Prospective Wilkes-Barre General Hospital buyer agrees to pay Luzerne County $850,000 in lieu of taxes annually for four years

The nonprofit prospective buyer of Wilkes-Barre General Hospital has agreed to pay Luzerne County $850,000 in lieu of taxes annually from 2026 through 2029, according to Tuesday’s County Council agenda.

This payment in lieu of taxes, often called a PILOT, came up because the buyer — Tenor Health Foundation Inc. — needs council approval to borrow approximately $72 million in a package that includes tax-exempt bonds. The county is not pledging or obligating funds for the borrowing and won’t be liable for any payments, officials emphasized.

In considering the financing approval request, several County Council members expressed concerns about the loss of tax revenue if the purchase goes through because the hospital is currently under for-profit ownership.

County taxing bodies are projected to collectively lose more than $1.9 million in real estate tax revenue annually with the purchase, including approximately $328,000 currently received by the county, records show.

Both the PILOT and financing approval are on Tuesday’s voting agenda.

Tenor Health would not be obligated to continue making a PILOT payment after 2029 as long as it meets legal requirements for tax-exempt status, the proposal said.

Tuesday’s meeting starts at 6 p.m. in the county courthouse on River Street in Wilkes-Barre. Instructions for the remote attendance option will be posted under council’s online meetings section at luzernecounty.org.

Repository properties

Council is set to vote on the latest batch of proposed tax-delinquent repository property sales, which are periodically presented to council for approval.

Properties land in the repository if they do not sell in the initial upset tax auction or subsequent free-and-clear auction.

Sales are encouraged because the county has amassed approximately 1,000 repository properties that are in limbo, with no active owners to maintain and pay taxes on them. While some are sold each year, new ones are added after each sale.

Information on repository properties is posted under county tax-claim operator Elite Revenue Solutions’ site at luzernecountytaxclaim.com.

County-owned property

In another voting agenda matter, a minimum bid may be set for the purchase of unused, county-owned lots.

County Councilwoman LeeAnn McDermott, who chairs council’s Real Estate Committee, said a minimum bid is a “great idea,” although she is proposing 10% of the current assessed value as a minimum bid instead of the original suggested 25%.

McDermott said most of the properties are smaller parcels that would only be of interest to adjacent property owners.

She also noted council has the ultimate say on what price to accept, which means it could require more than 10% if warranted.

Sales should be encouraged to get the properties on the tax rolls, she said.

County ownership of some parcels dates back to the 1920s, officials have said.

2026 budget

The first series of 2026 budget amendments proposed by several council members is on Tuesday’s voting agenda. These adjustments would collectively result in $1.29 million in reductions if each one is approved by a council majority.

The proposed $171 million general fund operating budget recommends a 1.9% real estate tax increase, which equates to $12 more per year on a residence assessed at the median $95,500, the administration has said.

Council is free to make changes before the Dec. 15 budget adoption deadline.

A public hearing on the county’s proposed 2026 budget will be held at 5:50 p.m. before Tuesday’s voting meeting.

Election certification

The county’s five-citizen, volunteer Election Board will meet at 10 a.m. Monday in the county courthouse to vote on certifying the Nov. 4 general election results.

Instructions to attend remotely are posted in the council’s authorities, boards, and commissions online meeting section at luzernecounty.org.

Holiday schedule

County offices will be closed Thursday and Friday.

Thanksgiving and the day after Thanksgiving are holidays in the county’s collective bargaining contracts and non-union personnel policy.