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Home My WebLink AboutDMCC Resolution No. 155-2024 (Approving Downtown Historic District Infrastructure Project Requests)DESTINATION MEDICAL CENTER CORPORATION RESOLUTION NO. 155-2024 A RESOLUTION APPROVING DOWNTOWN HISTORIC DISTRICT INFRASTRUCTURE PROJECT REQUESTS The following Resolution was offered by Brooke Carlson, seconded by Kim Norton. BACKGROUND RECITALS A. The Destination Medical Center Corporation (“DMCC”) established five long- term goals for the Destination Medical Center (“DMC”) initiative, including creating a comprehensive and strategic plan, new jobs, tax revenues, and achieving the highest quality patient, companion, visitor, employee, and resident experience. B. The DMCC has long recognized the important role of historic preservation to achieve these goals. The Development Plan adopted by the DMCC on April 23, 2015, as amended (the “Development Plan”) recommended strategies and programs to encourage preservation efforts: “The preservation of historic landmarks and districts is an important part of a City’s historic fabric. . . . As the DMC implementation process moves forward, we recommend the EDA work with federal agencies, state agencies and local organizations to evolve strategies and programs to incent historic preservation [in the] DMC District.” C. On January 22, 2024, the City of Rochester (the “City”) established a downtown commercial historic district of thirty-two properties (the “Commercial Historic District”) located within the development district boundaries as adopted in the Development Plan (the “Development District”). D. On May 23, 2024 the DMCC established a downtown property preservation program (the “Program”). The Program provides an application and general state infrastructure aid funding process for public infrastructure projects within the Commercial Historic District. E. The Program provides an opportunity of funding up to 50% of a capital improvement project (not to exceed $500,000 per property) within the Commercial Historic District if such project (i) meets the definition of a “public infrastructure project” (as defined in Minnesota Statutes, Section 469.40, subdivision 11); (ii) lies within the Development District and is defined as a “contributing property” within the Commercial Historic District; (iii) is consistent with the Development Plan; (iv) achieves a capital improvement that is intended to be a permanent asset of the Commercial Historic District; and (v) satisfies certain statutory requirements, including prevailing wages and use of American-made structural steel, as well as local requirements, such as sustainable building standard, women- and minority-owned construction contacting, and workforce development (collectively, the “Program Requirements”). F. The following projects have been submitted for funding consideration under the Program: (i) the owner of the property located at 330 Broadway Ave S has requested funding for a project involving adaptive reuse of a building through the development of 2nd story housing; (ii) the owner of the property located at 400 Broadway Ave S has requested funding for a project that 2 will include roof replacement, brick tuck-pointing and interior bathroom renovation; and (iii) the owner of the property located at 212 1st Ave SW has requested funding for a project that will include roof and trusses replacement and mechanical upgrades (collectively, the “Proposed Projects”). G. DMC EDA has recommended approval of the Proposed Projects based on the summary and recommendation attached as Exhibit A and DMCC must now act on the request. RESOLUTION NOW, THEREFORE, BE IT RESOLVED, by the DMCC Board of Directors, that the DMCC approves the Proposed Projects costs based on the following findings: 1. The Proposed Projects are a public infrastructure project within the meaning of Minnesota Statutes, Section 469.40, subdivision 11. 2. The Proposed Projects lie within the Development District and are defined as contributing properties within the Commercial Historic District. 3. The Proposed Projects are consistent with the Development Plan. 4. The Proposed Projects achieve a capital improvement that is intended to be a permanent asset of the Commercial Historic District. 5. The Proposed Projects will satisfy the necessary statutory and local requirements set forth in the Program. BE IT FURTHER RESOLVED, that the approval of the Proposed Projects are expressly subject to the following conditions: 1. The Proposed Projects must meet all City requirements. 2. The final payment will be based on the actual costs and will not exceed 50% of the cost of each of the Proposed Projects. 3. The funds provided to the Proposed Projects must satisfy the terms and conditions of this Resolution, including, but not limited to, the parameters of the Program and the Program Requirements as set forth in the Recitals, which are incorporated herein. 4. The recipient of the funds must provide certification that the Program requirements have been satisfied, including but not limited to the statutory and local requirements of the Program. 5. The DMCC Board shall receive an annual report concerning Program updates, expenditures, metrics to evaluate the success of the Program, and recommendations concerning future funding in the capital improvement plan. 1 3 BE IT FURTHER RESOLVED, that DMCC Resolution No. 51-2017 is incorporated fully herein by reference. BE IT FURTHER RESOLVED, that the Chair or the Treasurer of the DMCC is authorized to transmit this Resolution to the City of Rochester, and to take such actions as are necessary and appropriate to effectuate the findings and approvals of this Resolution. 30177253v3 2 The question was on the adoption of the Resolution and there were YEAS and NAYS,as follows: BOARD OF DIRECTORS Destination Medical Center Corporation Douglas M.Baker,Jr. Brooke Carlson Kim Norton R.T.Rybak Mark Thein Pamela Wheelock RESOLUTION ADOPTED on December 5,2024. \TTFSTzLL"I" ela Wheelock,Chair Destination Medical Center Corporation NAY OTHER 6 0 X X X X X X 4 3 EXHIBIT A 4 Destination Medical Center To: DMCC Board of Directors From: DMC EDA Date: November 26, 2024 RE: Downtown Property Preservation Program Recommendation The DMC EDA and City of Rochester staff recommends that the following project(s) be considered by the DMC Corporation and City of Rochester for funding under the DMC Downtown Property Preservation Program. This recommendation follows DMC EDA and City staff review and evaluation of the project funding request(s). Specifically, staff recommend that the DMCC and City: •Designate the proposed project(s) as a DMC “public infrastructure project” •Approve the recommended project(s) as consistent with the DMC Development Plan •Allocate DMC funding to the project(s) and in the amount(s) described in the table below Address Recommended DMC Funding Total Project Cost Category of Investment Project Description 330 Broadway Ave S $125,288.04 $250,576.09 •Adaptive Reuse Development of second- story housing unit 400 Broadway Ave S $202,274.33 $404,549.67 •Building Safety & Preservation Roof replacement, brick tuck-pointing, interior bathroom renovation 212 1st Ave SW $380,985.00 $761,970.00 •Building Safety & Preservation •Building System Upgrades Roof & trusses replacement, mechanical upgrades If approved for funding, the project(s) will be required to meet DMC development requirements, including: •Prevailing wage •American made steel •Targeted business and workforce utilization •Sustainable building standards Additionally, prior to the distribution of DMC funds the project(s) must: •Meet all City of Rochester planning, zoning and entitlement requirements •Provide project and financing documentation •Execute any necessary agreements with the City of Rochester (Funding made available on a reimbursement basis upon project completion) 5