Opportunity Zones may Help Revitalize Pomona
The federal tax bill passed at the end of 2017 established a new community development program aimed at qualifying urban and rural communities. The law allowed the Governor to designate certain census tracts as “Opportunity Zones” for a period of at least 10 years. Pomona is home to 4 Opportunity Zones as shown on the map below.
Investments made by individuals through special funds in these zones provide tax benefits to the investor as well as capital to the organization making improvements. For example, real estate developers can establish a fund in order to generate third-party investment capital for their projects located within an Opportunity Zone. Investors are rewarded with federal tax deferments and local communities benefit from property improvements. Local property and sales taxes are not deferred, preserving revenue streams for the City.
This program provides a unique opportunity for revitalizing Pomona by stimulating investment in key parts of the community, including Downtown, substantial portions of Holt Avenue, and parts of the heavily-traveled Temple Avenue corridor. The City’s General Plan, Corridor Specific Plan and Downtown Specific Plan provide significant development potential in these zones which may enhance, residential and commercial options in the City as well as contribute general fund revenue.
We will work to make sure developers are aware of the benefits presented by our Opportunity Zones, and attract development that benefits our community.