§ 40-63-03 — Renaissance zones

North Dakota § 40-63-03

• Jurisdiction: North Dakota
• Title 40: Municipal Government
• Ch. 40-63: Renaissance Zones

Text

1. A city may apply to the department of commerce division of community services to
designate a portion of that city as a renaissance zone if the following criteria are met:
a. The geographic area proposed for the renaissance zone is located wholly within
the boundaries of the city submitting the application.
b. The application includes a development plan.
c. The proposed renaissance zone is not more than thirty-four square blocks,
except in a city with a population of greater than five thousand the renaissance
zone may exceed thirty-four square blocks at the rate of one additional block for
each additional five thousand population to a maximum size of forty-nine blocks.
(1) Population is based upon the most recent federal decennial census or
federal census estimate.
(2) If a city finds that renaissance zone projects have satisfactorily completed
one or more blocks within the renaissance zone, the city may apply for and
the department of commerce division of community services may approve
withdrawal of those blocks from the renaissance zone and replacement of
those blocks with other blocks that otherwise meet the requirements of this
chapter.
d. Except as provided under subdivision g, the proposed renaissance zone has a
continuous boundary and all blocks are contiguous.
e. The proposed land usage includes both commercial and residential property.
f. The application includes the proposed duration of renaissance zone status, not to
exceed fifteen years.
(1) Upon application by the city, the department of commerce division of
community services may extend the duration of renaissance zone status in
increments of up to ten years.
(2) If a renaissance zone designated under this chapter expires, a city may
reapply for a subsequent renaissance zone in the same manner an original
renaissance zone is formed under this section.
(3) If a renaissance zone designated under this chapter expires, a city may
reapply for renewal of the formerly expired renaissance zone in the current
manner a renewal extension is granted by state law.

g. The proposed renaissance zone may have up to two exceptions to the
continuous boundary and contiguous block requirements under subdivision d if
the areas of the excepted noncontiguous blocks do not exceed three square
blocks each.
2. The department of commerce division of community services shall:
a. Review all applications for renaissance zone designation against the criteria
established in this section and designate zones.
b. Approve or reject the duration of renaissance zone status as submitted in an
application.
c. Approve or reject the geographic boundaries and total area of the renaissance
zone as submitted in an application.
d. Promote the renaissance zone program.
e. Monitor the progress of the designated renaissance zones against submitted
plans in an annual plan review.
f. Report on renaissance zone progress to the governor and the legislative
management on an annual basis until all designated zones expire.
3. The department of commerce division of community services shall consider the
following criteria in designating a renaissance zone:
a. The viability of the development plan.
b. The incorporation and enhancement of unique natural and historic features into
the development plan.
c. Whether the development plan is creative and innovative in comparison to other
applications.
d. Public and private commitment to and other resources available for the proposed
renaissance zone, including the provisions for a renaissance fund organization.
e. How renaissance zone designation would relate to a broader plan for the
community as a whole.
f. How the local regulatory burden, in particular that burden associated with the
renovation of historic properties and that burden associated with mixed use
development, will be eased for developers and investors in the renaissance zone.
g. The strategies for the promotion, development, and management of the zone,
including the use of a local zone authority if designated.
h. Any other information required by the office.
4. The department of commerce division of community services may not designate a
portion of a city as a renaissance zone unless, as a part of the application, the city
provides a resolution from the governing body of the city that states if the renaissance
zone designation is granted, persons and property within the renaissance zone are
exempt from taxes as provided in sections 40-63-04 through 40-63-07.
5. A city may not propose or be part of more than one renaissance zone.
6. a. A parcel of property may be exempted from property taxes under section
40-63-05 more than once. During the taxable years of eligibility for an exemption
from property taxes under section 40-63-05, the property tax exemption transfers
with the transfer of the property to a qualifying user. A parcel of property which
previously received a property tax exemption under section 40-63-05 may not be
eligible for a subsequent property tax exemption under section 40-63-05 until
thirty years have lapsed from the completion date of the most recent project on
the property.
b. The ownership or lease of, or investment in, a parcel of property may qualify for
exemption or credit under section 40-63-04 more than once. During the taxable
years of eligibility for an exemption or credit under section 40-63-04, the
exemption or credit transfers with the transfer of the property to a qualified user
and with respect to the year in which the transfer is made must be prorated for
use of the property during that year.
c. Taxpayers eligible for a property or income tax incentive under this chapter for
zone projects that are incomplete immediately preceding the expiration of the
renaissance zone designation in the area in which the zone project is located

may continue to receive the incentive for the time period during which the
taxpayer was originally eligible to receive the incentive.
d. For purposes of this subsection, the renaissance zone designation is considered
expired when the proposed duration of renaissance zone and any subsequently
granted extensions have lapsed.
7. A city may apply to the department of commerce division of community services at any
time during the duration of a zone to expand a previously approved renaissance zone
that is less than the maximum size allowed under subdivision c of subsection 1. If the
expansion is approved by the department of commerce division of community
services, the blocks in the expansion are eligible for up to fifteen years of renaissance
zone status.
8. The use of grant funds as the sole source of investment in the purchase of a building
or space in a building does not qualify a taxpayer for any tax exemption or credit
available under the chapter, and grant funds may not be counted in determining if the
cost of rehabilitation meets or exceeds the current true and full value of the building.
9. If a portion of an approved renaissance zone is not progressing, the city may request
the department of commerce division of community services to permit deleting that
portion and to make an adjustment of the boundaries to add another equal, contiguous
area to the original zone.
10. If within a renaissance zone there is property that is included in a tax increment
financing district, the city in which the property is located shall provide the department
of commerce an annual report regarding any such property at the time requested by
the department of commerce. The report required under this subsection must identify
the property, provide the expected duration of inclusion of the property in the tax
increment financing district and the renaissance zone, and identify any property and
income tax benefits of the property and the expected duration of those benefits. The
department of commerce shall deliver an annual report compiling the information
required under this subsection to the legislative management interim committee on
taxation issues or upon request of any other interim committee of the legislative
management.