Finance committee backs land-disposition agreement for 1620 Hancock Street

The Quincy Finance Committee voted Sept. 8 to recommend approval of a land-disposition agreement (LDA) that would sell 1620 Hancock Street to a private developer, provided the buyer meets permitting and construction timelines required by the contract.

The agreement covers a roughly 11,000-square-foot vacant site that was taken by the city by eminent domain in 2022 and whose redevelopment officials say would be coupled with an adjacent parcel to create a larger downtown project. Committee members argued the deal would replace long-standing blight and boost tax revenue and private investment in the downtown.

Mr. Walker, speaking on behalf of Mayor Koch, told the committee the city acquired the property by eminent domain in 2022 for $2,200,000 and is proposing to sell it as part of a larger redevelopment package. "This is a site that sat vacant, blighted, and producing $12,000 in property taxes," Walker said. "When all said and done here, the two properties together will produce $700,000 in property taxes for the city of Quincy." He added the developer will be responsible for required public improvements, including new and expanded sidewalks, and that the LDA contains timing requirements for permitting and construction.

Walker described the appraisal difference between the 2022 eminent-domain valuation and the current proposed sale price as a result of how appraisals for eminent domain are performed "in a vacuum" versus how appraisals consider development constraints and requirements in disposition sales. He said the proposed sale price is $1.9 million.

Councilor Jim Devine, who made the motion in committee, framed the LDA as a standard urban-renewal tool and argued the site has been a downtown drag for more than two decades. "For me, it's kind of a no brainer," Devine said, and indicated he would support recommending the agreement to the full council.

Council members asked staff to clarify timing, tax treatment and financial protections. Committee members were told district improvement financing (DIF), a state-authorized program, has been used to fund downtown public improvements and that new tax growth from the development would be used to help finance such improvements. On construction timing, staff said the LDA gives the developer 120 days from closing to begin work with an anticipated "shovel in the ground" in the first quarter of the next year and roughly 2 to 2.5 years to complete the project, subject to standard exceptions such as acts of God.

Councilor Yang pressed staff on contractual protections if the developer fails to perform. Walker said the city may place the purchase funds into an escrow account at closing; if the project proceeds as planned the escrow funds would be used for capital expenses in the downtown and ultimately flow back into the DIF. If the developer fails to perform, the council was told the city may keep money in escrow and, if necessary, repurchase the property under terms spelled out in the LDA.

The finance committee voted in favor of recommending the LDA. The committee vote was recorded in committee as in the affirmative and the council later reported the finance committee's positive recommendation to the full council during the Sept. 8 meeting.

The LDA discussion included historical context for the site: committee members and staff referenced past businesses including Tassos Pizza and the former Coleman/Blockbuster parcel and noted ongoing adjacent construction such as the project near General's Bridal that committee members said demonstrates downtown momentum. Staff and committee members repeatedly described the proposal as "urban renewal" and emphasized that required public improvements are part of the developer's obligations under the LDA.

Next steps noted in committee: the finance committee recommendation will be part of the council record; any final sale requires closing, satisfaction of permitting and other LDA conditions, and further council action as provided by city procedures.