New federal law creates 'Opportunity Zones' in South Cape for investment

A new law will provide added incentives for investment in high-poverty areas, including parts of Cape Girardeau, according to federal, state and local officials.

Missouri Gov. Eric Greitens and U.S. Sen. Roy Blunt have announced the locations of 161 "Opportunity Zones" in the state.

The zones were determined by the Missouri Department of Economic Development (DED) and made possible by the federal Tax Cuts and Jobs Act of 2017, the governor's office said in a news release.

Greitens said there is now "a new tool to bring businesses back to the areas that need it most."

He added, "The communities that need quality jobs -- areas with a lot of poverty and not a lot of opportunity -- will get a leg up as they compete for jobs."

Blunt said, "The Opportunity Zones program is another example of how tax reform is directly benefiting Missourians and turning the page on years of slow growth and stagnant wages."

The Opportunity Zones program provides investors with a U.S. Treasury certified capital-gains tax deferral based on their investment, according to the news release.

Under the law, each state could nominate up to 25 percent of census tracks that meet the eligibility requirements,

Local governments including the city of Cape Girardeau nominated areas for inclusion in the program by sending written proposals to the DED.

Alex McElroy, Cape Girardeau's development services director, said two areas in the south part of the city have been named as Opportunity Zones. They are contiguous to each other.

McElroy said the two zones combined cover the area south of William Street and east of Kingshighway.

A third-party organization would be created to administer the program locally, he said.

McElroy said a developer could receive the financial incentive for a maximum of 10 years.

Both the city and the Cape Girardeau Chamber of Commerce would work with developers seeking the financial incentive.

While it is not a city program, McElroy said that the local government "would help facilitate it."

mbliss@semissourian.com

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