Nov. 10, 2026, 5:12 a.m. ET
Federal Opportunity Zones, which offer tax incentives for investing capital gains, have spurred an estimated $400 million in investments in Erie.Previously limited to eight areas in the city, the program has now been expanded to include nine additional census tracts across Erie County.The newly designated Opportunity Zones include parts of Wesleyville, Union City, and other rural areas, aiming to attract private-sector investment.
Erie hasn’t historically been an attractive place for real estate investment.
Drew Whiting, CEO of the Erie Downtown Development Corp., explained recently that typically a $1.5 million investment in buying and renovating a property in downtown Erie typically would leave the owner with a property worth $1 million.
It was a math problem that didn’t pass the pencil test.
Federal Opportunity Zones helped change that, especially in places like Erie, by offering investors an unusual opportunity. Instead of paying taxes on their capital gains, they could invest those gains in designated low-income areas. In exchange, Opportunity Zone investors who hold those investments for 10 years pay no capital gains on the appreciation of those investments.
It’s an incentive program that helped spur an estimated $400 million in investment in Erie over the past decade, including $150 million in EDDC projects and a $50 million renovation that’s underway at the former Renaissance Centre at 10th and State streets.
But there was a catch. That same investment tool wasn’t available outside eight designated areas within the city of Erie.
Now, under a program being called Opportunity Zone 2.0, there’s a chance for those benefits to help spur investment in other areas.
The U.S. Department of Treasury and the internal Revenue Service have approved Pennsylvania’s expanded map, which was announced recently by Erie County Executive Christina Vogel.
For the next 10 years, Erie County’s new Opportunity Zone map retains the existing Opportunity Zone census tracts and adds nine more for a total of 17.
Where are the new Opportunity Zone census tracts in Erie County?
Expanded Opportunity Zones include parts of Erie as well as Wesleyville, Union City and rural areas of the county.
“This is a transformative milestone for the economic future of our entire region,” Vogel said in a statement. “By expanding Opportunity Zones beyond the urban footprint, we are positioning Erie County to attract private-sector investment and giving our communities the tools they need to grow and thrive.”
Cindy Wells, borough manager in Union City, said she’s excited about what the designation could mean for local development.
With encouragement from the county executive, Wells said she came up with a list of development-ready projects that includes both industrial sites and a housing project.
That list isn’t set in stone.
“The list is a living document,” she said. “It will change as needed.”
Union City has been on a roll with nearly $9 million in recent investments. Wells is convinced the tax benefits of the Opportunity Zone will generate more interest.
“I think it will happen,” she said.
Although Wesleyville is next door to the city of Erie, there’s been no special incentive for people with development ideas and capital gains to invest.
Opportunity grows: Erie, a big winner in Federal Opportunity Zones, looks to expand map
“After watching the success of the original Opportunity Zones in the City, we are excited to see similar types of transformational investments flow into Wesleyville,” Marcus Jacobs, manager of the borough, said in a statement. “This designation makes our borough more attractive as a place to invest.”
Erie Mayor Daria Devlin shares that enthusiasm.
“This is exciting news for Erie and another step forward in our community’s revitalization,” she said in a statement. “We want to see Erie continue to grow, attract investment, and create opportunities for our residents in every part of our city. This is exactly what moving Erie forward, together, looks like.”
More: Pennsylvania approves more than $20 million in Erie CRIZ projects
In an application submitted to the state in August, Erie County proposed a total of 25 Opportunity Zones, including the eight that were already established.
Contact Jim Martin at jmartin3@usatodayco.com.