HomeMy WebLinkAbout2019-10-16 19-405 Order
10/16/201919-405
10/16/2019
19-405
Community & Economic Development
Order
N/A
Title, Order
Authorizing Execution of a Contract with Ac8ia Capital Management, LLC for Opportunity Zone Fund Creation
and Implementation
This order will authorize a contract with Ac8ia Capital Management, LLC for the creation and
implementation of an Opportunity Zone Fund and program in the City of Bangor. In 2017, the
Opportunity Zone program was established by Congress to provide financial incentives for
disadvantaged areas to attract capital investment. Specifically, Opportunity Zones provide a tax
incentive for investors to re-invest their unrealized capital gains into dedicated Opportunity Funds.
The tax incentives offered under the Opportunity Zone require a level of knowledge and expertise
beyond typical municipal incentives. Ac8ia Capital Management, LLC is a local capital management
firm qualified to administrate Opportunity Zone projects and funds. For that reason, staff feels it is in
the best interests of the City of Bangor to hire Ac8ia Capital Management, LLC to establish an
Opportunity Zone program, including an Opportunity Fund, to attract investment to the City. This
order authorizes the contract and a fee of $50,000 to be paid to Ac8ia Capital Management, LLC for
the establishment and management of the fund for a minimum of 10 years.
Business & Economic Development Committee
10/08/2019
Recommend for passage
50
New Business
10/16/201919-405
CITY OF BANGOR ORDER
10/16/2019
19-405
Tremble
Authorizing Execution of a Contract with Ac8ia Capital Management, LLC for Opportunity Zone Fund Creation
and Implementation
Whereas; the City of Bangor has a federally-designated Opportunity Zone census tract; and
Whereas; the Opportunity Zone program was established in 2017 by Congress to improve the ability of
disadvantaged areas to attract investment; and
Whereas; Opportunity Zones provide a tax incentive for investors to re-invest their unrealized capital gains
into dedicated Opportunity Funds; and
Whereas; Ac8ia Capital Management, LLC is a local capital management firm qualified to administrate
Opportunity Zone projects and funds; and
Whereas; it is in the best interests of the City of Bangor to hire qualified professionals to establish an
Opportunity Zone program, including an Opportunity Fund, to attract investment to the City; and
Whereas; the City of Bangor will use $50,000 to engage in the contract with Ac8ia Capital to create and
manage an Opportunity Zone program for the City; therefore:
Be it Ordered by the City Council of the City of Bangor that the City Manager is authorized to execute a
contract with Ac8ia Capital Management, LLC for creation and management of the City of Bangor's
Opportunity Zone program.
IN CITY COUNCIL
OCTOBER 16,2019
CO 19-405
MOTION MADE AND SECONDED FOR PASSAGE
PASSED
CIT CLE