GUIDELINES FOR RENAISSANCE ZONE PROJECTS

 

The proposed projects in the Milnor Renaissance Zone must be submitted to and approved by the Milnor Zone Authority, Milnor City Council and the North Dakota Division of Community Services prior to any construction, renovation or rehabilitation of buildings and structures in the Zone.  Each project must meet the goals, objectives and policies of the Renaissance Zone.

 

PROCESS

The property owner consults with the City Renaissance Zone Administrator and shall provide the following application information for review and approval by the City Zone Authority.

a.       Legal description and street address for the proposed project.

b.       Name and address of the current property owner(s) with Social Security Numbers(s).

c.       Name, address, phone and description of the business entity with Federal Tax ID Number.               

d.       Current use of property.

e.       Square footage for the lot and each floor separately particularly if the applicant wishes to apply for state credit for historic buildings.

f.        A letter indicating consultation by the North Dakota Historical Society if there is a rehabilitation project for a historic building.

g.       List the type of investment the applicant wishes to undertake such as purchase, rehabilitation or lease.

h.       Date of transaction for the subject property especially for properties intended to be rehabilitated.

i.         Description of improvement including site plan and rehabilitation plan.

j.         Description of the scope of work, including a detailed cost estimate for the work to be completed.

k.       Estimate of the value of the building upon completion of project.

l.         Documentation of the project costs for rehabilitation projects.

m.     Evidence that the applicant is current on state and local taxes and a certificate of Good Standing from the State Tax Commissioner and proof of payment of local real estate taxes.

 

CRITERIA

The City of Milnor strongly supports investment in the Renaissance Zone to rehabilitate the deteriorating properties and to minimize the existence of vacant structure to enhance and increase the tax base.  The property rehabilitation is subject to the requirements of the City’s Development Guide, Zoning Ordinance, Subdivision Regulations, Building Code, other applicable city ordinances and the provisions of the Renaissance Zone Development Plan.  To qualify as a Renaissance Zone Project, a proposal must meet the following criteria.

 

Existing Residential Uses

a.       Property ownership must be transferred after approval of the application by the City Council and by the North Dakota Division of Community Services.

b.       Property must not have been a part of a previous zone project.

c.       The project must bring the property into compliance with all current building related codes regardless of the occupancy or vacancy of the building.

d.       The project must eliminate all deteriorated parts of the building.

e.       Property owner must meet state requirements and make capital improvement equal to or greater than:

·         20% of the true and full value of property prior to improvements.

·         $15,000 of capital investment.                                                     

f.        Proposed capital improvements must substantially improve the life expectancy of the property.  Capital improvements include, but not limited to, replacement or updating of roof, foundation, structure, siding, windows, doors, electrical, plumbing, heating and cooling systems.  It does not include new floor covering or furnishing.  Cabinetry may be included if basis for improving life expectancy can be determined.

g.       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 Construction

All new residential construction must meet the zoning and building requirements of the City of Milnor including the provisions of this plan.

 

Existing Commercial Uses

a.       Property ownership must be transferred after approval of the application by the City Council and North Dakota Division of Community Services.

b.       Property must be a conforming use and must not be a part of a previous zone project.

c.       Project must bring property into compliance with zoning and building related codes.

d.       Property owner must make capital improvements equal or greater than:

·         50% of the true and full value of the property prior to improvements.

·         $15,000 of capital improvement.

e.       The project must eliminate all deteriorated parts of the building(s).

f.        Proposed capital improvements must substantially improve the life expectancy of the property.  It includes, but is not limited to, replacement or updating of roof, foundation, structure, siding, windows, doors, electrical, plumbing, heating and cooling systems.  It does not include new floor covering, window treatment, wall coverings, cabinets or furnishings.

 

New Commercial Construction or Addition

All new commercial construction or additions must comply with zoning and building requirements of the City of Milnor and the provisions of this plan.

 

Commercial Leases

a.       Business/Tenant must meet all requirements of the Milnor Renaissance Zone.

b.       Special consideration will be given to new businesses that occupy vacant spaces or businesses that bring new and highly desired services to the community.

c.       Occupancy of vacant buildings and development of vacant lots is highly encouraged.

 

Local Real Estate Tax Exemption

a.       All new residential/commercial property that is eligible as a Zone project shall be eligible for 100% real estate tax exemption for a period of five years.

b.       All existing residential/commercial property that is eligible as a Zone project because of capital improvements shall be eligible for 100% exemption from the local real estate taxes for a period of five years on the increase in value due to capital improvement.

 

Single-Family Homes Purchase and Rehabilitation

The property owner or potential property owner must provide proof of ownership lease or purchase agreement as part of the application process.

 

 

2

Property Tax Exemption Process

The property owner, purchaser or lessee applies for property tax exemption by submitting the following:

a.       Proof of ownership, lease or purchase agreement.

b.       Project plan, including site plan and construction drawings.

c.       Timetable for project completion.

d.       Cost of the project and sources of funding.

e.       A letter of credit from bank or other financial institution.

The City Renaissance Zone Administrator will review the submitted documents to make a determination of eligibility for making recommendations to the Zone Authority for partial or full property tax exemption.

 

Renaissance Zone Project Completion Requirements

To qualify for Renaissance Zone benefits, the project must meet the following completion requirements:

a.       All landscaping must be completed.

b.       All eave troughs and downspouts must be attached.

c.       All steps and walkways must be completed.

d.       A concrete apron of at least 10 feet must be in place in front of garage.

e.       All structural work including roofing and siding must be completed.

f.        The residential/commercial property must be occupied.