Luzerne County Council set to vote on loan guarantee that would fund Nanticoke/West Nanticoke Bridge replacement

Under agreements up for possible adoption Tuesday, Luzerne County Council would guarantee a new $55 million infrastructure loan if the entire pot of money is used to address county-owned roads and bridges, including replacement of the Nanticoke/West Nanticoke Bridge over the Susquehanna River, the documents say.

An estimated $40 million is needed to replace the span linking Nanticoke and Plymouth Township, which was downgraded to a 15-ton weight limit in 2020 due to issues found in an inspection. The county has no funds set aside to cover this expense, and officials have said it would take at least a decade, possibly much longer, for the bridge to receive federal and state funding allocations based on the large number of infrastructure requests.

“Due to the current state of the bridge, county staff is concerned that the next inspection may result in lower weight limits and/or future closure,” the administration’s agenda submission said.

For background, the loan is possible because new state legislation customized solely for the county redirects $3 million annually for 25 years from the casino-gambling Local Share Account (LSA) to create an infrastructure fund.

The way it is set up, the county Redevelopment Authority must borrow to create the fund and then repay the debt using the annual $3 million LSA earmark.

However, the county is involved because financial institutions want assurance the county would repay the debt if the Mohegan Sun Pocono casino in Plains Township unexpectedly closes down the road.

The legislation leaves it up to the county redevelopment authority to recommend projects that should be funded, with final award approval by the Commonwealth Finance Authority — a state entity that already approves other LSA awards that are not part of this special program.

Originally, municipalities would have been invited to seek the infrastructure funding.

But some county council members have said they would be more amenable to a providing a loan guarantee if they were assured county-owned projects are funded, which prompted the revised agreements now before council.

Although the Commonwealth Finance Authority has the final say, officials have said the state authority would rely heavily on the county authority’s recommendations.

County council appoints the five citizens serving on the redevelopment authority board, with the seats currently filled by Nina DeCosmo, Scott Linde, John Pekarovsky, Stephen E. Phillips and Mark Rabo.

Two resolutions are on Tuesday’s council agenda.

The first is a memorandum of understanding between the county and redevelopment authority to ensure reconstruction of the Nanticoke/West Nanticoke Bridge and the county’s guarantee of the debt if necessary.

In this agreement, the authority agrees to accept and approve the county’s LSA funding application to reconstruct the bridge and submit that application to the Commonwealth Financing Authority for approval.

Council in turn agrees to proceed with enactment of an ordinance to back the borrowing and submit necessary documentation to the state Department of Community and Economic Development as required by law.

It states the bond proceeds will finance the design, acquisition, construction and equipping of the bridge reconstruction. Any funds remaining after the bridge completion will be applied to public infrastructure projects approved by the county and authority.

The second county resolution formally requests the $54.9 million LSA grant from the county redevelopment authority and Commonwealth Financing Authority to fund work on the bridge and other county-owned infrastructure.

“Luzerne County has the responsibility to maintain over 100 miles of roadways and 300 bridges that connect both communities and commerce throughout Luzerne County,” the agenda says.

State Sen. John Yudichak, I-Swoyersville, had remotely appeared before council in May to personally seek its support, saying proceeding without a county guarantee would likely double the cost of the financing and cut in half the amount of funding available for infrastructure projects.

He’s also concerned a council rejection would prompt state legislators to reconsider how the $3 million is allocated and “seriously puts in question whether the program will be received by Luzerne County.”

While Yudichak is viewing the Nanticoke/West Nanticoke Bridge replacement as a need for economic development, he said the main concern is keeping a safe river crossing in that area for the public.

Contacted last week, Yudichak said he is grateful for the due diligence completed by council, the redevelopment authority and administration, noting new county Manager Randy Robertson has been “engaged at an intense level.”

Yudichak described the package as a “historic partnership” to address county infrastructure maintenance that has been deferred for decades.

County officials have long complained their infrastructure was left out of LSA awards, he said.

“This uses those gaming funds as they should be for projects of regional value — projects that transcend just one municipality and benefit the county and region from a public safety and economic development standpoint,” Yudichak said.

He is confident the $3 million is solid because casino earmarks for county projects have been averaging $12 million annually. The remainder of the funds would continue to go to municipalities for a range of community purposes, such as the purchase of municipal equipment and vehicles, officials say.

Council’s Tuesday meeting starts at 6 p.m. in the county courthouse on River Street in Wilkes-Barre. Instructions to attend the meeting remotely are posted under council’s online meeting section at luzernecounty.org.

The redevelopment authority is scheduled to meet the following day and will vote on the agreements if they are accepted by council.