Loading...
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