New 10-year federal designation positions Lake Elsinore to attract private capital, accelerate development, create jobs, and unlock new economic opportunities beginning January 1, 2027; only city in Southwest Riverside County with two Opportunity Zone 2.0 designations.
LAKE ELSINORE – The City of Lake Elsinore is proud to announce a significant economic development milestone: the U.S. Department of the Treasury has officially approved two census tracts encompassing portions of Lake Elsinore as part of California’s Opportunity Zones 2.0 program. These federal designations create powerful new incentives to attract private investment, stimulate development, and expand economic opportunities throughout the community.
Following a competitive statewide nomination process, the City successfully secured the two federal designations through a coordinated effort with the California Governor’s Office of Business and Economic Development (GO-Biz). The designations will take effect January 1, 2027, and remain in place through December 31, 2036, providing a decade of enhanced investment opportunities for developers, businesses, entrepreneurs, and qualified investors.
“This is a tremendous win for Lake Elsinore and another example of our commitment to positioning our city for long-term economic success,” said Lake Elsinore Councilmember and Economic Development Subcommittee member Steve Manos. “We have worked hard to create an environment where businesses can thrive, investments can flourish, and our residents can benefit from new jobs and opportunities. Securing these two federal designations gives us another competitive advantage to bring meaningful investment into our community and continue delivering on our Dream Extreme vision.”
What Is an Opportunity Zone, and why does it matter?
Opportunity Zones are federally designated areas created to encourage long-term private investment in communities with significant economic potential. Through the program, eligible investors who reinvest capital gains into Qualified Opportunity Funds may receive valuable federal tax benefits while supporting new development and business activity.
The enhanced Opportunity Zones 2.0 program provides several important investment incentives, including:
- Capital Gains Tax Deferral:
- Eligible investors may defer federal taxes on qualifying capital gains invested through a Qualified Opportunity Fund for up to five years, subject to federal requirements.
- Potential Tax Reduction:
- Investors who maintain qualifying investments for at least five years may receive a 10% increase in tax basis on their original deferred capital gains, reducing the taxable amount.
- Long-Term Investment Benefits:
- Qualifying investments held for at least 10 years may be eligible for federal tax exclusion on appreciation generated by the Opportunity Fund investment.
- Greater Investment Certainty:
- The new 10-year designation provides a predictable framework for long-term investment planning and development.
These incentives can make qualifying real estate development, business expansion, redevelopment, and job-creating projects more financially attractive to private investors.
A new competitive advantage for Lake Elsinore
Lake Elsinore’s two newly designated Opportunity Zones encompass strategically important areas of the community with significant potential for economic growth and reinvestment.
The first designation includes Census Tract 06065043006, located entirely within Lake Elsinore’s city limits. This tract encompasses the northern portion of Historic Main Street, including areas within the Downtown Specific Plan, as well as commercial and light industrial properties in and around the Collier Road corridor.
The second designation includes Census Tract 06065042902, which extends across portions of Lake Elsinore, Perris, and unincorporated Riverside County. The portion located within Lake Elsinore provides additional opportunities for qualifying investment and economic development.
Together, these two designations strengthen Lake Elsinore’s competitive position by expanding the geographic areas where qualifying investments may benefit from federal Opportunity Zone incentives.
The designations also support the City’s broader economic development priorities outlined in its Dream Extreme 2040 Plan, including commercial development, business expansion, employment-generating industries, redevelopment of underutilized properties, action sports manufacturing, Historic Main Street revitalization, and new entrepreneurial ventures.
For property owners, developers, and investors, the two Opportunity Zones introduce valuable financing and investment considerations that may help advance projects that otherwise face financial or market challenges.
For residents, successful investment could translate into new employment opportunities, expanded neighborhood services, revitalized commercial properties, and increased economic activity. At a time when development costs and broader economic conditions can challenge private investment, these federal incentives offer an additional opportunity to stimulate development and encourage long-term reinvestment in the community.
“These two designations are more than tax incentives. They represent an invitation to invest in the future of Lake Elsinore,” said Gina Gonzalez, Director of Economic Development and Legislative Affairs. “Our team recognized the importance of positioning Lake Elsinore early in this competitive process and worked diligently to secure these opportunities. We now have two additional tools to attract private capital, advance development opportunities, and connect investors with projects that can generate lasting economic benefits for our community.”
Building on Lake Elsinore’s Economic Momentum
The two Opportunity Zone designations come as Lake Elsinore continues advancing an ambitious economic development strategy focused on attracting new industries, supporting local businesses, encouraging private investment, and strengthening the City’s position as a destination for commerce, recreation, and tourism.
From new commercial and light industrial investment to emerging action sports industries, downtown revitalization, and continued lakefront activation and investment, the City is pursuing opportunities that diversify its local economy, expand its employment base, and create quality, family-supporting jobs.
These initiatives are central to Lake Elsinore’s long-term vision of building a stronger, more resilient economy while improving the overall quality of life for its residents.
The two federal Opportunity Zone designations complement these efforts by providing additional financial incentives for qualifying investments within the designated census tracts, helping position Lake Elsinore to compete for private capital and development opportunities throughout Southern California.
Lake Elsinore Is open for investment
With both designations taking effect in January 2027, the City is encouraging developers, property owners, investors, financial institutions, and businesses to begin exploring potential investment opportunities now.
The City’s Economic Development Department is available to assist interested parties with identifying properties within the designated Opportunity Zones, understanding local development opportunities, coordinating with appropriate City departments, and connecting prospective investors with the City’s broader economic development initiatives.
“Lake Elsinore is not waiting for investment to find us. We are actively creating the conditions for investment to succeed,” added Gonzalez. “With our strategic location along Interstate 15, growing population, business-friendly approach, and now two federally designated Opportunity Zones, we are sending a clear message to the investment community: Lake Elsinore is ready for your next investment.”
City of Lake Elsinore
Economic Development Department130 S. Main Street
Lake Elsinore, CA 92530Email: Econdev@lake-elsinore.org
Website: www.DreamLE.org
Opportunity Zone tax benefits are subject to federal eligibility requirements and applicable Treasury and IRS regulations. The designation does not guarantee that a particular property, project, or investment will qualify.
Prospective investors should consult qualified tax and financial advisors. For more information, please visit: Opportunity Zones in California | California Governor’s Office of Business and Economic Development
Interactive Map: https://cacensus.maps.arcgis.com/apps/dashboards/c704f9e2f5b0422099e87f961950b5da
About the City of Lake Elsinore
Located in the heart of Southwest Riverside County along Interstate 15, Lake Elsinore is one of Southern California’s growing communities, offering a unique combination of natural amenities, recreational destinations, business opportunities, and strategic access to the greater Southern California market. Guided by its Dream Extreme vision, the city remains committed to economic vitality, responsible growth, innovation, and creating opportunities for residents, businesses, and visitors.
