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HF 4551

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/23/2022 10:40am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/23/2022

Current Version - as introduced

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A bill for an act
relating to economic development; creating the tax-stressed cities demolition grant
program; creating an account in the special revenue fund; requiring reports;
appropriating money; proposing coding for new law in Minnesota Statutes, chapter
116J.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [116J.579] TAX-STRESSED CITIES DEMOLITION GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in section 116J.572 apply to this section
and the terms defined in this subdivision have the meanings given.
new text end

new text begin (b) "Commissioner" means the commissioner of employment and economic development.
new text end

new text begin (c) "Qualifying property" means a property located in a tax-stressed city where:
new text end

new text begin (1) all structures on the property have been vacant for at least one year before the date
of application;
new text end

new text begin (2) the structures on the property constitute a threat to public safety because of inadequate
maintenance, dilapidation, obsolescence, or abandonment; and
new text end

new text begin (3) none of the structures on the property are listed on the National Register of Historic
Places.
new text end

new text begin (d) "Tax-stressed city" means a statutory or home rule charter city with a net tax capacity
tax rate, as defined in section 275.08, subdivision 1b, paragraph (a), greater than or equal
to 125 percent for taxes payable in the previous calendar year.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner shall establish a tax-stressed cities demolition
grant program to provide grants for 50 percent of the demolition costs for qualifying
properties located in tax-stressed cities.
new text end

new text begin Subd. 3. new text end

new text begin Applications. new text end

new text begin (a) To obtain a grant under this section, a development authority
shall apply to the commissioner. The governing body of the municipality must approve the
application by resolution.
new text end

new text begin (b) The commissioner shall prescribe and provide the application form. The application
must include at least the following information:
new text end

new text begin (1) identification of the site;
new text end

new text begin (2) a detailed estimate of the cost of demolishing the site;
new text end

new text begin (3) the manner in which the municipality shall pay for the remaining 50 percent of the
demolition costs from nonstate sources;
new text end

new text begin (4) evidence that the site is a qualifying property, as defined in subdivision 1;
new text end

new text begin (5) evidence that the municipality where the site is located has a financial need for
assistance with the demolition costs; and
new text end

new text begin (6) any additional information or materials the commissioner prescribes.
new text end

new text begin Subd. 4. new text end

new text begin Priority for grants. new text end

new text begin The commissioner shall select applications to receive
grants based on consideration of:
new text end

new text begin (1) the financial need of the applicant for assistance with the demolition costs; and
new text end

new text begin (2) the degree of threat to public safety posed by the vacant structures on the site.
new text end

new text begin Subd. 5. new text end

new text begin Creation of account. new text end

new text begin A tax-stressed cities demolition grant program account
is created in the special revenue fund in the state treasury. Money in the account is
appropriated to the commissioner for grants as provided in this section, including the
commissioner's administrative costs to make such grants, and must be expended only as
provided in this section. Money in the account is available until spent and annual
administrative costs shall equal no more than five percent of the annual appropriation to
the account.
new text end

new text begin Subd. 6. new text end

new text begin Reports to legislature. new text end

new text begin By January 15, 2024, and each January 15 thereafter,
the commissioner must submit a report to the chairs and ranking minority members of the
legislative committees having jurisdiction over economic development that details the use
of grant funds.
new text end

Sec. 2. new text begin TAX-STRESSED CITIES DEMOLITION GRANT PROGRAM;
APPROPRIATION.
new text end

new text begin $2,246,000 in fiscal year 2023 is appropriated from the general fund to the commissioner
of employment and economic development for deposit in the tax-stressed cities demolition
grant program account under section 116J.579.
new text end