The designation of Opportunity Zones is designed to help spur development. Surprise’s Opportunity Zone is strategically located in the city’s Original Town Site – a neighborhood rich in history and culture.
What is an Opportunity Zone?
The Opportunity Zone program was created through the Investing in Opportunity Act, which was nested into the Tax Cuts and Jobs Act. The designation of Opportunity Zones is designed to help spur development of identified communities. In exchange for investing in Opportunity Zones, investors can access capital gains tax incentives available exclusively through the Opportunity Zone program. To access these tax benefits, investors must invest in Opportunity Zones specifically through Opportunity Funds. A qualified Opportunity Fund is a US partnership or corporation that intends to invest at least 90% of its holdings in one or more qualified Opportunity Zones.
- Arizona Commerce Authority - Arizona Opportunity Zones
- Department of the Treasury CDFI - Opportunity Zones Resources
- Economic Innovation Group - Opportunity Zones
- IRS - Opportunity Zones Frequently Asked Questions
- How Property Owners Can Take Advantage of the OZ Program With Real Estate They Already Own in an OZ
The Opportunity in Surprise
Surprise’s Opportunity Zone (608.1) is strategically located in the Original Town Site. The neighborhood is a critical asset in the city, rich in history and culture. In 2016, city staff engaged with the residents to create what is now the Heritage District Overlay. You can expect new development to stay true to the original feel with design requirements to reflect 1950’s midcentury modern architecture. The residents also told us what they need and want to see: a Mercado along Grand Avenue, specialty grocery stores, after school activities and safe, walkable beautiful public space.
Another great resource to keep in mind when considering investments in the Original Town Site or OZ 608.1 is the Infill Incentive District. This financial incentive is provided to promote both residential and commercial development that will aid in the revitalization of the Original Town Site. If the property qualifies, the available incentive and procedure to obtain it will be determined by the type of project: residential or commercial.
- New residential development on parcels zoned either SHD-RO or SHD-CO shall receive a 100% waiver of the City of Surprise Development Impact Fees
- New, expanding qualifying commercial development may request a 100% waiver of Building Plan Review, Building Permit, and City of Surprise Development Impact Fees at the approval of City Council