Delay reported in plan to solicit purchase offers for Luzerne County rail line

Unanticipated hurdles documenting Luzerne County rail line holdings have delayed plans to solicit purchase offers for the line, with no firm date set, county Redevelopment Authority officials said Tuesday.

Authority representatives have said nobody would bid on its line if it has no clear title on what it owns.

The authority board approved a $20,000 contract in December with Trenton, N.J.-based Strauss & Associates/Planners to document the rail assets, and increased it to $40,000 in February due to the scope of work.

Company consultant Andy Strauss told the authority Tuesday he is “making slow but steady progress,” logging the property titles and boundary lines dating back decades through previous owners, including some acquisitions involving bankruptcy and tax claims.

Because this level of documentation had not been completed before, Strauss said he has been “starting from scratch” using technical files, railroad surveys, and maps.

“There are multiple anomalies that I’ve had to iron out,” Strauss said.

He estimated he was 70% complete with his work on the approximately 50-mile line, with documentation of holdings north of Pittston remaining. However, a final report cannot be completed on what the authority owns until he then further traces deeds to subtract any strips or pieces that have been sold, he said.

Strauss indicated it is “very hard” to estimate the amount of time he will need to complete the project.

Board Chairman Scott Linde said the contract cap with Strauss will have to be increased, but the board plans to wait until its May meeting to vote on another adjustment.

Authority members and Authority Solicitor Peter P. O’Donnell said the authority absolutely cannot proceed with seeking offers until the title work is completed.

The authority board members had reluctantly decided that purchase offers should be considered, but only through a public process open to all interested entities.

Reading & Northern Railroad Chairman and CEO Andy M. Muller Jr. made an unsolicited $10 million offer to purchase the county line in October, stating he would increase freight service and introduce passenger train excursions from Wilkes-Barre to Pittston.

Authority members met in closed-door executive session on Tuesday to discuss legal matters related to the county’s litigation against the authority.

This litigation, which is in the discovery stage, seeks a declaration that the $3.28 million the county loaned to the authority is immediately due. Although the litigation centers on the delinquent loan, it appears part of a broader county effort to privatize the track, with the hope of adding passenger rail excursions while expanding commercial use.

In response, the authority has argued that there is no breach of contract to litigate, as it has until October 2026 to repay the county.

Filed in the Luzerne County Court of Common Pleas, the pending litigation is scheduled for trial in August, with County Judge Lesa S. Gelb presiding.

Earlier this month, the county filed a new legal motion seeking a court-appointed third-party receiver to manage the rail line, arguing outside oversight is needed to protect the asset until the pending litigation is resolved.

O’Donnell said Tuesday a hearing is scheduled before Gelb on May 12 to address the receiver’s request and also the authority’s subsequent motion asking the judge to order the county to furnish information the authority sought through discovery that the county has refused to supply.

The authority has also filed paperwork presenting arguments against the appointment of a receiver, O’Donnell said.