Consultant immersed in documenting Luzerne County rail property, authority says

A consultant is immersed in documenting Luzerne County rail property so a solicitation can be prepared seeking offers to purchase the line, the county Redevelopment Authority Board said during Tuesday’s meeting.

The board approved a contract last month with Trenton, New Jersey-based Strauss & Associates/Planners to identify rail line assets and assist in preparing a public request for proposals.

Although initially resistant to non-public ownership of its rail line, the authority board members decided offers should be considered, but only in a public process open to all interested entities.

Reading & Northern Railroad Chairman and CEO Andy M. Muller Jr. made an unsolicited $10 million offer to purchase the county line in October, stating he would increase freight service and introduce passenger train excursions from Wilkes-Barre to Pittston.

Authority Board Chairman Scott Linde said Tuesday that maps and deeds were furnished to Andy Strauss of Strauss & Associates approximately 10 days ago.

Authority staff and consultant Jim Brozena met with Strauss earlier this month, and Strauss was set to brief the authority board on his progress during a closed-door executive session on Tuesday, scheduled to discuss real estate and personnel, representatives said.

Linde reiterated that all rail assets must be documented before the authority can seek proposals.

County GIS/Mapping workers have helped to compile the maps, the authority said.

Linde has said he is hopeful Strauss will complete his due diligence and prepare a final report by February, and another 30 to 60 days would be needed after that to prepare and release the request for proposals.

During public comment Tuesday, Wilkes-Barre resident Bob Kadluboski questioned past authority handling of a property it wanted to sell — the 70-acre Ashley Rail Yards parcel, which has environmental issues.

Kadluboski said Ashley business owner John Halliday wants to buy the property. The owner of John P. Halliday Trucking Inc., Halliday has said he is immediately prepared to purchase the property and assume responsibility for the environmental remediation so the site could house his business and two others — and possibly 14 residences — that will all be displaced due to an Interstate 81 widening and reconfiguration in the borough.

Authority representatives told Kadluboski they are willing to meet with the prospective buyer, but they are prohibited from selling any rail property at this time due to pending county litigation.

Authorized by the County Council, the suit filed against the authority in July is now in the discovery phase.

Letters show the county wants the authority to turn over the railroad so it can be sold to recoup $3.28 million loaned to the authority for the rail line. While the delinquent loan was cited as a reason for the county litigation, it appears to be part of a broader effort to privatize the track, with the hope of adding passenger rail excursions while expanding commercial use.