Kosmont Companies is at the forefront of helping communities and private investors use the Opportunity Zone program to bring investment to qualified OZ communities.

The Tax Cuts and Jobs Act of 2017 created the Opportunity Zones (OZ) program to unlock unrealized capital gains by incentivizing private sector investment and development in low-income census tracts. California’s 879 Opportunity Zones represent 10% of the national market and are spread across every county in the state.

Opportunity Zone investments allow investors to:

  • Defer federal taxes on any recent capital gains until December 31st, 2026;
  • Reduce that tax by up to 15%; and,
  • Pay as little as zero taxes on potential profits from a Fund if the investment is held for 10 years.

If a city is prepared, it can use the opportunity program to attract private sector investment and catalyze growth in targeted areas. In conjunction with other tax incentives and tax deferral strategies, OZ investments can enhance the economic viability of a proposed project, jump start projects, stimulate housing development, and encourage economic activity within a community.

There are over 8,700 Opportunity Zones across the United States, and over 100 Opportunity Funds are prioritizing the best sites for investment. Investor guidelines must be met, or tax advantages will not be realized. Speed to market and project execution is critical, and entitlement/CEQA risk reeds to be minimized.

Kosmont understands the challenges facing counties and cities, property owners, community organizations, and investors as they attempt to navigate the rapidly developing Opportunity Zone marketplace. The Kosmont Team understands the remaining policy questions that need to be addressed by federal and state regulation, the impediments that may slow the development process, and the importance of strategically pairing Opportunity Zone investments with other funding sources and initiatives (e.g. EIFDs, TIF, Federal Tax Credits).

Larry Kosmont and Gavin Newsome cropped

“We want to pair EIFDs with Opportunity Zones.
That is the big idea!”
Gov. Newsom, 2019-2020 Budget Address

The Kosmont Team is uniquely suited to assist with Opportunity Zone investments:

  • Local Knowledge and Broad Network: 33 years serving cities & counties on matters related to economic incentives, real estate/land-use, and public/private finance
  • Project & Political Due Diligence: match market viability to community support
  • Industry Expert: special/tax increment financing districts (EIFD, CRIA, etc.) which can be overlaid onto Opportunity Zones
  • Unique Strategic Partnership with OppSites: Official California Marketplace for OZ marketing and fund research

Kosmont Companies is ready to support public and private sector clients with Opportunity Zone investments:

  • Developing Prospectus for Opportunity Marketing
  • Updating Economic Development Plans, Permitting Processes, and Zoning
  • Strategic Planning & Identification of Target Areas, Properties, or Businesses
  • Opportunity Marketing via OppSites
  • Matchmaking Support
  • Negotiation/Transaction Support