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Home My WebLink AboutDMCC Resolution No. 161-2025 (Approving Expenditure of DMC Strategic Redevelopment Funds in Support of 2nd Street Public Realm Enhancement)DESTINATION MEDICAL CENTER CORPORATION RESOLUTION NO. 161-2025 A RESOLUTION APPROVING EXPENDITURE OF DMC STRATEGIC REDEVELOPMENT FUNDS IN SUPPORT OF 2ND STREET PUBLIC REALM ENHANCEMENT The following Resolution was offered by Kim Norton, seconded by Randy Schubring. BACKGROUND RECITALS A. A critical component of the Development Plan adopted by the Destination Medical Center Corporation (“DMCC”) on April 23, 2015, as amended (the “Development Plan”) concerned mobility, transformative transportation strategies, and related development. The Development Plan highlighted the goal of a mode shift in transportation in which a significant portion of community trips downtown shift away from single occupant vehicle trips and towards other modes, including the LINK Bus Rapid Transit running down 2nd Street. B. The 2nd Street corridor is a critical East West connection within the Destination Medical Center (“DMC”) District and is the location of the LINK Bus Rapid Transit. The creation of public realm spaces within the neighborhoods along 2nd Street, designed to achieve neighborhood connections to this key transportation corridor, align with the DMC goal set forth in the Development Plan. More specifically, creation of a mid-block pedestrian passageway to divide-up “superblocks” that exist along the 2nd Street corridor, brining human-scaled dimension back to the street, has been identified as a significant component of neighborhood connectivity (the “Public Realm Improvements”). C. The City of Rochester (the “City”) has identified an opportunity to acquire land and, working in partnership with staff of the DMC Economic Development Agency (the “EDA”), is requesting DMC financial support for (i) acquisition of the land and (ii) the cost of the Public Realm Improvements all as further detailed on Exhibit A attached hereto (the “Proposed Project”). D. The DMCC Board approved the 2025 Five Year Capital Improvement Plan (the “2025 CIP”) on September 26, 2024 and approved the projects set forth in the first year of the 2025 CIP as public infrastructure projects within the meaning of Minnesota Statutes Section 469.40, subdivision 11, and consistent with the Development Plan. The 2025 CIP was later approved by the City. E. The 2025 CIP provided funding for the Strategic Redevelopment Fund, which was first approved in the 2021 Five Year Capital Improvement Plan. The DMC EDA has informed the DMCC that a portion of the funds from the Strategic Redevelopment Fund are available for reallocation. As set forth in Exhibit A, the DMC EDA staff requests that the DMCC allocate funds in an amount not to exceed $2,372,500 from the Strategic Redevelopment Fund to the Proposed Project, subject to the conditions set forth in this Resolution. 2 F. The DMC EDA has recommended approval of the Proposed Projects based on the summary and recommendation attached as Exhibit A and the 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 Project based on the following findings: 1. The Proposed Project is a public infrastructure project within the meaning of Minnesota Statutes, Section 469.40, subdivision 11. 2. The Proposed Project lies within the Development District. 3. The Proposed Project is consistent with the Development Plan. BE IT FURTHER RESOLVED, that the DMCC Board of Directors approves allocating funds reserved for the Strategic Redevelopment Fund to the Proposed Project in an amount not- to-exceed $2,372,500 subject to contingencies set forth in the attached Exhibit A, as well as the following conditions: 1. The Proposed Project must meet all City requirements. 2. The scope of approval for the Proposed Project is set forth in the attached Exhibit A. 3. Any modifications to the scope of the Proposed Project will be subject to subsequent approval by the DMCC. 4. The DMCC Board of Directors shall receive periodic updates as to the status of the satisfaction of the contingencies set forth on Exhibit A and the conditions set forth in this Resolution, the Proposed Project expenditures, and the ongoing status of development of the Proposed Project. 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. 30661337v3 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. James R.Campbell Kim Norton R.T.Rybak Randy Schubring Mark Thein Pamela Wheelock Paul D.Williams RESOLUTION ADOPTED on February 6,2025. amela Wheelock,Chair Destination Medical Center Corporation NAY OTHER 8 0 X X X X X X X X EXHIBIT A 2nd Street Public Realm Enhancement To: DMC EDA Board of Directors From: DMC EDA Staff Date: January 22, 2025 Request of the board of directors: Recommend to the DMCC authorization of the use of DMC GSIA funds to support City request for land and public realm improvements. The request is for $2,372,500, contingent upon: - Mutually agreed upon final design for the public space and the pending private development - Mutually agreed upon Maintenance and Operation agreement for term of at least 20 years - Coincides with the development of the housing adjacent to the public realm - Drawing upon the pre-approved CIP Strategic Redevelopment funds - Site development commences before year-end 2025 Background: The Second Street corridor is a critical E-W connection in the DMC District and will be home to the first major transportation investment with LINK Bus Rapid Transit running down Second Street with high-frequency service. It is anticipated that the transportation investment will have a transformative effect along the corridor and the neighborhoods that fall within the walkshed of the BRT line. Since at least 2009, there have been City- and community-led plans that call out opportunities to build public realm spaces to better connect neighborhoods to Second Street (see below from 2009 Second Street Corridor study). One of the more significant components of these plans is to create mid-block pedestrian passageways to break up the long “superblocks” that exist along the corridor and bring a more human-scaled dimension back to the streetgrid. The creation of these mid-block passageways is not possible without the participation of willing landowners. The City of Rochester has identified a developer and land owner that is interested in participating in the creation of this type of public space in conjunction with a plan to develop market rate housing on adjacent parcels also under the same ownership. The City and DMC staff have been working in partnership with the owner/developer to shape a potential project and the City of Rochester has requested DMC financial support to acquire the land needed to support the land acquisition and park improvement costs. No public funds are being requested for the market rate housing development component of the project. Fulfilling the DMC Vision, Mission, and/or Goals: The DMC goal of mode shift for transportation requires a significant portion of commuting trips downtown to shift away from Single Occupant Vehicle (SOV) trips and towards other modes including Bus Rapid Transit. The creation of neighborhood connections to this corridor through breaking up a long superblock aligns well with DMC vision and goals. Approvals, milestones, and decision points: - January 27, 2025: DMC EDA recommendation to DMCC - February 6, 2025: DMCC considers the use of DMC GSIA from Strategic Development funds in CIP