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FOSTERING COLLABORATION ; ADVANCING OPPORTUNITIES
By Robin Schabes
Guide to creating a localized collaborative ecosystem to support of Opportunity Zones investments in inclusive community development-driven projects and businesses .
Although much has been written about how to structure
Opportunity Zones ( OZ ) funds and project investments , comply with regulations , or measure impact , less has been heard from those working on the ground to coordinate efforts to ensure the incentive ’ s capital is deployed in a way that will truly benefit communities .
The OZ tax incentive was designed to drive long-term equity investments to real estate projects and operating businesses in historically disinvested communities throughout the nation . Recent analyses from the Council of Economic Advisors and the Milken Institute , among others , show that it is the most significant federal incentive for community development created in decades . However , to work more effectively , strategic collaboration across local stakeholders – investors , developers , businesses , entrepreneurs , local government , philanthropy , and community leaders – is just as critical to harnessing and realizing the potential of this tool .
By design , OZ capital is not channeled via a centralized government entity like other federal community development incentives . This has great advantages but also emphasizes the importance of intentional collaborative efforts to connect with relevant actors across industries and geographies . Such efforts yield greater impact , result in new relationships , reveal new investment opportunities , and expand the pathways to investors beyond the traditional community development banking and government partners .
Jurisdictions across the country have embraced the OZ program to leverage this new community economic development tool . Approaches range from the assignment of a key government point
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