Luzerne County’s Redevelopment Authority voted Tuesday to sell the county rail line to R.J. Corman Railroad Group for $8.2 million.
Due to pending litigation, County Council will have the authority to veto the authority’s decision.
A citizen committee had recommended a sale to a different company, Reading and Northern Railroad, which offered $10 million — $7 million cash at closing plus $3 million for specific track-related rehabilitation services to be spent during the first three years.
R.J. Corman, the current rail operator, offered $8.2 million to purchase the county line.
Korey Colyer, R.J. Corman’s chief strategy officer, said during public comment before the vote that his company was the high bidder and “put forth the highest value” with $8.2 million in cash. Regarding investment in the line, he said his company has already spent $3 million maintaining the line since it became the rail operator in December 2020.
Colyer said his company did not receive any communication other than what he read in the newspaper, describing it as an “odd process.”
He also questioned if companies using the line will have to pay more for service under Reading & Northern ownership.
“We deserve a little more voice,” Colyer said.
Authority Solicitor Peter O’Donnell said the authority board received all proposals, the committee recommendation, an outside opinion of value and other documents. O’Donnell said all information would be discussed in a closed-door executive session prior to the board vote to ensure he was comfortable board members were fully informed.
The executive session lasted an hour.
All three authority board members in attendance promptly approved the sale to R.J. Corman: Chairman Scott Linde, Stephen Phillips, and Erik Laskosky. Board members Kelly Mulhern and John Pekarovsky were absent.
O’Donnell said a board decision was made Tuesday due to deadlines under a settlement agreement with the county.
The Redevelopment Authority owns the line, and the authority-affiliated Rail Corp. maintains a lease agreement with the rail operator.
Both entities entered into a litigation settlement agreement with the county that includes the sale of the line. County Council initiated the litigation against the authority and Rail Corp. in July 2025 over an outstanding $3.28 million loan the county had provided for the rail acquisition.
Under the settlement, the sale award was to take place within 15 days of the submission of proposals, or Sept. 12, O’Donnell said, noting the board acted Tuesday because its regular monthly meeting was scheduled.
The county will have the right to reject any bid for any reason, and Oct. 9 is the deadline for a sale closing, the settlement agreement said.
Council Chairman Jimmy Sabatino said the matter will be on the council’s Sept. 22 voting agenda.
If a sale does not close by Oct. 9, the authority/Rail Corp. agrees to give the county possession of all rail property voluntarily and without objection, the settlement agreement said.
A citizen committee had recommended selecting Reading & Northern, noting that it presented the “highest stated overall dollar commitment among the proposals” and would offer tourism-related passenger-train excursions from a depot in Wilkes-Barre, in addition to concentrating on freight service.
Reading & Northern Chairman and CEO Andy M. Muller Jr. stated he would increase freight service and introduce excursions connecting Wilkes-Barre to those it already operates between Pittston and Jim Thorpe. Reading & Northern has purchased a downtown Wilkes-Barre lot that would hold a passenger platform station near the county’s historic train station, which houses the county tourism office, Muller has said.
Muller said Tuesday he was surprised by the redevelopment authority’s vote because the five-citizen committee unanimously determined his company was the best choice based on its plan and record of success elsewhere.
“We won this on our merits. For the redevelopment authority to ignore this is a little bit suspicious,” Muller said.
He said it now appears to be “all about money with some people.” As a result, Muller said he is announcing Reading & Northern will withdraw its request to apply $3 million of its $10 million offer toward repairing the line.
“We’re still providing $10 million, but they can do whatever they want with that money. The county can keep the full $10 million,” Muller said.
He emphasized the revised offer won’t jeopardize his promise to bring passenger excursions to Wilkes-Barre. He commits to breaking ground on the rail upgrades required for passenger excursions the day after closing on a purchase.
Muller said he had requested the $3 million be carved out for repairs because the railroad is “in terrible shape.” He said all “deferred maintenance” will be addressed, though it will take longer without earmarking a portion of the $10 million toward repairs.
His offer is a “generational opportunity” to bring passenger excursions to Wilkes-Barre’s downtown, he said, pointing to economic development benefits his company’s excursions have brought to Jim Thorpe, Reading and other stops.
“Nobody else competes with us,” he said in reference to the regional excursions, noting freight carloads are increasing at all Reading & Northern locations.
Linde said he chose R.J. Corman’s proposal because it was “straightforward” and provided the most money. Both factors are important when there are two responsible entities seeking to purchase a public asset, especially as the authority is up against litigation settlement deadlines, he said.
Speaking during public comment Tuesday, Wilkes-Barre resident Erik Vince said he would like Reading & Northern to acquire the lines due to “everything it is promising,” including the excursions, increasing freight, and the revitalization of downtown Wilkes-Barre. Vince said he believes the company’s proposal will “benefit the area” more than one from R.J. Corman Railroad Group.
Sale proceeds must first be used to pay off the authority’s outstanding loans to the county and cover county legal fees and costs associated with preparing the request for proposals and carrying out the sale. The remaining proceeds would be split among the county, the authority, and the Rail Corp. according to a formula.
The request requires continued, uninterrupted operation of the rail line and service to all customers and shippers.