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STEUBENVILLE -- Local leaders see Steubenville and Mingo Junction's newly awarded "federal opportunity zone" status as a chance to spark development and create jobs in a county where both are badly needed.
Opportunity zones are economically distressed census tracts where private investors get tax incentives designed to encourage outside investments that will support housing development, business expansion, job creation and community revitalization. The latest iteration of the program, Opportunity Zone 2.0, will be in effect beginning Jan. 1, 2027 through Dec. 31, 2036.
"It shows what can occur when we work collectively toward a common goal, and it should become more of a model that we use moving forward," Port Authority Executive Director Robert Naylor said Friday.
"It's because of the collaboration that occurred between the city of Toronto, Mingo Junction, Brooke-Hancock-Jefferson Metropolitan Planning Commission, Steubenville, the port authority and the board of commissioners," Naylor added. "Toronto had two census tracts that (could have applied) but the mayor said, 'I don't see how this could benefit us' and took the unselfish act and (stepped aside). We had the mayor of Mingo Junction, Judy Ruckman, say, 'If you only nominate three, even if you put us third we'd understand'. People were willing to sacrifice and be selfless in their approach if it would benefit Jefferson County."
*Steubenville's Opportunity Zone 2.0 tract includes much of Historic downtown Steubenville -- including the University Boulevard corridor and most of the Ohio River waterfront in Steubenville, including the marina. It extends northward almost to State Route 213, Naylor said.
*Mingo Junction's tract encompasses the entire village and extends to part of the southern end of Steubenville, though it doesn't include the Tidewater property or south end of the city.
"I'm extremely excited," Mayor Ralph Petrella said. "We have so much happening in the selected area currently -- this adds to our city's momentum and will certainly help entice more development."
Petrella says the designation means "developers and investors will have more advantages to succeed" in both communities.
"This adds so much value to recruit to our city and really showcases the work that is already being done," Petrella added. "I'm grateful for the collaboration and the belief in our city this shows from our state and federal partners."
Ruckman said she too, is excited "about what this designation could mean for Mingo Junction and the entire Ohio Valley."
"When investment and opportunity come to one community, the benefits can reach neighboring towns, helping our whole region grow," she said. "For Mingo, this could mean bringing vacant buildings back to life, supporting local businesses, attracting visitors, and creating jobs from construction and renovation to permanent positions in new and expanding businesses. My hope is that it gives our residents more opportunities to build a future close to home.
"Nothing is guaranteed, and there will be challenges along the way," Ruckman added. "But this is an opportunity to build on our strengths, work together across the Valley, and turn that potential into lasting benefits for our communities. I'm hopeful and excited about what's ahead."
City Manager Mike Johnson said the site selections are the culmination of a "collaborative and thoughtful nomination process that brought together local and county partners to identify the census tracts best positioned to benefit from Opportunity Zone designation."
"An Ohio Opportunity Zone designation is an economic development incentive intended to attract private investment into communities that need additional business development, housing, jobs, and property redevelopment," Johnson said. "For Steubenville and Jefferson County, (it's) particularly significant because it creates another way to attract outside investors and finance projects that might otherwise struggle to get funding."
Johnson, who served on the committee, also applauded the "collaborative effort to select the best census tracts for Jefferson County" spearheaded by the Port Authority and included Jefferson County Commissioners, the mayors of Toronto and Mingo, the BHJ, Steubenville's economic development consultant and his office.
He said earning the designation creates opportunities in several areas, pointing out the investment community "may be more interested in purchasing and redeveloping vacant commercial properties."
Johnson said downtown revitalization could look like historic buildings becoming restaurants, retail stores, offices, apartments and mixed-use developments. Developers could also realize additional financial incentives for building or rehabilitating housing, while qualified businesses and real estate projects may attract investment capital.
He said other benefits include job creation -- new businesses and construction projects can create employment opportunities -- as well as property redevelopment since vacant, abandoned, or under-utilized properties may become more attractive to investors.
Councilman Tracy McManamon, chair of council's finance and economic development committees, said they've "been working very hard over the last several months and had input from many stakeholders."
"We do have developers that are interested, although it's very much at the early stage," he said, adding the city's economic development director and consultant Jason Hamman, their grant consultant Aspire and Ohio Mid-Eastern Governments Association also assisted.
BHJ Executive Director Mike Paprocki said investments in a qualified opportunity zone (QOZ) center around three federal capital gains tax incentives designed to encourage long-term private investment in economically distressed communities--capital gains tax deferral, tax reduction and tax free appreciation."
"Opportunity Zones offer tax benefits to investors who elect to temporarily defer tax on capital gains if they timely invest those gain amounts in a Qualified Opportunity Fund," Paprocki said. "Investors can defer tax on the invested gain amounts until there is an event that reduces or terminates the qualifying investment in the QOF or Dec. 31, whichever is earlier.
Naylor said the Port Authority and board "are very happy with the selections, we appreciate being selected."
"Now the process turns to identifying projects and finding sources of capital under a qualified rural opportuity fund which can either be invested in business, infrastructure or projects in both census tracts," he said.
The only downside, he said, would be "if we don't identify projects and don't seize the opportunity in front of us."
"We need to work collectively," Naylor said. "We also need to remember the Ohio River Commission was formed and Congress is considering priority maritime zones -- although the legislation is not completed, we've been told it will be patterned after Opportunity Zones and could get some designations to add to the capital stack for future projects. This could be the start of really good things."
The DeWine administration nominated 260 census tracts in Ohio for consideration and all 260 were approved by the U.S. Department of the Treasury.