A new gambling-funded infrastructure loan to fund Luzerne County-owned projects is now completed. Unless county council changes plans, the top project to be funded is replacement of the Nanticoke/West Nanticoke Bridge over the Susquehanna River.
                                 File photo

A new gambling-funded infrastructure loan to fund Luzerne County-owned projects is now completed. Unless county council changes plans, the top project to be funded is replacement of the Nanticoke/West Nanticoke Bridge over the Susquehanna River.

File photo

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A new gambling-funded infrastructure loan to fund Luzerne County-owned projects is now completed, officials said.

Under new state legislation, the county redevelopment authority must borrow to create the infrastructure fund and then repay the loan with $3 million provided annually for 25 years from the casino-gambling Local Share Account (LSA).

A county council majority had voted to provide a county loan guarantee, in the unlikely event casino revenue ceases, because the redevelopment authority agreed to limit use of the borrowed funds to county-owned infrastructure.

The redevelopment authority formally closed on the loan Monday.

With that step executed, the Commonwealth Financing Authority voted Tuesday to start releasing the annual $3 million in funds. The financing authority is a state entity that already approves other LSA awards that are not part of this special program.

State Sen. John Yudichak, I-Swoyersville, had pushed to create the fund, saying the county and its more regional projects had been shut out of past LSA awards that went primarily to municipalities.

Yudichak said “all hurdles have been cleared,” allowing the funding to benefit county taxpayers.

“The big news is that money is locked down. Now that the contract is executed, the money will come to the county,” Yudichak said. “For the next 25 years, that $3 million is going to be delivered for county projects.”

Yudichak said the consortium of banks involved in the transaction has done “all it can” to structure the loan in a way that the county is most likely to receive the up to $55 million originally projected.

Yudichak said Tuesday was potentially his last legislative session day before he leaves public office.

“To go out with that win is tremendous. I am overwhelmingly proud of being able to get that done,” Yudichak said.

He reiterated that county council must decide how the money will be spent.

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.

Several officials from Nanticoke, Newport Township and Plymouth Township have attended recent county meetings urging support for a new Nanticoke/West Nanticoke Bridge.

In a release issued Tuesday evening, Yudichak thanked the county’s entire state delegation for assistance in helping to “deliver this critical program to the residents of Luzerne County.”

Reach Jennifer Learn-Andes at 570-991-6388 or on Twitter @TLJenLearnAndes.