Dallas to receive grant of nearly $1M to drive responsible development in Opportunity Zones

WASHINGTON, D.C. – On behalf of the City of Dallas, Mayor Eric Johnson on Friday accepted a $920,000 grant intended to drive responsible development in Opportunity Zones.

The Opportunity Zones (OZ) program was authorized by the Tax Cut and Jobs Act of 2017. The program aims to drive capital to support new businesses and investments in targeted Census tracts by providing investors with tax benefits, including a deferral of capital gains taxes. Dallas is home to 15 OZ Census tracts – including Hensley Field, the Cedars, West Dallas, the Oak Cliff Gateway, and the Lancaster Corridor — with a population of about 76,000 residents in these areas.

Dallas was one of four U.S. cities added Friday to the Rockefeller Foundation’s Opportunity Zone Community Capacity Building Initiative. Washington, D.C., Oakland and St. Louis are the other cities to receive the grants. The foundation previously announced Atlanta and Newark, N.J., as grant recipients.

“It was an honor to accept this very generous grant on behalf of our great city today,” Mayor Johnson said.

The two-year grant will provide the City of Dallas with funding for a Chief Opportunity Zones officer, two community engagement specialists and technical assistance from a national Opportunity Zone Technical Assistance team.

The Chief Opportunity Zones officer will work across city departments and at the community level to engage and inform residents about Opportunity Zones and how they can get involved as potential partners, project sponsors or investors.

Investment in federally designated Opportunity Zones does not require City approval. However, with the foundation’s support, the City of Dallas will execute several tactics to help to mitigate the negative effects of development-caused displacement, commonly referred to as gentrification.

Among the strategies is identifying building regulations and land-use policies that may serve as barriers to the production of affordable housing within Opportunity Zones. Increasing employment opportunities, supporting small businesses and addressing skills development for in-demand careers are important components of the City’s effort to address affordable housing needs.

“I’m very excited about the prospect of Dallas partnering with the Rockefeller Foundation to ensure that Opportunity Zones in our city benefit not only investors, but also those in our community who have not sufficiently shared in the economic boom our city has experienced,” Mayor Johnson said.

“The Opportunity Zone initiative will serve the residents of Dallas well, complementing our neighborhood vitality programs to ensure local involvement and informing investments with community wisdom,” said Michael Mendoza, Chief of Economic Development and Neighborhood Services.

A resolution to officially accept the Foundation’s grant is on course for the Dallas City Council’s September 18 agenda.