Mandan is taking advantage of state legislation allowing for the expansion of Renaissance zones while Bismarck also is considering adding to its zone.

Last week the Mandan City Commission approved expanding its Renaissance zone by three blocks. Tonight the Bismarck City Commission will consider a three-block addition as recommended the city's Renaissance zone authority. The zones provide communities with opportunities to rehabilitate aging downtown properties through reinvestment.

Mandan is adding three blocks along Main Street immediately east of the existing boundaries. Businesses in this area showing an interest in participating in the zone include Dakota Farms, LeRoy's Tesoro and Lillis Electric, according to Mandan business development director Ellen Huber. Stamart had previously indicated interest and there are several other commercial properties and businesses on these blocks that could benefit from inclusion.

Qualified projects, with approval from the city commission, can get tax benefits including a five-year, 100-percent property tax exemption and a five-year state income tax exemption on income earned from the business location.

There are 13 buildings in Mandan's central business district participating in the project. Private property owners have put $4.1 million of their money into the rehabilitation of buildings while receiving about $500,000 in local property tax exemptions and additional state income tax exemptions.

Bismarck's Renaissance zone was established in 2001 with a 21.5-block area, according to the planning department's Jason Tomanek. It was located in an area bounded by Washington Street to the west, Seventh Street to the east, the BNSF Railway tracks to the south and Avenue B to the north. In 2003 the zone was expanded 11 blocks, all south of the tracks, as legislators allowed zones to be determined by population.

The Bismarck zone authority is recommending that these areas be added to the zone: the old Bank of North Dakota block; the Wilhelm Motors lot-showroom block; the City-County Building block; and the west half of the block bounded by Avenue A on the south, Avenue B on the north, First Street on the west and Second Street on the east.

"The half block is able to be included because the state allows for a half block credit if a government building occupies space on a block within the zone," Tomanek said.

There are five types of zone projects: rehabilitation, purchase with major improvements, purchase only, lease and historical preservation and renovation.

Along with commercial properties, single family residences within the zone are also eligible for a five-year property tax exemption and a individual income tax credit of up to $10,000 a year for five years, with the purchase or rehabilitation of a residence which will be used as an individual's primary residence.

(Reach reporter Gordon Weixel at 701-250-8255 or gordon.weixel@bismarcktribune.com.)