Grant pushes state funding for former Hotel Sterling project to $6.5 million

Jerry Lynott, The Times Leader, Wilkes-Barre, Pa.
·2 min read

Apr. 26—WILKES-BARRE — The state awarded another $2 million for the project proposed for the former Hotel Sterling site that a person involved in the development admitted has "taken too long."

The Redevelopment Assistance Capital Program grant moved the 110-room Hyatt Place Hotel and conference center along, but it's been a struggle to get a handle on the costs, said Steve Barrouk, a shareholder and project manager for H&N Investments LLC. Hysni "Sam" Syla, a principal with the development company, referred comments to Barrouk.

"We're going in the right direction," Barrouk said Monday. "It's just taken too long."

The third Redevelopment Assistance Capital Program grant was announced last week by state Rep. Eddie Day Pashinski, D-Wilkes-Barre, who advocated for the funding. The first RACP for $2 million was awarded in July 2019, followed by a $2.5 million grant in December 2020. The state Office of the Budget administers the program.

The project was initially estimated to cost $28 million and be built with mostly private funding, but the numbers have increased 25% as a result of the ongoing COVID-19 pandemic, Barrouk said. "We're just trying to fine tune the numbers on the project. They've been fluctuating in the wrong direction," he said.

Last year Barrouk said the pandemic forced the developer to miss a Sept.1, 2021, deadline to start construction on the property located on the corner of West Market and North River streets that serves as a gateway to the downtown. The city agreed to the date and also, in order to clear the title for the lender working with the developer, removed a reverter clause in the deed that would allow the repurchase of three parcels it sold for $600,000 in 2018.

After it was notified of the missed the start date last year, City Administrator Charlie McCormick said, "Any proposed changes to the timeline in the agreement with the developer for the construction, if proposed by the developer, will be reviewed with the city solicitor as to the legal ramifications and options."

Reach Jerry Lynott at 570-991-6120 or on Twitter @TLJerryLynott.