Communities can put together a package to convince developers that their jurisdiction has a friendly investment environment
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What are some strategies communities can do to attract OZ funds?
How can my city and county encourage investments while offering value for both the investors and developers?
Answers
They can offer two types of things. The first type is their own tax incentives at the state and local level. The second is fast-track OZ developments by eliminating bureaucratic red tape.
Lots of communities are creating new incentives to businesses that invest in their zones, including tax incentives and expedite permitting processes. Others are also compiling prospectus of available projects that they support.
I think the best is to make sure that you will expedite zoning and permitting.
Attracting investments to a community is a critical part of successfully using the Opportunity Zone tax provision to benefit the economic development of a community. As part of your strategy, you should focus on attracting local investors. As many Opportunity Zone Funds are regulated by the Securities and Exchange Commission, communities and economic development officials need to be mindful when working with potential fund investors. Potential investors will only become interested if they understand not only the tax advantages of making an investment but also the potential to redevelop communities. The first step in identifying and developing relationships with investors is to provide investor education. You can hold stakeholder events and do direct outreach to local investors. An investment prospectus and/or website is also an important tool to help attract investors. However, this is just one step, and you need to do external outreach primarily.
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