Commercial Redevelopment Grants Program 2026

The Commercial Redevelopment Grant Program, administered by Iron Range Resources & Rehabilitation, offers funding support for the demolition of commercial and industrial buildings and the remediation of brownfield sites in northeastern Minnesota. Funded by the Taconite Environmental Protection Fund, the grant is aimed at preparing properties for new development opportunities that enhance local economic vitality. This grant is targeted toward local units of government and Tribal governments within the agency’s service area, particularly within the Iron Range. The primary goal of the program is to assist eligible entities in conducting full or selective demolition and environmental remediation, including abatement. The funding facilitates the transition of underutilized or contaminated properties into viable commercial sites ready for redevelopment. This is a competitive program, and projects are scored on a 100-point scale that considers criteria such as planned development, economic impact, job creation and retention, diversity and equity efforts, environmental mitigation, project readiness, and the extent to which the project removes blight. Applications demonstrating new or imminent redevelopment and those that address urgent health or public safety issues are prioritized. The program has a total of $1,000,000 available for Fiscal Year 2026 and requires a one-to-one cash match. In-kind contributions do not count toward the required match. All projects must submit their applications within nine months of the proposed construction start date. Applicants must first complete a pre-application through the FLUXX grants portal to assess project eligibility. Once deemed eligible, they may submit a full application. Applications are accepted beginning July 1, 2025, and will be reviewed on a rolling basis until May 29, 2026, or until funds are exhausted. To complete the application, municipalities and Tribal governments must provide various documents including a project narrative, certified cost estimates, scope of work, real estate insurance, and pre-demolition photos. Applicants seeking more than $50,000 must also include an organizational chart or list of principals. Additional requirements include compliance with Minnesota’s prevailing wage laws and municipal bidding laws for projects over $25,000. Certified payroll records and, in some cases, historic preservation reviews may also be required. Projects involving historic sites must be reviewed by the State Historic Preservation Office. Funding cannot be used for expenses such as fundraising, political contributions, or out-of-state travel. Grant payments are primarily made on a reimbursement basis, and all spending must be substantiated through documented expenditures. Reporting requirements include a progress report within 12 months of the grant start and a final report before payment completion. Monitoring visits and financial reconciliations are required for grants over $50,000, with more frequent checks for larger grants. Contact Chris Ismil at Chris.Ismil@state.mn.us or 218-735-3010 for more information. Accessibility support is available through Jordan Metsa at Jordan.Metsa@state.mn.us or 218-735-3061.

Applicants should ensure project readiness and secure funding commitments. Address all scoring criteria in the narrative.