This bill proposes the creation of the Tax-Stressed Cities Demolition Grant Program in Minnesota. The program, administered by the Commissioner of Employment and Economic Development, would provide grants covering 50% of demolition costs for qualifying properties in tax-stressed cities.

Key Provisions:

1. Definitions:

   • A tax-stressed city is a city with a net tax capacity tax rate exceeding 125% of the state average.
   • A qualifying property must have:
     • Been vacant for at least one year.
     • Structures posing a public safety threat due to poor condition.
     • No historic designation on the National Register of Historic Places.

2. Grant Application Process:

   • Development authorities must apply, with municipal approval via a resolution.
   • Applications must include:
     • Site identification and estimated demolition costs.
     • Proof of financial need and explanation of how the municipality will cover 50% of remaining costs from non-state sources.
     • Documentation proving the site qualifies under program guidelines.

3. Grant Distribution:

   • Priority will be given based on:
     • The financial need of the municipality.
     • The severity of the public safety threat caused by the vacant structures.

4. Program Funding:

   • A Tax-Stressed Cities Demolition Grant Program Account will be created within the special revenue fund.
   • Funds are appropriated to the Commissioner of Employment and Economic Development for grants and administrative costs, which are capped at 5% of the annual appropriation.

5. Legislative Reporting:

   • The Commissioner must submit an annual report (starting January 15, 2026) to the legislature on grant expenditures.

Appropriations:

• $2,246,000 is allocated for both Fiscal Year 2026 and Fiscal Year 2027 from the general fund to support this program.

This bill aims to assist financially strained cities in addressing public safety risks caused by abandoned structures, promoting economic development through targeted demolition funding.