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Public funds helping private developer bring grocery to Public Square

<p>Luzerne County Councilman Stephen A. Urban said Tuesday he&#8217;d have a &#8220;hard time&#8221; granting a request from the Greater Wilkes-Barre Chamber of Business &amp; Industry to forgive $1.7 million in community development loans.</p><p>Wico Van Genderen, the chamber&#8217;s president and CEO, told the council the forgiveness is needed to clear liens on its Innovation Center @ Wilkes-Barre on South Main Street so the property can be sold as part of a $6.1 million downtown Wilkes-Barre development project.</p><p>Red Talon Group 1 LLC, a private development entity, wants to buy the Innovation Center and First National Bank Building on Public Square to create 120 high-tech jobs and spur other growth.</p><p>Urban, one of 11 county council members, said he does not want to sacrifice $1.7 million that could be used for other future development projects.</p><p>The money came from the county&#8217;s revolving loan fund for community development, which relies on loan repayments and interest earnings to continue providing new loans to area businesses. The money can&#8217;t be used for general fund operating expenses.</p><p>&#8220;That&#8217;s money that will never come back into the fund. That&#8217;s money that will never be used in the future to generate jobs,&#8221; Urban said of the forgiveness.</p><p>Urban also questioned why the project was tied to a chamber-owned building when there is vacant space in other downtown structures, including the Wilkes-Barre Center, commonly known as the Frontier Communications property, on Public Square.</p><p>&#8220;You just simply want to unload a piece of property and you want us to eat $1.7 million,&#8221; Urban said.</p><p>Van Genderen said the chamber is working on other plans for the Frontier property but can&#8217;t publicly discuss them at this time due to non-disclosure agreements.</p><p>While the chamber is trying shed its debt and real estate, Van Genderen said his support for the innovation center project is based primarily on its benefits: keeping college graduates here and creating a spinoff demand for housing and other businesses.</p><p>Private ownership of the innovation center will &#8220;grow the business better,&#8221; he said.</p><p>If the transaction goes through, the chamber will give the county community development office $1.7 million of its proceeds from the $2.6 million sale as repayment for other loans. That money will go back into the loan fund.</p><p>The rest of the chamber&#8217;s sales proceeds will be used to repay about $126,600 in back real estate taxes on the innovation center and close out a $704,000 state loan, Van Genderen said.</p><p>&#8220;Every penny is going back to the county and state,&#8221; he said.</p><p>Several council members said they will accept Van Genderen&#8217;s invitation to tour the center and further discuss the project. The council is expected to vote on the chamber&#8217;s request at its April 5 meeting.</p><p>The community development loan fund currently contains $16 million, and county Community Development Director Andrew Reilly said requests for loans have dropped off in recent years because businesses can obtain low interest rates borrowing from private institutions.</p><p>The chamber currently owes the fund $7.2 million for eight loans, Reilly said. If the loan forgiveness and sale go through, the chamber will owe $3.8 million on five loans, he said.</p><p>Van Genderen said the chamber has plans to pay off the remaining debt through land sales.</p><style>
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<div class="neFile"><img class="neImage" src="https://www.timesleader.com/wp-content/uploads/2016/03/web1_urban-Steve.jpg">
<div class="neCaption">Urban </div></div><div class="metaInfo"><photo0>https://www.timesleader.com/wp-content/uploads/2016/03/web1_urban-Steve.jpg</photo0><caption0>Urban </caption0><photoCredit0></photoCredit0></div><div class="neFile"><img class="neImage" src="https://www.timesleader.com/wp-content/uploads/2016/03/web1_TTL081515PFEW.Wico1_-1.jpg">
<div class="neCaption">Wico van Genderen </div></div><div class="metaInfo"><photo1>https://www.timesleader.com/wp-content/uploads/2016/03/web1_TTL081515PFEW.Wico1_-1.jpg</photo1><caption1>Wico van Genderen </caption1><photoCredit1></photoCredit1></div></div>
<div class="metaInfo"><bylineMeta><p>By Jennifer Learn-Andes</p><p>jandes@www.timesleader.com</p></bylineMeta></div><div class="metaInfo"><shirttailMeta><p>Reach Jennifer Learn-Andes at 570-991-6388 or on Twitter @TLJenLearnAndes.</p></shirttailMeta></div>

Luzerne County councilman challenges loan forgiveness request by city chamber of commerce