1. Regional Opportunity Zones Initiative
Stephen Brooks JD, LL.M
Principal, Pilot Management Resources

2. OBJECTIVES:
Provide platform that development agencies, local businesses, and other community stakeholders can provide to project sponsors, that will source local investment proposals directly to Opportunity Funds
2. Create a network that allows communities to build and fund portfolios of projects, both locally and across jurisdictions
Pilot Management Resources

3. Who Participates in the Process
“Facilitator”
Distributes information about OZs to local networks – “builders, bankers, brokers” – and directs Sponsors to the online Platform.
Facilitator is not responsible for reviewing proposals, entering project data, or otherwise managing the Initiative process.
“Sponsor” submits investment proposal information to online platform and interfaces with Initiative Manager.
“Initiative Manager” reviews proposals, identifies investor-ready proposals, links investable projects with OZ funders, manages online Platform and Process.
Pilot Management Resources

4. Process Flow Facilitator Sponsor Online Platform Status Review
Distribute OZ information through local networks; Direct Sponsors to Platform
Facilitator
Uploaded Information routable to EDO
Sponsor
Enter Proposal Information on Platform
Online
Platform
Information can be routed to EDO
Initiative Manager Reviews project to
identify status of proposal
Status Review
1. Is Proposal OZ qualified
2. What is the Project Type?
3. Is the Proposal at a stage to attract equity?
Report to Sponsor
if NO
if YES
O Zone Fund Managers
Pilot Management Resources

5. 2. Portfolio Development
Program

6. Portfolios are not limited to OZs
The Initiative will create and fund portfolios of projects, both locally and across jurisdictions, by leveraging the “human network ” of Facilitators and the online platform.
Portfolios are not limited to OZs
Pilot Management Resources

7. Two Scenarios
Fund Managers provide term sheets for project types, which are circulated statewide through the Facilitator network. Local jurisdictions direct relevant projects to the online platform, where they are aggregated and presented to the Fund Manager.
Local stakeholders identify a “product” that addresses common needs across jurisdictions. Projects based on the product are assembled and syndicated to investors.
Pilot Management Resources

8. Process Flow – Portfolio Development
(NOT LIMITED TO OZs)
Oregon OZ
Initiative Manager
1. Project Specifications– Either from external source (e.g. Enterprise) or developed internally
Facilitator
Facilitator
Facilitator
Facilitator
2. Proposed projects submitted to Platform
Online
Platform
Funding
Sources
Project
Portfolio
3. Initiative Manager builds portfolio of projects meeting specifications
Broker/
Syndication
Pilot Management Resources

9. OZ Fund Investment Examples
Businesses – 70% of business assets located in O Zone; 50% of gross income from active conduct of business in OZ. (No “sin businesses.”)
Real Estate –Tangible property acquired after Development of new building, or “substantial rehabilitation” of existing building. “Substantial Rehabilitation”: Rehab expense must at least equal purchase price for building (not including land cost). Residential, commercial, manufacturing, hospitality, etc.
Public-Private Partnerships: Revenue-producing infrastructure Investments or private development of public facilities.
“Innovation Centers” – Operating space and technology backbone emerging growth companies. Can combine building investment with business investment: venture capital, angel funds, University sponsored start-ups.
Stacking Programs with O Fund – O Zone Investment coupled with additional tax incentive, such as NMTCs, Historic Tax Credits or Low- Income Housing Tax Credits.
Pilot Management Resources

10. Accessing the Platform: www.theopportunityexchange.com/OregonOZ/submit
Program Manager
Stephen Brooks:
Pilot Management Resources