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Old Posted Apr 25, 2005, 6:32 PM
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EastSideHBG EastSideHBG is offline
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Thanks a lot, Mike!!! To my knowledge, all of Shipoke is technically in the flood plain.

Check this out!!! :carrot:

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
April 25 2005

HARRISBURG RANKED IN TOP BEST CITIES IN THE U.S. FOR PROFITABLE EMPLOYEES

Harrisburg has been listed in the top five best cities in the United States as being the most profitable for employees, according to Salary.com, which surveyed median base salaries for over 2,500 different types of occupations and compared them to the costs of housing, taxes, living costs, unemployment rates and job growth.

In its posting’s today on AOL Find A Job, it stated “Harrisburg has recently been recognized as one of the most revitalized cities in the nation and has come a long way in business and culture from being considered a distressed city in the early 1980’s.”

The other top five best cities were New London, Connecticut, Huntsville, Alabama, Baltimore, Maryland and Tulsa, Oklahoma.

Mayor Stephen R. Reed said: “The continued progress of our city now routinely gets national attention, for which we are grateful. Coming being listed as the second most distressed city in America to where we are today has been an arduous endeavor but with the progress being made now, our best days are still ahead and the future for Harrisburg is bright.”
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Old Posted Apr 25, 2005, 6:39 PM
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3 hopefuls are all over the lot on realty taxes

This is the second in a series of four stories on issues in the Harrisburg mayor's race. Other stories -- on residential and commercial development, and education -- will appear each
Monday.

Monday, April 25, 2005
BY JOHN LUCIEW
Of The Patriot-News

The three Democrats running for mayor of Harrisburg find rare common ground when it comes to property taxes.

They agree they're too high.

However, Mayor Stephen R. Reed, ad man Jason Smith and former city police officer Ernie Napoli differ on how to lower tax rates in the city and in Harrisburg School District.

Napoli would consider selling stock in the waste incinerator, which is being renovated and expanded. He'd tap revenue from the steam-generation plant, which will operate on incinerator heat.

Napoli said he'd even consider adding a 25-cent toll on main arteries into the city, forcing commuters to help pay for the services they enjoy in Harrisburg.

"Nobody likes to pay taxes," Napoli said. "People feel the taxes are too high. They have to be reduced."

For Smith, tax relief could be realized by squeezing money from the budget of the school district, which accounts for two-thirds of property taxes.

"We pay an astronomical $110 million each year for our schools and just $64 million for all other city services," he said.

Smith said some of that money would be better used improving neighborhoods so kids have better lives and are more prepared to learn.

"It's time we paid attention to the real priorities and give our kids the lives they deserve," he said, adding that the school district's high failure rate could be tied to social ills, not academics.

"You can't spend your way to a better education," Smith said. "We cannot continue to tax our people from their homes and turn away businesses through high taxation."

Reed, who has controlled the city schools since December 2000, acknowledged the big bite the school system takes from taxpayers. But he insists relief is on the way.

Its name is Act 72, the state law designed to turn slot-machine revenues into tax cuts for schools.

While Act 72 is controversial in many school districts, Reed said it should have whole-hearted support in Harrisburg.

That's because the city and its taxpayers stand to get the maximum amount of relief under the law.

"In Harrisburg, we will make out very well," Reed said.

Relief estimates are as high as $600 per owner-occupied dwelling, beginning as early as the 2006-07 school year.

"Some people in Harrisburg are going to end up paying little or no school real estate taxes," Reed said. "This will be a boon to home ownership, and it will increase property values."

But to be implemented, Act 72 must be approved by the school board and the district board of control by May 30 and by voter referendum in the fall. Reed said he would help mount a publicity effort to pass the measure.

Reed also claims a role in more immediate, if smaller, tax relief. For the first time, the city will issue cash rebates -- expected to be 10 percent of city property taxes -- to commercial and residential owners.

The rebates are being funded by the new Emergency and Municipal Services Tax, a $52 annual levy on Harrisburg's 68,000 workers.

Reed had proposed adding the tax, but Smith said Reed was slow in deciding to use the money for tax rebates.

Initially, Reed had proposed using the tax for public safety and road improvements.

Smith advocated putting all of the money toward tax relief, which he said would mean a reduction of about 17 percent in city property taxes.

In the end, City Council earmarked $1.6 million of the $2.6 million in job-tax revenues for tax relief -- enough for an across-the-board rebate of 10 percent to 12 percent.

Reed said the rebate checks won't be sent to residents until summer, well after the May 17 primary.

The mayor's opponents have another way to keep taxes in check: rein in Reed's spending. Napoli is advocating a state audit of city finances to find out how much debt the city is carrying.

"He's constantly spending," Napoli said of Reed. "It's got to stop."

"A new administration by its nature enables new efficiencies," Smith said.

"Two years ago, Reed proposed raising taxes. I was there on the front lines, telling him to sell Annie Oakley's underpants instead," Smith added, referring to artifacts Reed had amassed for his proposed Wild West museum.

Reed labels the entire state property tax system as outdated. He favors an expanded state sales tax to fund schools.

"It's regressive," Reed said of the property tax. "It penalizes those who invest and maintain property. We ought to be rewarding that."

*********

$.25 toll on Market St. Bridge?!? Uhh, people will just use the other bridges to get to where they need to go. Crime in HBG too high?!? It's bad in spots, sure, but NO WHERE NEAR what it used to be.



Q: How can a city such as Harrisburg, where taxes are seen as high, expect to attract businesses and residents that could expand the tax base and lower the burden on current residents?

ERNIE NAPOLI: I don't know of any business that would come into the city of Harrisburg because of the crime problem. There are not enough police to protect the property owners' businesses. To lower the burden on current residents, I'd put a 25-cent toll on the Market Street Bridge and take those funds and help reduce property taxes.

MAYOR REED: State law granting tax exemption to 46 percent of all real estate and millions in unfunded federal/state mandates affect tax rates here. Reliance on taxes has been cut by creating alternative revenues. Tax abatement, lower building taxes and other incentives have produced tax base expansion, $212 million to $1.6 billion, an increase in the number of businesses, 1,908 to 8,864, and largely stems massive population losses of 20 and more years ago. Harrisburg's total cost-of-living is mid-range in the region. State tax reform to replace property taxes remains sorely needed.

JASON SMITH: High taxes can be offset by well-delivered services, great urban planning, and responsive government. Unfortunately, Harrisburg is not really offsetting its high taxes very well! My Harrisburg 2.0 plan provides the vision we need to enhance city life--and my platform provides ways to lower taxes immediately, as well as long-term.

Q: In the balance between taxes and city services, how can Harrisburg maintain or expand amenities, while holding the line or cutting taxes?

NAPOLI: To hold the line or to cut taxes, I would take some of the income from the steam generating plant when it is back in operation.

REED: Hundreds of projects -- parks, arts facilities, housing, neighborhood infrastructure and more -- have been achieved without use of city tax dollars. This will continue through the alternative revenue sources we have devised.

To prevent tax increases, the city has reduced staff, merged agencies, used technology to increase performance, created partnerships, secured grants, raised private funds, established performance standards, initiated loss controls to cut insurance/benefit costs, installed energy savings measures, done highly competitive pricing, cut overtime, travel and the number of vehicles and cell phones, and spawned nonprofit entities to take on supportive functions -- as just some examples.

SMITH: Our current administration wastes hundreds of thousands each year on consultants. We have a hiring freeze on staff while administrator salaries rise every year. We waste millions on artifacts and hundreds of thousands to keep unsuccessful museums afloat. We take out bonds for city projects and scoop money off the top for the mayor's use...to be paid back at high rates later.

By focusing on our priorities and thinking creatively, we can get more mileage out of the tax dollars we have. By creating usage fees for those who use our city but don't live here, we can generate some tax relief. And through aggressive marketing and urban planning, we can bring in new residents and expand our tax base long-term.
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  #643  
Old Posted Apr 25, 2005, 9:54 PM
Spudmrg Spudmrg is offline
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That bridge toll idea is so illegal it does'nt pass the laugh test, he's a joke. Well EastSide, don't get flooded, then I'd have to post 100 articles a day .

In regards to the Museum......

http://www.pennlive.com/columns/patr...3442646480.xml

Stunner is latest in weird race
Sunday, April 24, 2005
The news that Harrisburg's National Civil War Museum is actually in Susquehanna Twp. stunned many people last week, including me and the rest of the newsroom.

That includes current and former city hall reporters, current and former city editors and a bunch of editorial writers.

Who knew? Nobody.

It's just another weirdness of the city's mayoral campaign, which has candidate Jason Smith giving away finger puppets of himself and Mayor Stephen Reed.

Please thank Smith for (again, weirdly) causing the mayor to reveal that factoid about the Susquehanna Twp. Civil War Museum.

But this museum thing was classic Reed.

It started with Smith's campaign position paper, which he calls "Harrisburg 2.0, A Vision for a New Harrisburg." It came out weeks ago.

The first item on this agenda is: "Relocate city hall to the site of our failed and economically draining Civil War Museum, forming a true civic center where ..."

People love the idea, Smith says, everywhere he goes.

OK, yes, certainly the Civil War Museum could fail. Certainly there was an awesome failure of imagination when it was conceived -- it is just not dramatic or techie enough for a modern museum. Plus it's losing money.

But if it shows us why we shouldn't be building $50 million museums without a better handle on what a successful museum is, maybe that would be success of a sort.

So anyway, city hall reporter John Luciew was developing this idea in the first of a series on the election. Smith and the other candidate, ex-cop Ernie Napoli, both want to close the Civil War Museum.

For his part, Reed had some arguments in support of the museum and against moving city hall there.

Then he pulled the rabbit out of the hat.

Reed "noted" that the museum is actually in the township and said, "The prospect of moving the city government center to Susquehanna Twp. would not be in the city's interests."

Whoa, dude -- what? It's not in the city?

I thought he was kidding.

Then I found out ... well, here's what I found out.

First I went to Susquehanna Twp. and talked to Frank Kessler, the zoning guy, who's been around awhile. He couldn't find a building permit for the museum.

Then I called a Susquehanna Twp. commissioner who's pretty sharp. He didn't know anything about it. Turns out the city made a presentation about the project to the township, but it was only a courtesy presentation.

Huh?

So I went to the county assessment office, and the ladies at the counter thought I was nuts.

The county's commercial appraiser came out, and we looked up parcel numbers. The parcel we found, 15-18-1, appeared to be right in the city.

When I got back to Reed about this, he told me the building is mostly in the township, partly in the city.

Relations between the city and township have been sometimes less than cordial.

But instead of messing with the plan, Susquehanna Twp. gave the city a pass and let the project be run through the city planning commission. Reed took the pass and kept his mouth shut.

Until, as it happens, now, when he needed a nice point to puncture Jason Smith's big idea.

It's been a weird year, and it's only April.

PAT CARROLL: 255-8149 or pcarroll@patriot-news.com
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  #644  
Old Posted Apr 26, 2005, 8:28 PM
wrightchr wrightchr is offline
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^ whoa...is right! it's kind of humorous actually.
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  #645  
Old Posted Apr 27, 2005, 2:22 AM
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Quote:
Originally Posted by Spudmrg
That bridge toll idea is so illegal it does'nt pass the laugh test, he's a joke. Well EastSide, don't get flooded, then I'd have to post 100 articles a day .



Regional jobless rate rises

Tuesday, April 26, 2005

The Harrisburg-area unemployment rate jumped to 4.4 percent in March, from 4.1 percent in both January and February.

The jobless rate remained the fourth lowest in the state, just behind the State College area. The Lebanon area had the lowest unemployment rate last month, at 3.7 percent, followed by the Lancaster-area rate at 3.9 percent.

In March last year, the unemployment rate in the Harrisburg area -- Cumberland, Dauphin and Perry counties -- was 4.5 percent.

The statewide unemployment rate in March was 5.4 percent, and the national rate was 5.2 percent.

The number of jobs in the Harrisburg region last month totaled 320,800, up by 1,000 from February and an increase of 2,100 from March 2004. The regional year-to-year increase in jobs amounts to 0.7 percent, compared with the statewide average of 1 percent.

The number of goods-producing jobs dropped by 300 from February to March, with much of that linked to closing of the Hoffman Mills textile plant in Shippensburg.

Regional service industries added 1,300 jobs from February through March. Service jobs are up by 3,700 from March 2004, while goods-producing jobs have dropped by 1,600 over the same time period.

The average hourly manufacturing wage in the Harrisburg area was $15.47 in March, compared with the statewide average of $15.25. The average manufacturing work week was 38.1 hours last month in the Harrisburg region, compared with 40.5 hours statewide. Regional manufacturing jobs have dropped by 1,400 over the past year.
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  #646  
Old Posted Apr 27, 2005, 2:24 AM
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HBG getting even more positive nat'l attention. :carrot:


City ranks high for the good life

Tuesday, April 26, 2005
BY MEGAN WALDE
Of The Patriot-News

The job possibilities came in from big cities across the country.

San Jose, Calif. Atlanta. Chicago.

But Susan Signore-Smith and her husband, William, an electrical engineering patent attorney, weren't turned on by life in any of those places.

Too expensive, too far from family, too hot or too cold.

They were waiting for "the right place" to come along.

Then, an employment headhunter called with an opening at a Harrisburg law firm. William called Susan and asked if she'd consider the move.

Absolutely, she told him.

She noted the green openness of the area, the picturesque Susquehanna River, the proximity to other metropolitan areas. Even more, Signore-Smith said, she liked the low cost of living.

Apparently, so do national analysts.

According to a survey released by Salary.com, a compensation research company, Harrisburg is among the best U.S. cities in which to work and live. The survey ranks cities based on salaries, cost of living and unemployment/job-growth figures. Harrisburg ranked No. 4.

The rankings represent the first time Salary.com has run a combined study of cities based on the three employment categories, said Dan Malachowski, director of public relations for Salary.com.

In the article highlighting its findings, Salary.com gives Harrisburg especially high marks for low rent and cheap food and drinks.

"To go from 20 years ago being the second-most economically distressed city in the country to becoming one of the top five places for employees to work is truly astonishing," said David LaTorre, president of Harrisburg Young Professionals.

LaTorre said he isn't surprised by the city's rating.

New companies, job growth and downtown revitalization add to a high quality of life, but they haven't pushed the cost of living into the realm of a Philadelphia or Washington, D.C., he said.

"From here, we can travel and visit and have a great time without having to spend the amount of money it costs to live there," he said.

That's a major plus for those looking to relocate, even in retirement.

Area natives James and Kathy Manfred recently retired and moved back home from Reno, Nev. They'd lived in Chicago before that and expressed surprise when they learned they could build the same house here for a lot less than they would have spent in Reno.

Re/Max Realty Association Realtor Gary Muccio said property values in the Harrisburg area have escalated recently.

"We're starting to see higher appreciation, so we're becoming a little more competitive with the Philadelphia markets," Muccio said. "But we're still seeing a much better value than the D.C. area."

Signore-Smith of Pittsburgh, who has lived in many big cities, including Los Angeles and Washington, D.C., said she feels she is living in a dream world. She calls Harrisburg "the center of the universe."

Harrisburg weather seems milder than Pittsburgh weather. The area's mix of river, farmland and woodland is beautiful, she said.

Everything is closer than it would be from most other big cities: the beach, her family in Pittsburgh, the cultural centers of New York and Washington that she wants to share with her elementary-age daughters.

For her, the move-in date at the end of June can't come quickly enough.

"I'm looking forward to being a homeowner," she said.


CITIES WHERE PAY GOES FURTHEST

1. New London, Conn.

2. Huntsville, Ala.

3. Baltimore

4. HARRISBURG

5. Tulsa, Okla.

CITIES WHERE PAY STRETCHES THE LEAST

1. New York

2. San Francisco

3. Stamford, Conn.

4. San Jose, Calif.

5. San Diego
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Old Posted Apr 27, 2005, 2:32 AM
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HARRISBURG

City denies mansion-razing

Tuesday, April 26, 2005
BY JACK SHERZER
Of The Patriot-News

Three Harrisburg riverfront mansions slated for the wrecking ball to make way for a condominium complex got a reprieve yesterday.

But the question remains: For how long?

City officials revoked the demolition permit issued more than two weeks ago for the 1920s-era houses from 2901 to 2917 N. Front St.

Citing Pennsylvania's recently changed "uniform construction code," officials said the use of the land may be considered in addition to merely ensuring demolition is done correctly.

That means plans to build 32 high-end condos on the site may be considered as a factor in granting demolition, according to the city.

As a practical matter, with Mayor Stephen R. Reed against the plans and with the Planning Commission recommending against it, the new argument would give city officials ammunition to deny demolition.

"The bottom line is that [city] codes should have looked at those issues before signing the demolition permit," said Randy King, the mayor's spokesman. "Some of this is new stuff, with the uniform construction code, and some of it was unknown, frankly."

King said the mayor hired the private law firm of Caldwell and Kearns to review the permit situation and it found the grounds for the permit to be revoked.

But the property's owner, interior designer Mary Knackstedt, said the fight is far from over.

"We feel that, in every respect, we are in our right to go forward," said Knackstedt, who has 15 days to appeal to the city. "The only thing I can say is [revoking the permit] looks like politics."

While refraining from directly criticizing Reed, who is facing primary opposition next month in his bid for a seventh term, Knackstedt's real estate adviser wasn't shy.

"This all comes down to one thing: There is a mayoral election in Harrisburg," said Don Paul Shearer, a Camp Hill-based real estate broker and appraiser. "I don't know how you can explain it any other way."

Community opposition has been vocal -- from peppering the area neighborhood with "Save Our Mansion" signs to packing the Planning Commission meeting to filing an appeal with the city.

Ironically, Knackstedt's honesty played a big part in her setback. King, as well as an attorney for a group opposed to the project, acknowledged that if Knackstedt would have just pursued the demolition and kept quiet about her building plans, the city wouldn't have been able to try to stop her under the uniform construction code. But Knackstedt herself linked the issues.

To Knackstedt, who makes her home and business in the 2901 building and who has said she plans to tear down the other two regardless of the condo approval, the whole situation is unfair.

"I think the bottom line is, everything I have done here has been for making Harrisburg a better city," she said. "It has been with the cooperation and approval of the various [city] departments, and I really feel this is an outstanding project."

Knackstedt and Shearer said that it doesn't make economic sense to try to restore the buildings, none of which are in the historic district.

And Knackstedt said that, contrary to what some have said, she has not received real offers for the properties.

But any offers would have to make up for the more than $3 million invested in the properties and the overall project, she said.

Regarding the condo project itself, the city's Planning Bureau this week will be forwarding the land development plan for the condos to City Council.

At its May 3 meeting, council is expected to assign the matter to a committee, which would hold a public hearing.

Opponents of the demolition greeted the news yesterday with guarded optimism.

Attorney Mark S. Stewart, representing the "Coalition to Save Harrisburg's Heritage" that was formed to fight the demolition, said he believes a rejection of the condo plan can stop the demolition.

In an appeal of the demolition permit Stewart filed, he used the same argument the city adopted in the revocation.

"We do not believe the condo plan complies with the city's zoning and planning ordinances," Stewart said. "And if you're considering the entire project as a whole, then you deny the entire project as a whole."

Diane McCormick, president of Historic Harrisburg Association, said she realizes the fight isn't over.

"Sure, condos are a good idea; let's create as many kinds of housing options as we can," McCormick said. "But let's not destroy our best assets in that process."
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Old Posted Apr 27, 2005, 2:35 AM
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I am not too thrilled about this whole TecPort West thing...at all.


Legislators give developer a lock on prime tract

Bypassing rules, firm seeks E. Pennsboro land

Tuesday, April 26, 2005
BY DAVID DEKOK
Of The Patriot-News

There are rules and regulations, and then there are legislators.

If things work out as planned, Pittsburgh developer Crossgates Inc. will soon own an ideally located 51-acre tract of state land. The deal illustrates how legislators can legally circumvent well-established procedures for disposal of state property.

The property is along Routes 11/15 at Valley Street in Summerdale, East Pennsboro Twp., a stone's throw from an exit of Interstate 81.

Senate Bill 1052, passed by the Legislature in November and signed by Gov. Ed Rendell, gave Crossgates the sole right to buy the land, provided it can negotiate a suitable price with the state Department of General Services. The bill gives Summerdale Associates, a Crossgates entity, a year to do that.

That process could be relevant to how the Rendell administration might dispose of the 250-acre Harrisburg State Hospital grounds, if it moves forward with plans to close the mental hospital off Cameron Street near I-81. That land also is coveted by developers.

Crossgates intends to use the land in East Pennsboro Twp. to develop TecPort West, modeled on its TecPort office park in Swatara Twp. It is geared toward companies needing up-to-date Internet and telecommunications facilities.

"I have a lot of people interested in the site," said Tom Powers, vice president of Crossgates. "We've come to a conceptual agreement. We are finalizing a sales agreement."

Bill Gladstone, a real estate agent with NAI/Commercial-Industrial Realty Co., said he couldn't estimate what the property -- which he described as a "very raw piece of land" in need of "TLC" -- is worth. But with improvements made by the developer, including roads, water and sewer, it could sell for $150,000 to $400,000 an acre, he said.

State Sen. Pat Vance, R-Cumberland, was the central figure in the deal, Powers said. At the time, Vance was a member of the state House. Former Sen. Hal Mowery, whom Vance succeeded at the beginning of the year, played a secondary role.

On May 25, 2004, Powers formed a limited partnership, Summerdale Associates, to develop TecPort West.

In addition to Crossgates, the limited partners are ComputerAid, Central Pennsylvania College, which is near the proposed office park, and GanFlec Architects and Engineers of Camp Hill.

Powers hopes to create a Keystone Innovation Zone in partnership with the college. That could provide state financial help to early-stage technology companies locating in the new TecPort.

Once he had the other parties on board, Powers turned to Vance.

"I sat down with Representative Vance and told her this is state-owned land. How can we work with you?" he said.

The procedures for disposing of state surplus property were established in 1929 and revised in 1981. When a state agency declares property as surplus, the land is offered to other state agencies. If there are no takers, General Services is to consider whether the land would be useful to local governments or nonprofit organizations, or good for recreational purposes. It then could hold public hearings if there is interest.

Assuming that hurdle is cleared, and the Legislature approves, the property is to be advertised for sale to any interested party.

But there is another way to shed state property that bypasses all those requirements. Section 2408-A of the 1981 law allows the General Assembly, by simple majority vote and without hearings, to sell property to anyone. That is how Summerdale Associates, the Crossgates entity, came to be the sole party with the right to buy the land.

Part of the tract is owned by the Pennsylvania Department of Transportation and part by the state Department of Agriculture. Agriculture has declared its part surplus, but PennDOT hasn't. PennDOT spokesman Greg Penny said the agency is scrambling to find a new location for the salt and cinder piles stored on the property.

"It was not surplus property, but it was made so by the Legislature," Penny said.

Vance was reluctant to acknowledge the central role in the deal ascribed to her by Powers, calling him "too generous." She said her only motivation was to make sure the land did not become a warehouse site or trucking terminal. There is "no question" the land is valuable, she said.

The plan was to get language authorizing the sale to Summerdale Associates into Senate Bill 1052, which included several special state property sales. Sen. Jane Earll, R-Erie, was the prime sponsor. Because it was a Senate bill, a senator was needed to amend language. Vance turned to Mowery.

Mowery, who retired on Dec. 1, 2004, said by telephone from his Florida home that "several parties" contacted him about the land, not just Crossgates. He said he couldn't remember details.

Powers said he is trying to buy an old stone house near the tract owned by Kelby J. Steele, proprietor of Steele Motors. The house and the 2.25 acres of land it sits on were sold by the state to Steele and his wife in 1997 for $95,556 through the normal state process for disposing of surplus property.

Steele and his wife spent the last eight years restoring the house as their family home. He has declined to talk publicly because of ongoing negotiations with Powers over a fair commercial price. His property is restricted for residential use. That restriction remains as long as Steele owns it, but the Senate bill would allow Summerdale Associates to use the land for commercial purposes.

Steele has hired RSR Realtors to determine what his property would fetch on the open market. RSR did not return a call seeking comment.

Another neighbor, John W. Bruetsch, worries about traffic, congestion and a negative effect on property values from living across the street from a hotel or restaurant built as part of the office park.

All of which leaves Vance exasperated. "I would think they'd rather have a business park there than a truck terminal," she said.
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Old Posted Apr 27, 2005, 9:37 PM
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HARRISBURG

Lawsuit further muddles condo plan

Mansions' neighbors say deed restriction limits building options

Wednesday, April 27, 2005
BY JACK SHERZER
Of The Patriot-News

The embattled plan to tear down three North Front Street mansions for a condominium complex is facing an attack from a new direction.

Four area residents have filed suit in Dauphin County Court against Mary Knackstedt's plans to demolish three 1920s-era houses from 2901 to 2917 N. Front St. and replace them with a 32-condo development.

The lawsuit claims the property is governed by a deed restriction known as the Academy Manor Plan, which dictates what can be built and how the land can be used.

The deed restriction limits construction on the site to single-family homes, bans apartment houses on Front Street and prohibits garages other than those serving the single-family homes, according to the lawsuit.

"You just can't do any kind of commercial use you want, and the building restrictions are even more -important because it limits what you can build," said Andrew J. Giorgione, the attorney who filed the lawsuit. He is also one of the four plaintiffs, all of whom live in the 2900 block of Second Street, directly behind Knackstedt's properties.

Knackstedt, whose home and business are at 2901 N. Front, said she plans to tear down the other two buildings regardless of the condo approval. She said her advisers believe the project is in keeping with the restrictions.

She said that under the restriction, a property owner needs to get permission only from immediate neighbors to make changes. Her three buildings, running between Division and Manor streets, make up the entire block -- meaning there isn't another property owner to consult, she said.

Knackstedt said she had not seen the lawsuit, which was filed April 15. She said the deed restriction had been brought up before.

"The bottom line is that we feel we are consistent with the deed restriction," she said. "We are very much in compliance and following the directives."

Giorgione disagreed: "I would certainly be willing to allow a court to decide for us, and I believe very strongly they will find in our favor."

This week, Knackstedt received a setback when the city revoked a demolition permit issued for the properties almost three weeks ago. City officials said they erred in not considering recently changed state law that allows them to focus also on the end-use of a property and not just on whether the demolition can be done safely.

Knackstedt, who has vowed to fight on, said if the project is defeated, the real loser will be the city and its taxpayers, who will miss the opportunity to attract affluent residents to the area.

She blasted Mayor Stephen R. Reed, whom she said supported the plans after they met on Jan. 3 and is backing down now because of political pressure. She said Reed even asked her to hold off contacting neighbors because he wanted to coordinate a news conference on what he said was a positive development for the city.

"I think we all know he's switched gears on this," Knackstedt said, pointing to Reed's primary election opposition as he seeks a seventh term. "I think he's had pressure."

Reed has denied ever backing the plans, saying once the plans were reviewed it became "glaringly apparent that it was not acceptable."

City officials could not be reached for comment yesterday, but Jim Frey, a Harrisburg architect working for Knackstedt, said he was at the Jan. 3 meeting and confirmed Knackstedt's account.

"My recollection is we had a copy of the site plan with us and a copy of the west elevation which showed the entire length of the building," Frey said.

He said Reed knew demolition of the homes was part of the project.

"He thought it was going to be a fantastic project, as I recall," he said.
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  #650  
Old Posted Apr 28, 2005, 9:34 AM
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i think the TecPort West idea is a pretty good one. i'm very familiar with the area and my grandmother used to live within a few blocks of the site. it's a prime location along 11/15 and 81. i would rather see this site develop into a business park than a truck terminal. the partnership with the college is also a good thing. this project has the potential to provide more tax dollars to growing E-Penn which now has about 25,000 residents. it's one of the fastest growing suburbs.
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Old Posted Apr 29, 2005, 11:06 PM
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Yeah but it's more sprawl, saturates the office space market AND gives the West Shore babies their way. No, I'm being serious (sadly). TecPort West came about b/c WS people cried about having to drive to TecPort. A few pages back I posted an article about that too.

More good news for HIA!!!


AIR TRAVEL

HIA flights draw more passengers

Thursday, April 28, 2005
BY ELLEN LYON
Of The Patriot-News

TransMeridian Airlines provided the biggest boost in flights last month at Harrisburg International Airport, with nearly 7,000 travelers taking advantage of the airline's nonstop flights to Orlando Sanford International Airport.

But the market share of financially troubled US Airways, the airport's dominant carrier, declined to 31 percent, its lowest percentage ever at HIA, Aviation Director Fred Testa said yesterday.

Overall, passenger traffic at HIA rose 2.3 percent in March from the same month last year.

As airlines switch to smaller planes, "one of our big problems is we're running out of seats, so it's hard to increase passengers," Susquehanna Area Regional Airport Authority board member Cliff Jones said. "It could be better if we had more seats."

In the first quarter this year, passenger traffic increased 3.7 percent from the first quarter of 2004.

The authority, which owns and operates HIA, unanimously approved a three-year schedule of water and sewer rate increases for airport tenants, to begin July 1.

"We are not breaking even on our fees," said John Ward, an authority board member

Users of HIA's water- and sewage-treatment plants include airlines, terminal tenants, general aviation hangars, car-rental agencies, cargo operators, Librandi's Machine Shop and the Pennsylvania Air National Guard. Rates were last raised in 1997 for sewer service and in 1999 for water.

The airport authority will next meet at 8:15 a.m. May 25 at the Yorktowne Hotel on East Market Street in York.
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  #652  
Old Posted Apr 30, 2005, 4:02 PM
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I have a feeling this is going to get REALLY ugly. And it's kind of odd to think about how much of this sort of thing is going on in the region nowadays, the gov't getting involved in private property (the condo plan and the mansions, this, etc.).


Airport plan challenged

State reviews HIA proposal to seize parking lot land

Saturday, April 30, 2005
BY ELLEN LYON
Of The Patriot-News

Harrisburg International Airport wants to take a neighboring property by eminent domain so it can shut down a parking competitor, documents filed yesterday in Dauphin County Court allege.

Meanwhile, the state attorney general's office is looking into the airport's actions, including possible antitrust issues.

Attorney Charles B. Zwally, of Mette, Evans & Woodside, filed eight preliminary objections to HIA's eminent domain proceedings against Cramer's Airport Parking. Zwally represents Stanford E. Cramer, owner of the business.

On March 30, the Susquehanna Area Regional Airport Authority, which owns HIA, filed notice with the court of its intention to condemn Cramer's 17.6-acre property a half-mile from the airport terminal. The authority voted to pay Cramer $1.56 million for the property.

The deadline for Cramer to object was yesterday.

"The harm caused by SARAA is the type of harm that the antitrust laws are intended to prevent," according to one of Cramer's objections on file with the court. "The public, as a whole, will be injured by a lack of competition between multiple car parking facilities located near the HIA, as the condemnation will likely result in higher prices and absolute control of public parking by SARAA to the detriment of HIA patrons."

The antitrust section of the state attorney general's office is reviewing the proposed taking, spokeswoman Barbara Petito said.

"We will examine whether the proposed transaction is lawful on a local and federal level. And, clearly, we will be looking with an eye toward any alleged anti-competitive business practices," Petito said.

Fred Testa, aviation director at HIA, said yesterday that he hadn't seen the objections filed by Zwally but the airport would "let the legal process take its natural course."

The state has no antitrust statutes and federal antitrust statutes do not cover governmental units such as airports, he added.

"We believe absolutely that ... we have not involved ourselves in any anti-competitive practices," Testa said.

The airport wants the Cramer parcel because it is the only place it can expand and because the property would be ideal for a cargo-transfer facility or airline maintenance base, he said. Testa said he has received inquiries about locating both kinds of operations at HIA but the airport doesn't have the space.

Cramer's objections note that HIA has increased its parking facilities but those facilities are "currently underutilized."

HIA projects it will take in $6.2 million in parking revenue this year, compared to $5.6 million last year.

Cramer's parking revenue was $701,116 in 2004. His revenues dropped by $21,564 in the first quarter of 2005, according to sales figures Cramer provided the airport.

In his preliminary objections Cramer also alleges that HIA:
  • lacks the authority to take the property by eminent domain;
  • hasn't demonstrated a public purpose for the taking as required by law;
  • intends to take more of the property than is "reasonably required" for the airport's operation;
  • has insufficient unsecured funds to guarantee payment of just compensation to Cramer;
  • and isn't offering fair market value for the property, including business relocation costs and other damages. Cramer's filing said the property exceeds the value offered by the airport, but it doesn't say by how much.
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  #653  
Old Posted Apr 30, 2005, 4:12 PM
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Well, I don't think the Front Street and the HIA matters are the same. In the front street mess, the neighbors are sueing to enforce what they feel is a binding restriction on the property deed. So, the city had to stop the demo permit before a court forced them to hold off (It does'nt help things that her neighbors are lawyers).

In the HIA case, SARAA is a government authority that has a rather clear mission, to be self-supporting airports for the area, and they want to expand so they can continue to carry out that mission. By going to court to take Cramer's land, they forced a very ugly process to see how much they will have to pay. On a related note, there is a case before the US Surpreme Court right now in regards to the use of eminent domain by New Haven, CT for a private end use, much like SARAA taking for a cargo facility. Cases like this are always messy.

In the interests of full disclosure, I've used Cramer's parking many times and always found them to be friendly and helpful (and inexpensive). EastSide, are you going to change your handle now that you've moved, LOL
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  #654  
Old Posted May 1, 2005, 3:12 PM
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Quote:
Originally Posted by Spudmrg
EastSide, are you going to change your handle now that you've moved, LOL
Nah. As long as I continue to live East of the Susquehanna, I will always be EastSideHBG.

See what I mean re: TecPort West, Chris? The office market is quickly getting saturated and I'm not sure if it's a good idea to add much more right now. Yes, TecPort may be slightly different because (in most cases) buildings are built specifically for the tenants so they are fully occupied, but still...


COMMERCIAL REAL ESTATE

Office-leasing rate ebbs as PHICO enters market
Sunday, May 01, 2005

BY DAVID DeKOK
Of The Patriot-News

The good days are behind the office-leasing market in the Harrisburg area -- at least for now.

Absorption -- the leasing of commercial office space -- moved firmly into the negative column in the first three months of this year, continuing a decline that began in the fourth quarter of 2004, said Thomas T. Posavec, vice president of Landmark Commercial Realty Inc. in Lemoyne.

How negative? On the East Shore, West Shore and in downtown Harrisburg, a net 107,900 square feet of office space moved into the "available" category. In the fourth quarter last year, a net amount of 1,370 square feet was taken off the market.

"It wasn't a great quarter," Posavec said. "And the reason for that was the addition of the PHICO building. That was put in the study this quarter. But that's par for the course."

The former PHICO headquarters building is at Route 11 and Hogestown Road near Mechanicsburg. The owners began actively marketing its 180,000 square feet of leaseable space in the first quarter. About 40,000 square feet has been leased by the state, and an additional 20,000 square feet is probably going to be leased by an as-yet undisclosed tenant, but that still leaves a lot of new space on the market.

Posavec said he believes it will take another year to a year-and-a-half for the market to absorb the PHICO space. And that's not the only big new addition to area office space about to come online.

Market Square Plaza, the new high-rise building in downtown Harrisburg, is essentially finished after 16 months of construction, and tenants have started to move in. Tony Pascotti of Phoenix Development Corp. said the Hilton Harrisburg & Towers has been holding events in its part of the building since April 1, and the Post & Schell law firm has been in since April 8.

Pascotti said the final touches are being applied to space on the top two floors of the building that will be used by the Kirkpatrick & Lockhart law firm. A formal dedication and ribbon-cutting ceremony is planned for this summer, he said.

"We've gotten calls from Philadelphia companies requesting space there," Posavec said.

He said the movement of tenants to Market Square Plaza will, in turn, put the space they had occupied in other buildings back on the market. Kirkpatrick & Lockhart will be leaving 20,000 square feet of B+ office space in a building at 240 N. Third St. in Harrisburg. B+ space is the second-best variety.

Space in the nearby Fulton Bank Building on Third Street also is classified as B+ space, and it is fully leased, Posavec said.

About 20 percent of the space in a building at 500 N. Third St. is vacant, he added.

"If they don't make serious errors in renovation and marketing, they shouldn't have any trouble replacing Kirkpatrick & Lockhart," Posavec said.

Another office building, although considerably smaller than Market Square Plaza, is in the final stages of construction at 4507 N. Front St. in Susquehanna Twp. Posavec, who represents the building owner, said Landmark is considering moving its offices there.

He said the building has great views of the old stone Rockview Bridge and was one of the last two new office buildings permitted along Front Street by zoning changes that went into effect about a year ago in Susquehanna Twp. Those changes, he said, make it difficult to tear down mansions along Front Street in the township to construct office buildings.

Harrisburg doesn't have similar zoning, as is evidenced in the current fight over plans by interior designer Mary Knackstedt to tear down three mansions farther south on Front Street in the city to construct luxury residential condominiums that would sell in the $1 million range. Knackstedt is in a standoff with city officials and preservationists over her plans.

"I commend her vision, but I don't know if we have the buying power here to make it work," Posavec said. "I don't understand it [the economics of her project] myself."

He said a 10-year-old mansion in Hershey on 3.5 acres with a swimming pool and four-car garage sat on the market for two years before selling for $1.3 million. Luxury condos on the Hershey golf course can be had for $650,000.

Posavec said Landmark is selling more office buildings than ever before. He attributes that to continuing low interest rates, which have made buying more attractive than leasing to some businesses. He said the philosophy of the market has changed considerably.

"We probably sold $15 million in the first quarter," Posavec said.
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  #655  
Old Posted May 1, 2005, 3:13 PM
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Wow, the prices continue to escalate around here. Like most things, it has its pros and cons I guess...


Location drives price of land

Sunday, May 01, 2005
BY APARNA KUMAR
Of The Patriot-News

Land zoned for commercial use in the Harrisburg area has been selling at premium prices in some locations.

Well-situated property in a growing community on major retail corridors can command $300,000 to $400,000 per acre, said Bill Gladstone, a commercial real estate agent with NAI/Commercial Industrial Realty Co. in Wormleysburg.

Prime commercial land on the West Shore would be in areas such as Camp Hill, Hampden Twp., Silver Spring Twp. or Upper and Lower Allen townships, Gladstone said.

On the East Shore, prime real estate might be in Susquehanna Twp., Lower Paxton Twp. and Swatara Twp., he added.

The price of an acre can go even higher in development hot spots, Gladstone said.

For instance, at the TecPort business park in Swatara Twp., next to the newly renovated Harrisburg Mall, his firm has sold land for upwards of $400,000 per acre. That property fronted on Paxton Street.

Near the Camp Hill Shopping Center along Route 15 or off Route 22 in Lower Paxton, an acre of prime commercial property can sell for as much as $1.5 million, according to Gary Nalbandian, co-owner of NAI-CIR.

Gladstone noted that such high prices might be paid by drugstores, which historically have paid more for land than other commercial buyers.

Development near Harrisburg International Airport could drive up prices in what has been a historically depressed area, Nalbandian said. He estimated that an undeveloped acre of land near the airport in Lower Swatara Twp. could go for $300,000 to $400,000.

Thomas J. Mallios, president of Commercial Realty Group Inc. in Lemoyne, gave a lower estimate. He said a commercial acre near HIA would sell for $200,000. He gave the same estimate for land near Penn National Race Course in Grantville, where a proposal to bring in slot machines could trigger a development boom.

Mallios said some of the most expensive commercial acreage is in Lower Paxton Twp., along Union Deposit Road or Jonestown Road, or along the Carlisle Pike in Hampden Twp. or Silver Spring Twp.

He figured the price of a commercial acre with public water and sewer in those areas could go up to $450,000 or even $500,000.
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  #656  
Old Posted May 3, 2005, 12:37 AM
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Okay, I have changed my opinions: Smith and Napoli don't have a chance in hell. Napoli buried himself IMO w/ the toll on the Market St. Bridge idea. Smith is far too busy attacking Reed to be taken seriously. So here's to Mayor Reed (again).


Candidates detail plans for city housing growth

This is the third in a series of four stories on issues in the Harrisburg mayor's race. The final story -- focusing on education -- will appear next Monday.

Monday, May 02, 2005
BY JOHN LUCIEW
Of The Patriot-News

When it comes to commercial and residential development in Harrisburg, Mayor Stephen R. Reed has a simple message for voters: It ain't broke, so don't fix it.

"These are exciting times for Harrisburg," Reed said. "And this city's best days are yet to come."

His rivals, former police officer Ernie Napoli and ad man Jason Smith, say Harrisburg's economic engine could be operating at a higher level.

The two Democrats are challenging Reed for the party's nomination in the May 17 primary.

Napoli and Smith laud Reed for his successes, particularly downtown, but they say they have the energy, ideas and know-how to jump-start progress.

"I don't discount the good that's happened during the Reed administration," Smith said. "But I think what Reed did could just be the beginning.

"We should not elect our mayor based on past accomplishments, but on his vision for the future," he said.

"He did a good job on City Island and he did a great job downtown," Napoli said of Reed. "He did a lot for Harrisburg. But I feel I could address the problems he hasn't addressed."

Reed said his critics sound as if they believe Harrisburg's resurgence just happened, as if by divine providence.

That's why Reed likes a quotation by conservative columnist George Will: "The inevitability of progress is a myth."

"For a lot of years," Reed said, "Harrisburg was proof of that."

Not anymore.

Since taking office in 1982, Reed claims credit for guiding $3.86 billion of investment in the city.

In 2004, the city logged 1,864 building permits representing $407.5 million in new investment -- a record, Reed said.

"We have sustainable momentum when it comes to economic development," he said. "These gains shall be enduring, even to the next generation and beyond."

Much of the attention has been focused downtown, with the rise of restaurant row, the erection of high-rise buildings, the renovation of the Crowne Plaza Hotel and the construction of the Hilton Harrisburg & Towers.

Reed said the city is about to experience the greatest volume of housing renewal in its history. A total of 1,752 restored or new housing units representing a $143 million investment are either under way or will be over the next 18 months, he said.

Reed lists sites throughout the city, including work in the Maclay Street neighborhood, Capitol Heights, Barkley Court, Summit Terrace, central and south Allison Hill, midtown, uptown and south Harrisburg.

Reed says residents of Harrisburg have a vested interest in center-city's success. The business district generates far more money in property and business taxes than it consumes in services. The outlying neighborhoods benefit, Reed said.

Smith and Napoli see a far different Harrisburg.

"If you walk the neighborhoods, some of them are far worse than when the mayor took over," Smith said, who also bemoans Harrisburg's population losses over the past 50 years. "Huge parts of the city have been overlooked."

To fix things, Smith has laid out a detailed renewal plan in a campaign document he calls "Harrisburg 2.0."

The centerpiece of Smith's plan is a concept of four "development beachheads" throughout the city. The beachheads would include marketing themes built around a neighborhood's cultural distinctions.

For example, Smith has proposed a so-called "barrio district" for south Allison Hill, an area in and around 13th and Derry streets.

The development would seek to take advantage of the neighborhood's growing Latino population by drawing customers to ethnic restaurants, markets and stores.

"To bring in residents, we need to package our product and communicate its benefits. That's what I do for a living here at Fathom," said Smith, referring to his downtown design firm.

Napoli laments what he calls the city's slow pace in demolishing blighted or condemned buildings, even though Harrisburg operates its own demolition crew that takes down scores of buildings each year.

Napoli walks around with photos of burned-out buildings and vacant lots strewn with trash. He said he would lead the charge to clean up empty lots that have become dumping grounds and take down more abandoned buildings to spur development.

When it comes to what, how and where to build, Napoli said he would follow the lead of visionary developers. Napoli cited the late John Vartan as an early contributor to Harrisburg's renaissance.

Napoli said any development plan would have to be backed by a strong police force to protect investment and allow incoming residents to feel safe.

"If you see a cop walking up the block, you feel better," Napoli said.

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

IN THEIR OWN WORDS: COMMERCIAL AND RESIDENTIAL DEVELOPMENT

Q: What are the obstacles to residential development in Harrisburg and how can they be overcome?

ERNIE NAPOLI: The biggest obstacle is the slow pace of removing abandoned and burned-out buildings so that new homes could be built by a developer. I would also use the Homestead Act to help the city.

MAYOR REED: Taxes, blighted structures, access to financing and perceptions of city schools are obstacles. Taxes are addressed by tax abatement, by the two rate system that charges one-sixth the tax rate on buildings as land, and tax reduction [including this year's 12 percent rebate]. Vacant property is addressed by seizing title to restorable structures, with renovation and sale to new responsible owners [over 5,000 units to date]. Demolition occurs with non-restorable sites. City grants, loans, land donations and infrastructure upgrades lower home prices and increase property values. Major reform is making city schools more attractive to households with children.

JASON SMITH: I love the guy, but Mayor Stephen R. Reed is the single greatest obstacle to residential development in Harrisburg today. He can be overcome with a simple vote. That's the beauty of America.

Q: What's the next phase of Harrisburg's resurgence?

NAPOLI: Instead of putting all the money on City Island and Front Street, I would start to work on uptown Harrisburg, for example. Tear down buildings that are not being used and ones that are condemned. This money that you take from City Island would eventually, over the years, restore these sections of town. That would make Harrisburg, the capital of Pa., a No. 1 prime-time city. Harrisburg can be a beautiful city to live in, and a clean place to live.

REED: The coming phase is multi-faceted: expanded housing and neighborhood renewal; growth as a center of tourism, history, arts, culture and entertainment; work force and new business and job creation; and making Harrisburg a center of education, including higher education. Now under way are neighborhood upgrades involving 1,750 housing units. Last year's 1,852 building permits equaling $407 million in new investment set a new annual economic development record. In "The Creative Class", the authors list Harrisburg amongst the top 10 cities in the nation, in contrast to Harrisburg's listing as second most distressed when we began.

SMITH: He brought us baseball and the Hilton, but our current mayor seems puzzled when it comes to bringing in new residents. The daily bumper-to-bumper traffic of potential residents clamoring to escape our city is a testament to this. As mayor, I will use my background in advertising to market our city aggressively to empty-nesters and commuters. I will package our city's services and make it easy to find and buy a home here. I will fight for lower taxes. And I will develop our city long-term, through my 30-page Harrisburg 2.0 document. My plan will create jobs, expand our tax base and provide the urban lifestyle people crave.
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  #657  
Old Posted May 3, 2005, 8:48 AM
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Dave, i do see what you mean TecPort west. combined with other develping areas off of I-81 in Cumberland County, and even the Phico site, it would begin to saturate the market. The only hope would be to bring in a sizeable amount of new investment from outside the region. Not just moving what we have. I hope that's what these projects spur...more investment from abroad. As for Smith and Napoli...they are wasting their time running against Reed. They are using his own initiatives against him, which is completely ridiculous. Reed is mayor for Life!
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  #658  
Old Posted May 7, 2005, 12:42 AM
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From the patriot-news "Know at Noon" (Friday, May 6, 2005):

Construction of a 104-unit, stacked townhouse community could begin late this summer in Lemoyne on a site overlooking the Susquehanna River. Cox Development LLC of Vienna, Va., will construct the community, Lemoyne Chase, on land between Susquehanna Court and the river and just south of the John Harris Memorial Bridge, also called the South Bridge. Stacked townhouses are two-level town homes, with one built over the other in a four-story building. Lemoyne Chase will consist of 104 units in six buildings.

— Jerry L. Gleason
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  #659  
Old Posted May 7, 2005, 11:42 AM
wrightchr wrightchr is offline
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^ very nice...this development is great infill for the west shore.
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  #660  
Old Posted May 7, 2005, 2:04 PM
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Thanks for the info, Mike!!! That sounds like a really cool style and I'm curious as to how much they will cost (I'm sure a decent amount with that location). I don't know about you guys, but I am really liking all of the modern-ish architecture popping up around here nowadays.

Btw, I will be in DC for a few days for work starting late tom. (Sunday) and I won't have time to post on here, so I am hoping you guys will pick up the slack in my absence. And when I come back I am going to be doing a photo tour of my new 'hood so stay tuned.
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