DeSoto staff recommend three census tracts for Opportunity Zone 2.0 nominations

DeSoto Development Corporation staff presented a recommendation to nominate three census tracts for the federal Opportunity Zone 2.0 program and described the federal/state process for nomination and certification.

Presenter Josh Mejia told the board the program uses U.S. Census tract data to determine eligibility and that DeSoto currently has three eligible tracts. “We have 1 opportunity zone,” Mejia said, then outlined the tracts by number and geography and recommended submitting census tracts 166.19 and 166.10 separately and adding 166.35 as a nomination because it contains active commercial activity and large employers such as Methodist Hospital that support an employment base in the tract.

Mejia described earlier Opportunity Zone 1.0 investments that reported using the program and named several firms that publicly identified projects under the prior program. He also summarized the program incentives and constraints, including the requirement for investors to hold capital for five to ten years to receive the full capital-gains tax benefit and concerns raised nationally about transparency under prior rules.

Board members asked whether the city can nominate only some tracts or must submit all three; Mejia said the nomination packet goes to the governor, who selects what to forward to federal officials. He also said the nomination window opens July 1 and that there is a September 29 deadline for the governor’s submission. The board discussed opportunities for public outreach after nominations to explain potential benefits and marketing to prospective investors.