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The Luzerne County Redevelopment Authority may wait two more months to receive payment for its sale of the historic train station property in downtown Wilkes-Barre, but no further payment extensions will be granted, the authority board decided Tuesday.
Developer George Albert, who heads the investment group that bought the property, indicated no further payment delays should be necessary, according to authority Executive Director Andrew Reilly.
The authority sold the 6.36-acre property at the corner of Market Street and Wilkes-Barre Boulevard to Market Square Properties Development LLC for $1.2 million in 2016.
Instead of providing the full amount at closing, Market Square paid $120,000 and provided an irrevocable letter of credit guaranteeing the remaining $1.08 million if it did not come up with the money within 18 months.
The authority had agreed in 2018 to extend the letter of credit until Dec. 28, 2019, adding 4% interest, which amounts to approximately $43,200, officials have said.
With the letter of credit expiring next week, Albert asked the board on Tuesday for one more extension of 60 days.
To receive this extension, the investment group must submit to the authority solicitor next week a new letter of credit for the additional 60 days, a check for the interest owed and a $10,000 extension fee, Reilly said.
If that does not happen, the authority voted Tuesday to call on the existing letter of credit to receive payment before it expires Dec. 28, Reilly said. That vote was necessary because the board won’t meet again until January, he said.
Board members have voiced a willingness to work with the investment group because forcing payment through the letter of credit could negatively impact Market Square and its development plans, including restoration of the deteriorating former New Jersey Central train station, for offices or other businesses.
According to Reilly, Albert indicated the project plans have not changed. Market Square is in the process of refinancing, hoping to sign a lease with Dunkin’ Donuts to locate at the site and working on resolving pending litigation involving an adjacent property owner.
While the station has not yet been restored, the complex has been markedly spruced up since Market Square took over, with renovation of a strip mall and a new road and lighting.
Because the train station is a historic structure with complex architectural features, its renovation will cost about $1 million, or $250 a square foot, Albert has said, noting he could build a new structure at that amount. The station is on the National Register of Historic Places.
In other business Tuesday, the authority agreed to apply for two Local Share Account grants funded by gambling revenue in 2020:
• Finch Manufacturing and Technology LLC in West Pittston is seeking $539,003 for ongoing plant modernization and efforts to increase employment and employee safety.
• Luzerne County is requesting $500,000 to construct an emergency radio communication tower at 283 Campbell’s Ledge Road in Duryea.