Presentation to City Council followed by discussion and possible direction to staff on any and all matters regarding the nominations for Opportunity Zones for the City of San Luis.  (Armando Esparza, Director of Economic Development and Government Affairs)

On April 1 and April 2, 2026, staff attended the Arizona Development Finance & Opportunity Zones Summit, where guidance was provided regarding the upcoming Opportunity Zone designation process. Following the summit, staff is seeking Council direction to recommend Census Tracts 04027011403 and 04027011601 to Yuma County and the Arizona Commerce Authority (ACA) for Opportunity Zone designation. Opportunity Zones are a federal economic development tool established in 2017 that incentivizes private investment in low-income and distressed communities through capital gains tax benefits. The State, through the Governor’s Office and ACA, will nominate a limited number of eligible census tracts based on local recommendations, development readiness, and the potential to attract near-term private investment.

Staff evaluated eligible tracts within San Luis and identified these two tracts as the strongest candidates based on qualifying economic conditions, proximity to infrastructure, and alignment with current and planned development activity, including infrastructure investments, healthcare expansion, and commercial development opportunities. Designation would enhance the City’s ability to attract private capital and support new development projects. Additionally, Opportunity Zone designation can be leveraged alongside other financing tools, such as New Markets Tax Credits and Federal Historic Preservation Tax Incentives.

Staff is seeking Council direction to proceed with submitting the recommended Census Tracts 04027011403 and 04027011601 as part of the County-led process, with final nominations to be submitted to the U.S. Treasury later this year.