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And now back to typical stupid f*cking Harrisburg...
HARRISBURG
Lawsuits snag Aloft hotel project
3 parties grapple over rights to sell Restaurant Row property to developer
Thursday, January 18, 2007
BY JOHN LUCIEW
Of The Patriot-News
Is a project to build a Starwood Aloft hotel on Harrisburg's Restaurant Row losing some altitude?
A dispute over a purchase option on part of the land for the proposed hotel at North Second and State streets has spilled into Dauphin County Court, perhaps threatening the start of construction in July.
"The intent is to kill multimillion-dollar development and job creation in the city of Harrisburg," Mayor Stephen R. Reed said yesterday. "It shall be resisted with vigor."
The disputed land at 417-421 N. Second St. and 201 State St. is owned by John C. Harbilas, a city businessman and property owner.
In December 2004, Harbilas granted a seven-year option to purchase the land to Belco Community Credit Union, according to court records and real estate deeds.
At the time, Belco was considering expanding its headquarters onto the adjacent Harbilas tract.
Since then, however, the company decided to relocate its headquarters outside downtown. Belco then agreed to sell the optioned land, along with its own tract, to hotel developer J. Alex Hartzler for an undisclosed sum.
But when Belco moved to exercise its option in October 2006 and purchase the land from Harbilas at the agreed price of $474,490, Harbilas balked, according to court papers.
Harbilas claimed that Belco's attempt to transfer the option to Hartzler was not permitted under the option agreement. Harbilas responded with counteroffers for the land, first asking for $550,000, then $700,000, saying he had received a better offer.
Belco filed suit in county court seeking to enforce the option at the original price. Harbilas responded with a countersuit against Belco.
Harbilas filed a cross-claim against Hartzler, president of the Harrisburg-based WCI Partners. The suit states that Hartzler wrongly and prematurely announced his claim on the land and spoke to tenants about moving out.
Hartzler, whose $10 million hotel project whisked through Harrisburg's land-development approval process last year, said he remains confident that the dispute will be settled and the 13-story hotel will be built.
"I don't think it affects the project at all," Hartzler said. "I have a contract with Belco, and Belco needs to provide the land. This may all go away."
Lonny J. Maurer, Belco's president and CEO, said yesterday that he believes the company's option for the land is fully enforceable, despite the change in the intended use for the tract.
"The terms and conditions of the option will prevail," he said.
Maurer said he and the company felt that after the headquarters project fell through, the hotel represented a project that would be in the best interests of the city.
"This is great for everyone," he said of the estimated $10 million hotel project. "It will help to build the city; that is the greater good."
Harbilas refused to discuss details of the suit, saying the court papers speak for themselves. He said that far from trying to kill the hotel project, he generally favors the plans, along with most investment downtown. He said he is merely out to resolve a disagreement.
"I am supportive when developers like Alex Hartzler want to invest in the city," he said. "My family and I have been here for about 50 years. At the same time, we have some issues to resolve."
The 138-room Starwood Aloft hotel would include an outdoor pool, street-level retail space, a lounge and a 140-seat restaurant with a sidewalk cafe on State Street.
Starwood, which manages hotel brands including Westin and Sheraton, is rolling out the Aloft brand to target business travelers. Hartzler has billed the project as a perfect fit for Restaurant Row, the city's strip of bars, restaurants and nightclubs along North Second Street.
With all city approvals in place, Hartzler had hoped to begin construction in July, just as soon as work is completed on the adjacent Spring Street parking garage. Under that timetable, the hotel would begin checking in guests by Thanksgiving 2008.
It would be downtown's third major hotel, joining the Hilton Harrisburg and the Crowne Plaza Hotel.
A fourth hotel is planned for the nearby Barto Building at Third and State streets. If approved, that $14 million, 88-room hotel would open in mid-2008, according to developer Jules Patt of Hollidaysburg.