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HomeMy WebLinkAboutR-18-0083City of Miami Legislation Resolution: R-18-0083 File Number: 3794 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Final Action Date: 3/8/2018 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), URGING GOVERNOR RICK SCOTT ("GOVERNOR") TO DESIGNATE THE LOW- INCOME CENSUS TRACTS ("TRACTS") AS IDENTIFIED IN ATTACHMENT "A," ATTACHED AND INCORPORATED, AS QUALIFIED OPPORTUNITY ZONES AS FURTHER DESCRIBED IN THE TAX CUTS AND JOBS ACT OF 2017 IN ORDER TO ALLOW THE SELECTED TRACTS TO PARTICIPATE IN THE OPPORTUNITY ZONE PROGRAM AND GIVE FAVORABLE CAPITAL GAINS TREATMENT TO INVESTMENTS WITHIN THOSE TRACTS; FURTHER URGING THE GOVERNOR TO REQUEST A THIRTY (30) DAY EXTENSION, IF NECESSARY, TO RESPOND TO THE UNITED STATES SECRETARY OF THE TREASURY; DIRECTING THE CITY CLERK TO TRANSMIT A COPY OF THIS RESOLUTION TO THE GOVERNOR SPONSOR(S): Commissioner Wifredo Gort WHEREAS, the Tax Cuts and Jobs Act of 2017 ("Act") created a new community investment vehicle, the Opportunity Zones Program ("Program"), which is a community development program designed to drive long-term capital to rural and low-income urban communities throughout the nation; and WHEREAS, the Program provides tax incentives for investors to re -invest their unrealized capital gains into newly established Opportunity Funds that are dedicated to investing in Opportunity Zones; and WHEREAS, Opportunity Funds are private sector investment vehicles that invest at least 90% of their capital in Opportunity Zones; and WHEREAS, the Program uses low-income community census tracts ("Tracts") as the basis for determining the eligible areas for the Opportunity Zone designation; and WHEREAS, pursuant to the Act, the Governor of each state and territory has ninety (90) days from December 22, 2017 to designate up to twenty-five percent (25%) of the total number of low-income census Tracts in their respective state as Opportunity Zones; and WHEREAS, each state's Governor must communicate his or her recommendation for the Opportunity Zone designation by March 21, 2018 to the United States Secretary of the Treasury, unless a Governor chooses to request a thirty (30) day extension which would give the Governor a total of one hundred twenty (120) days to complete his or her recommendation; and WHEREAS, by failing to submit Opportunity Zone nominations by the deadline, Governors effectively opt out of the Program and render the state ineligible to receive the private investments that are encouraged by the Program; City of Miami Page 1 of 2 File ID: 3794 (Revision:) Printed On: 5/29/2018 File ID: 3794 Enactment Number: R-18-0083 NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section Section 2. The City Commission urges Governor Rick Scott to designate the Tracts identified in Attachment 'A," attached and incorporated, as qualified Opportunity Zones as described in the Act so that the selected Tracts can participate in the Program and give favorable capital gains treatment to investments within those Tracts. Section 3. The City Commission further urges Governor Rick Scott to request a thirty (30) day extension, if necessary, to respond to the United States Secretary of the Treasury. Section 4. The City Clerk is directed to transmit a certified copy of this Resolution to Governor Rick Scott. Section 5. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.' APPROVED AS TO FORM AND CORRECTNESS: 1 4ia dez, CiItyAtto i ey 3/7/2018 ' If the Mayor does not sign this Resolution, it shall become effective at the end of ten (10) calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission. City of Miami Page 2 of 2 File ID: 3794 (Revision:) Printed on: 5/29/2018