Downtown Stockton is an Opportunity Zone!
Opportunity Zone benefits include:
- temporary deferral: An investor can defer capital gains taxes until 2026 by putting and keeping unrealized gains in an Opportunity Fund.
- A reduction: The original amount of capital gains on which an investor has to pay deferred taxes is reduced by 10% if the Opportunity Fund investment is held for 5 years and another 5% if held for 7 years, for a total of 15%.
- An exemption: Any capital gains on investments made through an Opportunity Fund accrue tax-free as long as the investor holds them for at least 10 years. For investments maintained longer than 10 years and upon a sale or disposition of the investment, the investor is allowed to elect the basis in the investment to quality to the fair market value of the investment.
The City of Stockton provides financial incentives to eligible parties interested in developing new market-rate residential, commercial, or mixed-use projects in Downtown Stockton.
To qualify, projects must meet these criteria:
- Develop a minimum of 35 new market-rate residential units and/or develop a minimum of 30,000 square feet of new, or newly renovated, retail or commercial space
- Be located within the program boundary, which includes Center Street to the west, Park Street to the north, ACE Rail/Union Pacific Railroad to the east, and Washington Street to the south Program Boundary Map
- Make a capital investment of at least $500,000
- Eligible public infrastructure improvements must equal $100,000 or more
Before beginning any new construction, rehabilitation, renovation, conversion, or other project, investors should schedule a meeting with the City of Stockton’s Economic Review Committee, which is made up of representatives from various City departments, such as building, planning, fire, etc.
The Economic Review Committee allows each of the City representatives to comment on the project and to provide answers to questions about topics
such as: zoning, use permits, and public improvements. It provides investors with a good sense of what is necessary to smoothly navigate through the permitting and development process in the City of Stockton.
The City offers a Façade Improvement Forgivable Loan to enhance the exterior of commercial, nonresidential properties (including nonprofit groups) located within Downtown, South Stockton, North Stockton, and Midtown.
Application fee: $525
The City of Stockton also has a Short-term Non-residential Public Facilities Fee and Mitigation Fee Deferral Program, which provides short-term relief from upfront development costs, specifically impact fees, until construction has been completed and the building is ready to occupy.
The City of Stockton has a fee deferral program for commercial and industrial buildings.
There is a 5-year program and a 10-year program.