A stretch of southwest Renton and neighboring Tukwila could become a federal Opportunity Zone next year. Gov. Bob Ferguson nominated 99 communities across Washington for the Opportunity Zones 2.0 program, including the joint Renton-Tukwila area, the Renton Reporter reported. The governor's office announced the list earlier this month.
Opportunity Zones give investors a federal tax break when they put money into real estate development and businesses in lower-income areas. The governor's announcement says the first round, launched in 2018, spurred an estimated $100 billion in private investment nationwide.
The Renton-Tukwila area
The nominated tract runs into the southwest part of Renton and was put forward with the City of Tukwila. It takes in the headquarters of Alaska Airlines and the Sounders FC. The Reporter describes it as an "employment center" with room for more than 25,000 more jobs and 5,000 housing units, along regional transportation corridors.
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City leaders pitched it as a place where investment could speed up medical, housing and mixed-use projects, and become an affordable, transit-friendly district.
"This nomination strengthens our ability to engage developers and accelerate key projects across the region," Renton Mayor Armondo Pavone said. "We look forward to collaborating with Tukwila to promote this opportunity and support continued economic development."
What happens next
The nomination isn't final. The U.S. Treasury Department has to review and certify every state's list. Designations would take effect Jan. 1, 2027, and a certified Opportunity Zone 2.0 area keeps its status through Dec. 31, 2036.
The 99 Washington areas were picked from 152 applications. The state Department of Commerce says it expects strong demand for sites inside the new boundaries and is urging investors to line up plans before January so money can move early in 2027.
Neighbors on the list
Renton and Tukwila aren't alone in South King County. Kent got five nominated areas, from the West Hill near the new light rail station to the Kent Valley warehouse district and downtown. Federal Way's nomination covers its downtown core around the Federal Way Downtown light rail station and Town Square Park.
For Renton and Tukwila, the zone sits on top of an area already full of big employers. Whether the tax break brings new apartments, clinics or mixed-use buildings will depend on investors once the Treasury signs off.
Sources
- Kent, Federal Way and Renton get Opportunity Zone nominations, Renton Reporter
- Governor Ferguson selects 99 Opportunity Zones to encourage private investment, Office of the Governor
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