The legislative bill in discussion aims to initiate the Tax-Stressed Cities Demolition Grant Program in Minnesota. This program is designed to help financially assist cities that are considered "tax-stressed" in demolishing unsafe and abandoned buildings. To qualify as tax-stressed, a city must have a net tax capacity rate equal to or exceeding 125 percent for the previous year.

Under this program: - The state will cover 50% of the demolition costs for structures that have been vacant for at least a year, are unsafe, are not listed as historic, and pose a public safety threat due to their poor condition. - The remaining 50% of the demolition cost must be covered by the municipality through non-state funds. - Applications for grants must be approved by the municipality and submitted to the Minnesota Commissioner of Employment and Economic Development, who will also manage the program. - Grants will be prioritized based on the financial need of the applicant and the level of threat to public safety posed by the property.

The program will be funded by an account set up specifically for this purpose within the state's special revenue fund. An annual appropriation of approximately $2.2 million for fiscal years 2026 and 2027 will be provided for this initiative. Additionally, there will be regular reports to the legislature detailing the usage of the funds.

This bill is intended to address issues related to urban blight in tax-stressed cities by facilitating the removal of hazardous structures, thus potentially paving the way for new development and economic growth in those areas.