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LEHIGH VALLEY WEATHER

County discusses tax district for old Dixie Cup site

Northampton County Council expects to vote next month on the creation of a special tax district for the old Dixie Cup property in Wilson that supporters said would aid redevelopment of the property.

Council discussed the proposed tax increment financing district, hearing details from both sides at its April 16 meeting.

If the district were created, the developer, Skyline Investment Group, would not be required to pay any taxes on the reassessed tax value of the property after development for 20 years. They would continue to pay taxes on the property’s predevelopment value.

Both Wilson Borough Council and Wilson Area School District, which would also be affected, have both unanimously approved the district.

“I’m hoping the third time is the charm,” said Don Barrett, Wilson Borough mayor, referencing previous votes against the district. “For decades, this site symbolized what a community had lost. Today, it represents progress and what we might gain.”

That community support from elected officials represents a key point, said Kelly Keegan, District 2 council representative.

“If the project stops because the TIF does not pass because five people on this board who do not even live there do not support it, then Wilson will not get any tax revenue,” Keegan said. “It’s a beautiful project if you look at it. They are going to get a lot of tax revenue. If this does not happen, Wilson gets nothing. The building will continue to sit there and rot. Two million dollars will not go toward affordable housing. All Wilson will get is their dilapidated Dixie building.”

However, some area residents stood opposed.

“After all these years of being in Wilson Borough and paying my fair share, I never received a lick of help,” said James Bundro, a Wilson resident who stated he was a landlord for 30 years. “I don’t think it’s fair to have a developer come in and receive such big handouts when you have people in Wilson Borough for 35 years or 41 years and they are not getting any credit or help.”

Multiple speakers also called on the county council to significantly increase the fee the developer is paying to offset its affordable housing requirement, saying the current deal would not do enough to benefit affordable housing in the county.

The developers said they plan to build 405 apartments on the property. Under part of the plan, the developers initially agreed to pay a $1.3 million fee to the county’s affordable housing fund in lieu of including 40 units on the property itself that would qualify as affordable housing.

Skyline is willing to increase that amount to $2 million, said Brian Bartee, Skyline Investment Group managing partner.

“I have tried to operate in good faith,” Bartee said, adding he decided that morning to give the county all of the revenue up front to minimize their exposure. “Like, the boiler house (part of the project) might not be able to be built because we cannot afford it, but we can do that a little later on. I am de-scoping the project to try to make the county happy. I hear the people. I am doing the best I can.”

Two million dollars would replace the estimated tax revenue that Northampton County government would give up by agreeing to the district, said Ken Kraft, council president.

“They are giving it to us,” Kraft said of the $2 million. “Saying ‘no’ to this project would be the most boneheaded thing you could possibly do because you are not losing anything.”

Tara Zrinski, Northampton County executive, joined multiple council members in expressing support, noting all of the work the developer has done on the property and will do moving forward that the county will not have to.

“This blighted property, I do not know how many times it has come before us, but there are far worse developers that would have never remediated this property or developed it to the extent that this developer has taken the initiative to do at this moment,” Zrinski said. “I believe this could be a partnership for the future.”

A vote is currently scheduled for council’s May 7 meeting, Kraft said at the end of the discussion.

In other news from the April 16 meeting, Zrinski updated council on her first 100 days in office.

“It feels like a blur, but we are moving the county forward in a meaningful way,” she said.

The approval of a human relations ordinance in March, along with making progress on transitioning to electronic records in areas, creating a communications manager position and working on the Gracedale Nursing Home situation were all key highlights of her first 100 days, Zrinski said.

Despite the accomplishments, more work remains, Zrinski reported.

“When I look at these first 100 days, I see a lot of momentum,” she explained. “I see a county government that is becoming more connected, more transparent and more responsive. I see teams working across traditional boundaries to solve problems in smarter ways, and I see the beginning of something much bigger, a county government that is not only managing today’s challenges, but preparing responsibly for tomorrow’s opportunities.”

Elsewhere, council approved appointments to the election commission, industrial development authority, Lehigh Valley Planning Commission and Lehigh Valley Workforce Board.

County council also approved contract resolutions for HT Lyons Inc. for HVAC maintenance at a cost of $367,606 spanning three years; Johnson Controls for HVAC controls maintenance at a cost of $166,552 over two years and nine months; Omnes LLC for consulting on Livable Landscapes projects at an estimated cost of $175,000 depending on services rendered; and Patriot Workwear for sheriff’s department uniforms at a cost of $42,595 per year for at least five years.

All approvals by council were unanimous.