Opportunity zones are federally-designated parts of the city that qualify for preferential tax treatment for new investment. In Springfield, four U.S. Census Tracts in the downtown area are designated as opportunity zones. The purpose of the designation is to encourage new investment in these areas.
In these designated areas, investors may defer tax on any prior investment gains by in a Qualified Opportunity Fund. Investors may establish a Qualified Opportunity Fund as a corporation or partnership and then invest in Opportunity Zone businesses. To create a fund, investors self-certify while completing their federal income tax return. The investor isn’t required to live, work, or own a business in an Opportunity Zone.
The deferment remains in place until Dec. 31, 2026, or until the investment is sold or exchanged, whichever comes first. If the investment is held for 10 years, the investor becomes eligible for an increase in basis equal to the value of the investment when it’s sold or exchanged.
To verify if your property is within the designated opportunity zone, click here.
Census Tract 34
Census Tract 34 is in the central heart of downtown Springfield. The tract has seen $460 million of combined public and private investment in the last ten years. Funding commitments and plans continue to be developed for housing, retail, commercial, residential and recreational space
- The area hosts regional medical facilities with investments that have exceeded $386 million in public and private dollars.
- Education investments have approached $16 million, with nearly $6 million focused on workforce development opportunities.
- Recreation investments in the tract have received federal, state, local, and private investments nearing $2 million.
- Retail and public space investments comprising private dollars as well as local funding has exceeded $9 million.
- Professional office and business investments comprised of private funding and state support exceeds $32 million in received and committed dollars.
- Housing investments in the tract have been supported with private dollars, and enhanced with state and federal funds nearing $21 million.
Census Tract 2
Census Tract 2 offers robust residential reinvestment and industrial redevelopment opportunities. Nestled along the South Limestone Redevelopment Spine and anchored by the Rocking Horse Federally Qualified Health Clinic, this tract offers extensive commercial development opportunities as well.
- Rocking Horse has seen significant federal, local, and private investment in the last decade, including FQHC support as well as capital construction funds nearing $6 million.
- Located immediately south of Springfield’s downtown core and its arts and culture district.
- The South Fountain Historic Preservation district is located in the tract and provides a bounty of mixed income investment and opportunity along the historic streets anchored by Fountain Avenue.
- Urban FastForward, a planning and architectural firm, was placed under contract by the City to carry forth an engaged neighborhood planning process that focuses on the Greater South Fountain Neighborhood. In the second quarter of 2019, the firm held discussions and listening sessions with over 200 interested parties and residents of the greater neighborhood. The engaged neighborhood plan is anticipated to be delivered in its final form during the fourth quarter of the year.
Census Tract 9.01
Census Tract 9.01 is prime for commercial redevelopment and retail infill. Home to the Chiller Family Ice Arena, this area is poised for new opportunities for public and private investment at the former Crowell Collier Publishing site and beyond.
- Private and local investment in the area has exceeded $15 million with the redevelopment and construction of recreational and retail facilities.
- Nearly $1 million in federal funding was committed to environmental site assessment, along with an excess of $1 million of federal remedial action funds invested.
- The area is prime for commercial redevelopment as well as commercial and retail infill, as it borders the Springfield Regional Medical Center, the Ohio Valley Surgical Hospital, and other significant downtown office, retail, and commercial investments found in census tract 34.
Census Tract 3
Census Tract 3 is home to the Career ConnectEd Center at The Dome, along with the Global Impact STEM Academy and a state-of-the-art Makers Space.
- More than $23 million in state and private funding has been invested in the area.
- To the east of the Dome is new residential investment, with both single family and multifamily developments that have received over $3 million in federal and private funding.
- The area has seen funding from the state’s Straight A grant program, state capital funds, federal Neighborhood Stabilization Funds, HOME funds, and Community Housing Development Organization Investment.