Property tax and North Dakota Income Tax incentives are available to residential and commercial property owners who make investments in properties which are included in the Renaissance Zone. (See Map).
The City of Enderlin seeks to encourage new and meaningful investment within the Renaissance Zone to improve deteriorating properties, encourage new construction and to have new or expanding businesses occupy the buildings available in the downtown business district.
PLEASE NOTE: WORK CANNOT BE STARTED ON A PROJECT UNTIL IT HAS BEEN APPROVED BY THE STATE (DCS). The state will not approve a project on which work has begun without their approval. See application and approval process below.
A summary of the criteria which must be met and the tax incentives of a Renaissance Zone project are as follows:
General Criteria for All Projects
Projects must conform to the Zone Plan
and City Ordinances
The project must not be part of an earlier zone project
Applicants (all owners of the property) must provide evidence that they are current on all state and local taxes
The project must eliminate all deteriorated parts of the building and make the structure safe
Property tax exemptions will not be granted on land
RESIDENTIAL PROPERTY:
Existing Single Family Residential Criteria
· Must be the primary residence of the owner
· Owner must make improvements which will be equal or greater than 20% of current true and full value or capital improvements which result in at least a $ 15,000 increase in true and full value
· The project must substantially extend the life expectancy of the residence
· Capital improvements include, but are not limited to, replacement or updating of roof, foundation, structure, windows, doors, electrical plumbing and heating and cooling systems.
· Capital improvements do not include floor or wall coverings, cabinetry or furnishings.
· Additions or garages may be included only if all other necessary improvements have been made to the primary residence.
· Purchases of residential property without improvements will not be eligible for treatment as a Renaissance Zone Project.
New Single Family Residential Construction
Criteria:
· Must be the primary residence of the owner
· Must comply with City and Sate zoning and building ordinances
Property Tax Incentive
· The City will grant a property tax exemption of 100% for five years on the true and full value of new single family residential construction.
ND Income Tax Incentive
The State will grant a credit of 10,000 per year. This credit may be used to offset the liability for North Dakota income taxes for a five year period beginning upon completion of the project.
COMMERICAL PROPERTY:
Existing Commercial Property
Criteria
· Owner must make improvements which will be equal or greater than 50% of current true and full value or a capital investment resulting in an increase in true and full value of at least $ 15,000
· The project must substantially extend the life expectancy of the building
· Capital improvements include, but are not limited to, replacement or updating of roof, foundation, structure, siding, windows, doors, electrical, plumbing, and heating and cooling systems.
· The Zone Authority may require a higher minimum if deemed appropriate
· Simple purchases of commercial property with no investment in rehabilitation or remodeling must demonstrate a contribution to community benefits, including but not limited to, increase in jobs, relocation of new residents to Enderlin and preventing a commercial property from becoming vacant.
New Commercial Construction Criteria
· Must comply with City and State Zoning and Building ordinances
Property Tax Incentive
· The City will grant a property tax exemption of 100% for five years on new commercial construction upon completion
ND Income Tax Incentive
Net income from a business operation conducted from the project location will be exempt from North Dakota income tax for five years from completion
APPLICATION AND APPROVAL:
The application and approval process is as follows:
· The first step in the selection of projects will be the completion of an application form for a Renaissance Zone Project by the property owner. Owners are encouraged to consult with the Zone Coordinator early during their planning process. Drawings are very helpful in describing the proposed project. Cost estimates for the project are also required.
· Upon receiving a completed project application, the Zone Coordinator will review and evaluate the application for completeness and conformity with the criteria. The application will be presented to the Enderlin Community Development Committee (CDC). Meetings of the CDC are open to the public. The property owner, or a representative, must also be present at this meeting. Approved applications will be forwarded to the City Council for approval.
· When the Council determines that the project is eligible as a Renaissance Zone project, the Zone Coordinator will be instructed to forward the application and supporting documentation to the Department of Community Services (DCS) for final approval.
· The Zone Coordinator will notify the property owner when final approval is received from the DCS. The project cannot proceed until final DCS approval is received. If the DCS does not approve the project the Zone Coordinator will determine why the application is deficient and consult with the property owner to determine if such deficiency can be corrected.
The Enderlin Community Development Committee (CDC) generally meets on the third Thursday of each month and the Enderlin City Council generally meets on the first Monday of each month.
If you have further questions or would like to receive a Renaissance Zone Project Application, contact David Lutgen, Renaissance Zone Coordinator at 701-437-2043.