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News Around The Burg

April 2011

HARB Punts Sunoco to City Council

April 28 -- Unable to agree on the configuration of a convenience store and gas station that Sunoco has proposed for its facility at the corner of 2nd and Maclay streets, the Harrisburg Architectural Review Board on Tuesday night sent the decision to the City Council.

The board voted 2-2 on the Planning Bureau’s recommendation that would deny Sunoco its application to demolish its 55-year-old facility and redesign the property for a larger, more modern store with a canopy almost three times the size of the one currently standing over the pumps.

The split vote automatically sent the issue to the council, which will decide whether to approve the application. The board then voted unanimously on a design they called a "preferred conceptual alternative" to Sunoco’s design, although Chairman William Fontana cautioned the vote was not an approval of the design.

Ironically, this design, which places the store at the southeast corner of the property and the eight gas pumps under a 99-foot-long canopy facing Maclay Street, is an alternative Sunoco presented to the board, along with the design the company prefers.

The design Sunoco prefers keeps the current configuration of the store and canopy facing 2nd Street and the Governor’s Residence directly across the street, but moves it towards the back of the property to allow for the 99-foot-long-by-24-foot-wide canopy, as well as the larger store, which would expand from 1,700- to 3,000-square-feet, with parking in front.

Sunoco’s “A Plus” store has served as a gas station since it was built in 1956, while the Governor’s Residence has stood across the street since 1968.

A handful of residents, the city’s preservation group and an attorney representing the state attended Tuesday’s meeting to ask questions and voice concerns. Historic Harrisburg Association opposed Sunoco’s store design because it doesn’t comply with the neighborhood’s historic architecture, said John Campbell, the executive director.

And attorney Elizabeth O’Reilly, with the state Department of General Services, expressed concern about the fuel pumps facing 2nd Street.

“There’s an opportunity there for eight sets of headlights beaming into the Governor’s Residence,” O’Reilly said.

Since Sunoco began the process of seeking approval to re-develop the property, it has met resistance and concern from the Zoning Hearing Board, and now HARB, about its configuration, as well as its flat-roof, box-like store because the design lacked even the slightest conformity to the architecture in this historic district neighborhood.

The last time the company appeared before HARB, the board sent it away, asking that the oil company return with a store design that at least somewhat reflected the neighborhood’s architecture.

The new store design Sunoco presented Tuesday night – a box-like store but with more brick and a pitched roof – appeared to satisfy the board. The issue now is the location of the store and canopy. If City Council rejects Sunoco’s preferred configuration, the company then will consider the alternative configuration HARB cited as more to its liking.

Act 47 Team: "Solutions Will Be Painful"

April 26 -- The state-appointed team charged with helping to rescue Harrisburg from a fiscal ditch minced no words tonight in outlining the grim road ahead for the city.

"Solutions will be painful," said Bob O'Donnell, spokesman for the Act 47 team, as he read from a prepared slide presentation before the City Council.

Those solutions likely will include a mix of tax increases, asset sales and service cuts in order to raise an estimated $310 million to fully deal with and restructure the city's incinerator-related debt. The Act 47 team upped the previous debt estimate by some $30 million based upon amounts now owed to other parties, including Dauphin County and the bond insurer, Assured Guaranty.

Meanwhile, the city faces a shortfall of nearly $3.5 million this year in its day-to-day operational budget and an estimated $5.3 million next year, if nothing is done to reverse the trend.

"Everything is on the table, and we mean everything," said O'Donnell.

The Act 47 team showed up in a large group to provide the council with an interim assessment as it continues to prepare a financial rescue plan for the city, now scheduled for release on May 27.

Afterwards, council discussions and public hearings will be held on the plan, which could change before action by the council on final recommendations, now slated for early July.

Zoning Board Has Doubt: Convent Conversion Denied

April 21 -- Skynet Property Management’s months-long effort to convert a Catholic convent at 603-605 N. 2nd Street into first a boarding house -- and then a 30-unit apartment building -- ended Thursday, when the Zoning Hearing Board denied its request.

Josh Juffe, president of Skynet, which already owns and operates 80 low-income rental units in the city, said he had not decided whether to file an appeal.

Opponents to the project, which included area neighbors and the downtown group Capitol Area Neighbors, rejoiced at the decision.

“As an attorney, I think it was the right legal result, and, as a resident, I think it was the best practical result,” said Kathy Speaker MacNett, an adjacent property owner who filed a claim against the project, arguing its density and accompanying parking issues would have adverse effects on her and the neighborhood’s quality of life.

Skynet first sought a special zoning exception to turn the 17,000-square-foot building into a 39-unit rooming house, but the board rejected that plan in March because of the density and the limited parking in the neighborhood.

The developer returned in April seeking a variance for 30 units, including three one-bedroom apartments and 27 efficiency apartments to rent monthly, but the board denied the request by unanimous vote, citing incompatibility and inadequate parking.

“It seems we are trying to fit a round peg in a square hole,” said Marian Frankston, the board chair.

Through four board hearings, MacNett, CAN and other neighbors argued persistently against the project, claiming it would place too many people in a building that for decades has been used quietly by a handful of nuns in a communal setting.

Skynet dismissed the claim that density is an issue, noting the building, since the 1920s, had once housed as many as 40 nuns and, at one time, was partly used as a rooming house for young women coming from the country to work as secretaries in the city.

Rick Martini, listing agent for the property owner, the Diocese of Harrisburg, testified during the hearing that the property has been on the market for about six years and various developers have considered turning it into 12 to 15 upscale apartments and even a boutique hotel, but those proposals were eventually abandoned.

“The renovation costs, especially with a building that age, just didn’t make it economically feasible,” Martini said.

Supreme Court Votes Thumbs Down on Midtown Judgeship

April 19 -- The verdict is in -- and it's unlikely to make anyone in Harrisburg happy.

The state Supreme Court has decided to abolish one of Harrisburg's magisterial district judge seats, long-held by Judge Joseph S. Solomon. Solomon's district, which includes most of Midtown, now will be carved up and incorporated into several adjacent districts.

The office will be abolished at the end of the year, when Solomon retires. As a result, the court has ordered the seat, which had attracted six candidates, removed from the May 17 primary ballot.

"It is a disservice to the people of this community not to have a justice," said city Councilman Brad Koplinski at a candidates forum held at Midtown Scholar Bookstore tonight and hosted by Engleton Community Group.

Pennsylvania is trying to cut the number of district judgeships in the state as a cost-savings measure, using judicial retirements as opportunities for reductions.

More Soup For You: The Soup Spot Plans to Move, Expand

April 12 -- For months, Midtowners have been wondering what would occupy the prime, newly restored retail location at N. 3rd and Herr streets.

The answer is in: The Soup Spot is moving a block-and-a-half north to spacious new quarters, so diners now can sit and relax while enjoying some of Harrisburg's best soups.

Owner Randy Straub said he expects to open the eatery in late May, once he completes substantial interior renovations, which will feature a 1950s-style diner look.

For at least a year, Straub has been eyeing options to turn his cramped soup stand, which has no tables, into a full restaurant. He's been reluctant to move too far from his current spot, a prime area for the government worker lunch crowd.

The new location, though, should enable him to retain his current customers, while tapping into Midtown's large, vibrant residential community, he believes.

"It's really a perfect spot," he said.

He plans to cater to the Midtown community by staying open later -- until 8 p.m. on weekdays and 10 or 11 p.m. on weekends. With the emerging Midtown arts district, he also will feature local artists and musicians, especially during 3rd in The Burg. Fortunately, the 1,800-square-foot restaurant already comes with a large stage, as it last housed Nick's 1014 Cafe.

To keep business humming during the normally slow summer months, Straub said he will dedicate a portion of the restaurant as an ice cream parlor.

Straub plans to sublease his current location at 912 N. 3rd St. He said he's had significant interest in the spot, particularly from a person who hopes to open a takeout seafood restaurant.

Straub also has something in mind for the downtown crowd. With two partners, he is opening a late-night eatery that will specialize in all types of grilled cheese sandwiches, along with French fries. The new venture will occupy the former Lunch Box Xpress location at N. 2nd and Locust streets and should open in a few months.

Council Lawyers: City Should Negotiate Out of Debt Crisis

April 6 -- Negotiating directly with creditors and reaching a consensual agreement is the best course for Harrisburg as it attempts to dig out of some $282 million in incinerator-related debt, according to a report from a law firm providing the City Council with free legal advice.

The council today publicly released a 196-page report from New York-based Cravath, Swaine & Moore, which analyzes in detail the many options available to Harrisburg, including municipal bankruptcy, a state takeover of the city, a sale of city assets and the state-sponsored Act 47 financial review, which currently is underway.

The report concludes that direct negotiations, backed by the implicit threat that the city could declare bankruptcy, represents the quickest and most straightforward way for Harrisburg to resolve its crisis, while possibly cutting its debt load.

“Therefore, we encourage the City of Harrisburg to evaluate carefully all sources of value and its litigation risks and negotiate a consensual resolution with its creditors,” states the report. “Our contacts with them suggest that they are ready to reach an agreement to resolve the city’s financial problems.”

A second-best option would be Chapter 9 municipal bankruptcy, filed with the consent of creditors. If the city’s creditors did not agree to the terms of the filing, the bankruptcy process could be drawn out and expensive, with an unknown outcome, it says.

Cravath, Swaine & Moore has agreed to represent the city as it proceeds through its financial crisis, including possible creditor negotiations and other actions, at no cost until the end of the year.

The report indicates that other possible resolutions have more serious drawbacks. An Act 47 reorganization could work, but only as part of a comprehensive plan that involves all the stakeholders, including creditors, it says. Without such cooperation, the full burden of a resolution is placed upon the city and its taxpayers, while not stopping litigation or court-enforced debt collection.

“Any solution needs to be a comprehensive, global solution,” said Paul Zumbro, a partner at Cravath, Swaine & Moore, at a press conference following public release of the report. “We don’t think a piecemeal solution will work here.”

City Council members praised the report for its detail and thoroughness, saying that it will be an important reference as Harrisburg seeks to resolve its debt crisis. Councilman Brad Koplinski, however, was not confident that the city’s creditors, led by Assured Guaranty, which insures $210 million of incinerator-related debt, were open to negotiation.

“They have shown that they are not moved to negotiate,” he said. “They’ve made it clear that they do not intend to lose any money on this deal.”

Council members agreed that no immediate action would result from the report. The next concrete step should take place around June 1, when the Act 47 team is expected to release its comprehensive financial rescue plan for Harrisburg. The public then will have an opportunity to comment before consideration on its recommendations by City Council. 

If the council opts for municipal bankruptcy, a filing likely would come only after the Act 47 process has played out.

It's Official: Knight-Burney Named New Schools Chief

April 4 -- In a rerun of last month's vote, a split Harrisburg School Board tonight named Sybil Knight-Burney as the city's new superintendent of schools.

Knight-Burney, the acting superintendent, was appointed by a 5-4 vote to a full, three-year term at $160,000 per year.

The vote was the second time in a month that the school board of directors narrowly appointed Knight-Burney. Last month, several board members put her appointment on the agenda at the last minute, violating a statute that requires at least five days notice before such a vote.

The issue has deeply divided the board and the community. In February, a search committee had narrowed the choice for schools chief down to two people from outside the district. However, both candidates withdrew their names after the school board could not agree on a candidate and in light of vocal opposition by supporters of Knight-Burney.