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Capitol View Commerce Center might soon have new owner

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The Capitol View Commerce Center sits at Cameron and Herr streets. It has been vacant since mid-2008, when contractors walked off the job because they were not being paid.
The Capitol View Commerce Center sits at Cameron and Herr streets. It has been vacant since mid-2008, when contractors walked off the job because they were not being paid. - (Photo / File)

Once thought to be the linchpin of redevelopment along Harrisburg's Cameron and Herr streets, the unfinished Capitol View Commerce Center could soon have a new owner and use.

Cumberland County developer Dan Deitchman, owner of Brickbox Enterprises Ltd., is working with the Harrisburg Police Athletic League to acquire the property through federal bankruptcy court.

Deitchman said details are still being fleshed out on ownership structure. The likely scenario has the PAL occupying up to 50 percent of the property as part of a first phase. The rest could be occupied by other tenants to help cover operating costs.

The plan is to utilize parts of the structure that are in good condition, he said. Other portions would be removed. Outdoor soccer fields and other indoor athletic uses would adorn the site, Deitchman said.

PAL, which is a nonprofit, has been working on securing a new home since March, said Jennie Jenkins, the organization's president.

Deitchman's proposal is one of two that has been received by the trustee in the case against Cameron Real Estate LP. A court hearing is scheduled for Nov. 19 with a motion to sell.

"I expect the court to make a ruling quickly, assuming there are no objections," said Markian Slabodian, the trustee for the bankruptcy estate.

The motion is to sell the property free and clear of all liens. Any net proceeds from a sale would go to Metro Bank, the first lienholder on the real estate, Slabodian said.

West Shore developer David Dodd II pleaded guilty in November 2011 to federal fraud charges in connection with the unfinished $28 million project. A sentencing date has yet to be scheduled.

Capitol View was planned as a 215,000-square-foot printing, office and retail facility at Cameron and Herr streets.

But contractors walked off the site mid-build in spring 2008, claiming they had not been paid. The property has sat idle since. It is on the proposed list of Keystone Opportunity Zone sites in the city.

Dodd was promised more than $17 million in local, state and federal money to build the facility. He spent more than $8 million in public money before the project soured, according to financial records.

Prosecutors are seeking $21.5 million in restitution.

Click here to read the court notice of potential sale.

Jason Scott

Jason Scott

Jason Scott covers state government, real estate and construction, media and marketing, and Dauphin County. Have a tip or question for him? Email him at jasons@cpbj.com. Follow him on Twitter, @JScottJournal. Circle Jason Scott on .

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