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Last week, President Biden released his $6 trillion budget proposal, which included a capital gain tax increase from 23.8% to 43.4% for households with a combined income of $1 million or more. The proposed increase would take effect April 28, 2022. This controversial capital gain tax hike and its retroactive policy have been sharply criticized.
“Anything that is retroactive creates extra anxiety and extra uncertainty, and that would just slow down economic activity,” said David Solomon, Chief Executive of Goldman Sachs Group Inc. Importantly, president’s budgets rarely pass Congress, and instead serve to outline a president’s policy priorities. Their rationale for the increased taxes and spending was revealed in their “Green Book.”
At the state level, the New Jersey Economic Development Authority reopened registration for their Small Business Emergency Assistance Grant Program. The NJEDA will allocate over $200 million dollars in grants to small businesses and nonprofits who have been impacted by the COVID-19 pandemic. In similar fashion to their previous grant programs, the NJEDA has assigned one-third of funding to go towards businesses located within Opportunity Zones.
Capital Square, who most recently broke ground on Scott’s Collection II, has broken ground on their fourth Richmond, Virginia project, Scott’s Collection III. Located within an Opportunity Zone, this 72-unit, multifamily development will feature private balconies and communal indoor-outdoor space for residents.
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New Jersey EDA Opens Preregistration for Phase 4 Grant Program
The New Jersey Economic Development Authority (NJEDA) reopened pre-registration for Phase 4 of its Small Business Emergency Assistance Grant Program. The program allows small business owners and nonprofits to apply for grants of up to $20,000.
To ensure grants are reaching businesses in hardest-hit communities, the NJEDA has assigned one-third of funding for businesses with a primary business location within a designated Opportunity Zone. In order to qualify, businesses will need to show they have been negatively impacted during the declared state of emergency, including businesses that have been temporarily closed, may have reduced hours, or had at least a 20 percent drop in revenue.
LA Real Estate Firm Raises $100 Million in OZ Equity for Oakland Opportunity Zone Project
Los Angeles-based real estate investment and management firm, Cityview, has completed raising nearly $100 million in equity for Oakland Waterfront, a $250 million, 378 unit multifamily project in an Oakland Opportunity Zone. Construction on the project, which is expected to generate about 2,000 jobs, is slated to start in the second quarter of 2021 and be completed in 2023. The development will also feature 331 parking spaces and 1,700 square feet of retail. Oakland Waterfront is Cityview’s third Opportunity Zone project.
Capital Square Breaks Ground on Richmond, Virginia Opportunity Zone Multifamily Development
Capital Square recently broke ground on Scott’s Collection III, a multifamily development located within a Richmond, Virginia Opportunity Zone. Earlier this year, Capital Square broke ground on Scott’s Collection II, a similar project also located within a Richmond, Virginia Opportunity Zone. Scott’s Collection III is a ground-up development that will include 72 units, complete with in-unit balconies and a communal lobby area.
Situated on 0.5 acres, Scott’s Collection III will feature a 3,000 square foot elevated courtyard, 2,500 square feet of ground floor space, and 61 onsite parking spaces. “This groundbreaking represents the culmination of three years of work, fundraising, educating our investor base on Opportunity Zones, and countless hours of planning, design, project management, sourcing debt and contracting,” said Adam Stifel, executive vice president of development.
Kentucky Opportunity Zone Awarded $1.9 Million Grant for Water Infrastructure Improvement Projects
The U.S. Economic Development Administration is awarding a $1.9 million grant to Pike County Fiscal Court, an Opportunity Zone, for water and sewer infrastructure improvement projects. “Water and sewer expansions are still a critical part of job creation and strengthening our communities in southern and eastern Kentucky. This investment from EDA will fast-track the local vision for a new manufacturing business to set up operations in this new industrial park and create much-needed new jobs in the heart of coal country,” said Congressman Hal Rogers.
The grant will be used to complete the Wolf Pit Industrial Park, an Appalachian-based manufacturing business serving numerous industry sectors.