1. Opportunity Zones Webinar Series
Series 1 – Recap/Update/Resources

2. Today’s Presenters
Michael Eggleston, Community Development Advisor – Finance Federal Reserve Bank of St. Louis Sallie Hemenway, Division Director, Business and Community Services Missouri Department of Economic Development

3. Today’s Content Webinar Series Opportunity Zone Recap Update Resources
Next 3 Wednesday’s at 11:00 AM
Guest speakers
Opportunity Zone Recap
Update
Resources
Q&A

4. Opportunity Zone Webinar Series
Sept 26 - Updates, Resources and Actions-What We Can Do Now/What Others are Doing
Speaker: Michael Eggleston, St. Louis Federal Reserve, Sallie Hemenway, DED)
This session provides a refresher on Opportunity Zones in Missouri and nationwide, what resources have been made available in the months since the designation and what activities States and Local governments can undertake to maintain an edge.
Oct 3 - Investors and Deal Flow - Marketing Your Zone
Speaker: Director Walters, DOR, TBD
This session focuses on the different types of strategies can communities deploy to attract investors.

5. Opportunity Zone Webinar Series
Oct 10 - Entrepreneurs and Opportunity Zones/Sparking Investment
Speakers: Bill Anderson, TBD
   This session describes the match of angel and early stage investors with opportunity zone funds to take advantage of benefits tied to those riskier equity investments.
Oct 17 - Fund Management and Treasury Regs
Speakers: Brian Bear, DED, UMB Bank representatives
This session reviews the most recent information from Treasury and identifies funds and fund management in the works.

6. Opportunity Zones
8700 Zones designated by U.S. Department of the Treasury last spring

7. Opportunity Zones
11% of the US population and territories lives in an Opportunity Zone
Evenly split between urban and rural zip codes
Households in Zones have lower home values, lower homeownership rates and higher levels of cost burden
States did not nominate “high end” – Chose higher need areas – Average poverty rate = 31%
3/4ths in zip codes with employment growth
Sources: Zack Patton, Enterprise Community Partners/EIG

8. Missouri 161 Zones Designated Represents 47 different cities/counties
Every applicant received at least first choice
Complete list
%20Zone%20List_0.pdf
Each has identified opportunities for investment, plus opportunity to improve Zone economics

9. State of Missouri Zones

10. Kansas City Zones

11. St. Louis Zones

12. New Tool = New Actions
Designed to attract long term private investments in distressed communities
U.S. investors hold $2.3 trillion in unrealized capital gains – untapped resource (Source LISC, NMSC)
Not a typical economic development tool
Requires new pro-active steps by communities and states to be successful
No prescription – opportunity to shape market
Requires creativity

13. Information & Timeline
A few myths dispelled:
Opportunity Funds can invest in any Zone, even across state lines
Funds organizing now are not all privately held
Funds accepting investments now still face some risk without final rule.
IRS/Treasury New Q&A – September
IRS/Treasury rules – November/December

14. What steps can we take now?
Develop local strategies for building your market
Engage the market place
Recruit investment
Identify investors and fund managers
Identify entrepreneurs, property developers
Steal ideas from other states/cities
Make suggestions for what role DED can play
Ex: Investor/project website
Research on-line resources

15. Opportunity Zones Webinar
Mike Eggleston
September 26, 2018

16. The views expressed in this presentation are my own and do not necessarily reflect the views of the Federal Reserve Bank of St. Louis.

17. CDFI Fund – List of designated Opportunity Zones
IRS – Frequently Asked Questions

18. Program Description/Formal Guidance News and Updates Analysis Maps
FHFA went through full rulemaking process in Then went through a second rulemaking process in Finalized the end of GSE’s plans approved the end of 2017 and implementation began 1/1/18.

19. Program Description/Formal Guidance:
IRS:
Mention a couple of the FAQs on IRS’ website
Possibly mention EIGs description of the investor benefit
CDFI Fund:

20. News and Updates: Economic Innovation Group Novogradac:
EIG – news aggregator for all things Opp Zone
Novogradac:

21. Analysis
Urban Institute:
Council on Development Finance Agencies

22. Maps

23. Maps

24. cdfifund. gov/Pages/Opportunity-Zones. aspx https://eig
irs.gov/newsroom/opportunity-zones-frequently-asked-questions
novoco.com/resource-centers/opportunity-zones-resource-center
enterprisecommunity.org/financing-and-development/opportunity-zones-program 
cdfa.net/CDA/cdfaweb.nsf/resource centers/OZ.html
urban.org/policy-centers/metropolitan-housing-and-communities-policy-center/projects/opportunity-zones 
stlouisfed.org/community-development/data-tools/opportunity-zones-explorer

25. Mike Eggleston Federal Reserve Bank of St. Louis Michael. C
Mike Eggleston Federal Reserve Bank of St. Louis
Reference table 1 and table 2 from DTS brief.
Activities include: Loan product development, loan purchase, direct investment and outreach/research