Strategies for Community-led Opportunity Zones Investments

1. Strategies for Community-led Opportunity Zones Investments ECONOMIC INNOVATION GROUP / Washington, DC Rachel Reilly Economic Innovation Group Joined by: • Sarah Lee and Sharayah Lane • Washington State Department of Commerce • Melissa LaFayette • National Development Council • Karen Francis-McWhite and Ernie Rasmussen • North Star Opportunity Zone • Julie Knott • Emerald Coast Opportunity Zone

2. Updates from the Economic Innovation Group • Second Round of Proposed Regulations for Opportunity Zones • Comments due July 1 • Hearing scheduled for July 9 - New Carrollton Federal Building in Lanham, MD • EIG synopsis here • What to Know about the Second Round of Proposed Opportunity Zones Regulations webinar • In Case You Missed It • From Managing Decline to Building the Future - Could a Heartland Visa Help Struggling Regions? • The Flipped Counties of 2016 Still Lagging Behind – download the report • Manufacturing’s Real, But Patchwork, Rebound – download the report June 2019

3. A rising tide lifts all canoes: Building a Community-led Investment Ecosystem in Washington State Sarah Lee – Project Director Sharayah Lane – Graduate Fellow June 2019

4. Value-Approach to designation We asked communities… • Tribes’ choice of 1 zone • Counties’ choice: 1-5 zones • Competition for the rest: • Collaborations • Community project needs June 2019 http://choosewashingtonstate.com/i-need-help-with/opportunity-zones/

5. Should states have continued role? Should we… • Do nothing more? • Create an on-line portal for investment-ready projects? • Help communities develop prospectus? June 2019 http://choosewashingtonstate.com/i-need-help-with/opportunity-zones/

6. First, we listened… We held Listening Sessions around the state with great partners: • Federal Reserve Bank of San Francisco • National Development Council • The communities themselves June 2019 http://choosewashingtonstate.com/i-need-help-with/opportunity-zones/

7. What we heard… Exciting collaborations were already forming: • Between Tribal and non-Tribal rural communities • Focused on sharing resources • “Rising tide lifts all canoes” – Ron Allen Jamestown S’Klallam Tribe Catalytic community-driven projects already identified Communities already know what they need: • Technical assistance • Deal-development capacity • Organization capacity • Funding – for everything from feasibility studies to design – to get their projects investment-ready June 2019 http://choosewashingtonstate.com/i-need-help-with/opportunity-zones/

8. So we brought everyone together… Statewide convening focused on communities NW Area Foundation funded travel scholarships so all could attend Convening of Tribes the day before We brought in experts for one-on-one mentoring • Accountants, attornies • Investors • Federal agencies – EDA, HUD, EPA, USDA-RD, SBA • State agencies • Philanthropy June 2019 http://choosewashingtonstate.com/i-need-help-with/opportunity-zones/

9. Next up: a two-year pilot Our Big Hairy Audacious Goal (BHAG): Build a sustainable ecosystem that creates a pipeline of catalytic, community-driven projects June 2019 http://choosewashingtonstate.com/i-need-help-with/opportunity-zones/

10. Sustainable ecosystem & deal pipeline June 2019 http://choosewashingtonstate.com/i-need-help-with/opportunity-zones/

11. Our Approach to Technical Assistance Melissa LaFayette Field Director National Development Council mlafayette@ndconline.org June 2019

12. Who is NDC? NDC’s work focuses on HOMES, JOBS and COMMUNITY. Founded as a national nonprofit in 1969, NDC has worked for almost 50 years fulfilling its mission to increase the flow of capital for investment in low-income communities. NDC directs capital to support the development and preservation of affordable housing, the creation of jobs through training and small business lending and the advancement of livable communities through investment in social infrastructure. June 2019 https://ndconline.org/

13. Technical Assistance Framework June 2019 https://ndconline.org/

14. Observations & Insights Key observations • Communities have varied levels of interest, skepticism, and enthusiasm • Many projects and communities need support (technical, financial) to fully harness the potential of Opportunity Zones • Washington projects are impressive and varied in terms of location, stage of development, industry, and impact Types of projects • Tribal resiliency projects • Housing of all types • Health clinics • Industrial symbiosis • Community facilities June 2019 https://ndconline.org/

15. June 2019

16. Who We Are There are seven individual stars in the Big Dipper, and together they point at the North Star. So when seven rural and tribal communities in North Central Washington agreed to pool resources to lift up all of their Opportunity Zones, they chose the North Star Opportunity Zones as the name of their collaboration. The North Star Opportunity Zones offer both common opportunities across the region – especially housing for single-family, multi-family, and transit-served neighborhoods – and unique assets, like the rural industrial sites in Malaga, Rock Island, and Omak, and urban mixed use waterfront in Wenatchee and Rock Island. June 2019 https://northstaroz.com/

17. What We Do Build on the Success of Established Collaborations • NCWEDD, regional economic development partnership since 2006 • Our Valley, Our Future Community Action Plan, launched in 2016 with 75% of action items and five of the seven game changers underway or completed • Bridge Research & Innovation District and North Central Washington Technology Partnership Zone • Ferry County Sunrise, a partnership between the Colville Tribes & Ferry County Prioritize Community & Local Investor and Industry Education • Realtors: article and presentation • Wenatchee Valley Chamber Brown Bag Lunch • Okanogan County Stakeholders Engagement: Chambers Road Show and Community Convening • Investor-focused Wenatchee Downtown Possibilities Tour Form Public/Private Learning & Working Groups: • Chelan-Douglas County Regional Working Group • North Star OZ Regional Working Group June 2019 https://northstaroz.com/

18. What We Do Highlight Projects That Align With Community Needs & Strengths Proximity to Brewery District, Downtown Wenatchee & 11-mile Apple Loop Trail around the Columbia Low-cost hydropower, fiber connectivity & BNSF rail service S S N Helps housing shortage of 2000+ units June 2019 https://northstaroz.com/

19. What’s Next Calendaring events across the region and with different stakeholder groups Discerning the best options for creating a regional or community-based opportunity fund for catalytic local projects • Colville Tribes Health Clinic, Wellness Center & Substance Abuse Treatment Center serving ALL Communities • Ferry County Precision Agriculture & Sustainable Food Systems (post Gold Mining Re-Emerging Economy) Aligning OZ Marketing with Broader BRE & Community Marketing • Competitively Low Hydropower • Broadband Fiber Internet Connectivity • Regional Public Transit Assets • Pangborn Memorial Airport and pending direct flight to San Francisco • BNSF & Short-Line Railroad-served OZ parcels and industrial sites (e.g. Rock Island and Omak Business Park) • Proximity to the Canadian market June 2019 https://northstaroz.com/

20. Observations & Insights OZs and QOFs are still relatively unknown and misunderstood by residents, businesses in the zones, and local investors The costs for creating and managing a fund are prohibitive for some projects • Need standardized clarity about QOFs and Regulation D exemptions • Limited access to fund managers in our communities The process for recruiting prospective unaccredited capital gains investors is complicated Benefit of a Concierge Organization or Effort: single point of contact to facilitate access to affiliated but smaller communities June 2019 https://northstaroz.com/

21. NORTH STAR OPPORTUNITY ZONES - WHO WE ARE Ernest Rasmussen, Senior Planner Colville Confederated Tribes ernest.rasmussen.pln@colvilletribes.com (509) 740-7004 Cell Karen Francis-McWhite, Executive Director NCW Economic Development District karen@ncwedd.com or info@northstaroz.com (509) 899-9321 Cell June 2019 https://northstaroz.com/

22. Emerald Coast Opportunity Zone June 2019

23. Where We Are Emerald Coast Opportunity Zone June 2019 https://www.emeraldfunds.org/

24. ECOZ Stakeholders Tribes: Hoh Jamestown S’Klallam Lower Elwha Klallam Makah Quileute Quinault Cities: Forks Port Angeles Port Townsend Sequim Counties: Clallam Jefferson Ports: Port Angeles Port Townsend June 2019 https://www.emeraldfunds.org/

25. June 2019 https://www.emeraldfunds.org/

26. ECOZ Timeline June 2019 https://www.emeraldfunds.org/

27. Rural Coastal Projects Sewer system for growing Tribal resort Critical need for ice manufacturing facility Transoceanic cable landing Recycled forest products wood block manufacturing facility June 2019 https://www.emeraldfunds.org/

28. Port Angeles Downtown Waterfront Projects Performing Arts & Conference Center Tribal longhouse and cultural center Marine discovery center 72 housing units Tribe-owned hotel June 2019 https://www.emeraldfunds.org/

29. Questions? Sharayah Lane Sarah Lee • Phone: (206) 898-2025 • Email: sarah.lee@commerce.wa.gov Melissa LaFayette • Phone: (509) 860-4599 • Email: mlafayette@ndconline.org Karen Francis-McWhite - NCW Economic Development District • Phone: (509) 899-9321 • Email: karen@ncwedd.com info@northstaroz.com Ernest Rasmussen - Confederated Tribes of the Colville Reservation • Phone: (509) 740-7004 • Email: ernest.rasmussen.PLN@colvilletribes.com Julie Knott • Phone: (360) 643-0026 • Email: jknott@clallam.org June 2019

30. Opportunity Zones Coalition The Opportunity Zones Coalition is a group of organizations working together with a broad array of public and private stakeholders to ensure the timely and effective implementation of the policy.  If you are interested in learning more about the Opportunity Zones Coalition, please contact info@eig.org. June 2019