Governor Ferguson Nominates Five Kent Tracts for Opportunity Zone Designation

KENT, Wash. - Governor Bob Ferguson nominated five areas in the City of Kent for federal Opportunity Zone designation. The City of Kent sites were a handful of the 99 nominations made statewide, giving the City a new tool to attract private investment, support business growth and create jobs.

The Governor's nominations followed a competitive statewide application and review process led by the Washington State Department of Commerce. Opportunity Zones are lower-income areas where qualifying investments may receive federal tax benefits designed to encourage long-term private investment.

"Kent is a city that builds things, moves things and creates opportunities for people to realize a better life," Mayor Dana Ralph said. "Having our five proposed areas nominated sends a powerful message that Kent is open for business and ready for investment. We want entrepreneurs to invest here, companies to grow here, and employers to continue creating good jobs right here in our community."

The designation gives Kent another economic development tool without using City or state tax dollars. It could help attract aerospace and advanced manufacturing businesses, bring new investment to commercial areas, support existing businesses and help housing projects move forward.

For Kent, the goal is also to ensure that economic growth creates opportunities for the people who live and work here. The City's application highlighted its partnerships with nonprofit community lenders, its planning efforts and its commitment to workforce development.

"Economic development matters because of what it can mean for working families," Ralph said. "When we attract investment to Kent, we have an opportunity to create family-wage jobs, strengthen local businesses and expand the economic foundation that supports our entire community. We want growth that brings opportunity for the people who already call Kent home while opening the door for the next generation of businesses and workers. This designation also recognizes the investments we've made and our commitment to ensuring that economic growth benefits everyone through workforce development and support for small businesses."

Opportunity Zones Build on Kent's Vision for Growth

Kent's five nominated areas cover several parts of the city, each with different opportunities for growth. Together, they reflect years of community planning and City investment.

West Hill and Midway: The designation could help attract investment for new housing and mixed-use projects near light rail and transit, building on the City's plans for growth in Midway.

Kent Valley: Investment could help modernize older warehouses and industrial buildings, creating space for advanced manufacturing and other growing industries. It may also support new renewable energy technologies.

East Hill: The nominated area includes properties near Kent-Meridian High School and the former Fred Meyer site. The designation could help bring new businesses, housing and services to properties that have struggled to attract investment.

Downtown and Central Avenue: Older buildings, polluted land, lower rents and high construction costs can make redevelopment difficult. Opportunity Zone benefits could help attract investment to improve these properties and strengthen Downtown and Central Avenue.

The nominations support major City plans, including the Midway Subarea Plan, Rally the Valley industrial planning and Kent's Downtown Regional Growth Center. They also build on the City's work to prepare the Kent Manufacturing Industrial Center for business expansion, including opportunities near the Puget Sound Energy substation.

"We have spent years doing the planning and making the infrastructure investments that position these areas for growth," Ralph said. "Opportunity Zones can help connect that public groundwork with the private capital needed to turn plans into projects, bring underutilized properties back to life and create new opportunities for businesses, workers and families throughout Kent."

A Team Effort

Kent's successful application was the result of months of work by the City's Economic Development Department, which worked with businesses, property owners and regional partners to show why Kent is ready for investment.

"I am incredibly proud of our Economic Development team and the tireless work they put into this effort," Ralph said. "Getting all five of our nominations through a competitive statewide process did not happen by accident. It took research, strategy, collaboration and a compelling case for why investment in Kent is an investment in Washington's economy."

The city also thanks its community and regional partners for their support. Their efforts helped show how investment in Kent can create jobs, expand housing opportunities and strengthen the regional economy.

Kent will now work with businesses, property owners, developers, investors and regional partners to promote the nominated areas and attract new investment.

The Governor has submitted the nominations to the U.S. Department of the Treasury as part of the federal designation process. The new Opportunity Zones are expected to be ready for qualifying investment beginning January 1, 2027.

"This is really about Kent's future," Ralph said. "We have the workforce, the location, the infrastructure and the businesses that make this community an economic engine for our region. Opportunity Zone designation gives us another tool to build on those strengths, attract investment and keep Kent growing."

About Opportunity Zones

Opportunity Zones are federally designated areas intended to encourage private investment in communities that need it. Investors who make qualifying long-term investments may receive federal tax benefits. The next generation of Opportunity Zone designations takes effect in 2027.

For more information, visit the Washington State Department of Commerce Opportunity Zones webpage.

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