Community Development Programs

Business Development Assistance Programs:

 Interest-Buy Down

Combined local and Bank of ND interest buy-down up to five years.

Call 701-748-6886 for more information. 

 

 HAZEN RENAISSANCE ZONE GUIDELINE

  Goals and Objectives of the Renaissance Zone (RZ)

The goals of the RZ are a result of the Economic Development/Diversification Strategic Plan completed in May 2023, a collaborative task coordinated between the City of Hazen, Hazen Community Development, Hazen Chamber of Commerce; and, Hazen Convention and Visitors Bureau. The strategic plan calls for a developed and attractive main street, adjacent areas for an industrial site for light industry, opportunities for residential, retail and service businesses; and,a hospitality district. The goals include:

o    Retaining & Growing Existing Businesses
o    Increasing Housing Stock, Diversity, and Affordability
o    Recruiting & Retaining Workforce
o    Increasing Variety of Businesses, Establishments, and Restaurants
o    Supporting Energy-Related Development
o    Enhancing Tourism/Visitor Economy
o    Supporting Growth in Childcare
o    Improving & Extending City Infrastructure
  1. The identified projects will be initiated and/or completed at a rate averaging about three to five per year.
  2. These include:
       o Buildings that may have to be demolished and replaced with newer structures;
o    New structures on vacant blocks that fit into the overall development plan for the city
o    Renovation of buildings, identified in the zone, to provide a better business atmosphere.
o    An increase of residential properties
  1. The Hazen RZ will be set up for an additional ten (10) years.
  2. There are approximately 100 potential projects identified. Other properties may be added.
  3. Incentivesincludingtaxabatementsandpotentialinterestbuy-downswillbeutilized where applicable.
  4. The RZ board along with the assistance of Hazen Community Development Corp will work with the applicant on the incentive package.

 

Selection of Projects in the Zone AA. SELECTION CRITERIA

 

  1. THE PROJECT WILL QUALIFY FOR COMMERCIAL RZ BENEFITS FOR EXISTING, RENOVATED, OR EXPANDED BUILDINGS, IF THE FOLLOWING CRITERIA ARE MET:
o    Project is consistent with the goals and objectives of the RZ.
o    The rehabilitation includes sufficient exterior improvement to eliminate deteriorating conditions.
o    The reinvestment on renovation that is equal to or exceeds 50 percent of the current true and full value of the building.
o    The improvements must comply with state building, energy, and handicap accessibility codes.
o    The investment is simply not a restructuring of ownership.
  1.      THE PROJECT WILL QUALIFY FOR RESIDENTIAL RZ BENEFITS FOR RENOVATED OR REHABILITATED PROPERTIES, IF THE FOLLOWING CRITERIA ARE MET:
o    Project is consistent with the goals and objectives of the RZ.
o   The rehabilitation includes sufficient exterior improvement to eliminate deteriorating conditions.
o    The reinvestment or renovation totals no less than 20 percent of the current true and full value of the building.
o   The improvements must comply with state building, energy, and handicap accessibility codes.
o    The resident is the primary resident. (An individual taxpayer's primary place of residence is the person's true, fixed and permanent home and is the place to which, whenever absent, the taxpayer intends to return.)
o    The investment is not simply a restructuring of ownership.
o    The homeowner applicant must sign a statement indicating the applicant is the primary resident of the property
  1. THE PROJECT WILL QUALIFY FOR NEW BUILDING AND ADDITIONAL RZ BENEFITS IF THE FOLLOWING CRITERIA ARE MET
o    The Project is consistent with the goals and objectives of the RZ.
o    The Structure meets the State building and energy code.
  1. TENANTS WILL QUALIFY FOR A ZONE PROJECT IF THE FOLLOWING CRITERIA ARE MET:  
o    The tenant must rent new or expanded space in the zone;
o    The tenant starts a business in the zone;
o   The tenant is leasing commercial space in a building that has been approved as a zone project.

 

Selection Process

 

  1. Initially, the RZ Committee will have targeted specific sites for qualification review.
  2. Individual applications will also be accepted from those properties not listed initially by the RZ committee.
  3. All meetings of the RZ board will be announced and open to the public.
  4. Proposed projects will be reviewed by the RZ committee, a HCD representative, and the City Planner.
  5. The Hazen RZ board will discuss the individual project and debate the merit and conformance with the City of Hazen Comprehensive Plan. The RZ board will make a recommendation to the Hazen City Commission.
  6. The city will then have to approve and certify that the project is a RZ project.
  7. The City Commission will provide final approval of projects during their regularly scheduled public meetings.

 

 Property Tax

 

  1. The city will approve special tax incentives for a renaissance zone project as follows:

o Single Family Residence

    • Purchase of existing property - partial property tax exemption of 10% of the property tax may not extend beyond eight taxable years after the date of acquisition or completion of rehabilitation.
    • Rehabilitation - partial property tax exemption of the increase in taxable value may not extend beyond eight taxable years after the date of acquisition or completion of rehabilitation.  (Qualification requirements are that the cost of the rehabilitation must be greater or equal to 20% of current true and full value.)
    • Construct new property-complete propertytaxexemptionof100%ofthetaxablevaluemay not extend beyond eight taxable years after the date of acquisition or completion of rehabilitation.

o    Real Property other than Single Family Residence (Business or Investment Property)

    • Purchase - partial property tax exemption of 25% of the property tax may not extend beyond eight taxable years after the date of acquisition or completion of rehabilitation.
    • Rehabilitation - partial property tax exemption of the increase in taxable value may not extend beyond eight taxable years after the date of acquisition or completion of rehabilitation. (Qualification requirements are that the cost of the rehabilitation must be greater or equal to 50% of current true and full value.)
    • Constructnewproperty-completepropertytaxexemptionof100%ofthetaxablevaluemay not extend beyond eight taxable years after the date of acquisition or completion of rehabilitation.
  1. Rehabilitation or new construction projects will be favored over purchases of existing property.  Renaissance zone projects involving purchases of existing property will be considered for residential or business property retention situations.
  1. All requests for property tax relief will be reviewed by the Hazen RZ board.

o Recommendations will be forwarded to the City Commission for final approval.

  1. Remaining property tax exemptions are transferable to new owners.

 

To apply for Renaissance Zone Incentives, contact:

Hazen Community Development Office

PO Box 717

Hazen, ND  58545-0717

701-748-6886

hcd@westriv.com