COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Chenin Dow, Community Development Director
DATE: July 7, 2026
SUBJECT: Adoption of a Resolution Approving Recommendation of Santa Maria Census Tracts for Opportunity Zones 2.0
Description:
The City Council will consider adopting a Resolution approving the recommendation of specific Census tracts for the upcoming phase of the federal Opportunity Zone tax credit program.
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3), no environmental review is required.
RECOMMENDATION:
Adopt a Resolution approving the recommendation of Santa Maria Census tracts for Opportunity Zones 2.0.
BACKGROUND:
Established by the 2017 Tax Cuts and Jobs Act, the federal Opportunity Zone program allows state governors to designate qualifying Census tracts to allow investors to receive tax deferrals, reductions and waivers in return for investment in these areas. The program aims to jump-start investment in economically distressed tracts, thus catalyzing economic growth.
The current Opportunity Zone program was initially set to sunset on December 31, 2026.
The continuation of a slightly modified version of the program, or Opportunity Zones 2.0, was authorized in the One Big Beautiful Bill Act on July 4, 2025. The California Governor’s Office of Business and Economic Development (GO-Biz) will collect recommendations for Census tracts to be designated under Opportunity Zones 2.0 through July 25, 2026.
DISCUSSION:
The City of Santa Maria currently has five Census tracts designated as Opportunity Zones under the existing program. These tracts are concentrated along Broadway south of Main Street, supporting the City’s downtown revitalization goals. These designations have aided in development and redevelopment opportunities within the downtown area.
2 Today, the City has the opportunity to recommend Census tracts to be designated by the State of California for the coming 10 -year period. It is anticipated that cities will have an opportunity to weigh in on updated designations every 10 years.
For Opportunity Zones 2.0, GO -Biz is seeking the designation of Census tracts that are optimally positioned to attract strategic investment to fuel economic growth. While no scoring system has been made public, GO-Biz representatives have indicated a focus on sites meeting key criteria:
• Advancing California Jobs Fi rst regional plans and the Statewide Economic Blueprint
• Attracting private investment in affordable housing aligned with stated Regional Housing Needs Assessment (RHNA) goals
• Inclusion of “shovel-ready sites” as defined by the GO -Biz Business Ready Sites tool
• Public investment (demonstrated or planned) within the Census tract
Of the five tracts currently designated under Opportunity Zones 1.0, four remain eligible under the updated program . The fifth, located on the southeast corner of Main and Broadway, has seen an increase in median income and is no longer eligible for the program.
Upon reviewing these criteria, staff believes the most competitive tracts for recommendation will encompass downtown revitalization efforts as well as industrial sites ripe for job creation opportunities. With this in mind, the following recommendations are proposed:
06083002408 (Downtown, southwest of Main and Broadway) 06083002304 (Downtown, northwest of Main and Broadway) 06083002406 (Downtown, Broadway to Blosser, Jones to Morrison) 06083002410 (Mixed zoning with industrial opportunities, west of Broadway with segments from Betteravia to Main and Black)
06083002407 (Downtown, Broadway to Blosser, Cook to Jones) 06083002405 (Downtown, Broadway to Blosser, Morrison to Stowell) 06083002206 (Downtown, Broadway to 101, Alvin to Main) 06083002103 (Mixed zoning with commercial opportunities, Stowell to Betteravia, Broadway to 101)
Following approval by the Council, staff will submit recommendations to GO -Biz for consideration. GO -Biz will submit its recommendations to the U.S. Department of the Treasury in September, with new designations taking effect January 1, 2027.
3 Alternative(s)
The City Council may elect to approve the recommendation of alternative eligible Census tracts. The Council may also opt not to approve the recommendation of Census tracts, which may prevent any tracts in the City of Santa Maria from being included in the program.
Fiscal Considerations
There is no fiscal impact to the City at this time. The designation of tracts as Opportunity Zones may lead to increased investment within those tracts, generating economic growth and increased revenues over time.
Impact on the Community
If approved by the State, the recommended Opportunity Zones will be ideal ly positioned to attract new investment to the City of Santa Maria, generating increased tax revenues and new jobs for local residents.
ATTACHMENT
A. Resolution