New Luzerne County infrastructure fund back on track

A new gambling-funded infrastructure loan for Luzerne County-owned projects is back in motion.

During a special meeting Thursday, a county Redevelopment Authority majority voted to approve financing of the new fund to Fidelity Bank, which has teamed up with Peoples Security Bank & Trust and Wayne Bank as participating lenders.

Under new legislation, the authority will borrow to create the fund of up to $55 million and repay the loan with $3 million provided annually for 25 years from the casino-gambling Local Share Account (LSA).

County council agreed to guarantee the loan, in the unlikely event casino revenue ceases, because the authority is limiting use of the borrowed funds to infrastructure owned by county government.

The three authority board members voting for the financing Thursday — Nina DeCosmo, John Pekarovsky and Stephen E. Phillips — had already voted in September to award the financing to Fidelity Bank in partnership with the two other institutions.

However, a second vote was scheduled after authority members Scott Linde and Mark Rabo called for more public discussion about the package. Last month’s planned closing on the loan had been halted as a result.

Under the new schedule, the closing has been tentatively scheduled for Nov. 14. The following day, the Commonwealth Finance Authority — a state entity that already approves other LSA awards that are not part of this special program — is expected to approve the release of funds during its scheduled meeting.

Linde and Rabo abstained from Thursday’s vote on the financing, maintaining the terms and conditions of the loan did not mirror those in the request for proposals seeking financial institutions.

During public comment Thursday, state Sen. John Yudichak, I-Swoyersville, listed a series of public discussions and votes that have been held regarding the infrastructure plan and reiterated it was created because the county and its more regional projects had been shut out of past LSA awards that went primarily to municipalities.

Yudichak said a majority of both county council and the authority have voted to proceed and asserted “delay tactics” amid rising interest rates over 17 months could cause the fund to lose $9 million that could have been used for county infrastructure that will “save lives” and help with economic development.

As it stands, replacement of the county-owned Nanticoke/West Nanticoke Bridge over the Susquehanna River 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.

After the loan closing and Commonwealth Finance Authority approval, county council can determine the best use for the money, Yudichak said Thursday.

Several officials from Nanticoke, Newport Township and Plymouth Township attended both a recent county council meeting and Thursday’s redevelopment authority meeting to urge support for a new Nanticoke/West Nanticoke Bridge.