Are there proven strategies or methods we can use in our area, which has proven effective in other communities across the country?
It is important for the city to reflect on their master plan, and then help promote the zones within their borders to best fit the uses they would like to see. This can be done with financial assistance or by simplifying zoning and other city-mandated processes.
This goes to the heart of the OZs. OZs should not be viewed in a vacuum. Cities that have OZs should involve their planning departments to make such areas more attractive, using TOT credits for hotels, incentivizing the use of local citizens for employment, involving business people to tutor and mentor, and really create an overall business plan that maximizes the OZs so they are successful for the community. It cannot just be about money.
The Opportunity Zone tax provision itself can be used to attract investors to invest in Opportunity Zone Funds that will support projects related to community development. However, something else that can have a direct impact on community development is federal grants that are targeted towards Opportunity Zone communities. As you know, President Trump issued an executive order issuing more federal funds to the Opportunity Zones, including 13 federal agencies who have already developed a list of at least 150 potential actions they could take to support investment in Opportunity Zones. We have seen funding go directly to Opportunity Zones to support community development activities.
Have all stakeholders on the same page: communities, NGOs, government officials and developers. This approach is showing a great success.
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