15% less cost of business

 

 

Façade Improvement

The City of West Fargo Façade Improvement program provides the use of public funds to leverage private investment for exterior façade improvements to properties located within the city’s Sheyenne Street/Main Avenue corridor. The program is intended to encourage owners and business tenants of existing properties to restore or renovate their buildings, to improve the area’s physical characteristics and enhance the aesthetics of the commercial environment.

 

The City of West Fargo works with the business community to enhance commercial growth, encourage redevelopment and reinvestment, and to add significant physical improvements to the visual appeal of the property while improving entrance points of the city.

 

The program is offered through and administered by the City of West Fargo Economic Development office. For program eligibility requirements and further details, click the following links.

Façade Improvement Guidelines and Application

Façade Project Photo Examples

 

 

Renaissance Zone

The City of West Fargo Renaissance Zone program is a tool to help revitalize the community through tax incentives made available to qualifying residents and business owners to increase the economic vitality of the community. The program works to update and expand commercial properties and residences located in the Renaissance Zone.

 

The goal of the Renaissance Zone program is to reinvest in the existing commercial and residential districts through increased amounts of residential units and industrial developments, within the zone. The City of West Fargo partners with business owners and residents in the Renaissance Zone in various ways such as to create affordable housing, make improvements to the downtown area, and encourage new development.

The program is offered through and administered by the City of West Fargo Economic Development office. For program eligibility requirements and further details, click the following links.

Renaissance Zone Guidelines

Renaissance Zone Project Application

West Fargo Renaissance Zone Map

Renaissance Project Photo Examples

 

Payment in Lieu of Tax (PILOT) for Low Income Housing Tax Credit (LIHTC) Projects

The City of West Fargo recognizes the need for affordable, high-quality housing and making it available to residents. The PILOT for LIHTC program considers eligible projects for a 15 year PILOT. These projects serve various populations whether homeless individuals or families, elderly households, extremely low income households, or large families meeting the low income-housing threshold. The main program focus is that the amenities proposed in the building design focus on the community being served.

The City of West Fargo views these building projects as a positive economic impact on the community through increased construction activity, work activity out-sourced to local companies, and an opportunity to provide quality affordable housing to residents.

 

The program is offered through and administered by the City of West Fargo Economic Development office. For program eligibility requirements and further details, click the following links.

West Fargo Guidelines for Local Review for Tax Credit Applications

Application for LIHTC

LIHTC Project Photo Examples

 

 

PILOT for a New or Expanded Business

North Dakota Century Code ch. 40-57.1, first enacted in 1969, provides incentives in the form of property tax exemptions, payments in lieu of taxes, or a combination of both to a qualifying business. The incentives are granted, at the discretion of the city in which the property is located, to qualifying new or expanded revenue producing projects.

 

The City of West Fargo is interested in investing in businesses that create a positive economic impact to the community, through the creation of jobs and that can demonstrate growth potential. The City of West Fargo encourages new businesses that bring a core industry to the area, which would result in other spin off effects, i.e., attraction of other industries. 

The program is offered through and administered by the City of West Fargo Economic Development office. For program eligibility requirements and further details, click the following links.

ND Guidelines for New Industry and PILOT

West Fargo New Industry Guidelines

West Fargo PILOT Guidelines

Application for Property Tax Incentives for New or Expanding Businesses

PILOT Program Photo Examples

 

Tax Increment Financing (TIF)

The City of West Fargo offers Tax Increment Financing in several designated areas throughout the city (called TIF districts). These districts allow the property taxes generated due to the increased valuation of the properties to be used to pay off qualifying special assessments and in some cases the purchase of property. Those public improvements for the development district that are special assessed can include both local and regional infrastructure depending on the district. The tax increment exemptions will be granted over a period of time and depending on the number of years it takes for the property tax increments to cover the public improvement costs.   

The program is offered through and administered by the City of West Fargo Economic Development office. For program eligibility requirements and further details, please contact the Economic Development Office. 

TIF Application

PACE Loan

This is an interest buy down program funded by local government and the Bank of North Dakota. There are no loan size limitations or set owner equity requirements. Funds can be used for working capital and fixed assets. Loan can be written down to a maximum of 5% below prime. The PACE Fund assists North Dakota communities to expand their economic base by providing for new job development.
PACE Loan

Flex PACE Loan

The PACE family of programs at BND is designed to encourage specific types of economic activity within the State of North Dakota. In general terms, PACE provides an interest buy down that can reduce the borrower’s rate of interest by as much as 5%. The Flex PACE feature of the PACE program provides interest buy down to borrowers that do not fit into the traditional definition of a PACE qualifying business. Under Flex PACE, the community determines eligibility and accountability standards. Flex PACE allows communities the ability to provide assistance to borrowers with a business focus or need outside of the current requirements of PACE, such as jobs retention, technology creation with no new jobs, retail, smaller tourist businesses and essential community services.
Flex PACE Loan

Property Tax Exemption

Any new or expanding business project may be granted a property tax exemption for up to five years. To qualify, a project must be a new or expanded revenue-producing enterprise. All buildings, structures or improvements used in, or necessary to, the operation of the project qualify. Land does not qualify for an exemption.

In addition to, or instead of, an exemption, local governments and any project operator may negotiate payments in lieu of property tax for a period of up to 20 years from the date project operations begin.

Tax Increment Financing, or TIF, is a public financing method that is used for subsidizing redevelopment, infrastructure, and other community-improvement projects.

Angel Investment Fund

An individual, estate, trust, or corporation is allowed an income tax credit for investing in a North Dakota-based angel fund.

The credit is equal to 45% of the investment, up to a maximum credit of $45,000 per year. An investment must be at risk in the angel fund for at least 3 years to be eligible for the credit. An unused credit in the year of investment may be carried forward up to four years.

A taxpayer claiming this credit may not claim an income tax credit passed through to the taxpayer by the angel fund resulting from the angel fund's investment in a qualified business for purposes of the seed capital or agricultural commodity processing facility investment tax credit programs.

Corporate Income Tax Exemption

Newly established companies or expansions of current primary sector companies are eligible for up to a 5-year exemption from North Dakota state corporate income taxes. For business expansions, the exemption applies to the increase in corporate income attributable to the project and related to North Dakota revenues.

SBA 504

Makes fixed-rate long-term loans on fixed assets. Funding limits (SBA share of loan) are $1,000,000 or 40% of project cost whichever is less. Interest rate on SBA share is US Treasury note plus 1%. SBA will take a second mortgage and requires owner equity of a minimum of 10%.
SBA

Workforce 20/20

A program to assist North Dakota businesses and industries in retraining and upgrading worker's skills to meet demands of new technologies and work methods. Workforce 20/20 provides funding assistance to businesses to offset training costs for current workers and new employees when the business is new to the state, expanding employment in the state, introducing new technologies or introducing new production methods.
Workforce 20/20

Wage and Salary Credit

A corporation doing business in North Dakota for the first time may take an income tax credit equal to:

  • 1% of wages and salaries paid during the tax year for each of the first three years of operating, and
  • 0.5% of wages and salaries paid during the tax year for the fourth and fifth years.

A corporation qualifies for the credit if it:

  • Is engaged in assembling, fabricating, manufacturing, mixing, or processing of an agricultural, mineral, or manufactured product
  • Did not receive a property or income tax exemption
  • Was not created from reorganization or acquisition of an existing North Dakota business.

N.D.C.C. § 57-38-30.

 

Workforce Recruitment Credit

An individual, estate, trust, partnership, corporation, or limited liability company is allowed an income tax credit for employing extraordinary recruitment methods to recruit and hire employees for hard-to-fill positions in North Dakota.

The credit is equal to 5% of the compensation paid during the first 12 consecutive months to an employee hired to fill a hard-to-fill employment position and is allowed in the first year following the year in which the employee completes the 12 consecutive month employment period.

To be eligible for the credit the employer must pay an annual salary that is at least 125% of North Dakota's average wage and must have employed all of the following recruitment methods for at least six months to fill a position for which the credit is claimed:

  • Contracted with a professional recruiter for a fee;
  • Advertised in a professional trade journal, magazine or other publication directed at a particular trade or profession;
  • Provided employment information on a website for a fee;
  • Paid a signing bonus, moving expense or atypical fringe benefits.

In addition, if an employer claims the credit, an employee hired in a hard-to-fill position is allowed a deduction for a signing bonus, moving expenses, or atypical fringe benefits paid by the employer.

N.D.C.C. § 57-38-01.25

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