The Harrisburg Midtown Arts Center (H•MAC), a cornerstone of the city’s arts and entertainment scene, has abruptly closed its doors, leaving a void in the community and sparking a contentious dispute with the City of Harrisburg over unpaid amusement taxes. The closure, announced Tuesday, stems from the city’s refusal to renew the venue’s essential operating licenses – health and mercantile licenses – due to a substantial debt, according to both HMAC leadership and city officials.
The situation has quickly devolved into a public disagreement over the amount owed and the city’s willingness to negotiate a payment plan. While both sides acknowledge the debt exists, the figures cited and the narrative surrounding the closure differ significantly. The future of the 34,000 sq. Ft. Multi-venue arts and entertainment complex, located in Harrisburg’s historic Old Midtown district and listed on the National Register of Historic Buildings, remains uncertain.
Dispute Over Unpaid Taxes
City Solicitor Neil Grover stated that the city has been attempting to work with HMAC for some time, but that the venue’s offers to settle the debt were insufficient. “If they would pay their bills like most taxpayers do, most good corporate citizens do, then that would solve the issue,” Grover said, adding that the city was lenient with HMAC last year regarding the same issue. He also noted that HMAC owes the city for unpaid trash bills. Grover indicated that HMAC’s proposed payment plan amounted to “pennies on the dollar” and was unacceptable because it involved funds already ordered by a court to be paid to the city.
John Traynor, one of HMAC’s co-founders, estimates the unpaid entertainment tax to be around $250,000 or $300,000. Harrisburg’s entertainment tax is 10% of each ticket sold, with the city and school district each receiving 5%. Traynor claims that HMAC’s legal representatives attempted to negotiate a payment plan with the city but received no response. The venue had been effectively closed for the past two weeks prior to the official announcement, awaiting the license renewals that never came.
Financial Challenges Post-COVID
Chris Werner, HMAC’s owner, addressed the issue at a Harrisburg City Council workshop meeting, acknowledging the debt but attributing it to financial difficulties experienced following the COVID-19 pandemic. “It’s been hard coming out of COVID,” Werner said. “When you have a show that fails and you still have a 10% tax after you’ve already lost money, it’s easy to get behind.” This highlights the precarious financial position many venues faced as they attempted to recover from the pandemic’s impact on the live entertainment industry.
Grover disputed claims that city leadership declined meeting requests, stating that the city has been in communication with the venue and its attorney “multiple times over several years.” He cited recent communications on February 10th and 12th, as well as previous discussions last summer and a year ago.
Impact on Harrisburg’s Arts Scene
The closure of H•MAC represents a significant loss for Harrisburg’s arts and entertainment community. Opened in 2009, the venue has hosted a diverse range of performances and events, contributing to the vibrancy of the Midtown district. The situation also adds to existing anxieties surrounding the ongoing construction at the historic Broad Street Market, another vital community hub. Concerns are growing about the potential for further business closures and the overall economic health of the city’s cultural sector.
The lack of essential licenses, including health and mercantile licenses, legally prevents H•MAC from operating and maintaining its liquor licensing requirements through the Pennsylvania Liquor Control Board. This effectively shuts down the venue until the tax issue is resolved.
What comes next for H•MAC remains unclear. The immediate future hinges on whether a resolution can be reached between the venue and the city regarding the outstanding debt. The city has indicated a willingness to work with HMAC, but only if a viable payment plan is presented. The community awaits further developments, hoping for a path forward that allows this important cultural institution to reopen its doors.
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