RESOLUTION NO. 20181018-039
WHEREAS, disparities in income and services exist in Austin, such that
Austin has been cited by multiple studies as one of the most economically
segregated cities in the United States by measures of income, educational
attainment, economic mobility, and access to basic services; and
WHEREAS, federal legislation created Opportunity Funds in 2017 as a tool
to reinvest capital gains in designated Opportunity Zones, which are census tracts
nominated by the governor of each state, as a flexible tool to encourage investment
in low-income communities; and
WHEREAS, the governor of each state was allowed to nominate up to 25%
of census tracts in their state in which median family income is 80% of the median
family income for the area in which the tract is located, and which have a poverty
rate of at least 20%; and
WHEREAS, Governor Abbott nominated 628 Texas census tracts as
Opportunity Zones on March 21, 2018; 21 of which are fially or partly located
within the City of Austin, and 18 of these are located east of Interstate Highway
35; and
WHEREAS, the Spirit of East Austin community engagement initiative was
designed to assess' the needs of East Austin residents who have historically been
underrepresented and live in lower-income communities, and the lack of access to
grocery stores was repeatedly raised by members of these communities throughout
these engagement opportunities; and
WHEREAS, the City of Austin's 2017 Community Survey shows that
residents of Council Districts in which Opportunity Zones are located are more

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 likely to report being dissatisfied with their access to high-quality and affordable
food options; and
WHEREAS, the City has committed to supporting complete communities
that provide easy-to-access, nearby amenities to improve residents' quality of life
through the Imagine Austin Comprehensive Plan and the Strategic Direction 2023;
and
WHEREAS, the City has committed to encouraging responsive and
responsible private sector investment, as shown by the City Council's approval of
new Chapter 380 economic incentive agreements to encourage responsible
development that benefits all Austin residents; and
WHEREAS, the City of Austin requested that the Internal Revenue Service
provide expanded guidance on investments in Opportunity Funds, the qualifying
and appropriate investments that can be made with these funds, the role of state
and local governments in guiding such investment, and the use of state and local
incentives in conjunction with these funds to encourage development that is
appropriate and responsible for each community; similar requests have come from
other jurisdictions, community financial organizations, and investment groups; this
additional regulatory guidance remains under development; NOW,
THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF AUSTIN:
The City directs the City Manager to work with the Economic Development
Department to develop recommendations for leveraging available incentives and
City resources to encourage responsible investment resulting in the improvement
of the quality of life for Austin residents living in the communities in and around

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 opportunity Zones. Such guidance will include recommendations pertaining to and
will take into consideration:
•

the development of a program to encourage and oversee responsible
development in Opportunity Zones located in Austin;

•

the expressed needs of Austin residents in and around Opportunity Zones
that can be addressed through private investment in their communities,
including and particularly the need for accessible and affordable high-quality
grocery store options;

•

any additional engagement strategies needed to understand residents' needs
throughout the life of the Opportunity Fund investments;

•

existing and proposed economic incentive programs or tax credits available
to investors in Austin that can be used in conjunction with Opportunity Fund
investment;

•

approaches considered and enacted by other local jurisdictions and states;

•

analysis of the capacity of financial institutions serving the Austin area to
establish and certify Opportunity Funds;

•

incorporation of any additional guidance that may come from relevant
regulatory agencies or legislation; and

•

identification of need for additional regulatory guidance from the federal
government to ensure the effective use of Opportunity Funds to realize the
needs of Austin residents.

BE IT FURTHER RESOVLED:
The City of Austin will continue engaging with state and federal lawmakers
and regulatory agencies to communicate the need for cooperation with and
guidance from these jurisdictions.
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 BE IT FURTHER RESOLVED:
The City Manager is directed to report back to the City Council on
recommendations and proposed programs to leverage incentives and resources by
April 18,2019.
ADOPTED:

October 18 , 2018

ATTESTfTYop^^^ A
Jannette S. Goodall
City Clerk

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