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Tumwater council backs Opportunity Zone nomination for brewery district and airport tracts
Summary
Tumwater unanimously adopted resolution R2026‑006 supporting local applications to nominate two eligible census tracts (one covering the brewery district, one covering the airport) for the state's Opportunity Zone program, intended to attract federal capital gains investment.
The Tumwater City Council unanimously adopted Resolution R2026‑006 on April 21 to express the city’s support for nominating two eligible census tracts for the Washington State Opportunity Zone program.
Acting City Administrator Kelly Adams briefed the council on the program, explaining it is a federal tax‑incentive tool that can direct capital‑gains investment into economically distressed census tracts. Adams said the nomination process is managed by the Washington State Department of Commerce and that the program’s updated permanent form (Opportunity Zone 2027) begins in January 2027. She described the two Tumwater tracts under consideration: a northern tract that includes the brewery district and a southern tract that includes the airport.
Council Member Megan Sullivan moved adoption of the resolution; Council Member Brandon Weeden seconded. Councilors asked procedural questions about timing and tribal outreach; Adams said staff is preparing supporting materials, regional coordination and tribal engagement to make the city’s application competitive. The motion passed unanimously.
The resolution asks the governor to nominate the identified tracts to the U.S. Treasury (IRS authority) so investors may receive federal tax benefits—deferral of capital gains for five years, a stepped‑down tax basis after five years, and potential exclusion of gains if an investment is held 10 years or longer. The council did not vote on any development incentives beyond the resolution of support.
