Harrisburg council reviews mixed-use development with no affordable housing units

The Harrisburg City Council held a legislative session on July 8, 2025, focusing on a significant mixed-use development project at 2601 North Third Street. The project, presented by Mister Knight, includes three buildings with a total of approximately 230 apartments, alongside retail spaces designed to serve the neighborhood. The development aims to create a town center atmosphere, featuring amenities such as a grocery store, restaurant, gym, and coffee shop.

Building 1 is partially occupied and consists of 134 apartments, while Building 2 is currently an executive office suite. Building 3, which is unoccupied, is expected to house between 96 and 100 apartments. The project will provide 620 parking spaces, with 452 designated for residents and visitors. The applicant is seeking historic tax credits to support the phased development, which will unfold in three stages.

During the meeting, council members expressed concerns regarding the lack of affordable housing within the project. The proposed rents for the apartments are set at $1,450 for one-bedroom units, $1,199 for studios, and $1,700 for two-bedroom units. While the apartments are described as well-finished, the absence of affordable options raised questions among council members and community members alike.

Community outreach efforts were highlighted, with the applicant conducting door-to-door visits within a one-block radius and holding public meetings to gather feedback from residents. Approximately 50 full-time jobs are anticipated from Building 3, with an additional 90 jobs expected from Building 1.

Council members discussed the importance of addressing parking concerns for local residents, particularly during the construction phase. A proposal was made to allow residents to utilize nearby parking facilities to alleviate potential inconveniences.

The council ultimately recommended support for Bill 5 of 2025 and Resolution 33 of 2025, which aim to facilitate the project's progression. The discussions underscored the need for a balance between market-rate housing and affordable options in future developments, reflecting the community's diverse needs. A follow-up public meeting is planned for later in July to further engage residents and address ongoing concerns.