This presentation gives an overview of the Centergy Opportunity Zone program as well as a brief overview of current opportunity zones.

1. OpportunityZones101
OpportunityZoneCommunitiesSummit
April 2019
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2. OPPORTUNITY
ZONES
Opportunity Zones are low income census tracts
nominated by governors and certified by the
U.S. Department of the Treasury into which
investors can now put capital to finance new
projects and enterprises in exchange for certain
federal capital gains tax advantages.
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3. 120
DESIGNATED
OPPORTUNITY
ZONES IN
WISCONSIN
 Created
Through the
TaxCutsAnd
JobsAct Of
2017
 Governor In
Each State
Designated Up
To25% of the
State’s Low-
IncomeCensus
Tracts as
Opportunity
Zones
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4. REGIONAL
OPPORTUNITY
ZONES
 Regional map image
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• Merrill
• Wausau (2)
• Stevens Point (2)
• Marshfield
• Wisconsin Rapids
• Port Edwards
• Nekoosa

5. MERRILL
5

6. WAUSAU
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7. STEVENS
POINT
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8. MARSHFIELD
8

9. WISCONSIN
RAPIDS
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10. PORT
EDWARDS
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11. NEKOOSA
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12. HOWIT
WORKS
Taxpayers
canget
capital gains
tax deferral
(& more)
Qualified
Opportunity
Funds
for making
timely
investments in
Qualified
Opportunity Zone
Business/Property
which
invest in
12
Graphic Source: Fikri, Kenan. Economic Innovation Group, “Opportunity Zone Program Overview.”
Opportunity Zone Program Conference. Denver, CO. June2018.

13. BUSINESS
BENEFITS
1. Increased Access to EquityCapital
2. DiscountedCapital for Businesses
3. Potential to Combine with OtherIncentives
 TIF
 Federal New MarketsTaxCredits(NMTC)
 State and Federal HistoricTaxCredits
 Wisconsin Economic DevelopmentCorporation
(WEDC) and other StateTaxCredits
 State and Federal HousingTaxCredits
13

14. COMMUNITY
BENEFITS
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 Injection of Resources
 IncreasedTaxBase
 Expanded JobOpportunities
 Attraction of New Businesses & Start-Ups
 LoweredTIFDemands

15. WHATARE
CAPITALGAINS?
 A Capital Gain is a rise in the value of
a capital asset (such as an investment or real
estate) that gives it a higher worth than the
purchase price.
 The gain is not realized until the asset is sold.
 Gains may be short-term (one year or less) or
long-term (more than one year) and must be
claimed on income taxes.
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16. INVESTOR
BENEFITS
1. Gain Deferral
Temporary deferral of inclusion for any capital gains
tax on money reinvested into an OpportunityFund.
2. Partial Forgiveness
Up to 15% reduction in capital gains tax obligation
due to a step-up in basis if the investment is held in
the Opportunity Zone for 5 to 7years.
3. Exemption from AdditionalGains
Permanent exclusion from taxable income of
capital gains from the sale or exchange of
Opportunity Fund investment if that investment is
held for at least 10 years.
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17. CORE
ELEMENTS
Zones:
States and territories designated up to 25 percent of Low-Income
Community Census tracts in their state to be certified by Treasury
as OpportunityZones.
Funds:
Opportunity Funds are self-certified investment vehicles
organized as corporations or partnerships for the purpose of
investing in qualifiedOpportunityZone assets. All investments
that seek to take advantage of the provision must flow through
Funds.
Investments:
Funds make equity investments into businesses and property in
OpportunityZones. Qualified assets are the stocks of qualified
companies, interests of qualified partnerships, or direct
ownership of qualifying tangible property.
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18. OPPORTUNITY
FUNDS
Opportunity Funds are private sector investment
vehicles that invest at least 90 percent of their
capital in OpportunityZones.
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19. OPPORTUNITY
FUNDS
 Self-Certification Process – No IRSApprovalRequired
 Opportunity Funds must be Formed as Corporationsor
Partnerships
 Individuals with Capital Gains can Create theirown
Opportunity Fund
 Real Estate Developers canCreate ProjectSpecific
Opportunity Funds
 Large Institutions are Creating Multi-investor/Multi-asset
Opportunity Funds
 All Funds Must Pass AssetsTest – 90% of Assets mustbe
Invested in Qualified OpportunityZoneProperty
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20. THEPLAYERS
Who Is Creating And Managing OpportunityFunds?
 Banks & Financial Institutions
 Real Estate Developers
 FinancialServices
 PublicAccountingGroups
 Municipalities
 Non-profits/InterestGroups
 Individuals
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21. OPPORTUNITY
FUND
INVESTMENTS
 FocusedOn Equity – RatherThanDebt
 ThreeTypes ofQualifiedOpportunityZone
Property
 Stock
 Partnership Interest
 Tangible Business Property
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22. TYPES OF
POTENTIAL
INVESTMENTS Commercial Real
Estate
Development and
Renovation in
OpportunityZones
Opening New
Businesses in
Opportunity
Zones
Expansion of
Existing
Businesses Into
Opportunity
Zones
Large Expansions
of Businesses
AlreadyWithin
Opportunity
Zones
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Graphic Source: Fikri, Kenan. Economic Innovation Group, “Opportunity Zone Program Overview.”
Opportunity Zone Program Conference. Denver, CO. June2018.

23. OPPORTUNITY
FUND
INVESTMENTS
 QualifiedOpportunity ZoneBusiness
 A business that owns or leases substantially all (70 %)
of its tangible property in Qualified Opportunity Zone
Business Property.
 Must also generate at least 50 percent of its total gross
income from active business conduct with a
substantial portion of the intangible property of the
business used in the active conduct of any such
business.
 Less than 5 percent of the average of the aggregate
unadjusted bases of the property can be attributable
to nonqualified financial property.
 Additionally, private clubs, golf courses, and certain
vice businesses are not eligible for investment by an
Opportunity Fund.
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24. ALLOWABLE
INVESTMENTS:
TANGIBLE
BUSINESS
PROPERTY
Opportunity Zone Business Property is tangible
property acquired after Dec. 31, 2017 that is used in a
QualifiedOpportunity Zone trade or businessand
either the use of the property in the Qualified
OpportunityZone originates with the fund, or the
fund substantially improves the property.
 Substantially Improves: Measured by the
Opportunity Fund’s additions to the adjusted basis of
the building
 Does not include land
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25. INVESTMENT
EXAMPLE
Source: Economic Innovation Group, “The Tax Benefits of Investing in Opportunity
Zones,” January 2018.
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26. EQUIVALENT
PRE-TAX ROI
COMPARISON
Opportunity
Zone
Standard
Investment
7% 10.5%
4.3% 7%
2.9% 5%
Opportunity Zones allow investors to accept
lower annual returns to achieve the same
post-tax value per dollar invested.
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27. WHAT’SNEXT?
 First IRS Guidance ReleasedOct. 19,2018
 More interpretation and clarification expectedApril
2019
 Solidify the ProgramTimeframe
 PrepareCommunityProspectus
 Create Companion IncentivePrograms
 Identifying Potential Projects
 EstablishingOpportunityFunds
 CreativeOpportunity ZoneDeals
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28. OPPORTUNITY
ZONE
TIMELINE
*PERCURRENTIRS
GUIDANCE
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Deadline for 15% Increase in Basis
(7 YearBenefit)2019
2021
2026
2047
Deadline for 10% Increase in Basis
(5YearBenefit)
Deadline to PayTax on DeferredGain
Can Continue to Hold Investment
in Opp. Zone until Dec. 31,2047

29. www.wheda.com/opportunity-zones
Wisconsin Housing and Economic DevelopmentAuthority
https://Inwisconsin.com/doing-business-in-
wisconsin
Wisconsin Economic DevelopmentCorporation
www.acceleratorforamerica.com/OZGuide
Accelerator forAmerica
www.ncsha.org
NationalCouncil of State HousingAgencies
www.novoco.com
Novogradac
USEFUL
RESOURCES

30. CONTACTS
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Gordon Crow, IOM
Executive Director
Centergy
Gcrow@centergy.net
715.551.6650
Scott Harrington,AICP
Principal Planner
Vandewalle &Associates
SHarrington@Vandewalle.com
608-255-3988
Barb Fleisner LaMue,CEcD,EDFP
Vice President, Business & Community Development
Wisconsin Economic DevelopmentCorporation
Barb.lamue@wedc.org
608.210.6760
KateWolf
Business and Community EngagementTechnical Officer
Wisconsin Housing and Economic DevelopmentAuthority
kate.wolf@wheda.com
(414) 227-2291