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Demolition Loan Program

Our traditional Redevelopment Grant Program works well on sites where there are costly impediments to a planned or proposed redevelopment project. But sometimes communities need assistance with demolition and other redevelopment activities on sites where there is no current development plan or where future development visions are hindered by current blight. In some cases, communities may need to address more immediate public safety concerns or hazardous conditions on a site before considering future redevelopment options.

The Demolition Loan Program meets those needs by helping development authorities with the costs of demolishing blighted buildings on sites that have future development potential but where there are no current development plans.

Eligible Applicants

Development authorities, including cities, counties, port authorities, housing and redevelopment authorities, and economic development authorities.

Eligible Costs

Demolition activities, including interior remediation such as asbestos abatement. Loans would pay up to 100% of demolition costs for a qualifying site. The loans may also assist with site acquisition costs.

Loan Terms and Conditions

Property and buildings must be publicly owned. The following terms apply:

  • Loans will be low-interest (2%)
  • Loans will be interest-free for first two years
  • Principal and interest payments will start in year three
  • Loan terms cannot exceed 15 years

If the site is developed, the remaining principal and interest (up to 50% of the loan) could be forgiven based on development benefits.

Call for Applications

The Brownfields and Redevelopment Unit is soliciting applications for grant funding for Redevelopment projects through the Redevelopment Grant and Demolition Loan Programs.


Workshops on the grant process will be held. Dates and locations below.

Location Venue Date Time
West St. Paul Wentworth Library June 20 9:30 a.m.
Sandstone North Pine Government Center June 26 1:00 p.m.
Marshall Red Baron Center July 6 1:00 p.m.
Fergus Falls Fergus Falls Library July 11 11:30 a.m.


The deadline for the submission of applications is 4:00 p.m. on Tuesday, August 1, 2023.

By US Mail or Courier Prior to the due day: Proposals must be sent to the Department of Employment and Economic Development, Brownfields and Redevelopment Unit, 1st National Bank Building, 332 Minnesota Street, Basement Mail Room, St. Paul, MN 55101-1351. The DEED mail room will continue to receive mail at 1st Bank until the mail room operations move can be completed.

Three complete sets of application documents are required for each project (one original on paper, one additional set on paper and a third on a flash drive).They must be submitted by the deadline to be considered for funding.

Due Day Drop Off: Applications that will be hand-delivered on August 1 between the hours of 8:00 a.m. and 4:00 p.m. can be dropped off at the Great Northern Building, 180 East 5th Street, the second block east from the 1st National Bank Building. Applications may be left on a cart in the 12th floor elevator lobby.


Demolition Loan Application - due February 1 and August 1.

For More Information

Kristin Lukes at 651-259-7451 or 1-800-657-3858.

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