City Council votes to create new taxing district for 54th Street development

July 16, 2024 | By J. Robert Gough, Publisher

The new taxing district will add an additional 1 percent sales tax to the developments in a proposed restaurant hub complex at 54th and Broadway. — MRN FILE PHOTO

QUINCY — After the city tabled a proposed sales tax for an Omaha developer to build a new restaurant hub complex at 54th and Broadway, the Quincy City Council voted to create a new $1 million tax incentive to support the effort.

The resolution will create the 54th Street Business Development District and impose an additional 1 percent sales tax to any business created in the zone that will reimburse the developer up to $1 million. The Otis Company of Omaha, Neb. plans to put four restaurants and a convenience store on the northeast corner of 54th and Broadway. The previous proposal called for 50 percent of the sales taxes generated by businesses in the zone to repay Otis.

This tax is modeled after the Mid-Town Business District, which was formed in March 2021, which places a 1 percent retail sales tax on businesses in an area bordered by Broadway, College, 30^th Street and 34^th Street.

City estimates call for the fund to generate approximately $175,000 annually.

Alderman Dave Bauer (D-2nd Ward) asked why the incentive was needed and stated that the Mid-Town District was established primarily to fill vacant buildings while the Otis proposal calls for new construction.

Director of Planning Chuck Bevelheimer said fund had also contributed to new construction, including the Marx Properties development on the northeast corner of 30th and Broadway that now houses a Verizon phone store and Pancheros Mexican restaurant.

Jim Otis met with most aldermen in separate private meetings last week to explain the proposal to them directly. According to some of the aldermen who met with Otis, he said the incentive was needed to remain competitive in the market, claiming he was paying “St. Louis prices” for Quincy property.

The proposal passed 8-5 with Bauer, Jeff Bergman (R-2nd Ward), Kelly Mays (R-3rd Ward), Mike Farha (R-4th Ward) and Tony Sassen (R-4th Ward) opposing. Alderman Eric Entrup (R-1st Ward) was absent.

Former Treasurer Linda Moore also addressed the City Council to say the treasurer’s position needed a salary increase, but also told the aldermen they were underpaid as well.

Moore said the position’s $62,000 salary hasn’t been raised since 2013 and should be at least more than $70,000 annually. She also said the aldermanic salary of $100 per council meeting should be boosted along with additional stipends for committee chairs and/or committee attendance.

Kelly Stupasky was appointed city treasurer upon Moore’s retirement. He intends to run for the position in 2025.

And Rev. Carl Terry of Bethel AME brought his concerns of the low reading test scores of Quincy’s children before the council. Terry spoke to the Quincy Park Board last week and plans to take his message directly to the Quincy School Board at its meeting this Wednesday, 6 p.m. at the Board of Education Office at 1416 Maine.

The council also:

Approved a $2.5 million loan to allow the Mid-America Intermodal Port Authority to purchase 31 acres of riverfront property, including the former Celotex location. The Port Authority intends to build a new docking facility and is awaiting a $13 million state grant it has already been selected for. The city’s loan is a 90-day bridge loan.
Denied a 20-year solar energy contract with Nexamp of Louisville, Colo. Aldermen had concerns about the length of the contract.
Approved a $1.38 million bid from Diamond Construction for resurfacing of Ridgewood Dr., Woodbridge Dr., and 18th Street between State and Maine Streets, which will not call for the closure of 18th Street during construction. The State to Harrison Street section of 18th will be repaved next year.
Approved allowing Quincy Medical Group to use a $159,411 rebate to offset any remaining patient account balances for 2022 and 2023, with no remaining account balances to be billed to city employees or covered individuals.
Approved a short-term loan of $600,000 from the City of Quincy’s general fund to the Quincy Transit Lines to temporarily cover operating expenses while Transit awaits receipt of state funding.