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If restoration work doesn’t begin soon, the historic downtown Wilkes-Barre train station may become too deteriorated to save, the head of the investment group that owns the property said Monday.
“If we don’t get this thing done in the next six months, perhaps we will have to raze that building,” said George Albert, of Market Square Properties Development LLC. “We’re at risk of losing the building, and that’s not something I want to happen.”
Albert said his investment group can’t get a clear property title until the county Court of Common Pleas issues a ruling on pending litigation. That title is needed to refinance and fund the train station renovation and close on a deal to bring Dunkin’ Donuts to an adjacent parcel at the complex on Wilkes-Barre Boulevard, he said.
He also faulted outgoing Mayor Tony George for failing to shift a $1 million state grant to the project.
A lengthy history
Built in 1868 for the Central Railroad of New Jersey, the former passenger depot is among fewer than 10 ex-railroad stations to survive in Luzerne County, which once was served by a dense network of lines and stations. Passenger service to the station on what is now Wilkes-Barre Boulevard ended in the early 1960s.
Following its abandonment as a railroad facility, the ex-station later took on a second life as a bar and entertainment complex but eventually fell into disuse and disrepair.
Albert purchased the property in June 2016 for $1.2 million from the Luzerne County Redevelopment Authority, which had purchased the property in 2006 from businessman Thom Greco for $5.8 million. At the time, Greco told the Times Leader he had purchased the station complex from Marvin Roth.
No-competition covenant
Greco filed the litigation to block construction of a Burger King at the site, saying he embraces development but was forced to protect the McDonald’s housed at a lot he owns with his company, TGRG LLP, within the complex.
Greco has said a no-competition covenant tied to the complex forbids any restaurant that derives 25 percent or more of its gross annual receipts from the sale of hamburgers, ground beef products and fries. Market Square argues the covenant was implemented without authority and must be declared unenforceable.
Albert said Monday he no longer needs a favorable outcome because the proposed Dunkin’ Donuts has replaced the Burger King and does not sell burgers or fries, but the litigation must be closed out to clear the title required to secure financing. He said he is awaiting a ruling by county Judge Tina Polachek Gartley.
“It’s really got our hands tied,” Albert said of the litigation. “Hopefully we’ll get a decision handed down soon.”
State grant at issue?
Albert also blamed outgoing Wilkes-Barre Mayor Tony George for not agreeing to reprogram a $1 million state grant for the city-owned former First National Bank property on Public Square so the money can be used for the train station renovation.
While he is still interested in pursuing a project at the bank building, Albert said that structure is not at risk like the train station because the bank had been stabilized by the city. He also said he has encountered challenges finding a reuse for the bank building despite “many efforts” and believes further investment in that structure is “premature” until a clear “end use” is identified.
Albert said there is “zero reason” to refuse to reprogram the funds because the train station renovation is shovel-ready with permits secured. The county Convention and Tourism Bureau has long been interested in relocating to the station from rented space on Public Square, he said, adding that he also plans to locate his business on the second floor.
George had offered a commitment to reprogramming but later “refused to cooperate,” Albert said.
“I’m optimistic the new city administration coming in will have a better outlook on development in Wilkes-Barre than this past administration did,” Albert said.
Mayor George said Monday he has been unwilling to give up the $1 million for the city-owned bank property in order to keep it marketable and attractive to a buyer. The city received more than $1.3 in state aid to stabilize the more than 100-year-old building and it still needs heating and electrical work, George said.
“If we get rid of that million dollars, nobody’s going to even consider it,” George said.
Albert offered to buy the bank building in January 2017 for $700,000, but the deal fell through, George said. Others have been interested, but it hasn’t sold, George said. It remains the last vacant building on Public Square, he added.
“It’s not up to me anymore,” said George of transferring the funds. He leaves office on Jan. 6 to make way for Mayor-elect George Brown.
Brown said Monday afternoon he cannot comment on the matter because he has not discussed it with anyone.
Homeless problem
The former New Jersey Central railroad station was the site of a suicide two days after Christmas and has long been a magnet for the homeless.
In 2015, when the station was owned by the Luzerne County Redevelopment Authority, officials had to awaken two men dozing on sleeping bags during a county council tour of the property. Although much of the place was strewn with trash, trespassers in one room had settled in and neatly placed their folded clothes and an array of toiletries and medication on built-in shelves.
The authority had purchased the 6.36-acre property, which includes a strip mall, for $5.8 million in April 2006 using federal community development funds provided by prior county commissioners.
With no access to development funds, the authority sold the property 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.
The authority agreed last month to provide a second and final extension — this one 60 days. Market Square had to pay $43,200 in additional interest for the extensions and a $10,000 extension fee, officials said.
Authority 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 for the site.
Describing the suicide death as “a tragedy,” Albert said his group has been forced to board up and secure the building more than a dozen times since its acquisition.
“I chase people out of there at least once a week,” he said. “When it rains, people usually rip the boards down.”
A costly proposition
Albert reiterated that he and other investors took on the project to help the city, knowing it would never be a “huge financial gain” due to the cost to preserve the train station for professional offices.
Renovation of the 4,000-square-foot station will cost about $1.7 million to $1.8 million, he said. The station is on the National Register of Historic Places.
“I could knock it down and build a new structure for half the price,” he said, stressing his group would be investing more than $1.5 million of its own funds on the project beyond its current spending.
For now, his business office is next to Domino’s Pizza in the renovated strip center, now called the Market Street Business Center, where the increasingly rundown state of the train station is a glance away.
“I look at my office building and stare at it every day in frustration,” he said. “It’s a beautiful structure, and I want to save it and have the the means and ability to do so.”
