Investor-zone forum focuses on needs of area

While there are few regulations restricting what investors who receive special tax treatment can do in federally created opportunity zones, officials hope a community-focused approach will ensure any new development benefits neighborhoods.

The initiative, part of the federal Tax Cuts and Jobs Act of 2017, allows investors to defer capital-gains taxes on new investments in designated census tracts. The opportunity zone program has been branded as a way to encourage cash flow in economically depressed areas.

Little Rock has four opportunity zones, in the 12th Street and University Avenue area; the Dunbar area; the Main and downtown area; and the eastern part of the city. Last year, Mayor Frank Scott Jr. formed a task force of developers, bankers and civil leaders to work on attracting investors.

As part of its work, the group kicked off the first of four community meetings on Thursday. It plans to hold one in each opportunity zone this month to gather input from residents for when it makes recommendations to the city board in March.

“I think what’s most important is to engage the community so they’re a part of any and all processes as far as the opportunity zones are concerned,” task force member Angel Burt said. “I hope this is going to give people an opportunity to see the wonderful assets that we have in our community.”

At Thursday’s meeting at the Hillary Rodham Clinton Children’s Library on West 10th Street, task force co-chairman Martie North asked residents what new developments they wanted to see in their neighborhood. North is director of community development at Simmons Bank.

Some answers from the about 20 people who participated echoed what many have said for years is missing in the area, such as a grocery store.

“In this area, we’ve known for a long time it is a food desert. A grocery store is top of the list,” said Javonne Jordan, an investor who attended the meeting.

But not all community needs align with lucrative opportunities for investors. North said the task force spoke to one provider who said that a grocery store required $7,500 a month to operate.

“That means we’re going to have to think outside the box,” North said.

Residents of the 12th Street and University Avenue area also said they wanted to have a coffee shop, a primary care provider, a pharmacy, child care options, and affordable housing that fits in with the neighborhoods, among other things.

“Don’t go in and tear down and raze everything in the neighborhoods. That’s a nonstarter,” said Barrett Allen, director of the University District Partnership.

New investment also can raise fears of displacement and gentrification. One such example would be new housing that neighborhood residents can’t afford.

Task force co-chairman Leslie Lane said that since the opportunity zone initiative is a piece of federal tax code, it’s up to cities to create or enforce zoning rules or offer other incentives to encourage the type of development they want.

The next three community meetings are set for 6 p.m. on each remaining Thursday in February. The sites are:

• Feb. 13: Dunbar Community Center, 1001 W. 16th St.

• Feb. 20: East Little Rock Community Center, 2500 E. Sixth St.

• Feb. 27: MacArthur Museum of Arkansas Military History, 503 E. Ninth St.