City of Lacey nominated for federal Opportunity Zones investment program 

The City of Lacey earned a nomination for a federal economic development program that could open new investment opportunities in its Midtown District. 

The nomination offers a potential avenue for private financing to support commercial development, housing and employment opportunities. However, federal certification is required before the designation could take effect. 

The city announced the nomination in a press release issued on Monday, Oct. 12. According to the city, Gov. Bob Ferguson selected Lacey as one of 99 Washington communities nominated for the federal Opportunity Zones 2.0 program. 

Ferguson announced the statewide nominations on Oct. 8. According to the state, the 99 nominations were selected from 152 applications. 

The program encourages investors, developers and financial institutions to fund real estate development and businesses in low-income and rural areas.

In exchange, investors receive tax incentives. The first version of the program spurred an estimated $100 billion in private investment and reached more than 5,600 neighborhoods nationwide. 

Midtown development goals 

Lacey Community and Economic Development Director Vanessa Dolbee said the nomination could attract private investment for commercial and housing projects in the Midtown District. The city envisions the district as the foundation for its future downtown core. 

“The Opportunity Zone 2.0 nomination represents an exciting opportunity to build on Lacey’s vision for a vibrant Midtown District,” Dolbee said. “It’s a tremendous opportunity to attract new private investment. We’re eager to see it accelerate development, expand commercial and housing opportunities, and create jobs.” 

Still, the program depends on private investment. The nomination does not guarantee funding for the city. 

Federal program updates 

The Washington State Department of Commerce guided months of public feedback and planning involving the public, business leaders and the 29 federally recognized tribes in Washington. 

Interim Commerce Director Sarah Clifthorne said the process aimed to identify local priorities and encourage private investment. 

“We started by listening to communities about their strengths, their ambitions, and what they need to grow,” Clifthorne said. “There is immense untapped potential across Washington for private investments to thrive and unlock the next chapter of growth. Our goal is to encourage that partnership with local people and the variety of spaces ready for impact.” 

Congress updated the Opportunity Zones program in 2025. The changes introduced strict information reporting requirements to measure long-term economic impacts. The state noted it is “unclear how many specific jobs or investment resulted” from the original program. 

The nominations represent 27 Washington counties and 17 tribal lands. Ferguson submitted the nominations to the U.S. Department of the Treasury for review and certification. 

Approved designations are scheduled to take effect on Jan. 1, 2027, and remain active through Dec. 31, 2036. Meanwhile, the original Opportunity Zones designations remain active through Dec. 31, 2028, overlapping with the updated program. 

The full list of nominations and program details is available on the Opportunity Zones dashboard.