Wilson, September 22, 2025
News Summary
A $185 million plan to convert the vacant Dixie Cup factory in Wilson into roughly 405 apartments and mixed-use space is moving forward amid debate over a proposed Tax Increment Financing (TIF) plan and an ongoing investigation into an early-morning roof fire. Officials weigh a TIF that would use future tax gains to repay bonds, while the developer says the project can be restructured without county backing. Average rents are planned near $2,450 and a $1.1 million in-lieu affordable housing payment was proposed. Fire crews contained a roof fire; no injuries were reported and the blaze is under investigation.
Developer to press ahead with $185 million Dixie Cup redevelopment as roof fire is probed
A major conversion of the long-vacant Dixie Cup factory into apartments is set to continue despite a county tax incentive debate and an early-morning fire that is now under investigation. The project, valued at approximately $185 million, aims to turn the four-story plant into a mixed-use complex of roughly 405 apartments across more than 630,000 square feet.
Fire incident and investigation
Firefighters responded to reports of smoke and flames shortly after dawn at the property near South 24th Street and Washington Boulevard. The blaze was largely contained to a section of the roof and upper level and was brought under control within about 30 to 45 minutes, with smoke dissipating soon after. There were no reported injuries. Roughly a dozen local departments and about 60 or more firefighters used multiple aerial ladders to douse flames on the south side of the structure.
The building had no active electrical service at the time, and asbestos removal work was underway on interior levels but not on the top floor. Because there were no obvious heat sources, the fire was deemed suspicious. The municipal fire department is leading the investigation with assistance from state police and a federal investigative agency. Officials plan to review available surveillance footage and other leads to determine the origin.
Project financing and tax debate
The developer plans to move forward with or without Northampton County Council’s formal support for a Tax Increment Financing (TIF) arrangement that would help pay initial construction loans using increased property tax revenue produced by the redeveloped site. The TIF proposal under consideration would run for 20 years and is intended to channel property tax gains into repaying construction-related borrowing.
Local municipal partners already approved the TIF arrangement earlier, and the county’s Industrial Development Authority forwarded the plan to County Council after adopting it. The IDA would need to issue roughly $20 million in bonds to create the TIF district. The draft TIF has been described in planning materials as about $26 million in size. County Council scheduled a public hearing in mid-October, with a possible vote in early November.
Developer stance and community response
The developer has said the project can be restructured financially if the county does not provide the requested TIF support, though receiving formal approval from all taxing bodies is preferred. Some council members raised concerns about the proposed length and scale of the TIF. Questions were also raised about rent levels and the affordable housing component of the plan.
The redevelopment plan includes market-rate units with average monthly rents projected at around $2,450. Instead of providing onsite affordable units, the developer proposes a payment in lieu of units totaling about $1.1 million earmarked for the county. Local borough and school district leaders have publicly supported the plan, citing long-standing blight and missed redevelopment opportunities at the site.
Site history and project elements
The factory complex has been largely underused since the early 2000s and had been on and off the market for decades before the current purchase. The developer acquired the former plant and adjacent lot, totaling more than 10 acres. Work to date has included removal of more than 700 windows and interior asbestos abatement. The enormous, iconic Dixie Cup sculpture that has topped the building for decades is considered structurally unsafe in its current position; plans call for relocating the original cup to a small on-site park and fabricating a rooftop replica as a visual landmark.
Timeline and nearby work
The developer said the recent fire will not delay the redevelopment schedule and that roof demolition work was already planned as part of the next construction steps. The county executive and regional planning commission have both recommended the redevelopment proceed. County Council’s public hearing on the TIF is set for October 16, with a potential vote on November 6.
In a separate infrastructure update, county public works officials reported progress on a nearby bridge replacement project estimated at roughly $3 million. Crews have relocated utilities, installed a bridge pier and are working on abutments. The project began late last year and could reopen to traffic as early as June if weather cooperates, otherwise on track for spring completion.
What happens next
The immediate next steps include the ongoing fire investigation, continued site cleanup and asbestos abatement, and local government action on the TIF proposal. The developer has signaled intent to proceed with the large conversion project while seeking county participation in the financing plan but has plans to adapt financing if county approval is not granted.
Frequently Asked Questions
Is the redevelopment proceeding after the fire?
Yes. The developer has stated the early-morning roof fire will not delay planned demolition and redevelopment work, and the project will move forward.
Were there any injuries from the fire?
No injuries were reported. Firefighters contained the blaze to a roof area and no interior firefighting was required because the structure was mostly vacant and without power.
Who is investigating the fire?
The local borough fire department is leading the investigation with assistance from state police and a federal investigative agency. Officials are reviewing surveillance footage and other evidence.
What is a TIF and why is it part of the plan?
A Tax Increment Financing (TIF) plan uses increased property tax revenue created by new development to help pay off loans used for initial construction. The project team has requested a TIF to support early financing.
Has the TIF been approved?
Local borough and school district governments have approved the TIF. The county Industrial Development Authority adopted the plan and forwarded it to County Council. A county public hearing is scheduled, followed by a possible vote.
How long would the TIF run and how much is involved?
The proposed TIF would run for 20 years. Documents describe a TIF in the mid-tens of millions range with bond issuance for the district estimated at about $20 million; draft materials cite figures in the mid-$20 million range for the financing package.
What about affordable housing?
The developer projects average market rents around $2,450 per month and plans a payment in lieu of providing on-site affordable units totaling about $1.1 million.
What are the major project milestones next?
Key near-term items include the fire investigation, continued asbestos abatement and demolition tasks, the county public hearing and potential council vote on the TIF, and subsequent construction permitting and site work.
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Key project features
| Feature | Detail |
|---|---|
| Project value | $185 million conversion to mixed-use apartments |
| Number of units | Approximately 405 apartments |
| Building size | About 630,000–641,000 square feet |
| Average rent (projected) | About $2,450 per month |
| Affordable housing provision | Payment in lieu of units: $1.1 million |
| TIF proposal | 20 years; draft financing in the mid-$20 million range; IDA bond issuance around $20 million |
| Recent site activity | More than 700 windows removed; interior asbestos abatement; rooftop demolition planned |
| Fire details | Roof/upper-level fire, early morning, no injuries, cause under investigation |
| Nearby infrastructure | Local bridge replacement project estimated $3 million, potential reopening in June |
Deeper Dive: News & Info About This Topic
Additional Resources
- The Morning Call: Dixie Cup update (Sept. 22, 2025)
- Wikipedia: Dixie Cup factory Wilson Pennsylvania
- LehighValleyLive: Arson confirmed at landmark Dixie Cup factory (May 2025)
- Google Search: Dixie Cup fire Easton Wilson borough PA
- CBS News Philadelphia: Dixie Cup factory fire (Easton)
- Google Scholar: Dixie Cup factory Wilson PA redevelopment
- LehighValleyNews: Fire breaks out at old Dixie Cup factory (Easton area)
- Encyclopedia Britannica: Dixie Cup factory
- LehighValleyNews Business: Dixie Cup apartment project opening date
- Google News: Dixie Cup factory Wilson Pennsylvania
Author: Construction TX News
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