Four Thurston County neighborhoods are in line for federal tax incentives aimed at drawing private investment into housing and commercial projects.
Gov. Bob Ferguson nominated the tracts for the Opportunity Zones 2.0 program on Oct. 8.
They cover the Capital Mall area and the Harrison Avenue Northwest corridor in Olympia, a section of central Tumwater that includes city hall, and the Midtown District in Lacey.
Together, the four tracts hold about 18,600 residents, roughly 6 percent of the county's population, according to data the Opportunity Zone Invest Research Team shared with The JOLT.
The U.S. Treasury has until Nov. 27 to complete its review, The JOLT reported, with a possible extension to Dec. 28.
If approved, the designations would take effect Jan. 1, 2027.
What the zones cover
In Olympia, one tract includes the Capital Mall Triangle, a roughly 288-acre subarea where the city approved higher building height limits and an affordable housing height bonus in 2025.
A second tract runs along the Harrison Avenue Northwest corridor, an area the city plan describes as home to many locally owned small businesses.
A small portion of that tract falls within Tumwater.
The Tumwater tract, centered on Israel Road Southwest near city hall and the Port of Olympia airport office, would be the city's first Opportunity Zone.
The city linked its application to brownfield revitalization, a goal in its strategic plan, The JOLT reported.
Renter neighborhoods
Renters make up 70 to 84 percent of households in the four nominated tracts, compared with 32 percent countywide, according to the research team.
Federal rules do not require job creation or include specific protections against tenant or small business displacement.
"These are renter neighborhoods. Whether a designation helps the people who live there now depends on local housing and (small business) policy, because the federal rules don't address it," the research team said.
Statewide picture
Ferguson's nominations covered 99 tracts across 27 counties and 17 tribal lands, selected from 152 applications, according to the Washington State Department of Commerce.
The state scored applications on a 185-point system that weighted market and investment readiness at up to 104 points, compared with no more than 21 for economic need.
The first-generation program, launched in 2018, spurred an estimated $100 billion in private investment nationwide, according to Commerce.
The state acknowledged it remains unclear how many jobs or how much investment resulted from that round.
What changes for existing zones
Downtown Olympia and two unincorporated county tracts received Opportunity Zone designations in 2018 but no longer qualify under the updated program.
Those designations expire Dec. 31, 2028. In Lacey, the Midtown District tract is the only Thurston County nominee that already holds a 2018 designation. If certified under the new program, it could continue as a zone through 2036.
The updated program requires annual reporting on investments by census tract, The JOLT reported. The original program lacked that public reporting.
Certification does not guarantee financing. No fixed amount of investment is allocated to any tract, and the Treasury reviews each nomination independently.
