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Home My WebLink About26-0068 - 2026-06-02 - Informal ReportINFORMAL REPORT TO CITY COUNCIL MEMBERS No. 26-0068 To the Mayor and Members of the City Council June 2, 2026 Page 1 of 6 SUBJECT: OPPORTUNITY ZONE 2.0 NOMINATIONS AND PROGRAM UPDATE This Informal Report provides an overview of the Federal Opportunity Zones Program, established and administered by the U.S. Department of Treasury, and the nomination process for census tracts under Opportunity Zones 2.0. 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 reinvest 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. In 2025, the program was extended and made permanent, enabling states to designate a new set of Opportunity Zones once every decade. The updated program is subject to annual program reporting requirements at the federal level and the following new designation criteria (applicable to each census tract): • Median Family Income: The median family income (MFI) is 70% or less of the applicable area or statewide MFI (decreased from 80% in Version 1.0). • Poverty Rate: The tract has a poverty rate of at least 20% and a MFI that is 125% or less of the applicable area or statewide MFI (no cap on MFI in Version 1.0). Opportunity Funds are private sector investment vehicles that invest at least 90 percent of their capital in Opportunity Zones. Opportunity Funds provide investors the chance to put unrealized capital gains to work by investing in low-income, high -poverty areas while receiving more favorable treatment in relation to federal capital gains taxes, including tax deferrals and a step-up in basis. The fund model enables a broad array of investors to pool their resources in Opportunity Zones, increasing the scale of investments going to underserved areas. Since the program was established, more than $100 billion has been invested in designated Opportunity Zones across the country. At present, Fort Worth has six active Opportunity Zones that were designated by the Governor's Office in 2018 from the 105 eligible census tracts located in Fort Worth at the time. All existing Opportunity Zones will expire at the end of 2028. A new designation process, spurred by the passage of the OBBBA, will officially begin on July 1, 2026, when governors will begin nominating a new map of census tracts. Following Treasury Department certification, the new Opportunity Zones will go into effect on January 1, 2027, and last for ten years, after which it will be replaced with updated designations on a decennial basis. Eligibility for designation has changed under the updated program, leading to a significant decrease in the number of eligible census tracts, especially in metropolitan areas. Eligible census tracts must have a poverty rate of at least 20% or a median family income that is no greater than 70% of the metropolitan area. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 26-0068 To the Mayor and Members of the City Council June 2, 2026 Page 2 of 6 SUBJECT: OPPORTUNITY ZONE 2.0 NOMINATIONS AND PROGRAM UPDATE With the new requirements, Fort Worth now has 87 census tracts that are eligible for designation as an Opportunity Zone. Although the number of eligible census tracts has decreased overall in Fort Worth since 2018, the 2026 eligible tracts are highly consistent with the objectives of the Opportunity Zone program and State priorities and warrant nomination. City of Fort Worth staff from Economic Development, Planning, and Neighborhood Services reviewed eligible tracts and identified 45 of the 87 eligible census tracts for submission as an Opportunity Zone (see attached maps). 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, 3) Suitability to the use and limitations of the program and the availability of other tools, and 4) Potential for investment and economic impact locally and statewide. Many other factors were included in the recommendation, such the area's attractiveness for near - term private investment and its potential to support new development and commercial activity that would attract Opportunity Fund investment. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 26-0068 To the Mayor and Members of the City Council June 2, 2026 Page 3 of 6 i i7 Y SUBJECT: OPPORTUNITY ZONE 2.0 NOMINATIONS AND PROGRAM UPDATE r6 rn Yg7'3 Current Fort Worth Opportunity Zones v M� Q GS 1 hilts i—TH —WL1 Meacham Airport f Stockyards West Fort Worth Stockyards J Northside Stockyards TCD J Diamond Hill Medical Innovation District j Hillside-Morningside Cobb Park • East Berry f Edgewood ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 26-0068 To the Mayor and Members of the City Council June 2, 2026 Page 4 of 6 SUBJECT: OPPORTUNITY ZONE 2.0 NOMINATIONS AND PROGRAM UPDATE Recommended Census Tracts for Opportunity Zone Designation The map below displays the 45 census tracts that City Staff recommend for designation as an Opportunity Zone: Q 3 6 Lagged w city utTMt, FORT NORTH Doi: Ma� 2MO Lakes Rude hy. 6mrwrric De 6pr rR sm" : URY 2V6 - Nominated Census Dan. 0 Eligible Census Tracts ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 26-0068 prtTl:A4 Grp 4 i { i7 Y rF rn 1075 To the Mayor and Members of the City Council June 2, 2026 Page 5 of 6 SUBJECT: OPPORTUNITY ZONE 2.0 NOMINATIONS AND PROGRAM UPDATE Recommended Fort Worth Opportunity Zones (2026) Recommended Census Tracts (listed by designation priority): Pi iw i,.e Dek Apron Cemiva Traci j= PaelirerWand 4MM123200 12 PatolfexaswesleyenUniNemny 43499103500 13 €Lancaster 434991GI403 14 Wadawbro9kFrxWes 434991a15a0 15 HlslercHandley 484991013a2 I HlejorkSouMsrde 434991231100 17 DiarnondIwWElrenrnanAve 4W91WM I LakeMnffton 4W91a6W 19 LVr &Mdr 4S&%la52a6 li¢ HILISI&JMorrridiewe 4MD1235M I11 HeachwnEsatlHelodyMs 4MD105DM 112 NorinsldeNj"SLoilc Merine} 43499100900 113 WoodrawnSE 4W91a6519 I1, wesicamplBowie 4W91052a3 I Coma 43499102500 116 Rosemont {Gra nbury S McCartj 434391WN3 117 4akiwd Comers UrbanYlla�e 494991a14(12 lis s,opsastakdp 43439136-%0 jig SlopshCmh! 434991awa1 120 Race Streetl N&M E tacM Street 43499141242 121 LVrwest 4W9JLa5204 122 South Main St.I HID 43499123EU0 123 LVrEast 43439105207 I2A Carter Pa rk Smth F East 43439106DM I2;r RidvarMail 4W91236a1 126 E Berry IMornINElde) 484 BIG4.505 127 NorMN&SjEleLLmwntremcej 4MD100W 129 Wixdhaven9N 49499106520 12g ALtsNme 48499102M Igo &%PdntsUrbanvwze 434991a1202 1.31 RurLetTriangLe 4M91a17W 132 DFWSOLM 4349910651E I3:3 Normslde2M 434991004a1 13A Felrhaoen 434 DIN2a1 135 Southeast 2871SunwalLey 4w9iLa61a1 136 HcCalt0Ld1nduAriEL 4W91042;a4 137 South Campus DrL4e 4M9106Ua2 13a C&SWlo17e1Har 43439JLN 5 jag Stlr wWJafnesjWe 434991a.1742 I4a La Grark Kara 434991G&%2 141 Seminary 6i P. I a;- Pad[ 434391a4504 142 ALcmICB lr Pa-k 4849906aa2 14S NewM1tch:1. 434391GSBM J44 HILlsiddC6hb PaWAslr Cresenr 484991a3Ba0 14.5 WedgewmadEasVSoWkHIILs 43499105703 ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 26-0068 To the Mayor and Members of the City Council June 2, 2026 Page 6 of 6 SUBJECT: OPPORTUNITY ZONE 2.0 NOMINATIONS AND PROGRAM UPDATE Staff will present a letter to the Governor's Office and, alongside community partners, will coordinate with Governor's Office staff to respond to any requests for information and to support the designation of the nominated Fort Worth Census Tracts as an Opportunity Zone. The City's submission is due to the Governor's Office no later than June 26, 2026. If you have any questions concerning this information, please contact Jessica Rogers, Economic Development Director at 817-212-2663 or jessica.rogers@fortworthtexas.gov. Jesus "Jay" Chapa City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS