HomeMy WebLinkAboutResolution No. 108-26 - Resolution - University of Minnesota Rochester GSIA Funds
RESOLUTION
Approving Expenditure of Destination Medical Center (DMC) Strategic
Redevelopment Funds in Support of the University of Minnesota Rochester
Project.
WHEREAS, the Development Plan adopted by the Destination Medical Center
Corporation (DMCC) on April 23, 2015, as amended, (the “Development Plan”)
established certain goals and objectives of economic development, which include
creating approximately 35,000 – 45,000 new jobs, leveraging the public investment to
attract private investment, attracting new business, and expanding existing businesses,
as well as implementing strategies to attract, retain, and foster the development of a highly
skilled workforce. The Development Plan also directed a comprehensive strategy to
address all facets of building and sustaining the development district boundaries as
adopted in the Development Plan; and
WHEREAS, the University Minnesota Rohester (UMR) is proposing a $10.38 million
capital project within the Discovery Square subdistrict of the DMC. The project will convert
1,400 square feet of classroom space into hooded laboratory space in One Discovery
Square and develop approximately 12,603 square feet of teaching laboratories,
classrooms, and collaboration space in Two Discovery Square; and
WHEREAS, DMC EDA and City staff conducted a comprehensive evaluation of UMR’s
application, including draft lease materials, fit plans, construction estimates, lease terms,
and program documentation. Staff determined the project satisfies DMC statutory
eligibility requirements, with reimbursement limited exclusively to eligible permanent hard
costs, including structural construction, fixed laboratory infrastructure, and integrated
building systems. Movable equipment, furniture, and programmatic assets are explicitly
excluded; and
WHEREAS, the University Minnesota Rochester Project aims to locate teaching,
laboratory, and workforce-development capacity inside Discovery Square, supporting one
of the conditions set for Discovery Square’s long-term success, talent employers,
innovators, and ecosystem partners need a visible workforce and learning pipeline
embedded in the district itself; and
WHEREAS, UMR enrollment increased from 938 students in Fall 2024 to 1,122 students
in Fall 2025, representing 20% single-year growth, with projections exceeding 2,500
students by 2030. Existing laboratory capacity is fully utilized. Without this investment,
UMR would likely need to cap enrollment growth or develop additional lab capacity
outside Discovery Square, reducing opportunities for collaboration within the district’s
innovation ecosystem; and
WHEREAS, the Project expands healthcare and life-science workforce capacity through
teaching laboratories, applied learning environments, and workforce development
programming integrated within Discovery Square. UMR’s partnership with the Mayo Clinic
School of Health Sciences and its expanding academic programs in nursing, digital
health, pharmacy, dentistry, and allied health underscore the project’s workforce
development value; and.
WHEREAS, the DMCC Board approved the use of DMC Strategic Redevelopment Funds
in support of the University of Minnesota Rochester Project at their May 21, 2026, DMCC
meeting in the amount of up to $3,000,000; and
WHEREAS, it is recommended that the Rochester Common Council approve up to
$3,000,000 in DMC CIP Strategic Redevelopment fund to support the University of
Minnesota Rochester Project; and
WHEREAS, the Project is subject to reimbursement being limited to documented eligible
permanent hard costs; compliance with DMC statutory requirements, including prevailing
wage, American-made steel, targeted business utilization, and sustainable building
guidelines; execution of a Development Assistance Agreement; and enforceable
durability provisions ensuring long-term district-serving use; and
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Rochester,
MN, that the Council authorized the use of up to $3,000,000 from the DMC CIP Strategic
Redevelopment fund for the proposed University of Minnesota Rochester Project.
PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF
ROCHESTER, MINNESOTA, THIS __________ DAY OF _______________, 2026.
___________________________________
PRESIDENT OF SAID COMMON COUNCIL
ATTEST: __________________________
CITY CLERK
APPROVED THIS _____ DAY OF ______________________, 2026.
___________________________________
MAYOR OF SAID CITY
(Seal of the City of
Rochester, Minnesota)