Below you will see a detailed report from Wilson Borough resident Armando Moritz-Chapelliquen concerning the redevelopment of the long vacant Dixie Cup factory into apartments. Developer Skyline Investment group wants a tax break known as a TIF in exchange for setting aside 10% of the units for affordable housing. Wilson Borough and the school district have both signed off on this tax break, and all that is left is approval from the county. This TIF must be approved by Wilson Borough, the school district and the county to get the benefit from all three taxing bodies.
I will weigh in with what I think after checking out this New York investor.
Armando's report:
[On May 2], two representatives from Skyline Investment Group, the buyer for the Dixie Cup site, presented their most up-to-date plans to Northampton County Council's Economic Development Committee. A lot of information was shared in the supporting documents (which you can find here starting on Page 13), but among the biggest updates is that the developer is requesting the Council pass an ordinance to set up a Tax Increment Financing District, or TIF.
What is a TIF?
As Good Jobs First explains it, Tax Increment Financing is a geographically targeted economic development tool. It captures the increase in property taxes, and sometimes other taxes, resulting from new development, and diverts that revenue to subsidize that development. That diversion means local public services do not get the new revenue they would normally get from new re/development.
In the case of the Dixie Cup site, the TIF would be in effect for roughly 20 years. Given this potential diversion of tax revenues, the question on everyone's mind should be "Is a TIF worth it for this project?"
What is Being Proposed
Some may recall an earlier image I circulated to show what were some of the major components of this project. The below image comes from the developer's TIF Plan, submitted to County Council as part of their May 2 meeting (accessible here starting on page 24).
- Dixie Cup Seating Area (Red Square): The Dixie Cup currently on top of the building will be brought down to ground level and set up with benches for people to enjoy up close. A replica cup will be created and placed on the roof. Based on the plan provided, this area would be close to where the bike path meets 25th Street.
- Access Lane to Bike Path (Green Oval): The bike path that runs along the western end of the site will be accessible from the southern parking lot of the redeveloped Dixie Cup building. This would provide a new outlet for cyclists who can currently only exit this stretch of the bike path at Northampton Street to the north or 25th Street to the west.
- Cafe and Dog Lounge (Blue Triangle): The old boiler house will be converted into a retail/commercial space, along with a dog run (note the bone-shaped outline on the western end of the triangle). This amenity, in addition to the Dixie Cup seating area, will be open to the public and provide an additional component of connective tissue between the Wilson Area High School to the east and Easton High School to the west.
The previously mentioned fire lane around the building, pool for building residents, and rooftop lounge are still included (the pool can be seen to the west of the 2nd northern-most "finger" of the main building). While the parking lot to the south of the building is visible even today, it's bound to be more active once the building is complete.
Affordable Housing
Within the TIF ordinance is a section on affordable housing (pages 18-19 for those reading through the documentation). While the text requires 10% of the units to be affordable, there is also language that allows for an owner using the TIF to opt out of this requirement if they contribute $27,000 per unit, up to 10% of the total number of units, to the County's Affordable Housing Initiative Program. The redevelopment plan is for 405 units, meaning either 40 units would need to be affordable OR the developer would contribute $1,080,000 ($27,000 x 40 units) to the County fund. The developer has repeatedly stated they would prefer to contribute to the fund, so the only remaining question is whether $1,080,000 is a sufficient contribution to the fund.
My Opinion
While the affordable housing question still needs to be answered, this proposal is an enormous validation of community voices--like yours-- that pushed back on the warehouse plan in 2022 and completed my survey in 2023. For those unfamiliar, I asked area residents to score their favorability towards various uses permitted on the Dixie Cup site. The results were very aligned with what Skyline Investment Group is proposing.
Separate from affordable housing, I still have questions regarding some of the more specific details of the site (amenity access, bike path accessibility from Washington Blvd, general questions about vehicular traffic, etc). Regardless, the possibility of a reactivated and engaging Dixie Cup site as part of our community is only because of community involvement and advocacy over the past few years. And if you have concerns about this plan, there is still time to make your voice heard.
Next Steps
County Council will be holding a public hearing on the TIF ordinance on Thursday, June 6. A vote on the ordinance is scheduled for Wednesday, July 3. I'll be attending both and am happy to meet up with others who would like to give testimony. We are so close to getting something that will benefit our community. Let's make it happen!
Thanks as always for your collaboration!
-Armando
PS: If you think someone would appreciate this information or want to receive updates on this Dixie Cup site, forward them this email!
25 comments:
Hell No!!
A million dollars for over four hundred overpriced apartments
Hell No!! Stop giving these millionaire developers tax breaks. What the Hell is wrong with you people? Pay your taxes or go somewhere else. We all have to pay our taxes.
Once in a generation opportunity.
So the developer is essentially paying a $1 million affordable housing tax that increases the cost of the project making it less affodable. Traffic at the intersection is horrendous on school days. How much is Reibman walking away with?
Northampton County will put this money to use in its Workforce Housing Program. There are already projects underway in Glendon and Forks that need additional funding. There are also affordable housing irons in the fire on the Southside of Easton.
Didn't McClure say that he was not going to give TIF or LERTA to this project? Why should the tax payers fund 1 cent Of this project ? If he doesn't keep his word and ends up giving it to these people, He won't get re-elected.
Who is this developer and what has he built in the past ? I looked him up and can't find one thing Brian Bartee has ever done ! If we are giving away tax benefits , it better be to a seasoned developer with a long track record of doing buildings like this.
I thought TIF’s typically are for 10 years, not 20. Does this vary by project?
Lori Vargo-Heffner is a real piece of work. First she skips the Economic Development meeting where Dixie presented. Then during today’s GPA meeting she didn’t even pick her head up while Dixie was presenting. This extremely rude behavior can all be seen on Hulu or something. Is she decompensating ?
Steve is so upset LVH is in a position of oversight. Go back to work Steve.
When will Seniors get a property tax break.
12:18 - The answer is “Never”. Your politicians are too busy giving it away to developers who don’t need it.
All this Tax break is doing is rewarding Joe Reibman's greed , his letting The building Totally Deteriorate and his Not paying His taxes! Shame on all of them for giving a tax break to this so called developer
The county doesn’t need to approve this. They are the smallest portion of the tax break and I guarantee that the project will go forward without their approval.
Meanwhile, the school board members who approved this should be run out of office. The increased enrollment from this project will likely cause a need for more school buildings and personnel, and they still voted to forego a major chunk of revenue that would have helped pay for it.
Who will make up the difference while the TIF is in place? That’s right, the existing taxpayers (including seniors, widows, and others on fixed incomes) who aren’t getting any tax breaks on their homes. If you went and asked them for a 20 year freeze on your tax bill, they’d laugh you out of the room.
Remember that the next time you vote. Your school board members have your back, but only to shove a knife into it.
Meanwhile, county council needs to grow a spine and turn this down.
I believe he made that statement regarding the warehouse that was being planned or discussed at that site. Not the apartment project
when are they going to give seniors a break. Lisa has brought up getting rid of school property taxes for 10 years. Always at election time than forget about it until next election. Yet we want to give tax relief to big business for big rentals. When is the County going to help us.
when are they going to give seniors a break. Lisa has brought up getting rid of school property taxes for 10 years. Always at election time than forget about it until next election. Yet we want to give tax relief to big business for big rentals. When is the County going to help us.
It appears from the YouTube video, that Lori Vargo Heffner opposes affordable housing in Northampton County.
Wilson is turning into a cesspool.
Bernie, an important correction: Wilson Borough and the Wilson Area School District have *NOT* approved the TIF that was presented at County Council last week. Reports that they signed off already are likely conflating the LERTA that both the District and Borough passed in 2022. My assumption is that both authorities would be introducing their own TIF ordinance this month or in June. Anybody who feels strongly about the TIF (or the redevelopment plan in general) should make a plan to be at those meetings when they are scheduled. I shared the dates for the County hearing and vote because those are the only dates that have been publicly set.
We’ll said!👏👏
Hey, you stupid voters keep putting her in!🤪🤪🤣🤣🤣
Amen. Social security and inflation make paying school property taxes impossible
Why doesn't the County just buy it and give it to them - NOT! Executive needs to go!!!!
TY for that important correction, Armando.
Easton should take it over.
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