Rio Dell is joining Arcata and Fortuna in asking California to carry three Humboldt County census tracts forward for possible designation under the federal Opportunity Zone 2.0 program.
The Rio Dell City Council voted 4-0 on Aug. 18 to authorize Mayor Debra L. Garnes to sign a joint letter supporting the California Department of Finance’s draft recommendation. Council Member Orr was absent.
City Manager Kyle Knopp told the council that the draft recommendation includes one census tract each in Rio Dell, Fortuna and Arcata. The joint letter asks that all three be included in California’s final nomination to the U.S. Department of the Treasury, according to the Aug. 18 meeting minutes. Public comment on the state’s draft recommendation was scheduled to close Aug. 28.
Opportunity Zone 2.0 allows states to nominate qualifying low-income census tracts for designation. Designated areas can become eligible for preferential federal tax treatment tied to long-term private investment, the minutes state. Mayor Garnes said the program is intended to provide investors an incentive to reinvest capital gains in designated tracts in exchange for tax benefits.
The vote does not secure a designation for Rio Dell or the other cities. The state’s final nomination, the precise eligibility data for the Rio Dell tract and any potential local investment or tax benefit remain unresolved.
