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Puyallup council backs Meridian-area census tract to pursue federal Opportunity Zone designation
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Summary
After a staff briefing on the updated Opportunity Zones program and two tracts in Puyallup, the council signaled support for nominating census tract 53053073405 (the Meridian corridor area near the Good Samaritan expansion) and asked staff to submit an application during the April 1'May 1 window.
Puyallup City Council members directed staff to pursue federal Opportunity Zone designation for census tract 53053073405, citing new investment potential along the Meridian corridor near the MultiCare Good Samaritan Hospital expansion.
Public Affairs Officer Eric Johnson and federal-relations consultant Jen Covino briefed the council on Opportunity Zones 2, the federal program revived after the 2017 Tax Cuts and Jobs Act with updated criteria. The program creates tax incentives for private investors who place capital into qualified opportunity funds to develop property or businesses in designated census tracts; the program's application window in Washington opens April 1 and closes May 1, with final selections to the U.S. Treasury expected later this year.
Johnson outlined two Puyallup-qualifying tracts (53053073407 and 53053073405), describing tract 53053073407 as downtown-adjacent with existing developments that could qualify and tract 53053073405 as an area with medium- and high-density multifamily zoning and commercial corridors near Meridian and Good Samaritan Hospital. Covino highlighted federal grant and discretionary preferences for projects serving or located in Opportunity Zones and urged the council to weigh where future infrastructure or housing projects might best align with federal priorities.
Councilmembers exchanged questions about whether the program prioritizes job creation versus housing, whether existing projects should receive benefits, and the possibility of requiring local community-benefit agreements (affordable-unit set-asides, local hiring or anti-displacement protections). Several members expressed concern that without local guardrails the tax advantages could disproportionately benefit outside investors. Deputy Mayor Johnson and others urged the city to include conditions such as affordable-housing percentages or local-hire requirements if the council later offers additional local incentives.
After discussion about the Meridian corridor''including the proposed $500 million+ hospital expansion and recent comprehensive-plan zoning changes'several councilmembers said the Meridian-adjacent tract (53053073405) would be the logical priority to nominate because it would target new investment near major regional drivers. Councilmember Gilliam explicitly stated support for the second option (53053073405); the mayor and other members signaled agreement and asked staff to prepare an application to the Washington State Department of Commerce for the April 1'May 1 submission window.
What's next: staff will prepare the formal application and follow state guidance; the governor will send nominations to the U.S. Treasury around July 1, and approved designations would become effective Jan. 1, 2027. The council also requested that staff return with potential local policy language (community-benefit agreement templates or conditions) to accompany state applications or future developer proposals.
Speakers quoted (roles as recorded): "This is a tool, not a solution," Councilmember Smolko said about Opportunity Zones. Eric Johnson, Public Affairs Officer, explained the investor mechanics, and consultant Jen Covino advised the council to consider how the city's planned infrastructure and housing projects could align with federal discretionary priorities.
The council's guidance is directional; a formal nomination requires staff follow-up and an application to the state.
