| | | | | | | | | TOWN OF DAVIE
TOWN COUNCIL AGENDA REPORT | | | |
| | | | | | | | | | To: | Mayor and Councilmembers | | From: | Phillip R. Holste, Assistant Town Administrator/CRA Director, 954-797-1041 | | Prepared By: | Phillip R. Holste, Assistant Town Administrator/CRA Director - Administration | | Subject: | Resolution | | Affected District: | Town Wide | | Item Request: | Schedule for Council Meeting | | Title of Agenda Item: | DESIGNATION OF OPPORTUNITY ZONES - A RESOLUTION OF THE TOWN OF DAVIE, FLORIDA, AUTHORIZING THE APPLICATION FOR OPPORTUNITY ZONE 2.0 DESIGNATIONS TO THE STATE OF FLORIDA THROUGH THE FLORIDACOMMERCE; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. (Item revised April 13, 2026) | | Executive Summary: | Opportunity Zones are a federal capital gains tax incentive that allow tax payers to invest into the Qualified Opportunity Funds (QOFs) for a designated census tract and receive long term tax incentives (specifically a five-year deferral, ten percent reduction, and permanent exclusions) while the funds are used to incentivize economic development activities within the census tract. Opportunity Zones were created by the Tax Cuts and Jobs Act of 2017 as a temporary economic development tool to encourage investment into economically distressed census tracts and this program was set to sunset December 31, 2026. The One Big Beautiful Bill of 2025 updated the Opportunity Zone program and made it permanent allowing Governors to designate eligible census tracts as Opportunity Zones every ten years. Therefore, Florida’s Governor will begin nominating eligible census tracts July 1, 2026, that will take into effect beginning of 2027 for a period of ten years. Currently, the High Impact Opportunity Zone Candidate Tract official map identifies four eligible tracts in the Town which are Census Tracts 701.03, 701.04, 703.24, and 705.04. Municipalities are able to apply for consideration of eligible census tracts to FloridaCommerce for recommendation to the Governor and the Town is desirous of applying for the Opportunity Zone designation. A draft application is attached for reference. | | Key Points: |
- Opportunity Zones are a federal capital gains tax incentive that allow tax payers to invest into the Qualified Opportunity Funds (QOFs) for a designated census tract and receive long term tax incentives (specifically a five-year deferral, ten percent reduction, and permanent exclusions) while the funds are used to incentivize economic development activities within the census tract.
- Opportunity Zones were created by the Tax Cuts and Jobs Act of 2017 as a temporary economic development tool to encourage investment into economically distressed census tracts and this program was set to sunset December 31, 2026.
- The One Big Beautiful Bill of 2025 updated the Opportunity Zone program and made it permanent allowing Governors to designate eligible census tracts as Opportunity Zones every ten years.
- Florida’s Governor will begin nominating eligible census tracts July 1, 2026, that will take into effect beginning of 2027 for a period of ten years.
- Currently, the High Impact Opportunity Zone Candidate Tract official map identifies four eligible tracts in the Town which are Census Tracts 701.03, 701.04, 703.24, and 705.04.
- Municipalities are able to apply for consideration of eligible census tracts to FloridaCommerce for recommendation to the Governor and the Town is desirous of applying for the Opportunity Zone designation. A draft application is attached for reference.
| | Previous Actions: | N/A | | Concurrences: | N/A |
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| | | | | | | | | | Fiscal Impact: | | | Has request been budgeted? | N/A | | If yes expected cost: | | | Account name and number: | | | If no, amount needed: | | | Account name funds will be appropriated from | | | Additional Comments | |
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| | | | | | | | | | Recommendation: | Motion to approve |
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Strategic Goals This Item Supports:
Creating an Environment that is Conducive to Innovation, Creativity, and Collaboration, Nurturing the health, safety, and welfare of the community
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