Casselton Business Association

North Dakota Renaissance Zone

The Fifty-sixth North Dakota Legislative Assembly enacted the Renaissance Zone Act allowing North Dakota cities to create a maximum of 20 contiguous blocks area with a duration of up to 15 years, where certain types of tax exemptions and credits can be applied to stimulate revitalization, or redeveloped to attract businesses and residents to that area.

The ND Renaissance Zone Renaissance Zone Tax Incentives Guidelines, the document that explains the income and financial institution tax incentives available under the North Dakota Renaissance Zone Act, can be downloaded from:

Casselton Renaissance Zone

Casselton has a Renaissance Zone Program that is authorized by the State of North Dakota and that spans the downtown business district and a few adjoining residential blocks. See the following map for covered area:

Proposed Renaissance Zone projects must be submitted to and approved by the city prior to start of construction. A Renaissance Zone proposal check-off and more information can be found in the City of Casselton Renaissance Zone Project Application Document

The City of Casselton wants to encourage significant investment within the Renaissance Zone to improve deteriorating properties and to curtail the vacation of buildings and potential decline in tax base. Properties should be renovated or built to meet the needs of the community and should conform with the City's comprehensive plan and land use plan. These plan documents are available upon request.

IMPORTANT: in the City of Casselton Renaissance Zone, a transfer of property ownership does not automatically qualify a property as an approved zone project. A project must be approved by the city council before the purchase of property or improvements begin.

Current Residential Property

• Property ownership must be transferred after the state authorization of the zone.
• Property may not have been part of a previous zone project.
• Property must be zoned as residential.
• Property must be of a conforming use.
• Project must bring property into compliance with all current building codes
• Property owner must make all necessary improvements to eliminate any and all deteriorated conditions that are visible on the exterior of the building.
• Property owner must make capital improvements equal to the greatest of the following:
• * 50% of the true and full value of the property prior to improvements
  * $15 per square foot (basement not included)
  * $15,000 of capital investment
• Proposed capital improvements must substantially improve the life expectancy of the property. Capital improvements include, but are not limited to, replacement or updating of roof, foundation, structure, siding, windows, doors, electrical, plumbing, heating, and cooling systems. Capital improvements do not include new floor covering, window treatments, wall coverings, or furnishings. Cabinetry may be included if basis for improving life expectancy can be determined.
• Additions or garages may only be included if it is determined that all other necessary improvements have been made to the existing principal structure.

New Residential Property

• Property must be of conforming use
• Property must be consistent with visions and goals of the City of Casselton

Current Commercial Property

• Property ownership must be transferred after the state authorization of the zone to be eligible for both real estate and income tax exemptions. If the existing owner remodels property without transfer of ownership, NDCC 57-02.2 allows for the granting of a remodeling exemption for that portion of the project.
• Property may not have been part of a previous zone project.
• Property must be of a conforming use.
• Project must bring property into compliance with all current building codes and all deteriorated conditions that are visible on the exterior of the building. Greater attention is required to this guideline for property located on the main corridor of Front Street.
• Property owner must make capital improvements equal to the greatest of the following:
• * 50% of the true and full value of the property prior to improvements
  * $15,000 of capital investment
• Proposed capital improvements must substantially improve the life expectancy of the property. Capital improvements include but are not limited to replacement or updating of roof, foundation, structure, siding, windows, doors, electrical, plumbing, heating and cooling systems. Capital improvements do not include new floor covering, window treatments, wall coverings, cabinets or furnishings.

New Commercial Construction or Additions

• Property must be of conforming use
• Property must be consistent with visions and goals of the City of Casselton
• Investment of $20 in capital improvements per square foot

Commercial Leases

• Tenant must be leasing space in a building that has been approved as a zone project for current or new commercial property
• Building has been determined by Zone Authority to have been restored or rehabilitated prior to the establishing of the zone meeting all required criteria and now needs additional incentives to bring building to full occupancy.

Vacant Properties

• Properties with a history of long term vacancies may be given special consideration by waiving some of the above mentioned requirements.

Relocation of Commercial Businesses

• Commercial tenants that are relocating within the zone are not eligible for tax incentives without special approval from the Zone Authority
• Commercial tenants that are relocating from another ND community to Casselton are not eligible for tax incentives without special approval from the Zone Authority

Percentage of Exemption

See State publication (N.D.C.C. ch. 40-63) for information on North Dakota Renaissance Zone Tax Incentives

• Property that is targeted for demolition in the Renaissance Zone Plan shall be eligible for 100% exemption from property taxes if the existing property is demolished and replaced by a new structure. Note: Property taxes on land are not exempt.
• Non conforming properties that make structural changes to provide for a change in use to bring the property in compliance with city plans and ordinances shall be eligible for 100% property tax exemption
• State income tax exemptions are awarded at 100% for income generated in the Renaissance Zone for businesses operating in an approved project
• Tenants leasing space in an approved renaissance zone project are eligible for 100% income tax exemption for the business operating in the approved project