A plan to transform a central Richland neighborhood is one of nearly 100 such projects around the state selected for a federal economic development program. 

Gov. Bob Ferguson announced the selection of the proposed Downtown Richland project and 98 others for the federal Opportunity Zones 2.0 program, according to a release. The project is the only one selected in either Benton or Franklin counties. Others were selected in the Yakima and Walla Walla valleys. 

The program is the latest iteration of one that first launched in 2018 and encourages investors, developers and financial institutions to fund real estate development and businesses in economically distressed communities in exchange for tax incentives. The first generation of the program spurred an estimated $100 billion in private investments nationwide. 

The Richland project proposal aims to turn the area bordered by Van Giesen Street on the south, Newcomer Street on the north, Stevens Drive on the west and George Washington Way on the east “into a vibrant, walkable district centered on housing, economic opportunity, healthcare access and community services.” 

According to the proposal summary, “the projects are estimated to generate approximately 700 construction jobs and 380 permanent jobs while leveraging an estimated $300 million in total capital investment. The redevelopment would add approximately 480 new housing units, including affordable housing opportunities, and increase access to healthcare, childcare, and community services for an estimated 2,000 residents annually.”     

Richland’s nomination and those of other selected projects will next be reviewed by the U.S. Treasury Department, with the designations taking effect Jan. 1 through 2036. 

State commerce officials encouraged investors and developers to be prepared for pursuing projects within the Opportunity Zones now as demand for sites is expected to be high. 

Investors can register their Qualified Opportunity Funds with the IRS and begin auditing their realized 2026 capital gains now. Go to: irs.gov/credits-deductions/businesses/invest-in-a-qualified-opportunity-fund.