Luzerne County Authority Seeks Buyers for Rail Line, $10M Offer Made

UPDATE: The Luzerne County Redevelopment Authority has just voted to move forward with plans to seek purchase proposals for its rail line, a significant development that could reshape local transportation. This decision was made during a meeting held on Tuesday, October 31, 2023, and sets the stage for a potential sale amid ongoing legal disputes over a $3.3 million debt owed to the county.

Authority Chairman Scott Linde expressed optimism that the authority will issue a “fair and open” Request for Proposals (RFP) by Thanksgiving, aiming to attract serious buyers interested in the Luzerne & Susquehanna Line, which spans 60 miles through key areas including Pittston, Wilkes-Barre, and Hanover Township. The urgency of this step comes as the authority seeks to clarify the value and obligations associated with the rail line amid ongoing litigation.

The backdrop to this decision is a lawsuit filed by the county in July, which claims the authority has failed to repay the $3.3 million loan used for the rail line’s purchase. The county is pushing for a court order to appoint a neutral third party to manage the rail line, hoping to seize control and sell it to recover the debt. According to a letter dated May 15, the county aims to “take possession of the Luzerne County Rail Corp.” and use the proceeds for repayment.

In a strategic move, the authority has postponed its search for a new rail operator and extended its contract with R.J. Corman Railroad Group LLC through October 2026. R.J. Corman has been responsible for operating the rail line for commercial freight since 2020. However, the authority is now facing a competing offer from the Reading Blue Mountain & Northern Railroad, which has proposed $10 million to acquire the rail line along with a commitment to provide passenger-rail service for excursions from Wilkes-Barre to Jim Thorpe.

As the authority prepares for its next meeting in November, it may hire consultants to assist in valuing the rail line, which will be a vital step in attracting potential buyers. This valuation process is expected to clarify the financial landscape concerning the rail line and could lead to significant changes in both local transportation options and the authority’s financial obligations.

With a trial scheduled to commence in August, the situation remains fluid, and the community is watching closely. Residents are eager to see how this development will impact local transportation and the financial stability of the Luzerne County Redevelopment Authority.

Stay tuned for updates as this story unfolds, with key decisions looming that could impact the future of rail service in the region.