The Department of Commerce presented its annual report on Renaissance zones to the Tax Reform and Relief Advisory Committee, saying the program continues to support downtown rehabilitation and redevelopment across the state.

Ricky Rourke, manager of the Renaissance Zone program at Commerce, told the committee the 2024 report covers calendar-year activity. The department recorded 75 project approvals and 41 project completions in 2024. Since the program began in 1999, staff said, more than 2,100 projects have been approved and nearly 1,700 projects completed; as of 2024 there were 53 active Renaissance zones statewide.

Rourke said estimated state income tax exemptions associated with completed projects in 2024 totaled about $437,590 (single-family, business and investor exemptions combined). The department estimated property tax exemptions for completed projects in 2024 at a little over $2.1 million.

Commerce reported program outcomes from a survey of participating communities: in 2024 the program accounted for seven new businesses, 12 business expansions, 28 commercial buildings constructed or rehabilitated, 131 new residential units created and approximately 60 new jobs tied to projects completed that year. Rourke said 22 of the 41 completed projects in 2024 were in towns with population under 5,000.

Rourke highlighted examples: the city of Beach reported a 35% increase in property value in its Renaissance zone area and an improvement in taxable value after multiple projects, while Bismarck reported more than $43.3 million in total investment in Renaissance projects since 2020, with a combined zone valuation rising from about $89.1 million in 2003 to $251.9 million by a recent September estimate.

The Commerce report noted overlap between TIF (tax increment financing) districts and Renaissance zones can occur but is rare: only Fargo and Grand Forks had properties in both programs, and the department said most projects received benefits from only one program. Rourke said communities generally avoid allowing projects to "double dip" and that local discretion and local approvals govern use of incentives.

Committee members asked about extension and renewal processes (communities must update development plans, obtain county and city letters of support and hold public hearings) and whether outreach was adequate to small towns with limited staff to pursue zones. Rourke said Commerce provides a program fact sheet, attends city conferences and helps communities adopt plans; some small towns rely on regional councils for application assistance.

The department was asked to provide maps of Renaissance zones, trend charts showing annual applications since program inception, and further detail on project-level benefits for future committee meetings.