Council advances proposal to convert Polyclinic nurses' quarters into 96 apartments

Planning staff and the applicant presented Resolution 73, a preliminary/final land‑development plan to convert Building 3 (the former nurses’ quarters) at 2601 North Third Street—the Polyclinic campus—into a 96‑unit multifamily building with neighborhood‑oriented commercial/community space on the first floor adjacent to an arcade and courtyard. Planning staff noted planning‑commission conditions: coordinate refuse storage and access with Public Works (recommend consolidating refuse to Building 1’s vehicular access), follow city‑engineer recommendations to improve pedestrian infrastructure, and install bike racks near the entrance.

The applicant, represented by Penmark (Greg Hallquist and colleagues), said the team has advanced design with roughly 50 drawings submitted and is pursuing federal and state historic‑tax credits because the building is listed on the National Register of Historic Places. The developer cited a traffic‑impact study showing that the apartment use would generate fewer peak trips than the building’s most recent institutional use, and said the campus holds several hundred parking spaces with 461 available for allocation among buildings. The developer estimated Building 3’s construction‑phase employment at 50 full‑time equivalent jobs (peaking at about 70) and noted efforts to recruit minority‑owned and local subcontractors via an MBE/WBE outreach program.

Councilors asked about affordability; the developer said the project is not financed with low‑income housing tax credits but that starting rents (as tested against Dauphin County and HUD AMI tables) would fall near HUD‑defined low‑income rates for some unit types. Planning and applicant said the project will proceed through land‑development review and historic‑tax‑credit processes; the committee recommended the resolution be added to the next legislative session for a formal vote.