Nothing prevents a municipality from entering a public-private partnership with investors under the Opportunity Zone program. The OZ tax benefits can also be combined with any state or local tax benefits a municipality might offer.
Ask A Question
How can cities best take advantage of the Opportunity Zone program?
How can public-private partnerships help to accelerate a community’s revitalization?
Answers
I imagine the answer is different for every city and depends greatly on the needs of a specific market. In the Bay Area the need is greatest for low- to moderate-income housing solutions near transit districts. Other cities would benefit more from jobs producing redevelopments to move economic redevelopment along. In many Rust Belt cities, any investment in their core markets could help stimulate additional development activity and be a catalyst for more investment. In my experience revitalization requires a first mover and follow-up investment to be truly successful.
Cities can reach out to local, regional and national developers and let them know the types of properties they have and projects they are looking for in their cities. Fast-tracking permitting and possibly reducing permit fees will help. Also, some cities are proactively installing utilities in vacant land to speed up the development process. Investors will be attracted to cities that are business/builder-friendly. There are many public-private partnerships in the works. Building municipal centers. Las Vegas' new stadium for the Raiders is in an OZ. Many other opportunities for these partnerships.
I am not sure how to answer. That will be a case-by-case analysis. Cities benefit from the investments in Opportunity Zones to create jobs and enhance the tax base.
Complicated. If the city has a well-developed marketing plan they (the developers/investors) will come.
Cities are identifying the priority projects for development and working on attracting investors to these. In addition, some are approving special legislation to make these projects more attractive.
Focus on the economic advantages that your community would have even if there were no tax incentives. Promoters are interested in the following: can an investment make money; will government and the community be receptive to the changes that a new development will bring; will the approval process for development be reasonable and not excessively lengthy; if you can answer positively to the above questions, you are now attractive to an Opportunity Zone funds. It may take some time, but keep on promoting. There is a nonprofit group called Accelerator for America that has come up with templates for communities like yours trying to attract such investment. I have no affiliation but found it a good starting point. Hope this helps you to get started.
I believe what will set apart one city from another are: the expediency of providing permitting and additional incentives. Currently a lot cities have Opportunity Zone tracts within them and if the city cannot help businesses with additional incentives, it will face an uphill battle in trying to lure investment into their communities.
DISCLAIMER:the information found on this website is intended to be general information; it is not legal or financial advice. Specific legal or financial advice can only be given by a licensed professional with full knowledge of all the facts and circumstances of your particular situation. You should seek consultation with legal and financial experts prior to participating in any aspect relating to Opportunity Zones. Posting a question on this website does not create an attorney-client relationship. All questions you post will be available to the public; do not include confidential information in your question.