Dixie Developer Offers More Money for Low-Income Housing During County Hearing on Tax Break
The old Dixie Cup building as seen from near the 25th Street/Route 22 interchange.
April 16, 2026
— Jeff Ward, Lehigh Valley News Briefs
Northampton County Council held a public hearing Thursday for a property-tax break for the conversion of the former Dixie Cup plant in Wilson Borough into about 400 apartments.
Council will hold a final vote on the break on May 7. The developer’s move Thursday to boost its contribution to lower-income housing may sway that vote.
The Tax Incremental Financing (TIF) would redirect tax on property improvements to the developer Skyline Investment Group and away from the three taxing bodies — the county, the borough and the Wilson Area School District — for 20 years.
Opponents call such breaks a handout to developers, while supporters say some projects need help to get off the ground, creating jobs, boosting economic activity and in time adding to the tax base.
Council rejected the TIF last year, but after elections in November, the composition of the nine-member board changed. The other two taxing bodies — Wilson and the Wilson Area School District — support the TIF.
Opponents have also said the developer’s proposed $1.3 million payment toward the county’s affordable housing program wasn’t enough.
Skyline raised its offer Thursday to $2 million.
Skyline Managing Partner Brian Bartee said the county’s financial leverage allows it to provide more low-income housing than the developer could, and that the $2 million would cover the county’s portion of the TIF.
Council President Ken Kraft said the $2 million means the county is now covered for lost taxes and that a “no” vote would be “bone-headed.”
“We’re not losing a dime,” Kraft said.
Residents against the TIF mentioned handouts, a potential county property-tax increase, and the need for “affordable housing.”
County Executive Tara Zrinski said new apartments at about $2,500 per month would provide places for people now paying perhaps $1,600 who want to move up, opening up lower-cost housing. The decaying Dixie building had many problems, she noted. Zrinski has not always supported tax breaks, but she favors the TIF for Skyline.
The old Dixie plant has been mostly vacant for about 40 years. A previous plan to use it as a warehouse failed.
The building has been little-used since Dixie shut down decades ago. The land off 25th Street, near the Route 22 intersection, is near Wilson Area High School and Easton Area High School.
The TIF portion of Thursday’s County Council meeting ended at 8:08 p.m.
1921 AT DIXIE AVENUE TAX INCREMENT FINANCING DISTRICT
NORTHAMPTON COUNTY, PENNSYLVANIA
In accordance with the Tax Increment Financing Act, Act 113 of 1990, as amended, 53 P.S. §6930.01 et seq., the Council of Northampton County, Pennsylvania will hold a public hearing on April 16, 2026 at 6:30 p.m., prevailing local time in the Northampton County Council Meeting Room, 3rd Floor Council Chambers, 669 Washington Street, Easton, Pennsylvania 18042. A possible vote on the ordinance may take place on May 7, 2026 at 6:30 p.m., prevailing local time, in the Northampton County Council Meeting Room.
The purpose of the public hearing is to present and review the proposed 1921 At Dixie Avenue Tax Increment Financing Plan (the “Plan”) for the project known as the 1921 At Dixie Avenue Tax Increment Financing District (the “District”).
The proposed District is located in the Borough of Wilson and within the Wilson Area School District and consists of two tax parcels, County Parcel ID Number L9-40-1A (Lot 1A0837), in the approximate size of 9.81 acres and County Parcel ID Number L9-40-1B (Lot 1B0837), in the approximate size of 2.77 acres, consisting of the former Dixie Cup factory site and an adjacent parking area, located at 315 South 24th Street, Easton, Pennsylvania.
The Tax Increment Financing Plan will be implemented by the Northampton County Industrial Development Authority. The Authority proposes to issue two or more series of bonds or notes to assist in completing certain costs of the project as described in the Plan and to pay a portion of related borrowing costs, which bonds or notes will be paid from the proceeds of incremental tax revenues generated within the District over a period of 20 years.
At the public hearing interested parties will be afforded a reasonable opportunity to express their views on the concept of tax increment financing; the proposed creation of the District and its proposed boundaries, the proposed adoption of the Plan for such District, and the benefits to the Borough, the County, and the Wilson Area School District.
Those unable to attend the hearing may provide written comments to the Council of Northampton County by the close of business on April 10, 2026. Those comments may be sent by U.S. mail or other delivery to Alene M. Shafnisky, Clerk to County Council – TIF Comments, Office of Northampton County Council, Northampton County Government Center, 669 Washington Street, Easton, PA 18042 (with copy to Northampton County Solicitor’s Office, Northampton County Government Center).
A copy of the Tax Increment Financing Plan is available for inspection at the Administrative Offices of Northampton County and the Office of Northampton County Council, Northampton County Government Center.
Lehigh Valley News Briefs 