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Home My WebLink AboutDMCC Resolution No. EC 13-2025 (Authorizing April 1, 2025 Certification to DEED Pursuant to Statute)DESTINATION MEDICAL CENTER CORPORATION EXECUTIVE COMMITTEE RESOLUTION NO. EC 13-2025 AUTHORIZING APRIL 1, 2025 CERTIFICATION TO DEED PURSUANT TO STATUTE The following Resolution was offered by Kim Norton, seconded by Mark Thein. BACKGROUND RECITALS A. Minnesota Statutes, Section 469.47, provides that by April 1 of each year, the medical business entity (Mayo Clinic) must certify to the Commissioner of the Department of Employment and Economic Development (“DEED”) the amount of expenditures made by Mayo Clinic in the preceding year. For expenditures made by an individual or entity other than Mayo Clinic, the Destination Medical Center Corporation (“DMCC”) must compile the information on the expenditures and may certify the amount to DEED. The certification to DEED must be in the form prescribed by DEED and include any documentation and supporting information regarding the expenditures that DEED requires. B. Staff from the City of Rochester and the Destination Medical Center Economic Development Agency (“EDA”) have prepared the draft certification, due on April 1, 2025, attached hereto as Exhibit A. RESOLUTION NOW, THEREFORE, BE IT RESOLVED, by the Executive Committee of the DMCC Board of Directors that the Chair or Vice Chair of the DMCC is authorized to execute and submit the report to DEED as required by Minnesota Statutes, Section 469.47, in a form similar to the form attached hereto as Exhibit A, as may be modified through further discussions with Mayo Clinic or the City of Rochester, and to take such other actions as are necessary and appropriate to effectuate the timely submission of the report to DEED. 30939528v2 40 X X X X EXHIBIT A 1 2 3 4 5 6 7 8 9 For all other Expenditures: 1Expenditures need to be after June 30, 2013 2Other Private Entities' certification of expenses may be certified retroactively in 2014 after the Destination Medical Center District and Development Plan are adopted. Form Revised 02/10/2025 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. DateDestination Medical Center Corporation State Transit Aid Qualified for (Box 7 multiplied by .0075 and then multiplied by .6) DateMayo Clinic Chief Financial Officer 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 469.47 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: $7,167,913.37 All Expenditures claimed since June 30, 2013 State Aid Qualified for This Year (local government match also required) General State Infrastructure Aid Qualified for (Box 7 multiplied by .0275)$43,803,915.03 $1,607,368,325.07 $185,501,312.41 $1,792,869,637.48 $1,592,869,637.48 Previous Years Expenditures (cumulative) TOTAL Expenditures This Year3 (from Box 3) All Claimed Expenditures as of 12/31/24 (Box 4 plus Box 5) Qualified Expenditures claimed in 2024 (Box 6 minus $200,000,000) Certification of Expenditure Destination Medical Center For Calendar Year 2024 Due to Commissioner of Employment and Economic Development (DEED) by April 1, 2025 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 2024, and the certifications required to support the documentation under the City of Rochester Commissioner of Employment and Economic Development State Infrastructure Aid Agreement. $176,220,326.41 $9,280,986.00 $185,501,312.41 Total Expenditures Reported This Year by Medical Business Entity1 Total Expenditures Reported This Year for other Private Entities1,2 TOTAL Expenditures This Year Expenditures Reported this Year DESTINATION MEDICAL CENTER CORPORATION 201 4th St. SE. Rochester, Minnesota 55904 March 27, 2025 VIA ELECTRONIC AND U.S. MAIL Mr. Matt Varilek Commissioner Minnesota Department of Employment and Economic Development Great Northern Building 180 E 5th St Suite 1200 St. Paul, MN 55101 Dear Commissioner Varilek: On behalf of the Destination Medical Center Corporation (“DMCC”) and Mayo Clinic, and pursuant to Minnesota Statutes Section 469.47, subdivision 2, I am pleased to forward the following 2024 certification of expenditures. These expenditures 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, 2024 (“Attachment 1”). The City of Rochester, Minnesota assisted with the compilation of this report. The amount of 2024 investments set forth in this report is $9,280,985. 2. Mayo Clinic Certification: I enclose correspondence and accompanying materials from Natalie Caine, Chief Administrative Officer, Mayo Clinic in Rochester, dated March 18, 2025 (“Attachment 2”). Mayo Clinic is certifying expenditures for the period of January 1, 2024 through December 31, 2024 in the amount of $$176,220,326. 3. Summary of Investments: The summary page, entitled “Certification of Expenditures, Destination Medical Center” is enclosed, setting forth total cumulative expenditures through December 31, 2024, in the amount of $$1,792,869,637. I would like to highlight that Mayo Clinic’s 2024 investment represents it largest-ever annual investment in destination medical care, education, and research. It is also noteworthy that these private investments, from Mayo Clinic and others, occurred in a challenging environment as to interest rates, construction labor constraints, and inflation, demonstrating the success of this public-private partnership even in the face of these economic headwinds. Commissioner Matt Varilek March 27, 2025 Page 2 Looking ahead, the DMCC is confident that the Destination Medical Center (“DMC”) economic development and partnership model will continue to produce the benefits promised to the State of Minnesota and Rochester residents, employees, patients, and visitors when the DMC was launched nearly a decade ago: new jobs, increased investment and development, and a high- quality community experience. Currently, the City of Rochester and the DMC Economic Development Agency are in active discussions with 14 different developers interested in investing in downtown Rochester. The projects under discussion include nearly 900 affordable housing units, 1,200 market-rate housing units, and 200 hotel rooms. Also, in October 2024, the Minnesota Department of Employment and Economic Development (“DEED”) reported that the Rochester Metropolitan Statistical Area leads the state in job growth, adding about 7,000 jobs for a year- over-year growth rate of 6.3%. Together, these positive indicators signal that Rochester and the surrounding area will continue to lead Minnesota in economic development. Thank you for your consideration, and please do not hesitate to contact either the 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 DMC initiative. Sincerely, Pamela Wheelock Chair Destination Medical Center Corporation Enclosures cc: Destination Medical Center Corporation Board of Directors Natalie Caine, Mayo Clinic Jeremy LaCroix, DEED Patrick Seeb, DMC Economic Development Agency 30961658v4 March 18, 2025 Matt Varilek Commissioner MN Department of Employment and Economic Development 1st National Bank Building 332 Minnesota Street, Suite E-200 Saint Paul, MN 55101-1351 Dear Commissioner Varilek: Enclosed is Mayo Clinic's certification of qualified expenditures of the Medical Business Entity for the Destination Medical Center (DMC) initiative from Jan. 1, 2024, to Dec. 31, 2024. The amount of qualified investment is approximately $176.2 million. This represents an over 30% increase from 2023. In November 2023, Mayo Clinic announced Bold. Forward. Unbound. in Rochester to advance our overall Bold. Forward. strategy to Cure, Connect and Transform healthcare for the benefit of patients everywhere. Bold. Forward. Unbound. in Rochester is a $5 billion investment over six years, the largest in Mayo Clinic's history. In 2024, work began in earnest with the start of major utility and infrastructure work, including expansion of the Prospect Utility Plant, a facility critical to meeting future energy needs with sustainability at its core. In addition to progress on Bold. Forward. Unbound. in Rochester, we also celebrated the "topping-off" of the Andersen Building to meet the increasing demand of patients seeking advanced cancer treatment. Mayo Clinic continues to make significant investments in our staff. In 2024, we welcomed 13,000 new staff to Mayo Clinic and provided salaries and benefits totaling $10.5 billion. Together, our Mayo Clinic teams cared for patients from every state and 135 countries. The scale of investment and opportunity in Rochester is unlike anywhere else in the state. We are confident that our investments in the transformation of healthcare and our staff demonstrate Mayo Clinic's deep commitment to our patients, staff and communities. We look forward to maintaining our ongoing DMC partnership with the city of Rochester, Olmsted County and the state of Minnesota. Sincerely, Natalie Caine Chief Administrative Officer – Rochester Mayo Clinic Permit Type Permit Number Permit Date Parcel ID Address Valuation Description Owner Permit Status Date Alteration R18-0097CB 7/17/2018 77285 808 S Broadway Ave $302,000 Build-out for casual Mexican restaurant from white box space Taco JED/Steve Dunn Finaled 2/21/2024 Alteration R22-0305CB 8/12/2022 83045 10 E Center Street $248,484 Expansion of existing private dining area for Benedict's second floor of the Hilton hotel Legacy Fund I LLC Finaled 4/8/2024 Alteration R22-0447CB 12/5/2022 83795 202 SW 4 Street $800,000 Tenant fit-up of remaining shell space on fourth floor for Rion Health Phase 2 Rion Health C of O Issued 3/18/2024 Demolition R22-0017D 8/26/2022 71302 201 SE 9 ST $403,000 Full Building Demo (K-Mart)CAMEGARAN LLC Closed 4/12/2024 Demolition R22-0018D 8/26/2022 25713 201 SE 9 ST $24,000 Full Building Demo (K-Mart - Building 4)CAMEGARAN LLC Closed 4/12/2024 Demolition R22-0019D 8/26/2022 18601 201 SE 9 ST $15,000 Full Building Demo (K-Mart - Building 3)CAMEGARAN LLC Closed 4/12/2024 Demolition R22-0020D 8/26/2022 25252 201 SE 9 ST $49,000 Full Building Demo (K-Mart - Building 2)CAMEGARAN LLC Closed 4/12/2024 Demolition R22-0021D 8/26/2022 18601 201 SE 9 ST $35,000 Full Building Demo (K-Mart - Building 1)CAMEGARAN LLC Closed 4/12/2024 Demolition R22-0022D 8/26/2022 25702 201 SE 9 ST $80,000 Full Building Demo (K-Mart - Building 5)CAMEGARAN LLC Closed 4/12/2024 Demolition R22-0023D 9/9/2022 9432 217 SW 5 AVE $50,000 Demolition of 2 structures, sewer and water abandonments TRINITY EVAN LUTHERAN CHURCH U Closed 4/12/2024 Alteration R23-0158CB 5/10/2023 17867 215 SW 1st Avenue $340,400 Tenant fit up of an existing restaurant to new restaurant, 2 levels. Hero Be-Bop Wellington Square Properties LLC C of C Issued 2/28/204 Alteration R23-0202CB 6/8/2023 11576 1111 SW 2 ST $200,000 Renovation of existing space to accommodate new Anderson Wheelchair retail space TD BULLDOG INVESTMENTS LLC Finaled 6/17/2024 Alteration R23-0262CB 7/18/2023 81707 20 SW 2 AVE $1,949,272 Fit-up of the existing restaurant space in the Kahler Hotel to a Ruth's Chris Steakhouse KAH 20 2ND AVENUE LLC C of C Issued 6/13/2024 Alteration R23-0301CB 8/15/2023 79892 300 SE 3 AVE, UNIT 201 $100,000 Office renovation for Ironwood Square IRONWOOD SQUARE ASSOCIATION C of O Issued 1/18/2024 Alteration R23-0105MFB 8/30/2023 83687 511 SW 3 AVE $1,800,000 Buildout on the first floor of the Residence @ Discovery Square building to include twenty new apartment units Black Swan Real Estate/Nick Stageberg C of O Issued 7/1/2024 Alteration R23-0366CB 10/9/2023 11576 1111 SW 2nd Street $47,866 Re-roof Anderson Wheelchair Anderson Wheelchair Finaled 2/5/2024 Alteration R23-0395CB 10/31/2023 83045 10 East Center Street $110,000 Expansion of current fitness room into adjacent empty space Legacy Fund I LLC Finaled 3/21/2024 Alteration R23-0152CB 5/4/2023 85691 415 SW 2 Avenue $420,000 Relocation of 2DS Café into Two Discovery Square C of O Issued 2/22/2024 Alteration R24-0362CB 10/22/2024 9274 512 SW 3rd Street $145,500 Removal of Shingles, install new roof system First Presbyterian Church of Rochester Finaled 11/13/2024 Alteration R24-0070CB 3/8/2024 14306 321 S Boradway Ave $35,731.50 Remove existing fully adhered EPDM roof with a paver ballasted EPDM roof JLB Properties LLC Finaled 6/10/2024 Alteration R24-0071CB 3/8/2024 14307 323 S Broadway Ave $35,731.50 Remove existing fully adhered EPDM roof with a paver ballasted EPDM roof JLB Properties LLC Finaled 11/22/2024 Alteration R24-0042CB 2/12/2024 82430 206 S Broadway Ave $35,000 Turning cubicle areas in to 2 sperate offices Bloom International Realty LLC Finaled 5/8/2024 Demolition R24-0030D 6/3/2024 4984 507 NW 2 ST $15,000 Demolition of structure. Foundation to be left and filled with dirt.5th Avenue Rental Partners LLC Closed 9/23/2024 Demolition R24-0029D 6/3/2024 4985 503 NW 2 ST $15,000 Demolition of structure. Foundation to be left and filled with dirt.5th Avenue Rental Partners LLC Closed 9/23/2024 Demolition R24-0031D 6/3/2024 4986 509 NW 2 ST $15,000 Demolition of structure. Foundation to be left and filled with dirt.5th Avenue Rental Partners LLC Closed 9/23/2024 Demolition R24-0024D 6/3/2024 4987 209 NW 5 AVE $15,000 Demolition of structure. Foundation to be left and filled with dirt.5th Avenue Rental Partners LLC Closed 9/23/2024 Demolition R24-0027D 6/3/2024 4988 215 NW 5 AVE $15,000 Demolition of structure. Foundation to be left in place and filled with dirt.5th Avenue Rental Partners LLC Closed 9/23/2024 Demolition R24-0028D 6/3/2024 4989 219 NW 5 AVE $15,000 Demolition of structure. Foundation to be left in place and filled with dirt.5th Avenue Rental Partners LLC Closed 9/23/2024 Demolition R24-0033D 6/18/2024 4990 512 NW 3 ST $15,000 Demolition of home structure and garage onsite. Foundation to be left and filled with dirt.Aaron Horsman Closed 9/23/2024 Demolition R24-0032D 6/18/2024 4991 221 NW 5 AVE $15,000 Demolition of home structure and garage onsite. Foundation to be left and filled with dirt.Darren Peterson Closed 9/23/2024 Demolition R24-0020D 6/3/2024 4993 516 NW 3 ST $15,000 Demolition of home structure and garage. Foundation to be left and filled with dirt.6th Avenue Rental Partners LLC Closed 9/23/2024 Demolition R24-0022D 6/3/2024 4994 522 NW 3 Street $15,000 Demolition of home structure and garage. Foundation to be left and filled with dirt.6th Avenue Rental Partners LLC Closed 9/24/2024 Demolition R24-0025D 6/3/2024 4995 210 NW 6 Avenue $15,000 Demo of home and garage. Foundation to be left and filled with dirt.6th Avenue Rental Partners LLC Closed 9/24/2024 Demolition R24-0019D 9/23/2024 4998 513 NW 2 Street $15,000 Demolition of structure. Foundation to be left and filled with dirt.6th Avenue Rental Partners LLC Closed 9/23/2024 Alteration R24-0026CB 1/29/2024 17882 150 S Broadway $725,000 Renovating the old Pescara Restaurant BGD5 Hotel LLC C of O Issued 9/20/2024 Alteration R24-0198CB 6/18/2024 17894 155 SW 1 Avenue $500,000 Renovation of eisting bank to a new bank on the second floor BGD5 Office LLC Finaled 11/27/2024 Alteration R24-0142CB 5/6/2024 56916 1125 SW 2 Street $200,000 Window replacement and structural repairs Carpenter and Torgerson SSMR LLC Finaled 9/10/2024 Alteration R24-0233CB 7/19/2024 81707 20 SW 2 Avenue $350,000 Interior fit up of existing building KAH 20 2nd Avenue LLC C of C Issued 12/10/2024 Alteration R24-0213CB 6/27/2024 88155 401 N Broadway $100,000 Fit-up of leased space on the 1st level Bryk Apartments Rochester LLC C of O Issued 11/25/2024 $9,280,985