Harrisburg University’s ‘success story’ gives boost to city’s downtown, business leaders say

The gamble made nearly 20 years ago to create Harrisburg University — which not so long ago was a cash-strapped institution with low enrollment — seems to have paid off.

Stakeholders and supporters gathered downtown Friday at South Third and Chestnut Streets to celebrate the ground breaking for the university’s Health Science Education Center. The 17-storied building, 265 feet tall, is expected to open in the Fall of 2021.

The building’s neighbors say they couldn’t be happier with the impact the university has had — both past and future — in reshaping Harrisburg.

“Without speaking with all of our tenants, I feel certain that the folks in Strawberry Square view this as a very positive development,” said Neal West Sr., Harristown Enterprises, Inc. vice president of real estate and legal counsel. “Their new building and the people it will bring to our downtown will be a wonderful plus for our city."

There has been an increased interest in leasing spots in Strawberry Square, West said.

"We believe that much of this is due to the strength of the downtown and many benefits of being here, including proximity to the state, Pinnacle and other businesses downtown,” he continued.

The newest highrise — which will be fourth tallest building in Harrisburg — will be embedded in a city block surrounded by restaurants, retail shops, and apartment complexes. And, it’s just a few blocks from the state Capitol Complex.

The university welcomed its first students almost 14 years ago. In that short time, it has gone from a low-enrollment university operating on a shoestring budget to a thriving institution with 6,000 graduate students and about 1,500 full-time and part-time undergraduate students.

Among its accomplishments, the university created an eSports program, and its eSports team this year won a national championship. Also, this fall, Harrisburg University is planning to host a National Geographic speaking series.

Developer Ralph Vartan said it’s not just a building, but a "vision of our community.”

"It represents world-class talent that is attracted to Harrisburg for learning, teaching, research, and work,” Vartan said. "It also represents the first new high-rise downtown since the end of the great recession. The last new high-rise to be built was also built by Harrisburg University.”

State and local lawmakers said they are certain graduates, who utilize the new building’s space, will affect health care in the mid-state once they attain their degrees. The new 275,000 square-feet of academic space will accommodate at least 1,000 new students, who can pursue degrees in nursing, pharmaceutical sciences, and other allied health programs, according to the university.

The building will also house the university’s Advanced Manufacturing and Interactive Media programs. It will offer students a 150-seat tiered auditorium and 17th-floor multipurpose room.

"Harrisburg University is growing and expanding, which is generating more people — students, professors, administrators, customers, and others — and more activity downtown each year,” West said. “We are thrilled with their success and support their ongoing growth and expansion. It is a great experience to have them as our neighbor.”

The economic impact will be "immediate,” Vartan said. He said it will occur "both during and after construction.”

"Most obviously, there will be additional demands for residential units and office space,” he said. “There should be a ‘virtuous circle,’ a multiplier effect whereby additional residents and job opportunities lead to demand for retail services, which creates positive energy and attracts even more residents and job opportunities.”

The four-year private, non-profit university was incorporated in 2001, and the first class enrolled in 2005. The curriculum is focused on science, technology, engineering and math programs. The university built its 16-story academic center in 2009, and has student housing in downtown residential buildings at 335 Market Street and 301 Market Street.

Here’s a look at how it’s grown in just a few years, according to statistics published in a February 2019 article in the Chronicle of Higher Eduction:

  • Annual revenue - 2013: $8 million Today: $80 million
  • Available Cash – 2013: $300,000 Today: $30 million
  • Debt Due – 2013: $3.6 million Today: $4.2 million
  • Faculty – 2013: 12 full-time and 33 corporate (adjunct) Today: 94 full-time and 318 corporate
  • Enrollment – 2013: 300 undergraduates and 50 graduate students Today: 6,500 students – 600 of them undergraduates – from 103 countries

It’s an honor that the city of Harrisburg is found in the university’s title, Mayor Eric Papenfuse said. He noted there are thousands of university students “roaming the streets,” who are getting a quality education.

Those students, he said, are going to be the "catalyst” to a larger economic picture.

Harrisburg University will spend $100 million on the newest building. No tax dollars will be used to fund the construction of the 17-story tower.

The university’s success story, and the success stories of its future, happen because community-wide efforts are student focused, Harrisburg University President Eric Darr said. When employers are looking for a workforce, they won’t have to look too far.

With the addition of a ‘Contractor U’ workshops are aimed at helping local contractors bid on and participate in projects such as construction of the university’s newest tower.

"It is HU’s hope to see more women and minority-owned businesses in the local region be able to participate in these major construction projects,” he said.

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