AGENDA TITLE:
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Presentation on Opportunity Zones 2.0 Program (ED)
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MEETING DATE:
July 15, 2026
PREPARED BY:
Luis Aguilar, Economic Development Director
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RECOMMENDED ACTION:
Receive a presentation on the Opportunity Zones 2.0 program.
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BACKGROUND INFORMATION:
The City of Lodi is currently participating in the first-generation Opportunity Zone Program (OZ), which was created under the Tax Cuts and Jobs Act of 2017 to encourage reinvestment of capital gains into economically distressed communities. The program offers preferential federal tax treatment for investments in qualified projects located within designated low-income census tracts. Investors who reinvest capital gains into qualified projects within these zones can receive preferential federal tax treatment, including deferral and potential reduction of capital gains taxes.
Eligible investments include:
? New construction or rehabilitation of real estate
? Equity investments in operating businesses
? Infrastructure or energy-related projects
The program is designed to promote sustained economic growth, job creation, and community revitalization in historically underserved areas. The City's opportunity zone is currently comprised on one census tract; Tract 44.03 (DEOID 06077004403) which is 0.4 square miles bound by E. Lodi Ave to the north, E. Kettleman to the south, Central Ave to the east and the railroad tracks to the west. The tract has seen no opportunity zone investments since the program was established. In addition, Tract 45.02 (GEOID 06077004502) in now eligible for this program and covers a larger footprint; bounded by E. Lockeford to the north, E. Lodi Ave to the south, Guild Ave to the east, and the railroad tracks to the west.
The City's designated Opportunity Zones allow investors to utilize federal tax incentives for investments in economically distressed areas, supporting real estate development, business growth, and community revitalization. Th...
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