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Bill would create matched demolition grants for Minnesota’s tax‑stressed cities
Summary
Senate File 227 would create a 50/50 matched grant program to help 'tax‑stress' cities pay for demolition of long‑vacant, unsafe structures; the author requested $2,246,000 per year and committee members discussed adding per‑project caps.
Senate File 227 would establish a demolition grant program for properties in designated 'tax‑stress' cities and requests $2,246,000 in each of fiscal years 2026 and 2027.
Senator Draheim told the Jobs Committee the bill is intended to help cities with limited tax base remove vacant, unsafe buildings that pose public safety risks and impede redevelopment. The bill ties eligibility to the statutory definition of a tax‑stress city referenced to Minnesota statute 275.08 and requires properties to be vacant at least one year and not listed on the National Register of Historic Places. The program would provide a 50/50 grant match and includes reporting requirements.
A fiscal analyst said the bill had not previously received funding from the jobs budget. Committee members asked whether the bill should include a cap per project so a single applicant would not consume the entire appropriation; the author said she was open to adding language limiting the grant amount per project and said the $2.246 million figure is adjustable. Senator Housley and others supported the concept and noted demolition requests also appear before the Capital Investment Committee.
Senate File 227 was laid over for possible inclusion.
