CITY OF LAUDERDALE LAKES
Agenda Cover Page Fiscal Impact: No Contract Requirement: No Title RESOLUTION 2026-037 OF THE CITY OF LAUDERDALE LAKES, FLORIDA, STATING SUPPORT FOR THE CITY’S APPLICATION TO THE GOVERNOR OF THE STATE OF FLORIDA FOR THE REDESIGNATION OF CENSUS TRACTS 12011050301 AND 12011050308 AS OPPORTUNITY ZONE 2.0 AREAS Summary This is a resolution supporting the nomination of Census Tracts 12011050301 and 12011050308 as Opportunity Zones 2.0 areas. The Federal Opportunity Zones Program, enacted under Opportunity Zones 2.0, takes effect January 1, 2027.
Staff Recommendation Background:
Opportunity Zones (OZ) were created by the Tax Cuts and Jobs Act of 2017 (OZ-1.0) and are federally designated distressed census tracts designed to encourage investors, businesses, developers, financial institutions, and other investors to reinvest capital gains into these tracts to foster job creation. The benefit is deferral, reduction, and potential elimination of taxes on capital gains, not rebates or grants. Investors receive capital-gains tax incentives when they reinvest through Qualified Opportunity Funds (QOFs).
The One Big Beautiful Bill of 2025 made the program permanent and established Opportunity Zones 2.0 (OZ 2.0), which includes new eligibility criteria, stronger reporting requirements, and revised tax incentives.
Summary of Program:
Cities and counties' recommendations of census tracts need to be submitted to the Florida Department of Commerce by May 1, 2026. New zones 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. Hereafter, Zones will be nominated and designated every 10 years. More restrictive eligibility criteria will be applied to qualify new census tracts, including a lower median family income threshold of less than 70% and the elimination of contiguous tracts. OZ-2.0 established additional reporting for OZ funds and businesses, and a two-year overlap period (2027–2028) when both OZ-1.0 and OZ-2.0 maps will be in effect. The goal of the new legislation is to broaden investments to include more operating businesses and rural areas. Investments in rural areas will receive a 30% basis step-up after five years, compared to the standard 10% for non-rural investments.
Recommendation:
Staff recommends that the City Commission support the nomination of the census tracts 12011050301 and 12011050308.
Funding Source:
Not Applicable
Fiscal Impact:
Sponsor Name/Department: Vielka Buchanan, Economic Development Manager / Community Redevelopment Agency Meeting Date: 4/28/2026 | | |