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Opportunity Zone Partners

The Tradewinds Networks Inc. (TNI) Owner-Hosted Broadband (OHB) model is an excellent fit for Opportunity Zone (OZ) investments because it directly addresses the core goals of the program—economic development and job creation in distressed communities—while providing the patient capital returns and social impact metrics (ESG/SDG) that OZ investors seek.

Asset Type

  • Broadband infrastructure is categorized as commercial or industrial property or an operating business (the ISP service itself), both of which are eligible QOZ assets.

Qualified Opportunity Zone Business (QOZB) Eligibility

The TNI model facilitates investment into a Qualified Opportunity Fund (QOF), which then invests in a Qualified Opportunity Zone Business (QOZB).

​The "Original Use" Test

  • The infrastructure TNI deploys, such as new antennae, edge computing gear, and networking electronics, constitutes new property or "substantially improved" existing property within the census tract, satisfying a core OZ requirement.

Income Test

  • The network operates a local business (an ISP) that derives at least 50% of its gross income from business activities within the Opportunity Zone, meeting a major criterion for QOZB status.

Tangible Property Test

  • The network assets (towers, equipment, etc.) are physically located within the Opportunity Zone and used in the trade or business, meeting the tangible property requirement.

The TNI model's structure is built for Investment

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For more information, email
impact@tradewindsnetworks.com

Generating Investor Returns & Tax Benefits

The TNI model is designed to produce the high, long-term returns necessary to make the 10-year hold period attractive to investors who want to maximize the OZ tax exclusion.

 

  • Long-Term Capital Gains Exclusion: The network's value appreciates over 10 years as subscriber count and ancillary revenue (from smart city IoT, Edge AI services, etc.) grow. An investor who holds their QOF investment for 10 years or more pays zero capital gains tax on this appreciation.

 

  • Double ROI: OZ investors typically look for both financial return and verifiable impact. The TNI model provides a double ROI by delivering:

 

  • Financial ROI (The "Profit"): Subscription revenue + ancillary revenue from smart city services.

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  • Impact ROI (The "S" in ESG): Measurable outcomes like the percentage of students brought back online, new local jobs created, and improvements in community health/safety from telehealth and emergency connectivity—all essential for a positive OZ narrative.

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Meeting Community Impact Goals (ESG/SDG)

While the OZ tax benefits are focused on the investor, the program's purpose is community development. The TNI model delivers tangible, community-centric outcomes, which is crucial for attracting mission-driven QOFs.

 

  • Job Creation (SDG 8): The network creates local jobs for installation, maintenance, and ongoing customer support, ensuring the investment benefits residents of the distressed community.

 

  • Infrastructure for Economic Growth (SDG 9): By providing fiber-grade speeds and AI-driven infrastructure, the network makes the Opportunity Zone attractive to new businesses and facilitates remote work, directly fostering economic growth.

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  • Bridging the Digital Divide (SDG 11): By targeting underserved communities and offering affordable plans, the model directly closes the digital access gap that often plagues OZs, making the investment equitable and sustainable.

Partnership and Deal Structuring

TNI's Owner-Hosted Broadband (OHB) structure simplifies the project by securing the city/community as a partner early on, which addresses common issues that plague other OZ real estate and infrastructure projects.

 

  • Red Tape Reduction: The local partnership with the municipality or community organization helps to fast-track permitting and approvals, avoiding the costly delays that can undermine a time-sensitive OZ investment timeline.

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  • Revenue Alignment: Sharing a portion of the network revenue with the local co-host ensures that the financial incentives are aligned with the community's long-term success, reducing political risk for the private investors.

Engagement

The Tradewinds Networks Inc. (TNI) strategy is designed for communities that are underconnected and have a willingness for a public-private partnership. The model is specifically engineered to be profitable in markets where others cannot thrive, making these communities ideal candidates.

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The business model is scalable and repeatable across various environments. Good candidates include:

  • Geography and Scale:

    • ​​Rural, Urban, and Suburban areas.

    • Small to Mid-Sized Cities and Counties.

    • ​Single Neighborhoods, Campuses, or Multi-Dwelling Units (MDUs), which serve as pilot projects that can scale up to entire city networks.

    • Specific Examples in TNI's Pipeline: Bellflower, CA; neighborhoods in Baltimore, MD; Lakewood, CA; American Samoa; and rural Central Sierra, CA.

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