Art Rosenberg hopes the North Dakota Legislature will take a good idea and make it better. As manager of Renaissance Ventures, LLC, Rosenberg is giving fledging technology companies the financial and professional boost they need to succeed in designated renaissance zones in Fargo, West Fargo, Casselton, Valley City and Jamestown.

A renaissance zone, as defined by current North Dakota law, is typically a city center that needs revitalizing and redevelopment to attract businesses and residents. Certain types of tax exemptions and credits encourage investment in these properties.

In 1999, the North Dakota Legislature authorized creation of renaissance fund organizations, to operate as a source of venture capital for renaissance zone projects. North Dakota taxpayers who invest in such funds receive a 50-percent state tax credit on dollars invested.

Renaissance Ventures manages renaissance funds for five of the state's 10 renaissance zones. "It's a for-profit, investor-owned organization," Rosenberg said. "We have just over 30 investors. We have a board of directors and the board makes investment decisions." To date Renaissance Ventures has raised more than $2.5 million and has invested in three technology-based companies.

However, Rosenberg said, "In the last few years, there have been several projects we haven't been able to invest in because there was no physical way to locate those companies in downtown renaissance zones." That's why legislation is being proposed that would allow renaissance fund organizations to expand their reach beyond official renaissance zones.

Such a change would bode well for places like NDSU's Research and Technology Park, which also has the goal of incubating technology-based businesses.

"We would particularly like to take advantage of what is happening with the Center for Nanotechnology at NDSU and with aviation at UND in Grand Forks," Rosenberg said. The corporation also is interested in developing ag-related businesses in rural communities.

As the legislative session gets underway, Renaissance Ventures also is awaiting approval of a $3 million federal tax credit allocation. This would give fund investors a 39 percent federal tax break on their investment over a period of seven years.

"We can accept money now from people who have North Dakota tax liability. When you combine the two programs, it's a real solid investment opportunity. We are hoping Ñ by teaming those two Ñ to raise $5 to $7.5 million," Rosenberg said. "The problem in North Dakota is convincing investors that there are companies in this state that are solid investments and will provide them with returns similar to the investments made outside the state."

As Renaissance Ventures builds its track record, Rosenberg said, the goal is to recruit investors not with tax credits but with a track record of exceptional returns.