< PreviousMaster sample Pull Quote, to use as a template.” — John Doe, vice president, Sample Company D A YT ON | INTELLIGENCE REPORT DID YOU KNOW?DAYTON TRENDS in 1970 , Ohio released a new type of music thus giving Dayton the claim to funk fame. Ohio’s Miami Valley region has of paved, multi-use recreational trails stretching across county lines, schools, parks, historic landmarks and area attractions. over 340 miles Standing at 408 feet, the Kettering Tower is the tallest building in Dayton. 305 ft. Statue of Liberty S I T E S E L E C T I O N JULY 2018 177 D A YT ON | INTELLIGENCE REPORT autonomy technologies,” said Schumacher. Gaming and Education AFRL’s Gaming Research Integration for Learning Laboratory (GRILL) celebrated not only its new location, but also a new partnership with the Dayton Regional STEM School (DRSS) in a ribbon-cutting ceremony June . e GRILL’s new space is part of the local STEM school’s ,-sq.-ft. expansion, which also includes fi ve classrooms, a science laboratory, an assembly space and the Vectren Innovation Laboratory. e new GRILL space, which consists of a parachute simulator, -D printers and a host of computer stations, is one of the few Air Force labs now located inside a public school. e total expansion will allow the school to grow the student population by percent by . “ is is the culmination of work to develop a collaborative DRSS GRILL space, funded by the State of Ohio as well as the school,” said Dr. Winston “Wink” Bennett, the Readiness Product Line lead for AFRL’s th Human Performance Wing. “ e goal was to graduate the GRILL from the technology incubator at its former location (Tec^Edge) to a full-fl edged gaming, modeling and simulation- based research and development space — one that also supports STEM development with the school and larger community.” Maj. Gen. William T. Cooley, Air Force Research Laboratory Commander —U.S. Air Force photo by Wesley Farnsworth178 JULY 2018 SI T E S E L E C T IO N D A YT ON | INTELLIGENCE REPORTD A YT ON | INTELLIGENCE REPORTD A YT ON | INTELLIGENCE REPORTD A YT ON | INTELLIGENCE REPORTD A YT ON | INTELLIGENCE REPORT Dayton has 17 Opportunity Zones. That’s a prime number. The Opportunity Zone Program enacted as part of the federal tax reform aims to drive investment in rural and low-income urban communities that have struggled to recover post-recession. Among the incentives for investing: A temporary deferral of taxable income for capital gains reinvested into an Opportunity Fund; a step-up in basis for capital gains reinvested in an Opportunity Fund; and a permanent exclusion from taxable income of post-income appreciation from the sale or exchange of an investment in an Opportunity Fund if the investment is held for at least years (limited to ). Dayton has census tracts designated as Opportunity Zones, distributed across eight distinct geographies, each with its own compelling value proposition. “We feel like the City has a very robust development toolbox and are glad that we can add the Opportunity Zone program to it,” says Dayton City Manager Shelley Dickstein. After all, investments already are catalyzing the reactivation of million sq. ft. of former offi ce buildings, half of them with historic designations. What’s more, downtown will become the largest historic district in the state in , providing the opportunity for hundreds of thousands of square feet of underutilized space to access state and federal Historic Tax Credits for their repositioning. OZs simply paint another attractive layer into the picture. “We’ve had several successful conversations as a result of our OZ investment prospectus,” says Dickstein. e following are “Opportunities” highlights from the eight geographies described in the city’s prospectus: Downtown: Arts & Innovation • Several legacy towers remain under-utilized downtown, each poised for redevelopment into residential, commercial, retail, hotel or restaurant space. Once offi cial, the pending historic designation will make Opportunity Zones Land of OZ(s) Northwest Industrial Park Northwest Dayton West Spring eld St. Corridor Northeast North of Downtown South of Downtown Downtown S I T E S E L E C T I O N JULY 2018 179 D A YT ON | INTELLIGENCE REPORT more structures eligible for project fi nancing incentives. • Invest near the historic Dayton Arcade, whose $ million transformative reuse will catalyze further development south of ird Street. e fi rst phase of restoration of the iconic -building Arcade complex is underway, scheduled to reopen in as the hub for the emerging downtown innovation ecosystem. A , square foot innovation hub will be anchored by the University of Dayton and e Entrepreneurs Center. • Invest in a downtown startup in the healthcare or aerospace fi eld, with industry partners and workforce close at hand. • Invest in bringing new amenities to downtown’s many visitors. Dayton West: Opportunities in Motion • Part of the Dayton West area has been designated for a HUD Choice Communities Planning Grant, with an Implementation Grant application to follow. Dayton’s Choice Neighborhood Plan is the result of a two- year community engagement process in which residents designed a plan to improve the Miami Chapel community. Over $ million is currently being invested to improve neighborhood infrastructure and transportation access, while the plan’s most ambitious goals are to replace antiquated public housing with units of aff ordable, mixed-income housing in this revitalized community two miles west of Dayton’s thriving downtown. • e Wright Factory site has been acquired by the City of Dayton to facilitate catalytic redevelopment. is historic project encompasses acres and will include a new $ million branch library. In partnership with the National Aviation Heritage Alliance, which plans to contribute $ million to restoration of the original factory buildings into a museum, the new development sets the stage for reimagining the site as an educational and entrepreneurial campus.180 JULY 2018 SI T E S E L E C T IO N D A YT ON | INTELLIGENCE REPORT Northwest: Architecture & Opportunity • e Omega Community Development Corporation is raising funds to build “ e Hope Center,” a community health, education and workforce development facility. • e site of the former Good Samaritan Hospital, closed in , presents a unique redevelopment opportunity for commercial, medical, residential or mixed use on a large site just . miles from downtown. South of Downtown: Imagination District • e -acre former Fairgrounds property, owned by a partnership between the University of Dayton and Premier Health, is envisioned as a mixed-use, technology- oriented hub called OnMain. e current vision includes up to , new mixed- income residential units; additional commercial, retail and recreational space; urban agriculture infrastructure on building rooftops; , additional structure parking spaces; an autonomous shuttle; and repurposing the historic roundhouse to preserve an important part of the city’s history. • Additional development-ready property lies adjacent to the Fairgrounds site. • Invest in student amenities near campus, or housing for medical staff . • Invest in a startup that leverages the research strength of nearby institutions. Spring eld Street Corridor: The Aerospace Hub • e Springfi eld Street corridor is Dayton’s gateway between the Downtown Innovation District and Wright-Patterson Air Force Base, and includes a substantial cluster of advanced manufacturing technology companies. Springfi eld Street is slated for a $ million infrastructure rehabilitation project. • e Corridor has many underutilized buildings that can be repurposed into manufacturing, distribution, or research facilities. • Redevelopment in several of the corridor’s rising neighborhoods could include opportunities for residential, commercial, and mixed-use projects. • Invest in a growing high-tech fi rm with positioning for major Air Force contracts. Northeast: Old North Dayton • Children’s Hospital recently completed new $ million patient tower. Historic McCook Field, once home to the precursor to Wright- Patterson Air Force Base, is now home to approximately , jobs in advanced manufacturing. • Invest in an advanced manufacturing business to facilitate growth, benefi t from economies of scale and gain access to signifi cant logistics infrastructure. • Much of the Northeast Zone is overlaid with a Community Reinvestment Area, off ering a potential property tax abatement in addition to Opportunity Zone incentives. • Invest in an immigrant-owned small business to capitalize on market density while building on the cultural vibrancy of the district. e share of immigrants living in the DaVinci/Northeast Opportunity Zone is more than fi ve times as high as in the broader region. Many of these immigrants have started businesses in the area. North of Downtown: Culture and History • Home to the Dayton Art Institute, historic neighborhoods and some of the city’s most well known festivals, the area now has enhanced transportation options, with a completed phase A of the I- rebuild, the rebuild of the West First Street Bridge, and the $ million Helena Street Bridge reconstruction fi nished in . • North Main St. and Salem Ave. feature signifi cant underutilized assets that are uniquely positioned for investment immediately across the river from downtown. • Northwest Industrial Park: Regional Logistics Hub • Northwest Industrial Park is one of the last greenfi eld development sites left for large- scale manufacturing in Dayton, with over acres of farmland available, and utility access that includes a massive MW electric transmission line owned by Dayton Power & Light. o e area is bisected by Route , giving companies in this zone fast and easy access to both I- to the east and I- to the north, as well as the Dayton International Airport. U R B A N I MP R O VE ME N T D IST R I C TS S P E C I A L A D V E R T I S I N G S E C T I O N SIT E SE L E C TI O N JULY 2019 183 Created under the 2017 Tax Cuts and Jobs Act, Opportunity Zones are intended to stimulate economic development and job creation in distressed low-income communities by incentivizing long-term capital investment. There are more than 8,700 census tracts designated as Opportunity Zones in all 50 states and the U.S. territories. According to advisors at Montrose Group LLC, “The practical impact of the rst set of Opportunity Zone rules,” released in October 2018, “is that real estate projects tied to small, local retail (think coffee shop) and multi-family projects were likely to qualify for the program but projects that actually create high-wage jobs would not.” A sec ond wave of regulations published April 17, 2019, provides a clearer road map for the use ofOpportunity Zones in corporate site location projects, and “could well be the key to transforming the federal Opportunity Zone program from a way to develop housing, mixed use and retail projects into a tool for creating high-wage jobs.” First, the April 2019 regulations establish clear rules for how leased property could bene t from the Opportunity Zone program. “The new Treasury regulations treat leased property held by an Opportunity Zone Business, as lessee, as tangible property for purposes of the 70% substantially all test, and they apply the same rule for the 90% asset test for an Opportunity Fund.” Second, the April regulations clari ed there is no substantial improvement requirement with respect to unimproved land nor with respect to a building that has been vacant for an uninterrupted period of at least ve years. Finally, the Treasury regulations addressed what many believe to the largest impediment to the successful use of the Opportunity Zone program through the discussion of several Safe Harbors related to the “50% test.” In an effort to prevent “shell corporations” from using Opportunity Zones without any economic investment, the October 2018 Treasury regulations established that at least 50% of the gross income of an Opportunity Zone Business must be from the active conduct of a trade or business within the Opportunity Zone. The April regulations keep the 50% test but create several Safe Harbors that should encourage corporate site location projects in Opportunity Zones. “It is worthy to note,” said the Montrose analysis, that the regulations “do not require an Opportunity Zone Business to have 50% of their customers in the Opportunity Zone, do not make local employment requirements, nor do they have any requirements related to the company’s supply chain.” Opportunity Zones 2.0 Montrose Group analysis shows how updated Opportunity Zones regulations could encourage major corporate facility location projects. by ADAM BRUNS adam.br uns @ site s ele c tion.c om In June, Primior broke ground on its First Harbor Plaza development in Santa Ana, California. Rendering courtesy of Primior184 JULY 2019 SIT E SE L E C TI O N The City of Stockton is located in the heart of California’s Central Valley, just east of the San Francisco Bay. Encompassing ap- proximately 65 square miles, Stockton is a dynamic and diverse community that is surrounded by waterways, open space, and a bustling economy. The City holds the county seat for San Joaquin County and is anchored by 10 of the top 25 major employers in the county, including the University of the Pacific. Several strategic investments by the City over the years, tied with Stockton’s strategic location, and key assets have provided the building blocks for Stockton’s growing community. With the framework in place, private development is soaring and the city is now experiencing an unprecedented run of economic activity. All of these factors make Stockton an intriguing destination for developers searching for the next hot infill market. Big City Amenities Stockton enjoys the amenities of a true metropolitan region. The Stockton Metropolitan Airport offers commercial passenger service to key destinations, including Los Angeles, Las Vegas, San Diego, and Phoenix. The inland seaport is one of only two in the state and provides an important commerce gateway from the Central Valley to strategic West Coast and global markets. A baseball stadium and indoor arena adorn the north side of the city’s Downtown waterfront. Together they are home to the Stockton Ports, a minor league affiliate of the Oakland Athletics, the Stockton Kings, a basketball team of the G League owned and operated by the NBA parent club, the Sacramento Kings, and the Stockton Heat, a professional hockey team affiliated with the NHL Calgary Flames. Stockton also enjoys museums, a symphony, public and private marinas, several golf courses, and the historic Bob Hope Theatre, making Stockton the prime location to live, work, and play. Private Development Taking Off With these institutional pieces in place, private development has accelerated at a pace not seen in decades. Several formerly underutilized buildings in Downtown Stockton have been acquired and renovated, and now boast a number of new restaurants, bars, and startups. Residential development has also taken root in Downtown Stockton with the adaptive reuse of many buildings, and the success of this endeavor has brought attention from several development companies searching for a new frontier for urban infill. Growth in Stockton’s medical sector and logistics sector have led to additional developments throughout the city as well. Stocked with Opportunity Stockton has 19 designated opportunity zones offering a variety of investment opportunities of all sizes. Each of Stockton’s opportunity zones are leveraged by various unique characteristics, anchor institutions, and competitive advantages. The designated opportunity zones reinforce many growing hubs in Stockton, including e-commerce and logistics, manufacturing, food processing, construction materials, office and IT professional services, energy resources and technologies, and agricultural technologies. Various catalytic projects and planned developments are also included in Stockton’s opportunity zones. University Park, a medical and academic campus, offers leasing and development opportunities in mid-town. The NorCal Logistics Center offers leasing and purchase opportunities in its industrial warehouse park adjacent to the Burlington Northern Santa Fe intermodal facility. Grand View Village, an approved multifamily housing development in Downtown Stockton, includes 62 affordable units and an 11,000 square foot market. The Open Window Project Master Development Plan consists of a mixed-use, rehabilitation, and adaptive reuse plan for 15 city blocks composed of 1,400 new dwelling units, retail space, live/work lofts, and office space also in Downtown Stockton. Vacant land and developed industrial parks offer additional investment opportunities within the City. Small business and incubator opportunities are also within Stockton’s opportunity zones. The City of Stockton has several prominent locations ripe for new construction throughout the city, within the downtown core, along its scenic waterway, within the many industrial hubs, or within the various commercial corridors. The City also offers a number of incentive programs designed to reduce risk and streamline development. With all of these new exciting changes, it’s time to consider Stockton as California’s next metropolitan hub. —————————————————————————————————— —————————————————————————— More information about the City of Stockton visit advantagestockton.com or email economic.development@stocktonca.gov or call (209) 937-8539. Experience the Stockton Advantage The Stockton Sailing Club and Brookside neighborhood along the San Joaquin River SP ECIAL AD VER TISING SECTION U R B A N I MP R O VE ME N T D IST R I C TSNext >