July 22, 2020

Assembly Natural Resources Committee California State Capitol Sacramento, California 95814

Submitted via Committee Portal

Dear Chair Friedman and Members:

We write you on behalf of CalOZ, a coalition of 2,000 local and state leaders dedicated to expanding opportunity across California, particularly in communities in need. We urge you to support Senate Bill 25 to support efforts Senator Caballero’s work to promote inclusive economic security and mobility in her district via the Opportunity Zone incentive.

As you know, the Opportunity Zone incentive is a bipartisan idea that garnered nearly 100 Democratic and Republican co-sponsors in Congress interested in attracting new investment into struggling urban, suburban and rural communities around the country. California has identified 879 census tracts as Qualified Opportunity Zones (QOZs), representing 4.2 million individuals, or 10.7% of the state population.

The State is at a pivotal and fleeting moment to shape the incentive toward maximum economic and community benefit. In May 2019, mayors from California’s thirteen largest cities representing over ten million California residents united in support of a three-part framework for state Opportunity Zone policy. Over 120 members of our coalition wrote a subsequent letter urging state action to support the OZ incentive.

As you know, Senate Bill 25 is a district bill that provides common sense solutions that will expand incentives and reduce barriers to precisely the kind of economic development that is desperately needed in the chronically underinvested communities in the Central Valley and across the state.

As many have noted, the needless cost, complexity, and delays created by onerous public approval processes do incalculable damage to low-income communities. This is especially true in more rural areas that face significant challenges attracting sustained private investment. SB 25 will provide real incentives to developers to accelerate progress on housing and community development projects in a manner that ensures living wages, high environmental building standards, and tough investment reporting requirements to ensure public transparency and accountability.

Long before the pandemic, low-income California communities were reeling from decades of underinvestment and overregulation. COVID-19 has only made the situation more dire. This is a moment for courage, creativity, and impact. Senator Caballero’s bill reflects precisely that spirit.

Thank you for your consideration.

Sincerely,

Kunal Merchant Dave Smith President and Co-Founder Co-Founder CalOZ CalOZ cc: Senator Anna M. Caballero Kirstin Kolpitcke, Assembly Republican Consultant [email protected] Assembly member Heath Flora Assembly member Assembly member Susan Talamantes Eggman Assembly member Cristina Garcia Assembly member Monique Limon Assembly member Devon J. Mathis Assembly member Kevin McCarty Assembly member Assembly member