Mainebiz

W W W. M A I N E B I Z . B I Z 21 N OV E M B E R 1 2 , 2 0 1 8 F O C U S L AW other programs is the scale. It's only limited by geography, it's not limited by amount of money." It's similar in many ways to the New Markets Tax Credit program, which gives tax incentives to developers invest- ing in distressed areas, Ravenelle says. at makes it easy for those investing to understand it, but he, too, stresses the scale difference. "Only 25% of New Markets [zones] are qualified Opportunity Zones," he says. Caveats and optimism Murray, Plumb & Murray's Anderson suggests clients wait until the final regulations come out before making decisions related to the program. "It's up for comment and some things may change," he says. "ey have to put some meat to the bones." While property development requires a legal opinion, Anderson says, "I always encourage clients to have an accoun- tant take a look." Eimicke and Ravenelle also say investor enthusiasm is tempered by some caveats. For instance, not all devel- opment, even in qualified Opportunity Zone, is a good fit. "It has to make economic sense, even before the tax pieces come together," says Ravenelle. Anderson also says areas that already have some development spark are more likely to see more of it through the program. Short-term econom- ics are as important as the long-term investment. "You still have to fill it with tenants who pay rent," he says. "If you're the first one in a blighted area, you buy the property and fix it up, you still have to consider what kind of tenants you're going to get." Developer Mattson says the program isn't the reason to do a development. "It's part of the basket of tools," he says. He says most developers combine many economic drivers, particularly historic and low-income tax credits, CDBGs, tax increment financing districts and the New Markets tax credit. But he says it's an important tool — the one piece that can be the tipping point. Eimicke and Ravenelle say they're proceeding with clients on Opportunity Zone projects. "I think we can rely on the proposed regulations," says Ravanelle, adding any changes probably won't be substantial. "It's not likely the rules are going to be less investor-friendly," Eimicke adds. Maureen Milliken, Mainebiz staff writer, can be reached at mmilliken @ mainebiz.biz Managing your legal matters cost-effectively means we're constantly developing new and innovative ways to solve your employment and labor law needs. We believe, when you focus on one thing, and only one thing, experience isn't just inevitable, it's invaluable. One Monument Square | Suite 600 | Portland, ME 04101 | 207.774.6001 littler.com Mindy Caterine, Eric Uhl and David Strock Mainebiz invites you to network with the future. Tickets are $45 and the price of a ticket includes 1 free drink! Aura / 121 Center St., Portland November 13 5:00–7:00 pm FOLLOW US @MBEVENTS #MBNext18 BEN DAVIS AND EMILY DAVIS OWEN MCCARTHY AND BRIAN HARRIS MADDIE PURCELL ALAIN J. NAHIMANA TOBIAS PARKHURST CHRISTINA KANE-GIBSON F O R M O R E I N F O A N D T O R E G I S T E R : www.mainebiz.biz/next PRESEN T ING SP ONSORS Make a Donation to the Next List Alumni Scholarship Fund at mainecf.org DAN AND ASHLEY RICE PETE ROBERTS

• Cover