Harrisburg, Pa., Petitions to Incorporate Development Nonprofit

Harrisburg has filed a petition with the Commonwealth Court of Pennsylvania to incorporate a nonprofit corporation to focus on long-term economic development and infrastructure improvements, according to the state Department of Community and Economic Development.

Impact Harrisburg, an action plan DCED official and city coordinator Fred Reddig filed late Monday, continues the implementation of the recovery plan in the state capital, according to the department, which is overseeing Harrisburg's recovery.

"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," DCED Secretary C. Alan Walker said in the statement.

The Harrisburg Strong Plan, which state-appointed receiver William Lynch filed Aug. 26, 2013 and Commonwealth Court Justice Bonnie Brigance Leadbetter confirmed one month later, provided for the earmarking of certain funds for economic development and infrastructure improvements within the 49,000-population city.

Economic development and infrastructure improvement funds - roughly $6.15 million for each - would be awarded semiannually.

Parking asset monetization made such funds available, according to DCED spokesman Steve Kratz.

Roughly 50% of the economic development funds would be targeted for large-project grants, 30% for community building grants and 20% for contingency grants. About 90% of the infrastructure Improvement funds would go toward infrastructure grants and 10% for contingency grants.

Harrisburg's recovery plan, which erased more than $600 million of debt and kept the city out of bankruptcy, hinged on the sale of the city's incinerator to the Lancaster County Solid Waste Management Authority and a long-term lease of parking assets from the city and the Harrisburg Parking Authority to the Pennsylvania Economic Development Financing Authority.

Harrisburg exited state receivership on March 1 and returned to mainstream oversight under Pennsylvania's Act 47 workout program for distressed communities.

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 concerns. 

Lynch, a retired Air Force general, appointed a nine-member task force in January, co-chaired by Doug Hill and Les Ford. The group met several times over the past few months.

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