A new federal Opportunity Zone could help shape Fort Payne’s growth over the next decade, offering tax incentives to encourage private investment in businesses, housing and redevelopment.
The new Opportunity Zone, which takes effect Jan. 1, 2027, covers key commercial, industrial and redevelopment areas, including historic downtown Fort Payne, the northern Highway 35 corridor, Gault Avenue, Airport Road and the Exit 218 area.
The designation is significant because it allows investors to receive federal capital-gains tax benefits when they put money into qualifying businesses and real estate projects within the designated area.
That could make the difference in attracting private investment for projects that might otherwise struggle to secure financing, particularly in smaller communities competing for development dollars.
The Fort Payne zone also qualifies as a rural Opportunity Zone, making eligible investments potentially eligible for additional federal tax benefits.
The new designation also builds on DeKalb County’s broader economic development efforts. In May, the DeKalb County Economic Development Authority adopted its Elevate DeKalb strategy, a long-range plan focused on attracting investment, expanding industry, strengthening the workforce and positioning communities across the county for future growth.
From old mills to new opportunities
The designation creates opportunities across some of Fort Payne’s most recognizable commercial and industrial areas.
Potential projects include redevelopment of former hosiery mills, new industrial and distribution facilities, downtown mixed-use developments, hotels, multifamily housing and workforce housing.
The zone also includes city-owned redevelopment property along the 2nd Street corridor, where planning efforts have been conducted in partnership with the U.S. Environmental Protection Agency.
Existing industrial and employment properties along Airport Road and commercial buildings throughout historic downtown are also included.
Dr. Brett Johnson, executive director of the DeKalb County Economic Development Authority, said the area was selected because of its combination of existing infrastructure and development potential.
“This was our highest-ranked nomination because it combines existing infrastructure and employment with real opportunities for industrial expansion, commercial redevelopment, housing, hospitality, adaptive reuse and further downtown investment,” Johnson said.
“The designation itself does not create investment. Our goal is to identify projects, educate property owners and partners, and connect qualified opportunities with developers and investors who can use this tool.”
A competitive advantage for Fort Payne
The designation gives Fort Payne a new advantage in attracting private investment by offering federal capital-gains tax incentives for qualifying projects. Those benefits can also be combined with other development incentives, potentially making projects more financially feasible.
The DeKalb County Economic Development Authority identified the area as its top priority during a countywide review, and the U.S. Department of the Treasury subsequently certified the designation.
Over the next 10 years, the authority plans to work with property owners, developers and investors to turn those incentives into new businesses, housing and redevelopment projects.
For more information visit DeKalbEDA.com.
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