Now even the local Mall is in default and facing foreclosure  

Commerce Bank, which holds the mortgage on the Harrisburg Mall, announced yesterday that mall owner is in default and the bank is seeking possession of the property.  

According to the mortgage holder, the mall owner has been in default since August 15. and nearly $50 million is due in principle and interest.  

The bank notified all mall tenants to pay their rents directly to the bank. 

This mall, located near the intersection of Interstate 83 and Paxton Street was built around 1971. When it opened, it was the first enclosed mall in Central Pennsylvania. The original anchor tenants were Gimbels, John Wanamaker and a large two level J. C. Penney store. It was originally called the Harrisburg East Mall. 

The mall lost favor with shoppers in the late 1980's and early 1990's as newer shopping opportunities were built and the area gained a reputation for criminal incidents. A friend of mine was assaulted in the parking lot in 1988 or 1989 and there were numerous reports of armed robbery and assaults in the parking lots.

The current anchor tenants are Bass Pro Shop and Macy's. The third anchor, Boscov's, a regional department store chain, closed this fall as part of a chainwide bankruptcy plan.  

It will be interesting to see what happens here. The mall has been making somewhat of a comeback in recent years, with the building of a large theatre complex and additions to the store roster. 

The story from the Harrisburg Patriot News is pasted here:

http://www.pennlive.com/midstate/index.ssf/2008/11/harrisburg_mall_in_default_of.html