PEORIA (25News Now) – Parts of the Peoria area have been selected as Illinois’ new Opportunity Zones, a designation local economic leaders say could help attract private investment and redevelopment in the years ahead.
The program offers federal tax incentives to encourage investors to finance qualifying projects in designated low-income census tracts. The goal is to bring new investment into areas targeted for economic growth.
Nine census tracts across the Greater Peoria area were selected, including seven in the City of Peoria and one each in Creve Coeur and Pekin. According to the Greater Peoria Economic Development Council, the designation could help communities compete for future projects by giving investors another financial incentive to invest in the region.
“The goal of the program is to drive private capital into low-income areas,” Greater Peoria Economic Development Council CEO Chris Setti said. “There is a series of tax benefits to the investor if they deploy private capital into projects that are in low-income census tracts.”
Setti said the designation is best suited for projects like apartment developments, commercial redevelopment and business expansion rather than individual single-family homes. He said communities can use the designation as another tool when recruiting developers and private investment.
In Peoria, areas including downtown, the Warehouse District and parts of the riverfront are among those that could benefit from future investment opportunities, according to Setti. He said the designation could make redevelopment projects more attractive to investors without creating additional costs for local taxpayers.
“It’s all part of having the right mix of tools that are available to make good things happen in a community,” Setti said. “What’s nice about this one is that it doesn’t cost local taxpayers or local communities anything.”
The new Opportunity Zone designations are part of a statewide initiative announced by the Illinois Department of Commerce and Economic Opportunity. State officials say the program is intended to encourage long-term private investment in communities with redevelopment potential.
