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