Agenda Item Wording:
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Opportunity Zone Nomination - Authorize staff to process Opportunity Zone 2.0 census tract nomination for staff recommended tracts.
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Agenda Date: 06/15/2026
Prepared by:
Devon Jones, Economic Development Manager, devon.jones@visalia.gov, (559) 713-4190
John Lollis, Assistant City Manager, john.lollis@visalia.gov, (559) 713-4323
Paul Bernal, Director of Planning and Community Preservation, paul.bernal@visalia.gov, (559) 713-4025
Department Recommendation:
Authorize staff to process Opportunity Zone 2.0 census tract nomination for staff recommended tracts:
1. Tract 12 - 'Downtown Visalia' (06107001200) (see Attachment 2 for area)
2. Tract 20.03 - 'Mooney' (06107002003) (see Attachment 3 for area)
3. (if option) Tract 17.01 - 'Washington Elementary, s/o 198, w/o Ben Maddox' (06107001701) (see Attachment 4 for area)
4. (if option) Tract 11.01 - 'Oval' (06107001101) (see Attachment 5 for area)
Summary:
Opportunity Zones (OZs) are a federal capital gains tax incentive intended to attract long-term private investment to low-income communities. The program allows any taxpayer with eligible capital gains, including individuals, corporations, and institutional investors to reinvest those gains in designated census tracts and receive preferential federal tax treatment without needing federal approval. The incentive is carried out through Qualified Opportunity Funds (QOFs), which aggregate investor capital and direct it toward eligible investments within designated OZs. Eligible investment activities are intentionally broad. They may include new real estate development, rehabilitation of vacant or underutilized properties, local operating businesses, manufacturing facilities, energy projects, mixed-use developments, and similar productive uses.
Property generally cannot be purchased and held without meaningful follow-on investment and still qualify for OZ tax benefits. By offering capital gains tax relief rather than an up-front ...
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