Oak Harbor staff recommend applying for Opportunity Zone 2.0 nominations for two census tracts

City grant staff and economic development partners asked the council to authorize city applications to the state for Opportunity Zone 2.0 nominations, saying the updated federal/state program (2.0) reduces some thresholds designed to attract private capital and that a short May application window requires council direction.

What staff proposed: Grants administrator Wendy Horn and community development staff recommended the city submit nomination materials for two census tracts: the existing tract (9707) that previously held an OZ designation, and a newly eligible tract (9709) that extends from Pioneer to the Naval Air Station (a corridor the staff said includes potential redevelopment opportunities). The state’s Department of Commerce will implement 2.0 and the federal program changes seek to increase rural investment incentive structures.

Timing and ask: Staff noted the application opens May 1 and closes May 28; the nomination asks about active projects, zoning, infrastructure readiness and whether an area can realistically attract private capital. Staff said they have the capacity to prepare one or two applications within the window and would bring a council resolution to accompany the nomination.

Council reaction: Council members expressed mixed views: some noted that Opportunity Zone 1.0 saw little local uptake and questioned the magnitude of local demand, while others urged adding the tool to the city’s economic toolbox if staff bandwidth allows. Several councilors said staff time should be considered before committing; staff said they can prepare the materials within the timeline if council directs.

Bottom line: Staff will proceed to prepare nomination materials for one or both eligible tracts if council authorizes the application and will return with the formal resolution and submission package.