$660,000 Loan To Kingston Paid Off Ahead Of Schedule

By P. DOUGLAS FILAROSKI; Times Leader Staff Writer
 Thursday, December 28, 1995 &nbsp;&nbsp;&nbsp;&nbsp;Page: 3A 





WILKES-BARRE -- Wilkes-Barre is a town without a unified plan to rise from
the ashes of a burned out coal industry, say some local leaders. &nbsp;&nbsp;&nbsp; 
 But it is not a community without any plan. &nbsp;&nbsp;&nbsp; U.S. Rep. Paul Kanjorski, D-Nanticoke, and outgoing Mayor Lee Namey have
quietly worked the past two years on a plan they dubbed the "core city" or
"corridor" project. &nbsp;&nbsp;&nbsp; 
 The challenge now, Kanjorski said Wednesday, is to continue to generate
local support from people such as Mayor-elect Tom McGroarty and to nail down
federal backing for projects. &nbsp;&nbsp;&nbsp; 
 The idea is to focus development efforts along an inner city "corridor"
stretching from Interstate 81, near a proposed arena, through Public Square,
over the Susquehanna River and into Kingston Corners. &nbsp;&nbsp;&nbsp; 
 So far, the concept includes proposals ranging from a federal office
building in the former Stegmaier Brewery to an inflatable dam that would
create a recreational lake on the river. &nbsp;&nbsp;&nbsp; 
 Kanjorski said he expects a decision "within a couple weeks" from the U.S.
Postal Service on funding a $20 million renovation of the former Stegmaier
Brewery for federal offices. &nbsp;&nbsp;&nbsp; 
 When he announced the "corridor" plan in 1993, Kanjorski described it as an
attempt to take advantage of a new federal law requiring the government to pay
"differential pay" to its employees who work in major metropolitan areas. &nbsp;&nbsp;&nbsp; 
 Because the differential pay of about 5 percent is not required in
secondary cities such as Wilkes-Barre, Kanjorski hopes he can lure government
offices with highly paid workers to town. &nbsp;&nbsp;&nbsp; 
 The congressman said it is important to have a plan and to focus on
revitalizing the Wyoming Valley's hub. &nbsp;&nbsp;&nbsp; 
 "Other development will spring up around it," Kanjorski said. "You can't
just let things happen by chance." &nbsp;&nbsp;&nbsp; 
 The plan also involves improving the region's quality of life, Kanjorski
said. &nbsp;&nbsp;&nbsp; 
 Funding to raise a 15-mile stretch of levees along the Susquehanna River
and build an inflatable dam has been approved by Congress, he said. &nbsp;&nbsp;&nbsp; 
 But officials now must agree with the U.S. Army Corps of Engineers on a
plan to deal with the change in water levels created by the projects. &nbsp;&nbsp;&nbsp; 
 Kanjorski aide Karen Feather said the corps is expected to complete a
"final design memorandum" in six months, and that a $4.3 million phase of
construction could begin by 1997. &nbsp;&nbsp;&nbsp; 
 Two weeks ago, city officials managed to stall a sheriff's sale of the
Sterling Hotel at Market and River streets as the city looks into the hotel
owners' plans to convert the building to condominiums. &nbsp;&nbsp;&nbsp; 
 Kanjorski said if the owner -- a limited partnership headed by Neil Camera
of Massachusetts -- does not have a viable plan, various government entities
could submit a bid for the property, which is located in the corridor. &nbsp;&nbsp;&nbsp; 
 A week or two earlier, the state awarded a contract to a firm that will
design an I-81 exit at the top of the corridor and lead to downtown
Wilkes-Barre -- an indication that plans for building the exit might be moving
forward. &nbsp;&nbsp;&nbsp; 
 The exit was linked to the proposed Wilkes-Barre Township arena atop the
corridor. &nbsp;&nbsp;&nbsp; 
 In May, Luzerne County voters rejected a proposal to use a county bond
guarantee to help finance the arena, but supporters are working on alternate
financing they say could be announced this winter. &nbsp;&nbsp;&nbsp; 
 McGroarty met with local business leaders three weeks ago to discuss the
center city. At that meeting, the group agreed the city lacks a cohesive plan
for redeveloping the Wilkes-Barre area. &nbsp;&nbsp;&nbsp; 
 The mayor-elect, who takes office next week, said Tuesday he generally
supports the "corridor" project, but he has yet to discuss his concerns in a
meeting with Kanjorski. &nbsp;&nbsp;&nbsp; 
 McGroarty said he wants other communities to help fund projects that will
have a regional impact, and he doesn't want his development ideas to get
placed on the back burner. &nbsp;&nbsp;&nbsp; 
 Kanjorski said he is eager to meet with the incoming mayor soon after he
takes office on Jan. 3. &nbsp;&nbsp;&nbsp; 
 "I really think it's a good idea we start talking," he said. &nbsp;&nbsp;&nbsp;

Kanjorski Seeking `corridor' Support Nanticoke Congressman Hopes To Gain Backing Of Wilkes-barre Mayor-elect Tom Mcgroarty