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Lackawanna County settles inmate lawsuit

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A former Lackawanna County inmate who alleged a guard pepper-sprayed him in the genitals agreed to settle a federal lawsuit against the county and several prison guards.

Matthew Comerford, attorney for the inmate, Damian Kellogg, wrote to Senior U.S. District Judge A. Richard Caputo on Wednesday to advise him the case has been settled.

Details of the settlement were not immediately available.

Comerford filed suit in March 2017 in connection with the Sept. 24, 2016, incident involving Scott Blume.

According to the suit, Kellogg was locked inside a holding cage awaiting transfer to the prison’s restricted housing unit when Blume ordered him to change into special clothing worn by RHU inmates. Blume became angry with Kellogg, who was naked, and then choked him, pulled his hair and sprayed his genitals with pepper spray.

Blume, who no longer works at the prison, faced simple assault and harassment charges in November 2016. He pleaded guilty in July 2017 to harassment and later was sentenced to 90 days of probation.

Contact the writer:

tbesecker@timesshamrock.com;

570-348-9137;

@tmbeseckerTT on Twitter


50 years ago: Robert Kennedy speaks at campaign event in Binghamton

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March 24, 1968

Sen. Kennedy visits Binghamton

U.S. Sen. Robert Kennedy held a kickoff dinner for his New York state campaign in Binghamton, New York. About 1,300 people filled an event space that once was used by the Endicott-Johnson Corp.

Kennedy gave a speech filed with emotion and jokes. At one point he told the crowd, “George Hamilton called my house and wanted to know my daughter’s name. I knew I was getting somewhere.”

Joining Kennedy at the dinner were his adviser Theodore Sorensen and Jesse Unruh, speaker of the California State Assembly. Sorensen was the late President John F. Kennedy’s speech writer.

Ex-gov above fray

Former Gov. William Scranton told The Scranton Times that he will neither endorse nor campaign for any candidate seeking the Republican nomination for president.

Scranton, who would be a delegate at the Republican Convention in Miami in August, said he would “follow the leadership of the governor of Pennsylvania.”

He added that the Republican political picture could change if Richard Nixon “created a very tremendous blunder.”

Marywood invites LBJ, Lady Bird

Marywood College sent an invitation to President and Mrs. Lyndon Johnson to attend the formal dedication of the college’s new library May 4.

A White House spokesperson declined to say whether the president and the first lady would be attending the ceremony, citing a policy change that didn’t allow for announcement of the president’s travel plans in advance for security reasons.

BRIAN FULTON, library

manager, oversees The Times-Tribune’s expansive digital and paper archives and is an authority on local history. Contact Brian at bfulton@timesshamrock.com or

570-348-9140.

PHOTOS: Friends of the Poor St. Patrick's Day Dinner

Correction 3/24/2018

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Text incorrectly attributed

A Pennlive story published on Page B10 of Friday’s editions about Penn State University fraternity brothers charged criminally in the death of a pledge incorrectly attributed a text message presented in court last year to Gary Angelo DiBileo II of Scranton. The following text was sent to DiBileo from his roommate, Greg Rizzo: “It’s not the fact that he drank. He drank because we hazed him too. Main word being hazed.”

Clipboard

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Dickson City

Bus trip: Dickson City Lights and Decorative Banners Association bus trip to New York City, May 5, departs 8 a.m. from Municipal Building, Enterprise Street, and leaves New York City, 7 p.m. with an approximate return time of 9:30, $35; Jeff, 570-878-3373.

Dunmore

Breakfast fundraiser: Applebee’s pancake and sausage breakfast and basket raffle fundraiser, April 28, 8-10 a.m., Applebee’s Viewmont Mall, $7/adults and $4/children, proceeds benefiting Monsignor Anthony C. Marra Memorial Fund Friends of the Poor; Toni Divizio, 570-344-2388, or Mary Ann Coviello, 570-344-3737.

Midvalley

Group meets: Catholic Golden Age meeting, April 12, 5:30 p.m., 206 Grant St., Olyphant.

West Scranton

Missing classmates: The 50th reunion for the West Scranton High School class of 1968 is looking for the following classmates: Wilson Boyle, Michael Moskowski, Elizabeth Slack, William Spindler and Carole Unger, they would be born in 1949, 1950 or 1951 and be 67-69 years old; contact Ergo50@comcast.net.

CLIPBOARD ITEMS may be sent to yesdesk@timesshamrock.com or Clipboard, c/o YES!Desk, 149 Penn Ave., Scranton, PA 18503. YES!Desk, 570-348-9121.

CX-3: Fun over functionality

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Automakers have flooded the SUV/crossover zone with vehicles designed to meet the demands of almost every American driver. (And let’s face it, America is the reason these vehicles exist.)

Big or small, short or long, all-wheel or front-wheel driven, there’s a crossover out there for nearly every personal, transportational need or desire.

One of the faster-growing subsets of this segment has involved budget-minded subcompacts. Competitors here include the Honda HR-V, Buick Encore, Chevrolet Trax, Jeep Renegade, Subaru Crosstrek and this week’s tester, the Mazda CX-3.

Readers of this space might recall my fondness for the CX-3’s biggest brother, the three-row, seven-passenger CX-9, which is, for my money, the go-to choice among full-size crossovers. Suave, supple and shockingly enjoyable to drive, the CX-9 checks off all the boxes that most families will need in an all-weather hauler.

Along with the midsize CX-5, the diminutive CX-3 rounds out Mazda’s tall-wagon lineup. It rolled into the 2018 model year — its fourth — largely unchanged save for a standard low-speed emergency braking system, retuned front suspension setup that improves cornering stability and improved sound insulation.

There are three trim levels — Sport, Touring and Grand Touring — all of which come standard with a ready-to-rev 2.0-liter inline-four (146 horsepower and 146 foot-pounds of torque) connected to a six-speed automatic transmission. Front-wheel drive is standard; all-wheel drive is available as a $1,250 option on all trim levels.

Pricing starts at a proletatrian-friendly $20,110 for front-wheel-driven Sport models, and includes keyless ignition, a 7-inch touchscreen infotainment interface, 16-inch alloy wheels, Bluetooth connectivity, rearview camera, six-speaker sound system and more.

Equipment levels and prices rise up to the Grand Touring AWD, a sample of which Mazda provided for a week of doing what the Coles do best — errand-running, kid-carting and go-to-working. The still-reasonable $26,415 base price included a set of 18-inch alloys, rain-sensing wipers, leather-upholstered seating and wrapped steering wheel and shift knob, heated front seats, keyless entry, steering wheel-mounted paddle shifters, seven-speaker Bose premium sound system, satellite navigation and more.

Add to the mix options like the $1,435 Premium Package (smart cruise control, six-way power-adjustable driver’s seat with lumbar support and memory, heated steering wheel, automatic high beams, lane departure warning and traffic sign recognition), a few smaller-ticket items and delivery, and the bottom line comes in at $29,615.

Like all of Mazda’s offerings, the little CX-3 is arguably the handsomest entry in its segment. The blunt, aggressive-looking front fascia blends into an understated and sophisticated profile. The long hood and massive rear fender designs recall the new Miata. The interior is another example of Mazda’s bold design approach. A two-tone black-on-beige palette accented with wine-colored stitched inserts exudes a near-luxury vibe; an upright dash-mounted infotainment interface and auto-deploying heads-up display adds a cool, high-tech feel as well.

True to the brand’s “zoom-zoom” marketing mantra, the CX-3 offers a level of driving entertainment that small crossovers aren’t noted for. The well-balanced chassis throws itself into turns and scoots through corners with genuine gusto. The inline-four’s comparatively modest output serves up middling but still acceptable acceleration — expect 60 mph in roughly eight seconds — and is well-matched with the quick-shifting six-speed automatic. (If Mazda is listening, a turbocharged option would be nice here.)

Overall ride quality is notably quiet and smooth, especially for a small vehicle. The sport-tuned suspension splits the difference nicely between performance and comfort, although it might be a bit too tight for some drivers. The steering setup is precise and on-center, while front and rear disc brakes bring the proceedings to a stop with authority.

All that being said, the CX-3, like much of life, asks its owner to make some compromises. For all its engaging, road-carving personality, the little Mazda comes up short in back-seat accommodations (best left to the kids), smallish cargo volume (12.4 cubic feet with the split-folding rear seats up and 44.5 cubic feet with them folded) and general lack of cubbies and cupholders.

2018 Mazda CX-3 Grand Touring AWD

Vehicle type: Four-door, five-passenger subcompact all-wheel-drive crossover.

Base/as-tested prices: $26,415/$29,615.

Engine and transmission: 2.0-liter naturally aspirated inline-four, 146 horsepower, 146 foot-pounds torque; six-speed automatic.

EPA estimates: 27 mpg city, 32 mpg highway, 29 mpg combined.

The good: Another bang-up styling job by Japanese automaker Mazda; imaginatively designed and intimate cabin; rev-happy motor well-paired with six-speed automatic transmission; improved sound deadening yields smooth and quiet ride; the most nimble and fun-to-drive small crossover/sport-ute on the market; fuel-efficient and rev-happy four-cylinder engine; logical and attractive placement of instruments and controls; a fair amount of kit and style for the dollar.

The bad: Tiny back seat and smallish cargo area; front seat access a tight fit for the broader-bottomed among us (namely, me); lack of storage cubbies and cupholders; engine buzz gets annoying at high revs.

Bottom line: The diminutive CX-3 is a slam-dunk for drivers who place a premium on performance and style and can live with a comparative lack of cargo capacity.

Lackawanna County seeks to hold attorney in prison sex abuse case in contempt

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The attorney representing two women suing Lackawanna County Prison for sexual abuse violated a court order when he made statements about the case to The Times-Tribune, attorneys representing the county and prison employees say in court papers.

Attorney Michael Donohue is among three defense attorneys who recently filed a motion seeking sanctions against Scranton attorney

Matthew Comerford, arguing he should be held in contempt of court for allegedly violating Senior U.S. District Judge A. Richard Caputo’s Jan. 20 gag order.

In a reply filed this week, Comerford’s attorney, Curt Parkins, argues the statements do not violate Caputo’s order. He also questions the timing of the filing, alleging it is politically motivated.

At issue are two stories — published Feb. 15, in which Comerford comments about the Feb. 14 arrests of seven former Lackawanna County Prison guards accused of sexually abusing inmates, and March 2, in which he comments on the county’s motion to postpone the civil case until the criminal cases are resolved.

In the Feb. 15 story, Comerford said he is “concerned with the culture of silence” that allowed the abuse to continue and is quoted saying, “as you can see, it is not as simple as one bad apple.” In the March 2 story, Comerford questioned why the defendants wanted to postpone the case and asked, “What are they hiding?”

Donohue, who represents Commissioner Patrick O’Malley in his official capacity, several former commissioners and the county, claims those comments violate Caputo’s order, which forbids attorneys from “vouching for the favorable value of the evidence to their clients’ case.” He is joined in the motion by Kevin Hayes, who represents O’Malley personally, and Sean McDonough, who represents numerous prison employees. Commissioners Laureen Cummings and Jerry Notarianni are not named as defendants in the lawsuit.

Parkins argues Comerford’s comments do not violate Caputo’s order because neither of the statements vouch for the “favorable value of the evidence.” Parkins said the “culture of silence” comment relates to what the evidence will show.

“It does not comment on the strength or value of the evidence,” Parkins said.

Regarding the “what are they hiding” comment, he said it “cannot in any way (be) deemed to be an opinion on the favorable value of the evidence.”

Parkins also questions why the defendants did not file the motion immediately after the stories published. He suggests they only filed it now at the urging of O’Malley, who is seeking “political revenge” because the county’s defense of the lawsuit “is crumbling” now that criminal charges are filed, he said.

Parkins also faults the county for filing the motion given that various county officials publicly commented regarding the criminal case. Among those public statements are that the county “welcomes” the criminal probe and that officials are taking action to correct problems at the prison.

“The fact of the matter is the county continues to speak to the press on a regular basis regarding this case,” Parkins said. “At the same time, they try to silence innocent victims of sexual assault.”

The county’s motion asks Caputo to schedule a hearing to determine if Comerford’s comments violate the judge’s order. The judge will review the legal filings and issue a ruling at a later date.

Contact the writer:

tbesecker@timessharmock.com;

570-348-9137;

@tmbeseckerTT on Twitter

Charges against the seven former Lackawanna County Prison guards:

George R. Efthimiou, 50, 1121 Loomis Ave., Taylor, one count of institutional sexual assault. His preliminary hearing was rescheduled Monday to April 25, because prosecutors plan to file new charges against him.

Mark Johnson, 54, 2213 Golden Ave., Scranton, two counts each of involuntary deviate sexual intercourse and institutional sexual assault and one count each of indecent assault and harassment. His preliminary hearing is set for 11 a.m. Monday.

George T. McHale, 50, 513 Florin St., Scranton, one count of institutional sexual assault and two counts of indecent assault. His preliminary hearing is set for 11 a.m. Tuesday.

John Shnipes Jr., 42, 115 Simpson St., Archbald, a former Archbald councilman, will go to trial on six counts of involuntary deviate sexual intercourse, four counts of aggravated indecent assault, and two counts each of institutional sexual assault and harassment. His preliminary hearing was Wednesday.

Jeffrey T. Staff, 42, 459 Wyoming Ave. Apt. 4, Wyoming, will go to trial one count of institutional sexual assault after his preliminary hearing Tuesday.

Paul J. Voglino, 45, 4 Rear Orchard St., Carbondale, two counts of involuntary deviate sexual intercourse. His preliminary hearing is set for 11 a.m. April 25.

James J. Walsh, 51, 209 Mosswood Road, Roaring Brook Twp., will go to trial on four counts of involuntary deviate sexual intercourse. His preliminary hearing was Feb. 23.

Lackawanna County Court Notes

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MARRIAGE LICENSES

• Eric William Shigo and Aimee Maria Kamide, both of Dunmore.

• Jason Michael Burke, Throop, and Kara Leigh Ainey, Kingsley.

• Eduardo Charles Suarez, Archbald, and Idiannette Caraballo, Scranton.

• Adam Rivera and Keyana Shanice Walker, both of Dickson City.

ESTATES FILED

• John L. Fortuna, 501 Powell St., Taylor, letters testamentary to Margaret Fortuna, same address.

• Chester Brzostek, 104 Stelle St., Dalton, letters testamentary to Judith Brzostek, same address.

• Leonard H. Guzenski, also known as Leonard Guzenski, letters testamentary to Dennis Guzenski, 2185 Detweiler Road, Pottstown.

• Edward Schultz, 323 George St., Throop, letters of administration to Gail Schultz, same address.

• James R. Miles, 537 N. Garfield Ave., Scranton, letters testamentary to Gary Alan Miles, 1123 Myers Ave., Peckville.

PROPERTY TRANSACTIONS

• Wayne Dawes, Taylor, to Rebecca Anne Serafin, Scranton; a property at 107 W. High St., Taylor, for $79,900.

• Elizabeth McGill, Dunmore, to Brittany and David Lutz, Scranton; a property at 1716 Adams Ave., Dunmore, for $220,000.

• JoAnne Yanko, Moscow, to AEG REI LLC., Scranton; a property at 204 E. Elm St., Dunmore, for $96,000.

• WAB Properties LLC, Moscow, to Tina Cost, Scranton; a property at 338 N. Lincoln Ave., Scranton, for $30,000.

• Anne H. and James Millet, Dalton; Linda H. and William Hansen, Georgetown, Texas; Judith H. and Michael John, Toronto, Ontario, Canada; Jill F. Horwitz, Chicago, Ill., to David Bengt Nesbit, Clarks Summit; a property at 43 Hedge Row Run, Clarks Summit, for $335,000.

• Joseph and Virginia Young Silva, Lackawanna County, to Joseph and Rhonda Junikka; a property at 139 Beverly Drive, Archbald, for $247,000.

• Nicholas III and Courtney Homick, Lackawanna County, to Shane G. Dando, Lackawanna County; a property at 505 Ridge St., Blakely, for $155,000.

• Kyra Rochelle Davidson and Gerard Flynn, Lackawanna County, to Lauren Nicole Chromey, Luzerne County; a property at 421 Grace St., Old Forge, for $98,000.

• John William and Kathryn Wadika, Scranton, to Gary Aniska Jr., Scranton; a property at 548 3rd Regan Plaza, Scranton, for $90,000.

• John A. and Helene Moyles, Dickson City, to Christian J. Carbe and Dawn Elaine Floege, Scranton; a property at 642 Main St., Dickson City, for $154,000.

• Gina Cost, Clarks Summit, to James L. Guyette, Mehoopany; a property at 1818 Bundy St., Scranton, for $36,000.

• U.S. Bank National Association, as trustee for the RMAC Trust, Series 2016-CTT, Irvine, Calif., to Samuel P. Dennison II, Clarks Summit; a property at 41 Abington Gardens, South Abington Twp., for $90,000.

• Mark and Catherine Widdick, Jefferson Twp., to Evan J. Kasperowski, Jefferson Twp.; a property at 200 Willow Drive, Jefferson Twp., for $274,900.

• John P. Sanderson, executor of the estate of JoAnne Aronsohn Monahan, Olyphant, to Carl and Carol Deeley, Lomita, Calif.; a property at 711 N. Webster, Ave., Scranton, for $112,500.

ONLINE: thetimes-tribune.com/courts


Scranton man accused of child sex crimes

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A Scranton man is charged with sex crimes involving a young girl.

City police arrested James Tisdale, 41, 614 Spruce St., on Friday after detectives attended an interview with the child at the Children’s Advocacy Center of Northeastern Pennsylvania the day before. The girl, 9, told investigators Tisdale “touched her inappropriately” on her private parts several times and performed oral sex on her, according to court documents. The child said the incidents last happened about three years ago, police said.

The child also told investigators Tisdale took pictures of her with no clothes on, according to court documents. He told the girl he would “get in big trouble” if she told anyone what was happening, police said.

The Times-Tribune does not identify victims of sexual assault.

Tisdale is listed on the state Megan’s Law offender registry for a child pornography conviction. City police arrested Tisdale on that charge in June 2016. Court dockets indicate he pleaded no contest to the offense before Judge Vito P. Geroulo in February 2017. Geroulo sentenced Tisdale to 15 to 48 months in prison followed by two years of probation.

Tisdale is charged with involuntary deviate sexual intercourse with a child, sexual assault, aggravated indecent assault of a child, photographing child sex acts and related offenses. He is held in Lackawanna County Prison and will be arraigned on the charges this morning.

Contact the writer:

cover@timesshamrock.com; 570-348-9100 x5363;

@ClaytonOver on Twitter

Warden: No inmate calls made to AG sex abuse hotline before recording disabled

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SCRANTON — No Lackawanna County Prison inmates called a hotline meant for reporting prison sex abuse before officials ensured the privacy of such calls, Warden Tim Betti said.

The day after the Feb. 14 arrest of seven then-active and former county prison guards on sex charges involving female inmates, state Attorney General Josh Shapiro announced that his office had established a special hotline, 570-846-4074, for victims and witnesses to report sexual abuse at the jail. At a Feb. 21 meeting of the Lackawanna County Prison Board, a co-founder of the group Progressive Women of NEPA, Stephanie Bressler, Ph.D., asked if the prison monitored inmate calls to the number.

Reached later that day, Betti said phone systems at the prison are set up to record inmates’ calls, but the prison can prevent calls to certain numbers from being recorded. He vowed to act the next day, Feb. 22, to ensure the privacy of all hotline calls from the jail and to post the hotline number in the jail’s housing units.

At a prison board meeting Wednesday, Betti reported no inmates called the hotline in the seven days between Feb. 15, when Shapiro announced the hotline, and Feb. 22, the day Betti said he’d take steps to prevent such calls from being recorded.

“We did have the capability to record and still do have the capability to record phone calls being made out, but I also have the capability to have it set up so that it’s not recording,” Betti said, noting he made sure hotline calls from the jail are free and not recorded after Bressler raised the issue.

“I checked, and not a single call had been made from the time the hotline was set up and announced and the time I took those measures to make sure it wasn’t something we could be accused of — listening in on (calls) or anything along those lines.”

Bressler, who attended Wednesday’s meeting, said Friday that Betti’s comments raised additional questions, including how he can be sure no one called the number if calls to it are not monitored.

Also reached Friday, Betti said the prison phone system “allows us to run a check on any particular phone number” to see if it’s been called from the jail, and that the process does not necessitate listening to the calls. Betti has not checked to see if the hotline has been called from the jail since officials took the aforementioned measures, and does not plan to do so, he said.

In general, Bressler said her group’s reaction to the warden’s and prison board’s method of answering questions, like the hotline questions, is “mixed.” They appreciate officials’ efforts to answer some questions but are often frustrated by a lack of follow-up on others.

“Sometimes we see what appears to be some openness to our suggestions, and then that issue disappears unless we ask follow-up questions,” Bressler said, noting they will continue to question the board. “We see some responsiveness, but we also see many times when there isn’t follow-up.”

Beth Ann Zero, co-founder of the prisoners’ rights group NEPA Prison Advocates, expressed a similar sentiment but said she’s encouraged by the board’s apparent willingness to work with them.

“We’re going to continue to address these issues, and I feel like we are being well received and ... listened to, just some months more than others,” Zero said. “I think they are considering what we have to say ... and that is really encouraging.”

Contact the writer:

jhorvath@timesshamrock.com;

570-348-9141;

@jhorvathTT on Twitter

Lackawanna County Prison Warden Tim Betti said there were 10 “extraordinary occurrences” at the prison since last month’s prison board meeting, all of which involved combative, uncooperative or suicidal inmates being placed in a “restraint chair.”

Inmates are placed in the chair so as not to harm themselves or others, Betti said.

To ensure inmates are not in possession of potentially dangerous contraband, they are disrobed and redressed in a “suicide-proof smock” before being placed in the chair. Female guards monitor female inmates and male guards monitor male inmates during this process, Betti said.

In other business at Wednesday’s prison board meeting:

n Betti announced there were seven allegations of Prison Rape Elimination Act violations in February. Of the seven, five were “staff on inmate” in nature and two were “inmate on inmate” allegations, Betti wrote in his warden’s report.

Of the five allegations involving staff, three were unsubstantiated and two were unfounded. Of the two inmate-on-inmate allegations, one was unfounded and one was unsubstantiated, Betti wrote in the report.

All PREA violation allegations are investigated by the prison’s PREA coordinator, Mari Finlon, who conducts a review process with the warden. Regardless of the findings, the information is then sent to the Lackawanna County district attorney’s office via email, Betti said.

n Beth Ann Zero, co-founder of the prisoners’ rights group NEPA Prison Advocates, read publicly a letter she wrote opposing privatizing the jail.

Commissioner Laureen Cummings, who sits on the prison board but was absent Wednesday, wants to privatize the prison and has communicated with companies that run private prisons. In October, Cummings moved to perform a feasibility study on prison privatization, but that motion died without being seconded by another member of the prison board.

“A private prison is a business that thrives on maintaining a full bed count while reducing costs by meeting the most basic requirements, including payroll and service budgets,” Zero wrote in the letter. “There is no incentive to lower recidivism rates because that is not conducive to profit.”

n Betti again noted his desire to use funds from the inmate canteen account to re-establish a GED program at the prison at an annual cost of about $120,000. He plans to meet soon with other officials, including members of the county controller’s office, to further discuss the issue.

n Ro Hume, coordinator of the NEPA Healthcare Defenders Coalition, asked numerous questions about female inmates’ access to “necessary sanitary supplies.” Betti said female inmates have access to as many “sanitary napkins” as they need free of charge.

Contact the writer:

jhorvath@timesshamrock.com;

570-348-9141;

@jhorvathTT on Twitter

State hotline

The state attorney general’s office last month established a hotline for victims and witnesses to report incidents of sexual abuse at the Lackawanna County Prison. The number is 570-846-4074.

State to issue more medical pot permits

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About a month after the first medical marijuana products were sold in Pennsylvania, the state Department of Health is preparing to roll out the permitting process for a second round of businesses.

The health department will issue up to 13 permits to grow and process marijuana and 23 permits to dispense medical marijuana products later this year. It will make applications available April 5. Applications for both permit categories are due May 17.

The health department will issue up to three permits to dispensary applicants located in the 10-county Northeast region, which includes the Lehigh Valley, Scranton/Wilkes-Barre and Hazleton. It will issue one grower/processor permit to the highest-scoring applicant statewide, and then up to two permits in each of the six regions. So, the Northeast region could get up to three more growing and processing operations.

The Medical Marijuana Act of 2016 gave the health department permission to issue 25 grower/processor permits and 50 dispensary permits. Last June, Pennsylvania issued the first dozen grower/processor permits and 27 dispensary permits.

Unsuccessful first-round applicants still must pay full application fees for the second round — $10,000 for grower/processor permits and $5,000 for dispensary permits. Unsuccessful first-round applicants who appealed their denials can apply in the second round even if their administrative appeal remains open, health department spokeswoman April Hutcheson said.

In Northeast Pennsylvania, Pennsylvania Medical Solutions LLC received state approval in December to start growing marijuana and making it into medicine at its facility in the Green Ridge section of Scranton.

The region’s first medical marijuana dispensary, Justice Grown Pennsylvania, opened to the public in February and began selling products on March 20. The store, which is located in the Gateway Shopping Center in Edwardsville, is the only dispensary in Northeast Pennsylvania so far.

Columbia Care Pennsylvania LLC plans to open Scranton’s lone medical marijuana dispensary at the Keyser Oak Shopping Center. Columbia Care also plans to open dispensaries in Wilkes-Barre and Blakeslee.

John Collins, director of the health department’s Office of Medical Marijuana, said Thursday that nine dispensaries across the state have begun selling medical marijuana oils, vape pens, pills, tinctures and more. Another four have been deemed operational.

The health department gave the first round of permittees six months to become operational.

Applicants who received grower/processor permits last year are not eligible for additional permits, but an individual dispensary company is eligible for a maximum five permits, or 15 separate storefronts.

After receiving 10 of the 27 dispensary permits last year, the Southeast region (Philadelphia, Montgomery, Bucks, Chester, Lancaster, Berks, Delaware and Schuylkill counties) will get up to nine permits this year.

More than 25,000 patients have registered for the medical marijuana program, and about 7,000 have received a medical marijuana card after being certified as having one of 17 qualifying conditions. The state has approved nearly 500 medical practitioners to certify patients.

The health department also gave more details Thursday on its upcoming medical marijuana clinical research program.

Regulations released last Friday outline the process for an accredited medical school with an acute care hospital to become an approved “Academic Clinical Research Center” that can engage in medical marijuana-related research projects with “clinical registrants,” an entity that can grow, process and dispense medical marijuana.

Contact the writer:

awagaman@mcall.com

610-820-6764

NEPA’s Most Wanted Fugitives, 3/25/2018

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Kevin Jordan

Wanted by: Wayne County detectives.

Fugitive since: December.

Wanted for: Criminal homicide, burglary, robbery, conspiracy to commit robbery, aggravated assault and simple assault related to home invasion and beating death of Joseph Stengline Sr. on Dec. 8.

Description: Black man, 20 years old, 5 feet 8 inches tall, 135 pounds, brown hair, brown eyes.

Contact: Wayne County district attorney’s office, 570-253-4912.

Jonathon Huzzard

Wanted by: Scranton office, state Board of Probation and Parole.

Fugitive since: Jan. 16.

Wanted for: Robbery. Sentenced to three to 10 years of incarceration. Paroled Jan. 24, 2017.

Description: White man, 27 years old, 5 feet 10 inches tall, 180 pounds, brown hair, blue eyes.

Contact: Agent Brian Rikli, 570-614-7287 or 800-932-4857.

Leann Richards

Wanted by: Scranton office, state Board of Probation and Parole.

Fugitive since: July 28.

Wanted for: Criminal conspiracy to deliver a controlled substance, criminal conspiracy to engage in drug manufacturing or possession with intent to distribute. Sentenced to one year, one month, 15 days to three years of incarceration. Paroled April 18.

Description: White female, 38 years old, 5 feet 4 inches tall, 210 pounds, brown hair, brown eyes.

Contact: Agent Jennifer Kristyniak, 570-963-4272 or 800-932-4857.

Joseph Black

Wanted by: Scranton office, state Board of Probation and Parole.

Fugitive since: Jan. 24.

Wanted for: Possession of a controlled substance with intent to distribute; driving under the influence. Paroled Dec. 4.

Description: White man, 39 years old, 5 feet 10 inches tall, 185 pounds, brown hair, hazel eyes.

Contact: Agent Joseph Harte, 570-614-7247 or 800-932-4857.

Kevin Williams

Wanted by: Scranton office, state Board of Probation and Parole.

Fugitive since: Jan. 12.

Wanted for: Theft of movable property and criminal trespass. Sentenced to one year, three months to two years, six months of incarceration. Paroled Jan. 17, 2017.

Description: White man, 29 years old, 5 feet 11 inches tall, 165 pounds, brown hair, blue eyes.

Contact: Agent Sean Graham, 570-614-7283 or 800-932-4857.

Area malls embrace different strategies to drive shoppers, diners

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SCRANTON — Malls and shopping centers across the country have shuttered in recent years amid a changing retail market marked by a steady spike in online shopping, forcing those that survive to embrace different strategies to drive business.

A 2017 Credit Suisse report predicts 20 to 25 percent of American malls will close by 2022, and that 35 percent of apparel sales — an important industry for malls — will be conducted online by 2030, up from just 17 percent in 2017. In light of changing consumer habits, many malls are moving away from traditional retail-based business models, focusing instead on attracting entertainment and attraction-based tenants that give patrons new reasons to come through the doors.

Others are sticking with the retail approach, but branching out when it comes to the brands and companies they court — bringing on board popular national and international retailers that haven’t traditionally been mall-based.

Both strategies have been embraced in the Electric City, where management at the Viewmont Mall and the Marketplace at Steamtown have made big changes in the past few years.

More than retail

“Consumers don’t really see a distinction between offline and online shopping anymore ... so we have to create something better for them to enhance their experiences as well,” said John Basalyga, who bought, in 2015, the then-failing Steamtown Mall for more than $5.5 million, and, not sure at the time exactly what the space would become, changed the name to the Marketplace at Steamtown. “I thought I needed a name that could take on anything and kind of work for anything. ... I didn’t want to be locked in.”

Less than three years later, the former struggling retail hub now houses a 5,000-member gym, Crunch Fitness, a Luzerne County Community College satellite campus and a movie theater/restaurant/bar hybrid, the Iron Horse Movie Bistro, that’s temporarily closed while mall officials search for a new operator. The Scranton Public Market, an open market styled after Philadelphia’s Reading Terminal Market, is open and growing. An aquarium and reptile house and a Delta Medix medical facility are in the works.

“Our portfolio is different,” said Basalyga, noting he invested around $10 million to $12 million in the Marketplace and never doubted his investment would bear fruit. “I would be afraid if I had just retail here to be honest. I think banks would be afraid if we just had retail here. It’s other stuff. It’s going to work.”

C. Britt Beemer, chairman and founder of America’s Research Group, a retail consulting and research firm based in Charleston, South Carolina, said bringing in nonretail attractions and tenants is a sound approach for malls.

“I think malls have got to realize that department stores are no longer the anchor that they can rely upon, because they too are losing shoppers at almost the same rate as malls are,” Beemer said, noting many malls are embracing the business model of “lifestyle centers” by offering a mix of retail shopping, dining and entertainment and leisure activities.

“If you look at the success of the lifestyle centers in the country ... entertainment was more important than shopping,” he said. “So the shopping center became a function of restaurants, became a function of movie theaters. ... It was much more entertainment driven, and that’s still a very successful strategy.”

In Scranton, it was Basalyga’s vision for the Marketplace that attracted Basilico’s Pizzeria & Restaurant to its new home on the second floor, owner Peter Montana said.

“Everybody feeds off each other,” said Montana, who is adding a dining room to the restaurant. “If you have Delta Medix or you have the aquarium, it’s foot traffic. These people are going to be here every day, so they are going to want to eat every day.”

Basalyga agreed that having a diverse tenant base helps mall businesses.

“With unity here, it’s growth and it’s strength,” he said. “(The Scranton Public Market) is basically an anchor now. Crunch is an anchor. Delta is an anchor. I have a lot of anchors where we only had one (Boscov’s) before.”

Different retail

The Viewmont Mall in Scranton and Dickson City and the Wyoming Valley Mall in Wilkes-Barre Twp. — both owned by the Pennsylvania Real Estate Investment Trust, or PREIT — also embrace the philosophy that malls should be destinations, not just shopping centers.

“We are seeing and we believe more now than ever ... that folks want to come in and have a variety of experiences when they come to the mall, whether it be dining, shopping (or) entertainment,” said Tim McGrath, general manager of the Viewmont Mall. “There’s a lot of opportunities for people to go elsewhere. If you give them that opportunity, they will.”

Whereas the Marketplace focused more on attracting nonretail tenants, the Viewmont and Wyoming Valley malls added major retail stores that are either new to the area or haven’t traditionally been mall-based — such as H&M at Wyoming Valley and Dick’s Sporting Goods, Field & Stream and HomeGoods at Viewmont.

“Those are traditional big-box stores,” McGrath said of the new Viewmont anchors, noting many saw such stores as “signalers” of the downfall of malls. “In fact, stand-alones, they’re finding out that it’s more important to be part of a bigger community. They need to, as much as we want to, have our customer have multiple experiences. It allows their customer to have the same.”

Amanda Hoprich, marketing director at both the Wyoming Valley and Viewmont malls, said the relationship between the malls and those stores is one of symbiosis.

If an anchor like Dick’s is looking to attract a different kind of customer — one that shops at stores like Forever 21, for example — the layout of a mall is conducive to cross-shopping, she said.

“So they benefit. We benefit. It’s an extremely wonderful partnership,” Hoprich said.

Experts agree that embracing such brands can be a solid approach for malls.

“I do think getting successful retailers who traditionally have not been mall-based but have a very large shopper base ... is a good strategy if you can get them to move into a mall, as long as they’ve got that external entrance so that customers can come and go,” Beemer said, noting such entrances should incorporate the architectural styles customers are used to seeing at the big-box versions of the stores. “Forty percent of your entire marketing image is the external appearance of your building. ... You have to have consistency.

Based on anecdotal observations, Hoprich said mall attendance shot up “right out of the gate” after Viewmont added Dick’s, Field & Stream and HomeGoods, whose outfacing entrances do reflect the stores’ traditional architectural aesthetic. Based on the reports of tenants, McGrath said Viewmont saw about a 16 percent increase in sales mall-wide during and since the holiday season.

“We very much reflect the national economy, where maybe traffic isn’t as robust in retail as it used to be, but your sales are higher,” McGrath said.

Mall failure

The former Schuylkill Mall in Frackville wasn’t able to adapt.

According to a report in Allentown’s Morning Call newspaper, exterior demolition of the mall started in February, and is expected to finish up in June. Two industrial buildings are planned for the site, one about 360,000 square feet and another about 890,000 square feet.

The demolition of the former mall, built in 1980, is the last step in its history.

A 2017 Morning Call report found only 15 shops still open inside the 726,000-square-foot enclosed mall, designed to host more than 100 retailers. The Bon-Ton joined previous anchors Kmart and Sears in closing shop. All the smaller stores followed suit.

“It’s unfortunate about the mall,” Schuylkill County commissioners Chairman George F. Halcovage Jr. told the newspaper.

However, with the plans for the property, more jobs can come to the county, he said.

“We have some good places to still shop,” he said, such as Kohl’s and the Coal Creek Commerce Center.

NorthPoint New Castle LLC, Riverside, Missouri, owns the property, which it bought for $2.1 million in a bankruptcy auction last year. The demise of the mall was announced in May. Some stores relocated, while others have yet to reopen elsewhere in the county, according to the Morning Call report.

Contact the writer:

jhorvath@timesshamrock.com; 570-348-9141;

@jhorvathTT on Twitter

Downtown Scranton retail climate, shops on upswing

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SCRANTON — After collecting kitschy, vintage items at flea markets and yard sales for over 20 years, Jamie Constantine opened a shop downtown.

She and other business owners see downtown on an upswing. New apartment dwellers fill redeveloped buildings. A vibrant arts-and-culture community brims with activity. Shops, galleries and service businesses have moved into storefronts and renovated spaces. The Marketplace at Steamtown’s ongoing transformation holds enormous promise.

Constantine, a financial software consultant who works from home in Clarks Summit, wanted in on the downtown revival. Over two years ago, she became a vendor at On&On, a store formerly at 518 Lackawanna Ave. that featured repurposed, vintage and handmade goods.

Last year, On&On moved on to 1138 Capouse Ave. Constantine saw an opportunity. In October, she opened the Velvet Elvis — a “vintage and kitschy paradise” — at 523 Bogart Court. The quirky brick alley behind the 500 block of Lackawanna Avenue is part of the city’s Renaissance 500 redevelopment.

“This is not a moneymaker,” Constantine said of the Velvet Elvis. “But every part of me wanted to be downtown, to be a part of this, Bogart Court. I could not have asked for anything more.”

Constantine, 39, said it was time for her to chase a dream.

“You get a little bit older, you say, ‘What is it that you want?’ Go after your dream,” she said. “This is my dream, not the computer stuff.”

‘Becoming more vital’

Downtowns have ups and downs. Churn and turnover are inevitable. While some businesses may thrive and become fixtures, others may relocate or not survive.

Noreen Blewitt, co-owner of Trinity Studio & Gallery at 511 Bogart Court, also sees growth ahead.

“There’s a lot going on in Scranton now,” she said. “I think the whole art community is really growing, the downtown is becoming more vital, the Marketplace at Steamtown — there’s just a lot going on.”

Aptly named, her Trinity studio is a combination of Blewitt, a painter, her daughter, photographer Jennifer Blewitt, and Noreen’s sister, Maryclaire Jordan, a sculptor and creator of art jewelry.

Joining forces in one studio “is just something we always wanted to do. This is something we thought would be great for us,” said Noreen Blewitt, of Clarks Summit. “We were all working independently. We thought getting downtown would be more visibility.”

High visibility was key for Carrie Thorne in choosing a corner storefront at 546 Spruce St. at Adams Avenue as the spot for her makeup/skin care boutique. She opened the Beauty Mark in September.

“I was looking for the right space in a populated area and I came across this space, which was perfect because of the windows for my particular boutique,” Thorne said. “We do makeup and skin care, so we need a lot of lighting and it just fit in with the aesthetics.”

A native of Harveys Lake who owned makeup/skin care businesses in Scottsdale, Arizona, Thorne returned to Northeast Pennsylvania two years ago and lives in Clarks Summit. She also sees many positives downtown.

“With the revitalization of downtown and everything that’s going on and how exciting it is, I had to jump on it and be a part of the community,” Thorne said.

She also has found kindred spirits in nearby women-owned shops.

“We’re neighbors. It’s almost like a family. We want to help each other, and help each other grow,” Thorne said. “I’m very optimistic, I can’t wait to see where it is going to be a year from now.”

‘A bit of everything’

A year ago, part of the 300 block of Penn Avenue looked much different. A renovation of an old building there led to mental health counselor Amanda Gentile’s opening of the Giving Tree Wellness Center at 311 Penn Ave.

A Moscow resident, Gentile says her shop provides a holistic approach to wellness. Patrons can do float therapy or art therapy, get counseling or a massage and buy a cup of coffee, clothing or gifts.

“I wanted to offer a place with a little bit of everything, including retail. I just thought it would be great to offer a wellness center down here because there’s such need,” Gentile said. “Everybody seems pretty open to what we have to offer. We’ve had repeating customers. I’m going to expand, so I’m pretty optimistic.”

Tammy Pilger opened Tammy’s Stained Glass Treasures in the 300 block of Adams Avenue in November 2016. She offers classes in creating stained and fused glass and sells her work.

Pilger started out in the basement of her South Scranton home and soon needed more room. She opened a small classroom in a gallery in Pittston in March 2016, and “within six months I had 35 students and needed somewhere else to be.” Occupying 348 Adams Ave., Pilger’s shop reflects, and meshes with, growing interest in arts and crafts.

“It’s just like a cool new hobby,” Pilger said. “There’s nobody anywhere near here that does glass anymore, so we’re kind of a very unique venture.”

Stephanie Sebastianelli was a buyer for Century 21 Department Stores in New York City and noticed there were no men’s clothing stores in downtown Scranton. So, in 2013 the Dunmore resident opened Burlap & Bourbon at 530 Spruce St.

Patrons of the downtown have been receptive to “shop small, buy local” campaigns, Sebastianelli said.

“I think people are focusing more on buying locally. I have customers who are very adamant about shopping local,” she said.

Downtown businesses also support each other, including by referring customers to nearby shops, she said.

“It’s all about supporting downtown and there’s something for everyone. We all play off one another,” Sebastianelli said.

So far, so good

Fellow Dunmorean Justin Amendolaro opened a gift shop in 2012 in the 400 block of Spruce Street.

“I heard good things are coming about the downtown back in 2012,” Amendolaro said.

So far, so good, he said. In an expansion last year, he moved the shop next door, into 412 Spruce St. A year earlier, in 2016, he opened Scranton Mattress Co. at 428 Spruce St., in response to the growing number of people living downtown.

“That’s why I opened the mattress store downtown,” he said. “There’s nothing like it downtown and there’s a lot of people living downtown now. We’ve done a lot of business with people living downtown.”

Kathi Whitney Davis, the new owner of Over the Moon bridal and baby registry shop at 123 N. Washington Ave., agreed that community support for the downtown is strong. Events, including the popular First Fridays, bring in hundreds of people.

“The people from here are concerned about local businesses and very supportive of local businesses,” said Davis, who grew up in Scranton and now lives in West Pittston.

She bought Over the Moon last year. Davis had fallen in love with the shop at first sight, after her son and his fiancee were the first couple to register there when it opened in 2012 under the prior owner. When the shop became available, Davis did not hesitate to buy it.

Students from the University of Scranton, other colleges and schools were part of a younger demographic sought by Nadine Bryant in 2011, when she opened Freedlove, a “fashionably Bohemian clothing and accessories” store, at 532 Spruce St.

A Honesdale resident, Bryant first opened a store there in 2009-11. She opened a second location in 2011 in Scranton to tap into a larger population and students from colleges and schools.

“We’re very happy to be here. Everyone in this area is so supportive and so great,” Bryant said.

Lauren Woodard was a manager at Lavish Body & Home at 600 Linden St. for six years before she and her husband, Micah, bought the upscale shop and salon four years ago. While she’s seen the retail sector have ups and downs, including the recession a decade ago, Woodard is bullish on the downtown.

“I believe not just in the business, but also in downtown Scranton,” she said. “In the past couple of years, we’ve seen retail increasing. I think that you’re seeing a lot of small businesses really catch on to the vibe and the flow of Scranton. When it comes to Scranton, it’s the right place and the right time.”

Contact the writer:

jlockwood@timesshamrock.com;

570-348-9100 x5185;

@jlockwoodTT on Twitter

Local History: Court case led to Polish National Catholic Church name

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The group of Scranton faithful raised the money for a church and hand-picked their priest, but it took decades before they could officially call themselves Catholic.

Friction between Polish immigrants and the Scranton Diocese built for years as the 19th century came to a close. A group of parishioners in South Scranton began raising money in late 1896 to buy land and build the church they called St. Stanislaus. They asked Polish-born Francis Hodur, who had been ordained in Scranton in 1893, to head their fledgling denomination.

He agreed and celebrated the new denomination’s first Mass on March 20, 1897; St. Stanislaus was dedicated less than four months later.

Scranton’s bishop refused to bless the new church, according to a history of St. Stanislaus on the church’s website. In 1898, Hodur was excommunicated. He burned the excommunication papers and threw the ashes in a nearby brook, according to history compiled by the Polish National Catholic Church.

Despite the lack of support locally, Polish immigrants elsewhere in the country were also breaking away from the Roman Catholic church. In September 1904, 13 parishes from around the country attended the denomination’s first synod, which was organized in Scranton.

In addition to unanimously electing Hodur as their bishop, they adopted a church constitution and set up a newspaper called Straz, according to a history compiled by the church. In 1905, the Polish National Catholic Church and Hodur founded Scranton’s Savonarola Theological Seminary. The seminary at the corner of Cedar Avenue and East Elm Street remains operational, though there are currently no full-time students.

As more and more people joined St. Stanislaus, it became necessary to enlarge the church in 1906, according to a July 2, 1966, Scranton Times article about the church’s history, “and in 1925, the present edifice was constructed at a cost of $115,000.”

‘Fraud and deception’

The name of the new denomination and its churches remained a topic of debate for decades. In 1903, St. Stanislaus was barred from using the word Catholic in its name, thanks to opposition from the Scranton Diocese. Its official name became St. Stanislaus Polish National Reformed Church of Scranton.

Other branches of the church started in Scranton had trouble putting “Catholic” in their name, too.

In 1923, Hodur found himself testifying in a Wilkes-Barre courtroom. The case centered on whether St. John the Baptist Polish National Catholic Church in Hazleton, “founded by priests under the authority of” Hodur, could use the word “Catholic” in its name.

Diocese of Scranton Bishop M.J. Hoban argued the words “Catholic” and “National” “would lead to fraud and deception on people who might believe it was a Catholic church under the jurisdiction of Rome,” The Scranton Times reported on July 24, 1923.

Hodur argued that “the word Catholic” had been used “as designating all Christians since the year A.D. 110 and that the Catholic Church in Poland was known as the National church in that country,” the same article said.

That August, Judge Henry Amzi Fuller refused to grant a charter to St. John the Baptist. His decision cited a 1916 case involving the Polish National Catholic Church of Dupont, which was barred from using National or Catholic in its name. Part of that ruling read, “the phrase ‘Catholic Church’ has come to signify the Roman Catholic church in communion with the pope as its visible head,” according to an Aug. 8, 1923, Scranton Times article.

‘No interest to us’

For decades, St. Stanislaus and other Polish Catholic churches here and elsewhere could not use the word “Catholic” as part of their official names. That changed for the South Scranton church in 1968, when attorney A.C.F. Kenwoski asked the court to rule on an amendment to St. Stanislaus’ charter.

“The trustees of St. Stanislaus Parish agreed in May to seek a change in the name to St. Stanislaus Polish National Catholic Church,” a July 30, 1968, Scranton Times article said. “The amendment also would revise the method of electing members of the board of trustees and would remove a $10,000 limit on annual parish income.”

Surprisingly, leaders of the Scranton Diocese said they would not oppose the name change.

“The Rt. Rev. Joseph A. Madden, chancellor of the Scranton Diocese, said the matter ‘is of no interest to us,’” the Times article reported. “The decision was regarded as another major breakthrough in the ecumenical mood which has helped to ease the tensions between the Roman Catholic Church and those Polish National parishes which had their origin in a religious fight in this city around the turn of the century.”

These days, the Polish National Catholic Church boasts 25,000 members across the country. The Most Rev. Anthony Mikovsky was named Prime Bishop of the church since 2010; he was ordained in Scranton in 1997 and served at St. Stanislaus ever since. To read more about the history of the church and its activities today, visit www.pncc.org.

ERIN L. NISSLEY is an assistant metro editor at The Times-Tribune. She has lived in the area for more than a decade.

Contact the writer:

localhistory@timesshamrock.com;

570-348-9138


Common business service eludes state's new cannabis industry

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A function most businesses take for granted still shackles medical marijuana producers and dispensaries.

The hazy banking climate for Pennsylvania’s blazing new industry so far has kept major financial institutions out of the game and leaves most operators to find creative ways to manage revenue.

“There’s 15,000 licensees across the country,” said Nathaniel Gurien, a New York City-based financial consultant whose firm, FinCann, helps medical marijuana companies get legitimate banking services. “About 1,000 of them have real, legitimate, transparent, compliant bank accounts that they have a very high level of confidence that they’re not going to get closed.”

The U.S. Treasury’s Financial Crimes Enforcement Network, or FinCEN, in 2014 published guidance that encourages banks to work with companies in and around legal marijuana. Regardless, nearly all banks steer clear of it.

“Banking remains a challenge throughout the cannabis industry not only in Pennsylvania but beyond because of the conflict between federal and state law,” said Ari Hoffnung, chief operating officer with Pennsylvania Medical Solutions. The company owns a growing and production facility in Scranton and has access to banking, Hoffnung confirmed but declined to go into further detail.

The U.S. Drug Enforcement Administration still considers marijuana a Schedule I drug with no medical application and a high potential for abuse, so the federal government can still take enforcement action.

Beyond that, FinCEN’s guidance is not the law, and Hoffnung said pending legislation would make the process much simpler.

“Guidance can be changed at any time. That’s why the larger players — JPMorgan Chase, Citibank and Wells Fargo — don’t provide financial services to cannabis companies,” he said. “We believe that the solution for this challenge lies in congressional legislation.”

He hopes that a bill introduced last year in the U.S. House of Representatives will unlock the doors by protecting banks that service legitimate cannabis businesses.

Pennsylvania Rep. Ryan Costello, R-6, Chester County, is a co-sponsor on House Bill 2215. He believes regulators shouldn’t impede community banks that want to lend to legal medical marijuana, he said.

“Passing this bill will provide the certainty and clarity needed so that community banks and other financial institutions can provide the credit and capital needed to build and grow this business model,” he said in a written statement to the Sunday Times last week.

It’s unclear whether President Donald Trump would sign such a bill if it reached the White House. His administration has taken a rigid stance on marijuana, including for medicinal purposes.

Federal regulators, on the other hand, enthusiastically want to see banks open up to cannabis, Gurien said.

“What they’re gravely concerned about is billions of dollars in untracked cash flooding into communities.” he said. “It just creates a very dangerous and disorderly situation. The federal government is keenly aware of that and doing everything it can.”

But more than shaky rules, the stigma around medical marijuana, now legal and regulated in 30 states, still ekes in to the business world, and banks aren’t likely to open up until the DEA cuts it out of the drug schedule, Gurien said.

So for now, most licensed companies operate in a gray area, though he seemed hopeful for change soon.

“I believe that 2018 will be the year that this industry will no longer have issues with banking or merchant processes,” Gurien said.

Abbe Kruger began selling cannabis products at her Edwardsville shop only on Tuesday. The chief executive officer of Justice Grown Pennsylvania has already collected stories of suffering patients, including some with Parkinson’s disease and autism, yearning to calm their symptoms.

“Some of it’s heart-wrenching; some of it’s heartwarming,” she said. “There’s some really sick people out there, and it’s very rewarding to be able to give some alternative that they haven’t had up until now.”

For now, the industry remains almost entirely cash-based, though it’s no Scrooge McDuck, swimming-in-the-vault, scenario.

“I don’t want people, obviously, thinking that there’s this crazy stockpile of cash in my facility,” Kruger said. “We do have banking. We are able to bank. We just can’t use credit cards.”

Contact the writer:

joconnell@timesshamrock.com; 570-348-9131;

@jon_oc on Twitter

Luxuray retailers a nice niche

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Some luxury retailers throughout the region have been successful in targeting high-end shoppers for decades and keeping them coming back.

They include Van Scoy Diamond Mine, that has been in business for more than 70 years.

The family-owned business sells diamonds in all shapes and sizes and is known for its radio commercials.

Wayne Van Scoy, 56, owner and president of Van Scoy Diamond Mine on Mundy Street in Wilkes-Barre Twp., said he typically targets male shoppers to buy engagement rings.

“We have all price ranges for them,” he said.

Van Scoy started in the business when he was 12 years old and took it over in 1995.

He is the son of the late Tommy Van Scoy, who once owned 49 diamond jewelry stores throughout the East Coast but sold most of them and retired. The remaining stores are in Wilkes-Barre Twp., Lancaster and North Carolina.

Van Scoy said what brings shoppers into the Wilkes-Barre Twp. store is the “reputation we have, the service that we provide, the selection we provide and the price.”

While some mid-level department stores have been closing, Van Scoy said his luxury business is doing well because of service and price.

“People shop online and think they’re getting a great deal and they’re not really,” he said. “White gold should be polished and rhodium dipped and we do that, all at no charge. The ring gets cleaned, checked, polished and rhodium dipped and there is never a charge.”

Van Scoy expects luxury retailers like his business will reap benefits from tax reform with consumers having more money in their pockets and spending more.

He saw an increase in business last year and expects to continue to see a growth in sales, especially with an improving economy and the stock market hitting a record high earlier this year.

Boccardo sells

prestigious watches

Another luxury retailer in the region, Boccardo Jewelers in Scranton, is associated with some of the world’s most prestigious watch brands such as Breitling and TAG Heuer.

Alex Boccardo, third generation owner of the family business at 201 Jefferson Ave., said millennials have become interested in wearing prestigious watches like their grandfathers and fathers wore.

Boccardo Jewelers targets customers through its website and social media like Instagram and Facebook as well as billboards, he said.

The luxury retailer also sells diamond engagement rings, earrings, bracelets and other jewelry and offers repair services.

Boccardo said they keep customers coming back through their customer service and how they treat people.

“We’re a family-owned business and we treat customers like family,” he said.

His grandfather, Sandy Boccardo, started in the jewelry business in 1938.

He eventually opened a jewelry repair trade shop and, in the late 1960s, he opened his first retail jewelry store on Washington Avenue. After being joined by his two sons, James and Tony, the Boccardo family purchased a building on Spruce Street and stayed there until 2007.

In January 2008, the family purchased its free-standing present location and continues its tradition in its third generation.

Boccardo said he finds the economy is improving and luxury businesses like his family’s continue to do well because customers want to buy something they want, not just what they need.

In the future, he expects his business will benefit from tax reform since consumers have more money.

Matterns offers

exclusive brand gifts

Matterns in Kingston targets high-end shoppers through exclusive brand gifts, like Magnolia Home candles, that aren’t available other places, said owner Michelle Valentino.

“We are actually the only retailer in the area that is able to carry them so I think exclusivity plays a factor,” she said. “We find a brand that we know works and is of the highest quality and we will stick with that. We always try to carry something that’s different but also is a style that customers who have been coming for years will enjoy.”

Matterns, an upscale flower and gift shop, has been in business for 110 years.

Michelle and Nick Valentino of Lake Ariel recently purchased the shop at 447 Market St. in Kingston from third-generation owners Tom and Maria Mattern and expanded the business.

Matterns’ overall customer service and changing up the shop frequently are ways Valentino said they bring people in and keep them coming back.

“When you’re coming here, you’re getting an experience,” she said. “Not many places put things in pretty gift bags or wrap it up for you so that’s an added benefit of shopping here.”

Matterns has been able to hold its ground in the retail market by rebranding and working on offering an online retail site, Valentino said.

“We’ve been doing a lot more social media marketing,” she said. “We also have an open house once a year which I think is huge. It’s nice because of it’s more of a community gathering to bring people in. We get to develop personal relationships with people. They’re here having a good time, eating snacks and shopping.”

Heather Hospodar, floral manager at Matterns, said when people shop online, there is no personal service.

At Matterns, people could “actually come in and touch and feel and smell and

experience the senses,” she said.

“We have people who come in here just to be happy,” Valentino said. “They need a mood lifter. To boost their spirits, they will just come in and just walk around.”

Tax reform expected to increase demand for luxury goods

Local chamber officials also expect the demand for luxury goods will increase as people’s income rises thanks to tax reform.

Bob Durkin, president and chief executive officer of the Greater Scranton Chamber of Commerce, said tax reform and an improving economy will benefit all retailers, including luxury retailers.

Since consumers have some extra money in their pockets, he expects the region will see an uptick in retail across the board.

People who might not have bought high-end jewelry, other luxury items or something a little different in the past may decide that now is the time to do it, he said.

“Personal spending has been way up,” Durkin said.

Wico Van Genderen, president and CEO of the Greater Wilkes-Barre Chamber of Commerce, said luxury markets do well when the economy does well and people have more discretionary income to spend.

“Tax reform by its very nature means more discretionary spend by consumers who take that extra increase to purchase that luxury item,” Van Genderen said. “For businesses, it means taking that tax break to channeling it into investments, labor and shareholders, meaning more money cycled into the economy and ultimately into some of those life luxuries.”

While retail as a whole continues to move to online shoppers, Van Genderen said this is not necessarily the case with luxury brands where the shopping experience is as important as buying the product.

“The luxury purchase is as much in going to the brick and mortar luxury retailer for the service, the experience and the product,” he said.

Van Genderen added that the travel and tourism sector drives a large chunk of luxury purchases as consumers make luxury purchases when they travel, especially in airports, in stores catering specifically to high-end purchasers and in places associated with luxury.

“Luxury buying is more like an event where the buying experience is in the moment of the purchase as well as the purchase itself,” he said.

Locally, Van Generen said luxury buying is also an event whether it’s buying a high-end automobile or going to destination points like Jim Thorpe, Mohegan Sun Pocono, Montage or the Crossings that cater to that experience and the service along with the products.

Dr. Satyajit Ghosh, professor of economics and finance at the University of Scranton, also believes tax reform will help luxury retailers.

The tax cuts are structured in a way that they will benefit upper income people who typically shop at luxury retailers, he said.

“The outlook for the luxury retailers is pretty strong,” Ghosh said.

Contact the writer: dallabaugh@citizensvoice.com, 570-821-2115, @CVAllabaugh

People on the Move

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Admar Construction Equipment & Supplies

Tim Morris, Clarks Summit, was hired as branch manager of the Wilkes-Barre office. In his new role, Morris will lead the branch team and oversee the office’s daily operations and activities. He will also ensure proper implementation of Admar policies and procedures to maintain a well-functioning office and a true team environment. He joins the team from Lindsey Equipment, a John Deere Dealership, where he served as manager for the past six years.

Geisinger

Kevin V. Roberts, MBA, CPA, was named executive vice president and chief financial officer. Roberts will oversee all financial activities of the integrated health care delivery system and will serve on the executive leadership team. He previously served as senior vice president and chief financial officer at BJC HealthCare, St. Louis, Missouri, a 15-hospital health system that includes Barnes-Jewish Hospital and St. Louis Children’s Hospital and its academic partner, Washington University School of Medicine.

Jaewon Ryu, M.D., J.D., has been recognized by Modern Healthcare as one of 2018’s Minority Executives to Watch in Healthcare. The biennial program recognizes the Ten to Watch honorees and this year’s Top 25 Minority Executives in Healthcare for influencing policy and care delivery models across the country while highlighting the continued need to nurture diversity in their organizations. Ryu was named executive vice president and chief medical officer in 2016. He previously served as president of integrated care delivery at Humana.

Murphy, Dougherty & Company

Leah C. Rosenkrans, CPA, a resident of Scott Twp., has been admitted as a partner in the Moscow accounting firm. She joined the firm in 2007 and had previously worked in public accounting as well as being an auditor with the Commonwealth of Pennsylvania. Rosenkrans has extensive experience in auditing and attestation, taxation, accounting and consulting with a diverse group of clients in the governmental, health care, not-for-profit and closely held business industries.

Penn State

University

Matt Pettinato, Clarks Summit, has been inducted into the Sheetz Fellowship at the university’s Altoona campus at an induction ceremony on Feb. 17. Sheetz Fellows have reached the highest honor of the campus Entrepreneurial Studies Program. Fellows have met an established academic standard, completed a rigorous business course background, received ethics training, performed a minimum of 80 hours of community service and will experience a study abroad program.

Selingo Guagliardo LLC

Retired Judge Joseph Cosgrove joined the Kingston firm as a partner in January. Cosgrove is a retired judge of Commonwealth Court and the Court of Common Pleas. His practice areas include appellate, including briefs and oral argument; trial court, personal injury, including medical malpractice, motor vehicle accidents, premises liability and bad faith.

University

of Scranton

Thomas MacKinnon was named vice president for university advancement, effective March 19. MacKinnon currently serves as vice president for university advancement at Wilkes University, overseeing their development, alumni and marketing communications efforts.

Sandra Pesavento, Ph.D., faculty specialist in the education department, received the Diane Place Doctoral Dissertation Award at Wilkes University’s School of Education fourth annual Celebration of Education event. The award honors a Wilkes graduate student who exhibits perseverance in completing doctoral studies, commitment to lifelong learning, resilience in the face of adversity, strength of character to advance in life through education, collegiality with peers, leadership in education and excellence in academics. Previously, she taught in the Scranton School District and served as educational technologist in the Dallas School District.

Director of Athletics Dave Martin, a resident of Dunmore, has been named a 2017-18 recipient of the National Association of Collegiate Directors of Athletics Under Armour Athletic Director of the Year Award. The Under Armour AD of the Year Awards program was created to honor intercollegiate directors of athletics for their commitment and administrative excellence within a campus and/or college community environment over the course of the last year.

Wayne Memorial Hospital

Carol Kneier, MS, RD, LDN, CDE, a resident of Wayne County, has been named community health manager. Kneier has been a registered dietitian and certified diabetes educator with the hospital since 1993.

SUBMIT PEOPLE ON THE MOVE items to business@timesshamrock.com or The Times-Tribune, 149 Penn Ave., Scranton, PA 18503.

Virtual reality lets you try before you buy

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Thanks to augmented and virtual reality, shoppers can check out how furniture looks in their houses from the comfort of home.

IKEA and Target are among international companies utilizing the technology. Locally, virtual and augmented reality are also making an imprint, though not so much from a retail standpoint.

VR Guest, a Wilkes-Barre-based virtual reality startup, offers services to include creating virtual 360-degree tours of the inside of buildings. The University of Scranton used an augmented reality tool as part of a recruitment and marketing campaign in fall 2014, said Lori Nidoh, director of marketing communications at the university.

“The whole virtual reality thing is catching on,” said Brad Wells, owner and proprietor of VR Guest.

Some projects his company is working on involve shooting images from inside a building undergoing renovations and also homes for sale, Wells said.

“That’s what companies like IKEA are trying to do, to transport you to their showrooms to see their goods and make a selection,” he said.

In September 2017, IKEA launched IKEA Place, an augmented reality application that lets people confidently experience, experiment and share how good design transforms any space, such as a home, office, school or studio, IKEA spokeswoman Haley Mayer said in an email. IKEA is one of the first home furnishing companies in the world to bring augmented reality technology to people, shifting the way furniture is purchased in the future, Haley said.

Designers built the app using Apple’s ARKit technology and it’s available for use on Apple’s iOS 11 operating system. Potential customers use their iPhone’s camera to place and shift furniture in whatever room they happen to be in, all in real time. All of the products in IKEA Place, from tables to chairs to couches, are 3-D and true to scale so customers can make sure they choose just the right size, design and functionality for any room, Haley said.

“IKEA Place lets you confidently experience, experiment and share how good design transforms your space. Many people are uncertain about changing their home furnishings because they’re afraid of making the wrong decision, or worse, they return a piece they loved in a store because it simply doesn’t fit in their space,” Haley said. “IKEA Place gives them the confidence that they’re making the right choice.”

Target also rolled out an augmented reality feature on its mobile website in 2017, called “See It In Your Space.” That can be used on any mobile operating system. Customers can take a photo of where they can imagine a piece of furniture, then place the item there and rotate it and move it around.

There are a few challenges associated with using the technology. Some virtual reality headsets are expensive, while others can cause phones and other devices to overheat when used in tandem.

“A lot of people don’t have a computer to handle it or it looks grainy on a phone,” Wells said.

The university marketing campaign utilized posters that the institution set up in shopping malls across seven states. Using an app called Layar, people could hover their phones over portions of the posters and get on-screen prompts to receive more information, share information with friends, play video, get a closer look at the campus and other interactive features, Nidoh said.

Data showed the posters didn’t get a lot of interaction, most likely due to a lack of public awareness of augmented and virtual reality technology, and that checking out the posters required an app, not features built in and ready to use on a phone, Nidoh said.

“We generally put five posters throughout a mall and we probably only had a few dozen reported scans. People thought it was neat, but I think it was a little early to be doing that,” Nidoh said, adding that the university will use the technology again in the future.

Wells and Nidoh see great upside for the technology to continue to expand in several fields and for more retailers to utilize it as awareness of the technology is heightened and it becomes more commonplace.

“The user base is growing as the technology grows,” Wells said.

Contact the writer:

cover@timesshamrock.com; 570-348-9100 x5363;

@ClaytonOver on Twitter

Why do stores fail: Don't give the people what they want

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Big Box stores like Sears, Kmart and many other large chain stores fail for one basic reason.

“The simple answer is they don’t give consumers what they want,” said Richard Kestenbaum, co-founder and partner in Triangle Capital LLC, an investment banking company that specializes in financing retail stores. “What does that mean? Of course, it means having the (right) products and inventory that are available to consumers to buy. But it has come to mean many more things than that.”

Certainly, Kestenbaum said, the internet has hurt. Online giant Amazon’s rise has contributed to the death of numerous retail chain stores. Once, large retailers like Sears and Kmart assembled a wide variety of products for consumers who had nowhere else to get them.

“There was a time when Sears was Amazon,” he said. “The Sears catalog was everything. You could buy anything in the world that you could imagine from the catalog and there were many people who had no access to stores and that was it.

“But now everybody has a store in their pocket, so you have to offer more. Consumers want different kinds of values.”

Younger consumers have changed the dynamic. Instead of desiring products with mass appeal like their baby boomer parents, younger consumers favor locally sourced, ethically made (fair salaries in the supply chain), environmentally friendly products that feel like an experience.

Hence, the rise of thousands of online boutique retailers — AllSaints, for example — that few people have ever heard of. Even retailers like the publicly traded hipster apparel firm, Urban Outfitters, with stores concentrated mostly in wealthier urban or suburban areas, have felt the competition.

Unlike the Big Box stores, they adjust more quickly because they are smaller and more sensitive to ever-changing consumer demands, Kestenbaum contends. They are the opposite of Kmart and Sears, who suffered from rigid, organizational structures that rely on a top-down approach that tells consumers what they should want.

“It’s very hard to change from one form of retail, what boomers want, to what Gen. Z consumers want,” Kestenbaum wrote in an opinion column for Forbes Magazine. “For a big organization, it’s almost impossible.”

Brad Koszuta, a senior retail consulting associate for McMillan Doolittle, a firm that develops strategies for retailers, said companies like Sears lost their focus. By the early 1990s, Sears’ financial divisions started producing the majority of its revenues while the retail side got less attention.

“When a company tries to be too many things at once, and doesn’t really focus on one thing and being the best at that one thing, that’s where retailers get into trouble,” Koszuta said.

“You have to be the best at something and if you’re just good at every little thing, it’s not going to cut it in this retail environment where your competitor is literally one click away.”

Contact the writer: bkrawczeniuk@timesshamrock.com; 570-348-9147; @BorysBlogTT on Twitter.

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