and, during that time, he, too, has observed many of the changes in the city and optimistically foresees continued growth.

“Interest rates, although they might inch up, will remain relatively low, and the economy, although not good for everyone, has incrementally improved,” he said. “I don’t see much to stop this positive momentum, particularly as we get more things in Midtown.”

Hoover cited the opening of the Millworks and the expansion of the Harrisburg Midtown Arts Center as two important recent projects that have made the neighborhood more attractive to buyers.

“There are different venues I could point to, but it doesn’t necessarily have to be restaurants,” he said. “It’s just things that people can walk to.”

The desire to live in a walkable city is something that both Davis and Hoover have noticed from clients such as young professionals, first-time homebuyers and empty-nesters looking to downsize.

“I can’t put a particular amount of weight on it, but I believe the trend going forward is people wanting a house in a walkable community, and Harrisburg is definitely that,” Hoover said. “Some areas more than others, but that’s the biggest demand, particularly in Midtown. That’s a trend that I’ve seen for several years, but I’ve seen it grow in the last year or two years.”

The city’s walkability is not only attractive to potential homebuyers, but also to renters. The rental market is another facet of Harrisburg’s housing market that’s been trending up.

“The rental market was always good and remained good,” Hoover said. “Even during the time when people didn’t have the confidence in the overall market, they were at least willing to rent. They wanted to be in Midtown, they wanted to be in Uptown, but they weren’t convinced that maybe the market wasn’t going to get worse.”

And, in fact, developers have been responding to the growth in rental demand, with many new apartment buildings—particularly high-end renovations of historic buildings—coming on the market over the past couple of years. LUX, Walnut Court and COBA are a few examples of recently renovated multi-dwelling buildings. This year, both Harristown Enterprises and WCI Partners will add significant new rental inventory to downtown and Midtown.

Some of those renters eventually turn into homeowners.

“Renters who are renting upper-end properties, if they decide to stay, or when they decide to stay here, they turn into really good buyers,” Davis said. “They’re having a good experience in the city, and they want to stay.”

Both realtors also have had a growing number of clients moving to the city from larger metropolitan areas. These buyers, or renters, are attracted to Harrisburg because of the amount of space they can get for their hard-earned money compared to the cities they came from, the realtors said.

“Folks coming from those areas really help our values because they see value where natives don’t,” Davis said. “But do I see a big trend of that? I don’t know if it’s a huge trend, but it’s happening.”

What do the next five years hold? If demand continues, perhaps developers will begin to build single-family homes. The city’s new construction market—unlike the growing multi-family segment—has seen little action for many years.

“The city isn’t like Lower Paxton Township or Silver Spring Township, where they’re building new stuff all of the time,” said Davis. “[Zip code] 17102 doesn’t really have anywhere to go other than a few townhomes up at the [Broad Street] market.”

So far, Blouch appears happy with his choice to ditch “the boonies” for city life. Not only is he within blocks of places like Little Amps Coffee Roasters, Alvaro Bakery and Zeroday Brewing Co., but he’s met “tons” of people in his first year in Harrisburg.

“This works for me because I’m very social,” he said. “I’m more of a city person. I like being around other people.”

More Apartments: Harristown to Add to Downtown Housing Revival

August 7, 2015 | by Lawrance Binda

Harristown plans to renovate this row of buildings (except Walker’s) into high-end apartments and retail.

New apartments continue to spring up in downtown Harrisburg, as Harristown Enterprises plans to add 23 more units near Strawberry Square.

Harristown expects to start this fall on the renovation of a six-story office building at 18-22 S. 3rd St., which also houses El Sol Mexican restaurant, which will continue to operate. The building will feature 15 high-end, one-bedroom apartments, each measuring about 800 square feet.

Directly across the street, Harristown will renovate historic townhouses at 19, 21, 23 and 27 S. 3rd St. Those three-story townhouses will contain eight, one-bedroom and two-bedroom apartments, as well as commercial space on the ground floors.

The building at 21 S. 3rd “may be dedicated” to a new downtown co-working space of about 5,700 square feet, according to Brad Jones, president and CEO of Harristown.

This is the second time recently that Harristown announced it would convert downtown commercial space to apartments. Last month, it received City Council approval to renovate 21,000 square feet of office space and another 6,000 square feet of loft space to 22 apartments above a stretch of shops along N. 3rd and Market streets in Strawberry Square.

“We believe the market for high-end and unique apartments in the downtown is very strong, and we look forward to continuing to grow the downtown residential population,” said Jones.

All of these projects are slated for completion in spring 2016.

Over the past two years, downtown housing has experienced a rapid revival, with numerous office-to-residential conversions. Most recently, WCI Partners completed its Walnut Court Apartments, a 21-unit project at Walnut and Court streets that opened in July and is already mostly leased, according to WCI President David Butcher.

Harristown will partner with Select Capital Commercial Properties for a portion of its most recent project.

This historic office building is slated to be renovated as an apartment building.

August News Digest

July 31, 2015 | by Lawrance Binda

Reed Arrested, Arraigned

Seven-term Harrisburg Mayor Stephen Reed was arrested and arraigned last month on 17 criminal charges ranging from bribery to running a criminal organization.

In all, the state charged Reed with 499 criminal counts covering actions related to the Harrisburg Parking Authority and the Harrisburg School District, as well as city government.

The counts cover alleged actions for many well-known Reed-era projects, such as the incinerator retrofit, the effort to acquire museum artifacts, the Senators baseball team and Harrisburg University.

Debt accumulated under Reed eventually resulted in a financial crisis that led the state to appoint a receiver for the city, as well as a failed attempt by City Council to declare municipal bankruptcy.

Dauphin County District Justice William C. Wenner set bail at $150,000 unsecured, meaning that Reed did not actually have to post bond. He ordered Reed to surrender his passport and restrict travel to the confines of Pennsylvania.

After the arraignment, Reed and his attorney, Henry E. Hockeimer Jr. of the Philadelphia-based firm Ballard Spahr, made statements defending the 28-year mayor. Reed blamed the criminal charges on “misperceptions and politics,” while Hockeimer said Reed “carried out his role [as mayor] with dedication and integrity.”

Afterwards, Pennsylvania Attorney General Kathleen Kane publicly released the grand jury presentment, which detailed the evidence behind the charges. The presentment alleged that thousands of “artifacts” and “curiosities” purchased with public funds were found in Reed’s home and storage areas; that Reed diverted money from city borrowings for other purposes; and that he used city employees for personal reasons.

Market Report Released

The Broad Street Market Task Force last month released a long-anticipated report on how to improve the condition, management and overall operations of the historic Midtown market.

Chairwoman Jackie Parker told Harrisburg City Council that the market’s two buildings are in decent condition, but that they will require “large capital investments” over the next decade.

More immediately, the report strongly recommended changing the market’s management structure.

Currently, the Broad Street Market Corp. operates the market, with the Historic Harrisburg Association as its sole shareholder. The task force advised separating from HHA and transitioning to a nonprofit entity, which then could better pursue grants and other funding.

“It would be a newly established nonprofit that is dedicated to full-time fundraising for the market,” said Harrisburg Mayor Eric Papenfuse, who announced the 10-member task force early last year as one of his first acts as mayor.

That transition could take the better part of two years, said Parker, who also is director of the city’s Department of Community and Economic Development.

Under the new structure, the market’s two buildings would remain owned by the city, but ongoing repair and maintenance would shift to the nonprofit, which would be overseen by a board of directors composed of volunteers from the community and market stakeholders.

The report recommended a number of other operational improvements, including free WiFi, greater recycling efforts, extended hours, greater diversity of food options, a marketing budget and better litter management.

Separately, Joshua Kesler last month was named president of the Broad Street Market Corp. board, replacing Jonathan Bowser, who resigned in June. Kesler is owner of The Millworks restaurant and art studios across the street from the market.

Campbell Pleads Guilty

Former Harrisburg Treasurer John Campbell last month pleaded guilty to charges that he stole money from several Harrisburg-based non-profit organizations.

Campbell said he was guilty of two counts of unlawful taking, a felony, and one count of Charitable Act fraud, a misdemeanor. He also promised to make full restitution for the thefts, which total almost $30,000.

Campbell was accused of taking money from several groups, including Historic Harrisburg Association, the Stonewall Democrats and Lighten Up Harrisburg. He was not charged with theft relating to his position as city treasurer.

If Campbell makes restitution by his Sept. 15 sentencing, Dauphin County Deputy District Attorney Joel Hogentogler said he would agree to a sentence of probation.

Anti-Blight Bills Passed

Harrisburg City Council last month approved two bills meant to battle the continuing problem of blight in the city.

The bills, passed unanimously, create a registry of foreclosed properties and increase fines on real estate investors and speculators for code violations.

Under the first ordinance, banks will pay a $200 annual fee for each property on the registry. The properties then must be kept properly maintained and secured.

Under the second, the city will levy higher fines on “corporate owners” of properties cited for code violations than it does on residential owners.

The higher fines are justified because it costs the city money to track down the investors and speculators, who often live out of the area and are difficult to identify and contact because they hide behind corporate entities, said Mayor Eric Papenfuse.

Food Truck Rules Updated

Food trucks in Harrisburg must locate at least 100 feet from brick-and-mortar restaurants under an ordinance passed last month by the City Council.

Council unanimously approved an ordinance update that requires food trucks and other mobile food vendors from setting up within 100 feet of existing restaurants, 15 feet from building entrances and 15 feet from a fire hydrant.

The ordinance update was urged by several downtown restaurants, which have complained that food trucks set up near them during high-volume times, such as during lunch and on weekend nights, and negatively affect their business. They also have complained about grease and litter.

The mobile vendors also must cease selling by 2:30 a.m. and move from the area by 2:45 a.m.

The ordinance does not apply to food trucks that congregate during special events, such as the monthly Food Truck Feast held during 3^rd in the Burg.

HUD Funds Distributed

Harrisburg last month finalized the recipients of its annual dispersal of federal housing money.

The city received $3.1 million from three U.S. Department of Housing and Urban Development programs, most through HUD’s Community Development Block Grant program.

The city’s housing rehabilitation program received $451,806, the largest allocation, and the city police department received $250,000, which it plans to use to boost manpower in Harrisburg’s most troubled neighborhoods. The city’s demolition program got $111,114.

Other recipients included:
Fair Housing Council, $130,000
Tri County HDC, $100,000
Camp Curtin YMCA, $80,000
Christian Recovery Aftercare Ministry, $75,000
Habitat for Humanity, $70,000
Boys & Girls Club of Harrisburg, $60,000
Latino Hispanic American Community Center, $59,982
Heinz-Menaker Senior Center, $50,000
Mid Penn Legal Services, $30,000
Christian Love Ministries, $29,000
Codes Enforcement, $10,000

The city’s Emergency Solutions Grant Program received $164,603, and the Homeowner Improvement Program got $295,765.

More than $1 million will not go directly to recipients. Grant administration received $482,624, while debt service ate up $638,000. The latter item covers this year’s installment of repayment of a $3.8 million federal loan that Harrisburg backed for the failed (since revived) Capitol View Commerce Center.

Recovery Officer Appointed

Audrey Utley was appointed last month as the new chief recovery officer for the Harrisburg School District.

State Board of Education Secretary Pedro Rivera appointed Utley after a search committee recommended her. She recently retired as superintendent of the Steelton-Highspire school district and served a short, three-month stint as acting superintendent of the Harrisburg district in 2010.

Utley will continue the effort of trying to improve the financial and academic condition of the Harrisburg district, an effort begun by Utley’s predecessor, Gene Veno, who served in the post about two years before resigning in June.

Under Veno’s recovery plan, the district’s precarious financial situation stabilized, but the academic performance deteriorated further, according to state performance measures released last year.

2 Projects Get Green Light

More apartments are coming to Harrisburg, as the City Council last month approved land development plans for two substantial projects.

First, council unanimously approved Harristown Enterprise’s plan to convert 21,000 square feet of office space and another 6,000 square feet of loft space to six two-bedroom and 16 one-bedroom apartments above a stretch of shops along N. 3^rd and Market streets in Strawberry Square.

If all goes according to plan, work on the project would begin this fall with completion slated for spring 2016, said Brad Jones, president and CEO of Harristown Enterprises, which owns Strawberry Square.

Council then OK’d a plan by WCI Partners to transform the former Harrisburg Moose Lodge Temple at N. 3^rd and Boas streets into 33 one-bedroom apartments, with commercial space on the ground floor. WCI also plans to renovate three boarded-up townhouses on the property.

WCI President Dave Butcher said the project should begin in early autumn with completion expected next summer.

Transit Consolidation Urged

A state official last month urged the Harrisburg City Council to consider regional consolidation of mass transit services.

Area governments could save an estimated $2.3 million a year, mostly through reduced administrative staff, if they chose to consolidate into a single entity, said Toby Fauver, deputy secretary for multimodal transportation for the state Department of Transportation.

Fauver cited the potential savings as he briefed council on Phase 2 of the South-Central Regional Transit Consolidation Study, which recommends consolidation for most transit systems in south-central Pennsylvania.

If they decide to merge transit operations, the participating counties and municipalities would need to appoint representatives to a transition board that would decide such issues as structure, governance and operations. The consolidation would cost about $4.7 million to achieve, but the state would absorb that cost, Fauver said.

Changing Hands

Boas St., 106: K. Miller to A. Nascone, $130,000

Boas St., 314: B. Ostella to W. James, $99,900

Briggs St., 241: M. Simmons to C. Jeffers, $113,500

Calder St., 504: P. Maruszewski to H. Nguyen, $109,900

Catherine St., 1620: R. & M. Caplan to M. & V. Keyes, $31,000

Chestnut St., 2137: P. Bowman to G. Bierbaum & W. Alford, $184,900

Cumberland St., 117: J. & C. Kuntz to Cardinal Investments LLC, $81,900

Derry St., 2422: N. Foose to D. Brently, $61,900

Green St., 1910: WCI Partners LP to C. Reinhold & K. Hurst, $193,900

Green St., 3011: R. Snyder to M. Palermo Jr., $180,000

Herr St., 415: A. Antoun to J. Foreman, $54,900

Herr St., 1424: M. & A. Foreman to Bethesda Mission of Harrisburg, $275,00

Kelker St., 235: S. Woomer to D. Robinson & J. Vu, $99,900

Kensington St., 2408: PA Deals LLC to F. Frattarole, $63,500

Manada St., 1905: PA Deals LLC to G. & J. Modi, $96,000

North St., 1718; 2418 Jefferson St.; 2228 N. 4^th St.; 350 Harris St.; 352 Harris St.; 1813 Boas St. & 1833 Forster St.: R. Shokes Jr. & Shokes Enterprises to JDP 2014 LP, $497,000

N. 2^nd St., 405, Unit 2 & Unit 4: Belco Community Credit Union to Vinculum Inc., $410,000

N. 2^nd St., 1100: L. & A. Morato to S. & J. Toole, $45,000

N. 2^nd St., 2537: J. & M. McCarthy to N. Banting, $72,100

N. 2^nd St., 2821: D. & M. Anderson to J. & L. Witmer, $96,000

N. 2^nd St., 2904: J. Reitz & Webster Bank NA to F. & B. Pinto, $285,750

N. 2^nd St., 2926: J. & Y. Garner to M. & S. Bennington, $282,000

N. 2^nd St., 3118: A. Barlup to P. & M. Rowan, $152,000

N. 3^rd St., 1720: F. Phillipy to A. & A. Campoverde, $90,000

N. 4^th St., 1625: GWD Capitol Heights LP to J. Wolfe & K. Hunt, $103,300

N. Front St., 1525, Unit 103: K. Blum to A. McKenna, $214,900

N. Front St., 2401: E. & D. Black to J.A. Hartzler, $215,000

N. Front St., 2501: Harrisburg Builders Exchange to Poole Anderson Construction LLC, $415,000

Rudy Rd., 2401: C. Butler to B. Royster, $119,900

S. 18^th St., 946: W. & D. Shalan to Darna Investments LLC, $140,000

S. 21^st St., 971: Lee Estates LLC to T. Le, $100,000

S. 29^th St., 520: E. Cohen & Goodrich Assoc. to Goodrich Assoc., $125,000

S. Front St., 607: S. Farr to T. Edinger, $130,000

S. Front St., 711: Z. & J. Goodling to P. Moore, $180,000

State St., 1801: MAT Properties Inc. to Transcend Church, $99,000

Taylor Blvd., 52: PA Deals LLC to V. & S. Vdov, $56,900

Woodlawn St., 2359: Meier Norton FLP to Meier Supply Co., $406,800

Wyeth St., 1404: A. Weikert to F. Frattarole, $103,900

Wyeth St., 1412: PA Deals LLC to F. Frattarole, $103,900

Harrisburg property sales for June 2015, greater than $30,000. Source: Dauphin County. Data is assumed to be accurate.

Condensed Luxury: Increasingly, high-end living comes in smaller packages.

June 30, 2015 | by Rebecca Hanlon

It’s been said that, when it comes to urban trends, Harrisburg is often a decade-plus behind larger cities.

Therefore, it may be no surprise that a style of living already rooted in such places as Philadelphia and Washington, D.C., is only now migrating in. More and more, younger people and downsizing retirees are shunning large, mediocre space for well-appointed, well-located apartments that clock in at less than 750 square feet, say local real estate professionals.

“This is driven in large part by millennial preferences,” said David Butcher, president of developer WCI Partners. “In short, small but very nice is much preferred over large but ‘just OK.’”

A prime example is WCI’s Walnut Court Apartments, which has just been completed at the corner of Walnut and Court streets in a building that long housed the Keefer, Wood, Allen & Rahal law firm. Most of the 21 apartments are snug, one-bedroom units, but have high-end finishes and an industrial feel, which, according to Butcher, is popular among younger professionals.

“The market seems to be willing to exchange square footage for high-quality space—and will even pay a premium for it,” he said.

Demand for Convenience

Harrisburg’s flirtation with small-footprint luxury began about five years ago, when the old Boas Elementary School at the corner of Green and Forster streets was re-made into a boutique, executive-style apartment building. Brickbox Enterprises and Greenworks Development then reconstructed the dilapidated Furlow Building, which was rechristened the COBA, featuring units with a modern, clean design, granite countertops and stainless steel appliances.

Brickbox followed that project by tackling the conversion of one of Harrisburg’s premier historic buildings, the former Masonic Temple at N. 3^rd and State streets. Today, that building, known as The LUX, features 42 condo units ranging from 545 to 820 square feet, said Pete Weigher, president of TeamPete Realty Services, which manages the building.

At an average sales price of $150,000, the condos tie in granite countertops and stainless steel appliances, as well as luxury cabinetry and flooring. A rooftop patio, community lounge and fitness center also make it appealing for buyers who want a low-maintenance, urban lifestyle, Weigher said.

The short walking distance to downtown restaurants, the riverfront and businesses has been a huge selling point, he added.

“The demand for convenience has gotten higher,” Weigher said. “In this case, you have the architecture of something built in 1909 but with complete renovations. Everything from the plumbing, framing, heating and electric is new, but you’re still within that historical structure. It’s something affordable in a niche market.”

Small Looks Big

WCI stuck its toe into the higher-end, multi-family market with the redevelopment of two apartments above Little Amps Coffee Roasters at the corner of N. 2^nd and State streets. After the units rented quickly, the company bought and renovated Locust Street Apartments, which filled up after just two months, said Lori Fortini, operations manager.

Those one-bedroom apartments average just 650 square feet, but are decked out with high-end finishes, such as quartz countertops, tiled showers with frameless doors and bowl sinks. They also come with central air, a garbage disposal and a washer/dryer—necessities for most urban professionals, Fortini said.

And now that Walnut Court is done, WCI is undertaking its most ambitious project to date, building upon the trend for small-sized luxury. It recently received approval from the city’s Zoning Hearing Board to convert the former Moose Lodge/Ron Brown Charter School in Midtown into 33 one-bedroom apartments that will average 500 square feet each.

Kristine Werley, owner of Urban Interiors, is a design consultant for WCI Partners and has helped attract the clientele who walk into the small living spaces.

Having worked in Brooklyn and Philadelphia, Werley is excited to see something that feels like the big city finally coming to Harrisburg. To help the spaces not feel so small, she is drawn to open concept design, in which rooms flow from one to another without the obstruction of walls to divide the spaces. A large kitchen island and bar stools allow residents to cook, entertain and watch TV all in the same area.

Werley said she tries to use neutral colors so that the eye isn’t distracted in a space. The same style floor through various rooms also makes it flow together, she said. In addition, she blends old with the new, such as exposed brick and modern finishes, as a sort of signature for the apartments.

Werley said she sees the development of luxurious, small spaces as necessary to help recruit and retain young professionals.

“Harrisburg has been trying for so long to attract people,” she said. “If you get the right job here but not the place to live, you’re not getting that full, young professional feeling. We’ve found a way to give people a great apartment for that work-life balance, and they don’t have to pay the prices of a big city.”

As plans for the Moose Lodge project take shape, Fortini sees the perks of smaller apartments across the board.

“The biggest benefit for the city as a whole is going to be for the downtown businesses,” she said. “We’re bringing in people who are in the middle-income to higher wage bracket, making it a win for the city itself as an increase to the tax base.”

While forgotten structures finally get the attention they deserve, and life returns to parts of the city that long have been dormant, Harrisburg seems to be waking up to what younger people are after.

When people can really live in a city—work, sleep and play there—“that’s when exciting things can happen,” Fortini said. “That’s what Harrisburg is ready to offer.”

Disclosure: Alex Hartzler, TheBurg’s publisher, is a principal with WCI Partners.

A Bright Idea: Lighten Up Harrisburg gears up for its second Glow Run.

June 1, 2015 | by Rebecca Hanlon

Got glow gear?

Then you’re already prepared for this month’s 5K Glow Run, which, for a second year, will make the city a little brighter by raising money to install LED lights on streets that need it most.

Runners and walkers of all ages and fitness levels will fill Riverfront Park with neon glow sticks, necklaces, bracelets and a variety of other lights as they participate in the night-time run. And, if you lack any manner of glowing, blinking bling, don’t fret. You can always pick up some at the race.

“I was blown away by the people who responded and showed up last year,” said event coordinator Stacia Zewe of Lighten Up Harrisburg. “When you plan a party, you’re like, ‘Gosh, I hope somebody comes.’ I couldn’t believe how many people cared.”

Last year, $22,000 was donated to Harrisburg for lighting improvements along Front Street, Zewe said.

While the city donated labor for the installation of the lights, the money raised from the 5K helped replace 14 streetlights in that area, she said.

Lighten Up Harrisburg is no stranger to making the city shine brighter. The organization’s other projects have included the Walnut Street Bridge relighting and lighting work on Allison Hill.

Despite the improvement along Front Street thanks to last year’s run, the lighting project still must be completed, Zewe said. If the event can raise enough money, Lighten Up Harrisburg would like to focus on other streets, too.

“Overall, people were happy to see that something was done so quickly,” Zewe said. “Within a month of the Glow Run, we had replaced 14 lights on Front Street, so people could see that what they did helped make an immediate impact.”

To keep things fresh this year, the run will feature the fun street band No Last Call at the turnaround point to help keep runners and walkers motivated.

Also, last year’s after-party at Sawyer’s Cantina meant participants younger than 21 couldn’t celebrate post-race. In an effort to include all runners, a small party will be held at the starting point in Riverfront Park.

For Zewe, it’s still surprising to see the community event she dreamed up turn into such a popular race. A runner herself, she saw the need to provide better lighting in the city.

While she hasn’t created a hard financial goal for this year, she’s hopeful that even more money will be raised, largely due to corporate sponsors. WCI Partners, City House Bed and Breakfast, Mid Penn Bank and Road ID are among those contributing.

“Last year, I think all of us were blown away because the event was our baby, and it learned to crawl and run in the same night,” Zewe said. “It’s so different and such a good cause. It’s important to me that we keep that kind of excitement going.”

Lighten Up Harrisburg’s 5K Glow Run is set for 8:40 p.m. on June 6. The race starts in Riverfront Park, Harrisburg, just south of State Street. Pre-registered runners can pick up bibs and race information at TheBurg offices, 2601 N. Front St., 3 to 6 p.m., on June 5. Registration is $30 for adults and $20 for kids 12 and under. For more information, visit www.lightenupharrisburg.com.

TheBurg Podcast, March 20, 2015

March 20, 2015 | by Admin

Welcome to TheBurg Podcast, a weekly roundup of news in and around Harrisburg.

March 20, 2015: This week, Larry and Paul talk about the faintest glimpse of a conclusion to the grand jury probe into the city’s incinerator debt fiasco, a challenge to a City Council candidate’s run for office, a bid for a blighted Midtown building and council’s eyes for independent legal advice.

Special thanks to Paul Cooley, who wrote our theme. You can find his podcast, the PRC Show, on SoundCloud and in the iTunes store.

TheBurg Podcast can be downloaded by clicking on the date above or by visiting the iTunes store. You can also access the podcast via its host page, here.

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

January 30, 2015 | by J. Alex Hartzler

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 (3^rd 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.

Harrisburg, Let’s Get To Work: Have a great business idea? We might help fund it.

September 30, 2014 | by J. Alex Hartzler

Among the many hidden talents in our capital city is a burgeoning entrepreneurial class.

People of all ages are striking out on their own to build businesses and careers on their own terms, and they are backing up their ideas with hard work. These businesses, both small and large, make up much of the daily fabric of our city and provide the foundation of its creative lifeblood. For a city of such modest size (about 50,000 people), Harrisburg has more than its fair share of risk-takers and entrepreneurs.

Whenever asked, I always say that the hardest part of being an entrepreneur is taking that first step and giving up your day job. My path exemplifies this. I studied hard, completed college and law school, took a job at a leading law firm and, after only five years into my legal career, decided to quit and take a 50 percent pay cut with stock options at a start-up company formed by two immigrants from Morocco.

Not long after taking this entrepreneurial leap, two other partners and I purchased the company from its founders, dramatically grew its revenues and, a few years later, sold it to another company in California. It was, by any measure, a tremendous success. Had we failed, however, it would have been a very difficult and long road back for me to replace the income and considerable perks and prestige that I enjoyed as a lawyer. When I made the decision to leave my stable legal career, the path before me was precarious and uncertain. But, as it turned out, it was the best career decision of my life.

At their heart, entrepreneurs are a peculiar group. Being one of them (and married to another, very talented one), I am familiar with their many quirks, ambitions, unconventional outlooks on life and otherwise wily ways that can sometimes make them a bit foreign to others.

An entrepreneur is a risk-taker. He or she eschews convention in exchange for freedom and control. Whereas some paths are predictable, entrepreneurs revel in the unknown. Whereas some paths extend the status quo, entrepreneurs seek to disrupt it.

Entrepreneurship is a mindset, a constant way of thinking and being. Its practitioners are relentless, resilient and self-assured (some might say a little too much), but the best ones also listen and consider carefully the advice of a group they trust most (my “personal board,” as I call it), even if they sometimes ignore it.

Entrepreneurs are bold, yes, but also humble in the deepest sense, and from that humility springs an indefatigable drive to stay focused “like a dog on a bone”—never letting go. They always seek to get to “yes.” “No” is just another step on the path to getting there.

In a word, entrepreneurs are different. Culturally, we like to celebrate (and also sometimes malign) the feats of the individual entrepreneur. Names like Jobs, Gates, Ellison and Musk are associated with incredible accomplishment and success, just like the names of Ford, Rockefeller, Carnegie and Vanderbilt before them. It is true that entrepreneurs succeed (and often fail) individually like no other, due in large part to the traits described above. But it is equally true that success in entrepreneurship always contains a healthy dose of assistance from others who believed in them as much as they believed in themselves.

In that vein, just last year, Adam Porter and Adam Brackbill began an effort to formalize and promote entrepreneurship in the city. From their modest offices on N. 3^rd Street in Harrisburg, they provide office and creative space for those who wish to dream and create. St@rtup is a terrific new venture, and they and many others (not the least of whom is Lori Fortini at WCI Partners—an employee of the company I co-own, but also a true entrepreneur in her own right) have inspired me to expand my investments in the next generation of dreamers and doers.

Therefore, with some pride and excitement, I am pleased to announce to you, our readers, that I, along with several established business leaders, want to encourage and financially support other Harrisburg entrepreneurs. In short, we want to invest in your business.

Here are the criteria:

Own and operate a business that is either Harrisburg based or supports Harrisburg residents. We prefer that you live in the city, but having your business here is a great start.
Have invested your own money already. If you aren’t “all in,” you aren’t really trying. Most investors want to see “skin in the game.” We certainly do.
Fill a niche. Another restaurant or coffee shop will have to be truly exceptional to be considered, as we already have great offerings in those areas.
Get started. A mere business plan, without some preliminary action to get rolling, is very difficult to evaluate, let alone invest in. Showing initiative to get at least part of the idea into practice is important and exemplary.
Expect that initial investments will be modest—maybe $5,000 or $10,000. Follow-on investments are possible. But six-figure proposals will not be funded (at least not by us alone).
Make sure you plan to be profitable and convincingly show how. This is not charity; it’s business.
Apply. Send your idea, business plan and profile to [email protected] and to [email protected].

TheBurg has always reported on entrepreneurs and businesses that we find interesting. With this program, I hope to complement TheBurg’s coverage of local success stories by helping to get new ones off the ground.

The United States is still the land of opportunity. Let’s get busy, Harrisburg.

J. Alex Hartzler is publisher of TheBurg.

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