The Governor’s Office of Economic Development (GOED) has selected the Utah Association of Counties to lead the state’s Opportunity Zone planning and implementation.
The association will work with GOED in partnership with the Sorenson Impact Center and consultant Patrick Mullen to help ensure that capital from Opportunity Funds are targeted to Opportunity Zones, including those in rural and underserved communities throughout the state.{mprestriction ids="1,3"}
UAC and Sorenson’s responsibilities will be threefold: engaging and educating rural communities housing Opportunity Zones, developing marketing content and strategies for Opportunity Zone economic development, and connecting local officials and stakeholders with prospective investors.
The GOED board in October approved an economic opportunity grant of up to $200,000 from the Industrial Assistance Fund for a consultant to work with communities where zones exist. GOED will utilize UAC and Sorenson’s expertise to assist local communities in creating and packaging Opportunity Zone investments for nationwide investors. The GOED grant will be used to fund Mullen’s involvement.
The Opportunity Zone program, stemming from the federal 2017 Tax Cut and Jobs Act, is seen as a way to spur economic development and job creation in distressed communities. It is designed to encourage long-term, private-sector investments in low-income and urban communities by providing tax benefits to investors. For example, investors can defer capital gains, but not ordinary gains, on investments in a “qualified opportunity fund” until 2026.
Forty-six zones have been designated in Utah, including 19 in rural Utah. The zones were identified last year by Gov. Gary Herbert.
Utah’s zones will be competing for investments with 8,761 zones nationwide and in the District of Columbia and five U.S. territories. Treasury Secretary Steven Mnuchin has said the zones could attract $100 billion in investment. The Treasury said nearly 35 million Americans live in areas designated as Opportunity Zones.
Opportunity Zones are part of President Trump’s larger Revitalization Council that will coordinate efforts across the federal government to deliver jobs, investment and growth to communities in need. The zones are located in both urban and rural communities throughout the U.S. and are intended to bolster economic activity by offering incentives for growth.
“We look forward to working with Patrick, the Utah Association of Counties and the Sorenson Impact Center,” said Ginger Chinn, GOED managing director of urban and rural business services. “The partnerships and alignment of resources will be very beneficial to our rural communities.”
“We have tremendous opportunity to drive significant economic development in our state,” said Adam Trupp, the association’s CEO. “UAC stands ready and able to work with county economic development directors and others in their efforts to attract business, create jobs and generate positive investments in our counties.”
“We know many of the players in the Opportunity Zone arena, from investors to nonprofits to community organizations across the country,” said Hewson Baltzell, CEO of the Sorenson Impact Center. “We are excited to partner with GOED and UAC, lend our experience, and help use this innovative new financing program to create a positive social and economic impact for rural Utah.”
The Utah Association of Counties is a voluntary, statewide organization supported by the state’s 29 counties. The association’s mission is to advance county issues with the state and federal government, improve public understanding of county government, assist all 29 counties to develop and share solutions through research and education, and provide effective support services to county officials that foster public trust and improve the efficiency of county government.
The Sorenson Impact Center is described as “a think-and-do tank” at the University of Utah’s David Eccles School of Business. Its mission is to marshal capital for social good, empower data-driven programs, break down silos across sectors, and equip the next generation of leaders with social purpose.
Mullen is the former managing director of impact investing at the Sorenson Impact Center, bringing unique experience in working with both UAC and Sorenson. At Sorenson, Mullen worked on more than $100 million of private investments with foundations, family offices and impact investing firms. He began his career with the University Venture Fund and the Goldman Sachs Group Inc. Mullen serves as a board member for Westminster College’s Center for Entrepreneurship; a venture partner with Arctaris Impact Fund, a Boston-based growth debt fund; and works with Salt Lake County’s Economic Development Division.{/mprestriction}
