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HomeMy WebLinkAboutDMCC Resolution No. 178-2025 (Approving the 2026-2027 DMCC Funding Request, the Extension of Working Capital Loan, and Authorizing Transmittal to the City of Rochester)DESTINATION MEDICAL CENTER CORPORATION RESOLUTION NO. 178-2025 A RESOLUTION APPROVING THE 2026-2027 DMCC FUNDING REQUEST, THE EXTENSION OF WORKING CAPITAL LOAN, AND AUTHORIZING TRANSMITTAL TO THE CITY OF ROCHESTER The following Resolution was offered by Paul D. Williams, seconded by Randy Schubring. BACKGROUND RECITALS A. The Destination Medical Center Corporation (“DMCC”) must adopt an annual Funding Request and Five Year Capital Plan. The DMCC Funding Request has historically included the DMCC annual budget, the Destination Medical Center Economic Development Agency (“EDA”) annual budget and work plan, and supported costs incurred by the City of Rochester. B. On February 26, 2015, the DMCC adopted Resolution No. 26-2015, approving the form of and authorizing the Chair and Treasurer to execute, amend, and take other actions to implement the working capital loan documents to provide for advanced funding of DMCC and EDA operations (collectively, the “Loan Documents”). C. The DMCC is interested in transitioning to a biennial budgeting process and, to that end, will review and, as necessary, contemplate future amendments to its governing documents and the Loan Documents, to facilitate and formalize this transition (“Modification Approval Process”). D. The DMCC has completed the required annual reconciliation of the advances to the DMCC and the DMCC eligible expenses for 2025. E. While current DMCC governing documents, and the Loan Documents, contemplate an annual extension of the Working Capital Loan, the DMCC has prepared a DMCC Request for Extension of the Working Capital Loan for 2026 and also for 2027, both in the amount of $1,000.00 per year, as such amount may be adjusted by the City pursuant to Section 2.8(c) of the Working Capital Loan Agreement (DMCC-City) effective April 1, 2014, as amended. F. The EDA has submitted an EDA Request for Extension of the Working Capital Loan for 2026 and also for 2027, requesting that the Loan Documents be extended for 2026 and 2027 in the amount of $150,000.00 per year, as such amount may be adjusted by the City pursuant to Section 2.8(c) of the Working Capital Loan Agreement (DMCC-EDA), effective April 1, 2014, as amended, and has provided the required annual reconciliation of advances and eligible expenses paid from such advances. G. The DMCC and EDA Requests for Extension of the Working Capital Loan for 2026 and 2027 are attached as Exhibit A. 2 RESOLUTION NOW, THEREFORE, BE IT RESOLVED, by the DMCC Board of Directors that the 2026-2027 DMCC Funding Request and the Five Year Capital Plan, each on file with the DMCC, are approved, with the 2027 Funding Request conditioned upon adoption and implementation of the Modification Approval Process on or before the end of 2026, as evidenced by a duly adopted resolution of the DMCC Board of Directors. Further, the DMCC hereby approves the projects set forth in the first two years of the Five Year Capital Plan as public infrastructure projects within the meaning of Minnesota Statutes Section 469.40, Subdivision 11, and consistent with the Development Plan, adopted on April 23, 2015, as amended (each, an “Approved Capital Project” and collectively , the “Approved Capital Projects”), provided that: 1. The scope of approval for each Approved Capital Project is set forth in the 2026- 2027 DMC Capital Improvement Program Summary attached as Exhibit B; 2. Final approval of funding for each Approved Capital Project may be subject to subsequent approval by the DMCC, when such approval is necessary to affirm project scope, costs, and availability of funds; 3. For the Downtown Public-Private Infrastructure Investment Alignment project, recognizing that planning efforts are at a preliminary stage and will shape the project scope and funding needs, further detail and information as to public realm and infrastructure plans and proposed funding shall be presented to the DMCC for specific approval of the project plan and costs; and, to prepare this additional detail and information, the City is authorized, in its reasonable discretion, to expend a portion of these project funds on necessary design and planning; and 4. Staff is directed to provide the Board with an annual reconciliation of budget amounts and expenditures for each of the Approved Capital Projects. BE IT FURTHER RESOLVED, that the EDA Request for Extension of the Working Capital Loan for 2026 and 2027, and the DMCC Request for Extension of the Working Capital Loan for 2026 and 2027, attached as Exhibit A and on file with the DMCC, are approved, with the EDA and DMCC 2027 Request for Extension of the Working Capital Loan conditioned upon adoption and implementation of the Modification Approval Process on or before the end of 2026, as evidenced by a duly adopted resolution of the DMCC Board of Directors. BE IT FURTHER RESOLVED, that the Chair and Treasurer are hereby authorized and directed to transmit this Resolution to the City of Rochester and to take such actions as are necessary or convenient to effectuate the 2026-2027 DMCC Funding Request, the Five Year Capital Plan, and the extension of the Loan Documents, including, but not limited to, the authority to execute, deliver, and perform, in the name of and on behalf of the DMCC, the DMCC Request for Extension of the Working Capital Loan for 2026 and 2027 and the Loan Documents to which the DMCC is a party, with such modifications, additions, deletions, or other changes as the Chair and Treasurer may deem necessary or appropriate to accomplish the requested extension, all which may be performed without further action of this Board. 40390327v5 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 NAY OTHER Douglas M. Baker, Jr. James R. Campbell Kim Norton Randy Schubring Mark Thein Pamela Wheelock Paul D. Williams RESOLUTION ADOPTED on September 25, 2025. ATTEST: Pamela Wheelock, Chair Destination Medical Center Corporation X X X X X X X 7 0 To: 1. 2. 3. 4. 5. 6. EXH IBIT A DMC C RE QU EST F OR EXT EN SION OF WORKI NG CAP ITAL LOA N FOR 2026 AN D 2027 City of Rochester,Minnesota (the "City") The undersigned authorized representative (the "Representative")of the Destination Medical Center Corporation ("DMCC")hereby authorizes and requests an extension of the Term of the Working Capital Loan Agreement (DMCC-City),dated April 30,2015,as amended,by and between the City and the DMCC (the "Agreement")and renewals of the DMCC Note and the EDA Note,in the amount and on the date specified below,in order to pay certain DMCC Eligible Expenses and to provide the EDA Tranche to pay certain EDA Eligible Expenses,pursuant to the terms and conditions of the Agreement.Capitalized terms not otherwise defined herein shall have the meanings given them in the Agreement. The Representative certifies that (i)attached as Attachment 1 is a true and correct annual reconciliation of the DMCC Tranche Advances made through August 31,2025 and the DMCC Eligible Expenses paid from such Advances,as required by Section 2.6 of the Agreement;(ii)each item for which the DMCC sought payment in Attachment 1 was a DMCC Eligible Expense;and (iii)the Advances received by the DMCC have not exceeded the limitations set out in Section 2.4(a)of the Agreement. The Representative further certifies that attached as Attachment 2 is a true and correct copy of the EDA Request for Extension of the Working Capital Loan for 2026 and 2027. The DMCC hereby requests an extension of the Agreement Term and renewals of the DMCC Note and the EDA Note,in the amount of $1,000.00 as the DMCC Tranche Advance and in the amount of$150,000.00 as the EDA Tranche Advance,as such amounts may be adjusted by the City pursuant to Section 2.8(c)of the Agreement,for payment of DMCC Eligible Expenses and,as to the EDA Tranche,for payment of EDA Eligible Expenses. The Representative further certifies that no portion of the amount requested in paragraph 4 above constitutes a DMCC Excess Request under Section 2.3 of the Agreement. The Representative further certifies that this statement and all exhibits and attachments hereto, and documents furnished in connection herewith,shall be conclusive evidence of the facts and statements set forth herein and shall constitute full warrant,protection,and authority to the City for its actions taken pursuant hereto.tc A-- Authorized DMCC Representative Dated:,2025September 25 ATTACHMENT 1 DMCC Bank Account Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Beginning Bank Balance 65,187 1,352 1,440 1,437 1,413 627 618 236 10,234 10,234 10,234 10,234 DMCC Bank Charges 137 386 386 389 391 385 386 387 Adjustments - bank fees returnedAdjustments - change in amount Interest Earnings 3 5 2 3 3 3 5 2 EDA Funding Requested 296,749 250,006 229,148 192,968 318,074 221,625 180,100 212,771 Actual Funded 233,047 259,857 250,824 214,123 339,574 232,836 207,700 229,053 Checks 9,381 21,295 20,792 21,900 10,837 27,600 5,901 Difference (63,702) 469 381 363 (399) 373 - 10,382 - - - - Ending Bank Balance 1,352$ 1,440$ 1,437$ 1,413$ 627$ 618$ 236$ 10,234$ 10,234$ 10,234$ 10,234$ 10,234$ Reconciling Items Interest Bank Fees Net 1,352 1,440 1,437 1,413 627 618 236 10,234 10,234 10,234 10,234 10,234 Ending Bank Balance 1,352$ 1,440$ 1,437$ 1,413$ 627$ 618$ 236$ 10,234$ -$ -$ -$ -$ DMCC Working Capital Loan Account Reconciliation 2025 Year-to-Date DMCC Bank Account Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Beginning Bank Balance 1,005 1,026 2,375 1,003 888 890 13,818 893 885 887 2,594 889 DMCC Bank Charges 126 119 118 117 120 119 125 120 118 113 121 121 Adjustments - bank fees returnedAdjustments - change in amount 485 Interest Earnings 27 11 5 5 10 9 18 6 5 7 10 3 EDA Funding Requested 316,576 254,503 196,579 151,320 272,122 140,917 305,006 187,782 175,267 216,893 290,141 150,079 Actual Funded 323,994 255,959 196,694 158,992 273,734 172,531 318,099 191,158 175,382 260,473 302,670 224,009 Checks 7,298 - 1,373 7,675 1,500 18,575 25,910 3,269 - 41,766 14,123 10,000 Difference 121 1,456 (1,258) (3) 112 13,038 (12,818) 107 115 1,813 (1,594) 63,930 Ending Bank Balance 1,026$ 2,375$ 1,003$ 888$ 890$ 13,818$ 893$ 885$ 887$ 2,594$ 889$ 65,187$ Reconciling Items Interest Bank Fees Net 1,026 2,375 1,003 888 890 13,818 893 885 887 2,594 889 65,187 Ending Bank Balance 1,026$ 2,375$ 1,003$ 888$ 890$ 13,818$ 893$ 885$ 887$ 2,594$ 889$ 65,187$ DMCC Working Capital Loan Account Reconciliation 2024 Year End ATTACHMENT 2 DMC EDA Operating Account Reconciliation of Bank Balance to Advance Total Bank Balance Date:12/31/2024 Balance per Bank:50,503.28$ Add: Advance in transit for expense cleared bank or expenses not yet requested- Expense cleared 850.00$ Big Bang Expense cleared 32.52$ Amazon 10/18 Expense cleared 29.73$ Amazon 10/22 Expense cleared 78.16$ Amazon 11/19 Expense cleared 29.70$ Amazon 12/3 Expense cleared 29.73$ Amazon 12/3 Expense cleared 58.73$ Amazon 12/10 Expense cleared 220.94$ Amazon 12/24 Expense cleared 12,536.35$ BCBS 12/23 Expense cleared 5,824.46$ Fidelity Payroll 12/20 55,711.05$ SmartHR Payroll 12/6 433.00$ Dec DEED Less: Advance for expenses not cleared: CCC $ Outstanding checks $ 124.00 CC Min. payment (963.70) ER Wafa Payable $ Cash Flow $ (497.95) Double requested Lincoln 11/4 (25,000.00) Cash Flow Advance Total reconciled 100,000.00$ EXHIBIT B Description of Approved Capital Projects 2026-2027 DMC Capital Improvement Program 2026 2027 Source New Infrastructure Projects 1 Downtown Public-Private Infrastructure Investment Alignment 19,185,500$ 19,185,500$ DMC GSIA 2 Interim Wayfinding - Downtown Construction 100,000$ 100,000$ DMC GSIA 3 Strategic Development*3,000,000$ 3,000,000$ DMC GSIA Subtotal 22,285,500$ 22,285,500$ Prior-Aproved Infrastructure Projects 4 6th Street Bridge + Connectivity 2,500,000$ DMC GSIA Subtotal 2,500,000$ -$ Prior-Approved Transit Projects 5 ITS Implementation: Rapid Transit (Includes 2nd Street Recon & Streetscape)8,608,226$ 17,230,059$ DMC CTA 2,456,003$ DMC STA Subtotal 11,064,229$ 17,230,059$ Operations 6 Contributions to DMC Corporation for DMCC expenses 229,566$ 230,066$ City DMC Aid 7 Contributions to DMC Corporation for EDA expenses 3,133,864$ 3,290,557$ City DMC Aid 8 City Project Management expenses 1,548,610$ 1,631,069$ City DMC Aid 9 City of Rochester Administrative costs for DMC projects 100,000$ 100,000$ City DMC Aid Subtotal 5,012,040$ 5,251,692$ TOTAL 40,861,769$ 44,767,251$ Total City DMC Aid 5,012,040$ 5,251,692$ Total DMC GSIA 24,785,500$ 22,285,500$ Total DMC County Transit Aid 8,608,226$ 17,230,059$ Total DMC State Transit Aid 2,456,003$ *Examples: Specialized housing, HealthTech Ecosystem, Destination demand-drivers 2026-2027 DMC Capital Improvement Program Summary 1. Downtown Public-Private Infrastructure Investment Alignment Project Description: Beginning with the demolition of portions of Mayo Clinic’s Ozmun Building in late 2024, approximately fifteen blocks of Mayo Clinic’s downtown campus have been impacted by the “Bold. Forward. Unbound.” program in 2025. As Mayo Clinic undertakes its transformative private investment, the DMC EDA and City of Rochester will coordinate private and public infrastructure improvements to ensure maximum public benefit with minimum public impact. The proposed 2026-2027 DMC CIP budget of $38,371,000 (approx. $19,185,500 per year) will support street, water, storm sewer, and sanitary sewer improvements in the adjacent geography. Color code: Blue = Mayo Responsibility, Orange = Approved improvement already funded, Yellow = Option 1, Green = Option 2, Purple = Option 3 Map Number Location Condition description UPUI, Civil, PUP, Traffic Study or Site Plan requirement Replacement standard Estimate Funding request Opt 1 Funding request Opt 2 - Recommended Funding request Opt 3 1 Intersection at 6th Ave NW & Civic Center Dr Needs intersection improvements for additional traffic demand No Major roadway, greater typology than standard road 750,000$ 750,000$ 750,000$ 2 6th Ave NW between 4th St. NW & Civic Center Dr New major pedestrian corridor, above grade infrastructure only and bike enhancements No Major roadway, greater typology than standard road 1,500,000$ 1,500,000$ 1,500,000$ 3 6th Ave NW between 3rd & 4th St. NW New major pedestrian corridor, infrastructure upgrades needed (Sanitary 1945, Water 1936) No Major roadway, greater typology than standard road 1,500,000$ 1,500,000$ 1,500,000$ 4 6th Ave NW between 2nd & 3rd St. NW New major pedestrian corridor, infrastructure upgrades needed (Sanitary 1945, Water 1936) No Major roadway, greater typology than standard road 1,500,000$ 1,500,000$ 1,500,000$ 5 6th Ave NW between 1st & 2nd St. NW New major pedestrian corridor, infrastructure upgrades needed (Sanitary 1945, Water 1936) UPUI B3 & Site Plan (50% of block) Major roadway, greater typology than standard road 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 6 6th Ave NW between Center St W & 1st St NW New major pedestrian corridor, infrastructure upgrades needed (Sanitary 1945, Water 1936) UPUI B3 & Site Plan Major roadway, greater typology than standard road 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 7 Intersection of 6th Ave NW & Center Street W New major pedestrian corridor, infrastructure upgrades needed (Sanitary 1952, Stormwater 1984 & 2020, Water 1936) UPUI B3 & Site Plan Major roadway, greater typology than standard road 500,000$ 500,000$ 500,000$ 500,000$ 8 6th Ave NW between 1st St SW & Center Street W New major pedestrian corridor, infrastructure upgrades needed (Sanitary 1945 & 1952, Stormwater 1984 & 2020, Water 1936) Site Plan Major roadway, greater typology than standard road 9 6th Ave NW between 2nd St. SW & 1st SW New major pedestrian corridor, infrastructure upgrades needed (Sanitary 1945 & 1952, Stormwater 1946 & 1980, Water 1936 & 2014) Site Plan Major roadway, greater typology than standard road 1,000,000$ 10 5th Ave NW between 3rd & 4th St NW Infrastructure to support future demand (Sanitary 1945, water 1887)No Regular standard with increased capacity for development 750,000$ 750,000$ 750,000$ 11 5th Ave NW between 2nd & 3rd St NW Infrastructure to support future demand (Sanitary 1945, water 1887)UPUI B3 Regular standard with increased capacity for development 750,000$ 750,000$ 750,000$ 750,000$ 12 5th Ave NW between 1st & 2nd St NW Infrastructure to support future demand (Sanitary 1945, water 1887)UPUI B3 & Site Plan Regular standard with increased capacity for development 750,000$ 750,000$ 750,000$ 750,000$ l 13 5th Ave NW between Center St W & 1st St NW Infrastructure to support future demand (Sanitary 1945, Storm water 1946, water 1887) UPUI B2 Regular standard with increased capacity for development 500,000$ 14 4th Ave NW between 3rd St NW & Civic Center Dr New major pedestrian corridor, infrastructure upgrades needed (Sanitary 1945, Stormwater 1980, Water 1928) No Major roadway, greater typology than standard road 1,000,000$ 1,000,000$ 1,000,000$ 15 4th Ave NW between 2nd & 3rd St NW New major pedestrian corridor, infrastructure upgrades needed (Sanitary 1945, Water 1928) No Major roadway, greater typology than standard road 1,000,000$ 1,000,000$ 1,000,000$ 16 4th Ave NW between 1st & 2nd St NW New major pedestrian corridor, infrastructure upgrades needed (Sanitary 1945, Stormwater 1986) No Major roadway, greater typology than standard road 1,000,000$ 1,000,000$ 1,000,000$ 17 4th Ave NW between Center St W & 1st St NW New major pedestrian corridor, infrastructure upgrades needed (Sanitary 1945, Stormwater 1986) UPUI B3 & Site Plan Major roadway, greater typology than standard road 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 18 4th Ave NW between Center St W & 1st St SW New major pedestrian corridor, infrastructure upgrades needed (Sanitary 1945 & 2024, Stormwater 1986, Water 1928 & 1999) Civil Pkg & Site Plan 19 4th Ave NW between 1st St SW & 2nd St SW New major pedestrian corridor, infrastructure upgrades needed (Sanitary 1985, Stormwater 1985 & 2012, Water 1928 & 1986) Civil Pkg & Site Plan 20 4th Ave SW between 2nd & 3rd St SW Infrastructure to support future demand (1/2 block small Stormwater line 1955) No Regular standard with increased capacity for development 500,000$ 500,000$ 500,000$ 21 3rd Ave NW between 3rd St NW & Civic Center Dr New major pedestrian corridor and small Sanitary line improvement (1945) No Major roadway, greater typology than standard road 1,000,000$ 1,000,000$ 1,000,000$ 22 3rd Ave NW between 2nd & 3rd St NW New major pedestrian corridor and small Sanitary line improvement (1945) No Major roadway, greater typology than standard road 1,000,000$ 1,000,000$ 1,000,000$ 23 3rd Ave NW between 1st & 2nd St NW New major pedestrian corridor, infrastructure upgrades needed (Sanitary 1984,Stormwater 1962, Water 1984) Civil Pkg D Major roadway, greater typology than standard road 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 24 3rd Ave NW between Center St W & 1st St NW New major pedestrian corridor, infrastructure upgrades needed (Sanitary 1986,Stormwater 1963 &1971, Water 1986) Civil Pkg D Major roadway, greater typology than standard road 1,000,000$ 1,000,000$ 1,000,000$ 25 Intersection of 3rd Ave SW & Center St. W New major pedestrian corridor, infrastructure upgrades needed (Sanitary 1945, Stormwater 1971, Water 1986) Site plan Major roadway, greater typology than standard road l 26 3rd Ave SW from 1st SW to Center St. W New major pedestrian corridor, infrastructure upgrades needed (Sanitary 1945 & 1971, Stormwater 1971, Water 1986) Civil Pkg & Site Plan Major roadway, greater typology than standard road 27 3rd Ave SW from 2nd St SW to 1st SW New major pedestrian corridor, infrastructure upgrades needed (Sanitary 1954, Stormwater 1954, Water 2004) Civil Pkg & Site Plan Major roadway, greater typology than standard road 28 2nd Ave NW between 2nd St NW & Civic Center Dr Infrastructure to support future demand (Sanitary 1945, Stormwater 1943, water 1916) Civil Pkg Regular standard with increased capacity for development 750,000$ 750,000$ 750,000$ 750,000$ 29 2nd Ave SW between 1st St SW & Center St W Infrastructure to support future demand (Sanitary 1952, Stormwater 1946, water 1999) No Regular standard with increased capacity for development, no need to replace water 30 2nd Ave SW between 1st SW and 2nd St SW Infrastructure to support future demand (Sanitary 1952, Stormwater 1946, water 1999) Site Plan 31 1st Ave NW between 3rd St NW & Civic Center Dr Enhanced corridor bike lane improvement and infrastructure for future demand (small Stormwater 1945, undersized water 1887) Traffic study Major roadway, greater typology than standard road 750,000$ 750,000$ 32 1st Ave NW between between 2nd & 3rd St NW Enhanced corridor bike lane improvement and infrastructure for future demand (small Stormwater 1947, undersized water 1887) Traffic study Major roadway, greater typology than standard road 1,500,000$ 1,500,000$ 33 1st Ave NW between 1st & 2nd St NW Enhanced corridor, primarily above ground improvements (Sanitary 2022, Minor storm replacement, Water replacement & upsizing has sections to 1887) Traffic study Major roadway, greater typology than standard road, undersized water 1887 1,000,000$ 1,000,000$ 34 1st Ave NW between Center St W & 1st St NW Enhanced corridor, above ground improvements only (Water 2022), minor storm and roadway only Traffic study Major roadway, greater typology than standard road 750,000$ 750,000$ 35 Intersection at 1st Ave NW & Center St W Enhanced corridor and infrastructure for future demand (Sanitary sewer 1946) Traffic study Major roadway, greater typology than standard road 500,000$ 500,000$ 36 1st Ave SW between 2nd & 3rd St. SW Enhanced corridor and infrastructure for future demand (Sanitary sewer 1948, water 1989 upsize to 12") No Major roadway, greater typology than standard road 1,500,000$ 1,500,000$ l 37 1st Ave SW between 3rd & 4th St. SW Enhanced corridor and infrastructure for future demand (Sanitary sewer 1948, stormwater 1948, water 1919 3 sections and upsizing) No Major roadway, greater typology than standard road 1,500,000$ 1,500,000$ 38 3rd St NW between 5th & 6th Ave NW Infrastructure to support future demand (Sanitary 1945, Stormwater 1945, water 1887 upsizing) No Regular standard with increased capacity for development 750,000$ 750,000$ 750,000$ 39 3rd St NW between 4th & 5th Ave NW Infrastructure to support future demand (Sanitary 1945, water 1887 upsizing) UPUI B3 Regular standard with increased capacity for development 750,000$ 750,000$ 750,000$ 750,000$ 40a 3rd St NW between 3rd & 4th Ave NW Infrastructure to support future demand (Sanitary 1945, Stormwater 1996 & 2001, water 1887 upsizing) UPUI B3 Regular standard with increased capacity for development 500,000$ 500,000$ 500,000$ 500,000$ 40 3rd St NW between 3rd Ave NW & Civic Center Drive Infrastructure to support future demand (Sanitary 1945, water upsizing 1999) No 500,000$ 500,000$ 500,000$ 500,000$ 41 3rd St NW between 2nd & 3rd Ave NW Infrastructure to support future demand (Sanitary 1945, Stormwater 1945, water 1887 ) Mayo doing some as part of PUP UPUI B3 Regular standard with increased capacity for development 42 2nd St NW between 5th & 6th Ave NW Infrastructure to support future demand (Sanitary 1947, Stormwater 1945, water 1887 need upsizing) UPUI B3 Regular standard with increased capacity for development 750,000$ 750,000$ 750,000$ 750,000$ 43 2nd St NW between 2nd & 3rd Ave NW Infrastructure to support future demand (Sanitary 1984, Stormwater 1945 & 1983, Water 1999 & 2011) Civil pkg Regular standard with increased capacity for development 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 44 1st St NW between 5th Ave NW & 6th Ave NW Infrastructure to support future demand, street is bituminous pavement (water 1990 no replacement 12") UPUI & Site Plan Regular standard with increased capacity for development 750,000$ 750,000$ 750,000$ 750,000$ 45a 1st St NW between 4th Ave NE & 5th Ave NW Infrastructure to support future demand, street is bituminous pavement (water 1990) UPUI & Site Plan Regular standard with increased capacity for development 500,000$ 45b 1st St NW between 3rd Ave NW &4th Ave NE Infrastructure to support future demand, street is bituminous pavement (water 1986, storm) Civil & Site Plan Regular standard with increased capacity for development 750,000$ 750,000$ 750,000$ 750,000$ l 46 Center St W between 5th & 6th Ave NW Cycle track & Infrastructure to support future demand (Sanitary 2003, Stormwater 1984, Water 2003) Traffic study Regular standard with increased capacity for development 47 Center St W between 4th & 5th Ave NW Cycle track & Infrastructure to support future demand (Sanitary 2003, Stormwater 1984, Water 2003) Traffic study Regular standard with increased capacity for development 500,000$ 48 Center St W between 3rd & 4th Ave NW Cycle track & Infrastructure to support future demand (Sanitary 2003, Stormwater 1971 & 1986, Water 2003) Civil Pkg &Traffic study Regular standard with increased capacity for development 49 Center St W between 2nd & 3rd Ave NW Cycle track & Infrastructure to support future demand (Stormwater 1971 & 1986, Water 1986 & 2000) Civil Pkg &Traffic study Regular standard with increased capacity for development 50 Center St W between 1st & 2nd Ave NW Enhanced corridor primarily above ground improvements some infrastructure for future demand (Sanitary sewer 1963, Stormwater 1954, water 1963 cast iron replacement, upsizing) Traffic study Regular standard with increased capacity for development 51 1st St SW between 5th& 6th Ave NW - North side only Enhanced corridor primarily above ground improvements some infrastructure for future demand (Sanitary sewer 1985 - Mayo, Stormwater 1954, water 1916 Mayo? Site plan & Civil package B Major roadway, greater typology than standard road 750,000$ 750,000$ 750,000$ 52 1st St SW between 4th & 5th Ave NW - North side only Enhanced corridor primarily above ground improvements some infrastructure for future demand (Sanitary sewer 1985 - Mayo, Site plan & Civil package B Major roadway, greater typology than standard road 750,000$ 750,000$ 750,000$ 53-56 2nd St SW between 1st Ave SW & 6th Ave SW Mayo improvements A 2nd Ave NW from 3rd St NW to 5th St. NW and 5th St. NW from 2nd Ave NW to 4th Ave NW Infrastructure to support future demand (Sanitary 1945 & 1954 water 1931) Civil pkg 2,871,000$ 2,871,000$ 2,871,000$ 2,871,000$ Total 40,371,000$ 15,621,000$ 30,371,000$ 37,871,000$ Kutzky park allocation 3,000,000$ 8,000,000$ 8,000,000$ Revised total 18,621,000$ 38,371,000$ 45,871,000$ l 2026-2027 DMC Capital Improvement Program Summary 2. Interim Wayfinding + Downtown Construction Project Description: The commencement of major construction in the DMC development district, including LINK bus rapid transit and Mayo Clinic’s “Bold. Forward. Unbound” program, will create frequently evolving mobility and commuting circumstances for employees, residents, patients, and visitors. Interim wayfinding assets and strategies will be deployed to ensure that pedestrians, transit and micro-mobility users, and drivers can successfully navigate to and through transformation-impacted areas. Assets could include items like signage providing direction to retail and dining amenities, hotels and recreation assets, Mayo Clinic campuses and Discovery Square, and other areas of interest. 3. Strategic Development Project Description: In 2020 the DMCC and City Council established, in the DMC CIP, a Strategic Development fund intended to proactively support housing, med-tech, downtown property improvement, and other strategic priorities established by the DMCC and Rochester City Council. Each year the DMCC and City Council added to this line item, for a total of $26 million. • 2021: $7M • 2022: $3M • 2023: $3M • 2024: $10M • 2025: $3M TOTAL: $26M These funds were sourced from the DMC General State Infrastructure Aid portion of the DMC-directed funds. To date, these funds have been approved for use with five projects: • $2.2M: Bryk on Broadway (mixed-income workforce housing) • $500K: Civic Center North (Sherman) (mixed-income workforce housing with expected public realm improvements and thermal energy network connection) • $3.9M: West Transit Village Phase 1 (Aeon) (affordable senior housing surrounding a planned parking ramp) • $5M: Historic district public infrastructure 2026-2027 DMC Capital Improvement Program Summary • $2.3725M: 2nd Street Public Realm (Gerrard) connected to workforce for-sale Housing and private multifamily investment • $8M: BioLabs-Rochester • $4M: Loom Apartments These approvals have reduced the Strategic Development fund balance to $27,500. City and DMC EDA staff recommend allocating $3 million per year to this fund as a part of the 2026-2027 DMC CIP. Developer interest in downtown Rochester continues to rise, particularly in the specialized housing, HealthTech ecosystem, and destination demand-driver markets, making this capital budget a useful asset in board and council decision-making. 4. 6th Street Bridge + Connectivity Project Description: The 6th Street Bridge, Roadway Safety and Riverfront Improvements project will construct a bridge over the Zumbro River that connects East and West 6th Street South as well as redevelop the area’s existing flood control system into an accessible riverfront space. In 2020, the City led the Downtown Waterfront Southeast Small Area Plan to create a vision for the area. The 6th Street Bridge and Riverfront Improvements project was a key component of this plan and during the study process a preferred bridge concept was identified. The project is intended to: provide a safe multimodal east-west connection to Discovery Walk, southeast neighborhoods and downtown; provide greater access to the Zumbro River by creating an active, accessible, welcoming space that takes advantage of this natural amenity while also providing flood protection; improve access to support redevelopment areas in the near-term (AMPI plant site, Kmart site) and to support the economic vitality goals of the DWSE Plan; provide equitable transportation access to all through enhanced pedestrian and bicycle infrastructure and Complete Streets; implement traffic calming and other safety improvements that limit traffic volumes and speeds in adjacent neighborhood; and commit to social and economic equity and environmental sustainability throughout the project design and implementation processes. The project cost is $35.8 million and is being funded by a U.S. Department of Transportation Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grant award of $19.9 million, a MNDOT federal grant match of $5.9 million and a required local RAISE grant match of $10 million, which is sourced from DMC GSIA. Construction is expected to begin in 2026. No additional DMC funds have been requested or approved. 2026-2027 DMC Capital Improvement Program Summary 5. Link Bus Rapid Transit Project Description: Link rapid transit is a planned 2.8-mile route along 2nd Street that will connect downtown Rochester, Mayo Civic Center, Mayo Clinic campuses, and the Downtown Waterfront Southeast area. Link will be operated by Rochester Public Transit and will be free for all users. Link buses are high amenity, 60-foot electric buses which will provide service to 7 stations across the city. Service intervals will be every 5 minutes on weekdays from 6 to 9 a.m. and 3 to 6 p.m., and every 10 to 15 minutes at other times. Link will operate from 5 a.m. to midnight on weekdays and 8 a.m. to midnight on weekends. The project is being completed using funds from DMC and a U.S. Federal Transit Administration (FTA) grant. Following the approval of additional contingency funding by the DMCC board of directors in July 2025, the project budget is: 6. DMC Corporation Project Description: The operating budget of the DMC Corporation provides funding for professional services, including audit and tax preparation and legal counsel; insurance and required non-profit filings; board meetings; and eligible board member travel, per diem, and reimbursable expenses. 7. DMC EDA Project Description: The DMC EDA provides ongoing program and advisory services to the DMCC. The scopes of services are informed by the DMC EDA’s responsibilities under the DMC Act, the services agreement between the DMCC and the DMC EDA, and the approved work plan. 2026-2027 DMC Capital Improvement Program Summary 8. City of Rochester DMC Project Management Team Project Description: The operating budget of the City of Rochester DMC Project Management Team engaged in project, program, and technical support of the DMC initiative. Supported projects include LINK Rapid Transit, 6th Street Connectivity, West Transit Village development, Heart of City, Riverfront development, and project coordination related to “Bold. Forward. Unbound.” Supported programs include targeted business and workforce utilization, the downtown task force, the Downtown Commercial Historic District property preservation program, active transportation, and “Business Forward” construction enhancement and impact mitigation strategies. Project management activities are presented in a work plan. 9. City of Rochester administrative support to the DMCC Project Description: The City of Rochester provides administrative support to the DMC Corporation, including serving at the DMCC’s fiscal agent, coordinating the completion of its annual financial audit and tax filings, posting meeting agendas and other required notices.