HomeMy WebLinkAboutDMCC Resolution No. 144-2024 (Authorizing Report to the Legislature Pursuant to Statute)DESTINATION MEDICAL CENTER CORPORA TION
RESOLUTION NO.144-2024
Authorizing Report to the Legislature Pursuant to Statute
The following Resolution was offered by R.T.Rybak,seconded by Brooke Carlson.
BACKGROUN D RE CITALS
A.Minnesota Laws,Chapter 143,Article 10 (the "Act")provides that by February
15 of each year,the Destination Medical Center Corporation ("DMCC")and the City of
Rochester (the "City")must jointly submit a report to the chairs and ranking minority members
of the legislative committees and divisions with jurisdiction over local and state government
operations,economic development,and taxes,to the Commissioners of Revenue and
Employment and Economic Development,and to Olmsted County.The DMCC and the City
must also submit the report as provided in Minnesota Statutes,Section 3.195.The report must
include the following specific elements:
(1)the development plan and any proposed changes to the development plan;
(2)progress of projects identified in the development plan;
(3)actual costs and financing sources,including the amount paid with state
aid under section 469.47,and required local contributions of projects
completed in the previous two years by the corporation,city,county,and
the medical business entity;
(4)estimated costs and financing sources for projects to be started in the next
two years by the corporation,city,county,and the medical business entity;
and
(5)debt service schedules for all outstanding obligations of the city for debt
issued for projects identified in the plan.
B.The DMCC and City staff have prepared a draft report,due on February 15,2024,
and attached as Exhibit 1.
RE SOLUTION
NOW,THERE FORE,BE IT RE SOLVED,by the Destination Medical Center
Corporation Board of Directors that the Chair or Vice Chair of the DMCC is authorized to
execute and submit the report to the Minnesota Legislature as required by the Act,in form
similar to the report attached here as Exhibit 1,as may be modified through further discussions
with the City,and to take such other actions as are necessary and appropriate to effectuate the
timely submission of the report to the Minnesota Legislature.
The question was on the adoption of the Resolution and there were 8 YEAS and 0
NAYS,as follows:
BOARD OF DIRECTORS
Destination Medical Center Corporation
Douglas M.Baker,Jr.
James R.Campbell
Brooke Carlson
Kim Norton
R.T.Rybak
Mark Thein
Pamela Wheelock
Paul D.Williams
YEA_x_
X
A_x_
A-XKX
OTHER
es
Pamela Wheelock,Chair
Destination Medical Center Corporation
1759653-2.DOCX
2
ROCHESTER
City of Rochester
ww.rochestermn.gov
February 8,2024
Destination Medical
Center Corporation
(DMCC)
201 4 street SE
Rochester,MN 55904
www .dmc.mn
The Honorable Erin Murphy
Chair,State and Local Government and
Veterans Committee
Minnesota State Senate
3211 Minnesota Senate Building
95 University Ave W
St.Paul,MN 55155
The Honorable Bruce Anderson
State and Local Government and Veterans
Committee
Minnesota State Senate
2209 Minnesota Senate Building
95 University Ave W
St.Paul,MN 55155
The Honorable Bobby Joe Champion
Chair,Jobs and Economic Development
Committee
Minnesota State Senate
3401 Minnesota Senate Building
95 University Ave W
St.Paul,MN 55155
The Honorable Rich Draheim
Jobs and Economic Development Committee
Minnesota State Senate
2225 Minnesota Senate Building
95 University Ave W
St.Paul,MN 55155
The Honorable John Marty
Chair,Finance Committee
Minnesota State Senate
3235 Minnesota Senate Building
95 University Ave W
St.Paul,MN 55155
The Honorable Ginny Klevorn
Chair,State and Local Government Finance
and Policy Committee
581 State Office Building
100 Rev.Dr.Martin Luther King Jr.Blvd.
St.Paul,MN 55155-1206
The Honorable Jim Nash
State and Local Government Finance and
Policy Committee
349 State Office Building
100 Rev.Dr.Martin Luther King Jr.Blvd.
St.Paul,MN 55155-1206
The Honorable Hodan Hassan
Chair,Economic Development Finance and
Policy Committee
Minnesota House of Representatives
597 State Office Building
100 Rev.Dr.Martin Luther King Jr.Blvd.
St.Paul,MN 55155-1206
The Honorable Jon Koznick
Economic Development Finance and Policy
Committee
Minnesota House of Representatives
281 State Office Building
100 Rev.Dr.Martin Luther King Jr.Blvd.
St.Paul,MN 55155-1206
The Honorable Liz Olson
Chair,Ways and Means Committee
Minnesota House of Representatives
479 State Office Building
100 Rev.Dr.Martin Luther King Jr.Blvd.
St.Paul,MN 55155-1206
February 8,2024
Page 2
The Honorable Eric Pratt
Finance Committee
Minnesota State Senate
2217 Minnesota Senate Building
95 University Ave W
St.Paul,MN 55155
The Honorable Ann Rest
Chair,Taxes Committee
Minnesota State Senate
328 Capitol
75 Rev.Dr.Martin Luther King Jr.Blvd.
St.Paul,MN 55155
The Honorable Bill Weber
Taxes Committee
Minnesota State Senate
2211 Minnesota Senate Building
95 University Ave W
St.Paul,MN 55155
Commissioner Matt Varilek
Minnesota Department of Employment and
Economic Development
Great Northern Building
180 E.5"Street,Suite 1200
St.Paul,MN 55101
Commissioner Paul Marquart
Minnesota Department of Revenue
600 North Robert Street
St.Paul,MN 55101
The Honorable Pat Garofalo
Ways and Means Committee
Minnesota House of Representatives
295 State Office Building
100 Rev.Dr.Martin Luther King Jr.Blvd.
St.Paul,MN 55155-1206
The Honorable Aisha Gomez
Chair,Taxes Committee
Minnesota House of Representatives
453 State Office Building
100 Rev.Dr.Martin Luther King Jr.Blvd.
St.Paul,MN 55155-1206
The Honorable Greg Davids
Taxes Committee
Minnesota House of Representatives
283 State Office Building
100 Rev.Dr.Martin Luther King Jr.Blvd.
St.Paul,MN 55155-1206
The Honorable Sheila Kiscaden
Chair,Olmsted County
Board of Commissioners
151 4th St SE
Rochester,MN 55904
Re:Destination Medical Center -February 15,2024 Report
Dear Senators,Representatives,Commissioners,and Chairs:
On behalf of the Destination Medical Center Corporation (the "DMCC")and the
City of Rochester (the "City"),we are pleased to submit the enclosed annual report on the
progress of the Destination Medical Center ("DMC")initiative,in accordance with
Minnesota Statutes,Sections 469.40 -469.47 (the "Act").
The Act requires that this report include five elements:(1)the DMC development
plan and any proposed changes;(2)progress of projects;(3)costs and financing sources,
including State funding and required local contributions,for recent projects;(4)estimated
costs and financing sources for future projects;and (5)debt service schedules for all
outstanding obligations of the City for debt issued for DMC projects.We discuss each of
these elements in the report.Below,we provide a summary of DMC's 2023 milestones,
as well as a brief background of Minnesota's largest economic development initiative.
February 8,2024
Page 3
Destination Medical Center:2023 Milestones
The DMC public-private partnership continued to flourish in 2023,ten years after
the Legislature enacted this historic economic development initiative.Two highlights of
the year deserve particular attention in the mission to position Rochester,Minnesota as
the world's premier destination for health and wellness.First,Mayo Clinic announced a
momentous investment in the Bold.Forward.Unbound.in Rochester initiative.Second,
qualified private investments from 2013 through 2022 neared $1.5 billion.
Mayo Clinic announced a $5 billion expansion in its Rochester campus,the largest
investment in Mayo's 160-year history and the largest investment in Minnesota history.
Mayo plans to add five new buildings with 2.4 million square feet of space,with a focus
on integrating in-person and virtual visits and shading the traditional lines between
inpatient and outpatient care and between in-person and digital health care.The project
features two new clinical buildings at the center of campus,located in the heart of the
DMC development district.Skyways and tunnels will connect the new facilities with
existing buildings,as well as downtown retail,housing,higher education facilities,and
other multi-purpose community assets.
The success of the DMC initiative through 2023 helped to build the foundation to
support Mayo Clinic's new multi-billion-dollar investment.Mayo Clinic's Bold.Forward.
Unbound.in Rochester initiative will expand its clinical,research,and education facilities
in Rochester and critically advance the DMC initiative.
As to private investment certifications,in 2023,we certified to the Minnesota
Department of Employment and Economic Development ("DEED")a total of
$199,088,689.42 for the year ending December 31,2022,which includes
$172,632,461.06 in Mayo Clinic investments and $26,456,228.36 in other private
investments.The cumulative total of Mayo Clinic and other private investments through
2022 is $1,461,132,648.74.In addition,as to transportation,the City certified City and
County transit contributions of $9,081,280.13 for 2022,qualifying for the maximum
disbursement of State transit aid of $7,500,000.
In addition to these certified investments,there are many other projects proposed
or under construction,the majority of which are private investments with no direct DMC
public assistance.A map of the DMC development district and key public and private
projects is attached as Exhibit A to the report.A summary of significant projects is
attached as Exhibit B to the report.
Destination Medical Center:Background
The Act established a unique public-private partnership to lead this historic
economic development initiative.The law also required private investment to lead the
public investment:it required $200 million in private expenditures before any State
February 8,2024
Page4
funding occurred.This threshold was surpassed in 2017,and more than $1.46 billion of
private funding has been certified through 2022.
The Act further established the partnership between the DMCC,the City,Mayo
Clinic,and Olmsted County.The DMCC Board of Directors is appointed by the Governor,
the City,the County,and Mayo Clinic.Key funding and strategy decisions require
approval by both the DMCC and the City Council.Specifically,the Act required the
preparation and joint approval of a development plan (the "Development Plan"),which
serves as the strategic framework for DMC's business and economic development
strategy.It includes land use,transportation and infrastructure planning,market
research,funding priorities,business and economic development,and market strategies.
After City approval,the DMCC adopted the Development Plan on April 23,2015.The
Development Plan must be updated not less than every five years.The Five-Year Update
was approved by the City and by the DMCC in 2020.The Ten-Year Update is underway
and is scheduled for approval in May of 2025.
The benefits of the DMC initiative may be measured in other ways.From the end
of 2015 through the first quarter of 2023,Mayo Clinic alone added approximately 6,500
employees in Rochester.Hundreds of housing units and tens of thousands of square feet
of bio-med-tech space have been developed,and hundreds of community members have
been engaged in the visioning and design of DMC public investments.Mayo Clinic's Bold.
Forward.Unbound.in Rochester.will lead transformational progress on all fronts.
For more information,including viewing the DMC Development Plan,public
meeting materials,project updates,investor and developer information,and market
research,visit www.dmc.mn.The City's website,www .rochestermn.gov,also provides
information on the DMC initiative.
Thank you for your consideration of this annual report.On behalf of both the
DMCC and the City,we welcome your comments or questions.We look forward to
continued progress on the Destination Medical Center initiative in 2024.
Panela WReick,Chair 74
Destination Medical Center Corporation
Enclosure
cc:Legislative Reference Library
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TABLE OF
CONTENTS
o
Summary of Five Statutory Elements 01
Statutory Element One-Development Plan 02-04
Statutory Element Two-Prag ress of Projects 05
Discovery Walk 06
Heart of the City-Phase One 07 loRiverfrontReimagined08
Bryk on Broadway 09
Soldiers Field Memorial Park 10
Mobility ll
Capital Improvement Plan (CIP)12-13
Statutory Element Three-Actual Costs and Financing 14-15
Statutory Element Four-Estimated Cost for Future Projects 16-18
Statutory Element Five-Debt Service Schedule 19
Exhibit A-Map of DMC Development District 20-21
Exhibit B-Summary of Major Projects 22-25
Projects without DMCC Funding 26-27
Exhibit C-Annual Certification of Mayo Clinic and others 28-39 1ExhibitD-Annual Certification of City Expenditures 40-42
Exhibit E-DEED Certifications 43-46
Exhibit F-City Debt Service Schedule 47-48
0
•Minnesota Statutes,Section 469.43,subd.8
requires that five elements be included in
this annual report.
Debt service schedules for all
outstanding obligations of the
City for debt issued for projects
identified in the plan.
FIVE
Actual costs and financing
sources,including the amount
paid under Minnesota Statutes
Section 469.47,and required
local contributions of projects
completed in the previous two
years by the DMCC,the City,
Olmsted County and Mayo Clinic.
ONE
The Development Plan and any
proposed changes to the
Development Plan.
liHREE
TWO
Progress of projects
identified in the
Development Plan.
FOUR
Estimated costs and
financing sources for
projects to be started in
the next two years by the
DMCC,City,Olmsted
County,and Mayo Clinic.
01
ONE
The Development
Plan and any
proposed
changes to the
Development
Plan.
o
0
2015 2016 2020 2020 2025
INITIAL FIRST SECOND FIVE TEN YEAR
ADOPTION AMENDMENT AMENDMENT YEAR UPDATE UPDATE
April 15,2015.Modification Modification The update can be found at Report expected
Development made to the made to the https://dmc.mn/investors-to be presented
Plan adopted.DMC Develop-DMC Develop-and-developers/for approval in 0mentDistrict.ment District.May2025
02
r
+,
Development Plan.
One of the primary goals of the Act was the adoption of a Development
Plan.In September 2013,the DMCC established specific goals and objectives
for the Development Plan:to create a comprehensive strategic plan,and
over the life of the project,to stimulate over $5 billion in private investment
that will be supported by $585 million in public funds,create 35,000-45,000
new jobs,generate $7.5 billion to $8.5 billion in net new tax revenue,and
achieve the highest quality patient,visitor,any resident experience ..
The Development Plan is the strategic framework for the DMC initiative,
establishing a comprehensive business and economic development strate-
gy.It includes land use,transportation and infrastructure planning,market
research,funding priorities,business and economic development,and
market strategies.Upon making the findings set forth in the Act,including
finding that the Cityhad approved the Development Plan,the DMCC adopt-
ed the Development Plan on April 23,2015.The Act requires that the Develop-
ment Plan be updated not less than every five years.The Five-Year Update
was approved by the City and by the DMCC in 2020.The Ten-Year Update is
underway and is scheduled for approval in May of 2025.
03
Development Plan cont.
04
2022202120202019201820172016
Private Investment Leads Public Investment.
2015
•CUMULA TIVE INVESTMENT IN MILLIONS
The Act required that private investment lead the
way for this private-public model of partnership.The
required private investment of $200,000,000 before
state funding would begin under the Act was met in
2077.The graph below depicts the cumulative private
investment,in millions of dollars,since 2073.
20142013
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}(){)lo--
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h{)()el-ol±LullII
t:1,600 -------------------------------.----,'i
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t
•f .Progress o projects
identified in the
Development Plan
According to the Act,a public infrastruc-
ture project must be approved by the DMCC
before it is proposed to the City.The DMCC
must review the project proposal for consis-
tency with the Development Plan.
Since the adoption of the Development
Plan on April 23,2015,0 number of projects
have been approved by the DMCC and the
City.A map of the DMC Development
District and key projects is included as
Exhibit A.A summary of major approved
projects in the DMC Development District
is attached as Exhibit B.
We wish to highlight the progress in 2023
of certain approved projects:
•Discovery Walk
•Heart of the City Phase One
•Riverfront Reimagined
•Bryk on Broadway
•Soldiers Field Memorial Park
•Mobility
•Capital Improvement Plan
DISCOVERY WALK
I
--:
'2'et
M%,
RE
THE BIG DIG:A family friendly event hosted to
bring excitement about the project.Sept 2022
Discovery Walk is a four-block linear parkway along 2nd Avenue SW.It is planned to
connect Annenberg Plaza to Soldiers Field Memorial Park and function as an extension of
the Heart of the City public realm project.Discovery Walk is designed to feel like a park and
to promote health,wellness,and innovation.It will also serve as a catalyst for future private
development in Discovery Square.Construction advanced significantly in 2023,including
the pedestrian ramp located in the 300 block,pedestrian lighting art,and the snow melt
system.Completion is anticipated in spring 2024.
0
HEART OF THE CITY PHASE ONE
.i '•was renovating th8±::;-:elements of Peace
and surrounding
It.was unveiled in
public realm proj-
atures universal
lements,sustain-
tegrated art and
infrastructure,t :'catenary lighting
tem.This project has
imulated new and$t ,expanded commercial and
retail businesses in thearea
and won the'2023 Award of
Excellence in Urban Design
from the American Society
of Landscape Architects.07
RIVERFRONT REIMAGINED
Following the City-initiated Downtown Waterfront S.E.Small Area Plan study
for a 60+acre area located southeast of the downtown core on the Zumbro River,
the City continues to lead development of this future mixed-use neighborhood.
In July 2022,the City adopted the Riverfront Small Area Plan as a preferred
plan to guide the transformation of the redevelopment area as a "front door"to
the river and gateway into downtown.In August of 2022,the City was awarded a
federal RAISE grant in the amount of $19.9 million for the Sixth Street Bridge
crossing the Zumbro River.In 2023,the project advanced with site preparation,
flood wall work with the Army Corps of Engineers,further design,and interim
site activation.
East and West side renderings of Riverfront Area.
BRYK ON BROADWAY
The Bryk on Broadway,located at 401 Broadway Ave N.,
opened in 2023 as a mixed-use,mixed-income apartment
4
building with rents at varying levels.Of the 180 workforce
\
housing apartments,54 units are income-restricted to thoseIatorbelow50%of the area median income,18 units toI
Cose at or below 60%of the area median incom1,and 108
t
units to those at or below 80%of the area median income.
Rendering of BRYK on Broadway
09
SOLDIERS
FIELD
MEMORIAL
PARK
("Soldiers Field")contains 150 acres of
memorials and active recreation space,
including 4,000 feet of riverfront.The north-
ern portion lies within the DMC Development
District and is featured in the.Development
Plan as an anchor of the Education and
Recreation Subdistrict.
This project also maximizes connections to
other key features of the DMC Development
District:Discovery Walk will connect the
Heart of the City to Soldiers Field and the
Sixth Street Bridge will link Soldiers Field to
the downtown waterfront area.
The public realm improvements within the
district feature an aquatics center,with lap
pool,bath house,wading pool,and outdoor
seating,new basketball courts,adding a trail
through the northeast corner of the park,
nature play area,community shelter,public
restrooms,and new public parking.
Importantly,this project combines federal,
State,City,and DMC funding sources to rein-
vigorate this public asset.Project improve-
ments are well underway and construction is
expected to conclude in 2024.
Soldiers Field Concept
F
A critical component of the Link
experience is the future develop-
ment of the West Transit Village
at the western terminus at
Second Street SW.The vision for
the West Transit Village extends
far beyond parking,with the
potential uses of mixed income
housing,retail,and childcare.
In 2023,Mayo Clinic selected a
team of development partners to
prepare design options for a
final site plan.
Lin
approved,(DEED)Development
@,'g $'£,m
$9,087,280.73 in City and County transit
contributions for 2022,qualifying for the
State's disbursement of $7,500,00 as the
annual maximum of state transit aid.
Progress continued on the approxi-
mately three-mile bus rapid transit project
known as "LINK."This project has applied
for the Federal Transit Administration (FTA)
Small Starts funding process.In 2022,the
City and Mayo Clinic entered a twenty-year
operating agreement in which Mayo Clinic
will cover the annual local match for oper-
ating costs and all riders may use the
system without paying fares.In 2023,
design work was nearly completed,and
-state and federal environmental reviews
•concluded.With the significant progress in
project planning and qualifying expendi-
tures,the City certified,and the Minnesota
Department of Employment and Econom-
MOBILITY•
Stations with
shelter,
heating,light,
and real-time
signage.
on-route
chargers.
Fare-free
service
for all riders.
Service every 5
minutes during
rush hours &10
minutes
other times.
CAPITAL IMPROVEMENT PLA N (CIP)
In addition to these projects,the DMCC and the City have approved a Capital Improvement Plan ("IP")
for public infrastructure projects for 2024.Projects identified in the CIP are categorized as follows:
Public Realm,Mobility,Strategic Redevelopment,and Streets and Sewers.
o
II
.!IId
DMC public realm projects continue to benefit from community co-design.
This process recruits those most impacted by a project to assist in reaching
previously underrepresented communities and perspectives.In the fall of 2023,
the DMC EDA trained a third cohort of community co-design leaders,resulting
in over 44 community leaders trained to advocate for co-design efforts within
their organizations.
The DMC-funded projects above reflect only a portion of the number and type
of public and private development projects in the DMC district.Early strategic
DMC investments in public infrastructure and commercial and residential proj-
ects successfully established Rochester as a destination for investment and
development.Other projects,which are now proceeding without the need for
public DMC support,include workforce and market-rate housing,extended stay
hotels for patients and companions,renovations to historic properties,
world-class medical care and research facilities,co-working space,small
business improvements,and more.
In addition to these transformative capital investments,the City and the DMC
EDA have successfully secured economic revitalization,sustainability,workforce,
and equitable community-building grants,including through DEED's Main Street
Economic Revitalization Program,Bloomberg Philanthropies Global Mayors
Challenge,and the McKnight Foundation.These grant awards,secured by the
DMCC's partners,support and augment the advancement of DMC priorities.
13
Actual Cost and
Financing
Sources
Actual costs and financing sources,including the amount paid under Minnesota Statutes,Section
469.47 and required local contributions of projects completed in the previous two years by the DMCC,
the City,Olmsted County,and Mayo.The Act requires that an annual certification of private investment
by Mayo Clinic and other private investors be made to DEED by April 1 of each year,and DEED must
certify that $200,000,000 of private investment has been made before any state funding may be paid.
This threshold was met and exceeded in 2017.The cumulative total amount of certified Mayo Clinic and
other private investments to date is $1,461,132,648.74.
In compliance with Minnesota Statutes,Section 469.47,attached is the annual certification of Mayo
Clinic and other private investment that was submitted to DEED on March 28,2023 (Exhibit Cl.
The annual certification of City expenditures,which was submitted to DEED on March 22,2023 is
also attached (Exhibit D).DEED conducted its own audit process of the certified expenditures and then
approved the expenditures.The DEED certifications,dated June 16,2023,are attached (Exhibit El.
In addition,please note the following information:
$39,565,314
o The 2024 combined operating and
capital improvements budget for
the DMC totals $39,565,314 a portion
of which (approximately $8 million)
is being paid for with funding other
than state funds.Of this amount
$3,718,569 will be provided by Olmst-
ed County from its 0.25%sales tax.
The remaining amount is to be provid-
ed by the City of Rochester from a
variety of City funding sources,includ-
ing its 0.25%DMC sales tax.In
addition,Mayo Clinic has pledged
financial and in-kind funding to the
DMC EDA in the amount of $1,531,700.
$127591189.36fQ
•Through December 31,2023,
General State Infrastructure Aid in the
amount of $127,591,189.36 has been
received.State Transit Aid in the
•amount of $7,500,000 has been
received through December 31,2023.
f09,soo.oo
•Through December 31,2023,
Olmsted County has contributed
$19,500,000.
$64.810.418.2Qj "
•Actual costs paid by the City from
commencement through December
31,2023 have totaled $64,810,418.21,
based on year-end unaudited costs.
The funding source was initially City
internal borrowing,which is being
repaid,along with the costs for new
projects and initiatives,by the City's
0.25%DMC sales tax.The City has
also issued capital debt for a new
parking ramp in the district.Just as the
Mayo Clinic investments and other
private investments have
underscored the commitment to DMC,
so too have the City contributions.
FOUR
Estimated Costs
and Financing
Sources for
Projects to be
started in the
next two years
by the DMCC,
City,Olmsted
County,and
Mayo Clinic.
•The Development Plan sets forth a framework and examples
of projects that may be considered for funding in the next
several years.Each project will be approved on an individual
basis.See also the report response to statutory elements "2"
and "3",
Highlights of the project:
First buildings open in 2029
2.4 million square feet of new space
Comparative Investments within Minnesota
Project complete by 2030
$500 million in sustaining projects
$5 billion investment
MAYO
CLINIC»0
e00ooO
$600M
ichesteres
Permit
Valuation
$646M
St.Croix
Bridge
US Bank
Stadium
$2.6 B
2024 State
of MN
Bonding
Bill
$2.7 B
SW Light
Rail
$3.2 B
Mayo
BOLD
FORWARD
UNBOUND
IN ROCHESTER 17
DMC CAPITAL PLAN PROPOSED 2024
DMC FUNDING
PHASE 2 (2020-2024)
DMC FUNDING
PUBLIC REALM
»@
2024 DMC FUNDING SOURCE
STATE GSIA
STATE GSIA
STATE GSIA
$1,000,000
$1,000,000
$500,000
Subtotal $2,500,000
{(0)a (e][@e]@Ie $35-50M
0
Chateau Theatre Improvements
and asset Preservation
Downtown Waterfront-
pre-Riverfront Development
St.Marys Place:Public Realm
Design and Construction
MOBILITY
,»,»'
Rapid Transit,including Second
Street Reconstruction and
Streetscape
STRATEGIC DEVELOPMENT
»,»'
Strategic Redevelopment
(Bio-med-tech,workforce
housing,downtown property
support
STREETS AND SEWERS
DESCRIPTIONStreets:Sixth Street Bridge SE,
Waterfront Connectivity
District Energy
Sewer:Construct Sanitary Sewer
Capacity Bypass on 3rd Ave SW from
2nd St SW to 4th St SW
OPERATIONS
DMC COUNTY
TRANSIT AID
DMC COUNTY
TRANSIT AID
STATE GSIA
STATE GSIA
STATE GSIA
STATE GSIA
$3,718,569
$5,577,854
Subtotal $9,296,423
$10,000,000
Subtotal $10,000,000
$4,000,000
$7,200,000
$1,500,00
Subtotal $12,700,000
1al/e}{eY
[e![e]el(eIeIo
$60-75M
Phase 2
Target
Range
$20-45M
Phase 2
Target
Range
$35-50M
0
•--·
a
el%
b.,»@•••
DMC Administrative Support
by City of Rochester
DMC EDA
City DMC Project Management
DMC Development Plan Update
CITY
CITY
CITY
CITY
STATE GSIA
$218,930
$100,000
$2,842,507
$1,157,454
$750 000Subtotal$5,068,891
2024 DMC
FUNDING TOTAL
$39,565,314
Phase 2
Target
Range
$15-20M
$200,000,000
0
18
Debt service
schedules for all
outstanding
obligations of
the City for debt
issued for
projects
identified in
the plan.
The debt service schedule is attached as Exhibit F.
n
MAP OF DMC DEVELOPMENT
DISTRICT AND KEV PROJECTS
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MAP OF DMC DEVELOPMENT
DISTRICT AND KEY PROJECTS
SUMMARY OF
MAJOR
PROJECTS •
HOTEL INDIGO
RENOVATIONS
The Hotel Indigo
nvolved the renovation
of an existing 172-room
Holiday Inn,located in
the "Downtown Water-
front"subdistrict as
described in the Devel-
opment Plan.Approved
in 2078,the $42 million
redevelopment includ-
ed the addition of
33,000 square feet to
the existing 774,500
square feet and provid-
ed approximately l
construction jobs and
28 new permanent jobs.
pening of the new
hotel and restaurant
occurred in 2020.
HYATT HOUSE
The Hyatt House
project is located in the
"Central Station"subdis-
trict as described in the
Development Plan.
Approved in 2078,the
$44 million project
includes an eight-story,
172-room extended-stay
hotel,and is providing
approximately 257
construction jobs and
while creating 38 per-
manent jobs.This
project was completed
in 2027.
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TWO DISCOVERY
SQUARE
Located at 209 5th St
SW,this expansion of
the DMC bio-medical,
research,and technolo-
gy innovation campus is
a 125,000 square foot
bioscience building.It
features tech-forward
tenant spaces designed
with flexible lab capacity
and leading-edge tech-
nology.Construction
was completed in 2022.
HEART OF THE CITY PHASE T-PEACE PLAZA
This phase of the project is a renovation of the east
side of Peace Plaza and surrounding areas.
The construction of this transformative project,which
includes improved safety,accessibility,universal design
elements,sustainability,integrated art,and improved
infrastructure,is largely completed,with a catenary
lighting system installed in late 2023.
#
BRYK ON
BROADWAY
This Bryk on Broad-
way is located at 407
Broadway Ave N.It is a
mixed-use,mixed-in-
come apartment build-
ing consisting of 780
workforce housing
apartments,providing
rent at varying levels.
Construction was
completed in 2023.
HILTON MAYO
The Hilton Rochester
Mayo Clinic Area
(formerly known as the
"Broadway at Center"
project)is located in the
"Downtown Waterfront"
subdistrict as described
in the Development
Plan.Approved in 2075,
this 371,000 square foot
mixed-use project
includes a 264-room
hotel,restaurants,retail
space,a skyway connec-
tion,and a five-level
public parking ramp
with 540 public spaces
and 90 private spaces.
The restaurants and
hotel opened in 2079.
THE BERKMAN
The Berkman Apart-
ments (formerly known
as the "Alatus Project")
is located on 2nd
Street SW in the "Saint
Marys"subdistrict as
described in the Devel-
opment Plan.Approved
in 2076,this mixed-use
project involved the
construction of an
approximately
350,000 square foot,
thirteen-level commer-
cial and residential
complex.It includes 350
market-rate rental units,
created an estimated
235 construction jobs
and eight permanent
jobs,and generated a
total of $115 million in
private investment.The
Berkman was
completed in 2020.
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THE MAVEN
ON BROADWAY
The Maven on Broad-
way (formerly known as
Urban on First)is locat-
ed south of 4th Street
SW between l st Avenue
SW and Broadway
Avenue and is in the
"Discovery Square"
subdistrict as described
in the Development
Plan.Approved in 2077,
this approximately $38
million mixed use proj-
ect includes a six-story
building with 756
market rate rental units,
parking,and street level
commercial and retail
space for a total of
238,700 square feet.The
Maven on Broadway
was completed in 2079.
WELLS FARGO
RENOVATION
This project is a
renovation of a 92,000
square foot existing
building,located in the
"Heart of the City"sub-
district as described in
the Development Plan.
Approved in 2078,this
project is a catalyst for
the public realm in
the Heart of the City
subdistrict and includes
connections to the
street and pedestrian
skyway.The renovation
has made approximate-
ly 23,000 additional
square feet of
commercial or office
space available.The
project created an esti-
mated 30 construction
jobs and provided 775
permanent jobs.This
project was completed
in 2020.
ONE DISCOVERY
SQUARE
One Discovery Square
(formerly known as
Discovery Square Phase
One)is on First Avenue
SW in the "Discovery
Square"subdistrict as
described in the Develop-
ment Plan.Approved in
2017,this approximately
$35 million bio-science
building will be a center of
innovation and is housing
companies whose mission
is to accelerate bioscience
and technology discover-
ies to market.The four
story,89,000 square foot
building includes office,
collaborative,and retail
space.As noted above,
this project is the first
phase of achieving a key
component of the Devel-
opment Plan:providing
jobs in the bio-science
sector.One Discovery
Square was completed in
2019 and is approximately
700 percent leased
PROJECTS
ITHOUT
DMCC
FUNDING
ASSISTANCE
n
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4,5
5.1,Ea?#Ce
r
CONLEY MAASS BUILDING
•
This project involved the renovation of a
historic building into a restaurant space
and leased space for high tech
companies.The renovation was
completed in 2016.
LOFTS AT MAYO PARK
The Lofts at Mayo Park is a five-story,
29-unit market rate rental apartment
project,which opened in 2077.
501 ON FIRST
507 on First is a five-story,mixed use
development consisting of 84 rental
apartment units and 27,000 square feet
of commercial/retail spaces.It opened
in 2078.
RESIDENCE AT DISCCVERY
SQUARE
The Residence at Discovery Square is a
six-story,mixed use development con-
sisting of 143 rental apartme t units,
with 20%of the units affordable to
persons at 60%of the area median
income,and 15,400 square feet of
commercial/retail space.It opened in
2079.
HUE APARTMENTS
The Hue Apartments is a six-story,
mixed use development ccnsisting
of 50 rental apartment units and 2,000
square feet of commercial/reteil space.
The Hue Apartments opened in 2020.
1ST AVENUE FLATS
This is a 68-unit affordable housing
building,and all of the units are
income-restricted to persons at or
below 60%of the area median income.
The building
opened in 2017.
FLATS ON 4TH
This project is a six-story mixed use
development consisting of 92 rental
apartment units,with 79 of the units
affordable to persons at 50%of the area
median income,and 2,300 square feet
of ground floor retail space.The build-
ing opened in 2078.
TOWNEPLACE SUITES
BY MARRIOT
TownePlace Suites by Marriot consists
of a 770-unit hotel with two levels of
underground parking.The hotel
opened in 2027.
UNIVERSITY OF MINNESOTA
ROCHESTER STUDENT
HOUSING
In September 2023,the University of
Minnesota ~ochester opened a new 400-per-
son-capacitt student housing development at
150 Broadway Ave.South in the heart of down-
town Rochelter.The project,created via !he .
renovation of the former DoubleTree Hotel on
Broadway Alenue South,included approxi-
mately $8 million in improvements.
EVEN HOTELS AND
STAYBRIDGE SUITES
This is a 2J6-urait dual-branded hotel,
which opred in 2027.
27
l-
0
r>w
ANNUAL CERTIFICATION
OF MAYO CLINIC AND
OTHER PRIVATE
INVESTMENTS
Private Investments Mayo Clinic Investments Total Investment
PRIVATE INVESTMENT
CERTIFICATIONS
IN 2023
As to private investment certifications,in 2023,we certified to the Minnesota
Department of Employment and Economic Development ("DEED")a total of
$199,088,689.42 for the year ending December 31,2022,which includes
$172,632,461.06 in Mayo Clinic investments and $26,456,228.36 in other private
investments.The cumulative total of Mayo Clinic and other private investments
through 2022 is $1,461,132,648.74.
EXHIBIT C
DESTINATION MEDICAL CENTER CORPORATION
201 4th St.SE.
Rochester,Minnesota 55904
March 28,2023
VIA ELECTRONIC AND U.S.MAIL
Kevin McKinnon
Interim Commissioner
Minnesota Department of Employment and Economic Development
1°'National Bank Building
332 Minnesota Street,Suite F-200
Saint Paul MN 55101
Dear Commissioner McKinnon:
On behalf of the Destination Medical Center Corporation ("DMCC")and Mayo
Clinic,I am pleased to forward the following materials for the April 1,2023 certification,
pursuant to Minnesota Statutes Section 469.47,Subdivision 2.The expenditures set forth
here are the investments that have been made by Mayo Clinic and by other private
individuals or entities to advance the Destination Medical Center initiative.
1.DMCC Certification:I enclose the DMCC Certification of
Expenditures made by an individual or entity,other than Mayo Clinic,for the
period ending on December 31,2022 ("Attachment 1").The City of
Rochester,Minnesota assisted with the compilation of this report.The
amount of 2022 investments set forth in this report is $26,456,228.36.
2.Mayo Clinic Certification:I enclose correspondence and
accompanying materials from Christina Zorn,J.D.,Chief Administrative
Officer,Mayo Clinic,dated March 16,2023 ("Attachment 2").Mayo Clinic is
certifying expenditures for the period of January 1,2022 through December
31,2022 in the amount of $172,632,461.06.
3.Summary of Investments:The summary page,entitled "Certification
of Expenditures,Destination Medical Center"is enclosed,setting forth total
cumulative expenditures through December 31,2022,in the amount of
$1,461,132,648.74 ("Attachment 3").
29
Commissioner Steve Grove
March 28,2023
Page 2
EXHIBIT C
0
would like to emphasize that Mayo Clinic invested the highest-ever annual
amount in 2022 through the Destination Medical Center initiative,signaling its strong
leadership in this public-private partnership.In addition,these private investments were
made in 2022 despite the ongoing challenges of the COVID-19 pandemic.It is truly
remarkable that the cumulative private investments in the Destination Medical Center total
nearly $1.5 billion.
Thank you for your consideration,and please do not hesitate to contact either
DMCC or Mayo Clinic if you need further information.We look forward to continuing to
work with the State of Minnesota,City of Rochester,Olmsted County,Mayo Clinic,and
our other partners on the Destination Medical Center initiative.
Sincerely,
.£de
Pamela Wheelock (o)
Chair
Destination Medical Center Corporation
Enclosures
cc:Destination Medical Center Corporation Board of Directors
Christina Zorn,J.D.,Mayo Clinic
Jeremy LaCroix
1458578-3.DOC
0
30
ATTACHMENT
ONE
EXHIBIT C
ATTACHMENT 1
Building Permits within the DMC Boundary
(Does not include Mayo Projects)
Completed
Vear
2018
2020
2021
2022
TOTAL $
Projects
5,956,841
$250,000
$392,588
$4,100,399
$1,213,854
2022 Destination Medical Center -Partially Completed Projects Tracking
2021 I 2022
Total Building Permit Value
Project Address To Date Partial Completed Work
I Bryk Apartments [401 N Broadway $25,000,000.00 $4,500,612.64 $20,499,387.36
TOTAL $26,456,228.36
ATTACHMENT 1-1 31
EXHIBIT C
2016 Destination Medial Center -Partially Completed Projects Tracking
-.2016 ·-·•'S .4 2017 ..-a.3 ...o 2017 ...3;2018 .
Partial Completed Completion Completion
Project Address Work Claimed Permit Number Value Date Permit Number Value Date Total Permits Balance Claimed Balance Claimed
1st Avenue Flats 400 NW 1 Avenue $4,976,244.00 R16-0024MF8/$622,000.00 R16-0008MFI $8,097,735.57 6/26/2017 $8,719,735.57 $3,743,491.57 $
Lofts at Mayo Park 123 SE 6 Avenue $6,347,552.97 R15-0079MFB $794,323.00 3/6/2017 R16-0011MF $6,105,677.00 8/17/2017 $6,900,000.00 $552,447.03 $
501 on First 501 SW 1 Avenue $12,534,186.96 R15-0053MF/$1,555,125.00 9/2/2016 R15-0058MF $11,422,057.75 1/28/2018 $12,977,182.75 $$442,995.79
Flats on 4th (Buckeye)412 SE 3 Avenue $8,906,937.40 R15-0107MF]$2,400,000.00 12/6/2018 R16-0009MFB$10,682,292.00 2/12/2018 $13,082,292.00 $$4,175,354.60
TOTAL for 2016 $
Dollar amount finaled in 2016 $
Dollar amount submitted for partial work in 201€$
TOTAL for 2017 $
32,764,921.33
1,555,125.00
31,209,796.33
4,295,938.60
$41,679,210.32 $4,295,938.60 $4,618,350.39
TOTAL for 2018 $4,618,350.39
2017 Destination Medial Center -Partially Completed Projects Tracking
2017 ~"·,,2017 +16 2tie ;,$e se g%2.318%2018
Partial Completed Completion Completion
Project Address Work Claimed Permit Number Value Date Permit Number Value Date Permit Number Value Completion Date Total Permits Balance Claimed
[Broadway @ Center [10 East Center Street $33,866,963.98 R15-0081Cl $1,000,000.00 12/6/2018 R15-0384CB8l $45,000,000.00 TC0 4/1/19 R15-0447CB8 $38,282,463.00 7/25/2019l $84,282,463.00 $50,415,499.02
[Discovery Square l202 4th Street SW $2,965,073.30 R17-0384C8i $1,750,000.00 11/13/2018 R17-0454C81 $1,290,000.00 11/13/2018 R17-0492C8 $12,969,000.00 7/10/2019 $16,009,000.00$13,043,926.70
TOTAL for 2017 $36,832,037.28
TOTAL for 2018 $63,459,425.72
2018 Destination Medial Center -Partially Completed Projects Tracking
$100,291,463.00 $63,459,425.72
2018 0 8 •.-2018 ·8 •
,.
e •·'1 2019 .2020.-----Partial Completed Completion Completion
Project Address Work Claimed Permit Number Value Date Permit Number Value Date Permit Number Value Completion Date Total Permits Balance Claimed Balance Claimed
Ronald McDonald House 850 2nd Street SW $4,872,363.01 R18-0048CB8 $10,126,000.00 11/4/2019 $10,126,000.00$5,253,636.99 $.
Hotel Indigo (Holiday Inn)220 South Broadway $1,156,333.15 R18-0294C8/$500,000.00 4/19/2021 R18-0389C8/$5,000,000.00 10/22/2020 R18-0454C8 $5,000,000.00 10/27/2020l $10,500,000.00 $9,343,666.85 $
Residence @ Dis.Sq.S511 3rd Ave.SW $9,820,880.09 R17-0143MF/$1,750,000.00 8/30/2019 R17-0141MF!$17,250,000.00 4/7/2020 $19,000,000.00$9,179,119.91 $
Urban on First 429 South Broadway $12,455,954.00 R18-0003MF]$2,428,958.00 11/19/2019 R18-0015MF!$28,380,000.00 11/19/2019 $30,808,958.00 $18,353,004.00 $
Berkman (Alatus)217 &301 14th Ave SW $25,936,546.00 R17-0157MFBI $4,900,000.00 7/15/2020 R18-0011MF,$86,237,507.00 7/15/2020 R18-0037MFBI $2,178,293.00 7/14/2020)$93,315,800.00 $59,063,337.00 $8,315,917.00
TOTAL for 2018 $54,242,076.25 $101,192,764.75
TOTAL for 2019 $101,192,764.75
TOTAL for 2020 $8,315,917.00
2019 Destination Medial Center -Partially Completed Projects Tracking
2019 ii :,c ~-----·±z...a 2020 2021alre-..±..----.;cc ....-·...
Partial Completed Completion Completion
Project Address Work Claimed Permit Number Value Date Permit Number Value Date Permit Number Value Completion Date Total Permits Balance Counted Balance Counted
[Ryan/Wells Fargo 21 lstSW $5,250,000.00 R19-0029Cc8/$5,250,000.00 3/27/2020 $5,250,000.00 $
[Hyatt House (Civic on First)315 1st Ave.NW $6,940,448.00 R18-0467CB8l $3,710,000.00 2/18/2021 R19-000301 $63,000.00 R19-0078C8 $28,480,475.00 2/4/2022 $32,253,475.00$24,151,076.04 $1,161,950.96
[Eleven02 101 11th Ave.SW $4,159,810.90 R19-0206Cc8l $6,750,000.00 2/16/2022 R19-0235C81 $22,940,975.00 4/26/2021 $29,690,975.00 $24,377,346.96 $1,153,817.14
TOTAL for 2019 $16,350,258.90 $48,528,423.00 $2,315,768.10
TOTAL for 2020 $48,528,423.00
TOTAL for 2021 $2,315,768.10
2020 Destination Medial Center -Partially Completed Projects Tracking
Project
Two DiscoverySquare
Address
[415 2Ave SW
2020
Partial Completed
Work Claimed
$5,553,179.85
TOTAL for 2020 $5,553,179.85
TOTAL for 2021 $14,608,300.15
R20-0243c8/$7,500,000.00 ]12/15/2021]R20-0281c8/$2,200,000.00 ]12/15/2021]R20-0312c/$10,461,480.00]3/2/2022]$
I Completion Completion I I I
Permit Number Value Date Permit Number Value Date Permit Number,Value Completion Date
2021 Destination Medial Center -Partially Completed Projects Tracking
2021 s°-;'.,,tf'.,.;,•:±?2021 3$%%%%3i 2022 ,
Partial Completed
Permit Number I I Completion I I I Completion I
Total Permits I Balance CountedProjectAddressWorkClaimedValueDatePermitNumberValueDate
Bryk Apartments [401 N Broadway Ave $4,500,612.64 R21-0031MF]$1,000,000.00 [8/18/2022]R21-0038MF8]$24,000,000.00 [[$25,000,000.00 1$20,499,387.36
TOTAL for 2021 $4,500,612.64
TOTAL for 2022 $20,499,387.36 Based on the Application and Certificate for Payment for the project,the total contract price for the development is $33,894,23.
lM O O ATTACHMENT 1-2 0
EXF Tc
DatePermitStatusOwnerDescriptionAmountAddressPermitDateParcel1DPermitNumberPermitType..
Commercial Bldg R18-0141CB8 7/31/201 017883 7SW2ST $250,00C New restaurant within an existing space.Yong Hao Liu Finaled 12/9/2022
Commercial Bldg R20-0225C8 10/26/20 82430 206 BROADWAY AVES $254,588 Tenant build-out Cornerstone Management Services Finaled 02/11/22
Commercial Bldg R20-0153C8 07/02/20 17926 211STSW $100,000 Interior remodel of existing office.(Wendland-Utz Law)Chris Wendland C of C Issued 04/27/22
Sign R20-0120S 12/04/20 17926 211STSW $38,000 Wall signs for Wells Fargo [lit]none given Finaled 10/21/22
Commercial Bldg R21-0047CB 3/2/2021 83795 202 SW45T $1,900,000 Tenant fit-up of offices,conference rooms and lab spaces.(Discovery Square]Paul Stalboerger CO Issued 3/22/2022
Commercial Bldg R21-0097C8 4/7/2021 79185 318 SW1AVE $1,661,399 Remodeling of the second floor of 318 Commons -offices and collaboration spaces GH HOLDINGS LLC CofClssued 4/22/2022
Commerclal Bldg R21-0326Cc8 9/16/2021 84934 311 NW1AVE $52,000 Fit-up of commercial space to accommodate new salon ARTIKA CIVIC CENTER HOTEL JV LC Cof C Issued 2/22/2022
Commercial Bldg R21-0442C8 12/15/2021 17773 20 5w3ST $25,000 Interior finishes for Mezza Cafe Sammi,Lawernce Finaled 9/16/2022
Commercial Bldg R21-0443C8 12/15/2021 18097 223 N BROADWAY AVE $230,000 Tenant improvement for a new office space for Ironton IRONTON LLC C of CIssued 7/22/2022
Commercial Bldg R21-0058MF 12/3/2021 12780 621 SW1ST $120,000 Renovating the following units in Uptown Landings Apartments:G2,103,104,203,205 &30€UPTOWN LANDING HOLDINGS LLC Finaled 12/16/2022
Commercial Bldg R21-0059MF8 12/3/2021 9449 625 SW3ST $112,000 Renovations for Uptown Terrace Apartments in the following units:2,3,8,9,and 1 UPTOWN TERRACE HOLDINGS LLC Finaled 10/21/2022
Commercial Bldg R22-0045C8 2/1/2022 83795 202SW4ST $20,000 Tenant fit-up of a conference room for Thermo Fisher Scientific at Discoverv Sauare Thermo Fisher CofCIssued 8/4/2022
Commercial Bldg R22-00S9CB 2/9/2022 81808 212 N BROADWAY AVE $83,490 Tenant fit-up for Queen Center Interiors by J Curry SKIATHOS LLC CofO Issued 7/6/2022
Commercial Bldg R22-0060c8 2/10/2022 56916 1125SW 2ST $67,000 Replacing small amount of insulation and drywall.Flooring in eight rooms,laundry room and maintenance off CARPENTER AND TORGERSON SSMR LLC Finaled 2/23/2022
Commercial Bldg R22-0146CB 3/31/2022 78774 221 SW1AVE $46,000 Addition of doors to Bio Business 6 Sean Williams Finaled 10/18/2022
Commercial Bldg R22-0214C8 5/20/2022 79921 426 SE3 AVE $619,300 Interior remodel of existing space into a warming/day shelter.{The Landing)Dan Fifield CofO Issued 11/10/2022
Commercial Bldg R22-0235c8 6/8/2022 83133 601SW2ST $200,000 Towne Place Suites remodel of existing bar into Spyhouse Coffee Roasters coffee shor TPS ROCHESTER I LLC C of O Issued 11/22/2022
Commercial Bldg R22-0268Cc8 7/7/2022 25728 27SE9ST $99,256 Re-roof at Soldiers Field Plaza TRCH PLAZA LLP Finaled 9/20/2022
Commercial Bldg R22-0364C8 9/26/2022 18097 223 N BROADWAY AVE $78,808 Roof replacement for 223 Building IRONTONLLC Finaled 12/2/2022
olol ATTACHMENT 1-3
ATTACHMENT TWO
MAYOCLINIC)
March 16,2023
EXHIBIT C
ATTACHMENT 2 200 First Street SW
Rochester,Minnesota 55905
507-284-2511
O
Kevin McKinnon
Interim Commissioner
Minnesota Department of Employment and Economic Development
1st National Bank Building
332 Minnesota Street,Suite E-200
Saint Paul,MN,55101-1351
Dear Interim Commissioner McKinnon:
Attached with this letter is Mayo Clinic's certification of qualified expenditures of the medical business entity
for the Destination Medical Center (DMC)initiative from January 1,2022,to December 31,2022.The amount of
qualified investment is approximately $172.6 million.This figure represents Mayo Clinic's largest-ever annual
investment and is a strong signal of our commitment to further solidify Rochester,Olmsted County and the
state of Minnesota as a global destination medical center.
In 2022,major projects included the ongoing construction of the Anna-Maria and Stephen Kellen Building in o
downtown Rochester's Discovery Square and the expansion of the Mayo Clinic Proton Beam Therapy Program.
Through 2022,our cumulative DMC investment totaled more than $934.7 million.A significant share of these
investments would not be possible without the community infrastructure investments enabled by the unique
public resources of the DMC initiative.
Looking back on 2022,I am grateful for our hard-working staff in Minnesota and across the globe,who have put
the needs of the patient first and sustained Mayo Clinic as a beacon of hope and healing.Last year,our Mayo
Clinic teams served about 1.4 million patients from nearly 130 countries.In recognition of staff excellence,
Mayo Clinic made unprecedented investments in our employees in 2022.Additionally,we remained focused on
addressing pressing needs in our community,forging innovative partnerships to tackle social determinants of
health,and strengthening the health and vibrancy of the DMC district that surrounds our downtown campus.
Looking ahead,we are confident that Mayo Clinic's Bold.Forward.strategy has positioned us to lead the
transformation of health care,including the transformation of physical health care infrastructure through the
construction of new physical spaces in downtown Rochester.Through thoughtful,connected physical and
digital frameworks,Mayo Clinic has the potential to make health care better integrated and more seamless for
our patients.The DMC initiative is an integral partner in achieving this goal and facilitating and supporting the
future of health care.
Together,I trust these examples demonstrate Mayo Clinic's dedication to our patients,our staff,and the places
where we live and work.We look forward to maintaining our ongoing DMC partnership with the city of
Rochester,Olmsted County and the state of Minnesota.
Thank you,&,
Christina Zorn,J.D.
Chief Administrative Officer
Mayo Clinic ATTACHMENT 2-1 34
EXHIBIT C
Permitted Expenditures from July 1,2013 to December 31,2022
Prior Years
2013 -2021 Expenditures Total Total Spent as
Expenditures not previously 2022 Expeditures of December
Approval Date Project/Req Number Project/Equipment Name Reported reported Expenditures reported for 2022 31st 2022
02/18/11 7R100580 Mary Brigh East Expansion $2,065,139.65 $$$$2,065,139.65
11/09/12 7R110910 Dermatology Romodol $9,123,648.24 $$$$9,123,648.24
11/09/12 7R121480 Sports Medicine Center $5,666,939.49 $$s $5,666,939.49
07/03/13 7R121370 2915 Warehouse Infrastructure $693,219.52 $$$$693,219.52
07/10/13 7R130470 Core 200 SMH Operating Room Renovation $1,411,411.46 $$s $1,411,411.46
07/10/13 7R100320 Anatomic Pathology OIfico Remodel $476,041.94 $$$$476,041.94
07/10/13 7R121490 Psychiatry and Psychology Master Plan,Phase 1A -Gonerose Main $1,213,985.91 s $s $1,213,985.91
07/11/13 7R120570 Development Remodel $2,679,274.32 $$s $2,679,274.32
08/01/13 7R130980/7R130981 Bed Tower Modernization MB east $44,118,257.74 $$$$44,118,257.74
08/01/13 7R1309907R130991 Domitilla 3 Modemization $7,762,425.78 $$s $7,762,425.78
08/14/13 7R130650 Remodeling laboratory space on Guggenheim 5.$265,065.75 s $$$265,065.75
08/29/13 7R130810 Saint Marys Hospital Chiller Addition $4,631,632.46 s $s $4,631,632.46
09/25/13 7R130180 Institute Hills Chiller Replacement $441,903.16 $$s $441,903.16
11/06/13 7R130820 Radiation Oncology Room "E'Linear Accelerator Replacement $188,793.94 $$$$188,793.94
12/11/13 7R1 10200 DLMP Phlebotomy Remodel $1,615,648.60 s $$$1,615,648.60
02/05/14 7R120870 Mary Brigh Electrical Upgrades (Phase 3)$2,002,781.62 $$$$2,002,781.62
02/21/14 7R121420 SDSC Expansion Construction Only $21,500,990.14 $$$$21,500,990.14
02/26/14 7R121080 Creation of the consolidated freezer and BAP facility at the 2915 Warehouse $4,006,693.46 $$$$4,006,693.46
02/26/14 7R130690 Remodeling of multiple laboratories on Guggenheim 8 $774,090.58 $$$$774,090.58
03/19/14 7R131440 Four Operating Rooms Of Core 700 $3,082,756.73 $$s $3,082,756.73
04/23/14 7R131300 Remodeling within the Metabolomnics Core on Alfred 5 $616,212.48 $$$$616,212.48
202014 R2007523 /7R131300 Themo TSQ Triple Quadrapole MS (assets 147506 8 145344)$596,292.00 $$s $696,292.00
04/23/14 7R131420 Remodeling within Opus 1 to accommodate space for a now CT machine.$480,162.90 $$$$480,162.90
04/30/14 7R131270 Employoe and Community Health Southeast Clinic $4,326,200.60 $$$$4,326,200.60
04/30/14 7R120690 Cardiac Catheterization Procedure Room 103 Remodel -Saint Marys,Mary Brit $412,684.91 $$$$412,584.91
06/04/14 7R140130 Gonda 5,5h PET/CT Installation &Uptake $301,874.69 $$$$301,874.69
06/18/14 7R140540 Executive,Development and International Program Expansion -Mayo East 5 $1,389,522.23 $s $$1,389,522.23
07/02/14 7R131400 DOM 3/4 Infrastructure Revisions for Remodeling $2,109,759.78 $$$$2,109,759.78
07/23/14 7R130760 Clinical Genome Sequoning,Lab Expansion $296,600.82 $$s $296,600.82
08/14/14 CPC2010723 /7R130820 Varian Medical Systems (asset 145374)$3,334,879.00 s $$$3,334,879.00
08/20/14 7R140480 CMCT and Prev.Med.Relocation Gon da 18 to Mayo East 17 $358,383.16 $$s $358,383.16
03/04/15 7R140790 Cancer Center Station Eisenberg 4-3 $892,147.20 $$s $892,147.20
03/18/15 7R140780 CT Simulator I Replacement Charlton S-259,S-261 $191,170.81 s $s $191,170.81
11/13/14 CPC20104737R140780 CT Scanner -5yr (Asset 162815)$687,812.80 $$$$687,812.80
04/29/15 7R150070 Charlton 2 Incremental 3T Body Scanner $749,773.48 $$$$749,773.48
04/29/15 CPC2015146/7R150070 3T Siemens Skyra MRI (assest 166875,167065-167082)$1,637,261.00 $$s $1,637,261.00
05/13/15 7R150060 SMC,Mary Brigh Main NH,MR-MCR 1.5T Replacement Scanner $448,573.83 s $$$448,573.83
05/13/15 CPC20 15438/7R150080 GE;1.5T Optima MRA5OW (ass0st 165084,165346-165359)$1,130,292.00 $$s $1,130,292.00
05/13/15 7R150090 SMC,Mary Brigh Main NH,MR-MCR 1.5T Replacement Scanner $595,824.88 s $$s $595,824.88
05113/15 CPC2015436/7R150090 DISCOVERY MRI Mary Brigh (assets 169437,171643,171651,171661-171672 $1,513,704.55 $$s $1,513,704.55
07/22/15 7R130230 Renovation Mary Brigh Main,PACU -Phase 4 $2,059,423.01 $$$$2,059,423.01
05/14/15 7R140390 SMH Mary Brigh East Corridor Relocation $4,918,632.07 $$$$4,918,632.07
02/25/15 7R140970 Dr.Lee Diamond Reactor Lab Remodel on Med Sci SL $226,408.57 s $s $226,408.57
7/23/2014 7R131280 MR-RO-CN-1-MR/PET Installation $781,558.09 $$s $781,558.09
3rd qtr 2014 CPC2007008/7R131280 GE;DISCOVERY MR75O PET (Assets 149870,,150145-150157,150668-1506 $3,698,538.02 $$$$3,698,538.02
8/20/2014 7R140140 CT Scanner Replacements (3L,3Z 8 4J)-somatom -CH2 $561,057.62 $$$$561,057.62
3rd qtr 2014 CPC2010196f7R140140 Somatom Force CT (Asset 157628)$1,831,372.00 $$s s 1,831,372.00
12/11/2014 7R140770 Linear Acc Replaco Rm "C"$185,937.00 $$$$185,937.00
08/14/14 CPC2010723/7R140770 VARATHON MEDICAL;TRUE BEAM (Asset 162800)$2,695,906.00 $$$$2,895,908.00
08/14/14 CPC2010184/7R140770 SIEMENS;CT EDGE (Asset 163463)$856,459.02 $$s $856,459.02
08/14/14 CPC2010189/7R140770 SIEMENS;SOMATOM DEFINITION (Asset 164325)s 862,578.20 $s $s $s 862,578.20
10/9/2014 7R140160 Incremental MRI Body Scanner $603,049.87 $$$$603,049.87
08/14/14 CPC2010068/7R140160 SIEMENS;SKYRA3TMRI (Asset 157191,157322-157339)$1,859,239.00 $$$s $1,859,239.00
12/12/2013 7R121290 GO3 Build 2 CT Bays $656,293.35 $$s $656,293.35
11/13/14 CPC201018817R121290 SIEMENS;SOMATOM FORCE CT (Asset 149843)$1,750,000.00 $$$$1,760,000.00
05/08/14 CPC200877817R120690 PHILIPS;XPER FD2O (Assets 147302,147339,147392)$1,649,213.30 s $s $1,649,213.30
1/9/2015 7R140090 Neurology Renovation,Mayo 8 $4,989,615.93 s $s $4,989,615.93
8/21/2014 7R140220 Mayo 8-Lobby Remodel $1,137,290.91 s $$$1,137,290.91
4/28/2015 7R140700 Vascular OR Core 801 SMH $1,059,949.88 $$$$1,059,949.88
5/30/2014 7R140170 Rad Vascular Imaging Ste 90 $144,461.29 $$$$144,461.29
5/8/2014 CPC2008468/7R140170 SIEMENS MEDICAL;ARTIS ZEE (Asset 146871,146872)$985,408.00 s $s s 985,408.00
2/4/2014 7R130050 CT MBM Incremental Interventional CT $1,268,114.01 $$$$1,268,114.01
8/1/2013 CPC2002220/7R130050 SIEMENS;DEFINITION EDGE CT (Asset 148622,148623)$1,315,697.00 $$s $1,315,697.00
10/15/2014 7R140150 CH N Neuro Scanner CN1-119C $561,796.54 $$s $s 561,796.54
8/14/2014 CPC2010082/7R140150 SIEMENS;PRISMA 3T MRI and Accessories (Asset 157677,157935-157946)$2,241,875.00 $$$$2,241,875.00
USPS Building Purchase (Asset 156757,156758)$2,185,017.25 $$s $2,185,017.25a12/11/14 Land tor Ronald McDonald House (Asset 147588,147589)$1,000,203.16 $$s s 1,000,203.16
8/14/2014 CPC2007616f7R140130 GE;DISCOVERY 710 PET Scanner (Asset 148389)$2,103,046.58 $$s $2,103,046.58
2/17/2016 7R151530 Fed Wing Building $533,262.51 $$s $533,262.51
5/25/2016 7R151390 Hematopathology Consolidation,Hilton Building 7th Floor $2,018,886.34 $$$$2,018,886.34
6/29/2016 7R150870 Vacate EI 71/7.2 Dermatology Phototherapy Phototherapy Relocation $439,830.58 $$$$439,830.58
8/31/2016 7R160520 Relocation of Respiratory Care Unit $1,184,489.68 $$s $1,184,489.68
3/31/2016 7R151490 Linen Service Depot-3939 Building s 1,882,309.32 $$s $1,882,309.32
6/30/2016 7R150740 Media On Demand Replacement Project $699,440.19 $$s $699,440.19
7/8/2016 7R151570 Temporal Bone Lab remodel (original $600K)$126,259.12 $$$$126,259.12
4/27/2016 7R150760 Dr,Misra Laboratory,Gugg 6 $314,232.69 $$$$314,232.69
6/8/2016 7R160650 Lab Remodel Gugg 17 and 18 $507,816.33 s $s $607,816.33
9/14/2016 7R160340 Space assignment for Dr,Bums and Dr.Scarisbrick surgery -Guggenheim 6 $372,474.03 $$s $372,474.03
9/28/2016 7R151450 Guggenheim 13 Space Remodel $266,997.78 s $s $286,997.78
6/30/2016 7R140810 Charlton Desk R Lobby Remodel $397,223.24 $$$$397,223.24
11/1/2015 7R151060,7R15106E Jacobson Building Operating Rooms $23,568,520.11 $$s $23,568,520.11
2/17/2016 7R150100 Charlton 1 PET/CT (DRX-1 Replacement)E-3006 $132,948.22 $s $$132,948.22
2/11/2016 0PC2021826/7R150100 GE -Discovery PET/CT 7 10 (Asset 178322)$1,500,726.20 $$$$1,500,726.20
May 2016 7R150010 Gastroenterology &Hepatology Renovation $7,362,527.52 $s s $7,362,527.52
9/29/2016 CPC2026475/7R150010 Stryker Salos Corporation -Alfred 6 Integration (ssets 180598-180603)$1,126,322.95 $$$$1,126,322.95
9/29/2016 CPC2026506/7R150O10 Philips Fluoroscopy (Assets 181122-181123)$1,335,625.38 $$s $1,335,625.38
Aug 2016 7R160670 TT MRI Scanner $1,916,246.30 $$s $1,916,246.30
2/1/2014 7R140100 SMH Campus Radiology Consolidation $23,668,544.51 $$$$23,568,544.51
11/1/2015 7R150630 Mary Brigh East Tower Additional Floors $17,320,752.84 s $s s 17,320,762.84
11/1/2015 7R150670 &7R150671 Eisenberg 7-1 and 7.2 $6,312,270.07 s s $$6,312,270.07
12/1/2015 7R150970 Pro Post Expansion on Gonda 2 Gonda 2-467 $266,028.69 s s $$266,028.69
11/19/2015 7R131510 Franklin Heating Station Chiller #4 Replacement $2,286,167.61 $$$$2,286,167.61
11/4/2015 7R141050 Mary Brigh 4,Room 106 Hart Rhythm Services Remodeling $538,995.91 s $s $538,995.91
5/5/2016 CPC2023942/7R141050 Siemens -Fluoroscopy 106 (Asset 172294)$1,508,299.00 s $s $1,508,299.00
11/4/2015 7R141060 Mary Brigh 4,Room 111 Heart Rhythm for Equipment Replacement $217,834.13 $$s $217,834.13
8/11/2016 CPC2024041/7R141060 Siemens -Siemens fluoroscopy room 111 (Asset 179164)$801,942.00 $$$$801,942.00
11/4/2015 7R150650 Charlton North MR-MCR NU 3T Replacement Scanner $354,930.50 $$$$354,930.50
CPC2019384/5/7R150850 MAGNETOM Prisma 3T (asset 173601)$2,184,842.00 $$$s 2,184,842.00
11/4/2015 7R150840 Charlton North MR-MCR NT 1.5 Replacement Scanner $587,509.18 $$$$587,509.18
CPC2O19387/7R150840 SIEMENS;1.ST OPEN 70CM (assets 169436,171642,171650,171652-171660)$1,188,732.00 $$s $1,188,732.00
5/1/2015 7R141150 Research Biplane Angiography System Replacement $78,970.28 $$$s 78,970.28
5/1/2015 R2017007/7R141150 SIEMENS;ARTIS ZEE BIPLANE (asset 165045-165046)$1,158,442.00 s $1,158,442.00
41st Street Professional Complex $9,831,862.38 $s 9,831,862.38
7R160100,7R160101,7R160102,Precision Medicine Initiative
May-16 7R160103 8,392,748.33 s $8,392,748.33
2016 R2025131/7R160100 Motoman (Asset 184543)4,031,557.00 s s 4,031,557.00
2016 R2025134/7R160100 Autogen (Assets 175437-175447)2,023,074.27 $$2,023,074.27
2016 R2025138/7R160100 Hamilton Star (Assets 171685,172326)440,763.20 s $440,763.20
2016 R2025143/7R160100 Hamilton Bis Freezer (Asset 186447)5,127,252.84 $$5,127,252.84
ATTACHMENT 2-2 35
EXHIBIT C
Permitted Expenditures from July 1,2013 to December 31,2022 0PriorYears
2013 -2021 Expenditures Total Total Spent as
Expenditures not previously 2022 Expeditures of December
Approval Date Project/Req Number Project/Equipment Name Reported reported Expenditures reported for 2022 31st 2022
2016 R2025249/7R160100 PerkinElmer Spectrophotometer (Asset 169459)s 39,920.00 $$s s 39,920.00
3016 R2026730!7R160100 Hamilton Robotic Upgrades s 45,951.00 $$s $45,951.00
3016 R2026898/7R160100 Hamilton Star (Asset 179090)$235,653.10 $$$235,653.10
4016 R2027700/7R160100 Hamilton Tube Handler -RE0 2027700 s 34,358.20 $$$34,358.20
1017 R2030177/7R160100 Hamilton Capper/Decapper Motoman Line (Asset 183593)s 77,010.00 $$s $77,010.00
2017 R2031170!7R160100 Hamiton Star EasyBlood Liquid Handler (Assots 181647-181649)$776,489.90 $s s $776,489.90
3016 R2026141/7R160100 Verso M2 -(Asset 179334)$729,256.34 $s s $729,256.34
4016 R2027695/7R160100 Hamilton EasyBlood Units (Assets 176522-176524)$721,818.90 s s s s 721,818.90
1017 R2029764/7R160100 Hamilton Bios PMI #3 (PO 20028966)$4,030,363.09 s s s $4,030,363.09
1018 R203565517R160100 Hamilton Freezer Bios HL20 (PO 20031301)$2,509,226.94 $s s $2,509,226.94
11/1/2015 7R150570,7R15057A-7R15057D0 Mary Brigh East Operating Rooms $727,108.67 s s s $727,100.67
8/11/2016 CPC2025789/7R150578 Siemens -Artis Zeeog Card.Thorax (Asset 180570)$1,466,062.00 s s $$1,466,062.00
8/11/2016 CPC2026999/7R150570A GE -Discovery IGS 740 (Asset 179172)$1,363,946.45 $s s $1,363,946.45
12/1/2015 7R151460 Gonda 14 Radiographic Room DR Conversion E15-3011 RAD-MCR-GO14.R $112,034.00 $$s $112,034.00
12/1/2015 7R151470 Gonda 14-158 Duo DR Replacement,E15-3014 RAD-MCR-GO14-158 $154,034.23 s $s $154,034.23
12/1/2015 7R150980 West Pre/Post Remodel,Mary Brigh Main $2,022,954.79 $s s $2,022,954.79
8/19/2015 7R150650 Radiology-Charlton 1,VG6 Replacement E15-3003 $138,704.91 $s s $138,704.91
8/19/2015 CPC2015772/7R150650 GE;DISCOVERY 670 PRO $948,408.45 $$s $948,408.45
9/21/2016 7R160970 Cardiovascular Diseases Patient Appointment Coordinator $200,409.53 $$$$200,409.53
12/21/2016 7R151630 Reproductive Endocrinology and Infertility Relocation $2,378,634.23 $$s $2,378,634.23
12/21/2016 7R160540 Remodel Mary Brigh 6 to increase Medical ICU capacity $1,954,174.55 $$s $1,954,174.55
12/31/2016 7Rt51000 Mayo Building -Substation MA-E-5 Replacement $612,251.93 $$s $612,251.93
5/25/2016 7R151380 Pharmacokinetics Core Relocation $469,019.61 $$s s 469,019.61
6/14/2017 7R151580 &7R170130 Remodel Baldwin 1 for ISP I Baldwin 1 Entry Vestibule Replacement $4,186,165.25 $$s $4,186,165.25
3/15/2017 7R151400 Mycology/TB Expansion Hilton 8 $3,256,953.15 $$s $3,256,953.15
3/15/2017 7R160790 CMIL'NIL Relocation and Expansion,Hilton 7 $1,511,410.88 $$s s 1,511,410.88
9/6/2017 7R151290 Human Cellular Therapy N2 Tank Storage Facility $491,016.90 s $s $491,016.90
9/6/2017 7R160160 Conversion of OR 609 from Hybrid OR to Coventional OR $496,613.67 $s s $496,613.67
9/6/2017 7R170260 Gonda 2 Decontamination Space Remodeling $285,911.99 $s s $285,911.99
9/30/2017 7R170730 Eisenberg AHU S-55 Replacement to Support REI Practice Relocation $803,858.23 s s s $803,858.23
2/2/2017 7R161520 41st Street $4,892,701.70 $$s $4,892,701.70
8/10/2016 7R160940 Guggenheim 15-02 integration of core facility and laboratory program\$368,357.82 s $s $368,357.82
3/8/2017 7R160110 Aging Center Space Remodel,Guggenheim 7 $551,139.89 $s $$551,139.89
6/22/2016 7R160750 Stabile 11 Lab construction -Revzin $314,372.07 s $s $314,372.07
12/7/2016 7R161510 Installation of Open MRI System,Opus 1 $590,676.24 $$s $590,676.24
1/11/2017 7R170020 Lab renovation ST 11,CRM recruit,Dr.Quinn Peterson $121,165.35 $$$$121,165.35
10/5/2016 7R160980 Saint Marys Campus Complex Intervention Unit $2,237,613.54 $$s $2,237,613.54
1/4/2017 7R160290 8 7R160280 E16-3005 MR MCR-GO3 1.5 MR Scanner #1 $1,276,416.38 $$$$1,276,416.38
11/10/2016 CPC2026320/7R160280 Siemens -MAGNETOM Aera (Asset 182886;182863-182881)$1,688,565.00 $$s $1,688,565.00
3/30/2017 7R161300 RMC S-8 AHU Replacement $699,281.36 $$s s 699,281.36
12/7/2016 7R140380 SMOP/Radiology Desk $3,571,641.14 $$s $3,571,641.14
5/25/2016 7R151430 Mary Brigh Main SMC Radiology Hybrid Procedural Suite -MR Suite $2,180,505.45 $$s $2,180,505.45
5/5/2016 CPC2023488/7R151430 Philips -Ingenla 1.5T Omega HP R5 Q1 (Asset 183632;183885-183897)$1,474,847.09 $$s s 1,474,847.09
10/1/2018 7R110520 SMH Bulk Medical Gas Systems Replacement $977,452.73 $$s $977,452.73
10/1/2018 7R140180 Mary Brigh Main WestEntrance Upgrades $1,136,995.31 $$s $1,136,995.31
7/24/2018 7R140240 Neurology EEG/Epilepsy Remodel -DO 2&JO 2 $1,149,596.73 $$s $1,149,596.73
6/13/2018 7R150600 Gugg 13 Remodel $484,303.51 s s s $484,303.51
11/28/2018 7R151140 Plummer Library Renovations Phase 3&4 $433,105.21 $$s $433,105.21
5/3/2018 7R151420/OPC2036523 Philips Healthcare (Asset 196890)$423,890.40 s $s $423,890.40 O2/22/2018 7R160610 Office of Information Security Consolidation $1,117,001.99 $$s $1,117,001.99
6/30/2018 7R160730 Brackenridge Education Room Build out $526,051.76 $$s $526,051.76
11/6/2018 7R161270 USP 8O0 Haszardous Drug Handling Remodel $1,045,577.42 $$s s 1,045,577.42
7/1/2018 7R161450 SMC Chilled Water Distribution Loop $934,150.96 $$s $934,150.96
10/1/2018 7R161501 Joseph Bldg Scope A Centralized Infrastructure $3,276,910.54 $$s $3,276,910.54
3/1/2018 7R17005O RMC S-5 Air Handling Unit Replacement $952,822.05 s $s $952,822.05
3/14/2018 7R170110 Tissue Typing Lab Pre-DNA Extraction Contamination Control $353,779.74 $$$$353,779.74
5/24/2017 7R170450 Retrofitting Med Sci 5 large animal facility;DCM Phase I $637,314.97 s $s $637,314.97
2/22/2018 7R170480 Consolidation/Relocation of Revenue Cydo $2,129,432.35 $$$$2,129,432.35
6/13/2018 7R170500 Gonda 15 Conversation of Family Waiting Room to Pre/Post Space $587,084.72 $s s $567,084.72
6/270/2018 7R170800 GU 5Chakraborty lab construction,remodel west bay of GU 5 $848,596.35 $s s $848,596.35
3/14/2018 7R170900 SMC OR 604,608,and 600 Decontamination Room Remodel,MB 1 $1,118,164.67 s s s s 1,118,164.67
3/14/2018 7R180140 E-18-3009 NM-MCR-CHI-R-PETIT DRX2 $159,572.79 s $$$159,572.79
6/13/2018 7R180150 SC18-3002 RAD-MCR-MAE4-I-Thoracic Reading Rooms $253,593.73 $$s $253,593.73
7/1/2018 7R180440 Medical Sciences 3 (Dr.A.Pandey and Proteomics Core)$231,534.87 $$s $231,534.87
10/1/2016 R2050798 17R180440 190235)s 13,362.24 $$s $13,362.24
10/1/2018 R2050806 /7R160440 192318)s 12,000.00 $$s $12,000.00
10/1/2018 R2050567 1 7R180440 190958-190960,192300)$1,308,079.83 $$$$1,308,079.83
10/1/2018 R2049967 /7R 180440 189861,190212,190906,193852)s 57,209.39 $$s $57,209.39
10/1/2018 R2050783 /7R160440 Pandey VWRshaker--REO#--R2050783 (PO 20033611)(Asset 190242)s 6,893.59 $$s $6,893.59
10/1/2018 R2050769 /7R180440 Pandey Nikon scope--REO#--R2050789 (PO 20033602)(Asset 190249)s 18,799.83 $$s $18,799.83
2/1/2018 8R170470 Centralized Distribution of Utilities 41st Street $4,944,173.53 $$s s 4,944,173.53
12/31/2016 7R151620 Hilton Substation Replacement $2,479,367.29 $$s $2,479,367.29
11/15/2017 7R170850 E17-3006 CT.-MCR-GO3-R-3V Scanner s 59,889.05 $$$$59,889.05
11/15/2017 CPC2030830/7R170850 Siemens Somation Force (Asset 185457)$1,930,400.00 $$s $1,930,400.00
3/15/2017 7R140260 Psychiatry &PsychologyMaster Plan Phase ll $1,482,321.51 $$$$1,482,321.51
3/16/2017 7R160140 Upgrade of Medium Voltage Switch Center $1,034,828.91 $$$$1,034,828.91
6/14/2017 7R160370 Mary Brigh Kitchen Replacement East Tower Ground Level $1,646,319.22 $$$$1,646,319.22
3/15/2017 7R160390 E16-3010 MCR-DT-A-ncremental Downtown CT Scanner #1 $1,726,161.72 $$s $1,726,161.72
3/15/2017 CPC16039017R160390 Siemens;Somatom Force CT (Asset 188881)$2,084,921.00 $$$$2,084,921.00
6/1412017 7R160430 E16-3009 RAD-MCR-GO14 Radiographic Room DR Conversion $308,593.62 $$s s 308,593.62
6/14/2017 7R160640 Pa/tent Lits for Mary Brigh PCU 5C &5F $829,680.46 $$s $829,680.46
9/6/2017 7R160910 Mary Brigh Shell Space Fit-Up (NICU &PICU)$411,886.88 $$s $411,886.88
3/15/2017 7R160950 Antibody/Protein Immunology &Cinical Immunoassay Lab Relocation $3,644,272.87 $$s $3,644,272.87
11/15/2017 7R161180 Saint Marys Dialysis Unit $3,452,808.69 $$$$3,452,808.69
11/15/2017 7R161200 E17-3005 MR-MCR-ABM-R-MR29 Replacement $780,175.64 $$s $780,175.64
11/15/2017 CPC2032958/7R161200 GE;Signa Artist 1.5T (Assets 188037-188049)$990,208.00 $$$$990,208.00
11/15/2017 7R161280 Enhanced Critical Care Expansion $171,588.57 $$s $171,586.57
10/26/2016 7R161350 Lowe,and C-SiG $280,649.20 $$s $280,649.20
11/8/2017 7R170040 Gonda 19 space remodel $267,061.02 $$$$267,061.02
12/31/2017 7R170080 SMC MaryBrigh Surgical Services AHU Replacement $2,047,419.63 $$s $2,047,419.63
1017 7R160310,7R16031E Mary Brigh 3rd FloorOR Rooms Fit Out $24,543,539.46 $$s $24,543,539.46
9/27/2017 7Rl60230 Research PETICT Charlton 6 $2,291,819.29 $$s $2,291,819.29
R2050020 1 7R160230 Biograph Vision 600 (asset 192309)$2,015,000.00 $$s $2,015,000.00
4/1172019 7R181000 REO Makeup and Export Water Tank $831,767.94 $$$$831,767.94
4/11/201g ROBB18C0010 Global Business Solutions Consolidation $353,569.35 $$$$353,569.35
3/13/2019 7R180860 RST SMCIRMC Visitior Cafeteria s 20,786.96 $$s $20,786.96
2/1/2019 7R170210 Mail Order Pharmacy Relocation $7,545,680.99 $$s $7,545,680.99
CPC2034616,CPC2O49576,
CPC2049796,CPC2049797 I
402019 7Rt70210 Pharmacy Automation -Innovation (Asset 195397)2,722,535.76 2,722,535.76
7R161540,7R170920,7R170922-
2017 7R170924,7R17092E Discovery Square 11,153,447.00 128,846.00 128,846.00 11,282,293.00 07R161010,7R161020,7R161030,
7R161031,7R161040-7R161042,
7R161050,7R161060,7R161070,
7R161080,7R161090,7R161100,
7R161110,7R161120-7R161123,
1017 7R161130,8R160740 SMC Modernization and Growth $126,681,705.86 $4,796,690.21 4,796,690.21 131,478,396.07
5/8/2019 7R160701 SportsMedicine Relocaton to DAHLC 4 $1,059,766.35 $1,059,766.35
ATTACHMENT 2-3 36
EXHIBIT C
Permitted Expenditures from July 1,2013 to December 31,2022
Prior Years
2013 -2021 Expenditures Total Total Spent as
Expenditures not previously 2022 Expedltures of December
Approval Date Project/Req Number Project/Equipment Name Reported reported Expenditures reported for 2022 31st 20222/14/2019 7R170400I ROAW19C0010 Archives Warehouse Tissue Registry Expansion $6,247,409.20 $$41,510.43 $41,510.43 $6,288,919.631/16/2019 7R170540 Redesign of Jacobson Locker Room $186,270.76 $$$$186,270.7610/24/2018 7R170820 Remodel of GIH Research Space GU 17,Phase 1 $1,287,712.21 $$$$1,287,712.215/30/2019 7R180100 SMH River Room $861,050.41 $$$$861,050.4110/2/2019 7R180120 RST E18-3008 MR-MCR-GO3-I-3T MR Scanner $851,472.87 $$$$851,472.873/2/2018 R2036200 /7R180140 DiscoveryMI 25CM (Asset 189900)$2,697,744.00 $$$$2,697,744.009/19/2018 7R180160 Radiology Office Spaco and 3 Lab on Joseph 6 $3,470,339.73 $$$$3,470,339.737/27/2018 7R180200 SMC Decontamination Remodel Equipment and Replacement $1,285,541.44 $$$$1,285,541.446/26/2019 7R180240 RST Impact Lab Expansion CAR-T Cell Initiative $5,291,397.02 $$431,498.77 $431,498.77 $5,722,895.7911/13/2019 7R180310 0068-18 E18-3021.-RAD-MCR-MSH-MMB-R-RAD DR Conversion $413,802.12 $$$$413,802.128/15/2018 7R180360 Eisenberg Dumbwaiter Replaceme $2,639,381.76 $$103,875.91 $103,875.91 $2,743,257.679/30/2019 7R180450 Administrative Drop In Center $799,099.21 $$$$789,099.2110/9/2019 7R180480 Dr.Pipe Lab-DiscSq1 $849,865.92 $s $$849,865.9210/18/2018 7R180610 Mayo Clinic Food Service,RMC $531,733.01 $$$$531,733,0112/10/2018 7R180690 3O Metal Printer for Div of Engineering $720,429.73 $$$$720,429.732/14/2019 7R180750 41st Street Complex Employee Cafeteria $5,716,239.14 $$$$5,716,239.14
302019 7R180900 RMC EIsenberg AHU-S62 Replacement $1,020,508.13 $$$$1,020,500.13202019ROFF19C001041stStComplexInfrastructureUpgrades-Phase 3 $2,050,934.06 $$$$2,050,934.06302019ROJO18C0020Joseph1NorthwestLocalInfrastructure-SMC River Room Expansion $110,586.26 $$$$110,586.268/28/2019 ROJO19C0010 0050-19 RST Creation of New MED 13 Hospital Sorvico $5,028,032.77 $$$$5,028,032.772/14/2019 ROMA18C0020 Mayo 11 Remodel $7,283,353.56 $$$$7,283,353.566/26/2019 ROMB19C0030 RST SMC Sterile Processing Renovations $702,992.55 s $$$702,992.556/26/2019 ROOP19C0010 Opus MRI install $153,097.45 $$$$153,097.456/26/2019 R2064500/ROOP19C0010 3T GE Signa MRI (Ass0ts 200174-200180;200183)$1,506,529.08 $$$$1,506,529.086/13/2019 ROXX18C0020 Healthcare Technology Management Expansion at 1937 Building $261,827.59 $$$$261,827.5910/2/2019 ROXX19E0180 RST Practice Optimization Acceleration $240,840.07 $$$$240,840.078/27/2018 7R151420 E17-3007 DE-MCR-CT-MBM-I-MP Hybrid Suite Phase 2 $1,292,174.34 $$$$1,292,174.34[vro1»_q cc2033104 /7R1s12o PHILIPS;AZURION 7 M20 (Asset 192750)$1,259,678.14 $$$$1,259,678.146/28/2018 7R170290 Human Cellular Therapy Expansion $2,040,947.48 $$612,005.50 $612,005.50 $2,652,952.9812/6/2018 7R180260 Revenue cycle consolidation /relocation $3,978,716.31 $$s $3,978,716.318/12/2019 ROSI19C0010.-ROSI19C0016 Subway Refresh Project $19,932,021.22 $$236,289.11 $236,289.11 $20,168,310.3310/2/2019 R2047012 7R180120 GE;SIGNA PREMIER 3T (Assets 197210;197272.197290)$2,635,208.68 $$$$2,635,208.689/30/2019 7R170280 Remodel Mayo W15 Lobby and Reception $1,031,244.21 $$219,628.79 $219,628.79 $1,250,873.0011/01/19 7R170590 Block 6 Parking Ramp Disco Square $5,903,900.72 $$26,639,493.99 $26,639,493.99 $32,543,394.7107/17/19 7R170750 Saint Marys Hopsital Shared Procedural/Simulation/Techology $2,215,197.16 $$2,540.38 $2,540.38 $2,217,737.5412/10/2020 7R170980 RMC Surgical Remodel Phase 2 0l5 $16,066,278.27 $$1,435,513.28 $1,435,513.28 $17,501,791.5509/19/18 ]7R1801o Patient Lift Installations Mary Brigh 6D $285,286.53 $$230,261.09 s 230,261.09 $515,547.8212/18/19 7R180280 Gonda 9 GIH Endoscopy Remodel $2,019,408.83 $$99,964.16 $99.964.16 s 2,119,372.99
9r/29/2021 7R180300 E18-3004 CT-MCR-ETM-I-MP-HPS-Phase 3 $236,152.39 $$2,234,701.13 $2,234,701.13 $2,470,853.52
3/31/2020 7R180420 2018 Nurse Call System Replacement $249,939.30 $$21,892.54 $21,892.54 $271,831.846/23/2021 7R180590/R0JO18C0030 CV Echo/Stress Consolidationwith Renovation on Joseph 4 Infrastructure $1,326,880.38 $$3,518,560.87 $3,518,560.87 $4,845,441.25
06/26/19 7R180970 E19-3007 MR-CMR-NCL-I 3T $714,188.30 $$$$714,188.30
06/26/19 CPC2053403 /7R180970 SIEMENS;MAGNETOM VIDA (Assets 203494-203498;203501)$2,303,782.00 $$$$2,303,782.0004/10/19 7R180980 E19-3004 MR-MCR-CNL-R-NP MR Scanner $517,723.41 $$$$617,723.4104/10/19 CPC2051426 /7R180980 GE;SIGNA PREMIER 3T (Assets 206384,207102,207104,207105,207107,207°$2,350,807.00 $$$$2,350,807.009/30/2020 8R141000 Saint Marys Campus Peace Garden Landscaping $642,252.16 $$771,810.79 $771,810.79 $1,414,062.95
12/16/20 ROEI20C015O EI 07 Eisenberg 7-4 Remodel $2,506,985.90 $$458,904.27 s 458,904.27 $2,965,890.1712/18/19 ROFF19C0020 FF 01 Comprehensive Occupational Recoveryand Care Coordinat $541,495.56 $$923,405.27 $923,405.27 $1,464,900.83
12/04/19 ROGE19C0010 GE Inpatient Units Safety Updates and Renovation $4,333,697.20 $$(147,513.06)$(147,513.06)$4,186,184.14
03/11/20 ROGE20C0010 GE 03 Generoso 3W and 3E Safety and Renovations $3,378,648.54 $$246,081.77 s 246,081.77 $3,624,730.3112/18/19 ROGO19C0020 GO 12 Center for Aesthetic Medicine and Surgery $1,504,070.61 s $(2,217.26)$(2,217.26)$1,501,853.3502/26/20 ROGO19CO050 GO 03 SC19-3003 MR-MCR-GO34-Patient Prep Remodel $1,617,248.56 $$42,766.62 $42,766.62 $1,660,015.18
12/16/20 ROGO19CO090 GO 06 Exam Buildout $4,053,387.93 $$399,567.87 s 399,567.87 $4,452,955.80
08/28/20 ROGO19C0100 GO Increase in Capacity for Chemo Chairs $1,141,177.19 $$1,191,380.44 $1,191,380.44 $2,332,557.631/13/2021 ROGO20C0060 GO 12 Medivator Redesign $286,810.17 $$14,035.29 s 14,035.29 $300,845.4610/02/19 ROJO18C0010 JO Relocation of Occupants to Consolidate Echo Stress s 90,903.83 $$5,266.41 s 5.266.41 $96,170.24
11/27/19 ROMB19COO10 MB 01 Frozen Section Laboratory Remodel $1,732,789.00 $$1,300,550.01 $1,300,550.01 $3,033,319.0112/07/20 ROMB19C0020 MB MN SC19-3002 DE-MCR-MBM-R-MP Reading Rooms $657,674.41 $$$$657,674.41
10/14/20 ROMB19CO0090/ROMB19C01OO MB Core 500 West OR Renovation -North and South $3,206,421.56 $$97,631.96 $97,631.96 $3,304,053.523/31/2020 ROSI19C0020 SI 04 Conferencing Center Refurbish $3,386,764.63 $$$$3,386,764.63
08/26/19 ROXX19C0050 E19-3005 CT-MCR-DT#1-I-CT Scanner $616,162.47 $$14,874.24 $14,874.24 $631,036.7106/26/19 CPC2064304 /ROXX19C0050 SIEMENS;SOMATOM DEFINITION (Asset 205102)$1,979,199.00 $$$s 1,979,199.001/19/2021 ROXX19C0270 Outpatient Hematology &CAR.T Movo to Charlton-Eisenberg $3,532,441.80 $$725,615.17 $725,615.17 $4,258,056.974/7/2021 ROET20C0010 E21-3005 VNI-MCR-ETMN-R-Anglo Rm 6 $95,204.45 $$6,120.78 $6,120.78 $101,325.234n7/2021 CPC2073663 /ROET20C0010 SIEMENS;ARTIS Q (Asset 209373)$921,342.00 $$$$921,342.0012/16/20 ROGO20C0290 GO 15 Pain Procedure Room Fluoro Equipment Replacement $159,397.28 $$41,845.33 $41,845.33 $201,242.61
6/9/2021 ROJB20C0010 JB Shell Space lo an Incremental OR $192,553.63 $$475,247.13 $475,247.13 $667,800.761/13/2021 ROSU20C0020 RST SDSC OIce to Lab Conversion $2,236,842.53 $$1,393,045.00 $1,393,045.00 $3,629,887.537/45/2021 ROOP20C0010 OP SL Opus and Keten Utility $259,951.11 $$8,551,706.97 $8,551,706.97 $8,811,658.086/1/2019 $7,690,903.86 $43,604,890.30 $43,604,890.30 $51,295,712/18/2019 $$332,920.70 $698,670.34 $6981/6/2022 $$774,291.49 $8 292.ROCH20COO30 $$303,929.39 $
ROCH2OCO0AO $$250,145.89 $
$$
$$
$$
$$
$$
$$
$$
$$
$$
$$:$
$
$
$
$
$
$
/t $
$
12 $8/4 $1/r $
8/11 $3/23/$
6/23/.$
$
$
$0 s
$
$
$
$
$s .94
ATTACHMENT 2-4 37
EXHIBIT C
Permitted Expenditures from July 1,2013 to December 31,2022
Prior Years
2013 -2021 Expenditures Total
Expenditures not previously 2022 Expeditures
Approval Date Project/Req Number Project/Equipment Name Reported reported Expenditures reported for 2022
1/30/2020 RoGo19coooo GOFood Services Catering Area Remodeling $$29,400.00 $306,43O.01 $335,830.01
9/18/2019 ROHl18C0010 HI Deionized Water Distribution $$2,750,516.63 $309,670.37 $3,060,187.00
6/26/2019 ROJO19C0030 Jo Infrastructure 2019 Scope B $$574.80 $1,026,789.91 $1,027,364.71
11/27/2019 ROMB1 9COO60 MB 07 Patient Lift Installation for MB 7G $$17,450.79 $526,725.88 $544,176.65
3/11/2020 ROMB19C0110 MB Gamma Knife Upgrade $$290,258.75 $$290,258.75
ROMB20COO70 MB 5D-E CONVERTING TO NICU $$2,813,613.24 $$2,813,613.24
4/25/2019 ROPP19C0010 PP SMC Essential Power Controls $$1,503,810.37 $266,859.35 $1,770,669.72
3/27/2019 ROXX18E0050 Exterior LED Lighting Energy Efficiency Improvement -Expens $$524,128.68 $23,O60.75 $547,189.43
12/1812019 ROXX19CO040 IV Transfusion Specialty Team Space $$610,050.37 $1,281.89 $611,332.26
7/7/2021 ROHl20C0020/CPC2082275 NovaSeq $$$792,850.00 $792,850.00
8/18/2022 ROMA22COO10/CPC2080913 CT-MCR-MA3-42W-1-CT Scanner and In]$$$1,000,000.00 $1,000,000.00
ROEI2 1C0030/0PC2080017 NM-MCR-EI--Theranostics Treatment Center-Phase 2 -Equipment $$$1,248,423.99 $1,248,423.99
ROBA20C0010/CPC2073540 RAD-MCR-MA16-R-Siemens Peds Fluoro Rm $$$499,797.00 $499,797.00
RONT21C0010/CPC2078573 Rapids Food Service $$$210,072.77 $210,072.77
ROBA20CO010/CPC2073358 RAD-MCR-BA-SL-137-8138 R-Rad Rm DR Conv (2)$$$343,005.00 $343,005.00
ROCH20C0030/CPC2078959 Varian $$$77,000.01 $77,000.01
Total Spent as 0
of December
31st 2022
$335,830.01
$3,060,187.00
$1,027,364.71
$544,176.65
$290,256.75
$2,813,613.24
$1,770,669.72
$547,189.43
$611,332.26
$792,850.00
$1,000,000.00
$1,248,423.99
$499,797.00
$210,072.77$343,005.00
$77,000.01
Is762070,16.o»s 1613O1230 /s1.+oo.we.7o IA7A.AsAIOI$s4.702.so.owl
/
ATTACHMENT
THREE
»
EXHIBIT C
ATTACHMENT 3
Certification of Expenditure
Destination Medical Center
For Calendar Year 2022
Due to Commissioner of Employment and Economic Development (DEED)by April 1,2023
The Medical Business Entity and the Destination Medical Center Corporation (DMCC)Board of Directors (assisted by
the City of Rochester)hereby submit to the Department of Employment and Economic Development (DEED)the
following report for expenditures that relate to the Destination Medical Center (DMC)Development for the calendar
year 2022,and the certifications required to support the documentation under the City of Rochester Commissioner of
Employment and Economic Development State Infrastructure Aid Agreement.
Expenditures Reported this Year
Total Expenditures Reported This Year by Medical Business Entity'
Total Expenditures Reported This Year for other Private Entities'?
TOTAL Expenditures This Year
All Expenditures claimed since June 30,2013
Previous Years Expenditures (cumulative)
TOTAL Expenditures This Year?(trom Box 3)
All Claimed Expenditures as of 12/31/22 (ox 4 plus Box 5)
Qualified Expenditures claimed in 2022 (Box 6 minus $200,000,000)
$172,632,461.06
$26,456,228.36 2
$199,088,689.4 3
$1,262,043,959.32 4
$199,088,689.42 5
$1,461,132,648.74 6
$1,261,132,648.7 7
State Aid Qualified for This Year (local government match also required)
General State Infrastructure Aid Qualified for (Box 7 multiplied by .0275)
State Transit Aid Qualified for (Box 7 multiplied by .0075 and then multiplied by .6)
$34,681,147.84 8
$5,675,096.92 9
0 By providing my signature below,I am hereby certifying that,to the best of my knowledge,the information stated
herein is accurate,true,and complies with the provisions of Minnesota Statutes Section 467.47 and the approved
methodology as outlined in the City of Rochester Commissioner of Employment and Economic Development State
Infrastructure Aid Agreement.
For Expenditures By the Medical Business Entity:
Mayo Clinic Chief Financial Officer
For all other Expenditures:4...«ill4
Destination Medical Center corporas,lt}
3-20-23
Date
1Expenditures need to be after June 30,2013
?Other Private Entities'certification of expenses may be certified retroactively in 2014 after the Destination Medical
Center District and Development Plan are adopted.
3This figure is based solely upon project building permit costs.Minn.Stat.§469.47,subd 1(d)permits additional
expenditures,and discussion is underway as to how to document such additional expenditures,which may result in
adjustments.
Form Revised 03/2023
ATTACHMENT 3-1
39
kwm
:c
"ANNUAL
CERTIFICATIONLlorcrEXPENDITURES .
CITY OF ROCHESTER'S
CERTIFIED
EXPENDITURES
JUNE 2013 THROUGH
DECEMBER 2022
{\a@]e"[8]al@
March 22,2023
City of Rochester
201 4th Street SE
Rochester,MN 55904
Phone:507-328-2900
F0:507-328-2901
Kevin McKinnon
Interim Commissioner
Minnesota Department of Employment and Economic Development
Economic Development Division
1st National Bank Building
332 Minnesota Street Suite E200
St Paul,MN 55101-1351
RE:City of Rochester DMC Certificate of Contributions for January 1,2022 through December 31,
2022
Dear Interim Commissioner McKinnon:
The City of Rochester is hereby certifying local contributions of $4,053,263.02 under General Aid
Contributions and $9,081,280.13 under Transit Aid Contributions for calendar year 2022 towards the
local matching contributions for the Destination Medical Center development.This amount is in
addition to the City's previous certification of $56,861,752.64 for the period from June 30,2013
through December 31,2021.This brings the total amount for the period from June 30,2013,to
December 31,2022,to $60,915,015.66 under General Aid Contributions and $9,081,280.13 under
Transit Aid Contributions on the attached Certification of Contributions.This certification is pursuant
to the executed agreement between DEED and the City of Rochester.The certification is made
based on unaudited numbers.Pursuant to that agreement,the City may revise this certification
based on adjustments made prior to June 1 of this year.
The City looks forward to working with your staff to review this information and to provide any
explanations or documentation that they should require.
The City sincerely appreciates the assistance that has been and continues to be provided to us from
you and your staff as we undertake this important DMC Development for Minnesota.
Sincere)y,A
,.~/
a-L-
n,Mayor
City of Rochester,Minnesota
cc:Jeremy LaCroix
Brent Svenby
Pamela Wheelock
Alison Zelms
Aaron Parrish
201 4th Street SE,Rochester,MN 66904
Cindy Steinhauser
Dale Martinson
Amanda Mack
Kaela Brennan
Patrick Seeb
Phone:507-328-2900 Fax:607-328-2901 www.rochestermn.gov 41
Certification of Contributions
City of Rochester
For Calendar Year 2022
Due to Commissioner of Employment and Economic Development (DEED)by April 1
The City of Rochester hereby submits to the Department of Employment and Economic Development (DEED)the following report
for Contributions that relate to the Destination Medical Center (DMC}Development for the calendar year 2022,as required by the
City of Rochester Commissioner of Employment and Economic Development State Infrastructure Aid Agreement.The city may
revise this certification based on audit adjustments prior to June 1.
0
General Aid Contributions Reported this Year
TOTAL Contributions Reported This Year by the City of Rochester'
General State Aid Qualified for this Year (Medical Entity/DMCC match also required)
General State Infrastructure Aid Qualified for (Annual Exp.multiplied by $2.55)
4,053,263.02]1
10,335,820.70]2
$56,861,752.64
$4,053,263.02
$60,915,015.66
Cumulative City General Aid Contributions
Cumulative Previous Contributions
Contributions This Year
Cumulative Contributions as of 12/31/2022
Cumulative State Aid Qualified for as of 12/31/2022
State GSIA expended this year
From Box 1
Add Box 3 and Box 4
3
4
5
155,333,289.93]
9,081280.13]8 o
13621,920.20]9
0 10
9,081,280.13 11
9,081,280.13 12
13,621,920.20]13
@ 14
From Box 8
Add Box 12 multiplied by 1.s I.___Cumulative State Aid Qualified for as of 12/31/2022
State Transit Aid expended this year
Transit Aid Contributions Reported this Year
Transit Aid Contributions Reported This Year by the City of Rochester'?
Transit State Aid Qualified for this Year (Medical Entlty/DMCC match also required)
State Transit Aid Aid Qualified for Add Box 8 multiplied by1.5['
Cumulative City Transit Aid Contributions
Cumulative Previous Contributions
Contributions This Year (from Box 8)
Cumulative Contributions as of 12/31/20202
By providing my signature below,I am hereby certifying the information stated herein Is accurate,true and complies with the
provisions of Statute 469.47 of the State of Minnesota and the approved methodology as outlined In the City of Rochester
1 Funds expended need to be after June 30,2013
2 Tranist Aid match may come from the City or Olmsted County
Commissioner of Empl
</,,,.
/
(
nd Economic Development State Infrastructure Aid Agreement.
T Tate
3/a4la3
Date 0
42
l-
0
r>Lu
DEED
CERTIFICATIONS
4«3
EMPLOYMENT AND
ECONOMIC DEVELOPMENT 0
June 16,2023
The Honorable Kim Norton
Mayor,City of Rochester
201 4 Street SE -Room 281
Rochester,MN 55904-3708
Dear Mayor Norton:
Thank you for submitting the 2022 Certification of Contributions for Destination Medical Center (DMC).
We are excited to assist with this initiative to make the Mayo Clinic,Rochester,and Minnesota a premier
medical destination.
Your 2022 Certification listed $4,053,263.02 in city general aid contributions between July 1,2013 and
December 31,2022.You provided a detailed listing of 367 expenditures.These expenditures consisted
of direct DMC expenses paid by the city as well as DMC Corporation and DMC Economic Development
Authority expenses paid for by the city.From that list,DEED randomly selected 25 expenses for review.Q
We reviewed invoices,payments and city payroll files for accuracy and eligibility.
Your 2022 Certification also listed $9,081,280.13 in city transit contributions between July 1,2013 and
December 31,2022.You provided a detailed listing of 99 expenditures.These expenditures consisted of
DMC expenses paid by the city for transit projects.From that list,DEED randomly selected 13 expenses
for review.We reviewed invoices,payments and city payroll files for accuracy and eligibility.
Additionally,the city provided DEED with an independent third party report from Clifton Larson Allen
stating the law and procedures for certifying contributions are being followed properly.
The amount of your general aid contributions qualifies the city for the annual maximum of $30,000,000
of general state infrastructure aid and the annual maximum of state transit aid of $7,500,000.We will be
providing these payments prior to September 1 as mandated by statute.
Thank you again for your efforts on this groundbreaking economic development effort.
C:Pamela Wheelock,Chair of Destination Medical Center Corporation
Dennis Dahlen,Chief Financial Officer Mayo Clinic
Patrick Seeb,Economic Development Agency Executive Director
0
44
£es
Commissioner
EMPLOYMENT AND
ECONOMIC DEVELOPMENT
June 16,2023
Pamela Wheelock,Chair
Destination Medical Center Corporation
C/O Kaela Brennan
McGrann Shea Carnival
Straughn &Lamb,Chartered
800 Nicollet Mall,Suite 2600
Minneapolis,MN 55402-7035
Dennis Dahlen,Chief Financial Officer
Mayo Clinic
200 First Street SW
Rochester,MN 55905
Dear Ms.Wheelock and Mr.Dahlen:
Thank you for submitting the 2022 Certification of Expenditures for Destination Medical Center (DMC).
We are excited to assist with this initiative to make the Mayo Clinic,Rochester,and Minnesota a premier
medical destination.
Your certification listed $172,632,461.06 in Mayo Clinic expenditures and $26,456,228.36 in other
expenditures.The Mayo Clinic provided DEED with information on all invoices and payments (more than
15,000 entries)to account for their certification amount.You also provided an independent third party
report from Ernst &Young LLP stating the law and procedures for certifying expenditures are being
followed properly.Additionally,DEED staff reviewed invoices and payments in your certification.We
selected 66 expenditures totaling $8,480,253.15.We selected one expenditure from each of the 56 new
projects listed.All invoices for the selected expenditures were on file and payments were made in a
timely fashion.DEED staff also confirmed that projects had building permits secured after June 30,2013.
DEED acknowledges the expenses and payments met guidelines and the internal accounting and
auditing system the Mayo Clinic has in place is sufficient.
Additionally,the DMCC and the City of Rochester provided DEED with a list of 19 completed projects for
$5,956,841.00 in expenditures.DEED randomly selected 10 permits and was provided with copies of the
permit application,permit,project closeout,and map of projects.From this information,DEED
confirmed the 10 projects'values,dates,eligibility,and completion.The city also approved
$20,499,387.30 in expenditures on 16 projects that are completed over multiple years.DMCC
contracted with Clifton Larson Allen (CLA)to complete a review on its Certification to insure it is correct.
CLA issued an opinion that the DMCC certification process was correct.
As required by law,I have determined that the amount of 2022 Destination Medical Center
Expenditures are the $199,088,689.42 as you certified.DMC cumulative Expenditures are now
$1,461,132,648.74.As directed by statute,$200 million is subtracted from this amount to provide
45
Qualified Expenditures of $1,261,132,648.74.
Based on this figure and adequate general aid Contributions from the city,I have determined the City of
Rochester has qualified for $30,000,000 of General State Infrastructure Aid in 2023.As per state statute,
this payment will be made prior to September 1.
Also based on Qualified Expenditures of $1,261,132,648.74 and adequate Transit Aid Contributions from
the city,I have determined the City of Rochester has qualified for $7,500,000 of Transit State Aid in
2023.This payment will be made prior to September 1.
Thank you again for your efforts on this groundbreaking economic development effort.
e rd /
le
Mctnon
Interim Commissioner
C:Patrick Seeb,Economic Development Agency Executive Director
Brent Sven by,City of Rochester
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46
EXHIBIT
CIT DEBT
SERVICE SCHEDULE
$21,265,000
ROCHESTER,MINNESOTA
General Obligation Tax Increment Revenue Bonds,Series 2017B
(Parking Ramp Project)a
Post-Sale DEBT SERVICE SCHEDULE
B0r,id ¥ear Ji)ollars ,,,,.:,................................$254,390.21
Aaveragacife.........................................................................................................................................................................11.963 Years
AaveragECoupon .-.-,'...'.:.................3.2177754%
IRS Form 8038
Net Interest Cost.,,.............2.6154299%
W.ei@hted Average Maturity ,.,:....11.612 Y.ears
Sees 2017 CO TF Pa'</SINGLE PJVOSE/A0j16/2017 48
o
11/16/2017
11/16/2017
8/01/2018
2.7176241%
2.6417803%
2.6130470%
2.6889724%
COUPON INTEREST TOTAL P+I
540,639.84 540,639.84
5.000%381,628.13 931,628.13
367,878.13 367,878.13
5.000%367,878.13 1,102,878.13
349,503.13 349,503.13
5.000%349,503.13 1,124,503.13
330,128.13 330,128.13
5.000%330,128.13 1,145,128.13
309,753.13 309,753.13'
5.000%309,753.13 1,164,753.13
288,378.13 288,378.13
5.000%288,378.13 1,183,378.13
266,003.13 266,003.13
5.000%266,003.13 1,206,003.13
242,503.13 242,503.13
5.000%242,503.13 1,232,503.13
217,753.13 217,753.13
5.000%217,753.13 1,252,753.13
191,878.13 191,878.13
2.000%191,878.13 1,281,878.13
180,978.13 180,978.13
2.250%180,978.13 1,290,978.1·3 a168,490.63 168,490.63
3.000%168,490.63 1,303,490.63
151,465.63 151,465.63
2.750%151,465.63 1,321,465.63
135,378.13 135,378.13
2.750%135,378.13 1,335,378.13
118,878.13 118,878.13
2.875%118,878.13 1,353,878.13
101,125.00 101,125.00
2.875%101,125.00 1,371,125.00
82,868.75 82,868.75
3.000%82,868.75 1,387,868.75
63,293.75 63,293.75
3.000%63,293.75 1,408,293.75
43,118.75 43,118.75
3.000%43,118.75 1,428,118.75
22,343.75 22,343.75
3.125%22,343.75 1,452,343.75
$8,185,705.47 $29,450.,705.47
PRINCIPAL
!'Net Interest Cost,(NIC):'.•,..,:,,,.
True llilter.est Cost /TIC):,::.'.
Bond Yield for Arbitrage HurpOSeS..........··.············.···.·..····.···..·................···········..............................···..........·········
All Inclusive Cost (1,/.IC),,,,.·.
Dated Elate ..::,::,:.
Delivery !Date :.'.',.
First Ce,;oup.0n Date ,,,..
Yield Statistics
DATE
02/01/2018
08/01/2018
02/01/2019 550,000.00
08/01/2019
02/01/2020 735,000.00
08/01/2020
02/0 1/2021 775,000.00
08/01/2021
02/01/2022 815,000.00
08/01/2022
02/01/2023 855,000.00
08/01/2023
02/01/2024 895,000.00
08/01/2024
02/01/2025 940,000.00
08/01/2025
02/01/2026 990,000.00
08/01/2026
02/01/2027 1,035,000.00
08/01/2027
02/01/2028 1,090,000.00
08/01/2028
02/01/2029 1,110,000.00
08/01/2029
02/01/2030 1,135,000.00
08/01/2030
02/01/2031 1,170,000.00
08/01/2031
02/01/2032 1,200,000.00
08/01/2032
02/01/2033 1,235,000.00
08/01/2033
02/01/2034 1,270,000.00
08/01/2034
02/01/2035 1,305,000.00
08/01/2035
02/01/2036 1,345,000.00
08/01/2036
02/01/2037 1,385,000.00
08/01/2037
02/01/2038 1,430,000.00
Total $21,265,000.00
SIGNIFICANT DATES
t