WEST PITTSTON, Pa. – The Luzerne County Redevelopment Authority has voted to sell the county’s 60-mile rail line to current operator R.J. Corman Railroad Group for $8.2 million, rather than accept a $10 million offer from Reading and Northern.
The Reading and Northern’s offer was for $7 million cash at closing plus $3 million to repair track during the first three years of ownership. Reading and Northern had offered to bring passenger excursions to Wilkes-Barre, extending its current excursion route from Reading and Jim Thorpe, Pa., in addition to providing freight service.
R.J. Corman has operated 27 miles of the trackage as the Luzerne & Susquehanna Line since October 2020. The railroad serves 11 customers.
The Times-Leader newspaper reported that Korey Colyer, R.J. Corman’s chief strategy officer, said during public comment before the vote on Tuesday that its bid “put forth the highest value” with $8.2 million in cash.
Reading and Northern Chairman and CEO Andy Muller Jr. said Tuesday he was surprised by the redevelopment authority’s vote because a five-citizen committee unanimously determined his railroad was the best choice. “We won this on our merits. For the redevelopment authority to ignore this is a little bit suspicious,” Muller said, according to the newspaper.
The line is being sold to settle litigation between Luzerne County and the redevelopment authority. The county sued the redevelopment agency last year over $3.3 million that had not been repaid from loans by the county to allow purchase of the rail line three decades ago; the sale will allow the authority to pay its debt.
The county has the right to reject the bid prior to the Oct. 9 closing of the transaction.
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