By Jennifer Conrad, Managing Editor
Imagine ghost towns transformed into campgrounds, new businesses taking root in neglected areas, and cutting-edge tech hubs replacing abandoned factories. These are just some of the possibilities unlocked by Opportunity Zones, a program breathing new life into communities nationwide. In Arizona, where growth and innovation are at an all-time high, Opportunity Zones are creating an exciting pathway for economic revitalization. I sat down with Tommy Dobczyk, the Buckeye OZ Fund’s development director, to learn how this program shapes Arizona’s future and why it’s worth attention.
What Are Opportunity Zones?
Opportunity Zones were established by the Tax Cuts and Jobs Act of 2017 to stimulate investment in low-to-moderate-income areas. Here’s how they work: Investors can defer or even eliminate capital gains taxes by investing in these designated zones. The goal is to give investors financial benefits while spurring economic development in under-resourced communities.
Bringing New Life to Ghost Towns
One of the Buckeye OZ Fund’s standout projects involves transforming forgotten ghost towns into thriving campgrounds. Why campgrounds? According to Tommy, outdoor hospitality has seen a major boom since the pandemic, but many facilities haven’t kept up with demand.
“During COVID, people craved outdoor experiences, but there weren’t enough quality spaces to go,” he said. “We’re filling that gap by creating campgrounds with top-tier amenities. And while we’re at it, we’re creating jobs and boosting the local economy.”
Each campground employs 10 to 25 people, from park managers to groundskeepers. Construction projects rely on local talent—plumbers, electricians, and contractors—ensuring that dollars stay in the community. These campgrounds not only offer recreational opportunities but also revitalize areas that had been left behind.
Expanding the Vision: Beyond Real Estate
Campgrounds are just the beginning. Opportunity Zones can support many projects, from Build-to-Rent housing developments to tech hubs and public works projects. In Arizona, where growth is booming, these zones are critical for meeting the demand for housing, infrastructure, and jobs.
Tommy highlighted their work near Yuma, where small towns like Summerton and San Luis struggle with public infrastructure due to an influx of seasonal visitors. “These towns need better public works to handle their growing populations,” he explained. Through Opportunity Zone investments, we can upgrade infrastructure and support sustainable growth.”
Tech is another area of focus. For example, Mesa and Chandler are exploring ways to repurpose old industrial buildings into state-of-the-art data centers. This creates jobs and positions Arizona as a hub for innovation.
Why Opportunity Zones Matter for Arizona?
Arizona is one of the fastest-growing states in the U.S., with 290 people moving here daily. Between 2021 and 2022 alone, the state welcomed 56,000 new residents. This rapid growth comes with challenges, from housing shortages to strained infrastructure, but Opportunity Zones are part of the solution.
“For investors, the tax incentives are a huge draw,” Tommy said. “But for communities, the benefits go far deeper. We’re talking about more jobs, better housing, and an overall boost in quality of life.”
Take the Yuma Proving Grounds area, for example. Its proximity to the border and access to a port makes it a prime spot for economic development. By leveraging Opportunity Zones, local leaders can attract the investment needed to build for the future.
Overcoming Challenges and Looking Ahead
Despite their potential, Opportunity Zones face hurdles, chief among them being a lack of public awareness. “Not enough people know how this program works,” Tommy said. “From city officials to developers, there’s a real need for education to unlock the full potential of these zones.”
The program will end in 2026 unless Congress passes an extension. Tommy remains optimistic, noting that an extension would encourage investment and new projects. “If the program gets extended, it will open the floodgates for even more development,” he said.
The Takeaway: Investing in Arizona’s Future
Opportunity Zones are more than just a tax break. They’re a chance to invest in Arizona’s communities’ future. From creating jobs to revitalizing neglected areas, these projects exemplify the power of strategic investment to drive meaningful change. “It’s not just about investing in land,” Tommy emphasized. “It’s about investing in people, communities, and Arizona’s future.”
As the state continues to grow and evolve, programs like these will play a crucial role in shaping the next chapter of Arizona’s story. The message is clear for investors, developers, and community leaders: the time to act is now.
About the Author
Jennifer Conrad is the managing editor and CEO OF Arizona Ascent Magazine, and is dedicated to shedding light on the interconnected realms of real estate, jobs, and prosperity,
