Opportunity Zones

Opportunity Zones are a new community development program established by Congress in the Tax Cuts and Jobs Act of 2017 to encourage long-term investments in low-income urban and rural communities nationwide. The Opportunity Zones program provides a tax incentive for investors to re-invest their unrealized capital gains into Opportunity Funds that are dedicated to investing into Opportunity Zones designated by the chief executives of every U.S. state and territory.

Similar to a 1031 exchange, the Act provides additional incentives of reduced and deferred taxes, and a requirement that only capital gains be reinvested in Zone Funds.  Additionally, if deferred gains are held in a Zone Fund for five years, the capital gains tax on an initial investment is reduced by 10%.  After seven years, the discount increases to 15%.  If the deferred gain is held in a Zone Fund for at least 10 years, any additional gain on the initial investment is tax-free.

Madison County has received Opportunity Zone designation for two census tracts. Please contact our office at 402-844-2260 to learn more. 

Census Tract 9607

General Tract Description

This tract lies in the north and northeastern portion of Norfolk and extends beyond city limits to encompass a large portion of the City of Norfolk’s extraterritorial zoning jurisdiction. Generally the tract boundaries follow the Nebraska Central Railroad line on the east side, the Madison County/Pierce County line on the north side and Highway 81 on the west side. The southernmost portion extends to Highway 275.

 

Current land use

The vast majority of the northernmost land use is agriculture, but the area includes multiple other zoning categories that offer development opportunities. The eastern border of the tract includes several undeveloped, industrial zoned parcels with rail bordering them. The second most densely categorized zone within this tract is R-1, which is the lowest density residential category in Norfolk.

 

Future land use

The City of Norfolk’s future land use map indicates an expansion of industrial and industrial reserve in the indicated tract. Community representatives see industrial development, commercial development, and commercial rehabilitation as the primary opportunities for investment in this tract. The tract encompasses the majority of the city’s downtown district including a large portion of the North Fork River District, which is targeted for redevelopment.

Census Tract 9611

General Tract Description

This tract lies in the southern portion of Norfolk and extends beyond city limits to encompass a large portion of the City of Norfolk’s extraterritorial zoning jurisdiction. The tract boundaries follows US Highway 275 on the northern boundary, cuts southeast along north 61st Street, west Omaha Avenue, south 45th and 49th Streets, North Airport Road and 37th Street along the western border, extends to East South Airport Road on the southernmost border, then extends to the Madison County/Stanton County line to the eastern border and north along 558th Avenue.

 

Current land use

The existing land use is a mixture of commercial, agricultural, and industrially zoned land with pockets of office/service offerings, public/civic use, single family residential, and rural residential. The tract includes two major highways as well as oversized water and sewer infrastructure, which is favorable for industrial and commercial development.

 

Future land use

Future land use indicates an expansion of the industrial and commercial corridors along US Highways 81 and 275. Additionally, a large area within the western portion of the tract introduces a reserve for mixed commerce separating the industrial and commercial areas. The Elkhorn River Corridor as well as the Norfolk Regional Airport (public use) heavily dominate the southern portion of the tract. The Future Land Use map also indicates a large portion of land in the southern portion of the tract be rezoned as single family residential. This change is due to a major housing project recently introduced to the city. The entire tract offers optimal development opportunities, and the city has engaged multiple developers who have expressed interest in the area.

 

Information taken from City of Norfolk 2017 Comprehensive Plan Update