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  #2481  
Old Posted May 2, 2008, 11:18 AM
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That is going to be a good looking building. Nice color of stone too. I am not familiar with the Soilders Grove. Is that the place where they list the metal of honors?
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  #2482  
Old Posted May 2, 2008, 12:07 PM
MidtownMike MidtownMike is offline
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Some recent or upcoming developments/happenings:

OLDE UPTOWN RIBBON-CUTTING CEREMONY MAY 9

Join WCI Partners, LP for a ribbon-cutting ceremony at 2 p.m. on Friday, May 9 at the corner of Green and Peffer streets.

For the past two years WCI Partners, LP has been diligently working to revitalize this neighborhood. They have built 12 new townhomes on land that had been vacant since the 1972 Agnes Flood.

Along with this new construction, WCI Partners, LP and its development partner, Green Street Properties, are in the process of renovating over 85 existing homes within this neighborhood. This project represents over $16,000,000 in new investment and signifies a bold new step in Harrisburg’s ongoing residential renaissance.

MIDTOWN ARTS CENTER GROUNDBREAKING

On April 23, the City of Harrisburg held a groundbreaking ceremony to kickoff the restoration and renovation of the PAL Building on 3rd Street in Midtown Harrisburg, which will be transformed into the Midtown Arts Center. Mayor Reed and John Traynor, one of the founders of the Midtown Arts Center, spoke at the event.

The Center will feature a film office that will promote Harrisburg as a destination for film companies to use as a backdrop for motion picture and commercial shoots; a restored art deco playhouse for live theater and events; sketch studios for local artists; Cafe Sip, a place to eat, drink and meet friends; and a swimming spa.

Plans to help expand the Harrisburg Independent Film Festival and to organize a Harrisburg Playwrite Festival are also in the works.

To stay up to date on renovation progress, visit the Midtown Arts Center website at www.harrisburgarts.com.
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  #2483  
Old Posted May 2, 2008, 9:11 PM
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That is going to be a good looking building. Nice color of stone too. I am not familiar with the Soilders Grove. Is that the place where they list the metal of honors?
Yes, it is the large, grassy area between the complexes where they honor PA soldiers from the wars and conflicts.

Cool pics, Chris, thanks! I think this project is one of the better ones and I LOVE the stone, how well it seems to be coming along and how well it blends in (yet still stands out).
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  #2484  
Old Posted May 5, 2008, 5:52 PM
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Firm bids $215 million to lease Harrisburg parking garages
Posted by ahayakaw May 05, 2008 12:00PM

An investment firm has offered Harrisburg $215 million for a 75-year lease of nine city parking garages, two public lots and 1,000 metered spaces downtown.

North American Strategic Infrastructure Partners of New York City would pay the money in advance and would operate, market and maintain the parking facilities for 75 years, at which time the properties would revert to city control. City officials say the public-private lease arrangement, which was sought by Mayor Stephen R. Reed, would allow the Harrisburg Parking Authority to pay off the $114 million in debt tied to the parking garages.

In addition, the city would be able to pay down an estimated $88 million in unsecured bond debt that has crimped the city's cash flow. According to city estimates, these debt reductions would free up about $11.8 million annually -- or more than 10 percent of the city's $111 million budget -- allowing the city to expand services.(Me: or possibly even lower taxes...hint hint).

The details of the proposal are to be made public today.

The deal would have to be approved by the parking authority board and by the City Council, which is expected to hold hearings on the matter. If approved, the deal is scheduled to close in August.

The company was the high bidder following a three-step proposal and bidding process that Reed initiated last year. In all, 20 companies submitted proposals, and six finalists placed bids on the parking facilities.

The only city-owned parking facilities not included in the proposed lease arrangement are those on City Island, which are subject to a revenue sharing arrangement with the Harrisburg Senators baseball club.
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  #2485  
Old Posted May 6, 2008, 12:52 PM
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Follow-up to the garage/meter lease story from today's Patriot-News:


A $215 MILLION OFFER FOR HARRISBURG'S PARKING SPACES
DEAL OF THE CENTURY?
Reed would reduce taxes for homeowners, but hits wariness on City Council
Tuesday, May 06, 2008
BY JOHN LUCIEW
Of The Patriot-News

The deal has the potential to be an economic game-changer for Harrisburg.

Virtually overnight, city government would go from cash-strapped and struggling to handing back property tax money to homeowners and beefing up sagging services.

It all rests on a groundbreaking proposal unveiled Monday to lease about 8,500 public parking spaces to a private operator for 75 years in return for a one-time payment of $215 million.

Mayor Stephen R. Reed, who initiated the deal last year by requesting proposals from companies, called it "one of the most significant financial opportunities to come along in a century or more."

Several members of City Council, which would have to sign off on the deal, were more cautious in their assessments. They promised a full and fair public hearing for the proposal and lots of questions on its details.

"Any opportunity that affords us a way to pay down or eliminate our debt, we're obligated to scrutinize," council President Linda Thompson said.

Thompson added that she'll be in no rush to "auction off" what she called Harrisburg's "greatest asset" -- the nine city parking garages, two public lots and 1,200 metered spaces at stake in the proposed deal. Parking facilities on City Island would not be affected.

"I don't think we will jump or should jump into this," she said.

Reed called it an "easy" decision. He said the lease would put a city asset that largely serves out-of-town commuters to work for city homeowners by financing rebates of city property taxes this year and tax rate cuts in 2009.

"Homeowners are the single biggest beneficiary in this," he said. "I think we should be rewarding people who have invested their money, time and effort into restoring homes in Harrisburg."

Reed is proposing giving full rebates of 2008 city property taxes to homeowners who earn less than $40,000 annually, and 50 percent rebates to all other homeowners. Commercial owners and landlords would get 10 percent rebates. He declined to say how much the city would reduce taxes next year.

Meanwhile, Reed said he would use money freed up by paying down city debts to hire 10 police officers this August and another 10 next year. All told, Harrisburg would add 25 officers over two years, with five hires already slated for this July.

Plus, Reed would add 15 municipal workers -- everything from street sweepers and code officers to park rangers -- to fill depleted ranks late this summer. The hiring would include a new blight task force to clean up vacant lots and reduce squalor in neighborhoods.

Reed said the fresh blood is needed since entire trash collection and street sweeping schedules can be thrown off by as few as four city municipal workers calling off on a given day.

"We're operating at bare bones," he said.

Under the deal, North American Strategic Infrastructure Partners, a New York City investment firm, and LAZ Parking of Hartford, Conn., would pay Harrisburg $215 million up front for the 75-year lease. The companies would maintain, operate and even expand Harrisburg's public parking facilities for the lease period, but the Harrisburg Parking Authority would retain ownership and oversight.

Harrisburg plans to use the cash to pay down $113 million in debt tied to the parking facilities and an additional $93.5 million in unsecured city debt and interest. None of the funds would go toward the troubled city trash incinerator, which is strapped with more than $230 million in debt.

Reed estimated that paying down the city debt would free up about $11 million annually -- or about 10 percent of the $111 million city budget -- and save at least $60 million in future interest.

But council Vice President Dan Miller said the city parking authority already is returning revenue to the city to the tune of more than $4 million annually.

Miller said the true test of the deal is not the short-term cash windfall, but the value the private partners can add to the city parking operations.

That's something that chief investor Jacob A. Frydman said he plans to do -- first by adding features such as credit-card payment machines and services like valet parking up and down Restaurant Row and later by rebuilding aging facilities like the Walnut Street garage and erecting new facilities where needed.

"We have really come to love the city, and we are thrilled to be part of its future growth," he said.

JOHN LUCIEW: 255-8171 or jluciew@patriot-news.com

©2008 The Patriot-News
© 2008 PennLive.com All Rights Reserved.
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  #2486  
Old Posted May 6, 2008, 1:27 PM
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Just heard this story yesterday. What is everyones opinions. I was wondering if the $4M was a $4M profit or if it was what the garages brought in.

I am going to put together a spread sheet doing some financial projections beyond the "Deal of the Century" analysis. I am guessing that it is not a good deal for the city.

Anyone know the average length for the lifetime of those loans1? I think this is a deal that should be shot down aggressively. Let the obsinate city council spring to the rescue.
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  #2487  
Old Posted May 6, 2008, 7:26 PM
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Ok these numbers are crude.

The facts as I understand them. Along with approximations I have made.

  • The debt cost the city $11M a year.
  • The garages make $4M a year above that $11M cost
  • The debt has a maximum life of 20 years (assumption)
  • cost of space rental increases in a linear fashion (assumption, least revenue generated case) make allowed is a 2 fold increase

therefore I made the calculation that after the first 20 years the garages retire their debt and will make an additional $11M a year on top of the $4M+

From year 21 to year 75 the garages net $605M dollars total.

Current net profits (after paying loans) increases linearly from $4M today, to $8M in year 75. This nets $451M over the 75years.

total potential profits from the garages are $1.06B that is billion dollars.

With these numbers it doesn't make sense. Or roughly 10 years of the citys current budget not accounting for inflation)
Now if it is actually that the garages produce $4M of revenue at the cost of $11M in loans then dump the property. My same analysis using those conditions nets $231M after 75 years Likely the construction loans are not for 20 years, but still it has very poor financials, and like the mayor says it is basically subsidizing the surrounding communties...
crs921 could you send this out to your council contact list?
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  #2488  
Old Posted May 6, 2008, 8:29 PM
MidtownMike MidtownMike is offline
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Ok these numbers are crude.

The facts as I understand them. Along with approximations I have made.

  • The debt cost the city $11M a year.
  • The garages make $4M a year above that $11M cost
  • The debt has a maximum life of 20 years (assumption)
  • cost of space rental increases in a linear fashion (assumption, least revenue generated case) make allowed is a 2 fold increase

therefore I made the calculation that after the first 20 years the garages retire their debt and will make an additional $11M a year on top of the $4M+

From year 21 to year 75 the garages net $605M dollars total.

Current net profits (after paying loans) increases linearly from $4M today, to $8M in year 75. This nets $451M over the 75years.

total potential profits from the garages are $1.06B that is billion dollars.

With these numbers it doesn't make sense. Or roughly 10 years of the citys current budget not accounting for inflation)
Now if it is actually that the garages produce $4M of revenue at the cost of $11M in loans then dump the property. My same analysis using those conditions nets $231M after 75 years Likely the construction loans are not for 20 years, but still it has very poor financials, and like the mayor says it is basically subsidizing the surrounding communties...
crs921 could you send this out to your council contact list?
I don't think the $4 million is profit...I think it's revenue. Expenses (labor, energy, yadda yadda) need to be taken into account.
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  #2489  
Old Posted May 6, 2008, 8:31 PM
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then I would say go with my last paragraph and sell (lease) the garages. Could the mayor be making a good decision for once?
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  #2490  
Old Posted May 6, 2008, 8:49 PM
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I wonder what happens to the HPA if this deal goes through? I'm sure that is the "behind the scenes" cost savings the city is banking on but doesn't want to discuss publicly for obvious reasons.

I'm mixed on this deal and on city parking authorities in general. What bugs me about them is that they typically have very little to show for all that they take in throughout a year, which of course begs the question, "Where the hell is the money going then?!?"
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  #2491  
Old Posted May 10, 2008, 3:03 PM
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Urban renaissance
Midtown neighborhood undergoes $10 million restoration effort

Friday, May 09, 2008
BY JOHN LUCIEWOf The Patriot-News

Construction is booming in a section of Harrisburg that hasn't seen meaningful investment since the flooding of Tropical Storm Agnes in 1972.

Painters perched on ladders apply much-needed fresh coats to porches, window frames and awnings of turn-of-the century row homes along the 1800, 1900 and 2000 blocks of Green, Penn and Susquehanna streets.

From within the old homes come the rumbling of renovation. Old ceilings, walls and crumbling plaster are knocked down to the studs so interiors can be reappointed with open floor plans and modern conveniences.

Seedlings are taking root along the sidewalks, and the spring air is thick with the fecund odor of freshly applied mulch.

They are the sights, sounds and smells of a neighborhood being reborn. Even the name is new, as proclaimed by the banners hanging from old-style street lamps: "Welcome to Olde Uptown," they read.

The audacious, $10 million reclamation effort, financed mostly with private funds from two companies -- WCI Partners and Green Street Properties, will be feted with the pomp and circumstance of a mayoral ribbon-cutting today.

But developers J. Alex Hartzler of WCI and Wendell Hoover of Green Street weren't about to wait for such formalities.

They said about 25 of the nearly 100 homes being remodeled or built in the four-square-block area have been sold.

All are going for market rates -- the low $100,000s for renovated townhouses and the low $200,000s for the 2,500-square-foot new homes.

"The No. 1 word I hear is, 'Wow, we didn't know this existed in Harrisburg,'" Hartzler said of the reaction at open houses.

The strip of new row homes that stretches along the eastern side of the block of 1900 Green Street is at the center of the project.

But Hartzler said he realized early on that it wouldn't be enough to plop down 16 new townhouses in the middle of a neighborhood in transition.

If he were going to lure buyers north from the successful rebirth of midtown and the rejuvenation wrought by Capital Heights, Hartzler said he knew he would need to stabilize the surrounding neighborhood as well.

So about two years ago, he and Hoover began quietly buying long-neglected properties from landlords eager to cash out at anywhere from $30,000 to $60,000 per house.

Now, with 85 properties undergoing renovation, coupled with the 16 new units, there's enough critical mass to transform the neighborhood, Hartzler said. His motto for the neighborhood is safe, clean and green.

West Philly transplants Beth and Matt Hunter were among the early buyers. They purchased their renovated row home in July when it was still a gutted shell and construction of the townhouses was in the early stages.

But they saw the vision.

They selected the amenities and color schemes for their house and watched as a new neighborhood grew around them.

The Hunters and their two sons, Asher, 3, and Zephan, 17 months, revel in their spacious three-story a stone's throw from Riverfront Park.

It was far more home than the cramped ranches their budget would have bought in the suburbs. And the mortgage is affordable enough for Beth Hunter to be a stay-at-home mom.

"There was no way we'd be able to afford a home that's 2,500 square feet and custom-built anywhere else," she said.

Niki Williams just signed a contract for one of the townhouses. It's among seven of the first dozen built that have sold, Hartzler said.

After moving to Harrisburg from Washington, D.C., six years ago, Williams said she never wanted to live anywhere but the city, and she sees Olde Uptown as the next neighborhood on the rise.

"I'm so excited about this house," she said. "They'll be no maintenance, and I don't mind being a little further from downtown."

JOHN LUCIEW: 255-8171 or jluciew@patriot-news.com

HOTEL UPDATE

WCI Partners is also the developer of the proposed 13-story, 138-room Aloft hotel at Second and State streets. Under a joint venture, Hersha Development Corp. is leading the project. WCI President J. Alex Hartzler said the companies are finalizing construction contracts and locking in prices in advance of a projected ground-breaking late this year. The project, announced by WCI in 2006, would be the first hotel built in the city since 1990.
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  #2492  
Old Posted May 11, 2008, 12:56 AM
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Midtown restoration effort

Quote:
Originally Posted by EastSideHBG View Post

Seedlings are taking root along the sidewalks, and the spring air is thick with the fecund odor of freshly applied mulch.

They are the sights, sounds and smells of a neighborhood being reborn. Even the name is new, as proclaimed by the banners hanging from old-style street lamps: "Welcome to Olde Uptown," they read.

"The No. 1 word I hear is, 'Wow, we didn't know this existed in Harrisburg,'" Hartzler said of the reaction at open houses.

The strip of new row homes that stretches along the eastern side of the block of 1900 Green Street is at the center of the project...

Now, with 85 properties undergoing renovation, coupled with the 16 new units, there's enough critical mass to transform the neighborhood, Hartzler said. His motto for the neighborhood is safe, clean and green.
I have a few pictures of the new units referred to in this article. I'm on the road right now, but will be home next week and will post the pics for everyone to see. This area is walking distance from me, so its easy to get pics.
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  #2493  
Old Posted May 11, 2008, 6:33 PM
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Originally Posted by chris.butcher View Post
I have a few pictures of the new units referred to in this article. I'm on the road right now, but will be home next week and will post the pics for everyone to see. This area is walking distance from me, so its easy to get pics.
Cool, I'm looking forward to seeing the pics!
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  #2494  
Old Posted May 12, 2008, 3:21 PM
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I had a friend I helped move out of the 1900 block of Green street last September. I hope it has changed a lot. At the time they were just starting the construction of the new homes, but there was plenty of rift raft on the street. I don't want to sound negative, but I wouldn't have lived there then.
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Old Posted May 14, 2008, 4:05 AM
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CUMBERLAND COUNTY

GONE FOREVER

Dangerous ramp from Route 15 to close
Monday, May 12, 2008

When the massive project to widen and revamp the Routes 15/581 corridor in Camp Hill was designed, one of the safety issues for the state Department of Transportation was the ramp from Route 15 north onto Route 581 west.

The ramp is used daily by about 5,000 motorists who have virtually no room to accelerate and merge. In the last five years, it has been the scene of two fatal crashes.

Wednesday night, weather permitting, it will be closed.

Forever.

A temporary ramp, new traffic lights, signs and message boards will help motorists wind their way through as the project progresses.

The project won't be completed until 2011. Frank Cozzoli, The Patriot-News FOR MORE, SEE PAGE B4.
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  #2496  
Old Posted May 14, 2008, 12:24 PM
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I share you sentiments, but I am going to miss accelerating towards a concrete wall.
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  #2497  
Old Posted May 14, 2008, 9:34 PM
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I share you sentiments, but I am going to miss accelerating towards a concrete wall.
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  #2498  
Old Posted May 15, 2008, 12:48 AM
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Location????

Five-story building to go up in Midtown Harrisburg
by JERRY L. GLEASON, Of The Patriot-News
Wednesday May 14, 2008, 12:51 PM
Ground will be broken in November for a five-story, $13 million mixed residential and retail building that will be the first component in Harrisburg's Northern Gateway project.

The building will feature a restaurant and neighborhood retail shops on the ground level and more than 40 residential units on the upper floors.


Mayor Stephen R. Reed and an official from the Vartan Group announced the plans for the building today.

Reed said he doesn't expect the project will have any impact on the General Service Administration's plans to build a new federal courthouse at Third and Walnut streets in downtown Harrisburg. The GSA has been briefed on this project and other development occurring in the area, he said.

"The GSA hasn't changed their position, and I don't expect them to," Reed said.

"This building is an important initial component to the Northern Gateway project that, over the years, will transform this part of the uptown area," Reed said.

Most of the residential units will be owner-occupied, he said. Market research indicates that the complex will be most attractive to young professionals earning between $35,000 and $75,000 a year.

Ralph Vartan said the units will be priced from $150,000 to $350,000, depending on size and location within the building.

"The upper units will have a great view of Harrisburg," Vartan said.

There also will be a limited number of apartments renting for about $1,000 a month, he said.
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  #2499  
Old Posted May 15, 2008, 2:15 AM
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Pic of the Vartan Project

Not bad, but I wish it was 25 stories, not 5.

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  #2500  
Old Posted May 15, 2008, 2:46 AM
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Not bad, but I wish it was 25 stories, not 5.

I like, but i think it is going to be an island out there. good to see new projects proposed. Maybe with the new housing being built in the 'burg there will no net lose of population in the next census.
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