Boulder on Tuesday delayed lifting a moratorium on demolition and development in the city’s federal opportunity zone.

Instead of allowing new building proposals to come forward for the east-central Boulder area, city council opted to further firm up regulations first.

The President Trump-led opportunity zone program created in 2017 allows for capital gains taxes to be deferred if those gains are used for real estate investments. The program also defers future appreciation. If capital gains-based investments are left in place for longer than 10 years, taxation is excluded completely.

Boulder staff signed up the census tract running generally between 55th and 28th streets and Diagonal Highway and Arapahoe Avenue for the opportunity zone program with hopes of spurring redevelopment at Diagonal Plaza, a struggling commercial area long targeted by the city for something new.

But council feared the tax break also could attract replacement of the housing and business space throughout the rest of the opportunity zone with luxury dwellings and high-end office space.

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