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Home My WebLink AboutReg 2026-05-18 Item 5D - Resolution - Support Nomination of Certain Eligible Census Tracts for New Opportunity Zones ProgramCity of Tukwila Thomas McLeod, Mayor Marty Wine, City Administrator AGENDA BILL ITEM NO. �� .D. Agenda Item Sponsor Legislative History Resolution inSupport toDesignate OpportunityZonea Derek Speck, Economic Development Administrator May 11.2O28 May 1M,2O2G Regular Meeting Consent Planning 8'Community Development Committee Recommended Motion [] Discussion Only M Action Requested MOVE TOapprove resolution expressing support b/designate opportunity zones. EXECUTIVE SUMMARY This item seeks Council approval of a resolution requesting Governor Ferguson nominate eligible census tracts in Tukwila to be designated as opportunity zones. DISCUSSION Opportunity zones one federally designated census tracts approved for special federal tax incentive to encourage investment in low-income communities. In 2025 the federal government revised the program to designate new CenSUS 1r@CtS effective January 1' 2027. Eligible CeDSUS Ln8CtS must be nominated by each 8tate'a governor by Geptember28. 2020. The Washington State Department ofCommerce is coordinating an application process to support the Governor and is accepting applications that nominate CenSUS tracts. App|iC8UOOS are due May 28' 2028 and the City has started working On our applications. Commerce's application process includes a point system and allocates up to 5 points (out 0fGpossible total Of1O5)ifthe application includes @ local government resolution 0rletter Ofsupport. The opportunity zone designation pn3CHSSwiUb8VH[yCO0 because governors may only O00OiO8te 25% of the C8OSUG tracts that are eligible in Ul8i[ State. Tukwila has cig4#seven eligible D8OSUS t[8CtS of which t*",f04[ are fully within the City and flvethnBe iDC|Ud8 portions of our neighboring cities. Staff requests Council approval of the attached resolution to use in the application process. ATTACHMENTS ° Draft Resolution -resolution and map updated after 05111PCDMeeting • Final Resolution ° Minutes from 05/11/26 Planning & Community Development Committee Meeting 64 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, SUPPORTING THE NOMINATION OF CERTAIN ELIGIBLE CENSUS TRACTS FOR DESIGNATION UNDER THE NEW OPPORTUNITY ZONES PROGRAM (OZ 2.0) IN THE CITY OF TUKWILA. WHEREAS, the Federal Opportunity Zone Program is a Federal Tax Incentive created as part of the Tax Cuts and Job Acts in 2017 to encourage private investment in low-income census tracts ("Opportunity Zones"); and WHEREAS, in 2025, the Federal Government revised the Opportunity Zone Program and the new program ("OZ 2.0") will take effect on January 1, 2027; and WHEREAS, as a requirement of the new program, State Governors must nominate census tracts to become Opportunity Zones; and WHEREAS, Washington State requires submissions for consideration by the governor to be submitted by May 28, 2026; and WHEREAS, certain census tracts within the City of Tukwila continue to experience economic challenges; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The City of Tukwila has experienced new development under the current Opportunity Zone Program and desires to attract future development under the revised Opportunity Zone Program. Section 2. The City Council of the City of Tukwila hereby endorses the nomination of the census tracts 530330-262-00, 530330-263-00, 530330-264-00, 530330-271-00, 530330-272-00,---0 - -27 530330-281-00, and 530330-282-00 to be designated as Opportunity Zones under the revised program as reflected on the map attached as Exhibit A and incorporated herein by reference. 2026 Legislation: Supporting Opportunity Zones Version: 05-05-2026 Staff: D. Speck Page 1 of 2 65 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2026. ATTEST/AUTHENTICATED: Andy Youn-Barnett, CMC, City Clerk Armen Papyan, Council President APPROVED AS TO FORM BY: Office of the City Attorney Attachment: Exhibit A — Map of Census Tracts 2026 Legislation: Supporting Opportunity Zones Version: 05-05-2026 Staff: D. Speck Filed with the City Clerk: Passed by the City Council: Resolution Number: Page 2 of 2 66 Census Tracts CT 280 CT 287 May 5, 2026 CT 109 CT 288.01 CT 273 Eligible Census 530330-262-00 530330-263-00 530330-264-00 530330-271-00 KING T 111.01 CT 111.02 CT 117 CT 284.03 CT 288.02 Tracts CT 116.01 530330-272-00 530330-281-00 530330-282-00 CT 246.01 emesr i izxes�€ CT 246.02 CT 118.02 WAS CT 283 CT 119.02 CT 260.0 CT 261.02 CT 261.01 T 292.06 T 260.0 CT 247.04 New CT 247.03 CT 253.04 CT 252.02 CT 252.0 CT 254.01 T 253.021 T 254,021i CT 257.04 CT 257.0 CT 258.05 T 258. 61" 293.0 CT293,09 ii CT 293.05 T 292.07 1 CT 294.03 CT 257 CT 258.04 CT 258.03 CT 293.06 1:69,047 0 0.5 1 0 0.75 1.5 CT 294.05 2 mi 3 km Source: U.S. Census Bureau, Sources: Esri, USGS, NCAA Created with: TIGERweb 67 (c)Copyright 2026 - US Census Bureau Washington esolution No. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, SUPPORTING THE NOMINATION OF CERTAIN ELIGIBLE CENSUS TRACTS FOR DESIGNATION UNDER THE NEW OPPORTUNITY ZONES PROGRAM (OZ 2.0) IN THE CITY OF TUKWILA. WHEREAS, the Federal Opportunity Zone Program is a Federal Tax Incentive created as part of the Tax Cuts and Job Acts in 2017 to encourage private investment in low-income census tracts ("Opportunity Zones"); and WHEREAS, in 2025, the Federal Government revised the Opportunity Zone Program and the new program ("OZ 2.0") will take effect on January 1, 2027; and WHEREAS, as a requirement of the new program, State Governors must nominate census tracts to become Opportunity Zones; and WHEREAS, Washington State requires submissions for consideration by the governor to be submitted by May 28, 2026; and WHEREAS, certain census tracts within the City of Tukwila continue to experience economic challenges; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The City of Tukwila has experienced new development under the current Opportunity Zone Program and desires to attract future development under the revised Opportunity Zone Program. Section 2. The City Council of the City of Tukwila hereby endorses the nomination of the census tracts 530330-262-00, 530330-263-00, 530330-264-00, 530330-271-00, 530330-272-00, 530330-273-00, 530330-281-00, and 530330-282-00 to be designated as Opportunity Zones under the revised program as reflected on the map attached as Exhibit A and incorporated herein by reference. 2026 Legislation: Supporting Opportunity Zones Version: 05/05/2026 Staff: D. Speck Page 1 of 2 68 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2026. ATTEST/AUTHENTICATED: Andy Youn-Barnett, CMC, City Clerk Armen Papyan, Council President APPROVED AS TO FORM BY: Office of the City Attorney Attachment: Exhibit A — Map of Census Tracts 2026 Legislation: Supporting Opportunity Zones Version: 05/05/2026 Staff: D. Speck Filed with the City Clerk: Passed by the City Council: Resolution Number: Page 2 of 2 69 Census Tracts CT 280 CT 287 May 5, 2026 CT 109 CT 288.01 CT 273 Eligible Census 530330-262-00 530330-263-00 530330-264-00 530330-271-00 KING T 111.01 CT 111.02 CT 117 CT 284.03 CT 288.02 Tracts CT 116.01 530330-272-00 530330-281-00 530330-282-00 CT 246.01 emesr i izxes�€ CT 246.02 CT 118.02 WAS CT 283 CT 119.02 CT 260.0 CT 261.02 CT 261.01 T 292.06 T 260.0 CT 247.04 New CT 247.03 CT 253.04 CT 252.02 CT 252.0 CT 254.01 T 253.021 T 254,021i CT 257.04 CT 257.0 CT 258.05 T 258. 61" 293.0 CT293,09 ii CT 293.05 T 292.07 1 CT 294.03 CT 257 CT 258.04 CT 258.03 CT 293.06 1:69,047 0 0.5 1 0 0.75 1.5 CT 294.05 2 mi 3 km Source: U.S. Census Bureau, Sources: Esri, USGS, NCAA 70 Created with: TIGERweb (c)Copyright 2026 - US Census Bureau City of Tukwila City Council Planning & Community Development Committee Meeting Minutes May 11, 2026, 5:30 p.m. - Hybrid Meeting; City Council Conference Room & MS Teams Councilmembers Present: Kate Kruller, Chair; Jo Camacho, Jane Ho Staff Present: Laurel Humphrey, Derek Speck, Pete Mayer, Heidi Watters Guest: Vicky Raya, King County Chair Kruller called the meeting to order at 5:30 p.m. BUSINESS AGENDA A. Effective Engagement on Climate Strategies Ms. Raya, Climate Equity Manager, presented suggestions and best practices for Tukwila to consider. Committee Recommendation Discussion only. B. Resolution: Public Benefit Rating System Open Space Classification A resident is seeking Council approval to have his property at 4447 S. 148th St classified under the County's PBRS. Items for follow-up: Return with answers to the following: 1. Can the Council say no? 2. Does this classification permanent - does it stay with the property regardless of owner? Committee Recommendation Unanimous approval. Forward to May 18, 2026 Regular Meeting. C. Resolution: Supporting Designation of Certain Census Tracts as Opportunity Zones *Staff is seeking approval of a resolution requesting Governor Ferguson nominate 7 eligible census tracts for designation as opportunity zones. Committee Recommendation Unanimous approval. Forward to May 18, 2026 Regular Meeting Consent Agenda. MISCELLANEOUS Councilmember Camacho recommended a contact, Peter Donaldson at Sustainability Ambassadors. The meeting adjourned at 6:52 p.m. Committee Chair Approval 71