EASTON, PA. – The deteriorating former Dixie Cup factory in Wilson Borough could soon become businesses and apartments, Northampton County Executive Lamont McClure told county council Thursday.
- The former Dixie Cup factory could become a mixed-use residential and commercial development, the Northampton County executive said
- Executive Lamont McClure said his administration agreed “in principle” with builders to provide some funding for the project through tax increment financing, subject to council’s approval
- McClure did not identify the developer, but said more details would likely emerge “very shortly”
He said the site, currently a brownfield, will become a mixed-use residential and commercial development.
The landmark Dixie Cup building has long been a top candidate for redevelopment, but finding a builder and project able to actually begin construction has proved difficult.
While McClure declined to name the developer behind the project, citing their yet-to-be-finalized purchase of the property, he said his administration has agreed “in principle” to fund construction in part through a county tax increment financing bond.
"In the context of getting this very difficult-to-redevelop property developed, we are negotiating with them over the terms of the [tax increment financing]."Northampton County Executive Lamont McClure
The program effectively loans a developer money fronted by issuing a bond. The county, in turn, expects to repay the bond by collecting higher property taxes on the more valuable development.
“I don’t necessarily favor TIFs,” said McClure, “but in the context of getting this very difficult-to-redevelop property developed, we are negotiating with them over the terms of the TIF.”
If McClure and the developers arrive at an agreement, county council will need to approve the final tax increment financing plan.
McClure told council the developer’s identity, along with more details about plans for the Dixie Cup site, will emerge “very shortly.”
The building has sat mostly vacant for 40 years since the company moved its manufacturing to Forks Township. Located in Wilson Borough off Northampton Street and Route 22, it holds about 600,000 square feet of space.
Owned by attorney Joseph Reibman, the property had been listed for sale earlier this year at $10 million.
The Forks Dixie Cup facility, too, recently closed, after parent company Georgia-Pacific moved cup manufacturing to its Lexington, Kentucky plant.
