Opportunity Zones Pull Investors Into Low-Income Areas
By Solomon Crenshaw Jr.
Alex Flachsbart’s business cards were hot properties at the Jefferson County Courthouse Tuesday after his presentation to the County Commission about opportunity zones in the area.
The founder and CEO of the nonprofit Opportunity Alabama briefed the commission on his group’s work with Opportunity Zones, which encourage investment in low-income areas.
“Our goal is to rally the ecosystem here in the state of Alabama around opportunism,” he said.
Flachsbart, a former tax attorney, said the zones were created with the passage of the tax bill in December. The idea is to give tax breaks to investors who put their money into a fund that then invests in businesses and real estate projects in low-income areas. The incentives grow the longer the money stays invested, he said.
“(It goes) all the way to the point where if you’re an investor who keeps their money in a fund that’s invested in the local community for 10 years or longer, you don’t pay any tax at all on the appreciation of your investment,” he said. “If I make a good bet on a place like Ensley, or a place like East Lake or a place like Fultondale, the good news (is) that, if my investment substantially improves, I get to walk away tax-free after 10 years.”
County commissioners were clearly impressed.
“The opportunity zones are a godsend for Birmingham and Jefferson County,” Commission President Jimmie Stephens said. “It allows an influx of investment that we haven’t had. It adds a tool to our toolbox in order to bring economic development and redevelopment back to Birmingham and to Jefferson County.”
The governor’s office, with advice from the Alabama Department of Economic and Community Affairs, has designated 158 areas across the state as Occupation Zones. The Birmingham area has 26 census tracts designated as Opportunity Zones. Many of those are clustered along the Interstate 20/59 corridor, at the I-20/459 junction and north along I-65.
The community benefits when Opportunity Alabama puts projects in front of potential investors, Flachsbart said.
“If we can find good, developable assets that have both the community benefit and a potential cash flow for investors, that’s our goal,” he said. “That’s what we’re looking to find.”
Flachsbart said the program is having an impact across the country.
“The treasury secretary estimates that about $100 billion worth of new investment will flow through this program before the end of 2019,” he said. “It’s an incredible new economic development tool. It has a national footprint and it just so happens that national footprint has a very large home here in Jefferson County.”
New York Giants hire John Harbaugh as coach after identifying him as their top choice
Harbaugh joins the Giants 11 days after he was fired by the Baltimore Ravens. The Super Bowl champion is now tasked with turning around a beleaguered franchise.
US launches new retaliatory strike in Syria, killing leader tied to deadly Islamic State ambush
A third round of retaliatory strikes by the U.S. in Syria has resulted in the death of an Al-Qaeda-affiliated leader, said U.S. Central Command.
NASA rolls out Artemis II craft ahead of crewed lunar orbit
Mission Artemis plans to send Americans to the moon for the first time since the Nixon administration.
Trump says 8 EU countries to be charged 10% tariff for opposing US control of Greenland
In a post on social media, Trump said a 10% tariff will take effect on Feb. 1, and will climb to 25% on June 1 if a deal is not in place for the United States to purchase Greenland.
‘Not for sale’: massive protest in Copenhagen against Trump’s desire to acquire Greenland
Thousands of people rallied in Copenhagen to push back on President Trump's rhetoric that the U.S. should acquire Greenland.
Uganda’s longtime leader declared winner in disputed vote
Museveni claims victory in Uganda's contested election as opposition leader Bobi Wine goes into hiding amid chaos, violence and accusations of fraud.
