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HomeMy WebLinkAboutR-2026-061 Opportunity ZoneRESOLUTION NO. 2026-061 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA, AUTHORIZING SUBMISSION TO FLORIDA COMMERCE TO APPLY FOR DANIA BEACH “OPPORUTNITY TRACK 2.0” CENSUS TRACK RECOMMEDATIONS FOR POTENTIAL OPPORTUNITY ZONE NOMINATIONS BY THE GOVERNOR; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Opportunity Zones were created by the Tax Credit and Jobs Act of 2017; and WHEREAS, the Opportunity Zone program is designed to encourage investors, businesses, developers, financial institutions, and other investors to reinvest capital gains into distressed census tracts to foster job creation; and WHEREAS, in simple terms, Opportunity Zones are federally designated, economically distressed communities where investors can receive tax incentives for investing in local development projects; and WHEREAS, the benefit for participating in the program is deferral, reduction, and potential elimination of taxes on capital gains and not rebates or grants; and WHEREAS, the “One Big Beautiful Bill of 2025 made the program a permanent part of the tax code and further refined the program; and WHEREAS, new opportunity zones (“Opportunity Zones 2.0”) will be nominated by Governors starting July 1, 2026, and qualified by the U.S. Treasury by December 31, 2026, to take effect on January 1, 2027; and WHEREAS, moving forward Opportunity Zones will be nominated and designated every 10 years; and WHEREAS, the Opportunity Zones 2.0 will provide more restrictive eligibility criteria to qualify new census tracts, including a lower median family income threshold less than 70 percent and elimination of contiguous tracts; and WHEREAS, the new program establishes additional reporting for funding and businesses, and a two-year overlap period (2027–2028) when both Opportunity Zone 1.0 and 2.0 maps will be in effect; WHEREAS, the goal of the new legislation is to broaden investments to include more operating businesses and rural areas, with rural areas will receive a 30 percent basis step-up after five years compared to the standard 10 percent for non-rural investments; and 2 RESOLUTION #2026-061 WHEREAS, in order to be considered eligible for Opportunity Zone designation, census tracts must have: either a poverty rate of 20 percent or higher; or a median family income (MFI) less than 70 percent of the relevant benchmark; and WHEREAS, for metropolitan tracts, the relevant benchmark is the metro area’s MFI and for non-metropolitan tracts, the benchmark is the statewide MFI; and WHEREAS, if an area is qualifying on poverty, a census tract’s MFI must not exceed 125 percent of the relevant benchmark, and the number of census tracts governors can nominate is determined by the number of tracts that meet these criteria; and WHEREAS, the Governors is allowed to nominate up to 25 percent of eligible tracts statewide, with a minimum guarantee of 25 tracts, and official eligibility will likely be based on the 2020–2024 American Community Survey (ACS) 5-Year Estimates that are expected to be published in January 2026; and WHEREAS, a certain number of census tracts within the City of Dania Beach are eligible for Opportunity Zone designation; and WHEREAS, the City is eligible to file with Florida Commerce for tract recommendation into the “Opportunity Zone 2.0.”; and WHEREAS, the City Administration recommends submitting for census tract recognition for certain areas of the City as “Opportunity Zone 2.0”; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA: Section 1. That the above “Whereas” clauses are ratified and confirmed, and they are made a part of and incorporated into this Resolution by this reference. Section 2. That City approves the appropriate officials/administration to submit an application to Florida Commerce for certain City census tract recommendation areas to be reviewed and accepted into the “Opportunity Zone 2.0.” Section 3. That all resolutions or parts of resolutions in conflict with this Resolution are repealed to the extent of such conflict. Section 4. That this Resolution shall be effective immediately upon enactment. PASSED AND ADOPTED on April 28, 2026. Motion by Commissioner Ryan, second by Commissioner Rimoli 3 RESOLUTION #2026-061 FINAL VOTE ON ADOPTION: Unanimous X Yes No Commissioner Lori Lewellen ____ ____ Commissioner Luis Rimoli ____ ____ Commissioner Archibald J. Ryan IV ____ ____ Vice Mayor Marco Salvino ____ ____ Mayor Joyce L. Davis ____ ____ ATTEST: ELORA RIERA, MMC JOYCE L. DAVIS CITY CLERK MAYOR APPROVED AS TO FORM AND CORRECTNESS: EVE A. BOUTSIS CITY ATTORNEY