OZs: One of the Most Effective Economic Development Tools in History
Congress has made one of the most effective economic development tools in history permanent. Don’t neglect to seize the tax-advantaged benefits now available to you.
The first years of Opportunity Zone investments transformed the landscape. In this conversation, Capital Square founder and co-CEO Louis Rogers and executive vice president, co-head of development, Natalie Mason discuss the remarkable impact of the Opportunity Zone program, how it has generated more than $100 billion in investment nationwide, and why its success in Richmond, Virginia, serves as a powerful example of economic development done right.
Approximate transcript:
Louis: What have you seen in the first five years of the Tax Cuts and Jobs Act?
Natalie: It’s been a tremendous seven, eight years for opportunity zones. The amount of investment that has gone into specific geographic areas in this country has been immense. Estimates are over $100 billion have been directed into neighborhoods that have systemically not attracted capital, and because of this success, Congress has made this now permanent. It’s proven to be one of the most effective economic development tools we’ve ever seen in this country, and as a byproduct has produced a lot of housing. Right?
Louis: Absolutely. What’s it done here in our hometown of Richmond, Virginia?
Natalie: At Capital Square, we’re happy to be headquartered in Richmond, Virginia, and it’s been a market that we invest in a lot. On the Opportunity Zone development front, we have delivered close to 1,000 apartment units in an Opportunity Zone census track, and it’s been so successful that this neighborhood no longer will be an OZ census track – because the legislation has been successful, income levels have risen, retailers have moved in, businesses have moved in. This is now a thriving neighborhood, and it’s doing exactly what the legislation intended. At Capital Square, we’re really proud to be a part of that success.
Louis: So, you’ve essentially put us out of business?
Natalie: In that neighborhood.
Louis: The neighborhood’s too prosperous to be an opportunity zone any longer. That’s success.
Natalie: I consider it a win if every time we go build in an OZ census tract, it then becomes ineligible. That’s a success story for our project. That means we’ve done something right.
Conclusion:
Connect with us today to discuss how opportunity zones can continue to transform your possibilities.
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