HomeMy WebLinkAbout26-0135 - 2026-09-29 - Informal ReportFORT WORTH®
INFORMAL REPORT TO CITY COUNCIL MEMBERS
SUBJECT: UPDATE ON THE NOMINATION AND SELECTION OF OPPORTUNITY ZONES 2.0 -
JESSICA ROGERS, ECONOMIC DEVELOPMENT DIRECTOR
DATE: 09/29/26 NUMBER: IR 26-0135
TO THE MAYOR AND MEMBERS OF THE CITY COUNCIL
This Informal Report provides an update on the recommended census tracts for the Federal
Opportunity Zones Program, established and administered by the U.S. Department of
Treasury, under Opportunity Zones 2.0.
BACKGROUND
As part of the federal Tax Cuts and Jobs Act of 2017 signed into law on December 22, 2017, the
U.S. 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.
Fort Worth currently has six active Opportunity Zones, 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.
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OPPORTUNITY ZONE 2.0 NOMINATIONS PROCESS
For the Opportunity Zone 2.0 program (OZ 2.0), City of Fort Worth staff from Economic
Development, Planning, and Neighborhood Services reviewed eligible tracts and identified 42
of the 87 eligible census tracts for submission as an Opportunity Zone. 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.
An Informal Report (IR-26-0068) with staff's recommendations was presented to City Council
on June 2, 2026, and the City's final recommendations were submitted to the Governor's
Office on June 24, 2026. The City included information on each relevant tract, as required by
the Governor's Office, and also provided letters of support from Tarrant Regional Water
District, Near Southside, Inc., Trinity Metro, and the Fort Worth Chamber of Commerce.
GOVERNOR'S OFFICE SELECTIONS
On September 4, 2026, Governor Greg Abbott submitted to the U.S. Treasury Department 605
census tracts in 105 counties as potential Opportunity Zones. State governors had the ability
to submit up to 25% of their state's eligible census tracts (Texas had 2,420 eligible tracts,
meaning it could nominate up to 605 tracts for the full 25%).
Also on September 4, the City received notification from the Governor's Office that 7 of Fort
Worth's recommended 42 tracts were submitted for consideration to the U.S. Treasury
Department.
The following Fort Worth tracts were nominated by the Governor's Office:
CFW Description
Priority
Panther Island
4 Meadowbrook/TxWes
5 Historic Handley
6 Historic Southside
Census Tract
48439123200
48439101500
48439101302
48439123100
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Council District(s)
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17 Oakland Corners Urban Village 48439101402 5, 11
27 Northside S (Bellmont Terrace) 48439100800 2
29 Alta Mere 48439102301 3
Designated tracts will take effect on January 1, 2027, and will remain in effect through
December 31, 2036. As part of the Economic Development strategic plan effort, staff will work
with our consultant working to identify the best ways to leverage the OZ 2.0 nominations to
encourage investment in these areas.
City Staff has reached out to the Governor's Office to request a debrief regarding tract
selection or feedback on the City's submission. To date, our request has not received a
response.
The following pages provide maps that show:
1. The City's current Opportunity Zone 1.0 tracts
2. The City's selected Opportunity Zone 2.0 tracts
3. The City's recommended tracts that were submitted for consideration (previously
provided in IR-26-0068
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Current Fort Worth Opportunity Zones
Meacham Airport / Stockyards West
Fort Worth Stockyards / Northside
Stockyards TOD / Diamond Hill
Medical Innovation District / Hillside-Morningside
Cobb Park
East Berry / Edgewood
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State Nominated Fort Worth Opportunity Zones (2026)
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Recommended Census Tracts for Opportunity Zone Designation
The map below displays the 42 census tracts that City Staff recommended for designation as
an Opportunity Zone:
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For questions regarding this information, please contact Jessica Rogers, Economic
Development Director at 817-212-2663.
Jesus "Jay" Chapa
City Manager
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
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