Summary Sheet- RFCA SUMMARY

CITY OF TEMPE
Meeting Date: 4/30/2026  
REQUEST FOR COUNCIL ACTION
Agenda Item: 7C4
ACTION:  Adopt a resolution supporting the City of Tempe’s participation in the State-led Opportunity 
Zones 2.0 designation process and authorizing the submission of recommended census tracts to the 
Arizona Commerce Authority for consideration. (Resolution No. R2026.45)
FISCAL IMPACT:  There is no fiscal impact associated with this action.
RECOMMENDATION:  Adopt Resolution No. R2026.45.
 
BACKGROUND INFORMATION:  The City of Tempe is participating in the state-led Opportunity 
Zones (OZ) 2.0 designation process coordinated by the Arizona Commerce Authority (ACA). As a key 
local economic development partner, Tempe plays an important role in identifying and advancing areas 
well-positioned to benefit from the federal Opportunity Zone designation. The purpose of this request for 
Council action is to seek Council's support for the recommended census tracts for inclusion in the federal 
government’s Opportunity Zones program.
The federal Opportunity Zones program, established in 2017, provides tax incentives to encourage 
private investment in economically distressed communities. In 2018, Arizona designated 168 census 
tracts, with cities providing critical input to ensure selected areas aligned with local development 
priorities and investment opportunities. In Opportunity Zones 1.0, Tempe was ranked as number twelve 
in the nation for projects across its five designated areas. 
With the adoption of Opportunity Zones 2.0, the program is now permanent under the One Big Beautiful 
Bill Act (OBBBA) and requires states to submit a new set of zone designations based on updated criteria. 
Per the federal guidelines, still subject to adjustment, the city has the opportunity to recommend 25% of 
its eligible tracts. ACA, as the state’s designated coordinator, will submit a consolidated package 
submitted by all cities to the Governor by July 1, 2026. The Governor will then nominate Arizona’s 
recommended census tracts for federal designation, with the new designations taking effect on January 
1, 2027.
Tempe’s role in this updated process builds on its prior involvement. This includes evaluating eligible 
census tracts within the city, aligning potential designations with local plans and identified projects, 
infrastructure investments, and advancing recommendations that reflect community and economic 
development priorities. Based on current mapping, Tempe can recommend up to three census tracts (a 
reduction from five tracts in Opportunity Zone 1.0), and staff have identified three tracts that align with 
the goals of the program, plus at least one alternate tract in the event that the federal eligibility criteria 
adjust before final submission. The tracts include: 3187, 3188, 3184, and 3191. Staff seek Council's 
support of the recommended census tracts for submission to ACA for inclusion in the Arizona 
Opportunity Zones 2.0 package.
ATTACHMENTS:    
1. OPPORTUNITY ZONE RESOLUTION R2026_45.DOCX
STAFF CONTACT(S):  Lisa Hausz, Interim Deputy Economic Development Director, 602-539-0259

2
Department Director:  Jeff Tamulevich, Community Development Director  
Legal review by:  Eric Anderson, City Attorney
Prepared by:  Lisa Hausz, Interim Deputy Economic Development Director