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HomeMy WebLinkAboutDMCC Resolution No. 157-2024 (Approving Amendment to the 2025 Five Year Capital Improvement Plan and Providing Final Approval of Expenditure of Funds for Public Infrastructure Improvements)DESTINATION MEDICAL CENTER CORPORATION RESOLUTION NO. 157-2024 A RESOLUTION APPROVING AMENDMENT TO THE 2025 FIVE YEAR CAPITAL IMPROVEMENT PLAN AND PROVIDING FINAL APPROVAL OF EXPENDITURE OF FUNDS FOR PUBLIC INFRASTRUCTURE IMPROVEMENTS The following Resolution was offered by Brooke Carlson, seconded by Kim Norton. BACKGROUND RECITALS A. In the 2025 Five Year Capital Improvement Plan (the “2025 CIP”) approved by the Destination Medical Center Corporation (“DMCC”) on September 26, 2024 per Resolution No. 154-2024, the DMCC approved supporting infrastructure alignment in association with Mayo Clinic’s Bold. Forward. Unbound in Rochester (“BFUiR”) initiative in the amount of $1,000,000. Specifically, DMCC’s approval stated that “these funds are not intended to support specific physical improvement, and any future capital requests in the affected area will be informed by these coordinating efforts.” B. Staff of the City of Rochester (“City”) and the Destination Medical Center Economic Development Agency (“EDA”) have commenced an analysis of infrastructure investment requirements and opportunities associated with BFUiR. This analysis has identified an additional opportunity in connection with the Infrastructure Alignment: Bold. Forward. Unbound in Rochester, not included within the 2025 CIP, as further detailed in the attached Exhibit A (the “Capital Project”). C. Staff of the City and the EDA now request that the DMCC approve an increase in the 2025 CIP in the amount of $1,600,000 to fund the Capital Project. RESOLUTION NOW, THEREFORE, BE IT RESOLVED, by the DMCC Board of Directors, that the DMCC approves an amendment to the 2025 CIP in the increased amount of $1,600,000 to fund the Capital Project and that the DMCC hereby approves the Capital Project as a public infrastructure project within the meaning of Minnesota Statutes Section 469.40, Subdivision 11, and consistent with the Development Plan, adopted on April 23, 2015, as amended; provided that: 1. The scope of approval for the Capital Project is set forth in the attached Exhibit A; 2. Any material deviation from the scope of approval for the Capital Project will be subject to subsequent approval by the DMCC, which approval shall be based upon final determination and review of scope, costs, and availability of funds; and 3. The EDA and City are directed to provide the DMCC Board of Directors with regular updates with respect to the scope and costs of the Capital Project. BE IT FURTHER RESOLVED, that the Chair and Treasurer are hereby authorized and directed to transmit this Resolution to the City and to take such actions as are necessary or convenient to effectuate this amendment to the 2025 CIP. 30178429v3 The question was on the adoption of the Resolution and there were YEAS and---NAYS,as follows:--- BOARD OF DIRECTORS Destination Medical Center Corporation YEA Douglas M.Baker,Jr. Brooke Carlson Kim Norton R.T.Rybak Mark Thein Pamela Wheelock Paul D.Williams OPTED on December 5,2024. amela Wheelock,Chair Destination Medical Center Corporation NAY OTHER 7 0 X X X X X X X 2 1 EXHIBIT A 2 Destination Medical Center To: DMCC Board of Directors From: DMC EDA Date: November 26, 2024 RE: Recommendation to amend the 2025 Five Year Capital Improvement Plan as to “Infrastructure Alignment: Bold. Forward. Unbound. in Rochester” In September 2024, the DMCC board of directors made an initial investment to align community infrastructure with the growth associated with Mayo Clinic’s Bold. Forward. Unbound. in Rochester (BFUiR) initiative. As staff continue to evaluate infrastructure needs, develop a proposed construction and responsibility matrix, and make recommendations to optimize project schedules, there is a time sensitive infrastructure investment opportunity adjacent to the first phase of BFUiR projects. Mayo Clinic growth requires Utility Plant Underground Infrastructure Improvements (UPUI) in approximately 10 blocks in an area bordered by Center St. W, 6th Ave. NW, 3rd St. NW and 2nd Ave NW. The City and Mayo Clinic are coordinating on final design and approvals for one phase of this work around the proposed North Parking Ramp shown in the image below. Mayo Clinic will be installing infrastructure improvements on three sides of the ramp that are colored green. This is an area where staff believe it is optimal to make additional infrastructure improvements to support future growth and demand. The DMC EDA and City staff recommend approving $1.6 million in DMC General State Infrastructure Aid (GSIA) funding to modernize and upsize the sanitary and storm sewer lines and install a cycle track element which will connect with future legs of the cycle track as further street upgrades occur. This work would be completed in 2025/26. 3