Land of opportunity
Designation could “make downtown Edmond boom.”
EDMOND — Developers and longterm investors are preparing to pump investments into the federal Opportunity Zone that some equate to a modern-day land run in downtown. This all comes at a time when the city has seen historic levels of investment, and now downtown could become the center of investment. “It has the potential to make downtown Edmond boom,” said developer Matthew Myers, who has planned projects in and outside the zone. He and other investors are working together to acquire land downtown for multifamily living, which he said will allow him to take advantage of the opportunity and pump millions into the downtown core. "The boom for Downtown Edmond's designation as a Federal Opportunity Zone is comparable to a land run,” said Jill Castilla, president and CEO of Citizens Bank of Edmond. The OpportunityZone allows investors to take their capital gains and reinvest it in specified census tracts with the possibility of lower or no capital gains taxes. “Capital is streaming nationally to these zones — acquiring land and investing in businesses in Edmond's core is at a historic and rapidly increasing high," Castilla said. In Edmond, the zone is north of 2nd Street from the railroad tracks to Bryant Avenue. The northern boundary stops at Edwards Street near the railroad tracks but jumps up to Ayers Street then follows University Drive and on to Bryant. The downtown opportunity zone is the only one in the city of Edmond. The Guthrie-Edmond Regional Airport falls within one, however no plans have been announced. While not every new development in downtown is using the opportunity, others are still pushing forward on projects, including the Edmond Railyard, Sunnyside and the new Rail Spur District. The Edmond Railyard, which will include several small restaurants, a craft wine and cocktail bar along with a few offices, is planned to open during the middle of this year, said Casey Massegee, principal with the Grant Group. Crews are framing the inside of the building and working on an outdoor covered patio at 23 W. 1st Street. Massegee hopes the area will begin to develop this year as he looks to possible multifamily units in the location of the former Dolese concrete plant. Work on the Sunnyside diner continues with plans to open this spring on the corner of 2nd Street and Broadway. “This could be a huge year for downtown Edmond,” said Janet Yowell, Edmond Economic Development Authority executive director. “We have so much going on already." For Myers and Castilla, their advice to anybody looking into pursuing
investment in the Opportunity Zone is to seek good legal counsel.
“You have to dot your i’s and cross your t’s with this one,” Myers said.
Benefits for investors include the ability to defer capital gains taxes until the end of 2026, along with reducing tax payments by up to 15 percent.
“It is designed to create investment in economically depressed areas,” Myers said. “It is great for investors and the community.”
For many, the best investment is to hold on for more than 10 years, which would allow the person to pay zero taxes on profits from new investments.
There are no tax credits and no public sector financing is involved; instead, it is a tax break, according to the Economic Innovation Group.