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City staff outlines Opportunity Zone 2 rules and asks council to prioritize downtown and North Gateway tracts
Summary
Staff briefed the City Council on OZ2 rule changes, eligibility maps and a short deadline to nominate census tracts for the new permanent Opportunity Zone program; staff recommended prioritizing the downtown tract (3302) and the Gateway tract (2101) and said nominations are due May 22 with new designations active Jan. 1, 2027.
City staff briefed the Springfield City Council on changes to the federal Opportunity Zone program (referred to by the presenter as "OZ2"), explained that new program rules were established as part of HR 1, and asked the council to provide direction on which census tracts to nominate.
The staff presenter said OZ2 is now permanent, nominations are made every 10 years, and new rules include stricter family‑income requirements and a focus on rural areas; eligibility is determined by census tract. The presenter pointed the council to packet attachments that show current designations and a separate yellow map of tracts eligible under the new rules. She noted that some previously eligible tracts (for example, the Glenwood tract) may no longer qualify under OZ2.
Staff recommended a priority list that begins with the downtown tract (ending in 3302) and the Gateway tract (ending in 2101) and explained the governor will make final designations from nominated tracts; Business Oregon supplies data and runs the application process. The presenter said nominations would be applied for by May 22 and that the new designations would be active Jan. 1, 2027 under OZ2 rules.
Councilors asked whether opportunity funds are government administered or private and how the city can influence outcomes. Staff said opportunity funds are typically private‑to‑private investment vehicles and that the local government’s role is to nominate tracks and share information; she stated that detailed information about specific fund allocations is generally not publicly available. Councilor Buck and others said they supported keeping the downtown and North Gateway tracts and discussed adding a third tract (noting tract 1904 as a candidate) if statewide limits and priorities allowed it.
Councilors also asked whether residential projects could qualify and whether locally preferred development types can be steered; staff said she would confirm eligibility details and noted OZs have fewer restrictions than some federal programs. Several councilors asked staff to give congressional delegation feedback regarding the Glenwood area because boundary or eligibility rules can affect local priorities.
No formal vote was taken; staff asked for council direction on priorities so it could prepare nominations according to the May 22 deadline.
