Readers of this blog might like to note that, according to a report from July 19, 2019, the Phoenix Metro Area if the largest area in the entire State of Arizona for extreme concentrated poverty.
So where do we now see what designated Opportunity Zones are receiving investments to deal with extreme concentrated poverty??
Is it a surprise to see huge investments of million$ in southeast Mesa, not exactly a poverty-stricken zone?????
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So how is that OZONE program working out compared to what it was intended to do in the Tax Credits and Job Act of 2017?
MesaZona > Table of Contents : O Zone + An O Fund > How To ...
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This federal program is meant to spur investment in low-income areas by providing tax benefits to investors who reinvest capital gains into Opportunity Zones.
"Mesa has so many great locations for investment in Opportunity Zones," City of Mesa Economic Development Director Bill Jabjiniak said. "We now anticipate this new program to move investors off the sidelines and into development deals that will offer strong returns."
There are two requirements to take advantage of the tax benefits central to Opportunity Zones.
First, the investment must be made via an Opportunity Fund. Second, the investments must be derived from a gain in another investment and transferred into an Opportunity Fund within 180 days of realizing that gain.
The tax benefits associated with this investment are that the tax on the realized gain is deferred and reduced if the investment is held in an Opportunity Fund for five to seven years.
The tax benefits associated with this investment are that the tax on the realized gain is deferred and reduced if the investment is held in an Opportunity Fund for five to seven years.
Second, gains on the Opportunity Fund investment will not be taxed if the investment is held for ten years. Opportunity Funds in turn must have at least 90% of their assets in qualified Opportunity Zone property.
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The U.S. Department of Treasury allowed two options in terms of data for determining qualifying tracts:
2011-2015 American Community Survey data,
or
2012-2016 ACS data,”
A census tract that includes Phoenix-Mesa Gateway Airport has been included among the opportunity zones selected by Gov. Doug Ducey for federal development help./East Valley Tribune
New 'opportunity zones' aim at low-income area uplift
IRS approval of 18 “opportunity zones” in the East Valley earlier this month are designed to promote economic development in low-income areas. The IRS awarded the designation to census tracts with indicators of poverty and income levels below the area median.
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Example
Eastmark area seeing more
major development
"After sitting on a patch of empty land in east Mesa for almost a decade, Rick Richmond decided it was time to start building. So this month he broke ground for the second phase of Crismon Gateway Village on 25.5 acres of land on Crismon Road between Baseline Road and the US 60. The development is set to include retail and office space, in addition to 128 units of multifamily housing with individual suite patios— all expected to be completed by late 2021. . . Phase II will consist of more retail space, . . And it is taking advantage of its proximity not only to rapidly growing Eastmark but also to Mesa’s Technology Corridor
The first phase of the Crismon Gateway Village began in 2017. . . Phase II will be more retail space. . . Mary Nollenberger, director of leasing and retail investment sales and Nicole Ridberg of SVN Desert Commercial Advisors have worked with Richmond to expand the development. . . Meanwhile, the neighborhood near Crismon Gateway Village continues to get more economic growth,
Marwest Enterprises recently announced it is building Landing 202, a 605,000-square-foot Class A industrial building on about 45 acres just south of Loop 202 and west of Hawes Road on the north side of Ray Road. . . Marwest expects the buildings to be completed by mid-2020.
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Marwest’s development is within a federal opportunity zone, which allows investors to defer and potentially reduce taxes on capital gains.
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“Ray Road has been a hotbed for development over the past several years,” District 6 Councilman Kevin Thompson said. “Landing 202 will provide even more Class A industrial space for businesses looking to relocate or expand to the Gateway Area, which has become an employment corridor for the region.”
To ensure expansion continues, the city last week announced CenturyLink will expand network infrastructure in the Gateway area by expanding its footprint by more than 90 route miles of fiber.
“The expansion of CenturyLink’s fiber in the Gateway area will help drive the future of Mesa’s Elliott Road Technology Corridor,” Giles said. “Their new capacity opens the door to major tech company expansions and new business while keeping Mesa at the forefront of innovation.”
The expansion will support new data centers and technology companies planned for the area – including the
- SkyBridge development at the Phoenix-Mesa Gateway Airport; educational institutions
- the newly completed Dignity Health hospital
- and numerous other area businesses.
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