Luzerne County Government

March 16, 2010

County to save $74,000 on leases

Space for two district judges to be leased at lower cost over next two years.

By Jennifer Learn-Andes jandes@timesleader.com
Luzerne County Reporter
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Luzerne County will lease the same building for the Hazleton district judge office, but it will cost taxpayers $31,730 less over the next two years.

The savings stems from the county’s decision to publicly seek proposals from others interested in renting the county space when the old lease expired.

Taxpayers have criticized the Hazleton lease because it cost $6,545 per month, or $78,540 annually – significantly more than most other magisterial office rents.

The existing building owner – Grande Inc. – agreed to charge the county $62,675 per year in 2010 and 2011, county officials said during Monday’s commissioner work session.

County Engineer Joe Gibbons said Grande submitted the lowest price.

District Judge Joe Zola had moved into the former restaurant on East Broad Street in 2006 after county officials shut down the old Hazleton annex on suspicion of mold, though the annex was later deemed safe.

County minority Commissioner Stephen A. Urban had refused to support the lease, calling it a “sweetheart deal.”

The 3,500-square-foot building is owned by Zola’s friend, Leonard Rossi, who bought the building for $150,000 in October 2005, records show. Zola had said he would relocate if commissioners found a better deal, as long as the space was suitable.

Commissioners plan to vote on the new lease at Wednesday’s meeting. The two-year agreement will expire March 31, 2011. The county will also have the option for two renewals, with increases capped at 3 percent.

Urban noted the county would have saved more than $63,500 since 2005 if the lease had been at the lower price in the first place.

A money-saving lease for a Wilkes-Barre district judge is also on Wednesday’s agenda.

Commissioners sought proposals for the Wilkes-Barre magisterial office that had been filled by District Judge William Amesbury, who is now a county judge, because that space cost about $80,000 annually.

Commissioners had approved that 10-year lease with Freeman Realty Inc. in 2008, renting 4,350 square feet of storage space at 100 Hazle Ave.

The county paid $16 per square foot in the first year and $16.50 in the second year, with the rate increasing 3 percent annually.

Several other property owners responded to the county’s recent request for space, and Gibbons told commissioners that Freeman agreed to match the lowest price.

The county will now lease 3,000 square feet at $37,500 annually, which amounts to about $12.50 per square foot, records show.

The lease, which expires April 1, 2011, includes two optional renewals with increases capped at 2 percent or the national consumer price index, whichever is less.

Magisterial office expenses are an issue because the county spends about $4 million per year on 17 district judge offices, including staff, while only about $1.1 million is reimbursed, Urban said.

State legislators have refused to comply with a 1987 state Supreme Court mandate to fund court salaries, including magisterial office staff. To date, the only magisterial salaries picked up by the state are the district judge salaries.

Jennifer Learn-Andes, a Times Leader staff writer, may be reached at 831-7333.

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