Laserfiche WebLink
File Number: 19-453 <br />·Comparison of key measures of competitiveness and inclusion with regional, state, <br />national, and peers using mySidewalk’s Data Library and apportionment tools; <br />·Highlighted city business attraction and retention efforts; <br />·Custom data and demographic reports to prospective employers and site selection <br />consultants; <br />·Demonstration of how catalytic real estate projects result in tangible results for people and <br />places; and <br />·Holistic location siting - housing, transportation, anti-displacement and access to quality <br />jobs. <br />With this Opportunity Zone Dashboard, potential investors have a central location to access the <br />information they need about the Opportunity Zone, as well as population, workforce, housing, <br />economic and health statistics. San Leandro has identified two unique clusters, the Bay Fair <br />Transit-Oriented Development (TOD) Plan Area and the San Leandro Business Center (100 <br />Halcyon), each with their own unique and valuable markets, culture, assets and opportunities. <br />What are Opportunity Zones/Funds? <br />Opportunity Zones are a new tool for community development that provide tax incentives for <br />investment in designated census tracts. Investments made by individuals through special <br />Opportunity Funds in these zones are allowed to defer or eliminate federal taxes on capital gains. <br />A Qualified Opportunity Fund is an investment vehicle that is set up as either a partnership or <br />corporation for investing in eligible property that is located in an Opportunity Zone and that utilizes <br />the investor’s gains from a prior investment for funding the Opportunity Fund. A Fund must hold at <br />least 90% of its assets in qualifying property. <br />There are three tax advantages to investing in Opportunity Zones. <br />1. Temporary Deferral (Year 1) <br />A temporary deferral of inclusion in taxable income for capital gains reinvested into an <br />Opportunity Fund. The deferred gain must be recognized on the earlier of the date on <br />which the opportunity zone investment is disposed of or December 31, 2026. <br />Those who invest realized capital gains into a Qualified Opportunity Fund can defer paying <br />capital gains tax for those earnings until April 2027 for investments held through December <br />31, 2026. Gains must be invested in a Qualified Opportunity Fund within 180 days in order <br />to qualify for any tax treatment available under the Opportunity Fund program. <br />2. Step-Up in Basis (Year 5 or 7) <br />A step-up in basis for capital gains reinvested in an Opportunity Fund. The basis is <br />increased by 10% if the investment in the Opportunity Fund is held by the tax payer for at <br />least 5 years and by an additional 5% if held for at least 7 years, thereby excluding up to <br />15% of the original gain from taxation. <br />Those who hold their Opportunity Fund investments for at least five years prior to <br />December 31, 2026, can reduce their liability on the deferred capital gain principal <br />invested in the Opportunity Fund by 10%. If the investment is held for a minimum of seven <br />Page 2 City of San Leandro Printed on 8/28/2019 <br />14