Opportunity Zones

The Investing in Opportunity Act proposes a new solution to encourage economic growth and job creation, with incentives to private capital to reinvest those dollars in communities like Stockton through Opportunity Zones.

 

Opportunity Zones offers investors three tax incentives to put their capital to work:

  1. Temporary tax deferral: An investor can defer capital gains taxes until 2026 by keeping unrealized gains in an Opportunity Fund.
  2. Tax Reduction: The original amount of capital gains to pay deferred taxes is reduced by 10% if the Opportunity Fund investment is held for 5 years and another 5% if held for 7 years, for total of 15%.
  3. Tax Exemption: Any capital gains on investments made through an Opportunity Fund accrue tax-free as long as the investor holds them for at least 10 years. For investments maintained longer than 10 years and upon a sale or disposition of the investment, the investor is allowed to elect the basis in the investment to equal to the fair market value of the investment.

 

To qualify for these incentives, investments must be made through a qualified Opportunity Fund – a corporation or partnership organized to invest in designated Opportunity Zones and holds at least 90% of its assets. Note: The U.S. Treasury is expected to provide rules and guidelines on how to become certified as a qualified Opportunity Fund this fall.

 

Investment Opportunities

Stockton offers a wide range of investment opportunities, including expansive infill sites, shovel-ready planned development sites, and businesses. Choose the real estate development that works for you – industrial, commercial or residential, or investing in a new or expanding business.

 

Real Estate – Industrial

Airpark 599 Business Park - South StocktonAirpark 599

  • Catellus: Develop master-plan business park with office, industrial, airport-related retail, hospitality
  • Anchored by nearby Stockton Metropolitan Airport
  • Immediate access to Highway 99 and Interstate 5
  • Opportunity to leverage local workforce and residential population, visitors to/from Stockton airport.
  • Plus access to cargo transportation via airway or nearby highways

 

NorCal Logistics Center - East StocktonNorCal Logistics Center

  • NorCal Logistics: Develop up to 2.7 million square feet of industrial space in 342-acre industrial park
  • Sites permit-ready for light industrial development
  • Adjacent to Burlington Northern Santa Fe intermodal facility for rail cargo transportation
  • Within 3 miles of Stockton Metropolitan Airport
  • Easy access to Highway 99 and Interstate 5

 

Urban Revitalization

Open Window Project (Phase I) - Downtown StocktonOpen Window Project

  • Master Development Plan between Open Window Project and City of Stockton
  • Envisions 1,400 new dwellings, retail stores, live/work lofts and work spaces
  • Phase I
    • 230 market-rate housing units
    • 92,000 square feet of commercial space, 51 parcels over 15 city blocks
  • Close proximity to transit
    • ACE and Amtrak commuter rail to Sacramento, Bay Area and Southern California
    • Regional transit center and three major highways
  • Within 1 mile of major event venues
  • Area employers include City of Stockton and San Joaquin County
  • Located along City-sponsored Miner Avenue Complete Streets Project, 10-block rehabilitation to increase pedestrian-friendly walkability

 

University Park - Midtown Stockton

University Park

  • 61,000 square feet of commercial/medial space
  • Master Development Plan (MDP) between City of Stockton and California State University
    • Includes education, office, medical and retail uses
    • Includes CSU-Stanislaus, Stockton Center; Dignity Health Medical Group, Satellite Dialysis
  • Surrounding area uses includes St. Joseph's Medical Center, residential, office, commercial, and elementary school
  • Close proximity to major highways and commuter rail services to Sacramento and Bay Area
  • Professionally managed

 

North Shore - Downtown Waterfront

North Shore

  • Underutilized parcels located in North Shore along waterfront
  • Adjacent to City-owned Stockton Ballpark and Stockton Arena
  • Plans in place for extension of pedestrian promenade to continue along with waterfront
  • Potential future uses: Mxed-use neighborhoods, water recreation, office/commercial, conference center, hotel, townhomes, studios, live-work

 

Airport Way Corridor - South Stockton

Airport Way Corridor

  • Multiple vacant parcels of various sizes along major corridor between downtown Stockton and Stockton Metropolitan Airport
  • City-owned and privately-owned parcels available
  • Area uses include San Joaquin County Fairgrounds, residential, commercial retail, light and heavy industrial uses
  • Stockton Airport provides domestic and air cargo transportation
  • Opportunity to leverage surrounding residential population, high traffic count along Airport Way, and thousands of visitors to fairgrounds and airport
  • Potential development for commercial and administrative professional facilities for more opportunities for development of grocery stores and medical clinics needed in this area

 

Affordable Housing

Liberty Square - Downtown Stockton

Liberty Square

  • $31 million affordable housing complex for veterans
  • Plans and permits already approved
  • Located along RTD bus route
  • Within mile to ACE and Amtrak commuter rail service to Sacramento, Bay Area, Southern California
  • $29 million already secured

  

Grand View Village - Downtown Stockton Grand View Village

  •  $24 million development of 62 affordable units and an 11,000 square foot first-floor market
  • Approved site plans and development plans in place
  • Environmental review complete
  • Within 1 block of nationally recognized Stockton Collegiate International Schools
  • Adjacent to Regal Cinemas Stockton City Centre 16 & IMAX
  • Located along City-sponsored Miner Avenue Complete Streets Project, 10-block rehabilitation to increase pedestrian-friendly walkability
  • $4 million already secured

 

Windstone Village - South Stockton

Windstone Village

  • Two vacant parcels encompassing approximately 8 acres for affordable housing
  • Adjacent to Maya Angelou Branch Library
  • Within .5 miles of two elementary schools and Kennedy Community Center
  • Located along two RTD bus routes connecting to downtown and East Stockton
  • Key area uses include San Joaquin County Fairgrounds 

 

City-Owned Opportunity Sites

Waterfront Property - Downtown Waterfront South Shore

  • 9.12 acres of City-owned waterfront property
  • Includes paved pedestrian promenade with lighting and landscaping maintained by the City
  • Area uses: Stockton Municipal Marina, future City Hall, Children's Museum of Stockton and historic Waterfront Warehouse (renovated for commercial/retail use)
  • Potential site for mixed-use development with ground floor retail and office or market-rate residential

 

Arena Garage Retail Space - Downtown Waterfront Arena Garage

  • 15,000 square feet of new, divisible retail/commercial space
  • Located on ground floor of frequently used Stockton Arena parking garage
  • Opportunity to leverage high-foot traffic from major events and sports events held at adjacent Stockton Arena, Stockton Ballpark and University Plaza Waterfront Hotel
  • Potential development for commercial space(s) for restaurant, brewery and/or food hall

 

Historic City Hall - Downtown Stockton

Historic City Hall 

  • 72,000 square foot municipal building (option to include three adjacent City-owned buildings)
  • Local historic landmark
  • Goal to rehabilitate historic City Hall for adaptive reuse to activate surrounding economy
  • One block from University Waterfront Hotel, Stockton Arena and Stockton Ballpark
  • Opportunity to leverage high visibility and traffic along major downtown corridor, and visitors coming to events at waterfront or nearby major event venues

 

Innovation and Business Investment Opportunities 

Incubators

Huddle Cowork - Downtown Stockton

Huddle Cowork is an innovation hub featuring co-working and event space for entrepreneurs of startup businesses located in and outside of Stockton.

Memberships include office space, office equipment, premium WiFi and conference rooms.

In 2017 Huddle began a 12-week intensive incubation program for early-stage startups providing access to advice from successful entrepreneurs and contacts to networks of seed-funding opportunities.

 

Cafe Coop - Downtown Stockton

Cafe Coop is a collective workspace and launch pad for ideas. Cafe Coop's philosophy is to create a better world through inspiring entrepreneurship, supporting the arts, fostering innovative ideas, and engaging with the community.

Cafe Coop provides private workshop, collaborative spaces, membership packages, special events, resources and networking opportunities.

 

HATCH Workshop - Downtown Stockton

HATCH Workshop offers training and workshops in fine crafts and design for students and the community, while providing affordable live/work spaces and shop access for professional and emerging artists and makers.

HATCH aims to stimulate and inspire the community through a connection to the arts, social entrepreneurship, and local commerce in Stockton.

 

ConSol USA, Inc. - To be determined

ConSol USA, Inc. will develop artificial-intelligence technology for the medical and financial sectors. It is a next-generation business process outsourcing (BPO) and technology company on a mission to recruit, up-skill and employ overlooked talent in meaningful, in-demand, technology-focused careers.

ConSol aims to help its customers create sustainable impact while reducing administrative and operating costs, leading to increased performance.

 

Culinary Kitchen Incubator - Concept

The concept of a kitchen incubator has piqued the interest in both the community and with City officials. Fashioned after La Cocina in San Francisco, a kitchen incubator would provide affordable commercial kitchen space for low-income food entrepreneurs to assist with growing their businesses.

Ideally, this program would provide technical assistance with educational programs to help the transition into the restaurant industry. A successful kitchen incubator could result in the creation of a Food Hall or Co-op where participants could sell their goods.

 

External Links


California Opportunity Zones Portal

California Opportunity Zones - Frequently Asked Questions

 

California State Integrated Opportunity Zones Map

California Department of Finance - Opportunity Zones

California Department of Finance - Interactive Map for California

 

IRS Opportunity Zones - Frequently Asked Questions

 

Cafe Coop

ConSol USA

HATCH Workshop

Huddle

 

This City of Stockton web page last reviewed on --- 11/1/2018