Reading and Northern Railroad expects to assume ownership and operation of Luzerne County’s rail line Nov. 23, according to a new filing with the federal Surface Transportation Board.
The company also has erected a sign at a downtown Wilkes-Barre lot it had purchased to inform passersby that it is the future site of the Wilkes-Barre Regional Railroad Station at Market Square.
“Passenger trains could be coming to your town! Taking a round trip train ride for a super fun day in Jim Thorpe could be in your future! Stay tuned…,” the sign said.
Located near the county’s historic train station along Wilkes-Barre Boulevard, the lot will hold a passenger platform station, Reading and Northern Chairman and CEO Andy M. Muller Jr. has said. It will link Wilkes-Barre to Reading and Northern’s Pittston depot, allowing recreational passenger-train excursions from Wilkes-Barre to Jim Thorpe and, eventually, from other areas to Wilkes-Barre if the city has events or attractions that will draw visitors here, he said.
Reading and Northern offered a $10 million package to purchase the rail line — $7 million cash at closing plus $3 million for specific track-related rehabilitation services to be spent during the first three years — in addition to a commitment to make upgrades to provide the excursions.
The county Redevelopment Authority owns the line and agreed to sell it to resolve litigation over $3.28 million the authority owes the county. County administration and the authority are negotiating the final sale agreement with Reading and Northern, officials said.
The original Oct. 9 sale closing was delayed due to litigation filed by R.J. Corman Railroad Co., which currently operates the line and had submitted a purchase offer. An Oct. 21 federal court order dismissed the case because R.J. Corman and Reading and Northern privately reached an agreement to end the litigation, officials said.
The Surface Transportation Board has jurisdiction over rail line sales.
Reading and Northern has filed paperwork through its Wilkes-Barre Terminal Railway Co. seeking board clearance, known as an exemption, to acquire and operate the line. An exemption can be issued for the purchase of smaller rail lines.
According to revised paperwork Wilkes-Barre Terminal filed Oct. 23 through attorneys from Washington, D.C.-based Clark Hill:
The parties intend to complete the transaction for operations to commence Nov. 23. R.J. Corman has agreed to “being replaced as the common carrier on the leased line” when the line is purchased by Wilkes-Barre Terminal.
The Reading and Northern affiliate is buying approximately 59.65 miles of line and the operating rights.
The filing details all rail sections to be purchased, including those in and out of service, and identifies 13 shippers currently served by the line.
Wilkes-Barre Terminal asks the board to issue a notice authorizing it to acquire the line.
The filing notes there is a separate request seeking board authority to allow Wilkes-Barre Terminal to grant local trackage rights to Reading and Northern over the in-service segments of the lines, effective Oct. 29. That would allow Reading and Northern “to ensure that there will be no disruption in service to customers” when the sale and concurrent operator switch are completed, it said.