Luzerne County Council takes final step to secure infrastructure funding

Luzerne County Council has completed its last step necessary to receive up to $55 million for county-owned infrastructure projects.

Under new legislation, the county Redevelopment Authority will borrow to create an infrastructure fund repaid with $3 million provided annually for 25 years from the casino-gambling Local Share Account (LSA).

Council already had agreed to guarantee the loan, in the unlikely event casino revenue ceases, because the borrowed funds will be used for county-owned projects.

In the final stage of the process, council voted last week to adopt an ordinance formally accepting the guarantee.

Eight of 11 council members approved the ordinance, with no votes from Kevin Lescavage, Brian Thornton and Stephen J. Urban.

Those voting in support: Carl Bienias III, Vice Chairman John Lombardo, LeeAnn McDermott, Tim McGinley, Matthew Mitchell, Chris Perry, Chairwoman Kendra Radle and Gregory Wolovich Jr.

The redevelopment authority is scheduled to vote Tuesday on awarding the financing to Fidelity Bank and adopting a resolution authorizing the borrowing to proceed.

An authority board majority had previously selected Fidelity Bank from five financial entities that responded to a request for proposals. Fidelity Bank partnered with FNCB on the planned transaction.

However, the authority decided last month to again seek proposals from financial entities because the county guarantee was not part of the original request.

Fidelity Bank was the lone entity to submit a complete proposal the second time around, although it partnered with additional banks in this submission, the authority said.

The exact amount that will be borrowed for county projects is still unclear.

While a $55 million maximum was stated, officials have estimated the total likely would be closer to $51 million.

A lower figure around $47 million was presented in the latest Fidelity proposal, but authority representatives say that is based on a presumption a significant portion of the funding would be needed in the first year. Actual spending of most funds may be delayed due to the need to complete design and permitting and bid out projects, which would increase the amount of funds available, officials said.

This drawdown schedule will be dictated by the project list and must be firmed up as the authority closes on the borrowing, officials said.

Borrowing must be completed for the authority to tart receiving the annual $3 million payment, according to the state legislation.

As it stands, replacement of the county-owned Nanticoke/West Nanticoke Bridge over the Susquehanna River, currently estimated at $51 million, is stated as the main project to be funded, although county officials will have flexibility if they deem other projects a higher priority, officials have said.

In priority order, deteriorated sections of the following roadways also would be addressed if funding is available under the plan: Main Road in Hunlock and Ross townships, $1 million; Lower Demunds Road and Upper Demunds Road in Dallas and Franklin townships, $650,000; Ransom Road in Dallas and Franklin townships, $500,000; Church Road in Wright Township, $500,000; Oak Hill Road in Wright Township, $500,000; Crestwood Drive in Wright Township, $250,000; Old Airport Road in Butler Township, $250,000; and Hanover Street in Hanover Township, $250,000.

If county council opts to change this plan, it must submit a revised project list to the redevelopment authority, said authority Executive Director Andrew Reilly. The authority would then have to seek final award approval from the Commonwealth Finance Authority — a state entity that already approves other LSA awards that are not part of this special program, he said.

Council Chairwoman Kendra Radle said there are no plans for council to take additional action on the project list, but it may be placed on the agenda if any council members seek discussion.

During a public hearing about the council ordinance last week, three citizens questioned the rising cost estimate for the Nanticoke/West Nanticoke Bridge replacement and argued the county should use the funding to tackle a greater number of smaller projects.

The Nanticoke/West Nanticoke span was downgraded to a 15-ton weight limit in 2020 due to issues found in an inspection. The county has no funds set aside to cover this expense, and officials have said it would take at least a decade, possibly much longer, for the bridge to receive federal and state funding allocations based on the large number of infrastructure requests. The next inspection may result in lower weight limits and/or a future closure, the county administration has said.