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2025 Legislative Priorities
CITY OF ROCHESTER 2025 LEGISLATIVE PRIORITIES - ADOPTED BY CITY COUNCIL ON 12/9/2024
City Vision, Principles, and Priorities
Rochester at a Glance
State Priorities
Airport Solar Array Parking and EV Charging Stations (Bonding)
Sewer Infrastructure Investments for Housing Opportunities (Bonding)
Riverfront Redevelopment Planning (Bonding)
Chateau Theater Liquor License Streamlining
Operations Funding for Bus Rapid Transit in Greater MN
Local Government Aid & Providing Regional Public Services
Housing and Zoning-State and City Government Roles
Resources for Continued Water Quality and Stewardship
Transportation
Energy, Sustainability, and Environmental Stewardship
Other Areas of Support
Federal Priorities
2024 Mayor and City Council Members
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3
4
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Table of Contents
1
CITY OF ROCHESTER 2025 LEGISLATIVE PRIORITIES - ADOPTED BY CITY COUNCIL ON 12/9/2024
Action Plan
Foundational
Principles
City
Vision
- Environmental Stewardship
- Fiscal Responsibility & Sustainability
- Public Safety
- Social Equity
- Compassion
Rochester is a City that cares. Where all people are treated with dignity and respect.
Where residents, employees, and visitors enjoy a high quality of life. Where business
and industry thrive, and where the land and environment are renewed and sustained
for the benefit of all. It is a welcoming and diverse community.
Renowned for its reputation as a center for growth and innovation.
Characterized by its safe and friendly neighborhoods.
Committed to health and wellness for its people.
Connected both physically and socially.
Dedicated to the sustainable and responsible use of public resources.
Action Plans will be developed to identify
goals, actions, and performance
indicators that help advance priorities.
VISION, PRINCIPLES, AND PRIORITIES
Organizational
Vision A vibrant, compassionate,
innovative team.
Strategic Priorities - Affordable Living
- Economic Vibrancy and Growth Management
- Quality Services
In order to achieve these priorities, the Council has committed to a legislative and process structure
that emphasizes Strategic Governance and Inclusive Decision-Making:
*Legislative priorities are subject to update if needed based on council adopted strategic priorities
• Service delivery models consider partnerships
where City is not always the leader
• Decision-making is informed by citywide
communication and engagement strategy with
Diversity/Equity/Inclusion (DEI) at the forefront
• Teammates create action plans/annual
commitments aligned with Foundational
Principles and Strategic Priorities
• Policy and operational actions reflect
equitable community investment
Strategic Priority:
Affordable Living
Strategic Priority:
Economic Vibrancy and
Growth Management
Strategic Priority:
Quality Services
Areas of Focus
• Housing variety and affordability
• Transportation options and access
• Equitable regulatory landscape and
creative incentives
• Access to opportunities and
amenities
• Owner-occupied affordable housing
• Increasing ownership opportunities
for Black, Indigenous, People of Color,
and Seniors
Areas of Focus
• Create clarity, alignment, and unity with
economic development partners in defining
City leadership and community values
• Establish competitive and sustainable
approach to effectively allocate DMC
resources, Legislative allocations, and City
revenue
• Develop implementation tools and
strategies for Comprehensive Plan to ensure
current decisions reflect future projections
• Adopt design guidelines that better reflect
Council and community values
Areas of Focus
• Cultural and recreational
opportunities that provide access
and equity
• The organization and services reflect
changing demographics and needs
identified by the community
• Operations are sustainable,
integrated, and easy to navigate
• Service delivery is optimized,
cost effective, and reflect our
Foundational Principles
2
The City of Rochester is the third largest city
in the State of Minnesota, with a population
of over 125,000*, which is anticipated to grow
by 50% over the next 20 years. Rochester
is home to major employers including
Mayo Clinic and hosts a strong small
business community. Factors such as civic
engagement, affordable housing, a strong
regional economy and great education
options have helped the community stand
out for years.
Community at a Glance
• Median Age: 37
• Total Households: 49,984
• Median Home Price: $273,000
• 77% of white households are
homeowners compared to 22% of
Black/African Households
• 23.7% of residents are BIPOC
(approximately 45% of students at
Rochester Public Schools are BIPOC)
• 14% of residents are foreign born
• 82% of residents speak English only,
and 18% speak a language other
than English
• 16% of residents are age 65 and
older
• 10% of residents have a disability
• 6% of residents are veterans
• 9% of residents are below poverty
income level
Regional Center:30,000 commuters daily
3 million visitors annually
Incorporated
in 1854
Square miles
55 Population125,000*
• Gold LEED City• AAA Bonding Rating• Certificate of Achievement for Excellence in Financial Reporting for almost 50 years• Top 3 Best Places to Live in the U.S. - Livability• Top 7 Most Beautiful Cities in MN - World Atlas• Top 25 Best Place to Retire - Forbes• Top 4 Best Cities to Buy a House in America - Niche Magazine
• Top 6 Best Small College Areas – University Business• First American City to become an Intercultural City (ICC)• Inclusive Workforce Employer (I-WE) Designation from Workforce Development Board of Southeast Minnesota
Awards & Accolades
Rochester at a Glance
*2022 estimate
CITY OF ROCHESTER 2025 LEGISLATIVE PRIORITIES - ADOPTED BY CITY COUNCIL ON 12/9/2024
4
Airport Solar Array Parking & Electric
Vehicle Charging Stations
Project Overview
As part of the Rochester International Airport (RST) commitment to environmental stewardship and
sustainability, incorporating renewable energy into
the airport campus will help the City meet its 100%
renewable energy goal by 2030. The installed solar
panels are expected to generate enough electricity
annually (871,000 kWh) to cover approximately half the terminal building’s current power needs. The system will
offset of 824 metric tons of CO2 emissions per year.
There would be 12 parking stalls with electric vehicle
(EV) charging access. A portion of the passenger
parking would be reconstructed to improve pavement
conditions and accessibility for users. The covered parking lot area (half of the total parking lot) would
feature covered parking and shelter for an estimated
200 vehicles. This is part of a larger Airport Parking
Improvement Project, which include a larger terminal
energy efficiency project pending federal funding.
Project Funding Details
$3 million state bonding request (50% of project cost)
$1 million City of Rochester airport reserves
$2 million federal funding request
$6 million total project cost
Background
The Rochester International Airport is a critical
gateway for SE MN. Air ambulance operations,
cargo carriers transporting medical supplies, and
patient travelers rely on RST. There are 190,000
passengers annually that use the airport and 103
million pounds of cargo, including 30,000 medical
patient samples that arrive daily to the airport
for processing and evaluation by Mayo Clinic
laboratories.
CITY OF ROCHESTER 2025 LEGISLATIVE PRIORITIES - ADOPTED BY CITY COUNCIL ON 12/9/2024
Sewer Master Plan
5
Sewer Infrastructure Investments for
Housing Opportunities (Bonding)
Project Overview
In order to increase the available land for
housing of all types, an increase of sewer pipe
capacity is needed. If we can increase land/lot
availability for housing (and decrease lot cost
with additional supply), it helps with housing
supply and affordability. This project will
promote infill development opportunities.
The East Zumbro Sewer Investment Project
would be primarily focused near Silver Lake
connection with impacts to the entire SE part
of the city, directly creating approximately
1,000 developable acres of land. This could
eventually include industrial users at the
Rochester International Airport and other
potential opportunities.
Project Funding Details
State request: $17.25M
(50% of total project cost)
Total Project Cost: $34.5M
(modeling, design, construction)
This project is phaseable and can be staged
(planning, construction).
This investment would directly create
approximately 1,000 developable acres of land
for housing/industrial/commercial uses.
Background
Our current water reclamation plant
(wastewater processing facility) has capacity
for additional users; our pipes in the city
need to be upsized for additional housing and
industrial users in the city. They were originally
built for a community of 120,000 population—
we now exceed this and are expected to
greatly exceed this population in the coming
years. This infrastructure is typically funded
via rates from sewer users. Current sewer rates
are high comparatively to surrounding areas.
State support for this project would allow it to
happen much sooner than it would otherwise.
Currently, additional housing lots at scale are
only available in the NW part of the city. This
would allow for additional housing and industrial
uses in the SE portion of the city.
It would be very challenging for Rochester to
compete successfully with the current public
facilities authority (PFA) requests along with
other communities in greater Minnesota. As
the third largest city, it makes more sense
to compare funding of this arena (sewer)
with requests and funding awarded to the
metropolitan area.
CITY OF ROCHESTER 2025 LEGISLATIVE PRIORITIES - ADOPTED BY CITY COUNCIL ON 12/9/2024
6
Riverfront Redevelopment-
Planning (Bonding)
Project Overview
The City of Rochester seeks funding
to improve publicly owned riverfront
property in the core of the City,
between the Government Center,
affordable senior housing and
residential uses, and a downtown
commercial district. The project
would repurpose aging surface and
structured parking and a vacant
commercial building and improve
accessibility (ADA) at skyway and
ground levels. Design, engineering,
environmental analysis, and site
remediation along with limited
demolition and construction of
public improvements would include
trails, trees, and infrastructure and
public amenities related to reuse of
the property as envisioned in the
Rochester Riverfront Area Wide Plan.
Project Funding Details
State request: $1M (50% of planning total cost)
Project is able to be phased into components
and into design, construction and other stages.
Background
This riverfront redevelopment project would
provide economic, environmental, and social
vibrancy through enhanced connection to nearby
downtown, University of Minnesota Rochester
(UMR), city services, and regional attractions.
Public investment in the public realm is key
to achieving goals around resiliency, public
access, accessibility, and building reuse. The
project would support local, diverse businesses
and programming that grow entrepreneurial
endeavors. Additional investments in vibrancy and
community assets are key to providing a positive
experience for residents and visitors.
Creating Opportunities for America’s City for Health
2.5 Acres Transformed
• Enhanced connection to downtown, University
of Minnesota Rochester (UMR), city services,
and regional attractions
• Leverage the riverfront as a destination and
natural corridor that better connects the trail
system to downtown
• Support local, diverse businesses and
programming that grow entrepreneurial
endeavors
• Improve accessibility, ensure universal access,
and connectivity to streetscapes, skyways,
subways, buildings and the riverway
• Expand economic development opportunities
and activate the public realm
Project Components- Budget
Riverfront Trail
Parking Ramp Demo
& Skyway Rebuild
Riverfront Public Realm
Redevelopment & Expansion
$4.75 million
$8.5 million
$18.3 million
$15 million
Riverfront Public Realm Redevelopment
Reconnecting Rochester to Economic, Environmental, and Social Vibrancy
Current State Concept
Concept
Community Engagement
View the full plan at:
www.qr1.be/LHYK
or scan the QR Code.
Creating Opportunities for America’s City for Health
2.5 Acres Transformed
• Enhanced connection to downtown, University
of Minnesota Rochester (UMR), city services,
and regional attractions
• Leverage the riverfront as a destination and
natural corridor that better connects the trail
system to downtown
• Support local, diverse businesses and
programming that grow entrepreneurial
endeavors
• Improve accessibility, ensure universal access,
and connectivity to streetscapes, skyways,
subways, buildings and the riverway
• Expand economic development opportunities
and activate the public realm
Project Components- Budget
Riverfront Trail
Parking Ramp Demo
& Skyway Rebuild
Riverfront Public Realm
Redevelopment & Expansion
$4.75 million
$8.5 million
$18.3 million
$15 million
Riverfront Public Realm RedevelopmentReconnecting Rochester to Economic, Environmental, and Social VibrancyCurrent State Concept
Concept
Community Engagement
View the full plan at:
www.qr1.be/LHYK
or scan the QR Code.
CITY OF ROCHESTER 2025 LEGISLATIVE PRIORITIES - ADOPTED BY CITY COUNCIL ON 12/9/2024
7
Chateau Theater-Liquor
License Streamlining
Issue
To sell liquor on-site, establishments must
obtain a license from the local government.
This can often be prohibitively expensive for
non-traditional business models that are not
restaurants or bars if the non-traditional
entity is eligible for licensure at all under State Statute. The state grants full liquor licenses to
certain types of businesses, such as theaters,
convention centers, and town ballparks.
Alternatively, venues can apply for a temporary on-sale license; however, this option can also
be costly and limits the sale of liquor to just 12
special events per year.
Rochester's historic Chateau Theater serves
as a theater, an event space, and a community asset in the heart of downtown. The venue
hosts various events, including weddings,
graduations, ceremonies, cultural celebrations,
art exhibitions, limited theater performances,
craft fairs, and more.
In other cities, similar establishments, such
as museums, cultural entertainment venues,
and concessionaires within art museums and
sports venues, have recently received special
legislation (see Minn. Stat. 340A.404, subd. 2) to provide additional support.
Problem
Chateau Theater does not meet the common
definition of a theater per Minn. Stat. 340A.404
(Subd 1, 8b).
Solution
State special legislation that would grant
a full liquor license to the the building of Chateau Theater (located at 15 1st Street SW
Rochester, MN 55902).
Impact
A liquor license would allow it to fully utilize
the space and maximize its potential uses for
the community, visitors, community events,
cultural groups, celebrations, and other uses.
It’s ability to produce revenue will be improved with an additional amenity to offer its events
and those of age that are interested in
participating.
CITY OF ROCHESTER 2025 LEGISLATIVE PRIORITIES - ADOPTED BY CITY COUNCIL ON 12/9/2024
8
Operations Funding for Bus
Rapid Transit in Greater MN
Issue
The City of Rochester will be the first bus
rapid transit system outside the metro area
when the Link opens in 2026 providing a 2.1
mile corridor in the community that has over
3 million visitors annually, 20,000 commuters
daily, and the 125,000 residents. Reliable
and suitable funding of a variety of state,
federal and other resources is vital to a
vibrant transportation and transit system for
Rochester.
In 2023, there was a 1.7% increase in funding
from the Moter Vehicle Sales Tax that went
to greater MN transit that is currently being
distributed to the same network of greater
MN transit providers as prior to the additional
funding. MNDOT is currently convening transit
operations stakeholders to begin examining a
potential formula update that is expected to
be implemented after 2026.
Current greater MN public transit systems
(including Rochester Public Transit fixed routes)
are supported by a mix of approximately 80%
state (via the Motor Vehicle Sales Tax) and 20%
local resources (via fares, advertising, or other
entities’ support). Given this precedent, it is
reasonable expectation for this proportion of
funding to extend to the new service line of bus
rapid transit systems in greater MN.
Problem
In addition to the upcoming bus rapid transit
Link route, the City of Rochester also will
continue to operate a fixed-route system
of Rochester Public Transit buses that rely
on the limited state and federal funding for
operations. The Link bus rapid transit system
will begin service in 2026 and operations will be
partially funded via partnership agreement with
a major local employer which allows for partial
coverage of the fare-free model (covers the
20% local part of transit funding model). City’s
public transit system that serves the region’s
workforce and economy, additional state
funding will be needed for bus rapid transit
systems.
Other sources of potential funding are already
allocated toward transportation projects in the
area or can only be used for capital/one-time
expenses not ongoing operations of a system.
Solution
Dedicated, reliable, and predictable funding for
bus rapid transit system operations from the
state for Link Bus Rapid Transit. This funding
should be in addition to the existing state
support for Rochester Public Transit system of
32 fixed route buses and paratransit system
that provided over 750,000 rides in 2022.
Projected ridership for new bus rapid transit is
2.8 million.
Bus rapid transit systems in greater MN,
including Rochester’s Link system, should
receive some of the additional MVST formula
funding for greater MN transit, due to
alignment with state goals around transit are
being achieved from Rochester’s BRT system.
Impact
Continued partnership of state funding for
public transit in greater MN allow for additional
service to residents who rely on and can use
public transit.
Public transit is an efficient way to transport
workers to employment, customers to
businesses, patients to health care, families
to entertainment and public amenities,
and provides residents a great option that
reduces carbon emissions, parking costs,
and other goals.
The Link bus rapid transit system will reduce
greenhouse gas emissions, provides an
accessible option for getting to work, home,
school, and leisure activities along the route
which will go through the downtown corridor. It
also helps Rochester meet its goal to reduce
single-occupancy vehicle trips into downtown
by nearly 30% in the next 20 years.
CITY OF ROCHESTER 2025 LEGISLATIVE PRIORITIES - ADOPTED BY CITY COUNCIL ON 12/9/2024
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Background
Rochester is the third largest city (pop.
125,000), is over 80% of the population
for Olmsted County, and is the only city
over 100,000 in greater Minnesota. All of
its neighboring cities are under 10,000
population. Rochester does not have a regional metropolitan government unit that provides
consolidated services like the metropolitan
area. Rather, Rochester provides many of
those services ‘in house’ (on the levy, or via
city of Rochester budget) such as library,
wastewater, transit, airport, parks system, and public safety. Most of these services are
utilized by the region, visitors, and residents.
There have been recent efforts at the
legislature to make improvements and account for the unique nature of services and formula
impacts to Rochester, including:
• 2021: Hold harmless provision for projected LGA
cuts post-pandemic (signed into law)
• 2023: Formula update & increase in LGA funding
overall at $564M (signed into law)
• 2024: $150 per capita floor for cities of the first
class (bill introduced)
Some previous one-time funding for services
have been shown successful to help support regional centers in greater MN. Such as:
• Public Safety Aid (Chapter 64, 2023 Regular
Session)
• One-Time funding; Population-based aid
• 2023 appropriated $5.34M to City of
Rochester
• This funded 11 programs that would
have either otherwise not been funded
Local Government Aid
& Providing Regional Public Services
or been funded from different sources.
Programs funded included: victim services
support, training for police and fire,
vehicle replacement, firefighter turnout
gear in compliance with OSHA standards,
emergency management facilities, matching
federal grant for police department,
technology support for public safety, and
community services outreach efforts.
• Statewide Affordable Housing Aid (Minn. Stat. 477A.36)
• Ongoing; aid is calculated based on % of
cost burdened households paying more than
30% of income on rent/housing via American
Community Survey
• 2025 amount for Rochester projected at
$250,117
• Funding from 2023 and 2024 funded fee
permit waivers for tax credit project and tax
abatement program (one-time aid increase
in 2023 and 2024 resulted in $545,926 to
Rochester).
• Accessible facilities/ADA public
infrastructure funding (2023 Regular
Session: Chapter 68, Article 1, sec. 17,
subd 14)
• One-time appropriation
• $5M appropriate split among the four cities
of the first class with Rochester receiving
approximately $900,000.
• This funded 23 deficient pedestrian ramps
throughout the city in alignment with city’s
ADA transition plan (total need for ADA
transition plan estimated at $4M).
CITY OF ROCHESTER 2025 LEGISLATIVE PRIORITIES - ADOPTED BY CITY COUNCIL ON 12/9/2024
Local Government Aid- State/Local
Partnership (Continued)
10
Solution
• Protecting local government aid (LGA)
funding and updating formula
• Increase state appropriation to local
government aid (LGA) overall to allow for upward projection, including inflationary
increase—governments encounter the same
inflationary pressures of anyone buying
materials and supplies to serve the public
• Modernize and reform the local government
aid formula to better account for regional
centers in greater MN such as Rochester.
This could include separate tier of formula
factors for these cities.
• Modernize and reform LGA formula factors
or other funding from the state for cities
that are implementing desired zoning for
increased housing (e.g. allowing multifamily
in more zones; allowing ADU’s city wide,
lower parking minimums, removing aesthetic or design standards for single
family homes, encouraging housing density
near transit corridors) while also allowing
for local context in consideration of zoning.
• Preserve and increase state funding
to Rochester for accessibility ADA
infrastructure, public safety aid,
microtransit funding, housing and
homelessness, and other similar funding.
Impact
Targeted aid at communities that provide
regional and state assets on a local level that requires local resources not only for the
service, but ancillary impacts of providing
those services (additional calls for service,
homelessness/housing supports).
Issue
Rochester and other regional centers
in greater MN are unique. Rochester
provides services for the region that other
communities, especially in the metro area,
have other ways to help fund. For example,
library, comprehensive parks and trails
systems, airport, transit system, wastewater
treatment, and more. The current LGA formula
does not account for regional centers that
provide services used by residents, neighboring
communities, and visitors.
Rochester receives $42 per capita of local
government aid (LGA) funding, while other
cities of the first class receive much more.
There are 13 cities smaller than Rochester
which receive more LGA.
There are 102 cities over 10,000 population. All
of their LGA is determined by the same four
formula factors:
1. Percent of housing built before 1940
2. Share of the city’s population age 65 and
over
3. Share of the city’s tax base classified as
commercial, industrial, or utility property
4. Population decline from the city’s peak population in the last 40 years
City of the
First Class 2024 Amount Per Capita
St. Paul $82M $265
Minneapolis $82M $191
Duluth $35M $406
Rochester $5M $42
CITY OF ROCHESTER 2025 LEGISLATIVE PRIORITIES - ADOPTED BY CITY COUNCIL ON 12/9/2024
11
Housing and Zoning-State
and City Government Roles
Issue
The 2020 Maxfield Housing Study of the City of
Rochester and Olmsted County demonstrated a need for over 18,000 housing units through
2030. This includes over 5,400 senior housing
units, over 5,000 rental units (including market
rate, naturally occurring affordable, and
subsidized), and over 5,600 new and existing
single-family homes. In 2023, approximately 200 single family and 500 multifamily permits
were issued. The City of Rochester has a racial
homeownership gap, similar to the state as
a whole: 22% of BIPOC (Black, Indigenous,
People of Color) households are homeowners,
compared to 76% homeownership rate for overall Olmsted County population. A
local community engagement co-design
effort related to BIPOC homeownership was
conducted. It was made up of key stakeholders
from financial/lending institutions, realtors,
community housing support stakeholders, developers/builders, and BIPOC community.
The report highlighted themes of education,
navigation, belonging, safety and security,
structural racial barriers, mentorship, and
representation. These facets were identified
as barriers and opportunities to address the racial homeownership gap.
Cities play a critical role in local housing
and zoning by shaping district designations, land use policies, development standards,
and administrative processes. Rochester
recently undertook a comprehensive overhaul
of its zoning code, now called the “Unified
Development Code” (UDC).
Recognizing that complex regulations
can sometimes act as barriers to housing
production, the UDC introduces significant
reforms to streamline the development process. Key changes include reducing the
number of residential districts, eliminating
purely commercial districts, and shifting
neighborhood engagement to earlier stages
of the process.
The UDC is a modern zoning code that creates
more predictability in the process, allows for
more areas and flexibility of where housing
can be built (particularly for multifamily housing), reduces minimum lot sizes, removes
artificial density limits, and creates additional
flexibility around parking requirements for
multifamily housing.
The UDC includes built in flexibility,
predictability in development process and
outcomes (for both developer, city, and neighborhood), many approvals by right/at
city administrative level, and faster process
(typical approval for projects are 30-60 days).
The base zoning code:
• Allows multifamily projects in all
‘commercial’ type areas (zoning code
uses mixed use zoning rather than purely
commercial zones)
• Does not have aesthetic requirements for
single family homes (e.g. no brick fascade
requirement, no garage requirement, no
deck requirement)
• Reduced parking requirements to .5
spaces per unit or lower if closer to
transit corridor. No additional parking
requirement for adaptive reuse of
existing buildings.
• Allows ADUs in all zoning districts
(requirement for owner to occupy at least
primary residence or ADU)
• Maintains important urban design for mixed use and multi-family projects
with over 5 units. Standards are for
improved livability rather than aesthetics,
to support access to transportation
alternatives and sustainable lifestyle. A
menu of options for developers focus on building interface with public sidewalk and
resident connection to community.
• Does not include Floor-to-Area ratios
CITY OF ROCHESTER 2025 LEGISLATIVE PRIORITIES - ADOPTED BY CITY COUNCIL ON 12/9/2024
12
Housing and Zoning-State and City
Government Roles (Continued)
Problem
Approximately one-third of Rochester’s
households have a need for affordable
housing. While different measures might
be used to define affordability, the general
definition most often used is that housing
costs of more than 30% of a household's income is not affordable. The greatest need
is for housing options at 30-55% Area Median
Income (AMI). Housing options at 70-90%
AMI level are also needed to address new job
growth in construction, education and health
care sectors.
The combination of higher borrowing and
construction costs, infrastructure challenges,
and rising operational costs presents a perfect storm for residential development. For
cities like Rochester, addressing these issues
requires innovative solutions such as public-
private partnerships, streamlined permitting
processes, and investments in infrastructure
to alleviate the financial burden on developers and homeowners alike. Without these
solutions, the cost of housing will continue to
rise, placing additional strain on residents and
limiting access to affordable homes.
Infrastructure limitations, as seen in Rochester
and other growing communities, further
complicate development. As more homes are
built, the demand for public services like water,
sewer, and transportation infrastructure increases. For example, the estimated $4.2
million to provide infrastructure for 500
single-family dwellings is a significant cost
that developers must incorporate into the
overall price of the homes. This, in turn, leads
to higher housing costs for future residents, making it even more difficult to provide
affordable housing options.
In places with constrained infrastructure, developers may choose to create private
infrastructure (such as private roads) to
reduce the burden on local governments.
However, this often means additional costs
for homeowners, who are then required to pay
for the upkeep of these private roads through Homeowners Associations (HOAs). These
additional expenses can add to the financial
strain on households, perpetuating the cycle
of high housing costs.
In Rochester, there are commercial
developments (10+ stories) that are located
right next to some of Rochester’s most
established single family home neighborhoods.
Having standards that allow for predictability
in these translation areas, for both developers and neighborhoods is key, along with
allowing for neighborhood and developer
communication early in the process (as soon
as any application is received by the city).
Solutions
• Maintain local control for cities in terms of
urban design standards (e.g. pedestrian frontage, building and entrance orientation,
service locations, and facade variety) for
commercial/mixed use/downtown and for
neighborhood transition areas.
• Examine tools and changes to assist with lot availability and first time homebuyers.
• Consider increased efficiency and
predictability with final plat public hearing
requirements for more than four lots (single family subdivisions) and other options.
• Support increased state funding for
housing infrastructure bonds (HIBs) and
general obligation bonds, as well as sources
for public housing rehabilitation, to help address the immediate and growing need
for affordable housing.
CITY OF ROCHESTER 2025 LEGISLATIVE PRIORITIES - ADOPTED BY CITY COUNCIL ON 12/9/2024
13
Housing and Zoning-State and City
Government Roles (Continued)
• Support policies that will prevent and
reduce evictions and increase notices of,
and protections for, those being displaced especially during the winter. This could
include funding for Family Homeless
Prevention and Assistance Program (FHPAP)
and other similarly aimed programs.
• Support energy efficient new affordable
housing, as it will benefit lower-income
residents by lowering monthly costs and the
possibility that costs of poorly constructed
buildings are shifted onto its residents, in
addition to aiding in the city’s climate action plan.
• Support programs and funding for the
preservation of current housing stock, and
tenant protections.
• State funding to assist local efforts around
increased access to home ownership
including BIPOC home ownership
• Funding the Greater Minnesota Housing Naturally Occurring Affordable Housing
(NOAH) Fund.
• Consider tools and incentives, including
tax credits, for conversion of vacant commercial/office property into housing
• Changes to MN Housing Finance Agency
scoring criteria to reward projects that
utilize existing transportation and other
service infrastructure.
• Targeted funding for temporary homeless
sheltering, warming houses and other
support, including increased mental health
and chemical dependency treatment programs to reduce future growth in
homelessness and to protect our residents
struggling with these issues. This includes
support for programs to support capital
investment in local facilities, the Emergency
Services Grant Program (ESP), aid dedicated to providing homeless services.
Impact
These solutions will help implement the near-
term and long-term Affordable Housing Policy
Recommendations from the 2020 Affordable
Housing Study to support the creation and
retention of affordable housing in Rochester.
These solutions would also help implement the BIPOC homeownership report recommendations.
To reduce barriers to housing development,
regulatory tools are essential. Rochester’s
Comprehensive Plan, Unified Development
Code, Sanitary Sewer Master Plan, Growth Management Map, and Land Use Map provide
a framework for managing growth. Via the
updated zoning code, Rochester has approved
1,266 multi-family units since 2023 through the
more streamlined process. By being able to
update the city’s zoning code based on our unique character and factors, it demonstrates
importance of local control and that one-size-
fits-all, state-mandated housing and zoning
policies will likely not address the unique needs
of all communities.
The ability for Rochester to update its
zoning code based on local needs allowed
for progress on affordable housing,
sustainability, and equity goals. Namely with reduced minimum lot size, removed artificial
density limits, allowing diverse housing city-
wide, parking reduction, affordable housing
incentives considered at staff level, and
process predictability.
The City also plays a key role in addressing
housing needs through targeted programs and
resources. For example, the Economic Vitality
project, supported by a local sales tax, will generate up to $50 million over 16 years to fund
the newly established Homeownership Creation
Program, which provides fee reimbursements
for new for-sale
homes. A recent
$4 million award to Prairie Ridge
will support 201
new homes by
2027.
To incrementally
increase density,
Rochester is
exploring options
like an Accessory Dwelling Unit
(ADU) pilot
program
and various home rehabilitation initiatives
to preserve the existing housing stock.
Additionally, Tax Increment Financing (TIF) continues to be used to support both
multifamily and for-sale housing development.
CITY OF ROCHESTER 2025 LEGISLATIVE PRIORITIES - ADOPTED BY CITY COUNCIL ON 12/9/2024
Issue
The State of Minnesota’s new regulations
for lake and river eutrophication standards
require the City of Rochester to have a more
stringent phosphorus limitation on wastewater
treatment plant discharge (less than 1 mg/l).
This will require different treatment technology
than is currently at the Water Reclamation
plant. The Point Source Implementation
Grant (PSIG) is a program that provides
local governments 80% grant funding up to
$7 million (current cap per project) to help
fund some of the costs to meet these new
requirements.
Amounts of per- and polyfluoroalkyl
substances (PFAS), often called ‘forever
chemicals’ in ground water and water sources
is of heightened interest at the state and
federal level. Rochester is participating in a
recent measuring effort in partnership with
the MN Pollution Control Agency (MPCA) for
measuring PFAS being discharged to the Water
Reclamation Plant (WRP).
The City is developing strategies to help human
and natural systems become more resilient to
changes in precipitation levels and weather
patterns. A large part of that planning involves
assessing vulnerabilities and developing
plans to improve stormwater infrastructure
resilience and reduce localize flood risk,
improve the resilience of wastewater systems,
and adapt community services to meet the
needs of residents and businesses prior to,
during, and after an extreme event.
Problem
To ensure that the City of Rochester is able
to access these PSIG funds in the future,
it is important to include the Public Funding
Authority (PFA) bonding request and final
legislative appropriation at a funding level that
will support the requests coming from local
government for this grant money.
PFAS chemicals take many years to degrade
and are very prevalent in commonly used
products. Residents and commercial and
industrial businesses discharge PFAS laden
wastewater which flows to WRP and is
Resources for Continued Water
Quality & Stewardship
14
not treated by conventional treatment
technologies. PFAS treatment at the WRP
is not economically feasible, so source
identification and reduction is the primary
solution. Sampling for PFAS, identifying
sources, and finding alternative products is
time-consuming and expensive. It is also a
global problem that cannot be solved one City
at a time. Funding is needed to cover the cost
of sampling and much more research is needed
on sources and alternative products.
Currently there are funds available to assist
with climate related assessments and planning
however implementation funding is not
available. The current funding mechanisms are
set up to address water quality impairments
and not proactive planning associated with
climate adaptation. Without funding support
for implementation projects, there will be
delays in implementation or the need to scale
back needed projects.
CITY OF ROCHESTER 2025 LEGISLATIVE PRIORITIES - ADOPTED BY CITY COUNCIL ON 12/9/2024
15
Resources for Continued Water
Quality and Stewardship (Continued)
Solutions
• Support the inclusion of Public Facilities
Authority (PFA) request’s for Point Source
Implementation Grant (PSIG) in state
legislation (i.e. state bonding bill) at an
amount that would fully fund projects
awaiting funding from previous years and
current underway project at Rochester's
Water Reclamation Plant (WRP) that could
use PSIG funding.
• Assistance with managing additional PFAS
requirements in wastewater with funding
for sampling, assistance with research
and consumer education, and/or banning
PFAS materials at the source, along
with a narrowly focused protection for
municipalities to provide time to develop
holistic reduction strategies that protect
human health.
• Support continued funding for climate
resiliency efforts
• Encourage innovative projects that
provide multiple benefits such as climate
resiliency, water quality, and recreational
opportunities.
• Support sales tax exemption on
construction materials for current
Rochester Water Reclamation Plant (WRP)
update project. (~$3M savings to $92M
overall project).
Impact
The MPCA recently changed the regulation
on phosphorous limits for surface water.
Increasing Rochester’s chance to receive
PSIG funding will support construction and
work on current wastewater and storm water
treatment facilities to meet these standards
and improvement the water quality in
Rochester.
By partnering on monitoring and potential
funding for managing, cleaning up and
measuring PFAS, the issues associated with
these chemicals may be more likely to be
addressed in a productive manner. Banning
PFAS materials at the source would reduce
additional and future needs for remediation
and other costly impacts on local communities.
By providing implementation funding,
Rochester could move forward with valuable
climate adaptation projects like our Section 7
pond that will reduce the rate of flood water
entering the city and further consideration
of building the resiliency hubs that will be
identified through our climate resiliency hub
assessment and planning project.
Sales tax exemption for the current upgrade
project at the WRP would result in not needing
to use rate increases at projected levels to
support the current project. Expected savings
on project is on project is $3M.
CITY OF ROCHESTER 2025 LEGISLATIVE PRIORITIES - ADOPTED BY CITY COUNCIL ON 12/9/2024
16
Transportation
Issue
Similar to other cities in Minnesota, Rochester
is beginning to face major financial constraints
due to the cost of maintaining and repairing
the city’s network of streets, in addition to
a commitment to complete streets, active
transportation, bridge replacement, and
street reconstruction. Currently, there are
over 100 miles of streets that are at least 51
years or older in the city. Reliable and suitable
funding of a variety of state, federal and other
resources is vital to a vibrant transportation
and transit system for Rochester and the
region, such as:
• The Local Bridge Replacement Program
(LBRP; Minnesota State Statue 174.50)
provides local agencies transportation
funding for the reconstruction,
rehabilitation or removal of bridges or
structures in their local road system
through general obligation state bond
funds via the state bonding/capital
investment bill.
• The Transportation Advancement
Account (TAA) which provides funding
to local agencies for transportation
purposes (Minn Stat. 174.49; Minn. Stat.
168E.09, subd 2, and Minn Stat 297A.94).
• MNDOT programs such as Safe Routes to
School and Transportation Alternatives
that align with the city's active
transportation plan, complete streets
policy, and comprehensive plan.
Problem
Bridge maintenance and replacement costs
are heavily outpacing the bonding dollars
that have been passed by the legislature. In
addition, the funds available for the program
vary with each legislative appropriation. Due
to the similar age of bridges in the community,
an increased and continued need for bridge
repairs and replacements is anticipated in the
future. In order to address the necessary work
and plan for these important infrastructure
projects, there needs to be consistent and
adequate funding into the Local Bridge
Replacement Program via the state bonding
bill. The City of Rochester has an upcoming
bridge preservation project for the key corridor
of 37th Street NW (Bridge #55519) that could
benefit from this program’s funding. The
project cost is estimated to be $2.2M.
Additional tools and revenue for communities,
especially regional centers, for transportation
is key for continued investment in safety
and economic development. Current local
funding tools are appreciated but only provide
limited resources to fill the funding gap for
transportation. For example, Rochester
experiences approximately a $16M need each
year for transportation projects (with an
increase of $1M each year). Additional revenue
sources and policy tools are needed for street
infrastructure both new and reconstruction to
defray the impact on the property tax levy for
street improvements.
The City adopted an Active Transportation Plan
in 2022 which includes various opportunities
for multi-modal infrastructure that would
transform active transportation into a primary
mode of daily transportation for residents and
visitors. Consistent funding is not identified for
completing the active transportation network
developed in the plan, which would make the
envisioned multi-modal system a safe and
convenient reality.
CITY OF ROCHESTER 2025 LEGISLATIVE PRIORITIES - ADOPTED BY CITY COUNCIL ON 12/9/2024
17
Transportation (Continued)
Active Transportation Plan
OCTOBER 2022
Solution
The City supports additional and consistent
funding into the Local Bridge Replacement
Program and Transportation Advancement
Account. Support for an increase in
funding for the Local Bridge Replacement
Program is critical for necessary community
infrastructure of bridges and community
benefits from bridges are maintained and
would allow projects like the 37th Street NW
bridge preservation, which serves regional
traffic, to be accomplished.
Residents would benefit from additional
funding for multi-modal projects, as guided by
the active transportation plans and policies
adopted by city council. Additional funding
of state programs such as Safe Routes
to School and Transportation Alternatives
would allow for additional investment in the
active transportation infrastructure used by
Rochester residents and visitors regularly.
Impact
Bridges connect workers to jobs, people
to necessary services, and provide critical
access between different cities and regions.
Allowing bridges to continue in states of
disrepair will result in complications for
safety, mobility, and economic activity
in the City of Rochester and the State
of Minnesota. Safety is a top priority and
funding for preservation of bridges like the
37th Street NW Bridge can safely support
travel lanes and better serve those utilizing
and relying on the bridge.
Funding for safe, viable, and convenient
transportation options, including active
transportation options, and networks could
offer more appealing alternatives to single-
occupancy vehicle use and help meet citywide
greenhouse gas reduction and vehicle miles
traveled reduction targets, in addition to
reducing housing and transportation cost
burdens.
CITY OF ROCHESTER 2025 LEGISLATIVE PRIORITIES - ADOPTED BY CITY COUNCIL ON 12/9/2024
18
Energy, Sustainability &
Environmental Stewardship
Issue
The City of Rochester has an opportunity to
lead in greenhouse gas emission reductions,
sustainability, and environmental stewardship.
According to the Minnesota Department of
Commerce, the building sector accounts
for 40.6% of the state's total energy
consumption, with 19.5% coming from the
commercial buildings sector. In Rochester,
over 70% of citywide greenhouse gas (GHG)
emissions are attributed to building energy
use. To address this, the City is enhancing the
energy efficiency of public spaces, including
the Rochester International Airport, and is
integrating geothermal systems to heat and
cool City Hall, the Rochester Public Library, the
Mayo Civic Center, the Rochester Art Center,
and the Rochester Civic Theater. Additionally,
the City is considering a thermal energy
network to distribute renewable geothermal
energy to downtown buildings, including
private properties slated for redevelopment,
further reducing GHG emissions.
Furthermore, the City’s efforts to reduce
emissions include the Link Bus Rapid Transit
project that will include 12 electric buses,
the Wastewater Treatment Plant upgrades
saving $400,000 in energy and chemical costs
annually, and Rochester Public Utilities’ goal
of 100% net renewable electricity by 2030.
In 2022, the Rochester City Council adopted
updated GHG reduction targets in alignment
with the Intergovernmental Panel on Climate
Change (IPCC). These new goals include a
50% reduction in GHG emissions by 2030
and carbon neutrality by 2050. Commercial
buildings are required to comply with 2024
State Commercial Energy Code which adopts
the 2019 ASHRAE 90.1 standard.
Problem
Funding for renewable energy and energy
efficiency projects is both complex and
dynamic, driven by advancing technologies
and evolving opportunities in redevelopment
and facility management.
Additional funding from sources such as
the federal Infrastructure Investment &
Jobs Act (IIJA), the Minnesota Department
of Commerce, the Inflation Reduction Act
(IRA), and other state and federal programs
could serve as a catalyst, enabling the
implementation of renewable energy
and energy efficiency projects across
Rochester’s public and private spaces.
16% reduction in GHG emissions since 2007
CITY OF ROCHESTER 2025 LEGISLATIVE PRIORITIES - ADOPTED BY CITY COUNCIL ON 12/9/2024
19
Solution
• Federal funding allocated to the State
for renewable energy, energy efficiency,
or other green building projects should
be easily accessible to cities, including
municipal utilities and airports, with
priority given to projects that align with
greenhouse gas emission reduction goals or
other State and City objectives.
• State funding and incentives for converting
fleets to electric vehicles (EV) , and for
installing EV chargers for public use, and
upgrading electric infrastructure needed to
support EV chargers.
• Ability for cities to adopt the State of
Minnesota B3 Energy Standard in order to
curb the energy use and carbon emissions
of local buildings (SB 2030/B3 must be met
by all projects receiving general obligation
bond funding from the State of Minnesota,
however it can also be voluntarily applied
to any new or renovated building during the
design phase).
• State resources, funding, technical
assistance, and tools to assist with
incentivizing energy efficiency and
decarbonization for commercial buildings
(e.g. building performance standards and
implementing building energy benchmarking
program).
• Sales Tax Exemptions for on not-for-profit
utility projects (i.e. meter installations)
• Special Legislation for Right of Way private/
public construction & Public Bidding Law
• Support legislation introduced to remove
the moratorium or further study advanced
reactor designs
• Explore model legislation from other states
to allow access to nuclear generation to
non-for-profit utilities on a pro-rata share
• Protect Right of First Refusal (ROFR) rights
related to transmission investments
• Support retention of existing Federal tax
credits accessible to local government for
energy efficiency projects
Impact
Achieving the State's GHG emission reduction
goals will require significant improvements
in building efficiency and the expansion of
renewable energy sources. With the challenge
of the State meeting its statutory targets,
State support for emission reduction initiatives
is critical to accelerating progress, enabling
cities and businesses to implement the
necessary changes to meet these critical
goals.
In 2023, the legislature passed the
benchmarking requirement and provided
funding to support local entities to help
implement the program’s requirements (Minn.
State. 216C.331). A similar approach of pairing
funding with any additional requirements would
be helpful to help support commercial buildings
in reducing energy use.
Energy, Sustainability & Environmental
Stewardship (Continued)
CITY OF ROCHESTER 2025 LEGISLATIVE PRIORITIES - ADOPTED BY CITY COUNCIL ON 12/9/2024
20
Other Areas of Support
The City of Rochester supports:
The legislative platforms adopted by the
League of Minnesota Cities, to the extent
they do not conflict with the City’s Legislative
Priorities, or related Council action, including:
• Protecting local government aid (LGA)
funding and inflationary increase
• Ongoing funding for mental health injury
prevention and treatment related to
Post Traumatic Stress Disorder (PTSD) to
address ongoing duty disability expenses
• Alternatives to print newspaper
publication requirements
• Protecting local authority related to
development fees, zoning, and planning
• Efforts around housing and race equity
that align with the city’s goals, including
reducing racial disparities in home
ownership and cost burdens for renters
• Transportation infrastructure funding
tools such as impact fee and public
infrastructure utility
• Efforts around racial equity in Minnesota
• Veterans preference promotional
probationary period
• Updates to the arbitration process
• Updates to open meeting law requirements
for interviews
• Allow virtual meetings attendance for
boards and commissions
• State involvement in massage therapy
regulation, including consideration of a
centralized database
• State funding to local governments in
implementing the Data Practices Act
(in 2022, Rochester experienced a 341%
increase in data requests since 2018)
• Liquor license updates such as allowing
cities to issue full intoxicated liquor
licensure for businesses such as food halls,
health/wellness service providers, group
art classes, bridal boutiques, museums,
and art exhibits in the City of Rochester;
also consideration of social district
concept authorization at state level for
liquor licensing for downtown area
• Granting cities the statutory authorization
and flexibility related to establishing new
special service districts (Minn. Stat. 428A.01-
.101 currently sunsets authority to create
new SSDs in 2028) and opposes efforts to
restrict general authority of the tool
• Parkland dedication authority for
redevelopment (parity with current
authority for new platted sites)
CITY OF ROCHESTER 2025 LEGISLATIVE PRIORITIES - ADOPTED BY CITY COUNCIL ON 12/9/2024
21
Other Areas of Support (Continued)
Preserve and increase state funding to Rochester for accessibility infrastructure, public
safety, microtransit, housing and homelessness, and other similar funding.
State & Local Cybersecurity, High-Speed Internet, and Broadband Grant Award to be
based with consideration of city size and needs.
Legislative authority for Rochester to use design-build for public infrastructure projects
(similar to current authority for some counties in Minn. Stat. 16C.33) and to advance public
private partnership authority.
Incentives to encourage reinvestment in historic properties through tools such as the
Mills Act in California where local governments can create programs that limit property
tax increases when qualified investments are made and also State’s Historic Tax Credit
program and tools such as tax credits for potential conversion of underutiltized buildings
into housing or other uses.
Evaluation of Minnesota Rules to allow flexibility for School Districts to design schools on
smaller sites in urban areas
Updating Minnesota Statute to align with federal interpretation by Federal Transit
Administration (FTA) to allow for small commercial/retail at transit stops
Additional funding and economic flexibility for coordination with state and federal
partners around federal funding opportunities
Funding for retrofitting sprinklers in privately owned multi-family properties
Local fee options and continued, permanent state funding to support emerald ash borer
and urban forestry
Funding for the state arts board, including regional grants that can help provide additional
opportunities for Rochester Public Music, Rochester residents, and visitors.
Funding for the Greater MN Parks and Trails priorities, to the extent they do not conflict
with the City’s Legislative Priorities, or related Council action.
Partnerships and funding around workforce development and readiness through
Department of Employment and Economic Development and others.
Removing regulatory barriers and giving all local jurisdictions in Minnesota the option to use
Ranked Choice Voting
Support intellectual freedom and access to information in alignment with the Library
Board's Freedom to Read Resolution adopted on October 19, 2022. Support MN Library
Association efforts to provide more stability and funding for library services, with the
understanding it would not diminish local government aid or other city funding.
Reduce or eliminate the State surcharge on parking tickets (currently $12 per ticket).
CITY OF ROCHESTER 2025 LEGISLATIVE PRIORITIES - ADOPTED BY CITY COUNCIL ON 12/9/2024
22
2025 Federal Priorities*
The City of Rochester works with Sustainable Strategies DC to continuously evaluate federal
opportunities including those from the Infrastructure Investment and Jobs Act (IIJA) and Inflation
Reduction Act (IRA) that are in alignment with city priorities. Some examples of 2025 federal
priorities could include:
• Environmental Protection Agency (EPA) Brownfields Program for assessment and
redevelopment of vacant parcels
• USDOT programs such as Bus & Bus
Facilities Program, RAISE, Electric Vehicle
charging, and other sources that would
continue to advance transportation
priorities around mode shift and reduction
of greenhouse gas emissions and
community infrastructure investments.
• National Parks Service (NPS) programs
for parks, historic preservation, trails,
park development, and/or riverfront
development
• National Endowment for the Arts (NEA)
funding for public music, alley activation,
and community programming and needs related to department mission and council priorities
• Department of Energy and other energy/sustainability related programs that could include
affordable housing components, airport energy efficiency, public private partnership
opportunities, advanced metering infrastructure, smart thermostats, stormwater
management, and other similar aims.
• Federal Emergency Management Agency (FEMA) programs such as Building Resilient
Infrastructure and Communities (BRIC) and other opportunities for individual and public
assistance after emergency impacts.
• Congressionally directed spending requests that align with council adopted capital
improvement plan, council priorities and council action.
As a member-city, Rochester also joins with priorities from the National League of Cities to the
extent they do not conflict with the City’s Legislative Priorities, or related Council action.
*List subject to updates as opportunities become available that align with city priorities.
City of Rochester
201 4th Street SE
Rochester, MN 55904
Questions?
Heather Corcoran, Legislative Affairs & Policy Director
hcorcoran@rochestermn.gov 507-269-9893
Alison Zelms, City Administrator
azelms@rochestermn.gov 507-328-2004
Aaron Parrish, Deputy City Administrator
aparrish@rochestermn.gov 507-328-2006
Cindy Steinhauser, Deputy City Administrator
csteinhauser@rochestermn.gov 507-328-2015
Ryan Yetzer, Assistant City Administrator
ryetzer@rochestermn.gov 507-328-2954
Mayor Kim Norton Brooke Carlson
City Council President
Patrick Keane
City Council Member
1st Ward
Mark Bransford
City Council Member
2nd Ward
Norman W. Wahl
City Council Member
3rd Ward
Kelly Rae Kirkpatrick
City Council Member
4th Ward
Shaun C. Palmer
City Council Member
5th Ward
Molly Dennis
City Council Member
6th Ward
2024 Mayor and City Council Members
Will be updated to reflect 2025 Council upon swearing in