An investment group headed by downtown Scranton developer Art Russo purchased two buildings on Penn Avenue, hoping to bring life - and more downtown dwellers - to what has become a quiet part of town.
Mr. Russo and his group acquired the former Penguin Lounge at 324-326 Penn Ave. and the building that housed the Banshee at 320-322 Penn Ave. Both buildings are about 11,500 square feet on three floors.
Coming in months after the block's only draw, the Banshee Irish pub, closed, Mr. Russo plans to convert the second and third floors of both buildings into 18 apartments. He plans two retail spaces in the former Penguin site. With plans for an urban-style nightclub nixed, he'll be looking for a restaurant tenant at 320-322 Penn Ave.
While some tear-down work has begun on the former Penguin building, Mr. Russo has no timeline, although he believes some work in the former lounge may be done by fall.
Mr. Russo notes the project, like his others in the city, is privately funded and does not rely on any public money.
"The downtown is becoming a neighborhood," he said. "These buildings are nice-looking buildings in a good area."
According to data filed at the Lackawanna County Courthouse, the Russo-led partnership 402 N. Washington LLC purchased 324-326 Penn Ave. from First Commercial Bank of Indiana for $165,000. The former Banshee building at 320 and 322 Penn Ave. was sold to the partnership for $375,000 by Manny's Bluestone Supply LLC of New Milford.
Banshee uncertainty
The former owner of the building, Nick Shursky, abandoned plans for opening a nightclub - Rise - heralded on window-size signs outside the building. Mr. Shursky, who had been the owner and operator of the Banshee since 2010, closed the restaurant last fall. He planned to become a tenant in the building with the relaunch as Rise, pitched as an urban-style club.
For several months, Mr. Shursky worked inside, building platforms and walls for the new concept. A self-reliant quarry man from Susquehanna County, he didn't know that by doing his own work in Scranton, he was running afoul of city codes. The rounds of city inspections and his efforts to remedy shortcomings prevented him from opening before the St. Patrick's Day Parade, which he anticipated would help him cover the $25,000 he invested in improvements.
Mr. Shursky broke his silence on the closure of the Banshee, which was beloved - if not frequented - by legions of fans. Despite his best efforts to reform the Banshee, it remained in the red. He brought in top-name Irish talent. Adored by the small audience, the shows lost money. He added a 56-beer tap system, occasionally driving to Allentown and Philadelphia, packing kegs on ice and lugging them back. He added televisions so customers could watch a game. He added a table tap system, the first in the area, so a group of customers could reserve a table and pay by the pint. A beer distributor told him people would flock to the first installed. They didn't.
"No one wanted the Banshee to survive as much as I," Mr. Shursky said. "I can't keep the Banshee the Banshee for 15 or 20 regulars."
Rise, he said, will not rise, and he is cutting his losses, having lost potential revenue being closed on Parade Day, and two months of what was his one year of operation.
Wayne Evans of Wayne Evans Realty, Scranton, represented Mr. Russo's team in the transaction. He said the block is one of the nicest downtown. The block, which has seen the departure of the Grove computer store and Weichert Realtors Hibble & Associates, is overdue for revitalization, he said.
Contact the writer: dfalchek@timesshamrock.com