Commission approves Penmark plan to convert Polyclinic hospital building into 130 apartments and retail space
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Summary
Penmark Harrisburg Holdings received approval to convert Building 1 of the former Polyclinic Hospital at 2601 North Third Street into a mixed-use building with 130 residential units and retail; staff required ADA sidewalk work, refuse coordination, signage compliance, and sheltered bike parking.
The Harrisburg Planning Commission approved a large adaptive-reuse proposal to convert the southernmost building of the former Polyclinic Hospital at 2601 North Third Street into a mixed-use property with 130 apartments and street-level retail.
Planning staff described the 6.36‑acre property and its historic institutional character, noting Building 1 alone consists of roughly 216,440 square feet and that the application covers the southernmost building only. Staff recommended approval with conditions aimed at public access, safety and long-term usability: portions of the Fourth Street sidewalk must be made ADA compliant (including a loading-dock crossing), vehicular crossing points should employ raised crosswalks, refuse-container placement and screening must be coordinated with Public Works, signage must comply with applicable regulations or secure zoning relief, and sheltered bike parking should be provided at main entrances with secured long-term storage in amenity areas.
Gregory Hallquist and David Johnson of Penmark Harrisburg Holdings and John Anderson of Cornerstone Consulting confirmed they accept the staff conditions. Hallquist described flexible space reservations for future development within the building and emphasized an objective to activate the street and support neighborhood businesses. The applicant team said multiple separate courtyards, segregated entrances and substantial on-site parking will help separate retail loading operations from residential access.
Commissioners asked detailed questions about the loading-dock location, retail logistics and bicycle parking; the applicant said the loading dock sits in a back courtyard and that bike parking and multiple tenant/retail entrances are planned. "We're going to have plenty of bike racks in various locations in Building 1," an applicant representative said. The commission approved the plan by voice vote after a motion and second were recorded.