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.
$185 million Dixie Cup redevelopment to proceed as tax break debate continues; early-morning fire at site under investigation
The conversion of the old Dixie Cup factory in Wilson into a large apartment complex is moving forward even as local officials debate a proposed tax financing plan and investigators probe an early-morning fire at the site. The redevelopment is a $185 million project that would transform the factory into roughly 405 apartments and mixed-use space on more than 10 acres.
Project funding and the TIF controversy
Officials are weighing a Tax Increment Financing (TIF) proposal that would use the increase in property tax revenue from the finished project to pay down initial construction loans over 20 years. Two local taxing bodies have already approved the plan, and the county-level vote is pending. County Council has scheduled a public hearing for October 16 and could take a final vote on November 6.
The county Industrial Development Authority completed work on the proposal and would need to issue about $20 million in bonds to create the TIF district. The draft financing plan for the TIF is around $26 million. Under the proposal, the developer would continue to pay current property taxes but would see lower taxes while redevelopment is underway. Some county leaders raised concerns about the length and size of the TIF.
Developer stance and local support
The developer said the project can be restructured and proceed even if county officials do not approve the TIF, though county backing is preferred. Borough and school district officials urged county approval, noting prior redevelopment efforts for the site failed and that this plan offers a long-awaited opportunity to remake a prominent corner in the borough.
The developer indicated average monthly rents are planned to be about $2,450. Instead of providing on-site affordable units, the developer proposed an in-lieu payment of $1.1 million to the county directed toward affordable housing needs.
Early-morning fire at the Dixie Cup building
Firefighters were dispatched to the site early on a Friday morning after smoke and flames were spotted on the building roof. Crews arrived shortly after the initial call and focused efforts on the upper floor and roof area on the south side. The blaze was brought under control within about 30 to 45 minutes, with smoke clearing by mid-morning.
The fire was largely confined to a section of the roof and top floor. No injuries were reported. About 13 fire departments and roughly 60 firefighters responded, using four aerial ladders to douse the flames. The building is mostly vacant and has no active electrical service on the upper levels, which prompted fire officials to label the blaze suspicious and open an investigation.
The local fire department is leading the investigation with assistance from state police and the federal Bureau of Alcohol, Tobacco, Firearms and Explosives. Investigators are reviewing building access and surveillance footage and have not yet canvassed nearby neighborhoods for camera footage. Demolition and asbestos removal work has been underway at the building; no asbestos removal was taking place on the top floor at the time of the fire, according to project representatives.
Site condition, history and redevelopment details
The four-story factory, idle for long stretches since early in the 2000s, measures roughly 630,000 to 641,000 square feet depending on the report. The building housed cup manufacturing for decades before production moved away. The developer bought the property after it had been unsuccessfully marketed for decades by a prior owner.
Work already completed includes removal of more than 700 windows and interior demolition to clear asbestos. The iconic oversized Dixie Cup sculpture that has sat on the roof for decades will be removed because it is no longer structurally safe. Plans call for refurbishing and relocating the original sculpture to a public park on site and fabricating a rooftop replica to preserve the visual landmark along a nearby highway.
The developer also recently acquired an adjacent closed fitness center and said additional community development is planned. Local planning and county executive staff recommended the redevelopment proceed, citing benefits for the borough and region.
Other local infrastructure news
County officials also updated County Council on a nearby bridge replacement project on Meadows Road in Lower Saucon Township. Utility relocation is complete, a pier was installed, and abutment work is ongoing. The project could see paving this fall if weather allows; otherwise, completion is expected next spring. The bridge replacement has an estimated cost of about $3 million and would restore a route that has been closed since a major opening appeared in the historic span several years ago.
What happens next
County public hearings and votes on the TIF will determine whether the county becomes a formal partner in the financing plan. Separately, the fire investigation will assess cause and whether anyone unlawfully entered the vacant structure. The developer has said the fire is not expected to delay demolition or construction timelines.
Frequently Asked Questions
Is the Dixie Cup redevelopment going forward?
The developer intends to proceed with the project. Financing can be adjusted if county support for the proposed TIF is not approved, though county backing is preferred.
What is a Tax Increment Financing plan?
A TIF uses the increase in property tax revenues generated by new construction to repay loans or bonds used to fund project improvements for a set period, in this case proposed as 20 years.
How much will the project cost and how many units are planned?
The redevelopment is estimated at about $185 million and is planned to include approximately 405 apartments along with mixed-use space.
Were there injuries in the early-morning fire?
No injuries were reported. Firefighters contained the fire to a section of the roof and upper floor; the response included about 13 departments and roughly 60 personnel.
Who is investigating the fire?
The local fire department is leading the investigation with assistance from state police and the federal ATF. Investigators are reviewing building access and security footage.
Will the iconic Dixie Cup sculpture be preserved?
Plans call for removing the existing cup, restoring it for display in a planned on-site park, and installing a fabricated replica on the rooftop to keep the landmark visible.
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Key project facts at a glance
| Feature | Detail |
|---|---|
| Estimated project cost | $185 million |
| Planned apartments | About 405 units |
| Average planned rent | Approximately $2,450 per month |
| TIF length | 20 years |
| Proposed TIF bond amount | About $20 million in bonds; draft TIF around $26 million |
| In-lieu affordable housing payment | $1.1 million |
| Site acreage | More than 10 acres |
| Building size | Approximately 630,000 to 641,000 sq ft |
| County public hearing date | October 16 |
| Potential county vote date | November 6 |
| Fire response | About 13 departments and ~60 firefighters; fire contained to roof/top floor; no injuries |
| Bridge project update | Meadows Road Bridge replacement progressing; estimated cost about $3 million; potential paving this year or completion next spring |
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 FL News
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