Public hearing on Dixie Cup redevelopment draws debate over affordable‑housing opt‑out fee and tax‑increment financing

Northampton County Council held a public hearing Oct. 16 on a proposed tax‑increment financing (TIF) district that would support redevelopment of the Dixie Cup manufacturing complex into a roughly 405‑unit residential project. The hearing was advertised as required by Pennsylvania TIF law; counsel for the developer entered required documents into the record and the council confirmed the ordinance will be considered at its Nov. 6 meeting.

Jonathan Cox, public finance counsel for the developer, told the council the plan contemplates gross bond proceeds of about $26 million and net proceeds of just under $20 million for the project, with two bond series proposed (roughly $5 million series A and $15 million series B). His explanation said the series A bonds would be secured by TIF revenues and the b bonds would be secured by a second lien on TIF revenues plus a first and exclusive lien on special assessments if needed. Cox said the county’s share of foregone incremental taxes under the draft plan is the smallest of the three taxing bodies involved (county, borough and school district).

Developer…