Harrisburg Mall redevelopment plan announced; demolition begins next year

HARRISBURG, Pa. (WHTM) — The owners of the Harrisburg Mall have officially shared their redevelopment plans for the future “Swatara Exchange”.

Who will stay, who will go?

abc27 news reported back on Wednesday, December 13, when several tenants of the Harrisburg Mall shared that they had received eviction notices, which will require them to vacate the premises by January 31, 2024.

According to the Harrisburg Mall owners (St. John Properties), the existing Bass Pro Shop and Applebee’s will be the only storefronts to remain operational. The company also shared that the former Toys R Us building at 3405 Paxton Street will be marketed for sale or lease.

“When formulating our long-term strategy for Harrisburg Mall, we factored in trends occurring throughout the retail industry, changing consumer shopping patterns, the local real estate landscape, and the greater Harrisburg economic climate,” Lawrence Maykrantz, President, and CEO of St. John Properties said. “It was extremely important that we satisfy Swatara Township residents, Dauphin County taxpayers, and the regional business community. After careful consideration, research, and planning, we believe we have arrived at a solution that leverages our company’s strengths and experience, and which will provide long-term value and benefits to the community.”

The redevelopment plan

<em>St. John Properties redevelopment site plan for Harrisburg Mall</em>
St. John Properties redevelopment site plan for Harrisburg Mall

St. John Properties says that their new development plan, which they call the ‘Swatara Exchange’, will entail the construction of 13,600 square feet of single-story office space, alongside nearly 200,000 square feet of single-story multi-use space.

In total, 12 new buildings will be constructed.

The company classifies these new spaces as “Flex/R&D” since the spaces will be easily adaptable to meet the needs of a wide variety of future users. The buildings will be separated into fully customizable bays, and they will feature rear service courts for truck loading, an abundance of parking, and other desirable features.

These bays will be designed to accommodate professional services, medical, wholesale, light manufacturing & distribution, scientific research, and early childhood education.

Additionally, the Swatara Exchange plan includes the development of nearly 50,000 square feet of retail space and two new retail pads that will be marketed to restaurants, financial institutions, medical providers, convivence stores, etc.

“While some retail shopping centers continue to perform successfully, the pandemic and rise of e-commerce have taken their toll on enclosed malls. It has become apparent that the best use for this property isn’t pure retail, but rather a business community with a diversified mix of uses,” Maykrantz added. “Swatara Exchange will emerge as a long-term job generator and hub for businesses small and large. This redevelopment will add to the local tax base while contributing significantly to the economic health of the entire region. We are confident that this project will inject valuable amenities, services, and new vitality to the area.”

Project timeline and community benefits

According to St. John Properties, demolition of the current Harrisburg Mall is expected to begin in March 2024 and will be completed in just over a year. Following demolition, mass grading will be completed by late 2025.

Phase 1 of construction and tenant fit-out work will extend from the fall of 2025 to the fall of 2026, which will coincide with PennDOT’s ongoing I-83 capital beltway project.

REALTED: I-83 Capital Beltway construction to begin in Harrisburg, Dauphin County

Once completed, St. John Properties says that the new Swatara Exchange will support up to 1,000 new jobs in the area. Furthermore, the project is anticipated to provide $1 million of additional tax revenue annually.

abc27 news will keep you updated as more information becomes available.

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