Train operator interested in bringing passenger rail to Wilkes-Barre has purchased city lot

Reading Blue Mountain & Northern Railroad Co. has purchased a parcel strategically located to accommodate a boarding platform if passenger rail comes to downtown Wilkes-Barre, according to a newly recorded deed.

The vacant 0.68-acre lot is located along the Luzerne County Redevelopment Authority’s rail line and across from the historic former train station that houses the county tourism office.

To be even more specific, the lot purchased by Reading Blue Mountain & Northern is between the Market Street Business Center commercial strip center and a Starbucks currently under construction in the complex, which is framed by Wilkes-Barre Boulevard and Northampton and Market streets.

Reading & Northern, which operates passenger rail excursions to Jim Thorpe and other locations in the region, said in a June media release it was interested in purchasing the county redevelopment authority’s rail line for both passenger rail and freight.

That release announcing Jim Raffa’s promotion to executive vice president of marketing and sales said Raffa “is taking a lead role in R&N’s effort to acquire the Luzerne County railroads owned by the Redevelopment Authority.”

It referenced media reports about the county’s interest in taking over the railroad from the authority and privatizing it to get the county out of the railroad business.

“Raffa will take the lead to ensure that R&N restores quality service to the freight customers if R&N is successful in buying the property,” the release said.

R&N CEO Andy Muller Jr. also has “publicly committed to bringing passenger excursion service to Wilkes-Barre,” it said, noting the company already serves the region with more than 340,000 riders on its trains in 2024.

R&N did not immediately respond to inquiries about its plans for the newly acquired Wilkes-Barre parcel.

The company purchased the lot for $365,000 on July 22 from Market Square Properties Development LLC, the deed shows.

This deed was recorded the same day as the one finalizing the county’s purchase of the 154-year-old former train station from Market Square for $615,000.

County council had voted in May to acquire the former station because it is listed for sale and has housed the county tourism office, Visit Luzerne County, since February 2022. The purchase was funded with a portion of accrued interest on county community development office funds, the administration has said.

Rail status

The county wants the redevelopment authority to turn over its railroad so it can be sold to recoup $3.28 million the authority still owes the county for the original acquisition of the line, according to letters.

While a delinquent loan was stated as a reason, it appears to be part of a broader push to put the track into private ownership, with the hope that it could retain commercial use but also add passenger rail service.

The redevelopment authority is a separate entity governed by a five-citizen, council-appointed board.

However, the county has an interest in the rail line because prior commissioners loaned the authority funds in 2001 so the authority would not default on its mortgage and risk losing infrastructure that services businesses.

A council majority had voted in May to proceed with legal action against the redevelopment authority, and the resulting civil suit was filed last week in the county Court of Common Pleas.

Regarding Reading & Northern’s interest, county Manager Romilda Crocamo has said she appreciates the possibility but emphasized that any potential sale of the rail assets must adhere to the statutory public bid process and will ultimately require approval from county council.

Headquartered in Port Clinton, Reading & Northern is a privately held railroad company serving more than 80 customers in nine eastern Pennsylvania counties — Berks, Bradford, Carbon, Columbia, Lackawanna, Luzerne, Northumberland, Schuylkill and Wyoming, the release said.

Reading & Northern expanded its operations over the last 40 years and now handles nearly 40,000 carloads of freight, while its passenger department handles more than 300,000 riders annually, it said.

Station complex

The county redevelopment authority had previously owned the former train station complex in downtown Wilkes-Barre.

Prior county commissioners had authorized federal community development funds for the redevelopment authority to purchase the property from businessman Thom Greco for $5.8 million in 2006.

With no funds to redevelop the site, the authority sold the property to Market Square for $1.2 million in 2016.

The property has been subdivided, and the station and lot that sold last week were the last two parcels available for purchase.

According to property records:

The Market Street Business Center is owned by ANS Real Estate LLC, and the lot where a Starbucks is under construction is owned by SB East Hampton Development LLC. Citymark Federal Credit Union owns the lot between the station and McDonald’s, which is slated to house a new credit union. The final lot at the corner of Market Street and Wilkes-Barre Boulevard, said to be the future site of a Dunkin Donuts, is owned by “Raymond Slack Trustee of Raymond Slack 401K Plan.”