HARRISBURG-LANCASTER-LEBANON-YORK | South Central, PA | Regional Development Thread

[harrisburger]

sorry for my general disappearance from this thread, but i've been traveling a lot over the summer, and am currently at university at buffalo. i'll try to make some updates on my trips back home. thanks for the updates eastside!

[EastSideHBG]

Nice to hear, chuikov, and I completely agree.

No problem, harrisburger! Good luck with things!

[wrightchr]

it's great to hear from all of you guys

[chuikov]

it's Good to be around town again, thanks.

A couple things in H'burg:

I think the Cafe' in front of the parking garage on 2nd is a good idea. I know it's been discussed here before, but seeing it in operation is definitely good IMHO. The astro turf is a little odd, but the whole thing is a good use of the space in front of that damn garage.

The garage: I hate it. The building should have been built flush to the sidewalk with purpose-built retail on the street. I just hate it when architects come along with the idea to build back from the street on the main drag. It screws up the whole feel of the block. But H-burg is making the best of it with the little diner in the void. Aside from that, I think it's just a terrible parking garage. The automated system stinks, the traffic 'flow' is terrible and dangerous - full of dead-ends and blind spots. It's just a piece of shit. Thanks Parking Authority, but I'll find a space on the street from now on.

Done griping.

[EastSideHBG]

Originally Posted by chuikov

it's Good to be around town again, thanks.

A couple things in H'burg:

I think the Cafe' in front of the parking garage on 2nd is a good idea. I know it's been discussed here before, but seeing it in operation is definitely good IMHO. The astro turf is a little odd, but the whole thing is a good use of the space in front of that damn garage.

The garage: I hate it. The building should have been built flush to the sidewalk with purpose-built retail on the street. I just hate it when architects come along with the idea to build back from the street on the main drag. It screws up the whole feel of the block. But H-burg is making the best of it with the little diner in the void. Aside from that, I think it's just a terrible parking garage. The automated system stinks, the traffic 'flow' is terrible and dangerous - full of dead-ends and blind spots. It's just a piece of shit. Thanks Parking Authority, but I'll find a space on the street from now on.

Done griping.

I completely disagree and think Tom Sawyer's Diner is the biggest piece of crap, and I scoff at the city for wasting such prime real estate with that junk. Also, it further adds to the low-brow nightlife found in DT HBG IMO and that was one thing HBG did not need; there is enough of that already. But I guess the city had little choice when the developer of a mid-rise office building backed out, and something there is better than nothing...I guess...

Re: the parking garage, I like that garage and think it is one of the best looking ones in the city. The setback is there because, again, another building was supposed to be built in front of the garage, and THAT is what would've been built up to the street. It was a good move because I would rather see a useful bldg. front the street with the parking behind than vice versa. Too bad only half of the puzzle was completed, though.

But I do agree that the traffic flow of the garage is a little odd.

Speaking of parking garages, I hear the South St. garage is coming along nicely. Here is some info about it, and I must say that the rendering is really good and it fits in well with the area:

http://hpaparking.homestead.com/SouthSt.html

And a picture of the progress on State St.:

http://www.harrisburgnightlife.com/w...king-reprieve/

I was one of the few that I know that is actually FOR this project, and I am loving the unobstructed view to/from the Capitol already!

[EastSideHBG]

And what is going on in the water?!? I heard this was a concern all summer and the beach was closed for a majority of it. If this effects Kipona now it will be a total bust for the city this summer, as American Music Fest was ruined because of the flooding.


NEWS INFORMATION FROM

THE OFFICE OF MAYOR STEPHEN R. REED
City of Harrisburg
King City Government Center
Harrisburg, PA 17101-1678
Telephone: 717.255.3040


FOR IMMEDIATE USE
25 Aug 2006

RIVER E-COLI LEVELS AGAIN CLOSE CITY ISLAND BEACH

Mayor Stephen R. Reed today said the City Island Beach is once again closed to the public due to elevated E-coli levels. Results of the city’s latest water quality tests, taken on Monday, show that the levels have again risen above the state’s maximum quality level of 235 colonies per 100 milliliters, to 560 colonies.

Per the state Department of Health’s rules, the beach must be closed until future test levels indicate the rate has fallen below 235 colonies. Testing is being conducted daily as a result, with the next set of results due on Saturday morning. If those tests indicate the colonie level has fallen to below the maximum permissible amount, the beach will be immediately reopened this weekend.

Even though the city is required to only test water quality at the public swimming area of the Island, the Mayor directed that additional testing be done on both sides of the Island to provide more factual and timely data about potential water quality problems throughout the river.

“It remains a mystery as to why we are having this problem this summer,” said the Mayor. “Over the past 25 years we have never seen such elevated levels nor the frequency of such. Something is clearly amiss in the river environment on the west shore side, and we would hope this will not be an ongoing concern. “The City Island beach officially closes for the season after Monday, Sept. 4, Labor Day. The beach is remaining staffed even during closure

Reed said the city is only enforcing a ban on swimming at the public beach area on the northwestern side of City Island, as it has no authority to keep people out of the water elsewhere. “Today’s advisory serves as a warning to all persons that there may be elevated e-coli problems elsewhere in the river, and the public should respond accordingly.”

The Mayor said testing will continue frequently over the next several days to determine if the problem is continuing, as it may impact river activities scheduled for next weekend’s Kipona Celebration. Canoe and drag boat races, a bass fishing tournament and the Rubber Duck Regatta are all slated for next weekend. ###

[chuikov]

It's been a strange summer. We had drought, sudden food, and then drought again. It's a recipe for rotten water. Even in that high-flow and relatively clean river there will be nastiness.

Imagine if it were dammed up...

Anyway, back to the garages. Market square garage is user friendly, decent looking, safe, and well built. It's a very well designed and run facility.

River Street garage is just awful. The automation is a disaster. The traffic flows are a disaster. I guess it's not bad looking, but it has nothing else to recommend it. I've parked in it several times. Once, I was leading a caravan of engineers and construction guys and it was the only place where I knew we could all park. It's the first time I ever got backlash from guys about the facility we parked in. It was described as a "piece of shit" in several different contexts. I'll never be in it again.

The cafe in front is better than nothing. Human activity on the street is good and it can be bought out of there if something more grand comes along.

[chuikov]

It's been a strange summer. We had drought, sudden food, and then drought again. It's a recipe for rotten water. Even in that high-flow and relatively clean river there will be nastiness.

Imagine if it were dammed up...

Anyway, back to the garages. Market square garage is user friendly, decent looking, safe, and well built. It's a very well designed and run facility.

River Street garage is just awful. The automation is a disaster. The traffic flows are a disaster. I guess it's not bad looking, but it has nothing else to recommend it. I've parked in it several times. Once, I was leading a caravan of engineers and construction guys and it was the only place where I knew we could all park. It's the first time I ever got backlash from guys about the facility we parked in. It was described as a "piece of shit" in several different contexts. I'll never be in it again.

The cafe in front is better than nothing. Human activity on the street is good and it can be bought out of there if something more grand comes along.

[EastSideHBG]

Changing names...again LOL


Swatara Twp. hotel to become Sheraton

Thursday, August 31, 2006
BY TOM DOCHAT
Of The Patriot-News

The Wyndham Harrisburg-Hershey Hotel in Swatara Twp. is undergoing an $11 million face-lift and will become a Sheraton hotel in the fall.

The 348-room hotel at 4650 Lindle Road will be renamed Sheraton on Oct. 1, around the same time the Target and J.C. Penney stores are expected to open at the adjacent High Pointe Commons shopping center.

Chris Quilty, general manager of the hotel, said renovations began in late July and most of the work should be completed by mid-December. The renovations include gutting the guest rooms and installing new furniture, fixtures and carpeting.

All the public space is being upgraded, including the ballroom, lobby, meeting rooms and restaurant, he said.

The renovations will provide a "sort of upgrade residential feel" to the hotel, he added.

By Oct. 5, Quilty said, renovations to the hotel's public space should be complete and about 25 percent of the rooms should be finished.

All the guest rooms should be renovated by mid-December.

The name of the restaurant will be changed from Ashley's to Dog and Pony. A new chef has been hired from Hershey Country Club.

During the renovation process, the hotel is donating some of the used furniture to the Ronald McDonald House in Derry Twp.

Quilty said the hotel will donate furniture from 47 rooms tomorrow.

"From our perspective, this is a huge benefit," Quilty said.

The hotel has featured the Wyndham name since 2004. Before that, it was a Marriott for 24 years.

Sheraton is the largest brand of Starwood Hotels & Resorts Worldwide Inc. Guests at the Sheraton Harrisburg-Hershey will be able to participate in the Starwood Preferred Guest program, Quilty said.

Renovations at the hotel fit in with the new 310,000-square-foot High Pointe Commons shopping center scheduled to open in October.

The shopping center's two anchor stores, Target and J.C. Penney, are to open during the first week of October, according to Steve Evans of High Real Estate Group, a joint venture partner in the project.

[EastSideHBG]

Man, I have got to say that my heart goes out to my old town! All that revenue lost over July 4th because of the rain/flooding and now they get screwed over during Kipona too...it's going to be a rough year for the city.

KIPONA DRAG BOAT & CANOE RACES CANCELLED, BARGES BEING REMOVED

While 98% of the multitude of Kipona activities are set to unfold this weekend, Mayor Stephen R. Reed today reported that projected Susquehanna River level rises coming this weekend, as a result of expected major rainfall in a large part of the river basin, have resulted in a decision by the drag boat and canoe race sponsoring organizations to cancel their respective races that were set for the Kipona Festival on Saturday, September 2, and Monday, Sept. 4. All of Kipona’s other events and activities are occurring as scheduled, though some are being relocated to other areas of the waterfront.

http://www.harrisburgpa.gov/pressRel...a%20update.htm

[EastSideHBG]

Real Estate News:

Lobar Associates Inc. of Carroll Twp. was awarded a contract to design and build a McGrath's Emerald Grille restaurant at Capital City Mall in Lower Allen Twp.

The project includes a 5,000-square-foot restaurant and an exterior deck. Construction is to be finished late this year.

***********

Printer breaks ground for plant

Friday, September 01, 2006
BY TOM DOCHAT
Of The Patriot-News

By the fall of 2007, a long-vacant piece of prime Harrisburg real estate will be the new home of a printing company that hopes to double its employees.

Advanced Communications of Penbrook will occupy 115,000 square feet of a 215,000-square-foot building to be constructed at Cameron and Herr streets.

Ground was broken yesterday for the $28 million project. State and local officials worked together to prepare a financing package for the building, to be known as Capital View Commerce Center.

David R. Dodd II, president of Advanced Communications, said his 10-year-old business has 68 employees, but he hopes to create 86 more jobs after the building opens.

The company prints high-end magazines, catalogs and journals for businesses in the mid-Atlantic region.

Dodd said the business needs more space because "some of the machinery we want to add would not fit in our current facility" at 3000 Canby Street in Penbrook. He said some of the machines are more than 150 feet long, and "we just simply don't have that kind of space."

The state is providing $6.8 million in financing for the project. The funding includes $1.44 million through the Governor's Action Team, $5 million through the Redevelopment Assistance Grant Program and $350,000 through the Growing Greener II program.

"This has been a long, tedious, complicated" process, Mayor Stephen R. Reed said. He credited Gov. Ed Rendell with bringing the project to fruition.

Several Advanced Communications employees attended the ceremony yesterday. Laura Holmes, who has been with the company for nine months, said she's "looking forward to actually seeing the company grow." She said it's a good place to work.

Dodd said the building will be in a flood plain, but will be elevated at least two feet above the 100-year flood level.

Advanced Communications will occupy the manufacturing space in the building and some of the office space. Dodd said the building will have 100,000 square feet for additional tenants that could range from call centers to manufacturing, distribution or research and development operations.

About 12,000 to 14,000 square feet of space will be available for retail use at the high-visibility corner of the property. More than 50,000 vehicles pass the site daily.

More than 285 parking spaces will be provided.

The 10-acre property, long an eyesore, has been vacant or under-used since Tropical Storm Agnes in 1972. Reed called the land "one of the oldest industrial sites in Pennsylvania."

The property was once part of Harrisburg Steel Co. and is next to the Taylor-Wharton plant owned by Wormleysburg-based Harsco Corp.

Harsco donated the land to the Capital Region Economic Development Corp. in 1996. CREDC conveyed the property to a Highspire boat retailer in 2000, but nothing materialized on the property.

In 2004, Dodd announced his plan to expand and relocate the printing business to Cameron and Herr streets.

There had been talk that a nightclub might be considered for part of the building. Dodd said "that was purely a tenant approaching us about a potential development. We'll talk to pretty much anybody who's interested" in the site.

Linda Goldstein, vice president and chief operating officer of CREDC, credited Dodd with his persistence and commitment to the project over the past couple of years.

"That's called staying power," she said.

[EastSideHBG]

LOL what a joke! While other cities are booming with condos, HBG can't even get one off the ground...


Knackstedt asks court to resurrect condo plan

Friday, September 01, 2006
BY JOHN LUCIEW
Of The Patriot-News

An alleged clerical error by the Harrisburg city clerk's office could revive Mary Knackstedt's rejected plans to raze three mansions on Harrisburg's Front Street and replace them with condos.

Knackstedt said she was never given written notification of the City Council's Dec. 19 decision denying her development plans for a five-story, 32-unit condominium building on the tracts she owns at 2901-2917 N. Front St.

Knackstedt's legal team has filed a petition in Dauphin County Court seeking a ruling that would approve her plans.

In briefs filed over the summer, the city responded that the clerk's office did notify Knackstedt of the decision, but that the notification was made via e-mail Dec. 20, the day after the council meeting.

Knackstedt's attorneys, led by William Hoffmeyer and Robert Buzzendore of York, said she never received the e-mail and anything short of written notice was deficient.

A hearing in the case has not been set.

If Knackstedt wins court approval of her plans, the city would have no choice but to issue demolition permits for the three 1920s-era homes, Mayor Stephen R. Reed said.

Reed said Knackstedt has satisfied the requirements for the demolition permits, which are being held in escrow until development plans are approved.

The city had issued the permits in April 2005, but revoked them two weeks later.

This time, the permits would not be given until there's an approved development plan in place, avoiding the possibility of three empty lots on Front Street, Reed said.

"That would be the worst-case scenario," Reed said.

At least one city official, Councilwoman Linda Thompson, is chalking up the controversy over Knackstedt's notification to a clerical error.

Thompson, who chaired the city committee that held hearings on Knackstedt's plans, said she would have been copied on any correspondence on the case, especially notification of a decision. Thompson said she never received the notification, either.

"As far as I can see, we made an error; the city clerk made an error," Thompson said. "I was the chair of the committee, and there was nothing in any of my files saying Mary was notified."

Knackstedt, an interior designer, said she's eager to get on with the project, which she estimates has cost her $3.5 million so far. Knackstedt said she regrets it might take a court battle to get things moving.

"We always tried to do things right and not rock the boat," Knackstedt said. "I still believe the project has incredible value to the city."

She said the estimated $1 million luxury condos with views of the Susquehanna River would bring wealthy residents and a stronger tax base to the city. She said the project would increase, not detract from, the values of surrounding properties.

Knackstedt's project would stand 57 feet high on a 23,445-square-foot footprint, with underground parking for 146 cars.

The plans were met with criticism from surrounding neighbors and preservation groups, such as Historic Harrisburg Association. Her detractors packed meetings and papered neighborhoods with signs reading "Save our mansions."

Opponents said Knackstedt's "monolithic" building would block other residents' views, while razing the three older homes, which are not designated historic, and sap Front Street's character and charm.

But Knackstedt's concept of condos on Harrisburg's Front Street was followed by similar proposals. The city unveiled a plan to simultaneously promote and control high-rise condo development on an eight-block portion of historic Front Street.

The city is seeking to raise the height limits of buildings from the current 45 feet to spur condominium development between Verbeke and Maclay streets.

The zoning changes would affect efforts to develop the vacant tract at Front and Verbeke streets, as well as a plan to transform the Tracy Mansion into a restaurant and build up to 50 condos on the site.

Both projects are on hold until the council determines how high the building limit should go.

"It started a trend, didn't it?" Knackstedt said of her plan. "They used us as a model."

But she added that she's watched in frustration as other condo proposals were greeted much more warmly.

"It's a total disrespect of her role and what she's done in this city," said attorney Jane Alexander, a friend of Knackstedt.

Thompson said she was shocked at how Knackstedt was treated by a city known to go out of its way for developers.

"I've seen us bend over backwards for the favorites," she said. "I wish Mary well. It's just a shame she is suing City Council."

The council voted to deny both the preliminary and final development plans for Knackstedt's condo building, as well as a subdivision plan for the lots.

The reasons cited included traffic concerns, zoning problems, lack of landscaping and lighting plans and the city's position that a large condo building would not be in keeping with the charter and size of the surrounding buildings.

Knackstedt has listed her block of riverfront land for sale, asking $3.5 million. While reporting interest in the properties, Knackstedt said all of the prospective buyers also want to demolish the homes in favor of some type of development.

"No one wants the homes the way they are," she said.

[EastSideHBG]

A long read but well worth it...go HBG U!


Harrisburg U enrollment nearly doubles

High-tech university aims for family feel

Tuesday, September 05, 2006
BY JOHN LUCIEW
Of The Patriot-News

Opening for its second year, Harrisburg University of Science and Technology appears to have taken a quantum leap forward.

Its curriculum and programs have been stamped with approvals by various certification and accreditation boards.

That means course credits will be more transferable and students will be eligible for a wider array of state and federal loans and aid.

With fall undergraduate classes starting today, the downtown university is expected to nearly double its enrollment, to about 200 students.

http://www.pennlive.com/news/patriot...000.xml&coll=1

[danwxman]

Major hotel planned for downtown Harrisburg
Harrisburg Mayor Stephen R. Reed unveiled plans today for a new hotel to be built at North Second and State streets.

Reed said the 14-floor hotel is being privately financed by WCI Partners LP of Harrisburg, whose president, J. Alex Hartzler, has been a longtime city businessman and civic leader. Site preparation will begin in the spring, and construction will start in July. The hotel is expected to open in September 2008.

The upscale hotel will feature 148 luxury guest rooms and will be located in the midst of Restaurant Row, the waterfront and the Capitol complex. It will occupy the entire southeast corner of the intersection, with a heated outdoor pool, a fitness facility, valet parking, small meeting rooms, a lounge, a restaurant with outdoor dining, and other amenities. At least 70 new full- and part-time jobs will be created by the project.

There will be 2,700 square feet of retail space available on the street level of the hotel.

Reed said the hotel will occupy space that is currently vacant and where two existing structures on the southeast corner of Second and State streets will be removed. Parking for the hotel will be in the new South Street Parking Garage currently under construction behind the hotel site.
(from pennlive)

[EastSideHBG]

I hate to be so skeptical but I won't get my hopes up too high. I say this because I remember how excited I got when the news was announced that HBG was getting a new tallest and it was going to be a condo bldg. too. But within a few months from the announcement, the whole deal was off and it is now going to be the 16-story HBG U bldg. @ 4th and Market. Or the time I got excited about the condo plans at Front & Verbeke that still have yet to get off the ground. Or the time...

Okay, now with that out of the way...

Wow, that's pretty big news! It sounds to me that this site is where Belco was supposed to expand and had already demolished those buildings before they decided to jump ship and move to Swatara Twp. It's sure nice to see a project of decent size will be taking up that vital space!

And wow, what a location! I can see this hotel being a big draw for people doing work in the Capitol and/or for those that want to be right in the heart of the action.

[wrightchr]

the new hotel sounds great...if it can get off the ground, get approved, and get underway! i too have my doubts, but i'm excited to see another highrise going up in the city. speaking of highrises...here's an editorial about expansion of the archives tower at the capitol complex.


A new Archives site
Sunday, September 03, 2006
Tell someone there's a building in Harrisburg containing 205 million pages of paper and he's likely to guess it's the Capitol.

Close, but no cigar. It's that 20-story windowless tower across the street, tucked between the State Museum and the new Keystone Building.

The State Archives, by virtue of what's stored there, may be the most important structure in the commonwealth. It is the repository of land records, beginning with the 1681 charter from King Charles II granting William Penn a colony of "Pensilvania," and millions of other documents that legally undergird this state and its people.

You might think that in the nascent digital age we wouldn't have to rely on paper to prove who we are, but it may be that paper is more important than ever. Anyone whose hard drive has crashed or who has gotten a CD too close to a strong magnet can attest to the transitory nature of digital recordings. A piece of good paper, properly stored, can last hundreds of years. The proof is in the archives.

In a state so steeped in history, it's disappointing to step into the Archives tower. Not for what's there, or how well it's cared for, but for the scant accommodations for Pennsylvanians to come make use of these records. In a space no bigger than a good-sized living room, a few tables, with just a dozen or so chairs, are all that's available for researchers in history, genealogy, the law or other issues for which records are needed to document some facet of life in this commonwealth.

The Archives tower predates the widespread popularity of genealogical research, so perhaps those who built it can be forgiven for short-changing citizen inquirers. But the need to expand the space for such research is only one reason for building a new home for the Archives. More important is that the tower is running out of room. At the current rate of archiving -- 1,000 cartons of documents arrive each year -- space remains for just five more years of records.

Preserving this part of Pennsylvania history is the responsibility of the Historical and Museum Commission, which must decide which records to maintain for posterity and which might be stored elsewhere, perhaps by the state Library. A bill passed by the Legislature, for example, is going to be available everywhere -- it will be printed, published in law books and codes and posted on Web sites. The Archives preserves committee transcripts, notes or other material that would show the Legislature's intent in passing the law, so that our grandchildren -- and their lawyers -- will understand what led us to so restrict our lives.

The Legislature put $30 million in the capital budget for a new Archives facility, but the money has yet to be released by the governor. Ideally, the new building would be horizontal in design to allow consolidation of similar records and easier access by staffers retrieving documents for researchers. It would allow for expansion upward and outward, and would meet modern fire and safety standards.

WHERE WOULD it be? Ideally in or near the Capitol Complex, but in any case in a place where visitors could park and make use of it. The commission is looking at sites both in and out of Harrisburg, but the closer the archives are to the seat of government, the greater the benefit would be to both officials and ordinary citizens coming to the Capitol to conduct business.

Having to drive from the Archives to the state Library while researching genealogy, for example, would seem to nullify any convenience resulting from locating the new building near a major highway.

If the funds are released soon, a site can be chosen, a new Archives building designed and construction begun by next summer. Then sometime in 2008 or 2009, the core of our history -- nearly 70,000 cubic feet of bound manuscripts and paper files, more than 29,000 rolls of microfilm, nearly 450,000 photographic prints and negatives, 183,450 or more maps and drawings and more than 6,500 film, video and audio tapes -- would become that much more accessible to us and our progeny.

DALE DAVENPORT is editorial of the opinion pages: 255-8111 or ddavenport@patriot-news.com.

[EastSideHBG]

Originally Posted by danwxman

Reed said the hotel will occupy space that is currently vacant and where two existing structures on the southeast corner of Second and State streets will be removed. Parking for the hotel will be in the new South Street Parking Garage currently under construction behind the hotel site.
(from pennlive)

You know, when I reread that and pictured the site in my head, I am pretty sure they are talking about two nice rowhomes that sit there. It's a shame they will be lost and I am hoping very much that what they build there blends into the area well. With the new changes to State St., it will sure stick out like a sore thumb if it doesn't.

--I just looked at a pic and there are indeed rowhomes there in great shape.

Thanks for the article, Chris! I can't believe they are still talking about that, as I thought the new archives bldg. was a done deal a year or so ago. Very interesting to see the funds are on hold...

And some interesting specualtion about the hotel on another site. Hey, they could be right, who knows!

http://www.harrisburgnightlife.com/w...t-in-downtown/

[harrisburger]

H'burg's Restaurant Row gets $10 million hotel
Thursday, September 07, 2006
BY JOHN LUCIEW AND DAN MILLER
Of The Patriot-News
A 14-story, 148-room hotel proposed at State and Second streets would allow guests to check into rooms in the center of the action along Harrisburg's Restaurant Row.

"Here, you will be downtown, and you walk out the door and everything is there," said Mayor Stephen R. Reed, adding that the additional lodging would help the city land larger conventions and other events.

Dot-com millionaire J. Alex Hartzler, president of WCI Partners, a Harrisburg real estate investment group, announced yesterday that his company would invest more than $10 million to develop what he described as an upscale, boutique-style hotel on the former Belco Credit Union headquarters site.

The 100,000-square-foot building would include an outdoor pool, street-level retail space, and a lounge and 140-seat restaurant with al fresco dining on State Street.

Construction would begin next spring for a planned September 2008 opening.

The hotel would join the 341-room Hilton Harrisburg & Towers and the 261-room Crowne Plaza Hotel downtown.

It would be the first in the heart of what has become known as Restaurant Row, Second Street's thriving mix of restaurants, nightclubs and open-air cafes.

"This will only add to the experience of Restaurant Row and other downtown development," Hartzler said. "There is a need and demand for a new hotel."

Business is better than ever, said Joseph B. Massaro, general manager of the Hilton Harrisburg & Towers.

August was the busiest month since the hotel's opening in 1990, he said. And that was on top of three record-setting years in a row.

He added that the Hilton has averaged nearly 74 percent occupancy this year and is typically booked solid every Monday, Tuesday and Wednesday with business travelers staying downtown for meetings or conventions.

Massaro said he has no doubt the downtown can support a third major hotel.

"There are more people who want to stay in a downtown hotel than we are able to accommodate," he said. "An additional 150 rooms will allow more folks to do just that and will bring more business to the downtown economy."

The new facility would occupy the entire southeast corner of North Second and State streets and would feature a gym, valet parking and space for small meetings. It would create about 70 full- and part-time jobs.

Hartzler compared the project to a Marriott Courtyard for extended-stay business travelers, the primary market that seems to be driving downtown lodging.

"It is perfectly located for a wide range of potential users," Hartzler said, noting it would be a block from the Capitol.

Hartzler added that he is talking with several hotel chains and hopes to settle on a brand in the next several months. He said land for the project is under contract, including the Belco site and two adjacent properties. He did not disclose the price.

Massaro said the project is proof that the downtown market has come into its own.

"When I started in 1990, we had to sell people as to why they had to be downtown," he said. "Today, the city sells itself."

The new hotel would feed off this energy, but in a way distinct from the Hilton and Crowne Plaza, each of which offers far more meeting space and ballrooms.

Massaro said he sees the new hotel as catering more to young business travelers who relish the dining and entertainment options of Restaurant Row.

"It is targeting Gen X and Gen Y folks who are on the road who want to get out," Massaro said.

Crowne Plaza officials did not return calls seeking comment.

Mayur Patel, a lawyer for Hersha Hospitality Group, which owns 55 hotels, including some in the midstate, said this region benefits from state government, private business and strong tourism.

"I think it's a great project," Patel said of the new hotel. "The business is coming in. The demand generators to support another hotel are on the rise."

"It's not the number of rooms; it's the type of facility," said Tom Powers, a local commercial developer. "Even though the Hilton and Crowne Plaza are there and successful, this new product complements them."

JOHN LUCIEW: 255-8171 or jluciew@patriot-news.com DAN MILLER: 255-8440 or danmiller@patriot-news.com



if you go on their site, there's a picture of the buildings it's replacing. those were the buildings which were already slated for demolition with the belco proposal. with outdoor seating on state street (finally) and new retail space, this is the perfect thing for second street. also, i came home late wed. night, and caught a report on abc27 about a new building, but i only caught a glimpse of the model. if this hotel is that building....i must say i'm really excited

edit: click on the evideo button on this page to see a good view of the model.
http://www.abc27.com/news/stories/0906/358683.html

[EastSideHBG]

Belco had already demolished the buildings they needed to and that is what created some of the fuss when people found out they decided to do a 180 and leave the city. But eh, whatever, I like the design of this hotel and here's to hoping it is completed, because the media and the Mayor seem to be very quick to point out this is just a propsal at this stage...

Another good article about DT:


Investors feed off downtown boom long in the making

Long public push builds momentum for investment

Thursday, September 07, 2006
BY JOHN LUCIEW
Of The Patriot-News

Development of Harrisburg's downtown appears to be feeding off its own momentum.

Yesterday's announcement of a proposed 14-story hotel and restaurant at State and Second streets translates into a $10 million investment downtown.

But unlike the development of the downtown's two other hotels -- the Hilton Harrisburg & Towers and the Crowne Plaza Hotel -- the money is all private.

Dot-com millionaire J. Alex Hartzler, president of WCI Partners, a Harrisburg real estate investment group, said his hotel wouldn't be possible without the other private development that has transformed Second Street into a drinking and dining destination.

"I don't think that many people would have thought it possible a few years ago," Hartzler said of the privately financed hotel.

Mayor Stephen R. Reed said the project is proof that the downtown's recovery is real, sustained and convincing to private investors.

"The private sector now fully recognizes Harrisburg as a viable, productive place," he said.

"It's taken a lot of time, effort and public-sector investment to bring us to this point."

Reed described downtown's resurgence as a decades-long effort that needed a big push from the city.

To open the Hilton in 1990, Reed said, he had to orchestrate what he called "the most complicated financing" of his more than 20 years in office.

The $45 million deal included three mortgage pools and couldn't have been done without $7.5 million in federal grants and $1.8 million from the city to acquire, clear and prepare the site on Market Square.

Likewise, Harrisburg paid $2 million to buy the Ramada hotel in 1996, rescuing it from possible closing when the Florida-based chain that owned it went bankrupt. Harrisburg later sold the hotel for $3.94 million, with the buyer investing $12.5 million more to renovate it into what is now the Crowne Plaza.

"For a long time, to induce and spur economic development, the city had to use a smorgasbord of incentives," Reed said.

These days, Reed said he doesn't have to spend nearly so much time fanning embers for a project to catch fire.

"Private investment firms are more and more taking over," he said. "That should always be the long-range goal of any economic development program."

Reed estimated that the city's seen a total of $920 million in private investment in the last five years. Private money not only eases the burden on the city and its taxpayers, but makes for quicker results.

In the case of the proposed hotel, Reed said a spring conversation with Hartzler turned into the fleshed-out project unveiled yesterday. By contrast, Reed said he worked on the Hilton project for four years.

"It's all private financing, so he can move at his own pace," said Reed, who predicted that the next wave would be retail businesses.

The proposed hotel building is to include 2,700 square feet of street-level retail space.

While there was no public financing needed for the hotel, Reed said it couldn't have been done without a related public project, the adjacent South Street Parking Garage.

Work on the 750-space garage is continuing, with a planned opening of July. And just as the 2001 opening of the River Street Garage in the heart of Restaurant Row is credited with fueling the city's restaurant boom, Reed said the hotel needed convenient parking.

"Without that garage, the project would have difficulty proceeding," he said.

********************

Meet the president of WCI Partners
Thursday, September 07, 2006

J. Alex Hartzler, the president of WCI Partners, the company planning a 148-room hotel, has been a fixture in Harrisburg's business community since moving to the city in 1995.

A Lancaster County native and a lawyer, Hartzler, 38, has been involved in residential redevelopment, was a partner in one of the midstate's most successful technology companies, and was a founder and the first president of the Harrisburg Young Professionals.

As an executive vice president of Webclients.net, an online advertising agency, Hartzler began buying and renovating residential properties in the city.

The majority of the almost 20 midtown and uptown properties Hartzler bought were single-family houses that had been divided into offices or apartments. In most cases, Hartzler restored the properties as single-family houses and sold them.

Last year, Webclients.net was sold for $141 million to California-based ValueClick.

Hartzler initially stayed on but then left and founded WCI Partners with his former Webclients.net partners.

This year, Hartzler described WCI Partners as a $5 million real estate investment fund. At the time, he said WCI hoped to buy and rehabilitate as many as four city houses a month and resell them for between $100,000 and $200,000.

[EastSideHBG]

NEW CUMBERLAND

Borough seeks grant to clean up downtown

Friday, September 08, 2006
BY CHRIS A. COUROGEN
Of The Patriot-News

Plans to extend New Cumberland's downtown improvements beyond Bridge Street advanced Wednesday night when borough council approved a grant application that would pay for the project.

The $270,000 project, spearheaded by the Cumberland County Redevelopment Authority, would bring new sidewalks, crosswalks, streetlights and other upgrades to blocks of Third Street adjacent to Bridge.

The borough's Olde Towne Association has found money for the first phase of a $1 million improvement plan for parts of Bridge Street between Second and Fifth streets.

"This will allow the borough's downtown streetscape improvements along Third from Market Street to Reno Avenue. It would complement those improvements," Chris Gulotta, executive director of the redevelopment authority, told the council.

The money would come from a $368,000 grant from the state's Elm Street Program. The county would provide the local matching share.

The Bridge Street project is also being funded through state grant money, with the Olde Towne Association providing the local match.

"It is very significant that the projects won't impact the local tax base," council president Jack Murray said.

The grant application also seeks money for residential facade improvement grants that would be made available to residents in a roughly 40-block area east of Ninth Street and north of Geary Avenue.

The grants of up to $5,000 will be available for exterior improvements.

Property owners will contribute 10 percent to 50 percent of the cost of the improvements, depending upon their income.

The county hopes to get state approval of the grant application by the end of the year, with construction starting in the spring.

Gulotta said the redevelopment authority hopes to make an announcement next week on plans to buy and rehabilitate the former Iroquois Hotel at Third and Market streets. That proposal calls for restoring the building's red brick exterior, with retail space on the first floor and apartments for seniors with moderate incomes on the upper two floors.

The county had planned to acquire five or six rental properties on Third between Market and Reno Streets, which would be renovated and sold to first-time buyers.

Those plans will likely be scaled back to just one or two homes because "funds are becoming scarce," Gulotta said.