Jill Schramm/MDN A section of North Broadway, including the frontage from Economy Hotel to The Vegas, is proposed for inclusion in Minot’s Renaissance Zone, which provides tax incentives for improvements.

Legislative changes made last year to the Renaissance Zone program and its tax incentives have created options for cities. Minot is looking at potentially taking advantage of the options, including adding new areas to its zone.

On Tuesday, Brian Billingsley, community and economic development director for the City of Minot, outlined the contemplated changes at a meeting of the Ward County Commission. The county commission and Minot Public School Board, whose taxes would be affected by program changes, are being asked for support, as required by law, before the city council adopts any updates.

Billingsley explained there are five potential changes under consideration.

One change would allow for an island, which is an area of the zone not contiguous to the remainder of the zone.

“We currently do not have an island in a Renaissance Zone. We are proposing to create one, though,” Billingsley said.

Staying within the limit of a 42-block zone, the city’s proposed amendments include eliminating two blocks of the existing Renaissance Zone downtown and adding two new blocks on North Hill. Considered completed and proposed for removal is the block at the corner of Burdick and Broadway, where a strip mall exists. The city also wants to remove the block along Burdick in the location of the Minot Housing Authority and the new career and technical education center that is under construction.

“Those properties are either tax exempt or they’re owned by nonprofits,” Billingsley said. “Therefore, they really will not be able to receive Renaissance Zone benefits, so it makes sense to take them out of the zone.”

The two replacement blocks to be added are between 21st Avenue and 24th Avenue Northwest, west of the airport, along North Broadway. Among properties in the proposed new area are the Economy Hotel, Pinkerton Animal Hospital, Watts Alterations, The Vegas Hotel, Hardees and some vacant properties.

“You’ve seen through the years how our Renaissance Zone program has helped revitalize our downtown, and the north end of our city, especially along Broadway, really needs some help right now,” Billingsley said.

Commissioner Jason Olson questioned the inclusion of about 50 homes in the new area.

“To me, these aren’t residences that are in blight,” he said. “But it gives them a tremendous advantage, if they want to make improvements, over the other residents of Minot when all of a sudden they receive a tax exemption, which that burden of their tax exemption is carried by the other residents of Minot for that period of time.”

Billingsley explained the block size is defined by law based on boundaries created by major streets running through the area. One of the new blocks falls between 21st and 22nd Avenues Northwest and between Broadway and Third Street.

The second block is surrounded by Broadway, 24th Avenue Northwest , Eighth Street Northwest and 22nd Avenue Northwest, which is a large area due to the absence of internal streets to serve as a boundary. It includes a number of residences.

“What I’m hearing is that normally you wouldn’t capture this huge residential area that really doesn’t need improvement – that you’re only doing that because of the rules of the zone. But does that still meet the purpose of what the Renaissance Zone is?” Olson asked.

Billingsley said he will check with the state to determine whether the block boundary can be adjusted to a property line rather than a street.

Homeowners can participate in a Renaissance Zone to receive five-year property tax relief on improvements of 20% or more of their homes’ values. “Most of the projects we’ve approved, they’ve been commercial. There have been a handful of homes, though,” Billingsley said.

In the past five years, Minot has had 10 Renaissance Zone projects, of which eight were for property tax exemptions and two for income tax exemptions, he said.

The 2023 Legislature revised Renaissance incentives to enhance benefits, and Minot is looking to adopt those new benefits in its program.

Currently, tax exemptions for improvements are limited to five years. Under the new state law, the limit is five years for an investment of 50% of the building’s value and eight years for investments of 75% of value.

Also, state law allows a recipient of tax incentives from a Renaissance Zone to become eligible to participate again after 30 years.

“Our Renaissance Zone was adopted in 2001,” Billingsley said. “Our first project that was approved was Planet Pizza on Broadway, and that project was completed in 2003. So therefore, any projects would not be eligible for this second benefit until the year 2033.”

He added most properties aren’t likely to require another investment of 50% of their value until 50 to 60 years after the original improvements.

Another law change allows cities to decide whether their Renaissance Zones should be renewed every 10 years rather than every five.

Commissioners tabled the city’s Renaissance amendments to allow more time for research before making any decisions.