HomeMy WebLinkAboutDMCC Resolution No. EC 14-2026 (Authorizing April 1, 2026 Certification to DEED Pursuant to Statute)DESTINATION MEDICAL CENTER CORPORATION
EXECUTIVE COMMITTEE
RESOLUTION NO. EC 14-2026
AUTHORIZING APRIL 1, 2026 CERTIFICATION TO DEED
PURSUANT TO STATUTE
The following Resolution was offered by Mark Thein, seconded by Paul Williams.
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, 2026,
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.
42106794v1
The question was on the adoption of the Resolution and there were 3 YEAS and
0 NAYS, as follows:
EXECUTIVE COMMITTEE
Destination Medical Center Corporation
YEA NAY OTHER
Mark Thein X
Pamela Wheelock X
Paul D. Williams X
RESOLUTION ADOPTED on March 13, 2026.
ATTEST:
Pamela Wheelock, Chair
Destination Medical Center Corporation
EXHIBIT A
DESTINATION MEDICAL CENTER CORPORATION
201 4th St. SE.
Rochester, Minnesota 55904
March 13, 2026
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 2025 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,
2025 (“Attachment 1”). The City of Rochester, Minnesota assisted with the compilation of
this report. The amount of 2025 investments set forth in this report is $5,709,296.00
2.Mayo Clinic Certification: I enclose correspondence and accompanying materials
from Natalie Caine, Chief Administrative Officer, Mayo Clinic in Rochester, dated
March 2, 2026 (“Attachment 2”). Mayo Clinic is certifying expenditures for the period of
January 1, 2025 through December 31, 2025 in the amount of $342,327,221.03.
3.Summary of Investments: The summary page, entitled “Certification of
Expenditures, Destination Medical Center” is enclosed, setting forth total cumulative
expenditures through December 31, 2025, in the amount of $2,140,906,153.51
(“Attachment 3”).
As these certifications reflect, the DMC initiative has entered a period of sustained delivery
at scale. Rochester has recorded more than $1 billion in annual construction activity for three
consecutive years, driven in significant part by Mayo Clinic’s multi-year downtown expansion,
which is now underway across multiple active building sites and is expected to continue through
the end of the decade. DMC has supported more than $200 million in public infrastructure
Commissioner Matt Varilek
March 13, 2026
Page 2
investments to date, contributing to the redevelopment of approximately 15 city blocks and a
doubling of downtown housing units.
At the same time, local partners are actively working to ensure that Rochester’s downtown
remains resilient and accessible during this period of extraordinary construction activity. The scale
of Mayo Clinic’s expansion and related infrastructure improvements will reshape much of the
downtown district over the coming years. In response, the City of Rochester, the DMC Economic
Development Agency, and community partners have advanced coordinated strategies to support
businesses, residents, and visitors during this period of disruption. These efforts include
construction mitigation programs such as Business Forward, storefront activation initiatives that
support downtown merchants and entrepreneurs, and coordinated housing and community
development efforts such as the Coalition for Rochester Area Housing. Major public investments
are also moving forward, including the Link bus rapid transit system, which is expected to
strengthen downtown connectivity and create new opportunities for transit-oriented development
in the years ahead.
Thank you for your continued collaboration and oversight of this initiative. As the DMC
initiative progresses, the DMCC remains committed to the performance-based framework
established by the Legislature, ensuring that public infrastructure investments remain aligned
with verified private investment and that the initiative continues to advance long-term economic
vitality for Rochester and the State of Minnesota. Please do not hesitate to contact the DMCC or
Mayo Clinic should you require additional information. We look forward to continuing to work
with the State of Minnesota, the City of Rochester, Olmsted County, Mayo Clinic, and our other
partners to ensure the DMC initiative remains accountable, effective, and aligned with the
Legislature’s intent.
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
41870336v2
Permit Type Permit Number Permit Date Parcel ID Address Valuation Investment Type (New Construction, Redevelopment-Renovation)Space Type Owner Permit Status Date
Alteration R23-0390CB 4/24/2024 12773 624 W Center Street 550,000$ Redevelopment or Renovation Residential Gift of Life Inc C of C 5/9/2025
Alteration R24-0219CB 7/12/2024 14431 332 S Broadway 70,000$ Redevelopment or Renovation Retail, Dining, Entertainment Robert Beeman Finaled 1/16/2025
Alteration R24-0028CB 8/16/2024 25727 844 S Broadway 100,000$ Redevelopment or Renovation Retail, Dining, Entertainment TRCH Plaza LLP C of O 12/17/2025
Business R24-0023S 5/7/2024 48797 400 SE 4th Street 22,500$ Redevelopment or Renovation Retail, Dining, Entertainment Holiday Station Stores Inc.Closed 12/16/2025
Alteration R24-0257CB 9/3/2024 68010 202 SW 1st Ave 120,000$ Redevelopment or Renovation Education Moose Enterprises LLC Finaled 12/15/2025
Alteration R24-0341CB 10/9/2024 78115 310 S Broadway 535,000$ Redevelopment or Renovation Office 310 Broadway LLC C of C 2/25/2025
Alteration R24-0178CB 8/16/2024 84104 217 SW 14 Ave 195,000$ Redevelopment or Renovation Residential Knickerbrocker Berkman LLC Finaled 2/18/2025
Alteration R24-0352CB 11/4/2024 4997 202 NW 6 Ave 600,000$ Redevelopment or Renovation Residential Rock Block Partners LLC Finaled 2/12/2025
Alteration R24-0324CB 10/7/2024 17886 111 S Broadway 500,000$ Redevelopment or Renovation Retail, Dining, Entertainment BGD 5 Mall LLC Finaled 7/24/2025
Alteration R24-0094CB 4/25/2024 18448 301 N Broadway 75,000$ Redevelopment or Renovation Retail, Dining, Entertainment 3rd Charm Enterprises LLC Finaled 7/30/2025
Alteration R24-0033MFB 6/12/2024 48706 101 NE Civic Center Dr.2,304,100$ Redevelopment or Renovation Residential EWR Rochester Civic Square Apartments LLC Finaled 9/2/2025
Alteration R24-0417CB 12/11/2024 77149 1203 SW 2 Street 45,000$ Redevelopment or Renovation Retail, Dining, Entertainment Canadian Honker Restaurant Finaled 1/21/2025
Alteration R24-0376CB 11/7/2024 79535 123 SW 16 Ave 200,000$ Redevelopment or Renovation Retail, Dining, Entertainment RP Second Street LLC Finaled 3/12/2025
Alteration R24-0418CB 5/29/2025 83045 10 E Center Street 85,000$ Redevelopment or Renovation Retail, Dining, Entertainment Legacy Fund I LLC Finaled 5/29/2025
Alteration R25-0203CB 6/25/2025 14305 319 S Broadway 90,485$ Redevelopment or Renovation Education JLB Properties LLC C of O 9/30/2025
Alteration R25-0016CB 2/27/2025 14442 30 SE 3 Street 84,699$ Redevelopment or Renovation Health City Center I LLC Finaled 4/23/2025
Alteration R25-0128CB 4/21/2025 83795 202 SW 4th Street 93,000$ Redevelopment or Renovation Research Mayo Clinic (as building tenant)C of O 8/27/2025
Sign R25-0028S 4/8/2025 88116 705 SW 1 Ave 24,512$ New Construction Residential First and B of Rochester LLC Closed 10/23/2025
ReRoof R25-0434RBR 9/10/2025 11525 104 SW 16 Ave 15,000$ Redevelopment or Renovation Residential Freetly and Johnson LLC Finaled 10/8/2025
$5,709,296
DMCC Certification of Expenditures
2025 -- Non-Mayo Clinic
Building Permits within the DMC Boundary
(Does not include Mayo Projects)
Completed
Year Projects
2023 550,000$
2024 4,851,600$
2025 307,696$
TOTAL 5,709,296$
March 2, 2026
Matt Varilek
Commissioner
Minnesota Department of Employment and Economic Development
Great Northern Building
180 E. 5th Street #1200
Saint Paul, MN 55101-1351
Dear Commissioner Varilek:
On behalf of Mayo Clinic, I am pleased to share the organization’s 2025 report of private investments
related to the Destination Medical Center (DMC) initiative. These investments reflect Mayo Clinic’s
continuing commitment to advancing patient care, research and innovation in Minnesota while
strengthening the state’s economy and workforce.
In 2025, Mayo Clinic recorded more than $342.3 million in DMC-qualified investments across
Rochester. Most expenditures supported Bold. Forward. Unbound. in Rochester, the largest capital
project in Mayo Clinic’s history. This transformative effort is reshaping the downtown campus to create
flexible spaces for care and discovery, expand patient access and better connect new facilities to the
community. Mayo also modernized other key facilities, advancing digital and translational research and
improving care delivery for patients, visitors and staff. Each investment supports Mayo Clinic’s mission,
sustains thousands of jobs and strengthens Rochester’s innovation ecosystem, attracting startups and
collaborators from across Minnesota and beyond.
Mayo Clinic is grateful for the State of Minnesota’s partnership in realizing the DMC vision. This
collaboration drives continued investment in Rochester and strengthens Minnesota’s standing as a global
leader in health care and innovation. As the state’s largest private employer, Mayo Clinic’s mission and
the dedication of our staff ensure these investments deliver lasting impact for patients, communities and
our future.
We look forward to continuing this important work with our public partners and the leaders who make
Minnesota a global destination for excellence in health and discovery.
Sincerely,
Natalie Caine
Chief Administrative Officer – Rochester
Mayo Clinic
cc: Kevin McKinnon, Deputy Commissioner of Economic Development, Minnesota Department of
Employment and Economic Development
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 02/5/2026
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
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 467.47 and the approved
methodology as outlined in the City of Rochester Commissioner of Employment and Economic Development State
Infrastructure Aid Agreement.
State Transit Aid Qualified for (Box 7 multiplied by .0075 and then multiplied by .6)
DateMayo Clinic Chief Financial Officer
For Expenditures By the Medical Business Entity:
$8,734,077.69
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)$53,374,919.22
$1,792,869,636.48
$348,036,517.03
$2,140,906,153.51
$1,940,906,153.51
Previous Years Expenditures (cumulative)
TOTAL Expenditures This Year3 (from Box 3)
All Claimed Expenditures as of 12/31/25 (Box 4 plus Box 5)
Qualified Expenditures claimed in 2025 (Box 6 minus $200,000,000)
Certification of Expenditure
Destination Medical Center
For Calendar Year 2025
Due to Commissioner of Employment and Economic Development (DEED) by April 1, 2026
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 2025, and the certifications required to support the documentation under the City of Rochester Commissioner
of Employment and Economic Development State Infrastructure Aid Agreement.
$342,327,221.03
$5,709,296.00
$348,036,517.03
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