Minot committee refines economic development plan; backs PACE funding, Renaissance Zone and housing incentives

MINOT — The Minot Economic Development Plan Review Committee on April 11 approved edits to the draft economic development goals and agreed to recommend continued or prioritized support for several existing programs intended to spur business investment and housing development.

The committee approved text changes proposed by committee member Tyler that replace language such as “increase the tax base” with the phrasing “expand the tax base” and add language to “diversify industry sectors.” Tyler said the edits were intended to broaden the city’s approach beyond agricultural and energy reliance and the nearby Air Force base: “expand the tax base” and “diversify industry sectors.”

Why it matters: Committee members said the wording helps focus the plan on long-term, broad-based growth rather than relying on a small set of industries. Members tied the change to other recommendations in the draft — including support for state matching funds and incentives to encourage infill housing — that they said are intended to help Minot retain workers and attract new residents.

What the committee voted and recommended - Prioritize funding for state matching programs (PACE/FlexPACE): the committee voted to recommend that the city continue to prioritize PACE and FlexPACE program funding at levels adequate for their operation. Committee discussion emphasized that the Bank of North Dakota programs and the state’s magic-fund process are a leveraged, low-risk tool for small-business and primary-sector development and that the city has already placed $1,000,000 in the 2025 magic-fund budget and is considering an additional request in 2026. Committee members asked staff to track default and revolving schedules and reporting from the administering organizations.

- Continue Renaissance Zone program and encourage reallocation to underused areas: members voted to continue the city’s Renaissance Zone program and to encourage the Renaissance Zone board to consider moving zone districts from areas not utilizing the program into blighted corridors or key community entrances that could benefit from investment. Discussion stressed that the program is an investment tool to encourage rehabilitation of older properties and to limit sprawl.

- Maintain home-builder and homeowner property-tax exemptions: the committee recommended continuing the builder’s property-tax exemption (first full year) and the homeowner’s property-tax exemption (subsequent occupancy-based years) as tools to support new residential construction.

- Consider residential developer incentives: the committee voted to advance consideration of residential developer incentives including special assessments, developer tax abatements/credits and developer rebates (limited to 1–4 family residential projects). Members said these are tools to address workforce housing supply and should be studied with the Minot Association of Builders and city staff to identify guardrails, phasing and reporting to limit public risk.

Discussion highlights and context Committee members debated whether to call out restaurants and retail specifically in the plan’s examples. A motion to retain “restaurant” in the retail/service examples passed after members said restaurants contribute to quality-of-life and can be part of the city’s broader attraction strategy. Others urged broader language (e.g., “service sector” or “retail recruitment”) to avoid singling out one subsector, but the committee elected to keep restaurants in the working text.

On state matching funds (PACE/FlexPACE), committee members described the programs as a high-leverage tool administered with guardrails by the Service-Based and Planning Council and Bank of North Dakota. Members requested clearer reporting from the program administrators on revolving schedules and historic default rates before the item reaches council for budget decisions.

On the Renaissance Zone, members asked staff and the Renaissance Zone board to consider a cost/benefit review for projects already completed under the program and to provide a periodic report showing estimated foregone taxes, the increased assessment after projects complete and the approximate payback period. The committee noted several recent project examples (presented by staff) showing estimated payback on the city’s foregone property tax in a few years for some downtown rehabilitation projects.

On housing, the committee discussed several approaches to accelerate residential development: (1) special assessments or public financing of upfront infrastructure for targeted subdivisions, (2) developer rebates or short-term abatements for new lots, and (3) developer tax abatements. Members stressed these would be limited to 1–4 family residential projects and should include phasing and consumer protections so individual buyers are not surprised by assessments.

What’s next The committee will forward the recommended language changes and the set of program recommendations to city council for consideration. Staff will be asked to gather additional reporting from PACE/FlexPACE administrators and to work with the Renaissance Zone board and the Minot Association of Builders to develop implementation and reporting details for the housing-incentive options.

Ending note Committee members said they see the package as a toolbox of mostly already established programs rather than a request for large new appropriations; several members emphasized that any funding or bonding decisions would be council-level choices and that safeguards and reporting should be part of recommendations sent to council.