Elm City Opportunity Fund

Elm City Opportunity Fund

Geographic Scope: Waterville's Opportunity Zone (census tract 23011024102, including downtown Waterville)

Overview: A qualified opportunity fund established by Central Maine Growth Council to facilitate investment in the Waterville Opportunity Zone. The fund leverages the federal Opportunity Zone tax incentive program (established under the Tax Cuts and Jobs Act of 2017) to attract capital investment to downtown Waterville.

Key Benefits for Investors:

• Broadened access for small, medium-sized, and family-scale investors and businesses
• Reduced legal, financial, and operational barriers to entry
• Deep knowledge of local economy to allocate capital to its highest and best use

Tax Incentive Structure:

• Temporary Deferral: Defer taxation on capital gains until December 31, 2026 or when the fund is disposed
• Step-up in Basis: Up to 15% of original gain exempt from taxation if held 5-10 years
• Permanent Exclusion: Gains accrued after 10-year hold are exempt from taxation

Fund Manager & Advisors:

• Fund Manager: Garvan D. Donegan, CMGC
• Tax Advisor: Jim Cardosi, CPA at Wipfli (foremost accounting experts on Opportunity Zones)

Context:

Over $120 million in recent and planned investments in downtown Waterville. The city's economy includes precision machining, technology, information-based sectors, and a thriving arts and culture scene.

Contact: Central Maine Growth Council

Phone: 207-680-7300

Email: gdonegan@centralmaine.org

Address: 50 Elm Street, Waterville, ME 04901