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Public hearing scheduled for proposed tax subsidy for former Dixie Cup factory redevelopment

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  Published in Business and Finance on Friday, September 19th 2025 at 2:27 GMT by WFMZ-TV
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Northampton County to Hold Public Hearing on Proposed Tax Subsidy for Former Dixie Cup Factory Redevelopment

The former Dixie Cup factory—a once‑thriving manufacturing hub that sits on a 27‑acre parcel in Northampton County—has resurfaced on the county’s development agenda after a developer secured a conditional agreement with the county government. On Wednesday, July 10, 2024, the county’s Planning Board will hold a public hearing to review a proposal that would grant the project a significant tax‑subsidy package, including property‑tax abatements, infrastructure improvements, and a structured repayment plan. The hearing is the first step in a multi‑stage process that could bring new jobs, mixed‑use housing, and retail space to a long‑vacant site, but it also opens the door for residents and community groups to weigh in on the potential impacts.

A Long‑Term Vacancy and a New Vision

The Dixie Cup plant, which closed in 2014, has been vacant for more than a decade. The original building, a 300,000‑sq‑ft steel‑frame structure, was a key part of the region’s industrial heritage. In early 2023, the property was purchased by R. B. Development Partners, a local firm headed by former industrialist John Carter. The company presented a redevelopment plan that includes:

1. Mixed‑use conversion – 150 residential units (60% affordable), a 10‑story office tower, and a ground‑floor retail plaza.
2. Green space – 5 acres of landscaped park and pedestrian pathways.
3. Historic preservation – Retention of the factory’s iconic brick façade and a small museum dedicated to the region’s manufacturing past.
4. Transportation upgrades – Improvements to the adjacent roadways, including a new bike lane and a dedicated bus stop.

“We want to honor the legacy of Dixie Cup while re‑imagining the site for the future of Northampton County.” Carter told a preliminary briefing held in the county’s municipal building. The development plan, submitted in March, requires approval of a $3.5 million tax‑incentive package that would give the developer a property‑tax abatement for the first ten years, a one‑time infrastructure contribution of $700,000, and a structured repayment schedule tied to the building’s revenue.

The Tax‑Subsidy Package Under Scrutiny

County Planning Commissioner Lisa Ortiz explained that the proposed package was designed to offset the upfront cost of revitalizing a brownfield site. The abatement would be calculated on the property’s assessed value after renovation, which the board estimates could exceed $45 million. The repayment schedule, if approved, would see the developer repay the county over a 15‑year period based on net operating income.

Commissioner Ortiz noted that the county has previously approved similar incentives for other redevelopment projects, such as the former Baker Mill in Allentown and the St. James Factory in Bethlehem. “The county’s Economic Development Incentives Program is meant to stimulate growth and create jobs, especially in areas that have suffered from industrial decline,” she said.

However, the tax‑subsidy request has raised eyebrows among local residents and community advocates who fear that the incentives might set a precedent for future projects and dilute county revenue. A coalition of neighborhood associations, represented by Emma Lee of the Northampton County Residents’ Alliance, said they would attend the hearing to raise concerns about traffic congestion, parking shortages, and the potential erosion of the tax base.

Community Voices and Political Implications

During a brief “public comment” session held earlier this month in the county courthouse, residents voiced a mix of support and caution. “I love the idea of new homes and jobs,” said Carlos Ramirez, a local small‑business owner, but added, “We also need to see how the project will affect our roads and schools.”

The proposal is politically charged because it coincides with the upcoming county board elections in November, where the incumbent County Commissioner Tom Reynolds is facing a primary challenge from a challenger who emphasizes fiscal conservatism. Reynolds has publicly endorsed the Dixie Cup redevelopment as part of his broader plan to attract “in‑state and out‑of‑state investment” to Northampton County.

Opponents, however, have pointed out that the tax‑subsidy package could amount to $10 million in lost revenue over a decade if the developer’s projections are overly optimistic. They also question whether the proposed mixed‑use building meets the county’s zoning codes and whether the developer has secured adequate environmental remediation for the brownfield site.

The Northampton County Planning Board will hear from several parties, including:

• R. B. Development Partners – Detailed presentation of the financial model and projected job creation figures.
• County Commissioner Lisa Ortiz – Summary of the county’s incentive policy and expected economic benefits.
• Community Representatives – Public comment on the project’s impact on the neighborhood and county finances.
• Economic Development Advisor – Assessment of the broader regional impact and alignment with the county’s strategic plan.

What Happens Next?

The hearing is scheduled for Wednesday, July 10, 2024, at 10 a.m., at the Northampton County Municipal Center. The Planning Board’s decision will not be final; if the board approves the tax‑subsidy package, the developer will still need to secure state and federal environmental permits, complete a traffic impact study, and finalize a contract with the county detailing the terms of the abatement and repayment schedule.

If the board rejects or partially rejects the proposal, the developer can revise the offer, negotiate a different incentive structure, or, if negotiations fail, walk away from the project. The county also has a 90‑day period to consider the plan after the hearing, during which it may convene a special committee for further analysis.

In the meantime, the public is encouraged to attend the hearing and to review the full redevelopment proposal, which is available on the county’s website under the “Economic Development” tab. The document includes detailed site maps, zoning maps, environmental assessments, and a financial model that projects 1,800 jobs and $25 million in new tax revenue over a 30‑year horizon.

Bottom Line

The upcoming public hearing on the proposed tax subsidy for the former Dixie Cup factory redevelopment is a pivotal moment for Northampton County. It represents an opportunity to transform a long‑abandoned industrial site into a vibrant mixed‑use community, but it also carries significant fiscal and community implications. Residents, developers, and county officials alike will have to balance the promise of economic revitalization against the realities of public financing, traffic infrastructure, and community character. The final decision will likely shape not only the future of the former Dixie Cup site but also the broader trajectory of economic development in the county.