News

Landmark hotel

November 15

County to fund razing of Sterling

Commissioners plan to allocate $1 million in community development funding.

By Jennifer Learn-Andes jandes@timesleader.com
Luzerne County Reporter
Jennifer Learn-Andes on Facebook   |   @TLJenLearnAndes on Twitter

After eight months of back and forth between Luzerne County, Wilkes-Barre and its one-time champion, the Hotel Sterling’s fate has been decided.

County Commissioners plan to vote Thursday to allocate $1 million in community development funding to demolish the historic downtown landmark, saying it’s their only option.

Commissioner Maryanne Petrilla said during Monday’s work session that she does not believe commissioners have a choice because the structure has been condemned by Wilkes-Barre City.

Road closures around the building at North River and Market streets have caused traffic jams, and snow would likely cause additional damage, she said.

The building’s nonprofit owner, CityVest, first disclosed the possibility of demolition in March, saying it was unable to find a private investor to develop and renovate the deteriorating structure into a residential and retail or office complex.

CityVest representatives asked the county to take control of the project in April, saying it was out of funds and couldn’t come up with the estimated $26.8 million to $35.6 million to fully restore the 113-year-old building.

The county has a stake in the more than 3-acre parcel because it loaned CityVest $6 million, which was largely spent to demolish an attached 14-story high-rise, clean up environmental hazards and acquire two adjoining land parcels.

The county will take ownership of the property after demolition in an attempt to eventually reclaim some or all of its money down the road, said county Community Development Director Andrew Reilly.

The hotel will be demolished in January or February, and the incoming home rule county government administration will decide how to market the parcel, he said. County officials have described the site as a premier location facing the Market Street Bridge and revamped River Common park along the Susquehanna River.

County officials had been reluctant to get involved because Wilkes-Barre had not committed to sharing in demolition costs. Wilkes-Barre city officials have since agreed to provide about $260,000 earmarked from gaming funds for the project, pending state approval. That funding was allocated for restoration of the building and would have to be reprogrammed for demolition, officials said.

County Chief Engineer Joe Gibbons will oversee the demolition bidding. County officials will have to revisit the matter if the bids exceed $1.26 million, Reilly said.

The $1 million would come from a business development loan fund. About $10 million would remain in the fund after the demolition expense, Reilly said.

County Commissioner Stephen A. Urban stressed that these funds couldn’t be used to cover staffing or other expenses in the county’s strained general fund operating budget.

Some documentation of the building may be required because it is a historic structure, Reilly said. The county recently sought public comment on possible demolition and received eight written responses, a mix of positions that the building should be restored or torn down, he said.

A group of citizens protesting the demolition submitted a petition, he said.

Sally Healey, one of the faithful “Save Our Sterling” picketers, said she’s been to many cities with preserved historic buildings and believes officials will regret the loss of the Sterling. She said CityVest representatives and local officials made promising statements about the building’s future for years, leaving many shocked when the plans fizzled.

“We’re saddened the way the whole thing went down,” Healey said. “We’re just all disappointed at the commissioners’ decision. Just hearing it makes you feel blue.”

Tweet	Follow @TLnews

Send Question or Remark to the Publisher