"Collaboration on the redevelopment front continues in Midtown." -- Central Penn Business Journal
MOVING AHEAD
Furlow transformation, art museum project closer to reality in Midtown Harrisburg
By Jason Scott
September 30, 2011
Harrisburg and synergy — two words that have yet to fit together in the puzzle that is the capital city's financial future.
But while city leaders remain entrenched in their positions over the actions needed to lift Harrisburg out of fiscal ruin and the state gears up for a takeover, collaboration on the redevelopment front continues in Midtown.
The latest effort is taking place along North Third Street and being led by Harrisburg-based GreenWorks Development and developer Dan Deitchman, who heads Riverview Manor Associates.
The tandem, known as Furlow Partners Inc., is aiming to transform the city's historic Furlow Building into apartments and retail or office space.
Several attempts have been made over the years to tackle the extensive restoration project, but none have taken off. The 21,500-square-foot building, across from the Broad Street Market, has sat idle for nearly 30 years.
"It clearly stands out as an anchor building," said Matt Tunnell, senior vice president at GreenWorks. "Bringing it back to a more prominent position as a real feature of Midtown is important."
GreenWorks is no stranger to redevelopment in that part of the city. It owns the Campus Square Building, a 75,000-square-foot mixed-use commercial building on North Third Street, across from Harrisburg Area Community College's Midtown campus.
Deitchman in 2009 finished revamping the historic Riverview Manor building on Front Street into 76 homes.
The developers are planning to spend $5 million to turn the six-story building into 24 apartments, most with one bedroom; with 1,000 square feet of retail or office space on the first floor. A $2.5 million grant from the state's Redevelopment Capital Assistance Program, also known as RCAP, which the developers must match, was authorized in June, Tunnell said.
The Harrisburg Planning Commission and Harrisburg Zoning Hearing Board have approved the project. The Harrisburg Architectural Review Board will vet it Oct. 3. After that, the City Council may review the plans, Tunnell said.
The developers have been granted developer status by the Harrisburg Redevelopment Authority, which owns the property at 1222 N. Third St. The sale of the building is expected to close in October, Tunnell said, hoping full construction begins by the end of October.
Some minor demolition and interior investigation work has begun, he added. The project, which is in a Keystone Opportunity Zone, is expected to take 12 months to complete. The developers will gut the interior, add stairs and an elevator to the back of the building and restore the front façade to resemble its early 20th century look, Tunnell said.
The KOZ is a state-sanctioned tax incentive, usually for 10 years, that exempts developers and property owners from most city and state taxes in defined areas. The KOZ that the Furlow Building is in began in 2010.
"We think the KOZ is going to entice people to take a look at moving in," Tunnell said. "I think the more housing, the more people moving into Harrisburg, the better."
The Riverview Manor project and WCI Partners' Olde Uptown neighborhood revitalization helped jump-start the quiet explosion in Midtown, he noted.
"With more people moving into the city, it certainly should help drive retail," Tunnell added. "They all just build on each other."
The Furlow Building will play a key role in continuing the redevelopment of Midtown, Deitchman said. Another current project of note is the 1500 Project on Sixth and Reily streets.
Susquehanna Township-based developer Vartan Group Inc. has wrapped up steel installation work on the 1500, a $13.6 million condominium building with street-level retail space.
The 1500, which is near the site of the future $144 million federal courthouse, will include 10,000 square feet of retail space on the first floor, with 43 condos on the top four stories.
The project is on schedule for completion and move-in around March and April, CEO Ralph Vartan said.
The Furlow effort also includes adding on-site parking, which has never existed, as well as additional tenant spaces at adjacent parcels.
"I think we'll also add to the streetscape and marketability of adjacent properties," Deitchman said, anticipating additional foot traffic as a result of the completed project.
The synergy in the development community is benefiting everybody, he said, noting that additional acquisitions are possible in the near future.
"We all have proved that we are here and we will do things no matter the political climate," Deitchman said. "We're well vested and we'll try to do our best to continue the positive efforts."
Down the street at North Third and Calder streets, approvals are piling up for the proposed Susquehanna Art Museum project.
The proposal includes reusing the Keystone Building, a former bank property owned by GreenWorks, and constructing a 16,000-square-foot, two-story addition, said Andrew Giorgione, a SAM board member.
The museum should serve as another anchor in the Midtown community, he said.
"I think there is a pretty well-defined and even expanding arts corridor along Third Street," he said, calling this project an education driver that complements the community's established assets.
The area is home to the Midtown Cinema, Stage of Herr, the Midtown Scholar Bookstore and other galleries and shops.
"(The museum) will be a tremendous addition and focal point for the city and the region," Tunnell said.
The museum project also will be on the Harrisburg Architectural Review Board's Oct. 3 agenda. The cost has been pegged between $6.2 million and $6.5 million. The state has committed $5.5 million between RCAP and Growing Greener funds, Giorgione said.
The board is hoping to break ground before the end of the year. Construction and renovation work on the bank building are expected to take up to 10 months, Giorgione said, with a possible opening by Christmas 2012.
This article appeared in the Central Penn Business Journal and is available online here.
