1. A city may apply to the department of commerce division of community services to designate a portion of that city as a renaissance zone if the following criteria are met: a. The geographic area proposed for the renaissance zone is located wholly within the boundaries of the city submitting the application. b. The application includes a development plan. c. The proposed renaissance zone is not more than thirty-four square blocks, except in a city with a population of greater than five thousand the renaissance zone may exceed thirty-four square blocks at the rate of one additional block for each additional five thousand population to a maximum size of forty-nine blocks. (1) Population is based upon the most recent federal decennial census or federal census estimate. (2) If a city finds that renaissance zone projects have satisfactorily completed one or more blocks within the renaissance zone, the city may apply for and the department of commerce division of community services may approve withdrawal of those blocks from the renaissance zone and replacement of those blocks with other blocks that otherwise meet the requirements of this chapter. d. Except as provided under subdivision g, the proposed renaissance zone has a continuous boundary and all blocks are contiguous. e. The proposed land usage includes both commercial and residential property. f. The application includes the proposed duration of renaissance zone status, not to exceed fifteen years. (1) Upon application by the city, the department of commerce division of community services may extend the duration of renaissance zone status in increments of up to ten years. (2) If a renaissance zone designated under this chapter expires, a city may reapply for a subsequent renaissance zone in the same manner an original renaissance zone is formed under this section. (3) If a renaissance zone designated under this chapter expires, a city may reapply for renewal of the formerly expired renaissance zone in the current manner a renewal extension is granted by state law.

1. g. The proposed renaissance zone may have up to two exceptions to the continuous boundary and contiguous block requirements under subdivision d if the areas of the excepted noncontiguous blocks do not exceed three square blocks each.2. The department of commerce division of community services shall:- a. Review all applications for renaissance zone designation against the criteria established in this section and designate zones.
2. b. Approve or reject the duration of renaissance zone status as submitted in an application.
3. c. Approve or reject the geographic boundaries and total area of the renaissance zone as submitted in an application.
4. d. Promote the renaissance zone program.
5. e. Monitor the progress of the designated renaissance zones against submitted plans in an annual plan review.
6. f. Report on renaissance zone progress to the governor and the legislative management on an annual basis until all designated zones expire.3. The department of commerce division of community services shall consider the following criteria in designating a renaissance zone:- a. The viability of the development plan.
7. b. The incorporation and enhancement of unique natural and historic features into the development plan.
8. c. Whether the development plan is creative and innovative in comparison to other applications.
9. d. Public and private commitment to and other resources available for the proposed renaissance zone, including the provisions for a renaissance fund organization.
10. e. How renaissance zone designation would relate to a broader plan for the community as a whole.
11. f. How the local regulatory burden, in particular that burden associated with the renovation of historic properties and that burden associated with mixed use development, will be eased for developers and investors in the renaissance zone.
12. g. The strategies for the promotion, development, and management of the zone, including the use of a local zone authority if designated.
13. h. Any other information required by the office.4. The department of commerce division of community services may not designate a portion of a city as a renaissance zone unless, as a part of the application, the city provides a resolution from the governing body of the city that states if the renaissance zone designation is granted, persons and property within the renaissance zone are exempt from taxes as provided in sections 40-63-04 through 40-63-07.5. A city may not propose or be part of more than one renaissance zone.6.- a. A parcel of property may be exempted from property taxes under section 40-63-05 more than once. During the taxable years of eligibility for an exemption from property taxes under section 40-63-05, the property tax exemption transfers with the transfer of the property to a qualifying user. A parcel of property which previously received a property tax exemption under section 40-63-05 may not be eligible for a subsequent property tax exemption under section 40-63-05 until thirty years have lapsed from the completion date of the most recent project on the property.
14. b. The ownership or lease of, or investment in, a parcel of property may qualify for exemption or credit under section 40-63-04 more than once. During the taxable years of eligibility for an exemption or credit under section 40-63-04, the exemption or credit transfers with the transfer of the property to a qualified user and with respect to the year in which the transfer is made must be prorated for use of the property during that year.
15. c. Taxpayers eligible for a property or income tax incentive under this chapter for zone projects that are incomplete immediately preceding the expiration of the renaissance zone designation in the area in which the zone project is located

may continue to receive the incentive for the time period during which the taxpayer was originally eligible to receive the incentive.

d. For purposes of this subsection, the renaissance zone designation is considered expired when the proposed duration of renaissance zone and any subsequently granted extensions have lapsed.

7. A city may apply to the department of commerce division of community services at any time during the duration of a zone to expand a previously approved renaissance zone that is less than the maximum size allowed under subdivision c of subsection 1. If the expansion is approved by the department of commerce division of community services, the blocks in the expansion are eligible for up to fifteen years of renaissance zone status.

8. The use of grant funds as the sole source of investment in the purchase of a building or space in a building does not qualify a taxpayer for any tax exemption or credit available under the chapter, and grant funds may not be counted in determining if the cost of rehabilitation meets or exceeds the current true and full value of the building.

9. If a portion of an approved renaissance zone is not progressing, the city may request the department of commerce division of community services to permit deleting that portion and to make an adjustment of the boundaries to add another equal, contiguous area to the original zone.

10. If within a renaissance zone there is property that is included in a tax increment financing district, the city in which the property is located shall provide the department of commerce an annual report regarding any such property at the time requested by the department of commerce. The report required under this subsection must identify the property, provide the expected duration of inclusion of the property in the tax increment financing district and the renaissance zone, and identify any property and income tax benefits of the property and the expected duration of those benefits. The department of commerce shall deliver an annual report compiling the information required under this subsection to the legislative management interim committee on taxation issues or upon request of any other interim committee of the legislative management.