Bayonne Mayor Sharon Nadrowski announced that New Jersey Governor Mikie Sherrill is nominating two Bayonne census tracts for the federal government’s Opportunity Zone program, which encourages investment and economic development.
Mayor Nadrowski said, “I would like to thank Governor Sherrill for approving two of the three Bayonne census tracts that I requested her to submit to the federal government for the Opportunity Zone program.” Mayor Nadrowski continued, “We had a recent, very productive conversation about encouraging economic growth in Bayonne. I look forward to working with Gov. Sherrill on Opportunity Zones and other tools for economic progress in our community.”
Under federal law, an Opportunity Zone is a low-income census tract where private investments may be eligible for preferential tax benefits. Congress passed the Opportunity Zone legislation in 2017. That legislation gives state governors the authority to nominate a limited number areas for Opportunity Zones. Working through the Internal Revenue Service, the U.S. Treasury Department makes the final decision about designating Opportunity Zones. A new ten-year Opportunity Zone cycle takes effect on January 1, 2027.
In the Opportunity Zone system, investors invest in a special entity known as a Qualified Opportunity Fund (QOF). A QOF can finance businesses, infrastructure, or housing. Investors can defer taxes temporarily on eligible capital gains reinvested in a QOF. If the QOF investment is held for at least ten years, any capital gains or appreciation on the fund investment itself becomes completely tax-free when it is sold.
Mayor Nadrowski suggested Bayonne Census Tracts 109, 110, and 111 for the Governor to submit to the U.S. Treasury Department for the Opportunity Zone program. Mayor Nadrowski said that these three census tracts would offer “the most potential for creation of affordable housing and sensible mixed-use development and investment.” Governor Sherrill submitted two of the three suggested Bayonne census tracts, 109 and 110, to the U.S. Treasury Department to consider for the Opportunity Zone Program.
Census Tract 109 lies between Prospect Avenue and Broadway. Its northern border is East 25th Street. Most of its southern border is East 16th Street, plus a small area on the East Side around the Light Rail line that is south of East 16th Street and north of East 11th Street.
Census Tract 110 lies between Avenue C and Broadway. Its northern border is West 25th Street. Its southern border is West 16th Street.
Governor Sherrill did not include Census Tract 111 as a proposed Opportunity Zone in her submission to the U.S. Treasury Department. That tract lies immediately to the west of Census Tract 110.
Census tracts are areas created by the U.S. Census Bureau to help organize the federal census every ten years. The Census Bureau also uses the tracts to develop information on income levels, housing, and other factors in a given community.
