June 3, 2019

ICYMI: Will “opportunity zones” help or hurt low-income neighborhoods? The jury is out

The Rockwood Rising site, owned by the city of Gresham, was the site of a Fred Meyer that closed in 2003. The city plans a major redevelopment it hopes will spur more development in the neighborhood. | Photo credit Elliot Njus at the Oregonian

The Opportunity Zone program — a federal strategy that provides preferential tax treatment to investors, allowing them to sell a good that has increased in value, such as stock or real estate, but delay paying taxes on capital gains if they immediately reinvest in a building or business that is located in a recognized site — has selected the Rockwood neighborhood as a new opportunity zone in Oregon.

Rockwood, between the borders of Portland and Gresham, has historically been a disinvested neighborhood in the Portland area. Zoning the region as an opportunity zone will make it a tempting investment opportunity for private investors and real estate developers.

The Oregonian reports on the selection of Rockwood as an opportunity zone:

Rockwood, just inside Gresham’s borders, stretches from roughly 162nd to 202nd avenues, along East Burnside Street and the MAX Blue Line. A high percentage of residents live below the poverty line, and many are members of racial or ethnic minorities. It’s long suffered under a reputation for high crime, though its crime rate is similar to other neighborhoods considering its population.

“There are a lot of complex reasons why a neighborhood like Rockwood gets overlooked, but the systems have really failed our neighbors, and getting unstuck has been a really complicated problem,” said Brad Ketch, founder of the nonprofit Rockwood Community Development Corp.

Read the full story here.