The city of Harrisburg is asking a federal court to dismiss the bankruptcy case of Uptown Partners LP, the Maryland-based owner of the Governor’s Square apartment complex in uptown Harrisburg
In a filing last month, the city argues that the deteriorating apartment complex is “unlikely” to find a buyer and that state court would be a better venue for dealing with the property’s ongoing violations of city codes.
Uptown responded last week by repeating its allegations that the city is hindering a sale of the complex. It also claimed that the city and its redevelopment authority have refused to take ownership themselves.
“The only realistic avenue is either for a government entity to acquire the property or for a buyer to acquire the property,” Uptown wrote in its filing. “Nonetheless, the city of Harrisburg continues to oppose any buyers which have come forward.”
In a statement, city solicitor Neil Grover argued that Uptown could draw on resources of affiliated entities he linked back to Landex Development, a firm headed by Peter Siegel that is active in affordable housing.
“They have chosen not to avail themselves of their own resources and therefore to starve the operation here,” Grover said.
Chernicoff dismissed the criticism. “Mr. Siegel is at best an owner of a partner in the debtor. He is not a partner or owner of Uptown.”
iegel has put more than $2 million into Governor’s Square to keep it going, but has no reason to put in more, “as the property can obviously not pay the money back,” Chernicoff said.
How did we get here: The back and forth is the latest twist in a bankruptcy case that has lasted more than a year.
Uptown Partners filed for bankruptcy in May 2023 after seeing Governor’s Square hit by hundreds of code violations from the city, as well as complaints from residents.
In 2023, the bankruptcy court approved an auction, which yielded three private-sector bidders.
Complications arose, however, due to the affordable-housing status of Governor’s Square: Any sale requires approval from the U.S. Department of Housing and Urban Development.
HUD wants to see a plan for fixing up the property, which is said to need milions of dollars in repairs. But Uptown has accused the city of withholding information that potential buyers need to develop a plan.
The city has disputed the allegations.
The current conditions: Court filings describe a 222-unit apartment complex that is falling further into disrepair and continuing to rack up code violations.
The property’s management company said in May it was concerned that Uptown lacked the resources to keep paying it for its services.
