By Richard Schmit
Valley City Times-Record

Valley City property owners excluded from the city’s Renaissance Zone may be added to the zone due to new state legislation.
“We try to provide some incentives, such as this program, to grow the community,” said Bobby Koepplin, Valley City Renaissance Zone committee member. The city adopted the program in 2000 after the 1999 Renaissance Zone Act.
The program offers five-year tax exemptions and credits to encourage investment in property, such as renovating or constructing buildings, inside the designated zone.
The new legislation, passed June 1, lets communities expand their renaissance zones. Instead of the zone decreasing with each completed block, a new block can be added in its place.
The city may add blocks near Valley City State University’s entrance when current blocks are complete, said Jim Knutson, Valley City’s Renaissance Zone committee chairman.
“The more Renaissance Zone area that we can identify within the city and encourage development is going to be to the benefit of the program and the city,” Knutson said.
City officials determine whether more activity can occur on a block and whether the block is complete. Once a block is complete, the city will not be allowed to add the block to the zone again, said Gordon La France, North Dakota Commerce Department Renaissance Zone manager.

‘More successful zone’
“We were one of the first zones to be approved in the state and probably one of the more successful zones outside the larger communities,” Knutson said. “In terms of communities our size, we’ve been a leader that people look toward to fashion their Renaissance Zones after.”
When Valley City started in the program, officials were allowed to choose 24 city blocks connected by streets. They selected 17 blocks along Main Street and seven blocks downtown.
“We took a look at all the properties that could have the most impact if they were to receive this benefit and make these improvements,” Koepplin said. “We tried to give those folks that would be making that investment help.”
Forty-one Valley City Renaissance Zone projects have been completed and three others are in the process of becoming active.
Legislation in 2007 let Valley City officials add three blocks within a half mile of the zone. Those blocks are on 12th Street and 5th Avenue northeast. The new legislation does not have the half-mile distance requirement.

‘Personal gain’?
Valley City resident Lloyd Nelson, whom some residents say is “outspoken” on the city’s Renaissance Zone, said the incentives are unnecessary.
“If they’re only building it for the tax incentive, then that’s the wrong reason,” he said. “If they really, really want to enhance Valley City, then build it anyhow. It’s a personal gain is what (property owners) are after.”
Koepplin said the Renaissance Zone is beneficial to both the city and property owners.
He said the tax exemption attracts property owners to renovate vacant properties. Also, the city will collect more taxes on the property after the five-year exemption than they would have if the property remained vacant, Koepplin said.
“Taxes on our existing buildings should come down if we have enough growth, so we all win even though we gave up something for five years,” he said.

Other changes
The Legislature this year also passed legislation to let those in the current zone of 27 city blocks now have more time to apply for Renaissance Zone tax exemptions.
A city can now apply for additional five-year increments when the original 15-year limit on the zone expires.
The legislation also made it so cities with more than 30,000 people, which receive $2.5 million in tax credits and public utilities, can now become part of a Renaissance Zone.
La France said 45 North Dakota communities are working with the program and 12 others have considered joining.

‘Community’s benefit’
All Valley City Renaissance Zone applications require background checks and public hearings. The City Commission approves applications.
“A Renaissance Zone is really just one way a community can redevelop something,” Knutson said. “There are other ways of doing it. Using a combination of both is to our community’s benefit.”
The city is working on a resolution to allow similar benefits to home and business owners outside the Renaissance Zone.
Property owners may stop by or call City Hall at (701) 845-1700 for more information on the Renaissance Zone.