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San Rafael staff map five eligible Opportunity Zone tracts; council presses for guardrails

San Rafael Economic Development and Housing Subcommittee · June 16, 2026
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Summary

City staff identified five eligible census tracts for Opportunity Zones 2.0 and outlined the state nomination timeline; councilmembers asked for clear guardrails to limit displacement and requested coordination with the Southeast San Rafael specific plan before submissions are finalized.

City staff Alexis opened the discussion of Opportunity Zones 2.0, and Michael Scott, an economic development intern, reviewed background and deadlines for the federal/state nomination process. Scott said the IRS published eligible census tracts in April and the governor’s office opened a local recommendation window June 15 that runs through July 25; governors must submit nominations by the end of September and any new OZ designations would take effect Jan. 1, 2027 for a 10‑year period.

Scott said San Rafael has five eligible tracts: a downtown tract that includes the transit center and several in‑process projects, a tract covering parts of West Francisco and Gristle Park, and three tracts in the Canal and Southeast San Rafael area. He advised jurisdictions can recommend multiple eligible tracks and rank them by priority; supporting letters and attachments are accepted only after the July 25 application window closes during the public comment period.

Staff outlined state scoring priorities that will influence the governor’s choices: California Jobs First and related workforce programs, state affordable‑housing objectives and housing‑element alignment, the Business‑Ready Sites program, and active or planned public investments. Councilmembers and staff discussed potential benefits for housing and economic development but repeatedly raised risks of displacement and extractive investment without guardrails. Members asked staff to return with clear options, including strengthening just‑cause eviction and relocation assistance protections, and to coordinate with the Southeast San Rafael specific plan before final recommendations are submitted.

Staff noted that governors may nominate at most 25% of a state’s eligible tracks, making the statewide selection competitive. Staff recommended outreach to regional and state partners and pledged to supply the council with a clear, locally prioritized recommendation ahead of the July 25 deadline.