Policy Brief: A Return on Investment Analysis of Investment for housing 200 Boats vs. 200 People in Rock Island, Illinois
- Annika OMelia
- 2 days ago
- 4 min read
(City-Only Costs and Returns, 10-Year Perspective)
Purpose
This policy brief examines the return on investment (ROI to the City of Rock Island)Â from two comparable potential public policy choices:
Subsidizing Sunset Marina, a recreational amenity serving approximately 200 boats.
Investing in rapid housing stabilization for approximately 200 people experiencing homelessness.
This brief is not an argument against Sunset Marina. The marina is a beautiful, distinctive riverfront amenity and a valued recreational asset for a portion of the community. Rather, it provides a useful case study of the City’s demonstrated willingness to subsidize a non-self-sustaining activity, allowing comparison with what a similarly scaled investment in housing could produce for the broader community.
1. City Investment in Sunset Marina (Boats)
Operating support
From 2018 through 2024, the City transferred approximately $1.05 million from other City funds to cover operating losses at Sunset Marina. During this period, the marina has not been financially self-sustaining.
Capital investment
In 2024, City Council approved approximately $3.6 million for marina infrastructure improvements, including docks and electrical systems.
Funding sources included:
~$1.4 million FEMAÂ (disaster recovery funds; not discretionary City dollars)
~$690,000 ARPAÂ (flexible federal funds)
~$1.4 million City interfund loan (local borrowing capacity)
City-controlled commitment (excluding FEMA)
Operating losses: ~$1.05M
Capital (ARPA + City loan): ~$2.1M
Total discretionary City commitment:Â ~$3.1 million
Spread across a 10-year horizon, this equals approximately $310,000 per year in City resources.
2. City Revenue from Marina-Related Activity
The marina’s economic contribution to the City occurs primarily through private businesses that serve boaters, not through marina operations themselves.
Property tax (City share only, 10-year average)
Combined property tax paid by Ted’s Boatarama and Unley Marine: ~$33,700/year
City share of property tax in Rock Island: ~11%
Estimated City property tax revenue:👉 ~$3,700 per year
Sales tax (City share only, estimated)
Using conservative revenue estimates and Rock Island’s municipal sales-tax share:
Estimated City sales-tax revenue: ~$25,000–$45,000 per year
Reasonable midpoint: ~$40,000 per year
This figure could be as high as ~$80,000 per year.
(Exact figures are confidential under Illinois law; estimates are intentionally conservative and based on.)
Jobs
Approximately 12 jobs exist across the two primary marina-serving businesses. While valuable, these jobs do not scale with the level of City subsidy required to sustain the marina.
Bottom Line on Boats (City-Only)
Annual Loss to City:Â ~$310,000
Annual Related City Revenue: ~$30,000–$49,000 (estimate as sales tax unavailable)
Conclusion: City revenues associated with marina-related activity do not cover operating losses and do not approach the scale of City capital investment. Sunset Marina functions as a subsidized public amenity—a valid but deliberate policy choice.
3. A Comparable City Investment in Housing (People)
In the past 10 years, Rock Island has devoted $25,000 of its own discretionary spending to homelessness. The following program does not exist, but is an example of a public investment that could occur.
Program design: Rapid Rehousing at Scale
A. Housing Coordinator
Cost: $65,000/year (contracted)
Responsibilities:
Recruit and support landlords
Engage partners to develop shared housing (individual rooms, shared kitchen/bath)
Coordinate with land trusts and developers
Apply for regional, state, and federal housing grants
Transition participants to Section 8, senior housing, veteran housing, or affordable rentals
Models for contracting with service providers are abundant in Rock Island. Take, for example, our partnership with Development Association of Rock Island, an organization focused on business development, with which the City contracts for roughly $300,000/year.
B. Targeted Rent Support
Tenant pays: $300/month
City pays: $100/month
Participants: 200 people
Annual City cost:200 × $100 × 12 = $240,000
Total annual City investment
Housing coordinator: $65,000
Rent support: $240,000
Total:Â ~$305,000 per year
This is nearly identical to the City’s annual marina cost.
4. City-Level Return from Housing 200 People
(City-funded rent excluded from ROI)
Housing scale and property tax
200 people
3 people per house
~67 houses
Median Rock Island property tax: ~$2,852 per house.
City share (~11%): ~$314 per house
~$21,000/year in City property tax
Rental income (non-City dollars only)
Only tenant-paid rent is counted as economic return:$720,000 per year
This represents new, non-City money flowing to local landlords and housing providers.
Consumer spending
Assuming $400/month/person in local spending on food, transportation, and essentials:$960,000 per year
Sales tax (City share)
Applying a conservative ~2% City share: $19,000 per year
Comparable to marina-related City sales-tax revenue.
Cost avoidance (City systems)
Housing stability reduces:
police calls
fire responses
emergency medical services
encampment cleanup and enforcement
Even $5,000/person/year in avoided costs equals: $1,000,000 per year
In a recent white paper circulating in Davenport, homelessness researchers found that 7 individuals cost the city $17 million over 5 years in emergency services, city services, etc.
These savings accrue directly to City budgets.
5. Ten-Year Comparison (City-Only, Annualized)
Measure | 200 Boats | 200 People |
Annual City cost | ~$310k | ~$305k |
Annual City revenue | ~$30k–$49k | ~$40k+ |
Property tax (City) | ~$3.7k | ~$21k |
Non-City rent injected | — | ~$720k |
Local consumer spending | Limited | ~$960k |
Cost avoidance | Minimal | ~$1M (est.) |
Long-term stabilization | Low | High |
6. Key Findings
Rock Island already subsidizes activities that do not pay for themselves when they are deemed valuable.
On a City-only basis, housing investment:
costs roughly the same annually as marina support,
generates greater City property tax,
produces comparable sales tax,
dramatically reduces City service costs,
and circulates far more money through the local economy.
Housing functions as core civic infrastructure, not merely social service spending.
Policy Question
If Rock Island can commit sustained City resources to ensure safe harbor for boats, can it apply the same urgency and creativity to ensuring safe, stable housing for people?