More about opportunity zones in Detroit

[renf]

https://www.nytimes.com/2019/02/15/b...ntroversy.html

There are many neighborhoods in Detroit and the suburbs that might benefit from large capital investments. Senators Scott and Booker have been very proud of their work to create a system of capital gains tax abatements known as opportunity zones - low income areas. I had heard that there were many investment firms ready to help those who have unrealized capital gains invest in Opportunity Zones with the expectation of paying low or no capital gains taxes.
This essay in today's paper mentions Detroit but seems to argue that Opportunity Zones will benefit investors more than the low-income residents of such zones.

[Richard]

I have not seen if it has changed but in Detroit it used to be they labeled an individual building as an opportunity zone.

For instance Packard as a singular property was at the time,a limited opportunity zone and not the entire area like the intent is.

What it did was create a situation where somebody could purchase a building and do nothing with it while enjoying the benefits,it had a lot to do with the run away speculation and further demise of neighborhood.

When used correctly they can change an entire section as a whole and draw investments.

It was learned in the past that the city core cannot survive long term without the strong supporting neighborhoods,the plus is that the powers to be in Detroit understand this and this is a good tool to utilize.


When used correctly it is a performance based incentive package.