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. OPPORTUNITYZONEMAGAZINE.COM 17