Luzerne County approves month-to-month lease for building it pondered vacating

Instead of consolidating offices to free up more than $300,000 in funds for Luzerne County human services annually, the county is moving toward the continued renting of space in a privately owned building in downtown Wilkes-Barre.

The administration had publicly informed council in October it was on track to consolidate staff at the county-owned human services building on North Pennsylvania Avenue in Wilkes-Barre, but since then it has reversed course and proposed council enter into a new lease of the “McCarthy Building” at Union and State streets in Wilkes-Barre at $354,365 annually for five years — a total $1.77 million.

County Controller Walter Griffith told council the proposal was effectively an eight-year lease because it includes three optional one-year renewals, as stated in the agenda submission. While most of the lease cost would be covered by state and federal funding, Griffith said it’s still taxpayer money and noted the county typically pays a 20% match toward Children and Youth, which has been using the leased space along with the Area Agency on Aging.

Griffith urged council and the administration to reconsider the consolidation plan that had been proposed by prior manager Randy Robertson or consider leasing a building that costs less.

For now, council voted last week to continue leasing the building owned by McCarthy Realty on a month-to-month basis until the administration has time to negotiate a final proposed lease agreement for council consideration. The month-to-month rental will be at the current payment of $26,191.60 per month to lease 21,884 square feet in the property, or $314,299.20 annually, county documents show.

The new proposed lease, as described in the agenda, would be $40,066 more per year.

County Chief Solicitor Harry W. Skene told council his office received the proposed new lease too late to review and said a fresh lease should be negotiated and drafted because prior ones were based on addendums stemming from an original lease dating back years. The county has been leasing space at the property since 1999.

Skene also said he was informed there is a punch list of items that must be repaired in the building.

He stressed it’s up to the human services department and council to decide if a lease is a good or bad idea because his office focuses on the reviewing the document itself to ensure it is properly executed.

Councilman Carl Bienias III asked Skene about the length of the lease that had been proposed for five years.

Skene said five-year leases are not standard in the county.

“If there was only one property left in the whole county and we had to rent it because we needed to put people there, we might be at a disadvantage and have to do that, but a five-year lease is a long term for a lease,” Skene said.

Skene suggested council consider a one-year lease with three optional one-year renewals.

The human services’ request for a new lease said the county would have to permanently convert “the majority of human services staff” to a remote/hybrid work schedule to proceed with consolidation.

However, some workers have privately pointed out space has been freed up in the county-owned Pennsylvania Avenue property because a 44-employee unit was recently eliminated in the Mental Health/Developmental Services Department now that outside entities are handling case management for those with intellectual disabilities.

During a work session discussion last week, Councilman Kevin Lescavage said he hopes the lease can be renegotiated so there is no cost increase.

Bienias said he does not love the work-from-home concept but also does not want to unnecessarily spend money on leased space.

Councilman Stephen J. Urban said he expects most Children and Youth caseworkers are on the road much of their shift checking on families.

Skene said caseworkers also must attend court hearings. Supervisors and managers must be physically in the office, he added.

Councilman Tim McGinley said he supports a continued lease. He said he spoke to county Human Services Division Head Lynn Hill, and she indicated she had suggested many times to Robertson that he hold off on the consolidation plan.

Council Vice Chairman John Lombardo said he received a similar account from Hill saying that Robertson had a “different vision” and that “they were sort of unhappy with it.”

Hill could not be reached for comment on the matter.

Lombardo said he disagrees with remote work.

Councilman Matthew Mitchell said he does not believe it is a good time for Children and Youth to make such a change because the agency remains on a provisional license from the state.

Skene said the agency has been working with the state and has consultants, and all plans with hybrid working had been approved by the state.

Brian Thornton agreed with Mitchell and said he wants to make it clear he is adamantly opposed to Children and Youth employees working from home, adding that he realizes council cannot direct department heads.

Lombardo and Lescavage also said they have concerns about any paperwork leaving the building.

Before changing plans, county human services department representatives had discussed reductions in rent and, in the case of Children and Youth, security costs that could be reapplied to other services.