Jefferson City downtown designated Opportunity Zone
JEFFERSON CITY, Mo. (KMIZ)
A portion of downtown Jefferson City has been approved for a federal program designed to attract private investment through tax incentives.
The Missouri Department of Economic Development announced that all 131 census tracts nominated by the state have been approved for the federal “Opportunity Zones 2.0” program.
An Opportunity Zone is a federally designated area where investors can receive tax benefits for reinvesting capital gains into qualifying businesses or real estate projects. Those incentives can include tax deferrals on the original gains, a reduction in the taxable amount after five years and tax-free appreciation on qualifying investments held for at least 10 years.
According to a map from the U.S. Department of Housing and Urban Development, the approved tract encompasses much of downtown Jefferson City. It stretches north to south from the Missouri River to just beyond the Rex M. Whitton Expressway, and west to east from Highway 54 to near Ellis-Porter Riverside Park.
The tract includes the site of Jefferson City's proposed conference center at the corner of East Capitol Avenue and Madison Street.
Documents from the developer show the project is expected to include about 30,000 square feet of conference space, a 215-room hotel and a 567-space parking garage, with an estimated cost of about $145 million.
Most of the project's funding is expected to come from revenue bonds, which would be repaid using money generated by the hotel and conference center, the city's 7% lodging tax and public parking.
The city has also received $15 million in state funding and about $11.2 million in lodging tax revenue for the project. Developers also plan to raise up to $8 million through a state program that offers tax incentives to people who contribute to public projects.
The conference center isn't the only development planned or underway in the area.
Several public and private projects along East Capitol Avenue include renovations, new construction and plans for additional housing.
The Missouri Chamber of Commerce is renovating its headquarters at 428 E. Capitol Ave., while the Missouri Association of Counties is renovating the former Buescher Funeral Home at 429 E. Capitol Ave. to serve as its new headquarters.
Capitol Castle LLC, owned by state Sen. David Gregory (R-St. Louis) plans to build a castle-inspired home at 401 E. Capitol Ave. Gregory's proposal calls for a two-story stone house with a basement he plans to lease out. Gregory and his family would occupy the upper floors during legislative sessions.
GKS Management LLC owns vacant lots at 405, 407, 409, 517 and 519 E. Capitol Ave. and plans to develop residential housing on the properties.
At 501 E. Capitol Ave., owners of Ivy Terrace are renovating the building. Owner Deb Sacilowski said Ana Marie's Bridal plans to move into the building from East High Street by the end of the year. The basement is also being converted into an event space with a speakeasy-style atmosphere.
Another company, 526 Octoplex LLC, plans to build a duplex at 528 E. Capitol Ave. The company is also renovating 526 E. Capitol Ave. into a nine-unit residential building and redeveloping 208 Marshall St. into a 25-unit apartment building.
While the designation is intended to attract additional investment, it's unclear now whether any of the projects already planned or underway will use Opportunity Zone incentives.
The Opportunity Zone designation takes effect Jan. 1, 2027, and will remain in place for 10 years.
Check back for updates to this developing story.
