Today's one-liner: “In a republican nation whose citizens are to be led by reason and persuasion and not by force, the art of reasoning becomes of first importance.” T Jefferson
Wednesday, May 13, 2026
LVNews Features McClure Call Concerning Dixie TIF
Tuesday, May 12, 2026
UPDATED: Thresa Fadem Displayed a Profile in Courage in Voting No to the Dixie TIF
Last week, Theresa Fadem was one of the six NorCo Council members who voted against a tax break for the conversion of Wilson Borough's vacant Dixie factory into 409 luxury apartments. She's one of four newbies - all Democrats - elected in November. Before voting No, she shed some light on the incredible pressures that all elected officials endure when facing a controversial issue. In a democratic form of government, that should be expected. But there's a difference between lobbying or argument and coercion or intimidation. Fadem made very clear that she at least felt that she was being intimidated into voting for the tax break. Here's what she said.
I'm glad we're discussing this up here because this is a discussion of a very great scale, and it should take place here on the dais, in full view of the public. All right, our constituents deserve open, honest, dialogue, not private persuasion. Which leads me to feel compelled to address of recent action that I find deeply concerning. The former county executive contacted my current employer in what appears to be an attempt to influence my position on this matter. It's clearly a breach of professional boundaries. My responsibilities as an elected official are independent of my employment. And any attempt to leverage my workplace in an attempt to sway my vote is inappropriate and unacceptable. I was on the fence before, but I'll tell you right now, it's solid now.
Theresa Fadem is employed as Hellertown's zoning and code enforcement officer. Her boss is Borough Manager Cathy Hartranft. The former county executive is Lamont McClure, who was unsuccessful in his attempt to shepherd a tax break through County Council in November.
Based on what Fadem stated at the meeting, former Executive McClure (now a Congressional candidate) called Hellertown Borough Manager Cathy Hartranft in an attempt to have Hartranft pressure Fadem to vote for the tax break. It's also clear that Hartranft in turn did talk about it with Fadem. She may have intended only to share her opinion and insight as a borough manager that a tax break would be good for another struggling borough. But she forgot that she is Fadem's boss, and anything a boss would say to a subordinate employee would place that person under intense pressure. This is clearly what McClure intended.
If he was only interested in private persuasion, McClure could have called Fadem directly. Instead, he chose to put the squeeze on through Fadem's boss. This is clear intimidation. Another word for it is bullying.
I asked McClure if what Fadem said is true, adding "that would be highly inappropriate if true." McClure first stated that he had no response. He later added, "I deny that I asked anyone to leverage her employment to get her to vote for the project - which is what [Fadem] implied by saying she was 'pressured.'"
Then why did he call the Borough Manager at all? Why wouldn't he just call Fadem directly?
In addition to calling McClure, I called Borough Manager Hartranft. Her voice mail stated she returns every call, but she declined to return my call. She might claim this is a personnel matter, but I disagree. Any attempt to persuade her to vote for or against the TIF it is outside the scope of Fadem's employment with Hellertown. Whether knowing or unknowingly, she did exactly what McClure wanted. Fadem clearly felt threatened.
In fact, I have since learned that Hartranft even sent Fadem a text about the McClure conversation during the course of the meeting.
Finally, I spoke with Fadem. She understandably declined to add anything to what she said at the Council meeting. She's scared.
And she's right to be scared. In the past, I have seen other Council members like Lorei Vargo Heffner and Ron Heckman attacked personally when they refuse to go along with 100% of what McClure wanted as Exec And it has already started with Fadem with some anonymous comments.
The person this damages most is not Fadem, but current County Executive Tara Zrinski. She has worked hard at building bridges with Council, not just the Meadows Bridge. When a Council member is bullied over a vote, that just destroys everything. McClure is no longer county executive. Zrinski is rendered ineffective when he continues to use tactics that have failed in the past. He is now an assistant solicitor and has no business arguing for or against a policy. If anyone should be worried about job security, it should be him.
UPDATED 10:38 AM: After this post published, Hellertown Borough Manager Cathy Hartranft called me. Shje acknowledged that she was, in fact, called by McClure. She indicated that McClure called her to discuss the TIF and the developer's willingness to provide $2 million for affordable housing. She said that immediately after the call, she told Fadem about his call because she wanted to be transparent. She herself had no opinion concerning the TIF. She acknowledged that Fadem's employment was in no way threatened and there was no intent to intimidate or coerce her.
I believe Hartranft. But I also believe that Fadem, who is in a subordinate position to Hartranft, felt threatened. The call went exactly as McClure intended.
Friday, May 08, 2026
Dixie Cup TIF Fails in NorCo for Second Time
Last night Northampton County Council rejected a massive tax break, known as a TIF, to kickstart the conversion of Wilson Borough's vacant Dixie Cup factory into 405 luxury apartments. This proposal was defeated in November in a close, 5-4 vote. But in January, four new members joined County Council, and the thinking was that they might be more receptive to this incentive. They weren't. By a 6 to 3 vote, the measure failed. Voting against this tax break were Lori Vargao Heffner, Dave Holland, Theresa Fadem, Nadeem Qayyum, Jason Boulette and Tom Giovanni. Voting YES were Ken Kraft, Kelly Keegan and Jeff Warren. They had also voted for it in November.
I explained Tax Increment Financing (TIF) yesterday, but as a result of an error made last night by NorCo Exec Tara Zrinski, I feel compelled to do so again. She had stated, erroneously, that "the county continues to collect incrementally increasing taxes for the next 20 years." This is false. Instead, property taxes are frozen at their current level. Any increase in property taxes, resulting from new development is diverted to subsidize that development. Local public taxing bodies are denied the new revenue they would normally get from new development. Aside from Allentown's NIZ or an outright grant, a TIF is the most generous tax break a municipal government can provide.
Sensing which way the wind was blowing and knowing that the public has woken up to what is going on, an effort was made to delay the matter. Zrinski, in her comments, said that she expected the ordinance would be withdrawn or tabled. And sure enough, a motion to table was made by Jeff Warren and seconded by Kelly Keegan, supposedly at the request of the industrial development authority. The obvious reason is to delay and slip it back onto the agenda when everyone goes back to sleep.
The motion to table, which is undebatable, failed. Ken Kraft and Jason Boulette joined Keegan and Warren in seeking a delay. But Vargo Heffner, Holland, Fadem, Qayyum and Giovanni wanted a vote that night. Even after the motion to table failed, Kraft attempted one last time to push off the vote, but Fadem and Vargo-Heffner insisted on a vote.
During the courtesy of the floor, there were several speakers. I will summarize a speaker from each side.
Wilson Borough resident Armando Moritz-Chapelliquen urged a No vote for the following reasons:
Vote no, because the county, the borough, and the school district need the $26 million over the next 20 years.Vote no because the developer has already been awarded over $1.3 million in state and county funds.Vote no because the remediation of the site is not a blessing. It is a basic responsibility of any property owner, one that has been neglected by Wilson Park LTD, the previous owner, for over 40 years.Vote no because Wilson Borough hired a consultant to evaluate the TIF, and that consultant's report has not yet been publicly disclosed.Vote no because the borough is on the record saying they'll go ahead with the tip, whether you approve it or not.Vote no, because it is an outrage to provide a tax benefit for luxury housing in a school district with the third fastest increase in the poverty rate in the Commonwealth of Pennsylvania.Vote no because there will be no affordable housing units on site.Vote no because the county should not be the business of building housing, or, if you prefer, vote no because the county should be in the business of building housing. But $2 million isn't enough to replace the units that would otherwise go into a redeveloped Dixie.Vote no, because tax revenue should go towards supporting the most vulnerable among our neighbors.Vote no because the developer, because a developer who can't make this project pencil out, maybe shouldn't have spent $11 million on a site that was assessed at less than $3 million.Vote no because the Democratic Socialists of America oppose it.Vote no, because the Northampton County GOP opposes it.Vote no, because any Democrat who cares about affordability would never support giving $26 million to a luxury housing development.Vote no, because economic development and community development are intrinsically connected.And anyone who tells you otherwise doesn't know what they're talking about.And finally, vote no because the development of the Dixie Cup site is an inevitability..
Countering Moritz-Chapelliquen, NorCo Exec Tara Zrinski argued that
First, the Dixie Cup project is a brown field development. That means it is more expensive because of the environmental remediation. And that damage happened decades ago. In this case, underground tanks, asbestos, radon, and contaminated soil were removed at the cost to the developer of $35 million. The TIF only offers a fraction of recovery for him.
Once again, I am compelled to correct yet another misstatement. According to the TIF ordinance itself, Exhibit I, the remediation cost is $8 million, not $35 million. Moreover, he would be getting $5.7 million back directly from the TIF. In addition, he has already been awarded $1 million in outright grants for remediation. Instead of listening to a developer, Zrinski should be reading the ordinance.
Zrinski also made an argument for being kind to the rich:
I don't want to gloss over the iniquities within our society. I think we all realize they are real, but that does not mean that any alliance at all to someone with wealth is a betrayal of the working-class families or the poor. This is a false narrative that pits the rich against the poor, driving a wedge between the two further. There is no diametric opposition that is mutually exclusive.There are a few people in our community who are using the Dixie Cup Project for self-serving purposes, and twisting comments made in this very room. When it comes to housing, we have to say yes to affordable housing. But not to the exclusion of other projects that would not ever come to fruition but through government assistance.
During the meeting, Council members Theresa Fadem and Dave Holland both indicated that they had received "unsettling" pressure to vote for the TIF. I am looking into these allegations, which I consider serious.
I'll have more about this meeting and the committee hearings next week.
Tuesday, April 21, 2026
Dixie Cup TIF - Developer Nat Hyman Sez Dixie Can Be Developed With NO Government Assistance
I've told you why NorCo Exec Tara Zrinski supports a tax break to convert Wilson Borough's vacant Dixie Cup factory into 405 luxury apartments. I've shared arguments of three Council members who voted for the tax break (called a TIF) when it failed last year. Now I'll share the views of someone who actually knows what he's talking about. Allentown developer Nat Hyman has done 40 projects similar to Dixie, and here's what he shared with NorCo Council.
I write you regarding the TIF you are considering giving to the developer of the Dixie Building in Wilson Township. Please keep in mind that a TIF is the MOST generous form of tax incentive, far more so than a LERTA ! There are a few fundamental facts I believe you should consider before giving this money to Skyline Investment Group:
1. This will do absolutely NOTHING to address the affordable housing crisis. This developer has repeatedly said that they will be spending $185,000,000 for 400 apartments. That is a staggering $462,500 per apartment !!!! Basic math tells you that the interest costs alone will be $2,500 per apartment / per month (without including any amortization and all of the other operating expenses). These numbers will require rents north of $6,000 per month just to break even…..hardly affordable ! And the fee in lieu of $1.2 million that they propose paying toward affordable housing is nothing. This would build 8 affordable apartments and, more importantly, they are paying you out of the $29 million you are giving to them ! They are paying you with your money !!
2. Some have tried to claim that this project will create many jobs. The reality is that Dixie will create some construction jobs on a very short term basis. It seems to me that some people are pushing this TIF to curry favor with those construction unions. After that, there will be virtually no jobs created. Two or three full time people will be needed to run this apartment complex once it is built. This is not a project like Eli Lily which will create 1,000 good paying and long term jobs.
3. This “developer” has actually NEVER DEVELOPED ONE BUILDING. While they did list one project on their website called “The Louis” that they said they had developed, that was a lie. When confronted with this lie, they removed the project from their website. In addition, they had listed 5 offices around the country all with the same phone number which is the principal’s cell phone number. Those offices have likewise now been removed from the website. Finally, their supposed office in NYC is simply a shared executive office where they use a community receptionist. Do you really want to give $29,000,000 in taxpayer dollars to someone who has never built anything and is clearly a scam?
4. Skyline is presently in DEFAULT of its purchase agreement of the Dixie property with Wilsonpark. To date, they have paid ZERO principal or interest on the $11.5 million purchase price. So you are considering giving money to a borrower who has shown their inability and/or unwillingness to honor its obligations. There is not a lender in the world who would loan money to a borrower with a history of not paying its debts.
5. As I said, Skyline has said that this Dixie project will cost $185,000,000. ANY lender loaning or granting money to a borrower would want to be 100% assured that the project will be fully funded. There is NO WAY you should consider giving Skyline the $29,000,000 unless and until they can prove they have a firm commitment for the other $156,000,000 to complete this project.
6. Having done 40 developments similar to the Dixie building, I can tell you , unequivocally, that this project can be done beautifully with absolutely no government assistance. It would seem to me that the $29,000,000 is better spent on Gracedale, budget deficits or a reduction in your constituents’ taxes.
Finally, a disclaimer …..despite what some have said, I have ABSOLUTELY NO vested interest in this project and nothing to gain or lose by your choosing to give or not give them this money. This building has been sold and the title transferred to Skyline Investment Group and nothing you do will change that. I will not own this building regardless of your decision. I am simply a taxpayer upset by seeing my tax dollars wasted and I do have a philosophical disagreement with the concept of giving taxpayers’ money to a private developer to build luxury apartments. That said, I come at this from a unique perspective as the Lehigh Valley’s largest developer of adaptive reuse projects ….I have done 40 projects virtually identical to Dixie and have never taken one dime of government money or any incentive. As an example, I am converting the former Crayola headquarters in Palmer Township (only 3 miles from Dixie) into 94 affordable apartments with absolutely no taxpayer money. This developer could do the same with Dixie and he has told Council that he can indeed build Dixie without this TIF!!! So why would you give it to him??!
Ask yourselves, if I am correct and you give this untested “developer” $29,000,000 in tax payer dollars and, as I predict, the project is never completed, what legacy you will have created for this Council?
Dixie Cup TIF - Three Council Members Reiterate Support
A TIF tax break to convert Wilson Borough's vacant Dixie Cup factory into 405 luxury apartments was defeated in November in a close, 5-4 vote. Yesterday, I told you about Executive Tara Zrinski's fallacious ceteris paribus argument for the TIF. Today, I'll shre the views of three of the Council members who voted Yes in November. - Ken Kraft, Kelly Keegan and Jeff Warren, All three reiterated their support at the April 16 public hearing.
Kraft, in his own inimical style, argued that we should take the $2 million up-front (legal) bribe being offered by the developer. Here's what he said: "What kind of skin do we have in the game? Which is really minimal. But now we got a number on it. $2 million. They're giving it to us. So, our saying no to this project would be the most bonehead thing you could possibly do, because you're not losing anything. ... We're not even impacted anymore. I mean, we have no impact at all. You've given us the money up front, that, you know, I don't know, not a financial person, but supposedly we can leverage to loan more money at no percentage, you know, to do affordable housing somewhere. ... So we're not losing a dime."
He's right, too. It's not a dime. It's a lot more. According to the TIF ordinance, which he really should read, the county is giving up $5.6 million in real estate tax revenue over the next 20 years.
That seems pretty boneheaded.
Keegan played a math game. "All right, so Wilson Borough Council approved the TIF in 2024 and then again in 2025, and 9 members sit on the council. It was unanimous. Wilson Area School District approved the TIF. All 9 supported it. It was unanimous. They lived there in Wilson. They were elected officials for Wilson. My district is, uh, Wilson is part of my district as a district 2 commissioner. If 5 out of 9 of us on this board votes no, then out of 27 elected people, 81.4% support it, and if 5 of us vote no, 18.6 will not."
Although Keegan's math is correct, she misses the point. The TIF is authorized by the state Urban Redevelopment Law, which requires the approval of a majority of all three separate taxing districts impacted by the handout. These taxing bodies all serve different taxpayers. The representatives of taxpayers in Upper Mount Bethel Tp and Lower Saucon should have a say in decisions that give their money away.
Finally, Warren had something to say, too. He said he "wasn't planning on speaking," which is code for "Get the NoDoz out." This time he did spare us from his argument that we should grant a TIF because his grandfather worked at Dixie. Now he's likening government to mechanics, saying that a TIF is just a "tool in the toolbox." I'm a terrible mechanic myself, but even I know that you do not use an allen wrench to put air in a bicycle tire. And you don't kiss away $26 million in tax revenue to an inexperienced out-of-town developer who has admitted a few times that he doesn't really need the county's participation.
Warren commended developer Brian Bartee, who he said has "truly given so much to the community by what he has done with that building already."
Say what? There are still gaping holes instead of windows. And what has government already done for Skyline's Bartee? Skyline has already been awarded $1,000,000 from an RACP application in 2024 and this year. It has received $163,257 from a DCED Multimodal Transportation Funding Grant and a $175,000 Greenways, Trails and Recreational Program grant. It is seeking even more grant money from PennDOT, DCED Mixed Use Housing Development, another DCED Greenways grant, another DCED multimodal transportation grant, and Pa Historic tax credits
Monday, April 20, 2026
Dixie Cup TIF - The Illogic of Zrinski's Logic
I have written numerous times about a special tax break known as a TIF for the redevelopment of the long vacant Dixie Cup factory, located in Wilson Borough, into 405 luxury apartments. At a time when many families are facing increased housing costs here in the Lehigh Valley, it seems like a sick joke. Northampton County rejected this boondoggle in November in a narrow, 5-4 vote. But three of those no votes are no longer on Council, so like the Terminator, pitchman Brian Bartee was back again before a new County Council on Thursday night to sweeten the deal with a little more sugar to make the medicine (or should I say poison?) go down. Instead of a scant $1.2 million in county coffers, he's now willing to offer $2 million up front if the county would agree to a tax break that allows him to float bonds for $26.4 million in construction costs for the nesting perches of our well-too-do betters. We'll get the money back in 20 years. What could possibly go wrong?
While running for office and after taking the helm as county exec, Tara Zrinski has stated she'd be no Lamont McClure 2.0. That may be true, but she certainly seems like at least a Lamont McClure 1.5. Instead of proposing to tax the rich, the owners and renters of luxury apartments, she wants to give them a tax break
She started off by warning everyone, "I'm going to say some pretty unpopular things." But it was sweet music to the ears of private equity and developers whose bottom line is and always has been, "What's in it for me?" It was honey on the lips of trade unions who want the temporary construction jobs. And those trade unions, by the way, have bankrolled Zrinski's political ambition.
She acknowledged that she went on a tour of the site, and as she was perched on the roof or perhaps even the Dixie Cup with the raptors and vultures, she could see the state of disrepair of Wilson Borough homes. Some are in need of new roofs. Others need siding. That alone should have told her all she needed to know. This project will do nothing but create more disparity between the haves and the have nots.
She argued that the developer is willing to make public improvements to the property that will spare the county the expense of doing so. That's a flat-out canard. She knows that the county has nothing to do with roads, power lines or sewer. Moreover, the developer has proposed these changes for his own benefit, to make the luxury apartments more attractive. In reality, his apartment is going to create an even bigger traffic nightmare along 25th Street.
Her biggest and most illogical argument is that building 405 luxury apartments will ease the Lehigh Valley's housing shortage of 9,000 units. It will in fact exacerbate the problem.
Let me give you her argument, as she states it herself. "The Lehigh Valley Planning Commission says that we need 9000 units. That's not all affordable housing. There's a downward pressure that exists that is pushing people who can afford higher level into lower level. So while it doesn't intuitively make sense that if we put this higher priced apartment in, it makes sense if somebody who is occupying a $2,000 or $1,800 apartment or a $1,600 apartment, who could move into a $2,400 apartment, would be able to move because there's a place to go. Thus freeing up the other spaces. That is the logic here."
And that logic, as she puts it, is completely illogical. It assumes, and you know what happens when you assume, that the population remains constant. And that is belied by the very same Lehigh Valley Planning Commission, who notes we are adding 4,300 people every year, most from other states. So these luxury apartments will not be attracting affluent Lehigh Valley residents who will ditch a $1.600 a month apartment for one that rents at much higher rates for that cathedral ceiling. It will instead attract NY and NJ residents fleeing a higher cost of living there. It will make housing less affordable.
Take a look at nearby Easton, beautiful river town that is beginning to rival Frenchtown, Lambertville and New Hope. There are now several luxury apartments in what was once called Fishtown. Has that eased affordable housing there? The opposite has happened. It has attracted NY and NJ tenants who can commute or work from home. This in turn has made rentals there ridiculous. That problem is just made worse by giving a tax break for more luxury apartments even when a developer is willing to give you a pittance to ease your conscience at what you must know is wrong.
And what about nearby landlords like the Wilson Borough landlord who gobbles up properties at tax and sheriff's sales and then rents them out? They are delighted and one of them actually appeared at the TIF hearing in November. They can now demand even higher rents.
The only real way to ease the housing crisis is by encouraging more smart development that includes tiny homes, a reduction in minimum lot sizes and setbacks, an ease in tariffs on construction materials, accessory dwellings and more mixed-use development. County government has no say in any of these things.
As government screw-ups go, this would be the biggest one since the swaption debacle. And to make things worse, I have serious doubts that this great developer that Zrinski touted, will ever complete the project. More about that tomorrow,
Friday, April 17, 2026
Whistlin' Dixie in Wilson Borough: "I'll Give You $2 Million for $20 Million"
At last night's NorCo Council meeting, a TIF for the Dixie Cup factory building in Wilson Borough was once again on the agenda. A state-required public hearing was conducted on the proposal to provide a tax break to a non-local developer with no experience to convert a vacant factory into 405 luxury apartments. A vote is scheduled for May 7.
This break is supported by Council members Ken Kraft, Kelly Keegan and Jeff Warren. Executive Tara Zrinski also offered her support. To sweeten the pot, developer Brian Bartee has suggested he's willing to give the county $2 million in exchange for $20-29 million.
Makes perfect sense, doesn't it?
I'll have a complete summary of the lengthy public hearing available early next week.
Tuesday, December 30, 2025
Wilson Boro's Dixie Cup Project Wants $124 Million in Grants, Tax Breaks and Tax Credits
Friday, November 07, 2025
Tax Break For Luxury Apartments at Wilson Borough's Dixie Cup Fails With NorCo Council
Kristen Bertucci is with the Recovery Partnership, a nonprofit that provides mental health recovery services in the Lehigh Valley. At last night's NorCo Council meeting, she provided a list of human services vendors who have received no or only partial payments from the county for the past five months as a result of the state's inability to adopt a budget. Her own staff has been laid off, and she wonders if they'll be there if and when the state legislature finally gets its head out of its ass. To make matters worse, she notes that SNAP (food assistance) benefits "for the most vulnerable in our community" have been suspended as a result of the federal shutdown. She said this deprives many people of their "most fundamental human need." The only constant she has observed is a "complete disregard" that taxpaying citizens receive from all levels of government. "These actions tell us that we don't matter, at least not as much as a bond rating or in comparison to a real estate taxpayer. " she concluded, and she's right. The county has stopped paying human services vendors. Human services caseworkers, who investigate abuse claims against seniors and children, have possible furloughs hanging over their heads like the sword of Damocles. Against this backdrop, County Council was being asked to give a 20-year real estate tax break amounting to as much as $29 million to an out-of-town developer with no experience. He has already received handouts from the state and wants even more. The noble purpose of this largesse? Luxury apartments at the old Dixie Cup factory in Wilson Borough. He was able to find the money to buy the Planet Fitness building next to the Dixie Cup factory, but wants government to help him build high-end apartments.
I'd say the only idiots who would support this type of obscenity would have to be snorting cocaine. In fact, that's precisely what Stan Margle, the Wilson Borough lawyer who pushed this project before County Council and insulted them in the process, is accused of doing.
Last night, after months of delay between the developer and an industrial development authority, County Council was finally asked to voter on the matter.
Council member Jeff Warren bloviated over the phone and apparently thinks the tax break should be granted because his grandfather once worked at Dixie. He called this decaying hulk of a factory a historic building. He contended we already give tax breaks to multimillion dollar corporations "out the wazoo." I'm uncertain how this argument is even logical, but there it is. His real argument is the promise that the apartments will be built with trade union labor.
Other Council members had different views. John Goffredo said the county is making no payments for pensions this year and predicts it will soon have to raise taxes. John Brown argued that the developer's willingness to contribute $1 towards affordable housing is too low. Ron Heckman said he does not think a TIF should be awarded for one building with one developer. He said the county should be more concerned about human services. Lori Vargo Heffner said she's opposed to a tax break at a time when county finances are uncertain.
County Council voted to reject the tax break in a 5-4 vote. Goffredo, Brown, Vargo Heffner, Heckman and Tom Giovanni voted No. Voting Yes were Kelly Keegan, Jeff Warren, Ken Kraft and Jeff Corpora.
After the meeting, the county issued a news release attacking its own County Council. Here's a portion of the news release, using county resources to attack a branch of its own government:
“The council was presented with a straightforward plan to breathe life back into a site that has sat empty for 42 years,” said County Executive McClure. “They continue to prove themselves to be the most useless county council in home rule history.”
“At a time when action was needed, Council dropped the ball, turning a chance for progress into yet another chapter of missed opportunity.”
If he thinks this Council is bad, wait until next year.
Frankly, there is no compelling reason for this handout. The only jobs it will produce will be temporary union jobs that will end once the apartments are complete. It will make housing more unaffordable. Nearby landlords will increase their rents. And no one will see any increase in tax revenue for 20 years, if then.
Monday, October 20, 2025
NorCo Council to Vote on Dixie TIF on November 6
After a great weekend of cycling fun in Philly, helped by outstanding weather, I finally had the opportunity to watch the public hearing for the tax break (known as a TIF) at the long vacant Dixie Cup factory in Wilson Borough. What I saw was pretty much a rehash of arguments previously made. County Council will vote on the TIF ordinance itself on November 6.
If it passes, it will be a $20-29 million windfall for the developer of the long vacant Dixie Cup factory in Wilson Borough. It will enable Skyline Investment to float two series of bonds for a proposed 405-unit luxury apartment complex and use the projected increased assessment to pay for the improvements made over a period of 20-25 years. During this time, taxing authorities will continue to receive the taxes on the existing assessment, but they will have to wait a quarter century to see receive the taxes it should receive when improvements are made.
In addition, Skyline will also use historic tax credits and has already received a state grant for asbestos removal.
It's nice to be a picked winner
Both Wilson Borough and Wilson Area School District have already agreed to this windfall.
Unanimously.
Skyline principal Brian Bartee and his bond counsel, Jonathan Cox, monopolized much of the hearing. Obviously, they're all for it. So is Doylestown attorney Richard Groff, who gobbles up distressed properties at tax and Sheriff sales and then flips or rents them out. Obviously, high rentals at Dixie will make it possible for him to charge more rent at his Wilson Borough and Easton properties.
Support from those who benefit financially is understandable. Unanimous support from Wilson Borough and the school district, however, is either incredibly naive or downright stupid. In Wilson Borough's case, I think it's stupidity. This is the municipality that uses Stan Margle, who is facing multiple drug charges, as their solicitor. He even spoke for the borough at two county meetings where he actually insulted one of the County Council supporters.
Brilliant.
In the case of the school district, the rationale offered by superintendent Harrison Bailey III (that's Doctor Bailey to you), was downright mystifying. He said students would receive an education by watching union contractors as they install drywall during the year or so that it takes. I bet. They would also be able to meet the developer and learn what it means to be an entrepreneur. Is that worth 20m years of tax breaks?
In response to questions from Council member John Brown, Dr. Harrison Bailey III said it costs about $22,000 a year per student. Brown indicated that some tenants at Dixie will have children who attend school, and the school district will have to pay for their education. Moreover, the school district will miss 20 years of increased property tax revenue Dr. Harrison Bailey III said taxes at Wilson have only gone up 0.66% for the past five years, but his doctorate certainly has nothing to do with math. This year alone, taxes at Wilson have gone up 3.5%. His doctorate has nothing to do with business, either. Dr. Harrison Bailey III conceded he did no analysis or study on exactly how much this TIF will cost the school district. People in the audience apparently shouted out that the school board did a study, but I certainly find it off that Dr. Harrison Bailey III had no knowledge of it.
This ordinance will be supported by Council members Ken Kraft, Kelly Keegan and Jeff Warren for one and only one reason - trade unions. Skyline Investment's Brain Bartee will use union labor. It matters not that this labor will be used to develop housing that only New Jersey and New York immigrants can afford. It matters not that this will just exacerbate the affordable living crisis. A year of union labor makes it all worth it to them.
I'm less certain about the others.
Friday, October 17, 2025
NorCo Council Conducts Public Hearing on Dixie's Tax Break Proposal
At last night's meeting of Northampton County Council, a public hearing was conducted on the request to grant a tax break known as a TIF for the conversion of long vacant Dixie Cip factory, located in Wilson Borough, into luxury apartments. Most speakers were pro-development. Most were there at the behest of the developer, Wilson Borough or the Wilson Area School District. No action was taken on the TIF application last night.
I'm in Philly today for an annual cycling event, so I'll post about the hearing on Monday.
Thursday, September 18, 2025
Will NorCo Council Be Whistling Dixie?
![]() |
| This picture was taken 8/17. Windows are now being fixed. |
In addition, Skyline will also use historic tax credits and has already received a state grant for asbestos removal.
Both Wilson Borough and Wilson Area School District have already agreed to this windfall. but NorCo Council has yet to weigh in. Under state law, the soonest they can do so will be in late October.
Council member John Goffredo described what is happening as "almost like corporate welfare. We're giving a tax break to some of the most wealthy and most privileged people there are out there," he complained. Wilson Borough Council President John Burke said the development might actually attract other projects to hos borough and might even lead to reduced taxes "down the line."
Skyline's Brian Bartee said he'd be contributing $1.1 million for low-income housing. His rental rate will be $2.51 per sq ft., which is actually cheaper than three luxury apartment complexes he identified in Easton and Bethlehem. He said the average rent at one of his apartments will be $2,452 per month. Once construction starts, he projects that he'll be able to build 20 units a month.
Noting that the project would take Bartee about 20 months (or slightly longer) to complete, Council member John Brown told Bartee that he'd be generating a substantial cash flow (406 units @ $2,452 is about $1 million a month). "Why do you need an additional 17 years of tax break in order to make the project work? There's something in that math that seems a little odd to me." At that rate, Brown noted he could have everything paid off in 12-15 years.
Bartee answered that "[w]e need a 20-year term so that we can maximize the proceeds so that we can meet the equity constraint to close." He said a lesser term would make it impossible to close.
Brown also noted that Bartee's background is "pretty scarce." (I have previously raised a number of red flags about Skyline) "You have a nice website and that's about it," Brown said. Bartee conceded he has no previous experience as a developer, but his partner (David Amirian) does and won developer of the year in 2024.
Monday, August 18, 2025
McClure is Whistling Dixie!
Before delivering his happy tidings, McClure reflected on affordable housing. He said there aren't enough rental units, "so what is happening is people who can afford more apartments are renting apartments that other folks cannot afford now because the rents are rising and it's driving other people out of the market. It's exacerbating our homelessness problem."
So what does he do? He pushed for a $29 million handout to an out-of-state developer with no experience for luxury apartments that only will make housing more expensive for working people who want an apartment.
Brilliant.
Thursday, July 31, 2025
A Tale of Two Apartment Buildings
Above is a photograph of Nat Hyman's Water's Edge 94-unit apartment complex, located at 2025 Edgewood Avenue in Palmer Tp. In early June, zoners gave their blessing to a proposal to allow the former Crayola factory to be used instead for apartments. As you can see, Hyman has painted the building two different shades of blue. Windows that need to be replaced have been boarded up. He had a team of workers at the site as well, preparing the property with nonstructural studs so he could begin work once he received building permits. But as I explained to you on Monday and again yesterday, township apparatchiks have done their best to prevent Hyman from moving forward. They've sent peeping Toms to peering through windows, issued stop work orders and even executed a bizarre search warrant. They claimed they were responding to noise complaints from residents, even though there are none anywhere near this property. They unlawfully refused to issue a permit on the basis that he had to wait for a 30-day appeal period to expire even though he has every right to assume that risk. And as of yesterday, they now claim that it will take 30 business days (6 weeks) just to process his permit application.
About a mile away, you can see the vacant Dixie Cup factory, replete with broken windows. This project was approved in June 2024 for over 400 luxury apartments. The nonlocal developer, Brian Bartee of Skyline Investment Group, told both Wilson Borough and the School District that he would have units ready by April 2025 and be done by December. He's received $500,000 in RCAP funding and is seeking a $29 million tax break for the project. The only reason he doesn't have it yet is because NorCo Council is hesitating. But since the county's portion of the tax break is relatively small, he could possibly have moved ahead without it.
Instead of building anything, he's had a fire on the property. Get this, he's "finalizing plans" to fix windows, which should have been a top priority to abate an attractive nuisance. Now he's saying the project will be done by 2027.
In Palmer, a developer is doing everything he can to redevelop an old factory into workforce housing, a public good. He is being hamstrung by officious bureaucrats.
In Wilson, public officials are falling over each other to hand out millions of your money so a nonlocal developer can build luxury apartments that most of us would be unable to afford. And the damn windows are still broken.
Monday, October 14, 2024
NorCo General Purpose Authority Approves Wilson Borough Transfer For Dixie Cup Development
But there's a problem. Wilson Borough is unable to convey directly to Skyline unless it first conducts an auction at which anyone could bid to buy the tract. This could complicate Robinson in her quest to attract private equity with promises of an historic tax credit.
To foreclose the possibility that someone other than Skyline gets this tract, the Borough could convey to the county GPA, which in turn would munificently turn it over to Skyline. That way the law against this kind of insider dealing would be followed even though the spirit of the law would clearly be ignored.
At their October 8 meeting, NorCo's GPA approved the land transfer by a 5-2 vote and without discussion. Voting Yes were Charles Dertinger, Paul Anthony, Ken Kraft, Ronald Donchez and Pamela Pearson. Voting No were Lori Vargo Heffner and Lance Colondo.
Vargo Heffner is President of NorCo Council and Colondo is Nazareth's Mayor.
Tuesday, August 13, 2024
Wilson Area School District and Wilson Boro Unanimously Approve Tax Break For Dixie Cup Developer
Last night, Wilson Area School District voted unanimously in support of a resolution that will permit Skyline Investment Group to take a $29 million tax break known as a TIF for development of the long vacant Dixie Cup factory in Wilson Borough. The TIF resolution itself was unavailable to the public prior to the vote, but comments from school directors indicate that the district will receive $1.25 million from the developer.
Wilson Area School District is the largest of three taxing bodies (in addition to NorCo and Wilson Borough) willing to allow the developer to use an increased tax assessment to finance the project. As originally drafted, all three taxing bodies would need to wait as long as 20 years before seeing a dime in increased revenue.
In July, Skyline proposed giving the school district a $1 million cash contribution. Between then and now, that contribution has increased.
This tax break was also on Wilson Borough's meeting agenda last night. Skyline had proposed a $500,000 cash contribution to the borough in exchange for the tax break. That offer was sweetened to $600,000 and was passed unanimously as well.
According to Tina Smith, NorCo's Economic Development maestro, soonest that a TIF ordinance creating a TIF district can be introduced is September 5. A public hearing would take place September 19, with a final vote on October 17.
Northampton County is slated to receive $1.1 million for affordable housing in exchange for creating and approving a TIF district.
Real estate developer Nat Hyman, who himself was interested in acquiring the property with no tax incentives, has attacked the proposal and warned County Council they are being scammed.
Below is a summary from Wilson Borough activist Armando Moritz-Chapelliquen, who was at the school board's meeting.
Last night, both Wilson Area School District and Wilson Borough voted unanimously in favor for their TIF Resolutions, leaving the question of the TIF District, and the redevelopment of the Dixie Cup site, up to Northampton County Council.
Last time around (and in the picture above), I mentioned that the developer was offering up-front payments to both Wilson Borough ($500,000) and Wilson Area School District ($1,000,000). In the resolutions passed last night, both of these amounts were increased, with Wilson Borough now set to receive $600,000 and Wilson Area School District set to receive $1,250,000 at the loan closing. I am still not clear on what the mechanism is for these payments to be made, or if they're going towards particular uses (like the $1.1 million going towards the County's Affordable Housing Fund).
It should also be noted that I was under the impression that these resolutions would need to have a public hearing before getting a vote by the Borough and School District. That, apparently, was incorrect. The only body required to have a dedicated public hearing is the County, which is where the resolutions are headed now.
In the absence of seeing both resolutions or public hearings at either body, I'm expecting there to be a more thorough discussion about the TIF when this gets on County Council's agenda, which should be over the next couple months. I haven't yet heard much deliberation or rationale for the upfront payments or if they're enough for either the Borough and the District. Who came up with the figures? Who pushed them up? How will the money be spent? To date, I'm not clear on any of these questions.
I recognize that the Borough and School District voting unanimously sends a very strong message to the County Council. However, the Borough and School District also voted unanimously for the LERTA that I strongly opposed and led advocacy efforts against two years ago. County Council voted that LERTA down, preventing the sale of the Dixie Cup site to a developer who wanted to make it a warehouse. That same LERTA was repealed--unanimously--by both the Borough and School District last night.
I'm not suggesting that we're in the same position we were in two years ago; we're significantly better off... but we only got here because the County Council took the time to ask the hard questions, debate publicly, and share documents ahead of any scheduled votes. That deliberative and engaged approach needs to happen again.
The next and last stop for this public debate is Northampton County Council. A hearing could be scheduled as soon as next month. When that gets scheduled, I'll be sure to share the details. I hope to see you there.
Wednesday, July 10, 2024
Dixie Cup: Developer Proposes $1.5 Million Cash Contribution to Wilson Borough and Wilson Area School District
Wilson Borough resident Armando Moritz-Chapelliquen attended a meeting of Wilson Area School Board on Monday night concerning the redevelopment of the long vacant Dixie Cup factory into apartments. Developer Skyline Investment Group wants a tax break known as Tax Increment Financing, which will enable it to float a bond from the increased assessment for construction over a period of 20 years. Below is his report.
Last night, both Wilson Area School District and Wilson Borough held meetings where elements of the Dixie Cup redevelopment were discussed. The below picture covers one of the biggest pieces of new information shared at the Wilson Area School Board meeting: Skyline Investment Group is directly offering funding to Wilson Area School District and Wilson Borough (see second row: "Cash Contribution")

While the $1.1 million to Northampton County is not new (this figure comes from the affordable housing opt-out language that's been discussed previously), the $1,000,000 to the School District and the $500,000 to the Borough is entirely new. Additionally, it is important to note that this is only an offer; neither the Borough nor the District have approved any language yet. Considering the fact that there was previously no upfront funding coming to either entity, this is a notable potential concession from the developer. As I asked months ago when we learned about the $1.1 million being offered to the County, I would ask the same question to the Borough and District now: Is this funding offer enough?
Given the fact that no TIF resolution has been introduced yet by either the Borough or the School District, I am also curious about how this contribution would be handled. For the County, the mechanism enabling the $1.1 million contribution is the opt-out affordable housing language in their TIF ordinance. What is the mechanism for the Borough and District contributions?
In addition to this initial offer presented at the Wilson Area School Board meeting, Wilson Borough Council also voted on a resolution to grant a parcel of land adjacent to the Dixie Cup site to the County General Purpose Authority, with the ultimate aim of getting that site granted to the Dixie Cup developers to complete their development plan (the parcel is largely represented below by the red square).

As for a vote on the TIF, it looks as though a hearing could happen before the end of the month or early in August at either taxing body. For the sake of those of us who went to both meetings, I can only hope the public hearings and votes are not on the same night. If you have strong opinions on the funding offers or on the TIF in general, please let me know or come out to the hearings when they get scheduled. We've only gotten this far because of the engagement of the community; let's keep it going!
Tuesday, July 09, 2024
Wilson Boro Conducted No Vote For Dixie Cup TIF Last Night
Last week, NorCo Economic Development Chief Tina Smith advised County Council that the soonest it would be able to vote on a special tax break known as a TIF (tax increment financing) for Wilson Boro's vacant Dixie Cup factory would be on. October 17. She indicated that the borough would be voting on a TIF resolution on July 8 (last night), and that Wilson Area School District would do so on August 12. While this overall timeline may be accurate, Smith was mistaken when she said the borough would be voting on a TIF resolution last night.
According to the agenda for last night's meeting, no vote or even discussion was scheduled last night For the Dixie Cup TIF. The only matter related to the Dixie Cup was a resolution authorizing the transfer of a small (0.35 acre) tract to NorCo's General Purpose Authority (GPA), with the understanding that the GPA in turn would transfer title to Dixie's developer, Skyline Investment Group.
Under the Borough Code, it is illegal to convey real estate to a for-profit private enterprise without conducting an auction to ensure that the borough gets the best possible price. But it can convey, and without consideration, to a public authority like the GPA. And then the GPA can turn around and convey it to Skyline. In essence, GPA is a strawman to help Wilson Borough prevent its citizens from getting the best price possible.
It's unclear precisely when the Borough will vote on the TIF resolution.
Friday, July 05, 2024
The Soonest NorCo Council Will Vote on the Dixie Cup TIF is October 17
On Wednesday evening, Northampton County Council voted 8-0 to table an ordinance that would have given a 20-year tax break (known as a TIF) to the proposed redevelopment of the Dixie Cup factory in Wilson Borough.
Interestingly, Council member Jeff Warren, who previously hailed the project, was absent. During the public hearing on this tax grab a few weeks ago, he assailed Lehigh Valley developer Nat Hyman for leaving after opposing this corporate welfare during public comment. Unlike Hyman, Warren is an elected official and is paid to attend county council meetings. Warren not only missed the meeting but had time that day to publish five tweets about Philly sports. This is unlike Council members who miss meetings for medical reasons.
According to Tina Smith, NorCo's Economic Development maestro, Wilson Borough is poised to pass a resolution approving the Dixie TIF on July 8. Wilson Area School District will deliberate that day but will not be voting on it until August 12.
This means that the earliest a county public notice can be advertised is August 13. The soonest the TIF ordinance can be introduced is September 5. A public hearing would take place September 19, with a final vote on October 17.
Council member Ron Heckman noted that the county can propose a timeline, but it is up to Council to decide when it will act, so long as it complies with state law. "I know people want to move this at rocket speed," he said, "but I can tell you right now that it's moved too fast."
Wednesday, July 03, 2024
NorCo's GPA Tables Property Transfer For Dixie Cup Development in Wilson Borough
Back in May, Skyline Investment Group representatives were at the NorCo's General Purpose Authority (GPA) meeting. Wilson Borough actually owns a small triangular piece shown on the tax map you see above as 1C-1. It is 0.35 acres located along the eastern side of 25th Street and is actually the beginning of a bike path that extends from the Palmer Bike path and hooks up with the Tatamy Trail. According to Claudia Robinson, who is actually a tax credit maven employed by an outfit called AreaProbe, Skyline would move the giant Dixie Cup currently on top of the vacant factory and plant it next to the bike path, where people could ooh and ahh at its wonder.
But there's a problem. Wilson Borough is unable to convey directly to Skyline unless it first conducts an auction at which anyone could bid to buy the tract. This could complicate Robinson in her quest to attract private equity with promises of an historic tax credit.
To foreclose the possibility that someone other than Skyline gets this tract, the Borough could convey to the county GPA, which in turn would munificently turn it over to Skyline. That way the law against this kind of insider dealing would be followed even though the spirit of the law would clearly be ignored.
Yesterday, GPA was poised to act on a resolution to approve the transfer. An attorney with Eckert Seamens, the law firm spearheading the TIF tax grab for Dixie, and Wilson Borough Council member Justin Woodring were on hand to push for the transfer.
But as it happens, Wilson Borough Council is not scheduled to vote on a transfer until June 8. Moreover, GPA Solicitor only received the resolution on Thursday. Moreover, Council member Woodring said Council needs to rescind an earlier resolution approving the transfer. He added that the property has no value to anyone other than the Borough and the developer.
If that's the case, why not do an auction like the Borough Code requires?
GPA member Lori Vargo Heffner moved to table the property transfer because it made little sense to approve a property transfer that the borough itself has yet to approve. "And I agree with Lori." added GPA member Ken Kraft. "This should have been withdrawn because you're not done. Ww [should be] the last person to do this. Why are we always getting this in different forms before it is finished?" Kraft seconded Vargo-Heffner's motion, and the transfer was tabled.







