Luzerne County Councilman staying out of broker selection due to bidder relationship

Real estate agent Lori Spencer said she initially hesitated on submitting a proposal to sell a Luzerne County-owned property in West Pittston because county Councilman Kevin Lescavage is her boyfriend, making criticism inevitable.

But after reflection, Spencer said she decided she and her teammates at Classic Properties should not be precluded from consideration.

“This has nothing to do with Kevin or what he does on council. This has to do with my job and how I pay my bills. I’m not new to the real estate industry, and I have expertise to offer,” Spencer said.

Council sought proposals from brokers interested in selling the residence in West Pittston and possibly other real estate no longer needed by the county. A vote on hiring a broker is scheduled Tuesday night.

Lescavage said he is removing himself from any council discussion or vote related to choosing a broker due to his relationship with Spencer.

Spencer is not prohibited from seeking the work and has a right to be considered along with the three others that submitted proposals, he said.

The 10 other council members are free to form their own conclusion, Lescavage said, emphasizing he has not reached out to any of them to advocate for Spencer. He also added he won’t hold it against his council colleagues if they pick someone else.

“What’s most important is getting this property marketed correctly and selling it at the highest price possible,” Lescavage said of the residential West Pittston property the county acquired through a litigation settlement. “I’m a firm believer that the best person should be hired, that the county should get the best for its money.”

According to Tuesday’s voting agenda, posted at luzernecounty.org:

Christine Kutz, a broker and vice president of Kutz Real Estate Services, submitted a proposal to charge a 4% commission if a broker is involved for the buyer and 3% if there is no broker on behalf of the buyer.

The Spencer/Classic Properties proposal is for 4%.

The two remaining brokers submitted 6% commission rates. These proposals came from Virginia S. Rose, president and CEO of Lewith & Freeman Real Estate, and Rebecca and Robert Altmayer, owners of RPA Real Estate LLC.

The submissions from both Spencer/Classic Properties and Lewith & Freeman include extensive attachments detailing their real estate sales experience, track records and property marketing resources.

A Realtor since 2015, Spencer said she is part of agent Jesicca Skoloda’s team. Spencer said she submitted the proposal on behalf of the group because all team members would work to promote and seek buyers for the county-owned property.

Spencer said she was involved late last year in attracting an out-of-state buyer to purchase a Victorian property on Exeter Avenue in West Pittston. Like the property the county now must unload, this one had been impacted by record 2011 Susquehanna River flooding.

Council members originally discussed holding an auction to sell the property at 1200 Susquehanna Ave. in West Pittston but opted for a broker to ensure the real estate purchase opportunity is widely marketed and advertised to obtain the highest price.

The county acquired the house earlier this year as part of its settlement of 2018 litigation filed by Richard and Kimberly Hazzouri, arguing they were wrongly prevented from participating in a flood buyout program.

The settlement awarded $650,000 for the property — $585,000 from the county community development office, $50,000 from the county’s insurance carrier and $15,000 from West Pittston’s insurance carrier. Since the settlement was separate from a flood buyout that would require demolition, the county is free to sell the property to recoup some of the money lost paying the settlement, officials have said.

County officials also want to sell the property so it does not have to be maintained by the county.

The $650,000 purchase price of the Hazzouri property was based on an appraisal of its pre-flood value, county officials have said.

Council is seeking a one-year broker contract — with two optional one-year renewals possible if council is satisfied with the firm or agent’s performance, it said. Council has not yet identified other county-owned properties it may want to sell through a broker.

Tuesday’s council 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 link at luzernecounty.org.

Spencer holds a volunteer seat on the authority board that oversees the Mohegan Sun Arena in Wilkes-Barre Township. Lescavage abstained from voting on her appointment in February, meeting minutes show.