Opportunity Zones and Impact Case Studies
The Opportunity Zone (OZ) program, initiated under the Tax Cuts and Jobs Act of 2017, was designed to drive private investment into economically distressed areas. Through tax incentives, OZs attract capital into projects that promote economic growth, create jobs, and support local infrastructure. From downtown revitalization to affordable housing, Opportunity Zone investments are transforming communities across the country.
Case Study 1:
Erie, Pennsylvania - Downtown Revitalization
Erie, Pennsylvania, is a powerful example of how Opportunity Zones can catalyze urban revitalization in communities long burdened by economic decline. Once a manufacturing hub, Erie experienced significant industrial downturns and population loss, leaving parts of the city vacant and economically stagnant. By capitalizing on Opportunity Zone (OZ) incentives, Erie began a turnaround focused on its downtown district, led by the Erie Downtown Development Corporation (EDDC).
The EDDC started with an initial $40 million investment in Opportunity Zone projects, targeting the city’s historical core. This seed funding grew into more than $115 million in private investments, propelling a range of redevelopment projects, from affordable housing units to retail spaces and small businesses that have breathed new life into once-deserted streets. The projects prioritize mixed-use spaces, allowing businesses and residential units to coexist in formerly neglected areas.
One of the EDDC’s significant achievements has been its focus on historic preservation, restoring landmark buildings to their former glory and converting them into functional, modern spaces. These restorations not only maintain Erie's architectural heritage but also create affordable, quality housing options for residents, making the city a more attractive destination for both locals and newcomers. Additionally, by filling vacant retail and commercial properties with small businesses, Erie has fostered local entrepreneurship and job creation, providing a boost to the local economy and enhancing quality of life.
The EDDC’s work in Erie has also drawn attention to the potential of public-private partnerships in Opportunity Zones, illustrating how these collaborations can attract significant private capital to economically distressed areas when aligned with clear goals and community-focused projects. Through this targeted OZ strategy, Erie has created a replicable model for other cities aiming to leverage Opportunity Zone funds for sustainable economic revitalization [NAIOP; Economic Innovation Group; U.S. Economic Development Administration].
Reference: For a detailed look at Erie’s development through OZs, see the NAIOP report on Erie’s OZ revitalization efforts NAIOP and related community profiles by the Economic Innovation Group EIG.
Case Study 2:
Washington, D.C. – MLK Gateway and the Anacostia Neighborhood
Washington, D.C.’s MLK Gateway project is a prime example of how Opportunity Zones (OZs) can stimulate both economic development and social progress within underserved communities. Situated in the historically under-resourced Anacostia neighborhood, this transformative project brings both retail and office space to an area that has long been in need of economic rejuvenation. Spearheaded by the Menkiti Group in collaboration with Enlightened, Inc., MLK Gateway serves as a cornerstone of east-of-the-river redevelopment in Washington, D.C., creating economic opportunities while addressing community needs.
The development provides affordable and accessible workspace, prioritizing minority-owned businesses, community-centered retail, and cultural authenticity. By offering support for local entrepreneurs and small businesses, MLK Gateway has established itself as a commerce hub that nurtures local talent and encourages sustainable growth within the Anacostia community. Additionally, the project has a unique anchor tenant in Enlightened, Inc., a leading tech company and the largest to move into Anacostia in recent years. Enlightened’s presence not only brings valuable tech jobs to the area but also sets a precedent for further high-skilled employment opportunities in a historically underserved neighborhood.
Beyond economic growth, MLK Gateway has fostered a sense of cultural inclusion by tailoring its retail offerings to reflect the community’s heritage and daily needs. This alignment with the local community's identity has made MLK Gateway a focal point for economic and social revitalization, creating a template for similar projects in other Opportunity Zones. With targeted support for local businesses, job creation, and community-centered development, the MLK Gateway project demonstrates how Opportunity Zones can drive impactful, inclusive growth in a way that honors and uplifts the neighborhoods they serve[NAIOP; Economic Innovation Group; U.S. Economic Development Administration].
Reference: To learn more about MLK Gateway and Anacostia’s transformation, see the Economic Innovation Group’s project profiles on OZ-funded development in Washington, D.C. EIG.
Case Study 3:
Durango, Colorado – Agile Space Industries and Local Economic Diversification
Durango, Colorado, traditionally a tourism-driven town, has effectively diversified its economy through the Opportunity Zone-funded Agile Space Industries project. Agile Space, an aerospace engineering firm, has used OZ funding to establish a high-tech footprint in Durango, creating over 200 direct and indirect jobs and significantly boosting the local economy. This project is notable for its focus on workforce development, providing specialized training and high-skill employment opportunities that go beyond seasonal tourism roles.
By prioritizing local hiring and offering skills training, Agile Space helps prepare residents for sustainable, high-paying jobs in the aerospace sector—a transformative step for a small town. The initiative shows how Opportunity Zone investments can drive lasting economic impact by building workforce resilience and economic diversity. Agile’s presence not only brings economic benefits but also signals a shift toward high-value industries in rural towns like Durango, positioning it as a future hub for aerospace innovation and skilled employment [NAIOP; Economic Innovation Group; Census.gov].
Reference: For a deeper dive into how OZs have impacted Durango’s economy, see the Economic Innovation Group’s analysis of the Agile Space project in Colorado EIG and the U.S. Economic Development Administration’s reports on regional OZ projects EDA.
Case Study 4:
Baltimore, Maryland – Affordable Housing and Community Infrastructure
In Baltimore, Opportunity Zones (OZs) have tackled the pressing need for affordable housing and revitalized communities by channeling investments into projects in neighborhoods like Port Covington and West Baltimore. These initiatives have attracted funding aimed at building affordable housing units, along with essential community infrastructure. By focusing on housing accessibility, these OZ projects provide stability for lower-income families, creating secure housing options while also encouraging neighborhood rejuvenation. The Port Covington development, for instance, incorporates mixed-use spaces that blend residential, commercial, and public amenities, which collectively improve local quality of life and promote sustainable growth.
These OZ-driven developments in Baltimore exemplify the program’s ability to support inclusive housing policies and address systemic urban housing challenges. By emphasizing affordability and community-oriented design, the projects have laid the groundwork for long-term economic and social uplift, fostering an environment where revitalized neighborhoods can thrive. This approach highlights how strategic use of Opportunity Zones can help bridge the gap between economic development and community benefit, supporting inclusive growth that resonates with local residents [NAIOP; US EPA; Economic Innovation Group].
Reference: The Environmental Protection Agency’s resources on leveraging OZs for community-centered projects provide insights into Baltimore’s developments EPA. More data on Baltimore’s OZ impact is also available through Smart Growth America Smart Growth America.
Case Study 5:
Pembroke, North Carolina – Student Housing and Rural Economic Development
Pembroke, North Carolina, a rural town anchored by the University of North Carolina at Pembroke (UNCP), has utilized Opportunity Zone (OZ) funding to alleviate a shortage of student housing and stimulate local economic development. The 698 Prospect project, a mixed-use development strategically located adjacent to UNCP, addresses housing affordability by providing modern, accessible units specifically for students. Alongside residential spaces, the development integrates retail options that not only serve the campus community but also create jobs and expand economic opportunities in Pembroke, a region with historically high poverty rates.
The 698 Prospect initiative has had a substantial impact on the local economy, contributing millions of dollars in wages and injecting new business activity into the area. This investment has enhanced Pembroke’s appeal to both students and residents, supporting local businesses and creating employment opportunities in construction, retail, and facility management. By addressing the community’s dual needs for housing and economic vitality, Pembroke’s OZ projects showcase how targeted investments can deliver both immediate economic benefits and long-term social impact, especially in rural settings where such opportunities are scarce [NAIOP; Economic Innovation Group; Census.gov; U.S. Economic Development Administration].
Reference: Learn more about Pembroke’s OZ-funded student housing project through EIG’s case studies EIG and U.S. Census Bureau reports on Opportunity Zone impacts Census.gov.
For more information on opportunity zone fund formation, fund raising, and ongoing management, please speak with one of our OZ experts today.
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