Consultants urge Harney County to prepare fast for Opportunity Zones 2 nominations
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Summary
Consultants from Healthy Stand with Communities briefed the court on the new Opportunity Zones (OZ2) framework, saying OZ2 narrows tract eligibility but boosts rural investor incentives; Harney County likely has two eligible tracts and commissioners authorized staff to pursue nomination preparation and an RFQ to secure technical assistance.
Outside consultants John Legarza and Andre presented an informational briefing to Harney County Court on Opportunity Zones 2 (OZ2), a federal capital-gains incentive program being restarted with a stronger rural focus.
Key points from the presentation: Legarza explained OZ2 narrows the number of eligible census tracts but provides larger tax incentives for investors who choose rural tracks. For eligible rural tracts, investors can defer capital gains taxes for five years and receive a larger basis reduction (Legarza cited a 30% reduction at year 5 for rural investments versus the smaller OZ1 benefits). He also described the longer-term tax advantage for a 10-year holding period when appreciation becomes tax-free under qualifying rules.
Local impacts: Consultants said Harney County contains three census tracts and that two of those are likely eligible for nomination; they encouraged pursuing nomination for both tracts where appropriate. Because the state will have a limited number of nominations (consultants described a roughly 4:1 eligible-to-nominated ratio statewide), Legarza urged the county to prepare a competitive package that showcases ready-to-develop industrial sites (the county has roughly 38 acres of industrial property with infrastructure), shovel-ready parcels and coordinated incentives.
Timing and next steps: Business Oregon is expected to open a nomination window in mid–late March and to provide recommendations to the governor by July 1; the consultants advised the court to assemble nomination materials now and to consider contracting technical assistance. The court directed staff to prepare an RFQ/RFP prioritizing an incentive-package and nomination support for Opportunity Zones 2 and to bring proposals back to the court for selection.
Representative quote: "The incentive is stronger now within your county than it previously was," Legarza said, outlining the rural bonus under OZ2.
What this means: If Harney County prepares a persuasive nomination and follows through with marketing and site readiness, it may increase the chance of gubernatorial nomination and subsequent private investment; the court prioritized rapid technical support to meet the anticipated March–April nomination window.
