EASTON, Pa. – Northampton County Council on Thursday night introduced a publicly subsidized plan to help a developer pay for the redevelopment of a former factory building.
A tax increment financing (TIF) plan would benefit Skyline Investment Group as it redevelops the former Dixie Cup factory in Wilson Borough into an apartment complex featuring 405 total units. The TIF district reviewed Thursday night would encompass 12.58 acres and include the former factory and the adjacent parking lot at 315 S. 24th St. It would be known formally as “1921 at Dixie Avenue TIF District.”
The TIF would allow future gains in real estate value to be used now to pay for redevelopment costs. The program was first developed in 1990 as part of the Commonwealth of Pennsylvania’s TIF Act. In a TIF district, the base assessed value of the property will be set at the time the district is created. As new development is constructed and assessed property values increase, the real estate tax revenue generated on the assessed value above the base is captured. The net increase in assessed value and correlating real estate tax revenue is the “incremental tax revenue” available for purposes of the project.
This is Skyline’s second attempt to secure the financing mechanism. Last November, County Council rejected a 20-year, $26 million proposal by a 5-4 vote. The rejection occurred even after Wilson Area School District and Wilson Borough approved it. The three taxing bodies are all required to approve it.
The plan before County Council Thursday night said the development would “unlock the potential of a highly visible blighted site that has remained unused for more than 40 years.” Should the redevelopment occur, it would “serve as a catalyst for further investment in Wilson Borough and Northampton County.”
The project’s overall construction timeline is 18-24 months from closing on financing. Total estimated project costs are $185 million. Public improvements include the remediation of environmental hazards. Those hazards include removing multiple underground storage tanks, along with soil and groundwater. There is grading that must be adjusted between the bike trail and 24th Street to allow bike trail access from the sidewalk along 24th Street.
The county maintains that adding a new sidewalk will further enhance safety. In addition, a new sidewalk will be constructed along Lehigh Street where there currently is no sidewalk. This will mean all public edges of the TIF would have sidewalk connectivity.
A new public plaza will be created with the project. The TIF envisions this to be created “as a central gathering space accessible to residents at the broader Wilson Borough community.” The public plaza will incorporate public art, seating areas, landscaping and integrated signage that honors the site’s industrial history. The project also includes the restoration and relocation of the rooftop Dixie Cup, which will be displayed permanently in the plaza.
Critical road improvements will also be made, should the project come to fruition. The site will include two primary vehicular access points on South 24th Street, one dedicated gated entrance for residents and another access point for visitors and commercial patrons. There will also be a separate surface parking lot and access drive northeast of the site. This will have connections to both Washington Boulevard and Lehigh Street. The project will also integrate the Tatamy Rail Trail into the landscape and open space plans.
Rent projections for the apartments at the property range from $1,965 per month for one-bedroom units to $3,050 per month for two-bedroom plus den units, according to meeting documents prepared by the Northampton County Industrial Development Authority.
In 2023, the site’s assessed value was $1.33 million, generating approximately $125,000 in total real estate tax revenue. Upon project completion, the assessed value is projected to exceed $30 million, resulting in annual tax revenues of over $1.3 million based on 2023 millage rates, documents stated.
A hearing on the TIF proposal is scheduled for April 16. A vote is set for May 7.