Two new hotel projects could soon break ground in Wilkes-Barre if developers secure funding. Representatives presented development details and renderings at Tuesday’s Luzerne County Council meeting.
‘Gateway Center’
H&N Investments plan to build a new hotel and event space at the site of the former Hotel Sterling, which was demolished in 2013. What would be the Gateway Center, part of the Hyatt Place franchise, is now an unpaved lot at the corner of River Street and Market Street in downtown Wilkes-Barre. The building would have 112 hotel rooms, a ballroom/event space, retail, surface parking and an elevated parking deck garage.
Developers are requesting $5 million from Luzerne County community development funds to complete the building.
Steve Barrouk, a project representative, said the estimated $23 million to complete the hotel jumped to $37 million due to the increase in material costs and lending rates during the pandemic. The state set aside $2 million in grants from the Redevelopment Assistance Capital Program (RACP) though developers asked the Commonwealth for $10 million.
Project designer Eric Doran of HC Architects said the site itself needs remediation. The foundation of the former hotel remains underground.
“One of the budgetary issues that we’ve been dealing with is essentially cleaning up the site to create a pad ready location for the building to be constructed on,” Doran said at the council meeting. “We can’t just build over top of these existing conditions that are below grade.”
With hopes to break ground this fall, developers said the Gateway Center would take 18 months to complete. The nearby Irem Temple, undergoing a renovation itself, would also help draw prospective hotel guests, representatives said.
‘Hotel on the Square’
Two buildings on Wilkes-Barre’s Public Square would become a 14-story hotel with a connected restaurant.
The Bloxton Investment Group wants to use the former Luzerne Bank and First National Bank buildings, which sit alongside the F.M. Kirby Center for the Performing Arts. Developers say the hotel will be a Marriott Tribute franchise with 105 rooms.
Bloxton is seeking $2 million from the county to wrap up an estimated $23.8 million in costs.
Extreme Hospitality is involved as consultant in both deals. In a phone interview, company principal Eric Rubino said he’s hopeful councilmembers approve funds for each project, which both aim to break ground later this year.
The buildings on Public Square will remain intact, but conversions will be needed for restaurant space and hotel rooms. Developers would like a high-end restaurant in FNB, which would connect to a hotel lobby and bar next door in the Luzerne Bank building.
Local funds
Councilmembers clarified the requested funds would not come from taxpayer coffers, but rather county reserves from a Housing and Urban Development program.
More than $7 million in county money — almost the exact amount requested in both projects — exists from a HUD initiative in the late 80s, the Urban Development Action Grant (UDAG) program, said Catherine Hilsher, executive director of Luzerne County Community Development. The federal money no longer has strict use requirements like Community Development Block Grants, she said.
The county had issued low-interest loans for business development since receiving the federal money over 30 years ago. Hilsher said it’s unclear if council will approve the money outright. Council will need to vote on during an upcoming session.
