HomeMy WebLinkAboutIR 10114 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10114
To the Mayor and Members of the City Council March 6, 2018
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*a SUBJECT: OPPORTUNITY ZONE DESIGN AND DESIGNATION OF
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NOMINATED CENSUS TRACTS
As part of the federal Tax Cuts and Jobs Act of 2017 signed into law on December 22, 2017, the
United States Congress established a new community development program to encourage long-
term investments in low-income urban and rural communities nationwide. The Opportunity Zones
program provides a federal tax incentive for investors to re-invest their unrealized capital gains
into Opportunity Funds that are dedicated to investing into Opportunity Zones designated by the
governor of every U.S. state and territory.
Opportunity Funds are private sector investment vehicles that invest at least 90 percent of their
capital in Opportunity Zones. U.S. investors currently hold trillions of dollars in unrealized capital
gains in stocks and mutual funds alone—a significant untapped resource for economic
development. Opportunity Funds provide investors the chance to put that money to work
rebuilding the nation's left-behind communities. The fund model will enable a broad array of
investors to pool their resources in Opportunity Zones, increasing the scale of investments going
to underserved areas.
To establish one or multiple Opportunity Zones, the governor of each state must formally
designate the nominated set of Census tracts no later than March 21 , 2018. No more than 25% of
the Low Income Community Census tracts in each state may be designated as an Opportunity
Zone. Recognizing the competitive nature of the nomination process and the expectation that
communities throughout Texas will be submitting their own nominations for Census tracts within
their community, staff has selected what it believes to be a reasonable and competitive number of
eligible Fort Worth Census tracts that will maximize the strategic and economic impact of the
Opportunity Zone once established.
City of Fort Worth staff (representing the Economic Development, Neighborhood Services, and
Planning and Development departments) identified 19 out of the 105 eligible census tracts
located within the City for submission as an opportunity zone (see attached map).Together, the
recommended census tracts represent 20.7% of the Low Income Community Census tracts
located in the City of Fort Worth and 5.6% of eligible Contiguous Census tracts The census tracts
were chosen with the following primary considerations in mind:
1) Area's ability to support specific objectives within the City's Economic Development Strategy,
2) Area's compatibility with the City's Comprehensive Plan, and
3) 25% statewide cap on the number of eligible census tracts designated by the Governor
Many other factors were included in the recommendation, such the area's attractiveness for near-
term private investment and their capacity to support new development and commercial activity.
A list of Census tracts recommended by Staff for nomination to the Governor's Office for
designation as an Opportunity Zone is provided on the following page.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10114
To the Mayor and Members of the City Council March 6, 2018
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*a SUBJECT: OPPORTUNITY ZONE DESIGN AND DESIGNATION OF
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NOMINATED CENSUS TRACTS
Census Tracts:
48439100201 Recommended Fort Worth Opportunity Zone
48439100202
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48439100300
48439101700
48439103500
48439105001 -
48439105006
48439106002 -
48439106004
48439106101
48439106102 L j
48439106400 �-
48439106517
Census Trac[Opp-t—idy Zone Eligibility
48439111005 - Sc•1crlyd It-,-C-bg-
48439123000*
Selrcted 11 LK;
48439123100
Etigm�Tr,?ct cnnliguous
48439123200 ,
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48439123400 H
48439123600
*Contiguous Qualification. All other tracts are LIC qualified.
Staff will present a letter to the Governor's Office and coordinate with them in the coming weeks
to respond to any requests for information and to support the designation of the nominated Fort
Worth Census Tracts as an Opportunity Zone.
If you have any questions concerning this information, please contact Robert Sturns, Economic
Development Director at 817-212-2663 or robert.sturns@fortworthtexas.gov.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS