UPDATE: The Luzerne County Redevelopment Authority has just voted to seek purchase proposals for its Luzerne & Susquehanna Line rail line, a significant move that could reshape local transportation and financial obligations. The decision was made during a meeting on October 24, 2023, and comes amid ongoing legal disputes regarding the rail line’s financial management.
Authority Chairman Scott Linde announced plans to issue a “fair and open” Request for Proposals (RFP) by Thanksgiving 2023. This anticipated RFP will allow companies to submit bids for the 60-mile rail line that runs through Pittston, Wilkes-Barre, and Hanover Township.
The authority’s move is critical, as it seeks to resolve its ongoing litigation with Luzerne County over a $3.3 million debt. The county has sued the authority and its subsidiary, the Luzerne County Rail Corp., claiming the authority failed to repay loans issued for the rail line’s acquisition. The redevelopment authority maintains that no breach of the loan agreement occurred, asserting that it has until October 2026 to settle the debt.
To aid in the valuation of the rail line, the authority plans to consider hiring consultants during its next meeting in November. This valuation will serve as a foundation for the RFP process, which is poised to attract significant interest.
Complicating matters, the Reading Blue Mountain & Northern Railroad has proposed a $10 million offer to purchase the rail line, promising to introduce passenger services for scenic excursions from Wilkes-Barre to Jim Thorpe. However, the county has requested a court order to appoint a neutral third-party to oversee operations and prevent the authority from selling or leasing the rail line without proper oversight.
A trial related to this complex legal situation is scheduled to commence in August 2024, as the county council, which appoints the members of the redevelopment authority, has authorized litigation against the authority. The outcome of this trial could significantly impact the future of the Luzerne & Susquehanna Line and its operational management.
As developments unfold, local stakeholders are urged to stay informed about potential changes that may arise from the RFP process and ongoing legal disputes. The decisions made in the coming months will have lasting implications for transportation, community connectivity, and local financial recovery.
For real-time updates, stay tuned as this story continues to develop.
