HomeMy WebLinkAboutR-2026-078 support designation of WA State Opportunity Zones 2.0RESOLUTION NO. R-2026-078
A RESOLUTION supporting the nomination of three census tracts within the City of Yakima
for designation under Washington State's Opportunity Zones 2.0 Program.
WHEREAS, the federal Opportunity Zones 2.0 Program provides long-term investment
incentives designed to attract private capital to economically distressed communities; and
WHEREAS, the City Council is committed to economic growth as a top priority; and
WHEREAS, the State of Washington is authorized to nominate eligible low-income
census tracts for Opportunity Zone 2.0 designation beginning in 2026, with final
designations to take effect January 1, 2027; and
WHEREAS, the Washington State Department of Commerce evaluates proposed
census tracts using a three-part test that considers:
1. Community Need, including indicators such as poverty, unemployment, income
levels, and historic underinvestment;
2. Market and Investment Readiness, including demonstrated redevelopment
activity, infrastructure commitments, and the ability to support private investment;
and
3. Policy Alignment, including consistency with adopted local plans, economic
development priorities, and community goals; and
WHEREAS, the City of Yakima has identified three census tracts that meet the State's
eligibility criteria and demonstrate strong alignment with local and regional development priorities:
• Mill Site (Census Tract: 53077000200) — an area of significant redevelopment potential
on formerly industrial land, supported by infrastructure investment and planned economic
activity;
• Downtown Yakima (Census Tract: 53077000100) — the city's commercial, civic, and
cultural center, where continued revitalization efforts will benefit from long-term investment
incentives;
• 18th Street & Nob Hill (Census Tract: 53077001503) — a mixed commercial and
residential area positioned for infill development, small-business investment, and corridor
improvements; and
WHEREAS, designation of these census tracts as Opportunity Zones 2.0 would
strengthen the City's ability to attract private investment, support housing and commercial
redevelopment, expand job opportunities, and promote equitable community growth; now,
therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
Section 1. The City Council supports and endorses the nomination of the Mill Site,
Downtown Yakima, and 18th & Nob Hill census tracts for Opportunity Zone 2.0 designation
by the State of Washington.
Section 2. The City Manager or designee is authorized to submit required
documentation, letters of support, and related materials to the Washington State Department of
Commerce in accordance with state guidelines
ADOPTED BY THE CITY COUNCIL this 19th day of May, 2026.
ATTEST:
osalinda Ibarra, CMC, City Cle
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ITEM TITLE:
SUBMITTED BY:
SUMMARY EXPLANATION:
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 9.A.
For Meeting of: May 19, 2026
Resolution supporting the designation of Opportunity Zones
Gary Bellew, Assistant City Manager
The resolution supports the nomination of three census tracts for Washington State's Opportunity Zones
2.0 designation. The tracts are roughly described as the Mill Site, Downtown Yakima, and East Nob Hill
at 18th. These tracts will be submitted to Governor Ferguson before the May 28, 2026 deadline for
potential inclusion in the state's set of opportunity zones effective January 1, 2027. The City will work
with the Yakima County Development. Authority on the application form (attached).
Each proposed tract was assessed using Washington's OZ 2.0 three-part test, drawn from the
Department of Commerce scoring framework.
1. Community Need Test
• Each tract demonstrates economic distress via low median family income and elevated poverty
rates, plus elevated unemployment —indicating high need for capital injection.
2. Market/lnvestment Readiness Test
• These zones have demonstrated existing or planned development projects, showing capacity to
deploy private capital within the OZ policy timeline.
3. Policy Alignment Test
• They align with local and regional planning goals —such as urban infill, corridor safety
enhancements, and downtown revitalization —and benefit from supportive municipal policy and
infrastructure improvements
Proposed Zones
• Mill Site: Captures ongoing redevelopment and investment potential in historically industrial lands.
• Downtown Yakima: Supports revitalization initiatives in the city's commercial and cultural core.
• 18th & Nob Hill: Aligns with planned public improvements and private infill developments around
safety and accessibility projects.
By approving the resolution, Council formally endorses the nomination of these three tracts as they meet
Washington's scoring criteria. It potentially positions the City to unlock OZ 2.0 benefits, primarily capital
gains deferrals that support private investment in housing, small business, and infrastructure -advancing
equitable growth and neighborhood revitalization,
ITEM BUDGETED: N/A
STRATEGIC PRIORITY 24-25: A Thriving Yakima
RECOMMENDATION: Adopt Resolution.
ATTACHMENTS:
Resolution for OZ 2.0 Designation.docx
Washington State OZ 2.0 Nomination Application Template .pdf
Presentation_Opportunity_Zone_2.0
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