Opportunity Zone Magazine Opportunity Zone Magazine Volume 1, Issue 1 | Page 19
OPPORTUNITY ZONES: TIME FOR LOCAL COMMUNITIES TO GET IN THE GAME
Investors and developers have already begun to create a
plethora of Opportunity Funds. Those funds have already
started investing in projects in the more than 8,700 zones
across our country.
These investments are happening, for the most part, without
community involvement. The Tax Cuts and Jobs Act of 2017,
which included the Opportunity Zone legislation, provided
that these investments can be limited to the investor and the
IRS, without requiring federal, state or local input.
Streamlining bureaucracy at the federal and state level is
helpful to small businesses, developers and investors who want
to make the most of this program. But if communities want to
be involved, they need to create a seat at the table.
Cities and counties across the U.S. are varied and unique.
Small rural communities are desperate for investment, any
investment that will increase economic output and bring
needed jobs. Large urban cities and counties have a multitude
of challenges: the contrast of high unemployment rates and
the need for job growth with the potential for displacement
and gentrification.
There are communities across the country who are beginning
to discuss this issue and grappling with how to wrap their
arms around the right kind of Opportunity Zone investment.
The problem is that while communities are still trying to
understand the program, private investors are already making
investments.
The single most important
step communities can take
right now is to have a
community vision for their
Opportunity Zones.
HOW CAN COMMUNITIES ATTRACT INVESTORS?
O
pportunity Zones are a buzzword from coast to
coast, a hashtag, a trending investment topic of
conversation, whether that’s on finance blogs, news
sites or social media.
The private sector across the United States is moving
quickly to understand the rules of the Opportunity Zone
game. Investors are looking for good projects, developers are
marketing their projects as they search for investment, and
Opportunity Funds are looking for both strong projects and
sound investments.
Communities need to get in the game. The single most
important step communities can take right now is to have
a community vision for their Opportunity Zones. There
are a few cities across the country who brought together
stakeholders to form a vision and put their vision on paper for
all to see, and those cities are now leading the pack.
There are resources readily available online for cities and
counties to use as templates to put together this vision.
The Opportunity Zone Investment Prospectus Guide
from Accelerator for America lays out a common template
communities can complete to market their zones.
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