| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to economic development; creating the tax-stressed cities demolition grant |
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| 3 | 3 | | 1.3 program; creating an account in the special revenue fund; requiring reports; |
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| 4 | 4 | | 1.4 appropriating money; proposing coding for new law in Minnesota Statutes, chapter |
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| 5 | 5 | | 1.5 116J. |
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| 6 | 6 | | 1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 7 | 7 | | 1.7 Section 1. [116J.579] TAX-STRESSED CITIES DEMOLITION GRANT PROGRAM. |
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| 8 | 8 | | 1.8 Subdivision 1.Definitions.(a) The definitions in section 116J.572 apply to this section |
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| 9 | 9 | | 1.9and the terms defined in this subdivision have the meanings given. |
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| 10 | 10 | | 1.10 (b) "Commissioner" means the commissioner of employment and economic development. |
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| 11 | 11 | | 1.11 (c) "Qualifying property" means a property located in a tax-stressed city where: |
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| 12 | 12 | | 1.12 (1) all structures on the property have been vacant for at least one year before the date |
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| 13 | 13 | | 1.13of application; |
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| 14 | 14 | | 1.14 (2) the structures on the property constitute a threat to public safety because of inadequate |
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| 15 | 15 | | 1.15maintenance, dilapidation, obsolescence, or abandonment; and |
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| 16 | 16 | | 1.16 (3) none of the structures on the property are listed on the National Register of Historic |
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| 17 | 17 | | 1.17Places. |
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| 18 | 18 | | 1.18 (d) "Tax-stressed city" means a statutory or home rule charter city with a net tax capacity |
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| 19 | 19 | | 1.19tax rate, as defined in section 275.08, subdivision 1b, paragraph (a), greater than or equal |
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| 20 | 20 | | 1.20to 125 percent for taxes payable in the previous calendar year. |
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| 21 | 21 | | 1Section 1. |
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| 22 | 22 | | REVISOR SS/RC 25-0116001/07/25 |
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| 23 | 23 | | State of Minnesota |
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| 24 | 24 | | This Document can be made available |
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| 25 | 25 | | in alternative formats upon request |
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| 26 | 26 | | HOUSE OF REPRESENTATIVES |
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| 27 | 27 | | H. F. No. 203 |
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| 28 | 28 | | NINETY-FOURTH SESSION |
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| 29 | 29 | | Authored by Olson01/23/2025 |
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| 30 | 30 | | The bill was read for the first time and referred to the Committee on Workforce, Labor, and Economic Development Finance and Policy 2.1 Subd. 2.Establishment.The commissioner shall establish a tax-stressed cities demolition |
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| 31 | 31 | | 2.2grant program to provide grants for 50 percent of the demolition costs for qualifying |
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| 32 | 32 | | 2.3properties located in tax-stressed cities. |
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| 33 | 33 | | 2.4 Subd. 3.Applications.(a) To obtain a grant under this section, a development authority |
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| 34 | 34 | | 2.5shall apply to the commissioner. The governing body of the municipality must approve the |
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| 35 | 35 | | 2.6application by resolution. |
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| 36 | 36 | | 2.7 (b) The commissioner shall prescribe and provide the application form. The application |
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| 37 | 37 | | 2.8must include at least the following information: |
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| 38 | 38 | | 2.9 (1) identification of the site; |
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| 39 | 39 | | 2.10 (2) a detailed estimate of the cost of demolishing the site; |
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| 40 | 40 | | 2.11 (3) the manner in which the municipality shall pay for the remaining 50 percent of the |
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| 41 | 41 | | 2.12demolition costs from nonstate sources; |
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| 42 | 42 | | 2.13 (4) evidence that the site is a qualifying property, as defined in subdivision 1; |
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| 43 | 43 | | 2.14 (5) evidence that the municipality where the site is located has a financial need for |
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| 44 | 44 | | 2.15assistance with the demolition costs; and |
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| 45 | 45 | | 2.16 (6) any additional information or materials the commissioner prescribes. |
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| 46 | 46 | | 2.17 Subd. 4.Priority for grants.The commissioner shall select applications to receive |
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| 47 | 47 | | 2.18grants based on consideration of: |
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| 48 | 48 | | 2.19 (1) the financial need of the applicant for assistance with the demolition costs; and |
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| 49 | 49 | | 2.20 (2) the degree of threat to public safety posed by the vacant structures on the site. |
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| 50 | 50 | | 2.21 Subd. 5.Creation of account.A tax-stressed cities demolition grant program account |
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| 51 | 51 | | 2.22is created in the special revenue fund in the state treasury. Money in the account is |
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| 52 | 52 | | 2.23appropriated to the commissioner for grants as provided in this section, including the |
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| 53 | 53 | | 2.24commissioner's administrative costs to make such grants, and must be expended only as |
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| 54 | 54 | | 2.25provided in this section. Money in the account is available until spent and annual |
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| 55 | 55 | | 2.26administrative costs shall equal no more than five percent of the annual appropriation to |
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| 56 | 56 | | 2.27the account. |
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| 57 | 57 | | 2.28 Subd. 6.Reports to legislature.By January 15, 2026, and each January 15 thereafter, |
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| 58 | 58 | | 2.29the commissioner must submit a report to the chairs and ranking minority members of the |
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| 59 | 59 | | 2.30legislative committees having jurisdiction over economic development that details the use |
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| 60 | 60 | | 2.31of grant funds. |
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| 61 | 61 | | 2Section 1. |
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| 62 | 62 | | REVISOR SS/RC 25-0116001/07/25 3.1 Sec. 2. TAX-STRESSED CITIES DEMOLITION GRANT PROGRAM; |
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| 63 | 63 | | 3.2APPROPRIATION. |
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| 64 | 64 | | 3.3 $2,246,000 in fiscal year 2026 and $2,246,000 in fiscal year 2027 are appropriated from |
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| 65 | 65 | | 3.4the general fund to the commissioner of employment and economic development for deposit |
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| 66 | 66 | | 3.5in the tax-stressed cities demolition grant program account under Minnesota Statutes, section |
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| 67 | 67 | | 3.6116J.579. |
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| 68 | 68 | | 3Sec. 2. |
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| 69 | 69 | | REVISOR SS/RC 25-0116001/07/25 |
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