What is an Innovation District?
An innovation district is defined as a place-based urban development strategy that aims to regenerate an under- performing downtown neighborhood into a desirable location for innovative and creative companies and workers.
Furthermore, innovation districts facilitate the creation and commercialization of new ideas and support metropolitan economies by growing jobs in ways that leverage their distinct economic attributes. These districts build on and revalue the intrinsic qualities of cities: proximity, density, authenticity, and vibrant places. Given the proximity of many districts to low-income neighborhoods and the large number of sub-baccalaureate jobs many provide, their intentional development can be a tool to help connect disadvantaged populations to employment and educational opportunities.1
Who benefits from the Innovation District?
Property owners, companies, entrepreneurs, universities, disadvantaged populations, and regional citizens will see benefit from the designation of an innovation district. By offering the prospect of expanding employment and educational opportunities within a defined area, the subsequent creation and expansion of firms and jobs will co-invent and co-produce new discoveries and benefits for the entire regional economy.
All of Peoria’s Innovation District falls within a federally designated Opportunity Zone. This designation creates:
Temp Tax Deferral
For capital gains invested in an opportunity fund (thru 2026).
Step-Up in Basis
(Up to 15 percent) for capital gains invested in an opportunity fund.
On capital gains (if investment held at least 10 years).