A new program added to the tax code by the Tax Cuts and Jobs Act of 2017 provides Rochester, Minnesota with new economic development opportunities.
An “Opportunity Zone” is an economically-distressed community where under certain conditions new investments may be eligible for preferential tax treatment. Areas qualify as Opportunity Zones if they have been nominated for that designation by the state and that nomination has been certified by the Secretary of the U.S. Treasury through his delegation authority to the Internal Revenue Service.
Minnesota Governor Mark Dayton identified the Minnesota Opportunity Zones approved by the federal government. Two of those are in Rochester. A portion of the Opportunity Zones overlaps within the Destination Medical Center (DMC) district in downtown Rochester.
“Opportunity Zones are another arrow in our quiver to attract new investment to Rochester,” notes Patrick Seeb, DMC Economic Development Agency director of economic development and placemaking. “These zones will help spur economic development and job creation within distressed areas.”
Curious about Rochester’s Opportunity Zones? The DMC Economic Development Agency, the City of Rochester, and Rochester Area Economic Development, Inc. (RAEDI) have developed an Opportunity Zones fact sheet and map.
To learn more about the Opportunity Zones in Minnesota, visit the IRS website or the Minnesota Department of Employment and Economic Development (DEED).
One thought on “Opportunity Zones add to Rochester’s economic development toolbox”
Mayo executives will eventually come to the realization that expansion upwards only exacerbates the problem of congestion. Additionally, they will not be successful in their attempt to change the paradigm of the consumer – people want to drive their cars because they enjoy the freedom associated with car ownership. The all-too-obvious remedy is to expand the clinic holdings beyond the downtown area and likely beyond the current boundaries of the city limits. Anything other than lateral expansion will necessarily limit the desirability of employment with the clinic and the businesses that support the functionality of any city, as well as small business startups. Whether they arrive at this conclusion now or at some point in the future will determine when Rochester can stop acting like an overgrown small town in the middle of a corn field and start functioning like the city it needs to be.
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