Washington DC Emerging Corridors + Opportunity Zones
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EMERGING CORRIDORS + OPPORTUNITY ZONES 2020 EDITION In Public-Private Partnership with IMAGE COURTESY OF REDBRICK COURTESY IMAGE The Washington DC Economic Partnership would like to acknowledge our public and private sector board members whose continued financial support and guidance has made the 2020 Emerging Corridors + Opportunity Zones publication possible. PUBLIC SECTOR PARTNERS OFFICE OF THE CHIEF TECHNOLOGY OFFICER PRIVATE SECTOR PARTNERS BOARD MEMBERS EXECUTIVE COMMITTEE Raj Aggarwal Jennifer Eugene Chase W. Rynd Board Chairman, Think Local First Manager, Engineered Sales, Executive Director, John Falcicchio / Co-Chair Anitra Androh Washington Gas National Building Museum Interim Deputy Mayor, Partner, Nelson Mullins Riley & Scarborough Angie Gates Tara Scanlon Office of the Deputy Mayor for Director, OCTFME Partner, Holland & Knight Planning and Economic Development Joseph Askew Vice President, Government Relations, Emmauel Irono Shawn Seaman Richard Lake / Co-Chair Verizon Founder & CEO, Motir Services President, Hoffman & Associates Managing Principal, Steven Boyle Stan Jackson Annie Senatore Roadside Development Managing Director, President & CEO, AEDC CEO and Lead Event Designer, Donna Cooper / Co-Chair Elect EDENS Caroline Kenney Design Foundry Region President, Pepco Jean-Luc Brami Managing Director of Joseph Torraca Vice President, Gelberg Signs Public/Private Development, Vice President of Business Development, Omar McIntosh / Vice Chair Urban Atlantic RCN Senior Vice President, Ernest Chrappah Smoot Construction Director, DCRA Susan Lacz Andrew Trueblood Brunson Cooper Principal & CEO, Director, DC Office of Planning Kenneth Brewer / Secretary Corenic Construction Group, Ridgewells Catering Executive Director, H Street CDC Donna Rattley Washington Corenic Construction Lisa Mallory Regional Vice President of Timothy F. Veith / Treasurer Anita Butani D’Souza CEO, DCBIA Government Affairs, Comcast President, United Bank Division Head, HGRM Corporation Thomas A. Nida Mitch Weintraub Olivia Byrne / General Counsel Colette Dafoe Executive Vice President/Market Executive, Partner, Cordia Partners Partner, K&L Gates Office Managing Partner, City First Bank Kristi Whitfield Nixon Peabody Kristina Noell Director, DSLBD Keith J. Sellars / President Executive Director, President & CEO, Timothy Duggan Hope Wilson Anacostia Business Improvement District Washington DC Economic Partnership Senior Vice President and Commercial Director of Pre-development Services, Regional Group Manager, TD Bank Gregory O'Dell BKV Group Sybongile Cook / President & CEO, Events DC DMPED Representative Daniel Duke Donna Woodall Prinicipal Mid-Atlantic Region, Director of Citizenship & Public Affairs, Director of Business Lindsey Parker Bohler Chief Technology Officer, Microsoft Development & Strategy, OCTO Office of the Deputy Mayor for Josh Etter Karima Woods Planning and Economic Development Director, Development, William Rich Acting Commissioner, DISB Foulger Pratt President, Delta Associates WASHINGTON, DC EMERGING CORRIDORS + OPPORTUNITY ZONES The District of Columbia’s residential population was 798,300, a 0.7% increase from 2018 as the is now more than 705,0001, a 17% increase since private sector added approximately 5,800 jobs and 2010, and projected to reach approximately the public sector added approximately 100 jobs. 990,000 by 2045.2 While population growth has slowed over the past few years, DC is still growing at a faster rate than the metro area EMPLOYMENT GROWTH and U.S. Contributing to this growth has been 3.0% the construction of more than 44,000 new 2.0% residential units (88% rental) from 2010–2019.3 Furthermore, overall development during 1.0% this time period has resulted in more than 99 0.0% 4 million square feet of new development . -1.0% -2.0% POPULATION GROWTH 2013 2014 2015 2016 2017 2018 2019 DC TOTAL PRIVATE DC TOTAL GOVERNMENT 2.5% DC TOTAL DC METRO TOTAL U.S. TOTAL 2.0% Additionally, growing demand for housing and 1.5% employment has caused new development and business growth to expand further into DC’s 1.0% northeast and southeast neighborhoods. With 0.5% many of these emerging areas and commercial corridors now designated as Opportunity 0.0% Zones, there will be additional investment 2013 2014 2015 2016 2017 2018 2019 and capital available to local businesses and DC DC METRO U.S. new opportunities for investment in DC. Source: U.S. Census Bureau, Population Division Job growth is needed to meet the demand of a OPPORTUNITY ZONES growing population in DC. The private sector is driving much of DC’s job growth with a 20.4% Opportunity Zones (OZ) are a new federal increase in employment in the private sector from program that was added to the Tax Cuts 2010 to 2019 compared to 17.3% for the metro and Jobs Act in December 2017 to spur area.5 In 2019, DC’s annual average employment long term private sector investments in low 1. U.S. Census (population as of July 1, 2019); 2. Council of Governments, Summary of Intermediate Population Forecasts (October 10, 2018); 3. Washington DC Economic Partnership (projects with 10+ units and includes major renovations); 4. Washington DC Economic Partnership (includes major renovations); 5. Bureau of Labor Statistics, not seasonally adjusted (accessed on 3/16/20) EMERGING NEIGHBORHOODS + OPPORTUNITY ZONES • 2020 EDITION 1 OPPORTUNITY ZONES income communities throughout the U.S. The program hopes to bring neighborhood-serving ABOUT EMERGING CORRIDORS + retail, jobs, and affordable and workforce OPPORTUNITY ZONES housing to underserved communities. The Washington DC Economic Partnership The program provides tax incentives for (WDCEP) first published the Emerging investments in new businesses and commercial Corridors publication in 2016 as part of its projects in designated Census Tracts. Investors efforts to highlight potential investment can defer tax on capital gains invested in a & new business opportunities along DC’s Qualified Opportunity Fund (QOF), which must commercial corridors in underserved markets. invest in real estate or a business entity in an This year’s publication includes updates to Opportunity Zone. Other benefits include 10% the opportunities in DC’s Opportunity Zones. and 15% increases in basis at the five- and seven- year marks, respectively, and no taxes on the QOF This publication provides an overview of each gains if investments are held at least 10 years. corridor, a detailed assessment of potential sites for developers and business owners, The 25 Opportunity Zones located in DC occupy and current investment in the area. The list approximately 18.4% of DC’s 68.3 square miles and of sites is not meant to be comprehensive contain approximately 13% of the total population.6 but rather a reference for key opportunities. Additionally, as illustrated by the below graph, Please note that these potential sites were the development currently planned within DC’s identified by WDCEP using public data Opportunity Zones includes a variety of uses. sources and may not be available for lease or purchase (land owners were not contacted). DC’S DEVELOPMENT PIPELINE Although every attempt was made to ensure IN OPPORTUNITY ZONES (MILLIONS OF SF) the quality of the information contained in 20 18.5 this document, WDCEP makes no warranty or guarantee as to its accuracy, completeness, or usefulness for any given purpose. All 15 highlighted sites are estimates and may 10.9 not reflect the actual property boundaries. 10 Ownership & land info was extracted from opendata.dc.gov and development project status is as of December 2019. 5 1.8 To search for available space in DC or 1.2 0.8 potential investment projects in Opportunity 0 Residential O ce Retail Education Hotel Zones please visit search.wdcep.com. & Medical Source: Washington DC Economic Partnership (12/2019) For more information please contact Derek Ford, SVP of Emerging Neighborhoods For detailed information on select major ([email protected]), Chad Shuskey, SVP development projects in Opportunity Zones, please ([email protected]), or Mitchell go to page 6. More information on DC’s Opportunity Batchelder, Research Analyst Zones can be found by visiting oppzones.dc.gov. ([email protected]). 6. Esri, 2019 2 © 2020 WASHINGTON DC ECONOMIC PARTNERSHIP SELECT RESOURCES + INCENTIVES DISTRICT OF COLUMBIA NEW MARKET TAX CREDITS REAL ESTATE + BUSINESS RESOURCES The New Markets Tax Credit Program (NMTC) By pairing the Opportunity Zone incentive with is a federal tax credit that incentivizes investment the following complementary DC real estate and in economically distressed communities. NMTC business resources, the District hopes to assist investors provide capital to community development investment that supports the following priorities: entities (CDEs), a local financial organization accredited by the Community Development Financial • Produce new amenities and community Institution (CDFI Fund), and in exchange are awarded serving retail such as fresh food grocery credits against their federal tax obligations. A CDE applies for tax credits through the CDFI Fund and • Produce more affordable housing then distributes funds to qualifying projects. • Improve access to capital and growth opportunities for local DC businesses CONTACT (202) 653-0421 • cdfifund.gov • Provide jobs and training opportunities to DC residents HOUSING PRODUCTION TRUST FUND DC BUSINESS INCENTIVE NAVIGATOR The Housing Production Trust Fund (HPTF) is a special revenue fund that provides gap financing for Incentives.dc.gov is a comprehensive, projects that are