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Quincy council advances second reading of food-and-beverage tax and narrows economic-growth fund toward tourism, sports
Summary
On second reading, city planning staff presented results from the economic-growth fund and proposed focusing future grants on tourism and sports events; council members raised a possible sunset clause but took no final vote.
The Quincy City Council advanced a second reading of an ordinance that would establish a prepared food-and-beverage and alcoholic beverage tax and amend the city's Economic Growth Fund, with staff urging the council to prioritize tourism and sports-related investments.
Planning Director Jason Perre presented details during the council's meeting, describing the fund's original focus on retail, tourism and talent and summarizing outcomes from prior awards, marketing contracts and grant programs. "When the economic growth fund was established, [it] looked at three different areas: retail, tourism and talent," Perre said, adding the city has used the fund to support retail redevelopment and event grants that staff say produced measurable local investment and tax growth.
Perre told the council the fund helped attract private investment into vacant retail anchors, citing the Kmart redevelopment (developer payments to date of roughly $350,000 to $400,000, with eligibility up to $1,000,000 tied to sales tax) and a Dunham's project (about $200,000 paid). He said the city's sales-tax receipts rose from about $9.7 million in 2019 to roughly $12.7 million in 2024.
The presentation highlighted tourism-related programs paid from the food-and-beverage revenue, including marketing contracts with a tourism vendor and a "bet on Q" grant program that staff said generated about a 7:1 return on investment: roughly $2.1 million in estimated visitor spending against about $350,000 in grants. Perre also reviewed a now-closing talent-attraction reimbursement program (Q RAP), noting applications were halted in April 2024 and that five or six outstanding applicants remain in process.
On sports tourism, Perre described a feasibility study for an indoor multi-court complex (estimated size ~100,000 square feet and cost between $35 million and $45 million). The study projected the facility could host about 37 events a year, draw roughly 91,000 overnight stays annually and produce an estimated $13 million in local economic impact, according to materials Perre presented.
Council members asked whether the proposed ordinance included a sunset clause for the tax. Perre said the ordinance as drafted does not set a sunset date and that the council retains the power to revisit or repeal the tax in the future. An alderman suggested adding a sunset clause for periodic review; others said the council can revisit the issue at any time without a sunset.
The second reading continues the ordinance process; Perre said a third reading is planned for the next meeting. No final vote on the tax or the amended fund language was taken at Tuesday's meeting.
The council's discussion framed the ordinance as shifting the Economic Growth Fund's allowable uses toward tourism and sports programming while preserving council oversight of individual grants and awards.
