OPPORTUNITY ZONES

According to the U.S. Department of the Treasury and DDEC, Puerto Rico was given preferential treatment with respect to designating census tracts as QOZs. This preferential treatment resulted in all low-income census tracts in Puerto Rico being designated as QOZs. Because Puerto Rico has a poverty rate of 43.1%,  approximately 98% of Puerto Rico’s landmass is a QOZ. A similar proportion of SPREDD’s landmass is also designated as an QOZ, as only a single census tract (72113073008) in Ponce is NOT a QOZ. In essence, CEDS for the region and the QOZ are in lockstep.

 Comparatively, only 25% of the census tracts in a state can be designated as QOZs.

With respect to the regional perspective, Puerto Rico became one the first jurisdictions of the United States to enact legislation to complement QOZs. The Government of Puerto Rico approved Act 21-2019, known as “2019 Puerto Rico’s Opportunity Zones and Economic Development Act (Act 21).” The purpose of Act 21 was to “transform the Island into an idyllic jurisdiction for investments.” Later, Act 21 was incorporated into Act 60-2019, known as Puerto Rico’s Incentive Code.

Because of the preferential treatment provided to Puerto Rico, as well as the additional benefits provided under the Puerto Rico Incentive Code, DDEC has dedicated considerable resources to promoting QOZ development and investing. SPREDD has worked extensively with DDEC in the development of the CEDS and will work closely with DDEC to advance QOZ investing and development.

The primary public interface for SPREDD is www.eddpr.org. This site will provide considerable information about the QOZs in the region and the benefits afforded. SPREDD is also committed to working with private developers seeking to take advantage of the benefits provided by QOZs, especially when the plans advance initiatives in whole or in part. Adding cold storage capacity at Mercedita International Airport in Ponce would be an example. 

• Identify key partners/collaborations
• Who are local/regional stakeholders? Are there any public/private/nonprofit organizations actively involved in the planning and implementation of community and economic development?

• Are there any local or regional advocates for opportunity zones?

• Are there any regional consortiums that were established specifically to leverage opportunity zones?

• Are there any local or regional incentives available for investing in opportunity zones?

• How are opportunity zones working to maximize economic benefits for people in low-income communities?

• Recognize linkages with the data, goals/objectives, and priority projects within the CEDS

• What does regional data show about these communities?
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• What are the socio-economic trends within the opportunity zones in your region? Include information about population, higher education enrollment, workforce, and major employers within the regional opportunity zones.

• Can you make any linkages between the opportunity zones and the SWOT analysis within your CEDS? If not, consider adding some points about opportunity zones in your SWOT analysis.

• Are there any specific priority projects that may address asset gaps in each of the Opportunity Zone communities?

Regions may also wish to develop a Regional Investment Prospectus. This section can be used to describe & communicate regional competitive advantages, community partnerships, and projects that are ready for private and public investment. Intended for regions that want to put a high-profile emphasis on their Opportunity Zones and the potential associated benefits, the regional investment prospectus can specifically help:

• market their Opportunity Zones to local, regional, and national investors

• highlight their regional assets to have maximum economic impact

• coordinate stakeholders around a common vision of inclusive growth

• Additional Information to include for the regional investment prospectus:

• Purpose of the prospectus/intro to opportunity zones

• Key partners/collaborations

• About the region by the numbers

• Market Strengths

• Institutional capacity

• Opportunity Zones in the region and typology

• Individual community profiles