Developers seeking Tax Increment Financing (TIF) or a Payment in Lieu of Taxes (PILOT) deal from the City of Bismarck would have to meet a written set of qualifications, including, for TIF, an estimated property tax gain of at least $25,000 in the first year, under a draft policy on the agenda of the city's Vision Fund Committee on Monday, Nov. 16. The same agenda includes a request to extend a city Flex PACE commitment for a local IT managed service provider building its first permanent location.
The Details
- What: A draft "Fiscal Incentive Policy for City of Bismarck," dated Nov. 9, 2026, per the committee's agenda packet.
- Covers: Three tools: TIF revenue notes, which help pay for up-front public improvements and are repaid from the property's added value; TIF exemptions, a partial or total exemption from local property taxes on that added value; and PILOTs, an agreed amount or formula paid in place of assessed property taxes, the packet says.
- Tests: Under the draft, a project must be expected to further at least three objectives of Bismarck's comprehensive plan, and a TIF district's estimated property taxes must be at least $25,000 higher in its first year than current collections. The applicant must also show the project would not happen through private investment alone, and its projected rate of return, as determined by the city's financial advisor, could be no more than a reasonable rate for that project.
- Limits: The draft caps TIF exemptions at 15 years, TIF revenue notes at 25 years and PILOTs at 20 years. Developers using a revenue note would put up at least 10% of hard costs as equity.
- Public pieces: Improvements paid for with an incentive would have to serve more than one owner and end up publicly owned. Any parking built that way would have to be public and shared by several properties, the draft says.
- Fee: Applicants would pay a nonrefundable administrative fee of 5% of the public assistance.
The Backstory
Under the draft, development plans recommended for approval by a city board would go to a public hearing before the City Commission. If a TIF or PILOT runs longer than five years, Burleigh County, the Bismarck Public School District and the Bismarck Parks and Recreation District would each have 30 days to say whether they will take part. A taxing body that does not answer within 30 days would be counted as taking part, the draft says. Several spots, including which entity would receive applications and which board would review development plans, still read "[Entity TBD]" or "[Board TBD]."
The packet also includes a letter from the Bismarck Mandan Chamber EDC about Ahlgren Properties, LLC, which it describes as a local information technology managed service provider focused on cybersecurity, with 13 employees and plans to add seven over five years. The company was awarded a Vision Fund loan for the community portion of the Bank of North Dakota's Flex PACE program on Oct. 28, 2025, with the city's commitment set at $87,120.96, the letter says. The funds were to be accessed within one year, by Oct. 28, 2026, and construction has run longer than 12 months. Construction is expected to finish next spring, the letter says, and it asks for a seven-month extension to May 16, 2027. The Chamber EDC makes no formal recommendation. The packet does not give the project's address.
What It Means for Bismarck
TIF and PILOT deals affect how much property tax is collected, and for how long, on the land involved. The draft would put in writing how the city reviews requests for them. The agenda lists the item as "Draft Fiscal Incentive Policy" and does not state what action, if any, the committee will take. The committee makes recommendations to the City Commission, according to its Aug. 27 minutes.
Before You Go
- The special meeting starts at 4 p.m. Monday, Nov. 16, in the 4th floor Mayor's Conference Room of the City/County Office Building, 221 N. 5th St., per the agenda.
- Also on the agenda: Vision Fund financial statements, a Bismarck Business Pitch Challenge report and a target industry update.
Sources: Vision Fund Committee agenda, Nov. 16, 2026; Vision Fund Committee agenda packet, Nov. 16, 2026