California webinar urges cities to pair tax-increment financing with Opportunity Zones 2.0 to attract private equity

Brian Coleman, project financing manager with the Governor's Office of Business and Economic Development, opened a May webinar on the state'led Opportunity Zones 2.0 nomination process and urged local governments to evaluate pairing tax'increment financing (TIF) districts with potential OZ nominations to strengthen projects'of'interest.

"The key to investing in TIF districts is to induce private investment," said Larry Cosmodont, chairman and CEO of Cosmont Companies, who delivered the webinar's first presentation. Cosmodont described how Opportunity Zones can motivate investors to commit long'term equity to qualifying census tracts, creating a valuation lift that TIF districts can capture and direct toward infrastructure and community improvements.

Cosmodont explained that TIF and OZ tools serve complementary roles: TIF captures incremental property tax value above a baseline into a dedicated fund for public improvements, while OZ equity can supply early'stage private capital that elevates project feasibility. "These work together," he said, noting jurisdictions that can show existing or planned TIF activity may be more competitive for state and federal grants.

The presentation broke down California district types most relevant to OZ pairing: enhanced infrastructure financing districts (EIFDs), climate resilience districts (CRDs), and community revitalization investment authority (CRIA) districts, each with different qualification rules and policy emphases. Cosmodont noted that some districts require affordable'housing set'asides and that formation typically takes months, while the financing authority and bond life can span decades.

Cosmodont urged local governments to first check whether their jurisdictions already have overlapping TIF districts and, if not, to map potential areas to match anticipated OZ 2.0 eligibility. He also recommended jurisdictions consider joint ventures with neighboring counties or special districts to strengthen grant competitiveness and shared investment strategies.

Why it matters: GO'Biz is planning to open a nomination window in mid'June through late'July, with the governor's office expected to submit nominees to the U.S. Department of the Treasury by the September 28, 2026, deadline. Cosmodont said that jurisdictions that have started or plan TIF activity should prioritize evaluating district formation and preparing a resolution of intent so they can demonstrate readiness during the state's short selection period.

Next steps: Cosmodont recommended cities and counties perform an initial TIF evaluation, prepare a resolution of intent to form a district where appropriate, and coordinate with grant teams to position applications for Prop 4 and other state and federal funding. Brian Coleman said GO'Biz will post the webinar recording and provide a web form for formal nominations and additional guidance.