Feds OK Pair Of ‘Opportunity Zones’ In Bloomfield: Here’s What That Means

BLOOMFIELD, NJ — Two areas in Bloomfield were recently designated as federal “Opportunity Zones,” which is expected to infuse them with some fresh investment, housing, jobs and businesses, officials say.

The federal program offers tax breaks to investors who put eligible capital gains into Qualified Opportunity Funds that benefit designated areas. The program was created under the Trump administration’s Tax Cuts and Jobs Act of 2017 and made permanent in 2025, with states now designating new zones every 10 years.

The designation does not approve any specific development or change Bloomfield’s zoning rules. Any proposed development would still need to meet township requirements and go through the appropriate review and approval process.

Bloomfield’s designated areas are Census Tract 153 in the First Ward, and Census Tract 159 in the Third Ward. View the tracts online here.

Here’s what to know about each, according to a statement from the township:

• 1^st Ward – Census Tract 153, in the First Ward, is located east of the Garden State Parkway in the central portion of Bloomfield. The area includes residential, commercial and recreational uses, as well as open space, housing and commercial centers. The tract is located near transit and services.
• 3^rd Ward – Census Tract 159, in the Third Ward, includes portions of Bloomfield Avenue, a major business corridor, and a light rail station, with additional train stations nearby. The area has seen redevelopment in recent years and includes properties identified by the Township as opportunities for future investment.

The township nominated both areas in August, with letters of support from Mayor Jenny Mundell and the council representatives for each tract.

The Bloomfield designations were approved last week – putting them on a list of 130 such zones located throughout New Jersey. Other Essex County towns and cities with Opportunity Zones include East Orange, Irvington, Newark, and Orange.

Mundell said the designations will complement the town’s master plan for development, which was revamped last year. They don’t approve any specific project, but can help attract investment that supports Bloomfield residents, the mayor said.

“We want to create opportunities for local businesses, housing and jobs while making sure future development reflects our community's priorities,” Mundell said.

• Related: New ‘Master Plan’ Lays Out Future Of Development In Bloomfield
• Related: Bloomfield ‘Master Plan’ Needed More Public Input, Residents Say

First Ward Councilwoman Rosalee Gonzalez and Third Ward Councilwoman Sarah Cruz also said the new Opportunity Zones could give Bloomfield a boost.

“The First Ward is home to established neighborhoods, local businesses and parks, and this designation gives us another opportunity to encourage investment that supports the people who live here,” Gonzalez said.

“Bloomfield Avenue is already an important destination for local businesses and residents, and this designation gives us another way to encourage investment in the corridor,” Cruz said.

“With access to light rail and nearby train stations, the area has opportunities to support businesses, housing and jobs,” the councilwoman added.

Gov. Mikie Sherrill said the approval of New Jersey’s 130 Opportunity Zones will open the door for new investment, housing and jobs in many communities that have historically been overlooked.

“This program will help turn vacant properties into homes and businesses, advance smart growth near transit, and strengthen our vital urban centers,” Sherrill said.

According to the governor’s office, New Jersey has shown “strong results” in the first round of the Opportunity Zone program so far.

Early results released by the U.S. Department of Treasury show that 78 percent of New Jersey's Opportunity Zones received investment through 2024, with $3.14 billion in investment across tracts and an average of $18.6 million per eligible zone.

The governor’s office said New Jersey also saw relatively low rates of “displacement” within eligible tracts, as per data from the Brookings Institution.

• Related: More Homes Needed Near Train Stations In New Jersey, New York: Study

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