By Marie Ekberg Padilla
Colorado Governor Jared Polis – an entrepreneur, education leader and public servant – shares insight about the role of Opportunity Zones for economic development, how to encourage public/private OZ partnerships and what the OZ tax incentive can do for rural and distressed areas in his state.
Why did you want to work in state politics and how has your background helped you serve as Governor?
Gov Polis: I’ve always been passionate about education, even while working in the private sector, and my first opportunity to explore that interest was starting a charter school for at-risk students and new immigrants. Education is perhaps one of the most foundational ways to create change in any person’s life. From there, I had the chance to run for State Board of Education, which led me to break into politics. It’s been an honor to serve Colorado in a variety of ways, from serving in Congress to now Governor. Being a governor is more like the private sector than serving in Congress, the state has a huge workforce and increasing efficiency and decreasing cost is a constant focus.
What are your main goals as Governor of Colorado this year? What does the future look like?
Gov Polis: We’re working to save people money on health care, achieve 100% renewable energy by 2040, invest in education, provide tax relief and build a Colorado for All. Throughout the pandemic we have been focused on saving lives and protecting our economy and we’ve made great strides to ensure Colorado is the best place to live, work and play and start or own a business.
What advice could you give other state and counties that are trying to encourage public/private OZ partnerships and attract OZ investment to their areas?
Gov Polis: Opportunity zones are a powerful tool for development, growth, and jobs. It’s critical especially with growth of remote work that states don’t limit their economic opportunities and activity. Attracting capital to new areas opens new opportunities for businesses seeking to expand and for employees searching for a lower cost of living area with job opportunities. I encourage other states to explore public/private OZ partnerships in order to unlock untapped economic potential that is likely to attract both new workers and businesses into a state.
Why do you support Opportunity Zones and what do you think the tax incentive can accomplish in distressed areas?
Gov Polis: The Opportunity Zone tax incentive has helped redirect billions of dollars from coastal, and urban areas into towns and cities in our rural areas. I supported the establishment of OZs when I served in Congress, and now as Governor of Colorado we want to be the leader in the successful deployment of OZs and show how public-private partnerships can work. The OZ incentive is a great example of private investors working directly with public sector leaders to create equitable economic opportunity in areas that have struggled in recent years.
Another aspect of the OZ incentive is that it favors patient capital, meaning that investors are rewarded for creating robust partnerships that support their long-term investments of over ten years.
Tell us about Colorado’s Opportunity Zone Program office, why it was opened and what it is aiming to accomplish?
Gov Polis: The Colorado Opportunity Zone Program office was opened to ensure that communities across the state, especially smaller communities, are able to harness the OZ incentive to meet their economic development goals. There are three main pillars to the state program: education, community support, and investment facilitation. Our two-person OZ team works with designated communities to educate them on the tenets of OZ investment and what kind of projects it can help fund. They directly support communities through technical support grants that help them jumpstart community-supported OZ projects. And through their nationally recognized accelerator program and co-Invest.co website, they help facilitate investments into OZ businesses and real estate projects.
The state’s strategy for Opportunity Zones hinges on boosting economic opportunity in rural areas and undercapitalized urban areas. Over two-thirds of designated opportunity zones in Colorado are in rural areas, and many of those are in Just Transition communities that are looking to diversify their local economies beyond extractive industries. Some of the OZ projects we’re most proud of are in these Just Transition communities.
What are some major OZ deals or collaborations in Colorado that you would like to highlight?
Gov Polis: One project that we’re particularly proud of is the Camp V project in Naturita in Montrose county close to the state’s western border. Camp V is a former mining camp that was turned into an arts-focused glamping site. This exciting project received one of the state’s first technical support grants, and soon thereafter received OZ investment from Four Points Funding. Camp V has already had a significant economic impact. It has added jobs, boosted tax revenue, supported local arts organizations like West End Arts, and drawn tourists from out of state.
Otherwise, we’ve been really excited to see multiple OZ-funded workforce housing projects helping address housing affordability issues across the state. Some examples include a 400-unit project in Aurora, a 96-unit project with a childcare center in Estes Park, and a 100-unit project next to a transit stop in Glenwood Springs.
Finally, we’re thrilled to see that OZs are helping address one of my top priorities: rural broadband. An OZ impact investor recently announced a $60 million rural broadband infrastructure investment in Colorado and Vermont.
Why should OZ investors, developers and funds invest and do business in OZs in Colorado?
Gov Polis: It’s no surprise that Colorado has been one of the top destinations for OZ capital across the country. From the state’s OZ program office down to our local economic development offices, we have taken a proactive approach to highlighting investment opportunities for funds and developers. Investors know that they can dial up local leaders across the state all the way to and including me to help identify great investment opportunities that will benefit local residents and businesses alike.
How has your background as a successful entrepreneur helped shape your politics and values in life?
Gov Polis: My background as an entrepreneur has helped me better understand how to make Colorado a great place to grow a company and attract investment.
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