Renaissance Zone
Renaissance Zone Application
2015 Renaissance Zone Map
City of Grafton Renaissance ZoneThe proposed Renaissance Zone consists of twenty-five blocks (four qualifying as half blocks) generally located in the old downtown commercial and residential area of Grafton. The property is fully outlined on the map within this plan and is specifically identified by parcel number and address. The purpose for selecting the proposed area is to revitalize the once bustling economic and social activity of the area, which has generally been deteriorating over time. Much of the area now consists of older housing and deteriorating commercial buildings, some of which are vacant. As this area of the City continues to decline in economic and aesthetic value, property values decrease, resulting in further neglect and decline in value.
The Zone Boundary was determined by a Renaissance Zone Committee, which was appointed by the Mayor. The Committee held meetings and a public hearing to receive citizen input regarding the proposed Zone. A final proposed Zone was determined by the Committee after considering comments made at the public hearing and a recommendation was made to the Grafton City Council. The City Council approved the recommendation at its regularly scheduled meeting on December 10, 2007. A description of each government tax-exempt building for the half blocks claimed is included with the attached inventory of properties.
A complete inventory of properties indicating condition is attached. Initial properties identified for development or redevelopment include the following:
- Former Mid-towne Motel located at 728 Manvel Avenue
- The former Walsh County Bank building located at 539 Hill Avenue
- The Western Plaza at 850 W. 12th Street
The proposed development or redevelopment of these properties will consist of rehabilitation and improvements to the structures in an effort to increase the overall value and appearance of the area.
The majority of the proposed Zone lies within the original town site of the City of Grafton and subsequently contains many older buildings with unique construction and design characteristics. Much of the area lends itself to redevelopment as it relates to the historical characteristics contained therein. It is the intent of the City of Grafton to preserve those historical characteristics to the best of its ability. Where applicable and practical, the City of Grafton, in cooperation with respective developers, may consult with the State Historical Society of North Dakota, the Walsh County Historical Society and/or area architects for guidance in preserving the historical assets within the proposed Zone.
The only local regulatory burdens which may affect renovation of historic properties and the incorporation of mixed-use development are local zoning and flood plain ordinances. Zoning variances may be requested to ease any regulatory burdens faced by developers and investors.
Mangement of the Renaissance Zone
The City of Grafton will administer all Zone activities through the City Economic Development Office. The Economic Development Director will serve as the initial point of contact for potential Zone applicants and will be responsible for guiding them through the application process. The local Zone Authority will be the Mayor’s Committee on Economic Development and will comprise a cross section of elected officials, businesspeople and citizens from the community.
The City will market its Renaissance Zone through the use of its web site and cable television local access channel as well as locally available print media. Direct mailings to owners of property in the Zone may be used along with informational packets available in the Economic Development office.
All open applications will be on the agenda of regularly scheduled Economic Development Committee meetings. Each open project will have a regular update given identifying the progress of the project and an expected completion date.
The Zone Authority will conduct annual reviews of current projects to determine if each project continues to maintain eligibility for tax exemptions. The Economic Development office will obtain current assessment records and other proprietary business records as part of their review. Any changes in eligibility, or transfer of Project ownership will be reported to the Division of Community Services by the City’s Assessor.
Individual files will be kept for each project/activity taking place in the Zone and will include, but not be limited to: applicant information; project proposals and costs; financial assistance provided; tax incentives, exemptions and credits requested and/or received; and an analysis of potential impact on state and local taxes. The Economic Development Director will work closely with the City Building Official and the City Assessor to insure accurate and complete records. The City Assessor will annually report all required information to DCS by September 1 of each year.
VISION
The City of Grafton intends to establish this Renaissance Zone for a period of 15 years. The City of Grafton’s vision for the Zone is that of a transformed district where utilization of commercial, residential and industrial resources are maximized while maintaining the historic attractiveness of the area and quality of life attributes of the entire City.
GOALS and OBJECTIVES
The City of Grafton’s goal for this Plan is to develop and structure a Renaissance Zone that will facilitate development, redevelopment and rehabilitation of the area, encourage mixed use development, promote the return of economic vitality to the area and create a thriving city center which will become a commercial, residential and recreational destination for residents and visitors to the City.
Promote the development and redevelopment of commercial structures in the Central Business District.
- Examine the potential for providing incentives such as attractive financing for new development and redevelopment.
- Develop strategies for public/private financing of improvements.
- Communicate with all Zone property owners to encourage participation.
- Establish a cohesive system of streetscape treatments.
- Develop a green area downtown.
- Encourage building owners to bring buildings into compliance with applicable building codes.
- Encourage the preservation and restoration of historical buildings.
- Encourage the replacement of substandard housing through the use of new housing incentives.
The vision, goals and objectives established in this Plan are consistent with the City of Grafton Comprehensive Plan, last updated in 1996. This plan specifically recommended:
- Improve or replace substandard commercial buildings in downtown Grafton.
- Provide additional housing in downtown buildings and along Hill Avenue, especially on the second floor of occupied buildings or in vacant and under-utilized buildings.
- Redevelop and occupy all vacant buildings with viable business entities by 12/01/2018
- Develop a green area downtown by 7/01/2012
- Develop a unified theme for the marketing of the community strengths by 12/01/2009
- Rehabilitate an average of two buildings per year after the first year in existence.
- Improve customer traffic by 3% annually
- Increase sales tax collections by 3% annually
- Increase values of property in the Zone by 10% annually
- For commercial Zone projects describe the local requirements for project approval. The city may, with DCS approval, revise the selection criteria and local requirements
- Consistency with the Renaissance Zone Development Plan
- Consistency with the City of Grafton Comprehensive Plan
- Conformity with applicable City Ordinances
- Taxpayer may not have been the beneficiary of a previous Zone project for the same purpose
- Property must be zoned according to its actual use
- Leases or improvements may not be made prior to application approval
- 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 Hill Avenue.
- 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.
- $10,000 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.
- Commercial Lessee may qualify under the following conditions:
- The use is consistent with the City’s Master Plan and Development plan.
- The lease is an extension of a current lease or a new lease, within a building rehabilitated as an approved Zone project.
Additional eligibility criteria for new construction:
- Property must be of conforming use.
- Property must be consistent with visions and goals of the City of Grafton, and consistent with the City’s Comprehensive Plan.
- Minimum investment of $20 in capital improvements (per square foot).
- For single-family Zone projects describe how the city will determine “primary residence,” and describe any local requirements that must be met, such as rehabilitation or other work to increase property value in order to be approved as a Zone project. The city may, with DCS approval, revise the local requirements.
- City utility billings
- Federal and State income tax returns
- Physical occupancy of the home
- Consistency with the Renaissance Zone Development Plan
- Consistency with the City of Grafton Comprehensive Plan
- Conformity with applicable City Ordinances
- Taxpayer may not have been the beneficiary of a previous Zone project for the same purpose
- Property must be zoned according to its actual use
- Improvements may not be made prior to application approval
- Additional scrutiny will be given to any business relocating from another community in North Dakota. The City of Grafton will not actively recruit businesses from inside North Dakota, and projects will be evaluated to insure such recruitment did not occur.
- 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 eliminate 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:
- 20% of the true and full value of the property prior to improvements.
- $10,000 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.
- Capital improvements associated with detached outbuildings qualify only after the project has met the qualifications for improvements to the main structure.
- None
- Describe the types of projects, if any, that the city will not approve for state and tax exemptions.
- Proposals determined non-compatible with the City’s Comprehensive Plan
- Businesses whose primary income is derived from selling adult entertainment
- Purchase of property without rehabilitation
All Renaissance Zone applications will be reviewed by the Renaissance Zone Committee within 10 working days from receipt of the complete application. If it is determined that the application generally meets the requirements for a Zone project, a hearing will be scheduled before the Renaissance Zone Committee within 30 calendar days. Public hearings will be held each month when there is a pending application. A copy of the application will be provided to each member of the Renaissance Zone Committee to allow for a thorough review of the proposed project prior to the hearing. A notice of the hearing will be placed in the official City newspaper one week prior to the hearing.
At the hearing, the applicant or his/her representative may make an oral presentation to the Committee. Other interested parties may also make oral presentations either supporting or opposing the application. During this hearing, the City Building Official and/or the City Assessor will provide information to the committee regarding the status of any proposed improvements and their anticipated impact on the true and full valuation of the subject property.
Following the hearing, the Renaissance Zone Committee will either continue deliberations to a future meeting or make a recommendation on the proposed project to the Grafton City Council and to the North Dakota Division of Community Services. The City Council will have final local approval and the Division of Community Services will be the final authority for state approval of all Renaissance Zone projects. For a project to commence, it must gain the approval of both state and local jurisdictions, and no eligible work may be started before all approvals have been granted.
Following approval of a Renaissance Zone project, the Economic Development office will continue to work with the applicant to ensure the project is completed as proposed and all required documentation is submitted.
During the review of all Renaissance Zone applications, City staff will evaluate the proposed project for its impacts on the property’s taxable valuation, its compliance with the City’s Comprehensive Plan, as well as other factors that may demonstrate a public benefit achieved by the project.
Property tax exemptions are granted for a period up to five years and are exclusive of the land on which buildings are situated.
- Property tax exemptions will be granted for 100% of the value of all qualifying newly constructed residential and commercial buildings for a period of 5 years.
- For Single Family Renaissance Zone Projects, property tax exemptions will be granted as follows:
- 100% exemption the first year;
- 80% exemption the second year;
- 60% exemption the third year;
- 40% exemption the fourth year; and
- 20% exemption the fifth year.
If the property owner makes capital improvements greater than 50% of the pre-construction true and full value, the exemption given will be 100% exemption for a period of 5 years.
- For qualifying commercial projects that have made capital improvements exceeding 50% of the pre-construction true and full value of the structure, property tax exemptions will be given for 100% of the value of the structure for a period of 5 years.
2015 Renaissance Zone Map
