WILSON BOROUGH, Pa. – The Wilson Area School District Board of Directors heard a presentation Monday night from the developer who hopes to receive approval for a tax concession.
The application involves 1921 at Dixie, a redevelopment proposal for the former Dixie Cup factory offered by New York-based Skyline Investment Group Easton LLC.
The proposed development calls for 405 apartments and a restaurant at 12 S. 24th St., along with improvements to an existing parking lot at the Washington Boulevard and South 22nd Street intersection. The industrial facility has been vacant for more than four decades and is considered a "brownfield" in development terms, which means an old industrial site.
The proposed complex is expected to cost the developer roughly $155 million, translating to about $383,000 per unit. Given this, the developer wants to secure Tax Increment Financing — an economic development tool that involves selling a bond and repaying the debt through future tax revenue.
In order for Skyline to receive the TIF, it must obtain the approval of the three Wilson Borough taxing bodies: Wilson Borough, Northampton County and the school district. Should the developer prove successful, it could provide up to $29 million.
On Monday night, Skyline officials indicated a total of $2.5 million in up-front revenue would go to Wilson Area School District. Officials told directors there were three financial components to the development which would result in funds for the district. Those three components are property taxes, earned income tax and the up-front money.
Brian Bartee, founder of Skyline Investment Group, told directors the project would create employment for between 40 to 45 individuals.
"I'm going to help Wilson Borough as much as I can," Bartee told the board. "...I am going to be a good community partner."
Roughly 300 apartments would be one-bedroom units starting at roughly $1,900 per month, according to previous comments by Skyline officials. The remaining 25% are scheduled to be two-bedroom apartments. The average rent for all the units will be about $2,300 each month.
During testimony last month before the Wilson Borough Council, Neil Griffin, senior project manager at Chasm Architecture and the consultant working with the developer, told council the project "would appeal to a broad number of people." He added the project would be one of which Wilson could be proud.
The developer will implement various improvements. Those include a public plaza on 25th Street along with rehabilitating the famous Dixie Cup, which has adorned the building's roof for years, and then placing it adjacent to the proposed plaza. Griffin further stated they would then build a new cup which would replace the old cup on the building's roof.
While these are essentially community contributions, some of the development's projects will be strictly for tenants. Griffin said that would involve a pool, fitness center, and co-working spaces.
Directors offered no vote on the TIF Monday night. The vote is scheduled for Aug. 12.
