126618033_web1_KAUFER

Pending bill could settle DA debate

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WILKES-BARRE &mdash; The dirt lot where the former Hotel Sterling stood is expected to be a construction site in six months under an agreement between the city and the developer to speed up the project.
				City Council Thursday night agreed to remove the remaining reverter clause option in the <a href="https://www.timesleader.com/wp-content/uploads/2021/03/Sterling-sale-doc-1.pdf" target="_blank" rel="noopener">sale agreement</a> from 2018 so H&N Investments LLC can obtain funding for the proposed development containing a hotel, condominiums and conference space.
				The prior efforts of nonprofit developer CityVest were terminated, leaving it to the city to condemn and demolish the landmark structure in 2013. The city later acquired the property at the intersection of West Market and North River streets.
				The clause that allows the city to repurchase the real estate if the developer fails to meet agreed upon benchmarks and deadlines acted as a &ldquo;cloud&rdquo; on the title to the property, explained City Administrator Charlie McCormick during the <a href="https://www.youtube.com/watch?v=Cui2tqpAliY" target="_blank" rel="noopener">online </a><a href="https://www.youtube.com/watch?v=Cui2tqpAliY" target="_blank" rel="noopener">meeting</a>.
				The lender the developer is dealing with wants a &ldquo;clear title&rdquo; in order to fund the project, McCormick told council.
				One of the conditions has already been met with <a href="https://www.timesleader.com/news/789188/new-hotel-for-site-of-hotel-sterling-gets-wilkes-barre-zoning-approval" target="_blank" rel="noopener">the project receiving zoning approval last year</a>. But under the other condition, the developer has two years from zoning approval to &ldquo;finalize the completion of the construction,&rdquo; the repurchase option agreement said.
				McCormick said in exchange for removing the &ldquo;cloud&rdquo; created by the second option H&N Investments LLC agreed to move the land development deadline up by 10 months.
				&rdquo;They will be under construction, under that development contract on or before Sept. 1 of 2021. They will have the construction contract signed and closed by that period of time. And if not, the repurchase agreement still remains after that if they violate that so the city control the property if they so desire,&rdquo; McCormick said.
				Details on the lender and funding were not disclosed at the meeting.
				Consulting engineer George Albert previously said a good portion of the funding for H&N Investments LLC&rsquo;s estimated $28 million project was in place. The state awarded a $2 million Redevelopment Capital Assistance Program grant in 2019. Additionally, the developer could access another $13 million included in the state&rsquo;s 2017-2018 capital budget for the project that&rsquo;s located in a Keystone Opportunity Zone providing tax relief until 2024.
				Callers into the City Council meeting paid no attention to the development and focused their attention on the $20,000 raise coming to Assistant City Clerk Cathy Payne. City Council, which controls the Clerks Office, approved her appointment to City Clerk effective April 5 to replace Jim Ryan who is retiring after 21 years.
				Payne&rsquo;s position will be posted and filled according to the rules of Local 1310 of the Laborers International Union of North America that represents City Hall employees.
				&ldquo;City Council has collectively agreed the City Clerks position will be compensated at $77,000 and the Assistant City Clerk at $45,000 with no over time for attending Council meetings,&rdquo; said City Council Chairman Tony Brooks.
				When the calculations are done, the city will save more than $30,000 a year, Brooks said. He credited a report earlier this year by the Times Leader on the <a href="https://www.timesleader.com/top-stories/817275/contract-and-code-conflict-on-ot-for-wilkes-barre-city-clerk" target="_blank" rel="noopener">overtime for the City Clerk </a> as being a determining factor in eliminating the extra pay.
				Still, one of the callers, Bob Kadluboski, blasted the appointment.
				&ldquo;For you to sit there and try to buffalo the taxpayers that you&rsquo;re saving them money, how do you say you&rsquo;re saving money, saving all this money when you&rsquo;re giving her a raise of over $400 a week,&rdquo; Kadluboski said. &ldquo;For that she should be able to clean the City Hall too.&rdquo;
				Other agenda items approved included:
				&#8226; The sale of the property at 101-103 Westminster St. to Michael Slusser for the appraised value of $400.
				&#8226; The purchase of rock salt for next winter at a previously bid state contract.
				&#8226; The appointment of retired Wilkes-Barre City Fire Department Assistant Chief William Murtha to the Fire Civil Service Commission for a term that expires on Dec. 31, 2024.
				&#8226; Conveyance of land near the Sphere International development proposed for South Main and West Northampton streets to the Wilkes-Barre Parking Authority.
				&#8226; The first of two readings of an ordinance to place three permanent stop signs at the intersection of Maple and North Main streets.

Development on former Hotel Sterling site expedited under agreement with developer