FORT PAYNE, Ala. – The U.S. Treasury Department announced Tuesday that a new Opportunity Zone will take effect in Fort Payne on Jan. 1. The designation gives qualifying investors federal tax incentives for putting money into businesses and real‑estate projects within the zone, a tool that local leaders hope will spark new employment and revitalization.
Why the designation matters for Fort Payne
Fort Payne has faced a wave of job losses in recent years. The Children’s Place distribution center warned its nearly 600 workers that a shutdown could be imminent, and the closure of Renfro Brands last year added to the community’s economic strain. Combined, those closures could total more than 1,000 jobs lost in just two years.
Opportunity Zones were created by Congress to encourage private capital to flow into distressed communities. By reducing or deferring capital gains taxes for investors who commit money to qualified projects, the program aims to generate jobs, increase tax revenue, and improve local infrastructure.
Local leaders’ expectations
DeKalb County Economic Authority Executive Director Brett Johnson said the Fort Payne nomination was the highest‑ranked because it blends existing infrastructure with a clear need for employment.
“This was our highest‑ranked nomination because it combines existing infrastructure and employment with real opportunities for industrial expansion, commercial redevelopment, housing, hospitality, adaptive reuse and further downtown investment,” Johnson said.
Johnson added that the zone covers strategic parcels along Highway 35, the historic downtown corridor, Airport Road, and the Exit 218 area. He expressed confidence that the ten‑year designation will attract “great jobs” and help the city rebuild its tax base.
Potential projects and benefits
Business leaders anticipate that the tax incentives could lure manufacturers, logistics firms, and developers of mixed‑use housing. The zone’s location near major transportation routes makes it attractive for industrial projects that need easy access to rail and highway networks.
In addition to job creation, the designation could spur the construction of new hotels, retail spaces, and adaptive‑reuse projects that preserve Fort Payne’s historic character while providing modern amenities. Housing developers may also see an opportunity to build affordable and market‑rate units to meet the needs of a growing workforce.
How the program works
Investors who place capital into qualified Opportunity Zone businesses or property must hold the investment for at least five years to receive a 10 % reduction in capital gains tax, ten years for a 15 % reduction, and fifteen years for a full deferral of gains. The Treasury’s certification means the designated area now meets all federal criteria, allowing developers to begin structuring projects under the program.
Community response
Local residents and civic groups have expressed cautious optimism. While some worry that the incentives could primarily benefit out‑of‑state investors, many see the designation as a concrete step toward reversing the recent job decline.
“We need every tool we can get to bring jobs back to Fort Payne,” said longtime resident and small‑business owner Maria Lopez. “If this brings new factories or housing, it will help families stay here and raise their children in a thriving community.”
Next steps
City officials plan to work with the DeKalb County Economic Authority to market the zone to potential investors and developers. A series of informational webinars and outreach events are slated for early 2025, aiming to connect local entrepreneurs with federal tax‑advantaged capital.
The Opportunity Zone will remain in place for ten years, giving Fort Payne a decade of opportunity to attract the projects that can restore its economic base and provide stable, well‑paying jobs for its citizens.
Original reporting: WAFF 48 Huntsville (news) — read the source article.
