Governance Project

ALLEVIATING SYSTEMIC POVERTY IN ECONOMICALLY DEPRESSED COMMUNITIES.

LEVERAGING OPPORTUNITY ZONES:TO ADDRESS POVERTY CREATED BY ECONOMIC DEPRESSION IN COMMUNITIES IN NEED ACROSS THE COUNTRY, TGP SEEKS TO FOCUS ON O-ZONES AS A MEANS TO BRING ECONOMIC OPPORTUNITIES TO IMPOVERISHED AREAS. O-ZONES ARE A NEW, LITTLE-KNOWN PART OF THE INTERNAL REVENUE CODE THAT PROVIDE UNPRECEDENTED INCENTIVES TO REVITALIZE IMPOVERISHED COMMUNITIES THROUGH ECONOMIC DEVELOPMENT. O-ZONES ARE APPROVED BY THE U.S. DEPARTMENT OF TREASURY'S COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND AS ECONOMICALLY-DISTRESSED AREAS. TO DATE, ALL FIFTY GOVERNORS HAVE DESIGNATED (CONTINUED ON SCHEDULE O) THOUSANDS OF O-ZONES THROUGHOUT THE COUNTRY - FROM RUST BELT CITIES TO RURAL AREAS TO PARTS OF LARGE URBAN CENTERS. NOW THAT ALL FIFTY STATES HAVE DESIGNATED O-ZONES, MANY STATE AND LOCAL GOVERNMENTS ARE LOOKING FOR MODEL APPROACHES TO BRING ECONOMIC DEVELOPMENT TO THESE ZONES. THE OPPORTUNITY FOR THESE LEADERS AND THEIR COMMUNITIES TO UTILIZE THIS FEDERAL TAX INCENTIVE IN ORDER TO ALLEVIATE POVERTY AND COMBAT COMMUNITY DETERIORATION WITHIN O-ZONES WILL DEPEND ON THE MATCHING OF SUPPLY AND DEMAND FOR CAPITAL. TGP WILL PARTNER WITH A GROUP OF HIGH-IMPACT, RESULTS-ORIENTED GOVERNORS AND MAYORS TO PROVIDE ANALYTICS, DEVELOP O-ZONE STRATEGIES, AND ATTRACT CAPITAL INTO THESE AREAS. OUR GOAL WILL BE TO CONSTRUCT A PORTFOLIO OF SUCCESSFUL O-ZONE MODELS, WHICH CAN THEN BE SHARED WITH, AND IMPLEMENTED BY, O-ZONE COMMUNITIES ACROSS THE COUNTRY. TGP WILL FIRST CONVENE GOVERNORS AND OTHER STAKEHOLDERS TO DEVELOP MODEL APPROACHES. TGP WILL THEN PRODUCE NEW RESEARCH IDENTIFYING WAYS THAT STATES CAN LEAD THE WAY ON O-ZONES. TGP'S CONSULTANTS INCLUDE SOME OF THE FOREMOST EXPERTS IN ANALYSIS AND EXECUTION AROUND COMMUNITY ECONOMIC DEVELOPMENT. OUR ANALYTICAL WORK IS LED BY RECOGNIZED ECONOMIC DEVELOPMENT THOUGHT LEADERS BRUCE KATZ AND JEREMY NOWAK (AUTHORS OF THE NEW LOCALISM, 2018). FROM THESE ACTIVITIES, TGP BELIEVES THERE WILL BE TANGIBLE LESSONS LEARNED FOR O-ZONE COMMUNITIES, GIVING RISE TO MODEL APPROACHES THAT CAN BE SCALED AND APPLIED BY ELECTED OFFICIALS IN O-ZONES THROUGHOUT THE NATION. IN SHORT, TGP AIMS TO UTILIZE NEW AND INNOVATIVE ANALYSIS TO HELP CIVIC LEADERS IMPLEMENT SUCCESSFUL O-ZONE STRATEGIES THAT WILL GENERATE ECONOMIC GROWTH, LEADING TO REDUCED POVERTY AND COMMUNITY DETERIORATION IN O-ZONE COMMUNITIES. TGP WILL ALSO DEVELOP A MODEL COMMUNITY-BASED INVESTMENT APPROACH IN O-ZONE COMMUNITIES IN MIDDLE AMERICA. TGP WILL START WITH AN "O-ZONE INVESTMENT PROSPECTUS" (OZIP) IN SOUTH BEND, IN, LOUISVILLE KY, AND OKLAHOMA CITY, OK, AND CONVENE KEY STAKEHOLDERS IN THESE AREAS TO HELP LAY THE GROUNDWORK FOR CAPITAL INVESTMENT IN EACH OF THESE CITIES. TGP WILL FOCUS NOT ONLY ON HELPING THESE COMMUNITIES DEVELOP O-ZONE STRATEGIES, BUT ALSO IN HELPING THEM ATTRACT CAPITAL. AS SUCCESSFUL INVESTMENT MODELS EMERGE, TGP WILL HELP TO ACTIVELY MATCH O-ZONE INVESTMENT PROJECTS WITH O-FUND INVESTORS THROUGH THE IMPLEMENTATION OF AN O-ZONE FUND. THE O-ZONE FUND, A JOINT VENTURE BETWEEN TGP AND OTHER FOR-PROFIT, NONPROFIT, AND INDIVIDUAL CO-INVESTORS, WILL PLAY THE ROLE OF "LEAD INVESTOR" TO DIRECTLY ATTRACT INVESTMENTS INTO O-ZONES. TGP WILL CONTROL THE FUND WITH AT LEAST 50% VOTING POWER, AND THE FUND'S GOVERNING DOCUMENTS WILL REFLECT A CHARITABLE PURPOSE OF REDUCING POVERTY WITHIN O-ZONE COMMUNITIES. ALL INVESTORS IN THE FUND WILL SHARE IN THE PROFITS AND LOSSES IN PROPORTION TO THEIR INVESTMENTS. TGP HAS ADOPTED A JOINT VENTURE POLICY TO GOVERN ITS DECISION-MAKING WITH RESPECT TO THE FUND AND ANY OTHER CO-INVESTMENTS WITH NON-CHARITABLE ENTITIES AND INDIVIDUALS, IN ORDER TO PROTECT TGP'S CHARITABLE PURPOSE.