HomeMy WebLinkAbout8/9/2013 DMCC Board Meeting - AgendaBOARD MEETING
2 P.M. FRIDAY, AUGUST 9, 2013
ROCHESTER CONVENTION CENTER
DESTINATION
MEDICAL CENTER
CORPORATION
(DMCC)
Destination Medical Center Corporation (DMCC)
Board Meeting
Friday, August 9, 2-4 p.m.
Rochester Convention Center Grand Ballroom
AGENDA
I. Call Meeting to Order/Welcome - Governor Mark Dayton
II. Official Welcome
A. Mayor Ardell Brede, City of Rochester
B. Jim Bier, Chairman, Olmsted County Board of Commissioners
C. Dr. John H. Noseworthy, President and CEO, Mayo Clinic
III. Board Introductions
IV. Mayo Clinic/DMC Overview, Key Tasks
A. Dr. John H. Noseworthy, President and CEO, Mayo Clinic
B. Dr. Bradly Narr, Medical Director, DMC
C. Lisa Clarke, Administrator, DMC
V. General Business
A. Election of DMCC Board Chair
B. DMCC Meeting Schedule
C. Process/Timeline to Select Legal Counsel, Process/Timeline for Review and Approval of Articles
of Incorporation and Bylaws
D. Identify Process/Timing for Drafting Policies and Procedures
VI. Overview/Discussion of Open Meetings Law
A. Terry Adkins, Rochester City Attorney
VII. Meeting Adjourn
Board Members
James Vincent (Jim) Bier
Chairman, Olmsted County Board of Commissioners
Jim Bier was born in Janesville, Wis. He has a B.S. in Plant Pathology from
the University of Wisconsin-Madison. He is married with three children.
Mr. Bier has been a farmer since 1994 and a tax preparer since 2002 for
Smith Schafer and Associates. From 1979-1991, he was Plant Superintendent for Seneca/Libby,
managing daily operations for vegetable canning and freezing. From 1991-1994, he was a
Commodity Buyer for Crenlo Manufacturing, purchasing contract material for tractor cab
manufacturing and electronics.
Mr. Bier has served the community on the Olmsted County Planning Advisory Committee, the
Olmsted County Board of Adjustment, and as a Township Supervisor. He has been an Olmsted
County Commissioner since 2002 and is currently Chairman of the Board of Commissioners.
He has served on various community boards, including Channel One Food Shelf, Olmsted
County Historical Society and Knights of Columbus.
Mr. Bier has also served as a youth hockey, soccer and softball coach and as an assistant high
school softball coach.
The Honorable Ardell F. Brede
Mayor of Rochester, Minnesota
Ardell F. Brede has been Mayor of the City of Rochester, Minnesota
since 2003. A native of Austin, Minn., he spent his career at
Rochester Methodist Hospital and Mayo Clinic, serving the
organization in numerous roles, including Admissions, Business
Services, Systems and Information Support, and Finance
Administration.
Mayor Brede has served his community in many ways, including
Campaign Chair and President of United Way of Olmsted County, President of the Rochester
Figure Skating Club, President of the Rochester Arts Council, President of Affiliated Credit
Services, President of Rochester Civic Music, President of the RCTC Foundation, and President
of RAAFUM.
He is a Rotarian, a member of the Charities Review Council of Minnesota, Rochester
Quarterbacks Club, Rochester Area Chamber of Commerce, and Bethel Lutheran Church.
Mayor Brede has served in leadership roles with the League of Minnesota Cities, the U.S.
Conference of Mayors and the University of Minnesota Center for Transportation Studies.
Mayor Brede and his wife, Judy, have three children and six grandchildren.
James R. Campbell
Retired, Group Executive Vice President
Wells Fargo and Company
Chairman and Chief Executive Officer
Wells Fargo Bank Minnesota, N.A.
Prior to his retirement on June 15, 2002, James R. Campbell was Group Executive Vice President
for Wells Fargo and Company. He was also Chairman and Chief Executive Officer of Wells Fargo
Bank Minnesota.
He was born on May 24, 1942 in Byron, Minn. He earned his bachelor’s degree in business
administration from the University of Minnesota.
Mr. Campbell began his 38-year financial services career with the Northwestern National Bank
of Minneapolis in 1964 as a commercial lending trainee. In 1988, he became President and
Chief Executive Officer of Norwest Bank Minnesota. The same year, he added the additional
title of Executive Vice President of Norwest Corporation. On November 2, 1988, he became
Group Executive Vice President for Wells Fargo and Company with the merger of Norwest
Corporation and Wells Fargo.
Recently he served as interim Dean of the Carlson School of Management at the University of
Minnesota. He is a past chairman and member of the Carlson School’s Board of Overseers.
He currently serves on the Board of Directors of the Marvin Companies, Lifetouch, Inc., and
Forsythe Appraisals. He chairs the Board of the United Health Foundation and was the chair of
the Itasca Project.
He has been extensively involved in many community, non-profit and educational
organizations. He was the Chairman of the Board of the University of Minnesota Foundation
and service on the Board for several years. Currently he is a Life Trustee. He chaired the boards
of the Greater Twin Cities United Way and the Abbott-Northwestern Hospital. He has served on
the boards of the Minneapolis Institute of Arts, Allina, Junior Achievement, the Minneapolis
Foundation, Children’s Home Society and Westminster Presbyterian Church.
He is the recipient of the Outstanding Achievement and Regents Awards and an Honorary
Doctor of Laws Degree from the University of Minnesota, the Renaissance Award from the
College of Saint Benedict, a Lifetime Achievement Award from the NAACP, the 2003 Executive
of the Year Award from the Business Journal and the Humanitarian Award from Best Prep. In
2005, Mr. Campbell was inducted into the Minnesota Business and Junior Achievement Halls of
Fame.
He and his wife, Carmen, have two children.
William (Bill) George
Professor of Management Practice, Harvard Business School
Former Chairman and Chief Executive Officer, Medtronic, Inc.
Bill George is professor of management practice at Harvard Business
School, where he has taught leadership since 2004. He is the author of four
best-selling books: 7 Lessons for Leading in Crisis, True North, Finding Your True North, and
Authentic Leadership. With co-author Doug Baker he recently published True North Groups.
Mr. George is the former chairman and chief executive officer of Medtronic. He joined
Medtronic in 1989 as president and chief operating officer, was chief executive officer from
1991-2001, and board chair from 1996-2002. Earlier in his career, he was a senior executive
with Honeywell and Litton Industries and served in the U.S. Department of Defense.
Mr. George currently serves as director of ExxonMobil, Goldman Sachs, and the Mayo Clinic and
also served on the board of Novartis and Target Corporation. He is currently a trustee of the
World Economic Forum USA and Guthrie Theater and a former Trustee of Carnegie Endowment
for International Peace. He has served as board chair for Allina Health System, Abbott-
Northwestern Hospital, United Way of the Greater Twin Cities, and Advamed.
He was elected to the National Academy of Engineering in 2012. He has been named one of
"Top 25 Business Leaders of the Past 25 Years" by PBS; "Executive of the Year-2001" by the
Academy of Management; and "Director of the Year-2001-02" by the National Association of
Corporate Directors. Mr. George has made frequent appearances on television and radio and
his articles have appeared in Wall Street Journal, Business Week, Fortune, Harvard Business
Review, and numerous publications.
Mr. George received his BSIE with high honors from Georgia Tech, his MBA with high distinction
from Harvard University, where he was a Baker Scholar, and honorary PhDs from Georgia Tech,
Bryant University, and University of St. Thomas. During 2002-03 he was professor at IMD
International and Ecole Polytechnique in Lausanne, Switzerland, and executive-in-residence at
Yale School of Management.
He and his wife Penny reside in Minneapolis, Minnesota.
Ed Hruska
Rochester City Council
Ed Hruska was born and raised in Rochester where he has been
involved in many aspects of the community from coaching youth
football to chairing the high school booster club. He is the current
Executive Director of the Rochester Amateur Sports Commission – a
position he has held since 2003.
Mr. Hruska is a Certified Sports Events Executive and currently serves on the Board of Directors
for both the Minnesota Amateur Sports Commission and the National Association of Sports
Commissions. The Rochester Amateur Sports Commission was honored as National Member of
the Year in 2010.
He has served on the Rochester City Council for 10 years and has participated in various board
and committees during those years. He currently serves on the Board of the Rochester Area
Economic Development (RAEDI), Rochester Downtown Alliance and serves as Chair of the
Personnel Advisory Committee.
Susan Park Rani
Founder, Rani Engineering
Susan Park Rani is an entrepreneur, shareholder and founder of Rani
Engineering, Inc., a Minneapolis based firm with offices in California and
North Dakota. Ms. Park Rani received a Bachelor of Civil Engineering and
an MBA from the University of Minnesota – Twin Cities.
She is a registered Professional Engineer with more than 30 years of
experience in planning, designing, and construction of buildings, industrial facilities, highways,
railroads, airports, waterways, and water and wastewater treatment plants.
Her nonprofit experience includes serving on the boards of American Consulting Engineering
Companies Minnesota (ACEC MN), St. Paul Area Chamber of Commerce (SPACC), Mounds Park
Academy (prekindergarten to 12), Association of Women Contractors and National Association
of Minority Contractors Upper Midwest (NAMC UM).
Susan Park Rani is a 53 year-old Korean-born Minnesotan. She lives in Minneapolis and has two
daughters, Sonia and Sylvia.
The Honorable R.T. Rybak
Mayor of Minneapolis, Minnesota
R.T. Rybak, a Minneapolis native, was elected Mayor of Minneapolis in
2001, in his first run for public office, and was overwhelmingly
reelected in 2005 and 2009. Since then, he has gotten strong results for
Minneapolis in:
• Growth. Mayor Rybak has led a multi-pronged approach to growing jobs and the
economy through, among other strategies, growing the high-tech and green-economy
sectors, helping small business succeed, fostering innovation, increasing regional
cooperation and training displaced and hard-to-employ workers in fast-growing sectors.
He is focused on closing racial disparities in employment and entrepreneurship, and is
pursuing the goal of adding 65,000 residents by 2025, primarily along transit corridors.
• Transit and livability. Under Mayor Rybak’s leadership, options for transit and non-
motorized transportation have expanded greatly: Minneapolis is now served by light rail
and bus rapid transit, and has been named the #1 bike city in America as well as one of
the greenest cities in America. Mayor Rybak is also putting in place a plan to add a
network of modern streetcars. He has also focused on building and promoting the
amenities that attract talent. In the last 10 years, Minneapolis has topped multiple
national lists of the best cities to live, work, visit and do business.
• Future workforce. Mayor Rybak founded the Minneapolis Promise, which provides
young people with free college and career counseling, free and low-cost access to
college, and high-quality summer jobs. Since 2004, the STEP-UP summer jobs program
has placed 16,000 youth — 86% of whom are youth of color — in real-life jobs with
Minneapolis’ best private, public and nonprofit employers.
• Fiscal responsibility and reform. Under Mayor Rybak’s leadership, the City of
Minneapolis has paid down or avoided $241 million in debt, cut spending by 16%,
reformed pensions and restored its AAA credit rating. Mayor Rybak instituted results-
based management, Minneapolis 311 and Wireless Minneapolis, which made
Minneapolis the nation’s first fully wireless city.
Mayor Rybak is married to Rochester native Megan O’Hara, a healthy-food advocate and
public-relations consultant; they have two adult children, Charlie and Grace. Mayor Rybak is not
seeking a fourth term in office and will retire as mayor at the end of 2013.
Tina Smith
Chief of Staff to Governor Mark Dayton and
Lt. Governor Yvonne Prettner Solon
Tina Smith serves as Chief of Staff to Governor Dayton and Lt. Governor
Yvonne Prettner Solon.
Ms. Smith previously served as Chief of Staff to Minneapolis Mayor R.T.
Rybak and has diverse experience in the business and nonprofit sectors. Ms. Smith started her
career at General Mills, founded a marketing and communications firm that served foundations
and businesses in Minnesota and across the country, led Planned Parenthood’s public affairs,
marketing and education programs in this region, and is a veteran of dozens of local, state and
national political campaigns.
Ms. Smith earned a BA from Stanford University and an MBA from the Tuck School at
Dartmouth. She lives with her husband Archie Smith in Minneapolis.
DMC Overview
Destination Medical
Center
Creating the World’s Leading Center for
Excellence in Health, Wellness and Medical Innovation
DMC BRIEFING DOCUMENT
August 9, 2013
INTRODUCTION
DMC VISION, GOAL AND OBJECTIVES
DMC OVERVIEW
DMC MISSION STATEMENT & OBJECTIVES
The Destination Medical Center (DMC) is a strategic initiative. The success of this project depends not only on the public investment, but also on
the ability of the DMCC and its stakeholders to plan and execute a comprehensive strategy that will attract more than $5 billion of private
investment to the market.
DMC Mission Statement:
To secure Rochester’s and Minnesota’s status as the world’s premiere destination medical center to attract and retain patients, visitors,
employees, residents and businesses within the region and throughout the State of Minnesota.
DMC Objectives:
To make strategic public investments to support the extraordinary costs associated with sustaining Rochester as a global medical destination
To leverage the public investment to attract more than $5 billion in private investment by Mayo Clinic and other private investors in Rochester
To create approximately 35,000 – 45,000 new jobs
To generate approximately $7 - $8 billion in fiscal impacts over the 35 year period for Rochester and the entire State of Minnesota
To achieve the highest quality patient, companion, visitor, employee, and resident experience, now and in the future
2
INTRODUCTION
DMC VISION, GOAL AND OBJECTIVES
DMC OVERVIEW
THE MODEL – PRIVATE INVESTMENT LEADS PUBLIC INVESTMENT
The most innovative element of the DMC public investment strategy is that private investment and proven economic growth leads the public
investment. The DMC legislation requires the private sector to make a $200 million threshold investment to activate the program. On-going private
investment is required to secure the $585 million in public investment over a 20 year period.
Private Investment $5.0 - $5.5 Billion New Jobs 35,000 – 45,000
Public Infrastructure Investment
TAXES and
FISCAL
IMPACT
NEW
STATE TAXES
$7.8B – $8.2B
(New Over 35 YRS)
$200 M
THRESHOLD
PRIVATE
INVESTMENT
(BASED ON A PROPORTION
OF PRIVATE INVESTMENT)
3
Competition for destination medical patients has grown significantly in the last 20 years. The DMC will position Rochester to remain competitive
in the global healthcare environment.
“Globalization is a major factor in expansion. Since 2009, more than 300 health care facilities in more than 39 countries had
attained U.S. accreditation…. U.S. medical institutions have capitalized on the global health care model by developing
partnerships with foreign hospitals.”
- American Medical Association, “Health Care Trends 2010 – 2012”
DMC OVERVIEW
THE EMERGENCE OF GLOBAL DESTINATION MEDICAL CENTERS
4
INTRODUCTION
DMC VISION, GOAL AND OBJECTIVES
DMC OVERVIEW
KEYS TO SUCCESS
The DMC is one of the largest and most complex economic development initiatives ever undertaken in the State of Minnesota or in the United
States. It establishes a long-term public-private partnership that will require a comprehensive strategy to be executed over a 20 year period. During
the legislative process, certain key strategies became the backbone of the legislation that was put in place. They included:
A Vision – A community development plan (Development Plan) must be established. This will be a complex undertaking to weave
together the interests of the City, State, County, Mayo Clinic and the broader Rochester and Southeast Minnesota region in a manner that
maximizes the opportunity for private investment in the region.
A Transformation – Destinations do not materialize, they are planned. The $585 million in public investment is a key component of this
strategy but not the only piece of the puzzle. To be successful, the DMC will require a comprehensive strategy that includes marketing,
business development, finance, project oversight, community engagement and communications. Our goal is not to simply spend $585
million, but to leverage that public investment to achieve an additional $5 billion plus in private investment over time.
A Public-Private Partnership - The DMC legislation creates the Destination Medical Center Corporation (DMCC), a public-private
partnership designed to bring the major stakeholders of the project together to approve the DMC Development Plan and the
implementation strategies, including the targeted investment of public funds to maximize the private investment and the potential tax return
to the State and local jurisdictions.
An Entity to Focus On Execution - The legislation mandates a non-profit, Economic Development Agency (EDA) with the sole purpose
of assisting in the planning and execution of DMC strategies. The EDA will provide expertise in planning and executing this complex, multi-
billion dollar development strategy.
5
DMC IMPACTS
DMC IMPACTS
ESTIMATED ECONOMIC-FISCAL IMPACT
The $585 public investment will be used to support the costs required to drive visitation, support employment growth and create the public
anchors and infrastructure necessary for a global destination medical center. Importantly, the public investment is not requested as an upfront,
lump sum payment, but instead will be funded over time through a state aid formula that is contingent upon on-going private investment in the
market. The chart below shows the estimated cumulative public and private investment model over the 20 year period.
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
Mi
l
l
i
o
n
s
$10
Private
Investment
$1
Public
Investment
APPROXIMATE INVESTMENT RATIO
:
$585 Million
EST. PUBLIC INVESTMENT
Est. Cumulative Investments – 20 Years
EST. PRIVATE
INVESTMENT
$2.1 B
EST. MAYO
CLINIC
INVESTMENT
$3.5 B
EST. PUBLIC
INVESTMENTS
$585 M
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
7
The DMC public finance model is based on a state aid formula that requires incremental private investment to be made prior to the release of
additional public funds to support the growth of Rochester. The following estimates the economic-fiscal impacts that will result from this growth
and demonstrates the estimated return on investment to the public sector over time.
2016 - Next Biennium
Funding Becomes
Available After $200 M
Threshold Investment
DMC
Maximum
State Aid
DMC IMPACTS
ESTIMATED ECONOMIC-FISCAL IMPACT
35
Years
DMC
Expires
20 Year
Target
Investment
Horizon
8
DMC New Taxes
$7.8 - $8.2 billion
•Personal Income Tax
•Sales and Use Tax
•Corporate Franchise Tax
•Property Tax
DMC
INVESTMENTS
MEDICAL CENTER
•Hospital Facilities
•Clinical Facilities
•Lab Space
•Biomedical Facilities
•Mayo Support Facilities
PROGRAM
DMC DEVELOPMENT (CORE DISTRICTS)
•Health & Wellness
•Commercial, Research & Technology
•Retail, Dining & Entertainment
•Hotel & Hospitality
•Liveable City (Urban Residential /
Neighborhoods)
•Learning Environment & Education
•Sports & Recreation
•Civic, Arts & Cultural Facilities
INVESTMENT
DMC
LEGISLATION
PUBLIC
INVESTMENT
($585 Million)
MAYO CLINIC
INVESTMENT
($3.5 Billion)
PRIVATE
INVESTMENT
($2.1 Billion)
EXAMPLES
Hospital
Expansions
Clinical
Facilities
Intermodal/
Transportation
Site
Preparation
Public
Infrastructure
Research/
Technology
Urban Retail Hospitality
Medical
Innovation
INFRASTRUCTURE
(See Detailed “Project” Definition on Page 26)
•Demolition, Repair or Rehab of Buildings
•Remediate Land & Buildings
•Public Infrastructure
•Land Acquisition & Assembly
•Parking & Transportation Facilities
•Community Infrastructure for Economic
Development
•Site & Infrastructure Improvements
•Site Preparation
DMC INVESTMENT SUMMARY
EXAMPLES OF DMC PROJECTS & INVESTMENTS
The following summarizes the types of projects and investments that are anticipated to occur as a result of the DMC initiative.
10
As part of the legislative process, Mayo Clinic and the City of Rochester developed an infrastructure master plan to demonstrate the type of
projects that may be supported by DMC funding. This document was used for illustrative purposes only, and highlights the demand for
infrastructure required to support the destination. The plan illustrates that the City estimates $1.4 billion in infrastructure demand over the next
20 years. A City the size of Rochester cannot support this level of investment on its own. As a result, the DMC funding was provided by the
State of Minnesota to fill a portion of the gap created by the “extraordinary costs” required to sustain Rochester as a global destination.
Infrastructure Element
Order of Magnitude
Cost Estimate
(in millions)
Funding Sources (in millions)
City CIP
Other
Sources Federal Hotel Tax
Non-DMC
Sales Tax
MinDOT
Turnback
Tax
Abatement DMC Funds
Transportation
Regional Transportation $72 $47 $25
Downtown Streets and Sidewalks $92 $60 $8 $24
Gateway Streets $75 $32 $26 $17
6th Street Bridge Over Zumbro River $6 $6
Subways and Skyways $19 $19
Transportation Subtotal $264 $92 $55 $26 $91
Transit
Bus System Upgrade $29 $29
Streetcar Circulation $471 $52 $100 $236 $83
BRT $70 $9 $35 $26
Intermodal Station $50 $50
Transit Subtotal $620 $90 $100 $271 $159
Public Utilities
District Utility Upgrades/ Relocation $63 $63
Relocate Overhead Utilities Underground $13 $13
Sanitary and Storm Sewer Trunk Lines $25 $25
Public Utilities Subtotal $101 $101
Public Spaces
Public Spaces $68 $36 $4 $28
Green Corridors $6 $6
Riverwalk Extension $13 $13
Trails $6 $6
Public Spaces Subtotal $93 $42 $4 $47
Parcel Development
Demolition $18 $18
Environmental $15 $15
Stormwater Management $9 $9
Land Acquisition and Assembly $66 $10 $56
Parcel Development Subtotal $108 $10 $98
Parking
Parking Structures $110 $40 $70
Parking Subtotal $110 $40 $70
Civic Uses
Mayo Civic Center $106 $24 $37 $45
Parks, Recreational Areas $6 $6
Other Civic Uses $56 $35 $2 $19
Civic Uses $168 $65 $37 $45 $2 $19
Totals $1,464 $339 $137 $271 $45 $55 $26 $6 $585
DMC INVESTMENT SUMMARY
SUMMARY OF DMC INFRASTRUCTURE MASTER PLAN
11
LEGISLATIVE
OVERVIEW
Realization of the DMC Vision and objectives will require a comprehensive business strategy and organizational structure to be put in place to guide
the project over the next 20 years. To accomplish this, the DMC legislation provided for certain entities and processes to establish a strategic and
comprehensive plan to guide investment decisions going forward. A summary of the legislation is provided below.
The DMC law authorizes state, city and county funding totaling $585 million for approved public infrastructure project costs over a 20-year period.
The DMC legislation recognizes two new entities – the Destination Medical Center Corporation, incorporated by the City as a public nonprofit
corporation, and the Economic Development Agency, incorporated by Mayo Clinic as a private nonprofit corporation. The two entities will work
together to drive the planning and implementation of the process, and they will work closely with the City of Rochester (City), Olmsted County
(County) and the greater Rochester community on the execution of plans and strategies. Their specific purposes and functions are:
The Destination Medical Center Corporation (DMCC): a public nonprofit corporation, the purpose of which is to oversee the
development, planning and implementation of DMC strategies. The DMCC’s board is structured to provide the primary stakeholders
representation in key decisions related to planning, strategies and investments of the DMC.
Primary functions of the DMCC Board:
Approve the Development Plan
Approve public funding applications for specific projects
Provide oversight of the DMC initiative on behalf of the State of Minnesota and its citizens
Contract with the EDA to provide specified services related to the Development Plan and marketing of the DMC.
DMCC Board of Directors:
Four (4) appointees by the governor – Mr. James Campbell, Ms. Tina Flint Smith, Ms. Susan Rani, & The Honorable R.T. Rybak
Two (2) by the City – The Honorable Ardell Brede, & Councilman Ed Hruska
One (1) by Olmsted County – Commissioner and County Board Chairman Jim Bier
One (1) by Mayo Clinic – Mr. William George
13
LEGISLATIVE OVERVIEW
SUMMARY OF LEGISLATION
14
The Economic Development Agency (EDA): is a private nonprofit corporation, the purpose of which is to provide services to
the DMCC board to develop, plan and implement the DMC strategies. Under statute, Mayo Clinic will incorporate the entity, made up of a
Board of Directors which will include members of the medical community, the City and the County. The EDA services and related costs will
be approved by the DMCC board and managed through a contract between the DMCC and EDA.
Primary Functions of the EDA:
The EDA will contract with the DMCC to provide services for the purpose of developing and marketing the DMC, including:
Facilitating private investment through development of a comprehensive marketing program to global interests;
Developing and updating the criteria for evaluating and underwriting development proposals;
Drafting and implementing the development plan, including soliciting and evaluating proposals for development and evaluating and
making recommendations to the DMCC board and the City regarding those proposals;
Providing transactional services in connection with approved projects;
Developing patient, visitor, and community outreach programs for a destination medical center development district;
W orking with the corporation to acquire and facilitate the sale, lease, or other transactions involving land and real property;
Seeking financial support for the corporation, the city, and a project;
Partnering with other development agencies and organizations, the City, and the County in joint efforts to promote economic
development and establish a destination medical center;
Supporting and administering the planning and development activities required to implement the development plan;
Preparing and supporting the marketing and promotion of the medical center development district;
Preparing and implementing a program for community and public relations in support of the medical center development district;
Assisting the corporation or city and others in applications for federal grants, tax credits, and other sources of funding to aid both
private and public development;
Making other general advisory recommendations to the DMCC and the City, as requested.
EDA Board of Directors:
Mayo Clinic is in the process of finalizing the structure for the EDA Board of Directors.
LEGISLATIVE OVERVIEW
SUMMARY OF LEGISLATION
ECONOMIC DEVELOPMENT
AGENCY (“EDA”)
This role of the EDA is to serve as staff to the DMCC to facilitate planning and the execution of the DMC strategies. A summary of the thirteen
primary functions of the DMCC are included below. The detailed description of these functions is included on the preceding page.
ASSIST IN PURSUING
GRANTS OR FUNDING
APPLICATIONS
FACILIATE
PRIVATE INVESTMENT SOLICIT & EVALUATE
PROJECT PLANS / MAKE
RECOMMENDATIONS
TO DMCC / CITY PROVIDE
TRANSACTIONAL
SERVICES
PARTNER WITH OTHER
AGENCIES TO PROMOTE
ECONOMIC
DEVELOPMENT/DMC
SEEK FINANCIAL
SUPPORT FOR DMC
ORGS OR PROJECTS
ACQUIRE & FACILIATE
THE SALER OR LEASE OF
LAND FOR PROJECTS
SUPPORT &
ADMINISTRER PLANNING
TO IMPLEMENT THE
DEVELOPMENT PLAN
PREPARE & IMPLEMENT
PROGRAMS FOR
COMMUNITY & PUBLIC
RELATIONS MARKET & PROMOTE
ROCHESTER & THE DMC
ACT AS AN ADVISOR TO
THE CITY & DMCC
DEVELOP PATIENT,
VISITOR & COMMUNITY
OUTREACH PROGRAMS
DEVELOP & UPDATE
DMC UNDERWRITING
CRITERIA
DRAFT &
IMPLEMENT THE
DMC DEVELOPMENT
PLAN
22
LEGISLATIVE OVERVIEW
SUMMARY OF LEGISLATION
STAKEHOLDER ROLES. In addition to participation in the entities that are charged with executing the DMC, the primary stakeholders of the DMC will
perform on-going functions to advance the DMC Development Plan and strategies. These are outlined below.
State of Minnesota
Appoints the majority of DMCC board members
Approves and funds state aid payments through its budget process to support state portion DMC General Aid Funding
DEED certification of private investment required prior to funding of state aid payments
State will monitor DMC progress through annual reports provided to it by DMCC
Mayo Clinic
Appoints a member to the DMCC board
Appoints the EDA Board and remains involved to help guide strategic initiatives of DMC
Primary driver of private investment, visitation and employment in the market
City of Rochester
Incorporates the DMCC, Appoints two members to the DMCC board
Works with the DMCC, EDA and Olmsted County to establish the DMC Development Plan and identify Projects
Approves the Development Plan and project funding requests after DMCC approval
In coordination with DMCC, EDA and Olmsted County, City will perform the following services:
City Planning: Completes City Comprehensive Plan, identifies local infrastructure projects
Project Management, Maintenance & Operations: Oversees construction, maintenance and operations of approved public works projects
Projects Entitlements: Reviews and approves project for entitlement purposes in accordance with the City’s established process
Public Finance: Issues all bonds and PAYGO notes for DMC project financings
Olmsted County
Appoints a member to the DMCC board
Collaborates with DMCC, EDA and City to plan for, and identify, regional transportation projects to support DMC
Executes the strategies related to approved regional public works and/or transit projects
Responsible for approving and implementing a sales tax levy to pay for the local share of transportation projects
16
LEGISLATIVE OVERVIEW
SUMMARY OF LEGISLATION
The DMC law authorizes state, city and county funding totaling $585 million for public infrastructure projects over a 20 year period
A development plan (“Development Plan”) will be established by the EDA and approved by the DMCC board and the City that will, among other
things, establish the overall objectives, strategies and targeted funding for the DMC project. One or more Development Districts will be created as
part of the Development Plan that will define the boundaries within which expenditures may be made.
Project funding will be made available after the following, threshold investments are made by the private sector:
An initial $200 million is made by Mayo Clinic, anywhere within Rochester, and the private sector, within a defined Development District.
Investments made after June 31, 2013 will be counted. Investments will be reported to the DMCC and certified through DEED.
On-going investments by Mayo Clinic and the private sector, which will be certified through DEED on an annual basis.
"Public Infrastructure Projects“ include project(s) that are financed in part or in whole with public money under the Development Plan:
Acquire real property and other assets associated with the real property;
Demolish, repair, or rehabilitate buildings;
Remediate land and buildings as required to prepare the property for acquisition or development;
Install, construct, or reconstruct elements of public infrastructure required to support the overall development of the destination medical
center development district including, but not limited to, streets, roadways, utilities systems and related facilities, utility relocations and
replacements, network and communication systems, streetscape improvements, drainage systems, sewer and water systems, subgrade
structures and associated improvements, landscaping, façade construction and restoration, wayfinding and signage, and other
components of community infrastructure;
Acquire, construct or reconstruct, and equip parking facilities and other facilities to encourage intermodal transportation and public transit;
install, construct or reconstruct, furnish, and equip parks, cultural, and recreational facilities, facilities to promote tourism and hospitality,
conferencing and conventions, broadcast and related multimedia infrastructure;
Make related site improvements including, without limitation, excavation, earth retention, soil stabilization and correction, and site
improvements to support the destination medical center development district;
Prepare land for private development and to sell or lease land;
Costs of providing relocation benefits to occupants of acquired properties;
Construct and equip all or a portion of one or more suitable structures on land owned by the city for sale or lease to private development;
provided, however, that the portion of any structure directly financed by the city as a public infrastructure project must not be sold or leased
to a medical business entity.
17
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