News

December 17, 2009

One property still in way of rehab project

By Steve Mocarsky smocarsky@timesleader.com
Staff Writer
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As of Tuesday, only one property owner stands in the way of a redevelopment project aimed at revitalizing a blighted neighborhood straddling Kingston and Edwardsville.

The Luzerne County Redevelopment Authority voted to buy three Main Street properties in Edwardsville and one in Kingston so they can be demolished to make way for the King Edward neighborhood revitalization.

The properties include:

• 463-465 Main St., Kingston, owned by Daniel Schramm, for $112,500;

• 496 Main St., Edwardsville, owned by George R. Walko, for $123,000;

• 486-488 Main St., Edwardsville, owned by Irene N. Scholl, for $60,000; and

• 490 Main St., Edwardsville, owned by Michael J. Loy, for $58,500.

Board member Joseph Terrana asked how the sales figures were determined.

Marge Thomas, authority co-interim executive director, said the county Office of Community Development had the properties appraised. Some appraisals were rejected by property owners who had their own higher appraisals, and county officials negotiated with the landowners to find a compromise.

Authority solicitor Garry Taroli said Paul Klug, who owns 457-459 N. Main St., Edwardsville, “has not agreed, and we’re almost in the litigation mode with him.”

Taroli said Klug retained counsel to represent him in securing a higher sales price than ascertained through an appraisal conducted by the county.

Andy Reilly, director of the Office of Community Development, said there was a “substantial difference” between Klug’s appraisal and the appraisal his office had completed, although he was out of the office when reached by a reporter and did not have the figures available.

Attempts to reach Klug for comment were unsuccessful.

Reilly said the federally funded project fell behind schedule when arrangements to relocate property owners according to federal guidelines took longer than expected.

He hopes negotiations with Klug are fruitful so the project can continue at a brisk pace.

If the two sides can’t reach an agreement, the county will likely pursue eminent domain proceedings, in which a county judge would have to decide on a fair sales price, Reilly said.

A final development plan for the neighborhood not yet been decided, Reilly said.

“Right now, the architect and engineer are looking at ideas. We’re considering businesses with municipal parking areas as well,” Reilly said.

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