Luzerne County Authority Recommends $10 Million Rail Line Sale
The Luzerne County Redevelopment Authority voted to sell its rail line to Reading and Northern Railroad for $10 million following a veto of a previous bid.
The Redevelopment Authority of Luzerne County voted Tuesday to recommend the sale of its rail line to Reading Blue Mountain and Northern Railroad for $10 million. The package consists of $7 million in cash and $3 million dedicated to track rehabilitation over three years, including a commitment to establish passenger-train excursions from Wilkes-Barre.
This decision follows a September 22 action by the Luzerne County Council, which voted 11-0 to veto a recommended $8.2 million sale to R.J. Corman Railroad Group. Under a July litigation settlement regarding $3.28 million in owed funds, the rail assets must be sold by October 9 to prevent the county from taking possession. The sale would allow the authority to repay its debt to the county.
While the authority approved the new bid, the Luzerne County Council must still vote Wednesday to accept or veto the recommendation. Board Chairman Scott Lindeman voted against the sale, expressing concern that R.J. Corman may own specific tracks in the Grimes Industrial Park, a situation he believes could trigger future litigation.
