CONSENT ITEM
D-3
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: JOSE D. JIMENEZ, DIRECTOR OF ECONOMIC & COMMUNITY
DEVELOPMENT
DATE: JULY 20, 2026
SUBJECT: CONSIDERATION TO ADOPT A RESOLUTION SUPPORTING THE
RECOMMENDATION FOR ELIGIBLE CENSUS TRACT NUMBER
06037400602 UNDER THE STATE OF CALIFORNIA'S OPPORTUNITY ZONES
2.0 PROGRAM
BACKGROUND:
The federal Opportunity Zone (OZ) Program was established through the 2017 Tax Cuts and Jobs Act to encourage long-term private investment in economically distressed communities through capital gains tax incentives. In 2025, Congress reauthorized and updated the program through the Opportunity Zones 2.0 provisions, creating a recurring process for states to designate new Opportunity Zones every ten years. California's first Opportunity Zones 2.0 designations are expected to take effect on January 1, 2027.
As part of the 2026 designation cycle, the Governor's Office of Business and Economic Development (GO-Biz) has identified eligible census tracts and is soliciting recommendations from local jurisdictions for consideration. During a recent informational presentation to interested communities, GO-Biz requested that cities adopt resolutions supporting the nomination of eligible census tracts. Recommended tracts will be evaluated by GO-Biz and included in the Governor's nomination package submitted to the U.S. Department of the Treasury, which has final authority over Opportunity Zone designations.
Designation may help attract private investment to support economic development, housing, and redevelopment projects, while preserving local land use authority and not providing direct funding to local agencies.
Adoption of Opportunity Zones 2.0 Resolution
July 20, 2026
RECOMMENDATIONS:
Staff recommends that the City Council take the following actions:
1) Adopt Resolution No. 2026-C43 establishing the City’s support of the recommendation of eligible census tract Number 06037400602 under the State of California’s Opportunity Zone’s 2.0 Program;
2) Authorize the City Manager or his designees to submit the Resolution to the State of California’s Opportunity Zones 2.0 Program; and
3) Encourage support from elected representatives in advancing the City’s Opportunity Zone nomination.
ANALYSIS:
Within the City of Azusa, GO-Biz has identified Census Tract 06037400602 as eligible for nomination. The tract is generally bounded by Cerritos Avenue to the east, Foothill Boulevard to the north, West First Street to the south, and Azusa Avenue and San Gabriel Avenue to the west.
The area includes portions of Downtown Azusa, City-owned Block 37, and several vacant or underutilized properties that present opportunities for infill development, economic investment, and broader downtown revitalization efforts.
The proposed designation is also consistent with the City's adopted planning and economic development objectives. The Azusa Transit-Oriented Development (TOD) Specific Plan identifies the Route 66 District as a strategic corridor for mixed-use redevelopment, business investment, commercial revitalization, placemaking improvements, and new housing opportunities that reinforce Azusa's historic Route 66 identity. Opportunity Zone designation may serve as an additional implementation tool by encouraging private investment in projects that further these long-term community planning objectives.
While Opportunity Zone designation does not provide direct funding to the City, it may enhance the marketability of properties within the tract by making qualifying investments eligible for federal capital gains tax incentives. There are potential opportunity sites within the tract that could benefit from this classification. Designation could serve as an additional economic development tool to attract private capital and encourage investment in projects that support housing production, commercial redevelopment, job creation, and long-term community revitalization objectives.
Adoption of the proposed resolution does not commit the City to any specific development project, financial obligation, or land use action. Rather, it formally expresses the City's support for GOBiz's consideration of Census Tract 06037400602 as part of California's Opportunity Zones 2.0 nomination process.
Adoption of Opportunity Zones 2.0 Resolution
July 20, 2026
FISCAL IMPACT:
There is no fiscal impact associated with this action. However, designation of eligible census tracts as Opportunity Zones may provide federal tax incentives to private investors and developers, including capital gains tax deferral and potential tax exclusions, which are intended to encourage long-term private investment in housing, commercial development, and other economic revitalization projects within the designated areas.
Prepared by: Reviewed by:
Alfa Lopez Jose D. Jimenez
Economic Development Manager Economic & Community
Development Director
Reviewed by: Reviewed and Approved by:
Richard T. Lam Sergio Gonzalez
Budget & Revenue Administrator City Manager
Attachment:
1) Resolution No. 2026-C43
RESOLUTION NO. 2026-43
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA,
ESTABLISHING THE CITY’S COMMITMENT TO SUPPORTING
INVESTMENT AND ECONOMIC DEVELOPMENT WITHIN
DESIGNATED OPPORTUNITY ZONES AND FINDING THIS ACTION IS
EXEMPT FROM REVIEW UNDER THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT
WHEREAS, the City of Azusa is committed to encouraging economic development, expanding employment opportunities, supporting housing production, and promoting private investment that enhances long-term community vitality; and WHEREAS, the federal Opportunity Zone program, established under the Tax Cuts and Jobs Act of 2017, is intended to stimulate economic growth and investment in designated lowincome communities through federal tax incentives for qualifying investments; and WHEREAS, recent federal Opportunity Zones 2.0 guidelines and updated guidance issued by the U.S. Department of the Treasury and the Internal Revenue Service provide additional clarification, modernization, and continued framework support for encouraging long-term investment, transparency, and measurable community impact within designated Opportunity Zones; and
WHEREAS, the City of Azusa includes eligible census tracts, as identified in Exhibit A, including Census Tract 06037404301, which may qualify for Opportunity Zone-related investment and redevelopment opportunities; and
WHEREAS, designated Opportunity Zones within the City of Azusa present opportunities for development, infrastructure improvements, business expansion, housing development, and job creation consistent with the City’s General Plan, Economic Development objectives, and adopted planning policies; and
WHEREAS, the City's adopted Azusa Transit-Oriented Development (TOD) Specific Plan identifies the Route 66 District as a strategic corridor for mixed-use redevelopment, business investment, commercial revitalization, placemaking improvements, and new housing opportunities that reinforce the City's historic Route 66 identity and advance the economic development objectives that may be further supported through Opportunity Zone investment; and WHEREAS, the City of Azusa recognizes that strategic investment within Opportunity Zones can help leverage private capital, strengthen neighborhoods, expand the local tax base, and advance equitable economic development outcomes; and
WHEREAS, the City Council finds that actions described in this Resolution are administrative and policy-oriented in nature and do not constitute a project under the California Environmental Quality Act (CEQA) pursuant to Section 15378(b) of the CEQA Guidelines, and therefore are exempt from CEQA review.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA DOES HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS:
SECTION 1. The City Council hereby affirms its support for encouraging investment and economic development activities within the City’s designated Opportunity Zones in a manner consistent with the City’s General Plan, Housing Element, and Economic Development goals.
SECTION 2. The City Council encourages cooperation and collaboration among developers, businesses, community organizations, and public agencies to promote responsible investment and development within Opportunity Zone areas.
SECTION 3. The City Manager and City staff are authorized to support and facilitate outreach, coordination, and informational efforts related to Opportunity Zone investment opportunities consistent with applicable laws and City policies.
SECTION 4. The City Council finds that this Resolution is exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15378(b), as it does not constitute a project resulting in a direct or reasonably foreseeable physical change in the environment.
SECTION 5. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED and ADOPTED this 20th day of July 2026. ________________________________
Edward J. Alvarez
Mayor
ATTEST:
________________________________
Jeffrey Lawrence Cornejo, Jr.
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I HEREBY CERTIFY that the foregoing Resolution No. 2026-C43 was duly adopted by the City Council of the City of Azusa, at a regular meeting of said City Council held on the 20th day of July 2026, by the following vote of the Council:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
________________________________
Jeffrey Lawrence Cornejo, Jr.
City Clerk
APPROVED AS TO FORM:
_________________________________
Burke, Williams & Sorensen, LLP
City Attorney
EXHIBIT A
Opportunity Zone Map
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EXHIBIT A