Northampton County Council might not vote until mid-October on a tax-financing plan for redeveloping the former Dixie Cup factory in Wilson.
Tina Smith, the county’s community and economic development director, told council Wednesday night that Wilson Council is scheduled to pass a resolution granting a TIF, or tax increment financing plan, to the developer, Skyline Investment Group. The Wilson Area School Board has plans to vote on the plan Aug. 12, she said.
County Council would advertise a public notice on the TIF the next day, according to Smith, with an introduction of the TIF set for Sept. 5, a public hearing Sept. 19, and a final vote Oct. 17. The three taxing bodies must approve the plan.
“Because of the law, we have to give the notice,” Smith said. “That ideally is the proposed timeline.”
Council member Ronald Heckman bristled at being pinned to a schedule, saying some people “want to move this at rocket speed.”
“What the borough and school district do, that’s great,” he said. “But we can wait.”
After discussion, council voted 8-0 to delay a vote on the matter, with council member Jeff Warren absent.
Contacted after council’s meeting, Skyline developer Brian Bartee said he remains focused on the estimated $160 million redevelopment project of the landmark structure off South 25th Street with a massive, weathered, rooftop Dixie Cup that has been visible along Route 22.
He said he would like to start construction by year’s end on the project, dubbed 1921 at Dixie Avenue.
“But I am at the mercy of the taxing bodies,” he said, “and we have to go at their pace. It will start when it will suppose to start.”
Council has seemed generally in favor of the proposed redevelopment of the century-old, former massive factory that made paper cups and related products but has been closed to manufacturing for more than 40 years.
However, concerns have arisen regarding the financing plan and the $1.1 million that Bartee has earmarked toward county affordable-housing initiatives, with some suggesting more money should go toward such development.
The TIF plan would run 20 years and would be used to support bonds totaling more than $20 million. Property taxes during the TIF are used to pay back loans taken to fund some improvements. Some on council and others have questioned the length and amount of the TIF.
The financing would leave Bartee responsible to pay current property taxes but also pay lower taxes during a period in which the property undergoes redevelopment.
Skyline is also seeking a $10 million state grant. Bartee has said the financial assistance is essential to the project, despite concerns about a private company reaping public help.
Bartee recently acquired the former factory and adjacent parking lot, nearly 10 acres total, from a private partnership called WilsonPark Ltd., whose spokesperson, Joseph Reibman of Salisbury Township, tried three previous times during the group’s 40-plus years as owners to sell the property without success.
After Dixie Cup stopped manufacturing, the factory under WilsonPark’s ownership became a logistics and warehouse facility until the early 2000s. It was mostly vacant since then.
County Executive Lamont McClure and the Lehigh Valley Planning Commission, which reviews major developments, have recommended that the Dixie Cup project proceed.
Morning Call reporter Anthony Salamone can be reached at asalamone@mcall.com .
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