Residents and staff weigh benefits of nominating Census Tract 923 for Opportunity Zone designation

The Port Orchard City Council held a public hearing to gather community input on whether the city should seek state nomination of Census Tract 923 in the 2026 federal Opportunity Zone designation cycle.

Nick Bond, speaking for city staff, explained the state administers a competitive process and will evaluate nominations on criteria that include proposed projects, housing and job estimates, and evidence of public outreach. Bond told the council the city itself faces no direct cost to submit a nomination and noted that demonstrated community support is a key scoring factor.

Steve Segoe, a South Kitsap resident who said he has experience designating and operating opportunity funds, told the council he “strongly recommend[s] that we pursue the subject census tract.” Segoe said prior rounds in the region produced mixed results but argued the current corridor improvements, including planned Bethel Phase 1 road investment, make Tract 923 a stronger candidate now.

Council members asked whether prior designations produced local benefits. Bond said federal reporting and transparency have improved since the program began, that some local projects (including multifamily and permitted projects) may have benefited in prior rounds, and that the city’s application should list sample projects and infrastructure investments to strengthen its score.

Multiple council members pressed staff on whether investors can obtain tax benefits without actual development in the tract; Bond cautioned he was not a tax accountant but said the program’s advantage comes from a combination of reinvestment and holding periods and that applications should demonstrate proposed on-the-ground projects. The city will receive written comments and use testimony to inform a future council decision; there was no formal vote on the nomination at the hearing.