High Point staff recommends three census tracts for Opportunity Zones 2 nomination

City Manager Tasha Logan Ford and Peter Bishop, the city’s director of economic development, presented staff’s recommendation that High Point re‑nominate three census tracts—Tracts 138, 140 and 143—for consideration under the federal Opportunity Zones 2 (OZ2) program.

“We would like to get a consensus from the group on how we can move forward with those three,” City Manager Tasha Logan Ford told the council as she introduced the item. Bishop said the program’s design changes in OZ2 address several criticisms of the first round and could better align investor interest with local priorities.

Bishop described OZ1’s results and OZ2’s changes. “The mobilization of 150,000,000,000 of private equity through these qualified opportunity funds, through 2024, was one of the research points that we identified,” Bishop said, adding that about 80 percent of that capital flowed into real‑estate projects in OZ1. He said OZ2 introduces stricter tract eligibility, removes the contiguous‑tract allowance from OZ1, establishes a rolling five‑year investment window, and reduces the substantial‑improvement threshold for rural tracts from 100 percent to 50 percent.

Bishop told the council that High Point currently has preliminary ACS (American Community Survey) data and that staff identified roughly 13 local tracts that may be eligible under the preliminary maps. He recommended resubmitting the same three tracts chosen in the first round because they align with city planning work and with areas eligible for other incentives.

Those local incentives, Bishop said, can be stacked with federal programs: “If you combine residential multifamily, hospitality and commercial projects and then add new markets tax credits and LIHTC benefits, you get more bang for your buck,” he said, referring to new markets tax credits and low‑income housing tax credits (LIHTC) that can enhance financing for projects in eligible tracts.

Councilmembers questioned how the substantial improvement test would apply. Councilmember Peters asked whether investors could simply buy and hold property to get tax benefits. Bishop replied that purchase alone does not meet the substantial improvement test and reiterated that the rural 50 percent threshold is limited to rural census tracts, not urban tracts in High Point.

The presentation included map illustrations and staff’s review of overlaying local priorities—such as the Southwest Mill District plan, existing industrial sites and targeted downtown incentives—with the preliminary OZ2 tract maps. Staff noted one industrial tract (144.08) lies partly in Davidson County and that cross‑county eligibility could complicate projects, so it was not included in the city’s recommendation at this time.

No formal nomination vote occurred at the meeting. After staff finished, the council approved the meeting agenda and indicated consensus to support staff’s recommended nomination package pending final ACS data and the Department of Commerce and Treasury processes. Bishop said staff will return with further information if the federal or state maps change.

The meeting then recessed to a closed session to consult the city attorney on a separate agenda item.