Unless convincing arguments are presented, Luzerne County Council may vote Tuesday to cut federal American Rescue Plan Act earmarks for two prominent projects — a parkade at the former Hotel Sterling site in Wilkes-Barre and recreation enhancements in the area of Nesbitt and Kirby parks, county officials said.
Council Chairman John Lombardo said the proposals to “claw back” the money stem from council concerns about a lack of activity and the possibility the promised projects won’t meet required deadlines.
Lombardo said council and the administration are keeping close tabs on all outstanding projects.
All American Rescue projects must be completed by the end of 2026 in compliance with federal regulations. Council earmarked $55 million to more than 100 outside entities, with some projects already finished and others still underway.
“Council needs to be able to have time to reallocate this money if it is determined these projects will not be successful,” Lombardo said.
He vowed council won’t be stuck returning funds because awarded projects did not materialize as promised.
“We are not risking any of this money. We are not giving any of this money back to the federal government. That’s not happening,” Lombardo said.
Representatives of both projects have been invited to Tuesday’s meeting to “make their case and discuss possible changes that will enable them to finish their projects in time,” he said.
Lombardo said he and his colleagues want concrete information and assurances on what work will be completed.
“If they are serious about their projects and getting something done, they’d better be prepared to answer a lot of questions. They must have specifics of things they can and will get done by 2026, or they won’t get this money,” he said.
Lombardo noted both projects have received a “generous grace period” because the original requirement was for the projects to be completed or in progress last June.
Sterling project
Council had awarded $2 million to the Wilkes-Barre Industrial Development Authority for the public parking garage. The parkade is part of a public/private partnership with the developer of a proposed Gateway Hyatt Place Hotel and Conference Center on the corner of North River and West Market streets.
Because the demand for American Rescue allocations exceeded available funding, county council had capped awards in various categories. As a result, the county’s award was $1 million less than requested for the parkade. In total, the parkade will cost $3.8 million. The city authority and hotel developer have been pursuing grants to cover the remaining gap, officials have said.
The authority had requested a project completion extension from the end of June 2024 to March 31, 2025, which was granted by council.
An extension was needed because the remaining funding required for construction was still in the process of being secured, the authority had said.
The city authority would own the public garage, while the hotel/conference center developer would enter into an agreement to help manage the parkade, project representative Stephen Barrouk has said.
The plans call for 75 ground-level hotel spaces, and the two-story garage would have 150 spaces with the ability to expand upward if needed, he had said.
In addition to a hotel, parking must be added in that city section to accommodate other residential structures and events at the county-owned River Common recreational complex located across the street along the Susquehanna River, Barrouk has said. Several nearby former commercial buildings have been converted for residential use with no parking, and the occupants’ ability to park for free at the Sterling lot will end when the site is developed, he said.
Separate from American Rescue allocation, council had voted in January 2024 to earmark $3 million in community development funds toward H&N Investment’s proposed $37 million, 112-room hotel/conference center.
Tuesday’s council resolution said the $2 million in awarded American Rescue funds for the parkade will be “de-obligated” by the county because the authority is “unable to complete the project as originally presented and approved” due to matching funds not yet secured. It is “not feasible” for the funds to be expended on the project by the end of 2026, the resolution said.
Park enhancements
The project addressing the largely wooded riverfront swath in Kingston and Wilkes-Barre also was awarded $2 million in American Rescue funds.
The Jewish Community Alliance of Northeastern Pennsylvania had agreed to serve as a pass-through entity for the multi-municipal project to be completed, with representatives stressing no funding will go to the alliance.
Council had granted the alliance’s request for an extension from the end of June this year to the end of 2025 due to personnel changes that had slowed the project advancement.
Plans were in the works to complete a master plan and select a contractor to handle initial projects that could be completed within the American Rescue allotment and deadline, project representatives have said.
The west side master plan was focused on the river sides of Nesbitt and Kirby parks in Wilkes-Barre and a proposed new Riverbend Park in Kingston stretching from the Veterans Memorial (Pierce Street) Bridge to south of the Cross Valley Expressway, according to prior reports.
A fresh master plan was warranted because the previous ones were completed in 1995 for Kirby/Nesbitt and 1998 for the Riverbend Park. An updated plan also should help in obtaining future state funding to complete additional phases, project representatives have said.
Some of the work envisioned in the original master plans also may not be advisable due to concerns about damage from flooding or ice jams.
The project aims to restore long-intended access to publicly-owned wooded areas, including a riverfront section cut off from the rest of Kirby Park when the levee bisected the park in 1936.
Past county officials had expressed interest in tackling improvements at Kirby and Nesbitt parks and the proposed Riverbend Park once the east side River Common enhancement project was completed, but the plan fell off the radar as administrations changed and funding for discretionary projects dried up.
As with the Sterling parkade resolution, the one for this project on Tuesday’s council agenda said the funds will be de-obligated because the work originally presented and approved cannot be completed for the funds to be spent by the end of 2026.
Tuesday’s meeting is at 6 p.m. in the county courthouse on River Street in Wilkes-Barre, with instructions for the remote attendance option posted under council’s online meetings link at luzernecounty.org.