STRATEGIES HOW STATES AND CITIES CAN ATTRACT OZ INVESTMENTS FOR ECONOMIC DEVELOPMENT
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The problem , from the perspective of public servants , is that real estate investments don ’ t make the same impact on local economies as do new businesses bringing jobs to the communities . an agreement on a public / private partnership with members of their community , they could leverage that relationship into a longstanding connection that supports community development in the long term .
These are just a few efforts to spur impact investment in the OZ world . Remember that the success of the OZ incentive does not hinge exclusively on the capital the incentive brings in . It will take a proverbial village to emerge from this recession . The OZ incentive has inspired new ways for communities to engage with investors , and we may come to find that these new conversations and relationships pave the way toward sustainable development in communities for years to come . communities . OZ business investments lag behind OZ real estate deals , but as understanding of the OZ incentive grows among the investor community , businesses are well-positioned to receive OZ investment as we emerge from the recession . Here is how states and municipalities can make the OZ incentive work toward their goals for economic development .
DEVELOP A COMMUNITY PROSPECTUS
Investors are always looking for investment opportunities that come with polished pitches and extensive background information that ties the investment into a broader development strategy . Communities with prospectuses and five to ten-year plans present as strong partners for investors looking to minimize risk . Some states and cities have OZ programs that offers grants to help communities with OZs develop prospectuses for investors . Cities and counties could use this grant funding as a launching point for impactful development opportunities .
TALK TO BUSINESSES SEEKING TO BUILD THEIR CAPITAL STACKS
The OZ incentive is complex , and businesses seeking to expand in OZs may not fully understand how to incorporate the OZ incentive into their fundraising strategy . The sooner entrepreneurs realize they may have access to patient capital , the more likely they ’ ll be able to reach their funding goals .
Mike Landes serves as the Opportunity Zone program and special projects director for the Colorado Office of Economic Development and International Trade ( OEDIT ). He oversees the state OZ program and its affiliated programs , including the OZ Capital Accelerator Program and the OZ Steering Committee Technical Grant Assistance Program . Before joining OEDIT , Mike worked for the NC REALTORS , North Carolina ' s state association of real estate professionals , as their director of political operations and economic development . Mike holds a master ' s of public policy from Duke University and B . A . s in political science and ancient near-east comparative literature from Columbia University .
THINK ABOUT PUBLIC / PRIVATE PARTNERSHIPS
The OZ program incentivizes the use of patient capital . Communities should look into using OZ funding for long-term investments that incorporate either a long-term relationship with a private investor or some form of a buyout strategy after the 10-year investment mark . Infrastructure investments like water , renewable energy , and broadband are ideal for this kind of potential partnership .
BUILD RELATIONSHIPS WITH LOCAL POTENTIAL INVESTORS
Local investors interested in supporting their communities can have an outsize effect on development in their local OZs . High net worth residents can decide to leverage the OZ incentive to bring jobs to their community . Building these relationships is easier said than done , but if a county or city is able to reach
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