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HomeMy WebLinkAboutOZ Presentation 6.23.26 FINALBozeman City Commission Tuesday, June 23, 2026 What is an Opportunity Zone? •The Tax Cuts and Jobs Act of 2017 established a new economic development program called Opportunity Zones designed to encourage long-term private investments in low-income census tracts. Opportunity Zones provide a federal tax incentive for taxpayers who reinvest unrealized capital gains into “Opportunity Funds,” which are specialized vehicles dedicated to investing in low-income areas called “Opportunity Zones.” •The zones themselves are comprised of federally eligible low- income community census tracts and designated by governors in every state and territory. The program has the potential to direct private capital toward distressed community census tracts and serve as a catalyst for long-term economic development. This may include downtown revitalization, workforce development, affordable housing, infrastructure, and business startup and expansion. Why are Opportunity Zones important to Bozeman? •Catalyzes private investment and job creation: Opportunity Zone designation can attract long-term private capital to Bozeman, encouraging new business development, expanding the tax base, and creating high-quality jobs for residents. •Supports workforce and housing development: By incentivizing investment in underutilized areas, Opportunity Zones can help finance workforce housing, mixed-use developments, and infrastructure improvements that address growth pressures. •Strengthens regional economic resilience and competitiveness: Opportunity Zone incentives can accelerate investment in emerging industries, innovation hubs, and local entrepreneurs, diversifying Bozeman’s economy and positioning the city for sustained long-term growth, grow existing businesses and remain competitive as a community within which to invest capital. Staff Recommendation Priority 1 Gallatin County Tract 6 Gallatin County Tract 11.02 Staff Recommendation Priority 2 Gallatin County Tract 11.02 Staff Recommendation Priority 2 Short Timeline and Turnaround for Application Materials •Economic Development staff was wade aware of the Montana Department of Commerce Opportunity Zone application deadline on Tuesday, June 9, 2026. •Staff could not prepare the materials in time to meet the packet deadline for the June 16, 2026, City Commission meeting and the June 30, 2026 City Commission meeting is cancelled. June 23rd was the only City Commission meeting date we could get the Opportunity Zone application to the City Commission before the submittal deadline of July 7, 2026. Motion Language I move to authorize the City Manager to sign the Opportunity Zone Proposal and submit to the Montana Department of Commerce. Questions? Mustang by Jim Dolan A gift to the people of Kopychyntsi Motion Language I move to authorize the City Manager to sign the Opportunity Zone Proposal and submit to the Montana Department of Commerce.