As released by the Office of the Department of Community and Economic Development.

City of Harrisburg Continues Recovery Process; Coordinator Seeks Court Approval of Governance Proposal and Action Plan to Form Economic and Infrastructure Development Non-Profit; IMPACT HARRISBURG

Harrisburg – The Department of Community and Economic Development (DCED) announced that City Coordinator, Fred Reddig, has filed with Commonwealth Court an Application for Approval of the Governance Proposal and Action Plan for the incorporation of a not-for-profit corporation, “IMPACT HARRISBURG,” to focus on long-term economic development and infrastructure improvements. The action continues the implementation of the Harrisburg Strong Plan to restore fiscal stability for the people of Harrisburg.

“The governor acted decisively to provide the resources necessary to charter the City of Harrisburg out of financial turmoil and onto a path of fiscal stability and growth,” said DCED Secretary C. Alan Walker. “The addition of a dedicated non-profit organization solely focused on economic growth and infrastructure enhancements will be a tremendous boost to the City’s overall recovery efforts.”

The Harrisburg Strong Plan, as filed by then Receiver of the City of Harrisburg, Major General (Ret.) William Lynch on Aug. 26, 2013 and confirmed by the Court Order of Judge Leadbetter of Commonwealth Court on Sept. 23, 2013, provided for certain funds to be set aside for purposes of funding economic development and infrastructure improvements within the City of Harrisburg. The funds were obtained through the successful parking asset monetization.

The Plan also provided for the Harrisburg Task Force for Infrastructure and Economic Development, charged with the development of a Governance Proposal and Action Plan that would guide the work of a non-profit corporation that will address these vital issues. The nine-member Task Force co-chaired by Doug Hill and Les Ford was appointed in January 2014 by then Receiver Maj. Gen. (Ret.) William Lynch.

The first meeting of the Task Force was convened on March 10, and throughout the following four months, the group conducted regular meetings and subcommittee meetings, as well as convened two public meetings to encourage community comment and engagement.

On Oct. 6, Commonwealth Court Judge Bonnie Brigance Leadbetter entered an order directing the Coordinator to publish a notice of the filing Plan on or before Oct. 17. The notice, published in the Patriot News on Oct. 9, provides that any responses to the application shall be filed with the Court on or before November 14, 2014. If the responses filed with the Court are determined to be in the nature of an objection to the Application, the Court may schedule a hearing to consider the objections. If no objections are filed, the Coordinator anticipates that the Court will approve the Governance Proposal and Action Plan.

The proposal recommends the formation of a single not-for-profit corporation to implement efficient coordination of economic development and infrastructure improvement efforts as identified in the Harrisburg Strong Plan. The proposal further recommends the incorporation of a 501(c)(3) to be named “IMPACT HARRISBURG”, to be governed by a nine-member board of directors appointed by the Coordinator for the City of Harrisburg, with recommendations provided by Harrisburg City Council, the Mayor of Harrisburg and Dauphin County.

The purpose of the not-for-profit corporations is to “lessen the burdens of government, promote commerce, encourage economic development and employment, attract new businesses, combat community deterioration, encourage stabilization and stimulation of new job development and retention of jobs.”

The Economic Development funds, currently in the approximate amount of $6.15 million, would be awarded on a semi-annual basis with approximately 50 percent of the funds targeted for large project grants, 30 percent targeted for community building grants, and 20 percent targeted for contingency grants.

The Infrastructure Improvement funds, also at approximately $6.15 million, would be awarded on a semi-annual basis with approximately 90 percent targeted for infrastructure grants, and 10 percent targeted for Contingency grants. Designated for emergencies, application for contingency funds could be made at any time by eligible applicants.

On March 1 2014, Harrisburg became one of only a few cities in the nation to successfully emerge from state receivership. In granting the Application to Vacate the Receivership, Judge Leadbetter authorized ongoing implementation of the Harrisburg Strong plan by a Coordinator. In turn, DCED Sec. Walker appointed Fred Reddig as the Coordinator responsible to direct ongoing implementation of the Plan. Reddig, who has been involved in the management of Harrisburg’s fiscal crisis since 2010, continues working with city officials to implement the Harrisburg Strong Plan.

Maj. Gen. (Ret.) William Lynch served as Receiver for the City from May 24, 2012, to March 1, 2014. Although the key debt related transactions have been completed, there remain significant operational issues to ensure Harrisburg’s long term sustainability. Commonwealth Court retains jurisdiction over the Harrisburg Strong Plan to ensure that all parties comply with all remaining aspects of the recovery plan and that the Plan is fully implemented to its successful completion.

Photo/Natalie Cake file 2013