PA: Reading & Northern recommended to buy Luzerne County rail line for $10M
After evaluating three proposals, a citizen committee is recommending the sale of Luzerne County's rail line to Reading and Northern Railroad, according to documents.
The committee was formed to provide an independent opinion on how to proceed.
The county Redevelopment Authority owns the line, and the authority-affiliated Rail Corp. maintains a lease agreement with a 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 county will have the right to reject any bid for any reason.
Redevelopment Authority Board Chairman Scott Linde said he expects the board will make its recommendation at the authority's regularly scheduled Tuesday meeting.
According to the committee's evaluation:
Reading & Northern 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.
"This is the highest stated overall dollar commitment among the proposals," it said.
The company's proposal to provide tourism-related recreational passenger train excursions from a depot in Wilkes-Barre was also a "major strength of the proposal," it said.
Reading & Northern Chairman and CEO Andy M. Muller Jr. had stated he would increase freight service and introduce excursions that connect Wilkes-Barre to excursions 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.
R.J. Corman, the current rail operator, offered $8.2 million to purchase the county line.
"R.J. Corman demonstrates experience with passenger operations, including excursion, dinner-train, museum, and commuter-rail operations. However, the proposal provides a less specific plan for developing passenger service in Luzerne County than the other proposals," the committee said.
The remaining proposal from Juniata & Aughwick Railroad LLC was ranked third by the committee. Instead of up-front cash like the others, it offered a revenue-sharing payment structure.
According to the request for proposals, approximately 27 miles of the roughly 56 miles of track are actively in use for train operations. The request is structured to allow arrangements for recreational trails in the future.
The evaluation committee recommends a sale that keeps easements intact for future rail-to-trails.
In its review, the committee also examined the opinion of the rail line holdings value issued by R.L. Banks & Associates Inc.
"The committee was independent as charged," it said, noting no county or redevelopment authority representatives — or anyone else — made recommendations, comments, or suggestions to the committee on "who should be the successful responder" to the solicitation for purchase offers.
The committee created a scoring matrix to analyze the responses based on independent ratings completed by each committee member. The committee also met twice during the process.
Its recommendation for the Reading & Northern sale was issued by the committee as a whole.
"Reading & Northern presents the strongest forward-looking development proposal," the committee said. "Its principal strengths are the $3 million dollar infrastructure commitment, preservation and restoration of track assets, a specific passenger-service plan, economic development commitments, job creation, and service expansion."
The committee stated the "principal disadvantage" compared to R.J. Corman is the operator transition because R.J. Corman is currently operating the line.
The following citizens served on the evaluation committee: James Brogna, the senior vice president of Allied Services and a Greater Wyoming Valley Chamber of Commerce Executive Board member; Thomas Benz, the Crestwood School District business manager and a former financial executive with Verizon Wireless and Endurance International; Kyle Rozitski, Pittston Township administrator; Thomas Sokola, county deputy controller and a retired Geisinger Health System financial executive; and Jeff Weisenberger, a Wright Township supervisor.
Under the litigation settlement agreement, closing must occur by Oct. 9.
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. Remaining proceeds would be split among the county, authority, and Rail Corp. based on a formula.
The request requires continued, uninterrupted operation of the rail line and service to all customers and shippers.
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