Finding Opportunities in Opportunity Zones MEDA Spring 2019 - - PowerPoint PPT Presentation

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Finding Opportunities in Opportunity Zones MEDA Spring 2019 - - PowerPoint PPT Presentation

Aug 30, 2023 239 likes •508 views

Finding Opportunities in Opportunity Zones MEDA Spring 2019 Conference Glendive, MT Tuesday, May 21, 2019 2:00 2:45 PM Presenters: MDOC: Tash Wisemiller, Mary Craigle, and Sean Becker SBA: Martin DeWitt GOAL: Connect local

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Finding Opportunities in Opportunity Zones

GOAL: Connect local community economic development leadership with the Opportunity Zone (OZ) core principles. GUIDING PRINCIPLE: Successful OZ impact investments will require community level guidance and support.

MEDA Spring 2019 Conference – Glendive, MT

Tuesday, May 21, 2019 2:00 – 2:45 PM

Presenters: MDOC: Tash Wisemiller, Mary Craigle, and Sean Becker SBA: Martin DeWitt Slide 1

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Commerce Team Community, Industry, Business

Slide 2 COMMUNITY – Tash Wisemiller Community Development, Planning, Main Street Program INDUSTRY – Mary Craigle Research Data, Industry Development Program BUSINESS – Sean Becker Business Assistance Bureau, Financing and Technical Assistance

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SUCCESSFUL OPPORTUNITY ZONE DEVELOPMENT IS LOCAL COMMUNITY DRIVEN

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Consider the Impact

  • Public
  • Private

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Reimagine instead of recreate

  • Continue the high caliber work you do.
  • Layer funding
  • Coordinate

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Position for Growth & Investment

  • Proactive

– Planning documents – Prospecti – Educate and Engage

  • Prepare

– Do your research – Leverage funding – Highlight local projects and partners

  • Prioritize

– Key development; local goals local needs

  • Potential

– Managed local need and vision – Common purpose

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Communities need to do the OZ Work

  • Request for Information
  • Term Sheets
  • Engaging Philanthropy
  • Community Engagement
  • Asset Mapping – what are the values
  • Incentives and Barriers – Pave and Direct

the Entitlement Path

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Montana’s Opportunity Zones

25 out of 106 Federally Eligible Census tracts (limited to 25) Total estimated population of chosen tracks = 94,401 (Source:U.S. Census Bureau ACS 2013-2017)

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OZ Incentive in Nine Numbers

  • 19 - 26 - 47 (Milestone Years)
  • 180 – 6 – 31 (Time)
  • 90 – 70 - 50 (Investment Allocation)

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QOZB/QOZBP Examples

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Investment Projects Four Basic Types

  • 1. Mid-teen IRR that will attract lazy money
  • 2. Impact investing – give up one thing to

do mission impact

  • 3. Paired Projects – condos and clinic or

grocery

  • 4. Mature Investments – guaranteed income

for low risk/lower IRR – upgraded residential

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QOZs were designed to work in tandem with state and local tax incentives

Developers need to consider state and local tax credits beyond QOZ incentives. Numerous programs offer developers tax abatements, deferrals and incentives in the same economically distressed areas as QOZs. These extra incentives will make opportunity zone projects more attractive to investors and may bring new capital deeper into the areas that need it most.

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COMMUNITY - A look at Houston TX and Helena MT

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Existing Business - a look at Louisville

https://louisvilleky.gov/sites/default/files/louisville_forward/louisville_prospectus_version_13_1 1.5.2018.pdf

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New Energy Complex in Oregon Obsidian Solar Center https://spark.adobe.com/page/W9xOz4hVCKMTF/

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Example New Business / Industrial

Pearl Fund L.P https://thepearl.fund/how-%26-where

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Places to Look at Other Projects Colorado OZ Projects

https://www.colorado-invest.com/search-opportunity-zone-investments/

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Places to Look at Other Projects Ohio OZ Projects

https://opportunityzones.ohio.gov/wps/portal/gov/ooz/resources/find-opportunities-for-investors

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Key OZ Dates, Timelines and Regulations

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Key Dates for Investors and Qualified OZ Funds (QOF)

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Source: Website City of Lowell, MA https://www.lowellma.gov/1227/Opportunity-Zones

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Additional Regs Expected Fall 2019

  • Congress ready to drop legislation for OZ

Reporting that includes the provisions that were in the Investing in Opportunity Act

  • Possibility that the December 31, 2019 deadline

for investing to get max tax benefit may be extended

  • Congress is looking at allowing OZ incentives in

census tracts that are impacted by a natural disaster

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RESOURCES AT FEDERAL AND STATE LEVELS

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State Resources and Help Community, Business, Industry

  • Website Resources opportunityzones.mt.gov
  • Assist in identifying and directing to

expertise – especially locally

  • Help integrating existing grant programs

into financing stack

  • Using OZ incentive in other support state

provides

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QUESTIONS AND CONVERSATION

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