Renaissance Zone

The RenaiRZ_Mapssance Zone (RZ) program provides property and income tax incentives to both residents and businesses for qualified revitalization activities within the Renaissance Zone, as shown in the map. The purpose is to encourage reinvestment in downtown properties, which strengthens the core of our community and optimizes existing infrastructure. There are five different types of Renaissance Zone projects:

  • Rehabilitation
  • New construction
  • Purchase with major improvements
  • Lease
  • Historical rehabilitation

A Renaissance Zone project must be approved by both the City of Bismarck and the North Dakota Department of Commerce before the qualifying activity occurs (purchase, new construction, lease, or rehabilitation).

References

Consider Before You Begin

  • There are five different types of Renaissance Zone projects, each with different criteria for approval. The full criteria of the Development Plan are summarized here:
      1. Rehabilitation. A rehabilitation of an existing building must have project costs of at least $40 per square foot for commercial (or $30 for multifamily residential) and at least 50% of the assessed building value or $25 per square foot or 20% for single-family residential. Rehabilitation must resolve all outward blemishes. Approval must be secured before construction work begins. 
      2. New Construction. Construction of a new building must have project costs of at least $150 per square foot for commercial or $100 per square foot for residential (with sliding scale between). Approval must be secured before construction work begins. 
      3. Purchase with Improvements. If a property is being purchased, improvements must meet or exceed 50% of the assessed building value for a full exemption (partial exemptions are possible). The project must be approved before close on the property. 
      4. Lease. A tenant must occupy a building previously approved as a Renaissance Zone project, or invest at least $40 per square foot. Approval must be secured before the business opens. 
      5. Historical Rehabilitation. All criteria of a rehabilitation apply, plus additional requirements of the State Historical Society. Additional state and federal benefits may be available as well. See State Historical Society for more information on this option.
  • The following benefits are typically available:
      1. Property Tax. a property tax exemption on any new building value created through the project for up to five years. For example, Exemption = Final Assessed Building Value - Baseline Assessed Building Value.
      2. Business Income Tax.  a 100% state income tax exemption on income generated from the location for five years. 
      3. Resident Income Tax. For owner-occupied residential properties, a state income tax credit of up to $10,000 per year for up to five years is also available. 
  • Requests for downtown design review approval may be made simultaneously to the Renaissance Zone Authority, or they may follow approval of Renaissance Zone once designs are further developed for the project. 

Process Steps

Renaissance Zone Application Timeline

  • Submit Application. A Renaissance Zone Application is submitted to the Planning Division, along with fee and attachments. See this year's Meeting Schedule and Application Deadlines.
  • Staff Review. Technical staff review is conducted. Applicant will be contacted with any comments and may revise and resubmit if necessary.
  • Public Notification. The Planning Division publishes two legal advertisements in the Bismarck Tribune and sends letters to nearby property owners notifying of a public hearing.
  • Renaissance Zone Authority Public Hearing. A staff report is released the week prior on the Agenda Center, and the Renaissance Zone Authority considers the request on their regular agenda. The Renaissance Zone Authority may recommend approval, denial, continuation, or a conditional approval including adjustments of exemption value.

City Commission Application Timeline From Renaissance Zone Authority

  • Commission Review. A staff report is released the week prior on the Agenda Center, and the City Commission considers the request on their regular agenda. Staff presents the item, and applicant is encouraged to attend to answer questions.
  • State Review. City staff send the application and all required documents to the North Dakota Department of Commerce - Community Services Division for final review and tentative approval. State approval typically occurs within one week after Commission approval.
  • Tentative Approval Letter. City staff sends a State and City tentative approval letter to the applicant. Construction work on the project may being after this point. 
  • Project Improvements. Work on the project should be completed within 18 months of state approval, unless a different timeline was agreed to. Extensions may be requested from the Renaissance Zone Authority for valid reasons for delay.
  • Project close-out. Applicant sends final documentation of project completion, as described in the tentative approval letter. Upon review of State and City staff, a final approval letter is issued.
  • Exemption Benefits Begin. The property will be automatically enrolled in the property tax exemption for the next five years, beginning the following year, and may claim the income tax exemption on their forthcoming annual state returns. 

Submittal Requirements

Apply

Initiate an inquiry, submit a scoping request, or file an application for a renaissance zone project or any combination of project types.


Additional Program Information

The City of Bismarck Renaissance Zone Development Plan guides the administration and project selection process for the program:

2024 Renaissance Zone Development Plan
Appendix A:   Memorandum of Agreement between City and State for Continuation of Program 
Appendix B:    Map of Renaissance Zone Boundaries
Appendix C:   Description of Properties
Appendix D:   Renaissance Zone Program Needs Assessment (2016)
Appendix E:    Renaissance Zone Return on Investment Evaluation
Appendix F:    Bylaws for the Renaissance Zone Authority
Appendix G:   Evidence of Community Support

Statewide information on Renaissance Zone:

North Dakota Renaissance Zone Program Guidelines (North Dakota Department of Commerce)
Guidelines for Renaissance Zone Tax Incentives (North Dakota Office of State Tax Commissioner)
State Historical Society of North Dakota Renaissance Zone Tax Incentives
Chapter 40-63 Renaissance Zone in the North Dakota Century Code

For additional information on the Renaissance Zone Program, contact Isak Johnson.