Hotel Sterling: Yesterday’s Papers are Such Bad News

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As Mick Jagger used to sing, “Yesterday’s paper’s are such bad news”,  and no truer words could be spoken about the Hotel Sterling, which has been reduced to rubble,  as of last week.  While demolishing the Hotel is still a controversial issue  among community members,  looking back at newspaper coverage since 2001, provides some important clues about why the project may have ultimately failed.

I did have this information up in another post titled “The Undead Days: Part 2”, which I am currently developing into another project about the Hotel Sterling, and as a result, had to remove the post from my website.  While much of the post was just a silly mash-up story, I think it is important to put the newspaper excerpts back out there for anyone who would like to read and digest what nuggets of insight may be contain within the facts that local journalists covering  the story felt were important to convey to the public.  This is by no means a complete list of all news stories about the Sterling.  But it may provide a starting point for anyone else who may be interested in delving into the topic, as reported to by the local newspapers in the past.

Hotel Sterling in the News

The advance state of disrepair the Hotel Sterling has fallen into in downtown Wilkes-Barre has local historians worried about its future.”—The Valley’s Vanishing History”, Citizens’ Voice, March 18, 2001  

Congressman Kanjorski has also been working behind the scenes for years to create opportunities for the resurrection of the Sterling.  On Wednesday, the federal lawmaker confirmed that last week he led a developer on a tour of the Sterling.  He has been in touch with four different developers over the past year.  He declined to identify them but stressed that it is important to get the Sterling in the hands of CityVest so that redevelopment proposals could be solicited to get the project moving forward.” — “Developers interested in Sterling”, Citizens’ Voice, May 9, 2002

The 425 room hotel was a symbol of Wilkes-Barre’s prominence.  Now, it’s a symbol of the city’s decay.–“Saving City, Sterling Go Hand in Hand”, Times Leader, December 17, 2002

CityVest is working to put the vacant hotel in moth balls and prevent additional damage from the elements“–Saving City, Sterling Go Hand in Hand”, Times Leader, December 17, 2002

Private development is the key to resurrection for the quickly declining hotel–“Saving City, Sterling Go Hand in Hand”, Times Leader, December 17, 2002

If projects like the inflatable damn, the downtown museum and the River Commons recreation area pan out, it will make the Sterling more attractive to developers.  But it won’t be enough.–“Saving City, Sterling Go Hand in Hand”, Times Leader, December 17, 2002

And unless we turn the tide, we’ll forever be a city that has seen better days, and the shell of the Sterling will stand as proof.  We can still hook a developer for the Sterling if things don’t turn around, but we’ll have to use smoke and mirrors. We’ll have to hide the newspapers when prospects visit, so they won’t read about our dirty politics, disappearing doctors, etc.–“Saving City, Sterling Go Hand in Hand”, Times Leader, December 17, 2002

 “In the past few months, other developers near and far have shown interest in the hotel, (Alex) Rogers said.  In addition, he added, residents, architects and others have offered to assist CityVest, which has secured the complex of buildings in an attempt to reduce further weather-related damage.”  — “Some Sterling Examples”, Times Leader, April 3, 2003   

Lincoln was chosen to find a developer (for the Hotel Sterling) because the firm has acquired a lot of experience in the region.  It has played a major role in guiding commercial development on Highland Park Boulevard near the Wachovia Arena in Wilkes-Barre Township and recently completed a detailed market study of Wilkes-Barre for the Diamond City Partnership. —“National Firm Will Market Sterling”, Citizens’ Voice, September 16, 2003

Gary Brandeis, senior vice president of Lincoln Properties and James Stevenson, vice president, were introduced, and both expressed confidence that the Sterling complex would be successfully transformed. —“National Firm Will Market Sterling”, Citizens’ Voice, September 16, 2003

CityVest paid $1 million for the dilapidated Sterling complex in November 2002 at sheriff sale, a benchmark event following years of abandonment, decay and protracted litigation. —“National Firm Will Market Sterling”, Citizens’ Voice, September 16, 2003

CityVest was provided with a $1 million federal grant from U.S. Rep. Paul Kanjorski, D-11 & a $4 million loan from the Luzerne County Office of Community Development.  Wilkes-Barre City, the Wilkes-Barre Area School District and Luzerne County agreed to forego $1 million in back taxes and penalties to facilitate the purchase and redevelopment of the Sterling. —“National Firm Will Market Sterling”, Citizens’ Voice, September 16, 2003

In January 2003, CityVest retained a team of local architects and engineers to assist them to stabilize and protect the complex from further decline. —“National Firm Will Market Sterling”, Citizens’ Voice, September 16, 2003

 With $9 million already raised, the corporation must look for new ways to come up with the remainder of the cash (to cover the first part of the project in excess of $29 million). “We anticipate raising private sector money and will continue to seek public assistance as well”, the chairman said.  Rogers said that with the capital that CityVest has already secured, the corporation could actively market the building. –- “Imagine the Possibilities”, The Sunday Voice, October 10, 2004

Renovations to the Hotel Sterling will begin this spring and will not be completed until at least 2007, according to CityVest Chairman Alex Rogers.  However, he said he has already fielded over 20 inquires about the proposed condominiums and offices. – “Market Shows interest in Condominiums”, The Sunday Voice, October 10, 2004    

Working from the seventh floor down, obvious challenges to redevelopment could be seen everywhere.  The building has problems with infestation and mold, and also sustained heavy water damage due to prolonged leakage in the roof.  A hole opened in the seventh floor penthouse suite, and Rogers said water came pouring into the building for four months.  Because of that, the suspended ceilings in many of the former apartments have crumbled, sending debris onto the floor.—“Imagine the Possibilities”, The Sunday Voice, October 10, 2004

 The commissioner (Vonderheid) said the Sterling project was specifically important because he feels there is a need for high end housing in the City of Wilkes-Barre.—“Market Shows Interest in Condominiums”, The Sunday Voice, October 10, 2004

The mayor agreed there is a market for upscale housing in the city of Wilkes-Barre.  “I’ve been told that if the housing industry changed in the city of Wilkes-Barre, people who live in the suburbs would seriously consider moving back into the city”, Leighton said.—“Market Shows Interest in Condominiums”, The Sunday Voice, October 10, 2004

 “The governor’s award of $3 million made it clear that we had sufficient capital to complete the project”, Alex Rogers, City Vest executive director — “Sterling Gets Developer”, Times Leader, December 1, 2004 

“CityVest, the nonprofit corporation driving the rehabilitation of the Hotel Sterling is no longer shopping the decrepit landmark to private developers, but is planning to take on the project itself”……“Interest in a reincarnated Sterling has already begun to manifest itself, (Alex) Rogers said.  “The number of inquiries we have received from people waiting to live or work in a refurbished Hotel Sterling has vastly surpassed any of our individual expectations.”—“CityVest To Do the Job Using Millions in Grants”, Times Leader, December 1, 2004 

“CityVest shifted gears from marketing the Sterling to developers to becoming the developer after receiving millions of dollars in state funding in September.”–“CityVest To Do the Job Using Millions in Grants”, Times Leader, December 1, 2004

The initial phase of the project has been projected to cost about $22 million.  Thus far, about $8 million in cash has been promised by federal, state and county sources, and $1 million in tax forgiveness has been by the city, county and school board.  “We are going to need a lot of private financing to go with the public money”, Rogers said.  -– “Firms:  Sterling Project Can Thrive”, Times Leader, April 15, 2005

He (Rogers) agrees with Congressman Paul E. Kanjorski, that the Hotel Sterling might be eligible for federal tax credits meant for development projects in low-income communities. –“State Ensuring Preservation of Hotel Sterling’s Legacy:  Bureau for Historical Preservation Will OK CityVest’s Progress”, Citizens’ Voice, June 7, 2005

 “Without any formal marketing, CityVest board members can’t go to any functions in town without somebody expressing interest”, Rogers said..–“State Ensuring Preservation of Hotel Sterling’s Legacy:  Bureau for Historical Preservation Will OK CityVest’s Progress”, Citizens’ Voice, June 7, 2005

 

The building schedule has not been established.  That’s up to CityVest which is still making environmental inspections and consulting with the state Bureau for Historical Preservation to make sure the landmark’s historical integrity is protected.–“Historic Landmarks Offer Potential, Pitfalls for Architects”, Citizens’ Voice, June 7, 2005

To date, the bureau remains pleased with the relationship with CityVest.–“State Ensuring Preservation of Hotel Sterling’s Legacy:  Bureau for Historical Preservation Will OK CityVest’s Progress”, Citizens’ Voice, June 7, 2005

 

Currently, CityVest has accounted for about $9 million of the projected $20 million to $22 million needed for renovation.  But Rogers is optimistic about CityVest’s chances of raising the needed $10 million to $12 million..–“State Ensuring Preservation of Hotel Sterling’s Legacy:  Bureau for Historical Preservation Will OK CityVest’s Progress”, Citizens’ Voice, June 7, 2005

 “The state is filled with historic structures facing demolition, he said. He’s been working with the owners of the massive former Pennhurst State School and Hospital in Chester County, which has an unknown future.  One of Kimmerly’s (of Preservation Pennsylvania) colleagues is involved in the potential demolition of a vacant former brewery in Allentown. “These are difficult times economically. Private funders don’t have money. The government doesn’t have any money, and typically that’s where money comes for historic preservation,” Kimmerly said. – “Preservation Pennsylvania is monitoring Hotel Sterling”, Times Leader, April 3, 2011

As the nonprofit CityVest embarked on the Hotel Sterling renovation project in 2001, officials and residents in a smaller Ohio city were taking on a similar project to try to save their deteriorating historic hotel. But while the Hotel Sterling is facing possible demolition, the Fort Piqua Plaza in Piqua, Ohio, is now home to a library, coffee shop, banquet hall, community museum and art gallery, said James Oda, director of the Piqua Public Library housed in the building. “It was a controversial issue locally. We had people who said, ‘Why don’t we tear it down and start over?’ Others said, ‘No. This is part of our community’s heritage,’” Oda said. “Fortunately, people who wanted to preserve the building opened their pocketbooks,” Oda said…….. “The private donations came from sources as diverse as an elementary school selling popsicles to some multimillion-dollar donations primarily from a prominent family,” Oda said. –“Ohio City’s Hotel Saved”, Times Leader, April 3, 2011   (NOTE:  The building opened in 2008)

The owner of the landmark Hotel Sterling wants Luzerne County government to determine the fate of the deteriorating structure, which would cost up to an estimated $26.8 million to $35.6 million to fully restore, according to a new study. CityVest asked county commissioners to decide whether the building will be saved or demolished because the county provided $6 million in funding for the nonprofit to acquire and preserve the building. “In recognition of the substantial investment the county has made and the broad community interest, we ask the county to review this study, select the preferred future direction, acquire title and serve as project manager,” the study says.—“Sterling’s Fate in County’s Hands”, Times Leader, April 16, 2011

The possibility of demolition of the River Street landmark has generated lots of debate since it became public last month, after a decade of promises that the building would be restored. Picketers have urged officials to save the once luxurious hotel, while others have demanded an end to government subsidy of the project. . ..CityVest, known as a last-resort developer, assumed ownership of the building from a back-tax sale in 2002.—“Sterling’s Fate in County’s Hands”, Times Leader, April 16, 2011

Renovating and converting the downtown Wilkes-Barre property into 32 condos, offices and retail space would generate an estimated $15.3 million in revenue, leaving a net government investment in the project of $11.5 million to $20.2 million, said the study released Friday by the building’s nonprofit owner and developer, CityVest. Demolition and site preparation would cost $900,000 to $1.2 million, the study says.—“Sterling’s Fate in County’s Hands”, Times Leader, April 16, 2011

The study is packed with deficiencies in the building.    Roofing experts estimated it would cost more than $1.4 million to complete permanent repairs to the roof framing and install a new rubber roof and roof drainage.  Despite roof shoring in 2007, some portions of the roof are collapsing, and water is getting into the building in “significant volumes,” the study said. The floor is sagging in numerous areas, and there’s evidence of mold and other potential toxins, including a “pretty, green ‘carpet’ of moss on some floors, ceilings and walls.” “If there is mold growing in the cells of the floor system (or even if public perception is that it is there), the building might not be insurable at an economic level,” the study says. The building’s structural steel system appears sufficient, but beams that have been regularly exposed to moisture may need to be repaired and replaced. The windows would also have to be replaced. Water is getting into the building in “significant volumes,” according to Keast & Hood Co. The brick masonry at the rear of the structure needs “considerable repair, re-pointing and cleaning.” The study says a major snow load, high wind storm or movement of the make-shift support bracing could result in a catastrophic failure of the building or integrity of the exterior façade. “The observations of local contractors and engineers further confirm these conditions to the point where concern has been expressed about the safety of anyone entering the upper portion of the building or performing any work in that area,” the study says.—“Sterling’s Fate in County’s Hands”, Times Leader, April 16, 2011

CityVest has provided detailed funding and site information to potential private developers, met with them and in one instance signed a letter of intent, the study says. “Every potential developer – including the firm that had signed the letter of intent – ultimately withdrew themselves from consideration,” the report said. All the developers who walked away from the project identified the cost of repairs as the reason, particularly when they couldn’t guarantee they could sell or rent the residential and/or commercial space at price points that would cover their expenses, the study said. —“Sterling’s Fate in County’s Hands”, Times Leader, April 16, 2011

Among the building deficiencies identified by developers:   Low ceiling height, compromised views from small windows, an inefficient layout for use as residential or hotel units, unusable space created by the large lobby and atrium, inconsistent floor elevations on the second floor, narrow elevators that don’t comply with the Americans with Disabilities Act, concern that replacement of the floors could risk structural instability of the building because of the way the floors are anchored to the building’s perimeter walls.– “Sterling’s Fate in County’s Hands”, Times Leader, April 16, 2011

The building has “physically and functionally” lost its status as a center of downtown Wilkes-Barre over the last 40 years..– “Sterling’s Fate in County’s Hands”, Times Leader, April 16, 2011

“Vacant, stripped of every item that contributed to a memorable experience, the remaining shell is cold, damp and lifeless,” said the study, which was prepared by Susquehanna Real Estate LP. “The current condition is not only poor, but also dangerous.” —“Sterling’s Fate in County’s Hands”, Times Leader, April 16, 2011

County Controller Walter Griffith told commissioners Wednesday that he is still auditing records on how the $6 million was spent, though his findings to date convince him that the county should have been more closely monitoring the project..  —“W-B building ‘emergency’ “, Times Leader, April 21, 2011

CityVest officials defended their handling of the project in a letter to citizens, saying the government funding was used to pay inherited back taxes, demolish an adjoining structure, acquire land to make the parcel larger and remove “cheap and rotting” interior walls in drop ceilings in the 113-year-old hotel. —“Sterling’s Fate in County’s Hands”, Times Leader, April 16, 2011

CityVest on Wednesday issued a statement in response that said a developer pulled out of the Sterling Hotel project in early 2010 when it was learned the $3 million was redirected. CityVest disputes the city’s claim that certain conditions were not met.—“CityVest, City Clash on $3M”, Times Leader, June 23, 2011

“Federal investigators following up on a grand jury subpoena issued last week to the Luzerne County commissioners took possession Monday of hundreds of documents chronicling the failed rehabilitation of the historic Hotel Sterling in Wilkes-Barre, officials said.”—“Feds Seize Hundreds of Hotel Sterling Documented”, Times Leader, December 7, 2011

If an agreement isn’t reached, Wilkes-Barre eventually may be forced to demolish the city-condemned structure at its expense. The city would then have to put a lien on the property in an attempt to recoup the money, though the county would also be in line with its own lien for $6 million.—“ CityVest yet to sign deal on Sterling”, Times Leader, February 9, 2012

CityVest owes the county $6 million loaned to preserve and market the structure, and the county has set aside another $1 million in community development funding for demolition. The nonprofit asked the county to take over the project last year because it’s out of money.  —“Architect wants to mothball Sterling”, Times Leader, February, 21, 2012

(Carl) Handman, who had worked on the Sterling project in 2003, has publicly criticized the building’s nonprofit owner, CityVest, for failing to heed his past recommendation to mothball the structure to prevent further deterioration. CityVest representatives have said the nonprofit relied on project manager Lincoln Property Co.’s expert opinion on what work should be completed with the limited funds allocated for the project. —“Architect wants to mothball Sterling”, Times Leader, February, 21, 2012

What did the interior of the Hotel Sterling actually look like at this point?  

See for yourself at

Hotel Sterling video: As The Vultures Picked Her Bones

A March 2011 report released by the Sterling’s nonprofit owner, CityVest, contained a $1.2 million estimate to demolish the property. The study also references a 2009 roofing company estimate of $1.4 million to redo the roof, replacing the wood framing with steel and metal. Other portions of the CityVest study say it will cost anywhere from $5 million to $7.7 million to stabilize and mothball the 114-year-old building at the corner of River and Market streets. —“Architect wants to mothball Sterling”, Times Leader, February, 21, 2012

Mothballing would involve structural work, roof repairs, window sealing and ventilation.  –“ Several Luzerne County Council members are willing to consider mothballing the landmark Hotel Sterling for potential future development, but most are leaning toward proceeding with demolition”, Times Leader, February 23, 2012

 The demolition of the Hotel Sterling began on July 25, 2013

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You can see Hotel Sterling Time Lapse Demo Video HERE

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Cheri Sundra © 2013
All Rights Reserved

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  1. So sad. 😦

    • John Adams
    • December 30th, 2013

    Mick Jagger also said (sang, in “Time Waits for No One”): “..Time Can Tear Down a Building…”

    Thank God one of thee ugliest buildings on earth is finally gone, The Sterling Hotel, a monument to hundreds of hard slaving cooks, waiters, bartenders, waitresses, & cleaning staff who were endlessly treated like garbage by rich patrons of that hotel.

    Date: Fri, 2 Aug 2013 22:46:25 +0000 To: john.adams1945@hotmail.com

  1. May 20th, 2016
    Trackback from : Kasha

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