Watch the full press conference HERE.
June 26, 2019 – Westchester County is on the verge of a potential major real estate and business boom thanks to Opportunity Zones. This federal tax program is projected to spur economic development in the County’s distressed census tracts by offering tax breaks on capital gains to investors hold assets for at least five years. There are 12 zones designated in 8 different municipalities in the County. The municipalities are Cortlandt, Mount Pleasant, Mount Vernon, New Rochelle, Peekskill, Port Chester, White Plains and Yonkers.
Westchester County Executive George Latimer said: “My Administration is focused on advancing Westchester’s economy – and to do that best we must take full advantage of all potential avenues afforded to us. The Opportunity Zone program is a perfect example of one of these avenues. We look forward to working with all stakeholders to ensure they have every chance to succeed.”
The Opportunity Zones incentive is a new community investment tool, established by Congress in the Tax Cuts and Jobs Act of 2017, to encourage long-term investments in low-income urban and rural communities nationwide. Opportunity Zones provide tax incentives for investors to re-invest their unrealized capital gains into dedicated Opportunity Funds. With such valuable benefits at stake, property values are rising as investors and developers scope out these nominated areas’ potential. Opportunity fund investments will be eligible for up to a 100% capital gains tax break for investments made by December 31, 2019.
Since the Zones were announced in 2017, the commercial real estate community has been all abuzz looking for investments in the County.
Westchester County Director of Economic Development Bridget Gibbons said: “The Opportunity Zones program is really designed to drive investment and revitalize economically distressed communities using private investment. With the County Executive’s leadership, we are meeting with Mayors, Supervisors and planning officials from Westchester’s designated zones to provide support and information on what they can actively be doing to maximize this opportunity.”
Vince Ferrandino, Principal of Ferrandino & Associates Inc., a planning consulting firm based in Elmsford, has been retained by the County to work with local municipalities to help make these new opportunities work best for them. His firm is also charged with connecting them with eager investors.
Ferrandino said: “Right now there is incredible opportunity and municipalities can really make this work for them. The tax benefits are tremendous, and so many investors are going to want to take advantage of services – while also lifting up a community in need.”
The County hosted a meeting today with stakeholders from the Opportunity Zone municipalities to provide information on how to take advantage of this program.