WILSON, Pa. — Wilson Borough Council and Wilson Area School Board both Monday agreed to terms of a tax relief plan that will let the former Dixie Cup factory be turned into apartments.
The TIF agreement was introduced last month by the developers of the upcoming 1921 at Dixie Avenue apartment building.
Both council and the school board agreed to repeal a former LERTA resolution attached to a previous project at the site and accept a TIF agreement.
Both boards heard presentations for the TIF — which diverts property tax revenue from a particular area to an economic development project — in July, and outside of a few minor issues, the process appeared to go smoothly.
With the successes, the 405-unit apartment complex is on track to close on financing about February 2025 and remove dangerous materials from the existing site.
All taxing bodies have to approve of the TIF arrangement. Northampton County has yet to sign off on it.
Under a TIF, the property owner pays lower taxes for a period while a project is under development, with that money being used to help pay down loans used to fund redevelopment.
‘A much better use'
As the details had previously been laid out, Monday’s procedures moved along quite quickly, with little debate or discussion, especially at the school board meeting.
“It was at this point we had already discussed it, and it had already been discussed with the board, and they have already made a presentation," school board President Judith Herbstreith said.
"All that had been taken care of. So tonight was really just to formalize the dissolving the LERTA, which was in place over the past few years for a previous proposal, and then we approved the resolution to for the TIF. So that's all we did tonight.”
Resident Armando Moritz-Chapelliquen said he has been engaged in advocacy related to the Dixie Cup site for a few years, particularly when another developer worked to develop the site.
“And I thought that that was really a bad idea," Moritz-Chapelliquen said. "I pushed back on that; a lot of folks thought that that wasn't smart, because we need to see the site developed.
"But here we are with a developer and his whole team who wants to do residential, so I think that that's a much better use than where we were two years ago.”
‘A lot of dire needs’
Moritz-Chapelliquen said he was particularly happy to see the developer increase an original offer of $1 million up front for the school district to $1.25 million — with the borough getting $600,000 — which can be utilized for “dire needs.”
"So I think that it's also a matter of kind of community pride, in terms of being happy with going out, seeing your community and seeing it well taken care of.”Resident Armando Moritz-Chapelliquen
“Wilson Borough and Wilson Area School District both have a lot of dire needs," Moritz-Chapelliquen said.
"And there's not a ton of funding that's been coming in to support both of those institutions in terms of addressing some of those needs, whether they're institutional, whether they're the facilities themselves, whether there are issues with walkability or traffic or programming that should be available.
“I mean, also just the fact that we had our ‘Touch a Truck’ event over at the high school just yesterday, the backdrop is this rusted over building.
"It'd be nice to actually have a nice building there instead of just a building with a bunch of broken windows.
"So I think that it's also a matter of kind of community pride, in terms of being happy with going out, seeing your community and seeing it well taken care of.”
Wilson Borough talks BPT
Over at the Wilson Borough offices, council's Monday meeting quickly passed similar motions.
“I think working with the borough and the school district, was an amazing experience," Skyline Investment Group Managing Partner Brian Bartee said.
"They made me feel very comfortable. I definitely feel like part of the community right now, so I don't see any issues at all.”
Borough solicitor Stanley Margle said the borough experienced just a couple hiccups during the process of working with the developer, though the parties were able to reach an agreement.
“So next you're going to start seeing demolition being done at the building: the lead-based paint, the asbestos being removed. So that's what's going to be next on the docket."Skyline Investment Group Managing Partner Brian Bartee
“One of [the issues] was coming to an agreement on a financial payment to the borough to assist us with the establishment of the TIF." Margle said.
"And that was done: $600,000 that will be payable at the time of the closing on the financing, which will take place around February.
“The second issue had to do with what taxes, if any, other than the local real estate taxes, which will essentially be frozen.
"In other words, they're not going to be subject to any increases during the term of the TIF, which is no greater than 20 years.
"But my reading of it is it’s going to be likely 16, maybe 17 years. One of the issues in there that I had a problem with was the inclusion of our ‘business privilege tax.’ Wilson Borough has a ‘BPT,’ business privilege tax, which it sounds like it's a small percentage of certain businesses’ gross income.”
Margle said the BPT is but a fraction of a percentage, “but when you have a business that’s making $100 million, that’s something for the borough.”
The developers originally rejected keeping the BPT in the first draft, Margle said, but eventually left it in.
“So that's going to bring some money to the borough as well,” Margle said.
According to Bartee, these two latest victories put the developer well on the way to moving forward on the highly anticipated residential project.
“So next you're going to start seeing demolition being done at the building: the lead-based paint, the asbestos being removed," Bartee said.
"So that's what's going to be next on the docket."
