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Committee advances $3.29 million budget reallocation to cover Broad Street Market overruns
Summary
Council’s Budget & Finance committee moved to add a resolution that reallocates $3,286,936 to cover Broad Street Market construction change orders and a wall collapse, backed by CDBG drawdowns and increased insurance recovery estimates; officials said total project cost is now about $23.7 million and the market is targeted to reopen by May 31, 2027.
Vice President Jones’ Budget & Finance committee on Wednesday moved to forward a resolution that would amend the 2026 budget to cover cost overruns at the Broad Street Market.
Assistant to the finance director Alexander Berenstein and accounting manager Brian McCutcheon told council the measure reallocates $2,286,936 from CDBG funds and proposes increasing the insurance reimbursement projection by $3,000,000 to support $3,286,936 in additional Broad Street Market expenses. McCutcheon said those increases respond to multiple contract change orders and a wall collapse that required shoring and other remediation.
"We project that the total project cost will be approximately 23.7 million," McCutcheon said, estimating the combined effect of posted and pending change orders and contingencies. Senior project manager Debbie Reinhardt added that construction costs and remediation to stabilize a collapsed wall accounted for a substantial portion of the increase.
Council members pressed for detail on why costs rose and whether more change orders were expected. McCutcheon said additional change orders had been requested and that the city was working to quantify remaining contingencies; he said the project is nearing heavier lifts and that insurance claims will be pursued for reinsurable items.
The reallocation also includes housekeeping changes to several grant and expense lines, including a $200,000 general-fund adjustment to equalize funding listed for the Harrisburg Housing Authority and $30,200 in adjustments to grants for youth and summer programming. Staff said one reason for the budget adjustments was that some 2025 award activity was not drawn down and needed clearer line-item identification to allow the mayor’s office to issue award letters.
Councilwoman Rawls expressed concern about the Broad Street Market timeline and prioritization; staff responded the market work is targeted for substantial completion by May 31, 2027. Vice President Jones moved to add Resolution 40 of 2026 to the next legislative-session agenda for a formal vote.
The committee did not take a final vote on the underlying budget reallocation during the work session; the matter will be scheduled for the legislative session where the council will formally consider the resolution.
