Richmond's next Scott's Addition could be on this new Opportunity Zone map
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Illustration: Sarah Grillo/Axios
Could the next Scott's Addition be in South Richmond, Henrico or Chesterfield?
- Federal officials have approved 17 new Opportunity Zones across the region, offering the same tax incentives that helped finance Scott's Addition's building boom.
Why it matters: The program has helped attract millions in private investment to targeted Richmond neighborhoods. Now a new slate of communities could get the same financial boost.
State of play: The 17 new zones across Richmond, Henrico, Chesterfield and Hanover are among 153 approved statewide, Gov. Spanberger announced Friday. They take effect Jan. 1, 2027.
- They'll join 22 tracts designated in the region in 2018. Tax benefits for those original zones, which include Scott's Addition, remain in effect through 2028.
Zoom in: Richmond had 11 original zones and landed eight new ones, including Monroe Ward, Gilpin Court, areas around Virginia Union University and large stretches of South Richmond.
- Chesterfield's new zone is around Chesterfield Towne Center, where a major renovation is planned.
- Henrico's five zones include parts of Lakeside and East Highland Park, plus a large swath of eastern Henrico near the airport.
- In Hanover, one new zone includes part of Ashland.
How it works: The federal program, created during President Trump's first term, offers tax breaks on profits from long-term investments in designated neighborhoods.
- The incentives can help developers attract private financing for projects like apartments, hotels and shops — potentially spurring development that might otherwise struggle to get off the ground.
Case in point: Innsbrook-based developer Capital Square says it used the program to attract more than $130 million in private investment to its Scott's Addition projects.
- That helped build five mixed-use developments, bringing more than 900 apartments and ground-floor commercial space to Scott's, including Otis and Chasen — and a sixth is in the works, per BizSense.
Reality check: Opportunity Zones were created to spur investment in lower-income and struggling communities, per the IRS, but it's unclear how much the tax breaks have benefited residents.
- An August federal report found the investments largely funded real estate development in urban areas with existing infrastructure. Most states couldn't say whether the investments improved local conditions.
What they're saying: "If you want to know where the new Scott's Additions are going to be, follow the (OZ) 2.0 map," Capital Square founder Louis Rogers told BizSense.