Novato Receives Federal Opportunity Zone Designation, Creating New Investment Opportunities Downtown

The City of Novato has secured a federal Opportunity Zone 2.0 designation for its Downtown census tract, opening the door to new private investment opportunities over the next 10 years. Effective January 1, 2027, the designation provides the City with another tool to support local businesses, encourage housing near jobs and transit, and strengthen the local workforce, all community priorities identified in the City's recently adopted Economic Strategic Plan.

The federal Opportunity Zone program offers tax incentives to encourage private investment in eligible communities, supporting projects such as commercial development, housing, infrastructure and business expansion.

The designation comes at an important time for Novato as the City begins putting its recently adopted Economic Strategic Plan into action. Developed with extensive input from residents, local businesses and community partners, the plan identifies opportunities to strengthen Novato's economy, support local businesses and create a more vibrant and resilient community.

"The designation is exciting news for Novato and an opportunity to continue to build on the momentum of our Economic Strategic Plan," said Economic Development Manager Katie Skjerping. "Throughout the planning process, our community made it clear that supporting local businesses, strengthening Downtown and creating opportunities for future growth are important priorities. This designation gives us another resource we can leverage to support those efforts and advance that shared vision for Novato."

The designated census tract (1022.03) encompasses Downtown Novato and extends north along the Redwood Boulevard corridor to San Marin Drive. Its boundaries include San Marin Drive to the north, Highway 101 to the east, Novato Boulevard to the south, and Seventh Street to the west.

This census tract includes several vacant or underutilized parcels. This designation provides financial incentives designed to attract private investment to bring these types of properties back into productive use, while advancing several key priorities identified in the Economic Strategic Plan, including downtown revitalization, business support, housing opportunities, job creation, enhancing major corridors and commercial centers, and reinvestment in industrial areas.

Securing the designation was a coordinated effort supported by the Novato City Council, County of Marin, Novato Chamber of Commerce and Sonoma-Marin Area Rail Transit (SMART).

As the City implements its Economic Strategic Plan, the Opportunity Zone designation provides an additional resource to attract investment that reflects community priorities and supports Novato's long-term economic vitality.

View Novato's Economic Strategic Plan: novato.gov/EconomicPlan