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 The City of Bismarck recently established the CORE Incentive Programs to encourage rehabilitation, reinvestment, and new development in the downtown area of our community. These programs were created to stimulate new development in the downtown area and fund projects that will serve as the foundation for future downtown development and a healthy tax base. These incentive programs are funded by the tax increment financing fund for the downtown district and are available to property owners, developers, and tenants for projects within the downtown area. All CORE incentive awards are discretionary and will be considered on a case-by-case basis. These awards should not to be considered entitlements. Housing Incentive Grant The goal of the Housing Incentive Grant is to increase the residency rate and tax base in downtown Bismarck by encouraging the conversion of non-residential space, creation of new housing units, or substantial rehabilitation of existing units within the Tax Increment District. Attracting residential opportunities in the downtown district is imperative for maintenance of property values and new growth. Housing in a downtown creates a critical mass of people that enliven an area that is typically empty once the regular workday is through. The Housing Incentive Grant will provide monies for use in converting non-residential space to apartments, rehabilitating existing housing and building new housing units. Properties located within the Tax Increment District are eligible to participate in this program. The minimum required investment in a property is $20,000. The maximum grant amount is $70,000 with the incentive covering 20% of the project costs. Grant awards are not available for projects tied to state or federal programs that require below market rents or sale prices. Façade and Signage Grant The purpose of the Façade and Signage Grant is to promote and stimulate exterior maintenance of commercial buildings in order to enhance the overall appearance, quality and vitality of Downtown. Curb appeal is as important to a business as the product or service offered inside. Exterior appearance often is taken as a representation of what one will find once entering the front door and visual presentation is an important aspect of marketing and gaining customer loyalty. The Façade and Signage Grant was created as a matching grant to assist business owners in repairing or replacing doors, windows, walls, cornices, stairs, porches, railings, signage, lighting, and more. This program is a reimbursement grant requiring a 50/50 match. A minimum private investment of $750 is required. The maximum grant amount available for sign or awning improvements is $3,000 and the maximum grant amount available for façade improvements is $25,000. These maximums may include the cost of professional design fees, unless a grant was received from the Technical Assistance Bank program for façade design services. Technical Assistance Bank The Technical Assistance Bank (TAB) is a grant program that is designed to offer professional, technical assistance for the design and drafting of renovation and new construction projects. During the process of downtown revitalization, property owners are generally at a loss when it comes to building rehabilitation, especially when historic preservation is an issue. The Technical Assistance Bank allows developers, owners and tenants, interested in projects that will promote or improve downtown Bismarck, in accordance with the Central Business District Plan, to receive monetary assistance for the preliminary phases of potential projects in the Tax Increment District. Construction work is not eligible for Technical Assistance Bank funds. The program provides funding to owners or other entities to cover the costs of professional services from licensed architects and engineers at reduced rate. Services may include the design of projects, site studies or for rehabilitation options for the buildings within the Tax Increment District. Assistance would be available for projects that promote or improve the downtown in accordance with the Central Business District Plan. Applicants for this program are required to provide a 25% match of all costs. The maximum grant amounts available for this program are $2,100 for technical assistance for façade improvements and $4,900 for other technical services. Applicants are paired with professionals determined by a fixed rotation schedule, however, a client who is already working with a TAB participating firm may qualify for grant funds if a waiver is granted by the Renaissance Zone Authority. Sidewalk and Subsurface Infill Program The goal of the Sidewalk Subsurface Infill Program is to provide financial assistance in the form of grants that are to be used as part of an overall improvement project, for the infill of vaults that exist below the public right-of-way. Properties exist within the Tax Increment District that have basement vaults that extend beyond their property line under the public right-of-way (sidewalk). The existence of these vaults is a cause of sidewalk deterioration. The City of Bismarck recognizes the cost of an infill project to be a deterrent to property owners repairing said sidewalks and has created this incentive to assist in the cost. Property owners seeking assistance under this program are required to seek three written bids from bonded and licensed contractors. Upon identifying the lowest bid, the property owner may apply to the Renaissance Zone Authority for approval of a project on their property. If approved, the property owner may contract to have the work done and the City will remit payment to the contractor for the work completed on the project within the public right-of-way. Revolving Loan Fund The purpose of the Revolving Loan Fund (Fund) is to provide financial incentives in order to assist in the economic revitalization of the Tax Increment District, attract and retain a stable business and residential population, and stimulate private investment in the core of the Bismarck community. The Fund was created to provide financial assistance in the form of lower interest rate loans in the Tax Increment District. The Fund is financed by the creation of a pool through public and private investment and is to be used only for improvements to real property. The loan structure for this program requires that 60% of a project be funded by traditional financing, 20% by the Fund program and the remaining 20% come from owner equity, along with a personal guarantee. The minimum required investment in a project is $100,000 and the maximum revolving loan fund amount being $250,000. The term of a Fund loan is a 20-year amortization with a 10-year payout and the interest rate is 1% above the Fed Fund rate, adjusted annually.
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