Northampton County Council pauses vote on tax break for Dixie Cup apartment project

EASTON, Pa. — Northampton County Council will take its time on a tax ordinance that could be instrumental to construction of an apartment complex at the former Dixie Cup plant.

Council on Wednesday tabled the ordinance, which with Wilson and Wilson Area School District establish a tax increment financing, or TIF, district for 1921 at Dixie Avenue apartments.

The move will let the borough and school district decide the matter first, being the county is a smaller player in the entity, Councilman John Goffredo said.

The TIF would allow for diversion of property tax revenue increases from a particular area to an economic development project or some public improvement. The 1921 at Dixie Avenue TIF would amount to $28.9 million.

The hope is the space improved by development would stimulate increased tax over time. The municipality usually issues bonds to finance a project, then uses the increased property tax rates from the revitalization to pay them off.

“So essentially, it is going to amount to $29 million in tax forgiveness for financiers,” Goffredo said. He said a Local Economic Revitalization Tax Assistance, or LERTA, program has a similar goal, but a different strategy.

“I know a lot of people from council and a lot of people from Wilson, they would love to see something happen with that property," Goffredo said.

"This is obviously a big, a big deal for a lot of people. But it's still $29 million of tax forgiveness. So that's why council want to take our time on this.”

'If you move too fast'

TIFs often are used to help stimulate private investment in municipalities, incentivizing growth and repair in areas of need.

The former Dixie Cup factory has sat vacant and degrading for decades, and advocates say the TIF for developers would go a long way toward revitalizing it.

Goffredo said some entities may have been able to develop such a massive project without the help of a TIF, but it would be an incredibly difficult task.

County Community and Economic Development Director Tina Smith said Wilson Borough Council has the TIF on its July 8 meeting agenda, and Wilson Area School Board will consider the matter Aug. 12.

“We're looking at August 13 for our public notice to be advertised, the TIF ordinance introduction on September 5, the public hearing on September 19, and the final vote on October 17,” Smith told council.

Councilman Jeff Warren questioned how quickly the county would have to act on the ordinance, and asked Smith whether it could wait until October or even further before being adopted.

Smith said council wouldn't need to even hold a hearing until September, provided they follow other procedural rules related to voting on ordinances.

“I can tell you right now, if you move too fast, I know where this is going to go," Warren said.

"So you may want to give council the opportunity to decide when they want to vote on it, but that's just my opinion. There's eight other people here."

'I have more questions'

Goffredo, who introduced the original ordinance on May 2 with Jeffrey Corpora, said the additional time also would let council further research the proposed apartment building.

“I have more questions about what the rent will actually be," Goffredo said. "I know, they give us projections, but I'd like to see a little bit more finalized and committed.

“And then I also really do want to see what the borough has to say through that. I really think this definitely affects them much more than affects the county as a whole.

"And if it's something that they really, really want, that will mean a lot more to me personally, and I'm sure more to people in council as well.”