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.
Early-morning fire at former Dixie Cup site; $185 million apartment redevelopment to move forward amid county TIF debate
A large redevelopment of the old Dixie Cup factory in Wilson is set to continue after an early-morning fire at the site, even as local officials debate a tax financing plan intended to help pay for the work. Emergency crews brought the blaze largely under control within about an hour, there were no reported injuries, and investigators have labeled the fire suspicious as they probe what started it. The redevelopment remains on track as the developer says financing can be adjusted if county approval for a tax break is not granted.
Fire response and investigation
Fire crews were called just after 6:30 a.m. to reports of smoke and flames on the roof and upper level of the four-story factory. Firefighters used four aerial ladders and focused efforts on the south side roof and top floor. Roughly a dozen departments and about 60 firefighters joined the response. The fire was brought under control in about 30 to 45 minutes, though crews remained on scene longer to fully extinguish hotspots. No injuries were reported, and there were no road closures.
The building had no electric service at the time, and parts of it were being cleared of asbestos as part of interior demolition work. Because of the lack of power and other heat sources on the upper floors, fire officials have classified the blaze as suspicious. The local fire department is leading the investigation with help from state police and the federal Bureau of Alcohol, Tobacco, Firearms and Explosives. Investigators plan to review nearby security camera footage and other evidence, and they have not yet canvassed all nearby homes and businesses for possible video.
Project status and developer response
The developer who owns the property has stated the fire will not delay the overall project timeline. The conversion plan would turn the mostly vacant factory into hundreds of apartments, with earlier plans showing about 405 apartments inside roughly 641,000 square feet of building space. The developer has already removed more than 700 windows, started asbestos abatement and other interior demolition work, and intends to remove the giant Dixie Cup landmark from the roof, restore it for display in a planned park on the site, and install a replica on the rooftop.
The property includes more than 10 acres made up of the factory and an adjacent parking lot. The long-vacant building has been described by the developer and others as largely gutted and structurally sound but in need of major mechanical and roofing work. The developer watched firefighting operations on site alongside the property’s longtime former owner and thanked crews for a quick response.
TIF debate and financing options
The redevelopment has become the focus of a Tax Increment Financing plan under review by local taxing bodies. That plan would allow increased property tax revenue created by the redevelopment to be used to help pay off initial construction loans over a period of 20 years. The borough and the local school district have already approved the TIF plan. The county’s Industrial Development Authority adopted the plan and forwarded it to County Council for a final decision.
County Council scheduled a public hearing on the TIF for Oct. 16 with a possible vote on Nov. 6. During a Finance Committee meeting, some council members raised concerns about how long the TIF would run and how much revenue would be redirected. The developer said it is possible to restructure financing if the county does not approve the requested tax arrangement, though county approval is preferred for the certainty it provides.
Details under discussion include a roughly $26 million TIF package that would be tied to bond issuance of about $20 million by the county authority. Under the proposed setup, the developer would continue to pay current property taxes but would pay reduced taxes while improvements are made. The developer has proposed an in-lieu payment of $1.1 million to the county instead of providing affordable units on site; average market rents for the planned apartments were described in the developer’s materials at around $2,450 per month.
Local support, concerns and next steps
Borough leaders and the school board urged county approval, noting long-standing failed redevelopment efforts on the parcel and the potential to transform a prominent corner of the community. Some county officials expressed skepticism about the deal’s terms and asked whether the developer could proceed without county support. The developer communicated a desire for county backing but also said the project can move forward with alternate financing if needed.
The next formal steps include the county’s public hearing and potential vote on the TIF, continued investigation into the fire, and ongoing demolition and remediation work on the building. The planned public park on a triangular parcel near 25th Street is expected to house the restored giant cup sculpture once it is removed from the roof.
Other local infrastructure update
County officials also reported on a nearby bridge replacement project. Utility lines have been relocated and bridge piers and abutments are in place. If weather cooperates, the new road could be paved this year; otherwise the project remains on track for spring completion. The bridge work, which began in December, is estimated at about $3 million and would reopen a closed crossing that has been out of service since a large hole prompted its closure several years ago.
What to watch
- Outcome of the county public hearing on the TIF scheduled for Oct. 16 and any vote set for Nov. 6.
- Results of the fire investigation and any discovered causes or security findings.
- Progress on asbestos removal, roof work, and removal of the Dixie Cup sculpture.
- Final financing terms and timing for construction work that will convert the factory into apartments.
FAQ
Is anyone hurt in the fire at the old Dixie Cup building?
No injuries were reported. Fire crews brought the blaze under control quickly and focused on the roof and upper floor.
Who is investigating the fire?
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 security footage and other evidence.
Will the redevelopment be delayed because of the fire?
The developer says the fire will not delay the overall project schedule. Roofing and demolition work on the damaged area is expected to follow the firefighting response.
What is Tax Increment Financing and how does it apply here?
Tax Increment Financing, or TIF, uses the higher property tax revenue produced by a redevelopment to pay back bonds or loans taken out to fund improvements. The proposed TIF for this project would last 20 years and was approved by the borough and the school district; the county is still reviewing it.
How many apartments and how large is the building?
Plans have shown about 405 apartments inside a building roughly 630,000 to 641,000 square feet in size.
Will affordable housing be included?
The developer plans to make a payment of about $1.1 million to the county instead of providing on-site affordable units, based on the current proposal.
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Key project features
| Feature | Detail |
|---|---|
| Estimated project cost | $185 million |
| Building size | About 630,000–641,000 sq ft |
| Planned units | Approximately 405 apartments |
| Proposed TIF amount | Approximately $26 million |
| Bonds needed for TIF | About $20 million |
| TIF duration | 20 years |
| Average rent estimate | Around $2,450 per month |
| Affordable housing payment | $1.1 million in lieu of on-site units |
| Site acreage | More than 10 acres |
| Fire response | About 60 firefighters from 13 departments; roof/upper floor focused |
| Investigation lead | Local fire department with state and federal assistance |
| Nearby bridge project cost | About $3 million; possible reopening in spring or June depending on work |
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 CA News
CALIFORNIA STAFF WRITER The CALIFORNIA STAFF WRITER represents the experienced team at constructioncanews.com, your go-to source for actionable local news and information in California and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Rose Parade, Coachella, Comic-Con, and the California State Fair. Our coverage extends to key organizations like the California Building Industry Association and Associated General Contractors of California, plus leading businesses in technology and entertainment that power the local economy such as Apple and Alphabet. As part of the broader network, including constructionnynews.com, constructiontxnews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic landscape across multiple states.
