INNOVATION INTERSECTION // Transportation center offers incubator space

BYLINE: DAVID DeKOK, Of The Patriot-News

The Technology Council of Central Pennsylvania is turning one of the city's lesser-known commercial spaces, the Harrisburg Transportation Center, into an innovation incubator for startup technology companies.

Amtrak owns the building at 415 Market St. and uses part of the main floor for its ticket office and passenger waiting area. The bus station is downstairs. Harrisburg Redevelopment Authority leases the rest of the historic building.

"We've got two startups, including Corporate University Xchange," said Kelly Lewis, CEO of the tech council. "We're looking to add more rental space and properties in and around the train station."

Corporate University Xchange, which advises large organizations on how best to develop and manage their talent, was purchased by the Todd family in 2004 and moved from New York City to Harrisburg last year. Susan Todd is the president. Her brother, Alan Todd, the founder of KnowledgePlanet in Mechanicsburg, is the chairman.

Alan Todd left KnowledgePlanet last fall in what was believed to be a falling out with his investors.

KnowledgePlanet sells learning-management software that costs an average $1 million. The software delivers e-learning courses to corporate employees and tracks how well they do.

Lewis and Todd are enthusiastic about turning unused space on the main and second floors of the transportation center into a place where startup technology or tech-service companies can rent cheap space to bring their concepts to market and to interact with other tech people, especially from the nearby Harrisburg University of Science and Technology.

In other words, they would be able to innovate with fewer of the day-to-day hassles tech startup companies often face.

"I sure wish we had an incubator back in 1986 when I started ADT/KnowledgeSoft in my attic in Middletown," Todd said. "I had no access to inexpensive office space, no copier, no voice mail, no accountant, no lawyer and, most importantly, no mentors."

Much of the space in the transportation center has been vacant or under-utilized for years. When Lewis inspected the building in late 2005, the last Tom Ridge campaign office -- from the 1998 gubernatorial campaign -- was still there. The only long-term tenant has been the U.S. Office of Surface Mining on the third floor.

Using money from his regular budget provided by member dues, Lewis initiated extensive renovations of the tech council's office space at the north end of the second floor. That gave the rooms a modern look and up-to-date technical efficiencies. He moved in a year ago.

Lewis' corner office will give him a front-row seat to watch construction this year of the Harrisburg University tower at Market and Fourth streets. Harrisburg University is renting some of the second-floor space, but Lewis has about 2,000 square feet to work with. That will increase when the university moves into its new building.

Corporate University Xchange adjoins the tech council rooms. Another tenant is Wendt Communications, headed by Doug Wendt, former Cumberland County economic development director. He advises startup companies on communications and strategic planning.

The space in the building that gets Lewis really excited is the large, empty rooms on the north end of the main floor. Sporadic attempts have been made to put a fine-dining restaurant in this space, but none of those efforts have come to fruition.

The highlight of this space is a huge window that overlooks the railroad tracks, but the window is so thick that noise from the arriving and departing trains barely registers. Lewis said the main floor area still needs a lot of infrastructure work, but he envisions adding it to the incubator.

Lewis' plans include the possibility of expanding the incubator into the block of buildings on the east side of South Fourth Street between Market and Chestnut streets, including the historic Zion Lutheran Church and the Alva Restaurant.

However, the Rev. Michael Heckathorn, pastor of Zion Lutheran Church, said the church is not for sale. He said sale of the church was included as one option in a long-range planning study conducted by the 400-member church, where the congregation has been slipping.

"There's nothing to it," Heckathorn said.

Mayor Stephen R. Reed said the city would oppose any redevelopment plan that called for demolition of the church and would reserve judgment on less drastic plans. He noted that two U.S. presidents -- the ill-fated William Henry Harrison, who died of pneumonia a month into his term, and John Tyler, who succeeded him -- were nominated at the Whig Party convention held in the church in 1840.

The church is on the National Register of Historic Places, but that provides a level of protection only if a redevelopment project includes federal money. Even that does not provide automatic exemption from change or demolition, only a required level of review.

Todd said he hopes the downtown technology hub, no matter which buildings it ultimately encompasses, can be part of a general rebranding of the Harrisburg region as a technology hub recognized around the world.

"It's a relevant part of why I'm downtown at the train station building a global technology company and why I'm on the boards of places like Harrisburg University or the tech council," he said.

DAVID DeKOK: 255-8173 or ddekok@patriot-news.com