In an unusual proposal described as a win for Luzerne County, council can choose to receive a $400,000 state award to pave county-owned Crestwood Drive in Wright Township if it agrees to stop collecting an outstanding loan around the same dollar amount the county had provided to West Hazleton for a borough bridge project.

County Manager Romilda Crocamo told council the Pennsylvania Department of Transportation contacted her about the proposal.

The option was discussed at last week’s council work session, and council is expected to vote on it at its next meeting Sept. 9.

Crocamo said the state proposed the plan to forgive the remainder of the county loan to West Hazleton because $400,000 in federal funding has become available for the Crestwood Drive paving project through the Lackawanna Luzerne Transportation Study Transportation Improvement Program.

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PennDOT agreed to award the funds in exchange for the county’s forgiveness of the balance due on the West Hazleton loan, council’s proposed resolution said.

Council voted at the end of 2023 to provide a $425,000 loan to West Hazleton — using interest earned on county community development funds — so the borough could finish rehabilitating the Jaycee Drive Bridge to end detours through a residential neighborhood and concerns about delayed emergency response to 50 businesses. That project is completed.

Crocamo told council last week the borough has been repaying the loan and owes approximately $400,000.

She supports the state proposal, saying the county can repair Crestwood Drive now and not have to wait for monthly payments from the borough.

“I think that’s fantastic,” said council Chairman John Lombardo.

“It’s a win-win for the county and for the borough,” Crocamo said.

Councilman Harry Haas said fixing county roads is a priority and asked why Crestwood Drive was selected.

Crocamo said that road is “really in bad shape” and was identified as a priority by the county’s outside engineer.

Haas asked if the Crestwood Drive project would be “fast-tracked,” saying waiting years would defeat the purpose of accepting the state proposal.

Crocamo said the paving project is ready for prompt completion.

County council had initially earmarked $850,000 in federal American Rescue Plan Act funds toward rehabilitation of the Jaycee Drive Bridge over Black Creek in May 2023, which had closed due to deterioration.

However, borough officials approached council later in 2023 seeking an additional $675,000 because initial excavation revealed the south bridge abutment could not be saved as originally expected due to extensive corrosion of the reinforcing bars. The borough indicated it did not have additional funds to proceed with the project.

PennDOT subsequently agreed to provide an additional $250,000 in discretionary funding toward the increased bridge costs if the county earmarked the remaining $425,000.

The funds loaned to West Hazleton came from interest the county accrued on $6 million in community development funds that have been set aside in case the U.S. Department of Housing and Urban Development, or HUD, follows through with a $6 million penalty threatened over a decade ago over a lack of development at the former Hotel Sterling site in Wilkes-Barre.

Reach Jennifer Learn-Andes at 570-991-6388 or on Twitter @TLJenLearnAndes.