HomeMy WebLinkAbout9/26/2013 DMCC Board Meeting - Agenda and Meeting PacketDESTINATION MEDICAL CENTER CORPORATION
BOARD OF DIRECTORS
MEETING AGENDA
SEPTEMBER 26, 2013; MEETING NO 3; 9:00AM -12:00 PM
1. APPROVAL OF CONSENT AGENDA
• Approve meeting minutes from August 9, 2013 and September 20, 2013
2. CHAIRS REPORT
• Update on outside Legal Counsel
3. REPORT FROM ECONOMIC DEVELOPMENT AGENCY
• Dr. Patricia Simmons from Mayo Clinic to update on formation of Economic Development
Agency
4. DISCUSSION/ ACTION ITEMS
• Overview of Development Plan
• Approval of Resolution authorizing Board Chair to negotiate for Destination Medical Services
with the Economic Development Agency for final approval by the Board
• Approval of Resolution authorizing Board Chair to negotiate an operating services contract
with the City of Rochester for final approval by the Board
5. OTHER BUSINESS
• Approve DMCC Board meeting schedule through 2014
• Appointment of Secretary to DMCC
(Unapproved)
DESTINATION MEDICAL CENTER CORPORATION
BOARD MEETING
Meeting No. 1 August9, 2013
Governor Mark Dayton called the meeting to order at 2:00 PM in the Mayo Civic Center
Ballroom at 30 Civic Center Drive SE, Rochester, Minnesota. Members Present: James V.
Bier, Ardell F. Brede, James R. Campbel l, William George, Ed Hruska, Susan Park Rani, and
Tina Smith. Absent: R.T. Rybak.
Governor Dayton expressed what a momentous day this is for Rochester and the entire State of
Minnesota and also his gratitude to Dr. Noseworthy and the leadership of the Mayo Clinic for
giving the State this phenomenal opportunity. He also th anked the leadership on the public side
who assisted the State in taking advantage of this great opportunity and the legislators, both
DFL and Republican, that worked to make this project a reality. It was a bipartisan bill. Also
th anks to his Chief of Staff, Tina Smith who was instru mental in the legislative process and in
pulling all this together. Governor Dayton thanked the Mayor and County Board Chairman and
others present that assisted in getting this project approved and all those members of the public
that supported the passage of this legislation.
The Governor noted that he first came to Mayo Clinic in 1954 when his little sister had her eyes
corrected at Mayo. This gave her good vision for life and it that taught him from the beginning
how important Mayo Clinic was for Roch ester and Minnesota and what an enormous difference
it makes in people's lives and how Mayo Clinic is known throughout the world. He recalled that
when he was in the US Senate he was in Ah man, Jordan and the Foreign Minister was in
attendance. Senator Dayton noted that he was from Minnesota and asked if he ever heard of it.
The Foreign Minister, with a big smile, responded that he had spent several months in
Rochester and that the Mayo Clinic had cured his father of cancer. That is the kind of good will
to build throughout the world and that is why this project is so important in Rochester and so
important for Minnesota. Mayo Clinic makes an enormous di fference throughout the world. It is
important that this pre-eminence of Mayo Clinic for health care continues and that it conti nues in
Rochester, Minnesota. We will look back 20 years from now and whatever our scope of vision or
imagination about the importance of this project and its importance for Minnesota and it will
have been underestimated. The importance of this project and of Mayo Clinic is incalcuable
and I again want to thank Mayo for giving this great opportunity to the State.
Mayor Ardell F. Brede welcomed everyone present to this historic occasion of the first meeting
of the Destination Medical Center Corporation (DMCC). Mayor Brede's Statement: Rochester is
Minnesota's third largest city and a city of the First Class under State Statutes with a population
of close to 110,000. Roch ester is listed frequently in national publications as one of the most
livable, best place to raise children, best place to grow old, best place to start a business, etc.
It's a great City due to the wonderful people that live here, many whom are in this audience
today. Governor Dayton, thank you for your leadership and your commitment to this initiative
and not the least, thank you for assigni ng your Chief of Staff, Tina Smith, to the project. She
greatly assisted in shepherding this initiative through the legislati ve process. To my colleagues
on the DMCC, thank you for your willingness to serve, this is an awesome collection of
individuals with a lot of expertise and I look forward to working with all of you. I want to thank
our legis lat ors for passing the biggest single economic development legislation for our state and
perhaps for our nation in one session. A special thanks to all our local legislators and especially
to the lead bill authors, Representative Kim Norton and Senator Dave Senjem. DMC is a plan
to secure Minnesota's, not only Rochester's, status as a global medical destination and in
partnership with our friends at Mayo Clinic and with multiple community partners we will create
unparalleled and meaningful experiences of hope, health and hospitality for every person every
day. Dr. Charlie Mayo, Brother of Will, said: "There is no fun like work". So the fun starts now,
thank you and welcome.
Jim Bier, Olmsted County Board of Commissioners Chairman, stated he is proud and honored
to be on this board. It's an exciting time for Rochester and Olmsted County. We have a great
workforce here and we would like to get th ings going. He agrees with the Mayor to get the fun
started. He would like to thank Kim Norton and Dave Senjem for their work in getting this
through the legislature.
Governor Dayton also recognized Senator Carla Nelson and Representative Tina Liebling as
being very actively in volved in the legislation action and thanked them for their assistance.
Dr. John Noseworthy, President and CEO of Mayo Clinic, Statement: Governor Dayton, Mr.
Mayor, Mr. Chairman, Distinguished Members of the DMCC Board and members of the public,
it's an honor to be with you today. On behalf of the Mayo Clinic family, welcome to the home of
the Mayo Clinic. I would like to reflect for a moment on history. One hundred and fifty years ago,
this summer, Dr. William Mayo accepted an appointment from President Abraham Lincoln to
serve as the examining surgeon for the Union Army in Rochester, MN. Dr. Mayo and his wife ,
Louise, were seasoned travelers and lived in many places and traveled the world. They chose
to make Rochester, MN their home and practice here because of the strong civic life , commerce
and transportation. Dr. Mayo was very involved in civic life. He served as Mayor, in the State
Legislature and other community positions and advocated for many community projects. The
Statue of him in Mayo Family Park shows him in a frock coat, not a surgical gown. Many have
been to the Plummer Building and seen the historic exhibits. The Mayo's, Father and brothers,
received many honors from around the world, but have you noticed the bronze recognition
plaque that is mounted outside the Library, where the Mayo Staff met year after year, decade
after decade and indeed where the Nobel Prize was first announced. This bronze and most
treasured plaque is from the Olmsted County Business Association for citizenship and
community spirit. All of us who have fol lowed in Dr. Mayo's and his sons footsteps appreciate
that the vitality of Mayo Clinic and our community is intrinsically linked, our destinies go
together. It's on this foundation that we move forward on this next great adventure. Welcome to
you Governor Dayton, Mayor Brede, Cha irman Bier, members of the Board and to the public
gathered here today and thank you all.
Governor Dayton asked each Board Member to introduce themselves and comment on
whatever else they would like to share.
Jim Campbell, Retired, Group Executive VP of Wells Fargo and Co. Mr. Campbell stated he
was born at St. Mary's Hospital. He grew up in Byron, MN and graduated there with his wife.
He spent thirty-eight years with what is now Wells Fargo and retired eleven years ago. He has
been involved in many public and private sectors in Minnesota. He is honored to have been
asked to be a part of this Board and is looking forward to being involved in this fantastic
opportunity here in Rochester.
Bill George, Professor of Management Practices, Harvard Business School. Mr. George stated
he was born in Michigan and came to Minnesota in 1970. He has been involved in the
Minnesota Medical Community for several decades and recently has served on the Mayo
Planning Board of Directors as a public trustee. He has served as the CEO of Medtronic, Inc. for
ten years in the Twin Cities and is now a Professor at Harvard Business School. He is excited
about this project and thinks Mayo Clinic is a National treasure and a great job creator for all of
Olmsted County. He stated these are well paying jobs, not minimum wage, and offer strong
benefits with longevity in these positions. His hope is that this project will link Rochester and the
Twin Cities more closely together to enhance the medical community between those two
economic areas. He feels with Mayo Clinic as the crown jewel of the State, that Minnesota will
become a health care mecca, not only for the nation but for the world. He feels people will come
also for the many opportunities besides health care.
Ed Hruska, Rochester City Council member for 10 years and was born and raised in Rochester,
MN. He is Executive Director of the Rochester Amateur Sports Commiss ion which focuses on
economic development and growth to help bring people to Rochester through sports. He
appreciates all the support that helped bring the DMC to Rochester. Mayo Clinic is the life-blood
of the community and he is looking forward to the future to see what positive things can be
accomplished through Health care development and the DMC. He is honored to be working
with this group of distinguished leaders and thanked everyone for their support.
Susan Park Rani, Founder of Rani Engineering, was born in Seoul, South Korea. Ms. Rani
stated she is del ighted to be included as part of this exciting initiative that combines research,
development, education and the wonderful health and job development opportunities associated
with Mayo Clinic, the State and Rochester. She came to the United States when she was
eleven years old. She spoke no English, never held a fork or slept on a bed. She graduated
eleven years later from the University of MN. She had received a scholarship from various
agencies and is proud to say it has been paid back. She is excited to be a part of this venture
for a world destination health program.
Jim Bier, Chairman for the Olmsted County Board of Commissioners. Mr. Bier stated he was
born in Wisconsin but has lived in Rochester since 1979. He feels the County, City and State
have a great opportunity here and that many other places would love to trade places with us. He
is deeply invested in this opportunity and feels it will be good for the community and jobs. He is
excited to be a part of this and thanked everyone invol ved in making it happen.
Ardell F. Brede, Mayor of the City of Rochester. Mayor Brede stated it's an honor to be a part of
this prestigious group on the Board. Mayor Brede stated he is very supportive of the University
of MN and every other year the University Marching Band comes to the Mayo Civic Center
facil ity. He stated that he worked at Mayo Clinic for 43 years and has been the Rochester Mayor
for eleven years. He is honored to represent the City of Rochester and it's a joy to be here for
this endeavor. He welcomed everyone.
Tina Smith, Chief of Staff to Governor Mark Dayton and Lt. Governor Yvonne Prettner Solon.
Ms. Smith thanked Governor Dayton for appointing her to this position and is very excited to
continue the work started by the City of Rochester and Mayo Clinic. She stated that as a proud
member of the Executive Branch of the State Government and working for Governor Dayton her
work involves the implementation of legislation and programs. Ms. Smith wanted to
acknowledge the colleagues with the City of Rochester especially Gary Neumann (Assistant
City Administrator) who has helped with the whole development of the legislation and even now
with helping to put the inaugural meeti ng together. She also wanted to thank the staff and
leaders at the Mayo Clinic especially Lisa Clarke (Mayo Clinic Administrator) who has helped
keep the ball moving forward for the city and the clinic. Ms. Smith also thanked her Board
colleagues.
Dr. John Noseworthy stated Mayo Clinic is completely committed to the strategic planning
process for the DMC and the partnership between the City, County and State. Mayo Clinic
intends to invest more than three and a half billion dollars over the next twenty years and will
work with other stake holders to attract an additional two billions dollars in private investment for
Rochester. Dr. Noseworthy stated that the Mayo Clinic has a powerful brand in medicine but it
can't take anything for granted in this competitive age. Health Care is under attack for being too
expensive and too inefficient. Americans spend too much money and struggle with medical bills
because there is not an adequate, highly efficient health care system and the Mayo Clinic is
leading the charge to change this. He stated the purpose or primary value of the Mayo Clinic is
that the needs of the patient come first. Every decision made is for the betterment of the patient.
He stated that they invest heavily in research and education for efficient care, safer care, higher
quality care, and cutting edge care for patients and staff. The staff is the most precious resource
and could not be successful in their work without the best health care staff. The cost of health
care and research is going up and all of us struggle with this cost. Dr. Noseworthy presented a
report showing patient care now and for the future and the how the Mayo Clinic plans to
continue give the best care possible to all that come to the clinic for their health care needs. He
stated that the Mayo Clinic strategy is to build information knowl edge management systems. To
take what Mayo Clinic knows about what is best for medical research practice and to share it
with oth ers that want to work with the Clinic. The Clinic is building a network around the country
and internatio nally to share what Mayo Clinic knows so that people and the families everywhere
will have access to that knowledge for the best possible health care. He sh owed there are
twenty centers around the United States, Mexico City and Puerto Rico that have the highest,
safest and quality hospital syst ems in America that are part of the Mayo Clinic care network. He
presented a picture of a message written in chalk on the sidewalk outside of the Gonda Building
saying "thank you Mayo for saving my Mom-Phil". This is a sign and symbol of the warm
hospitality and care that is received from Rochester and the Clinic.
Dr. Bradley Narr, Medical Director for the DMC, stated that the DMC project itself is an
economic development initiative for the State of Minnesota. It will be the responsibility of this
Board to allocate the public resources that the Legislation has created. The Board is also
responsible for the attraction of billions of dollars from the private investments.
Lisa Clarke, Administrator for the DMC. Ms. Clarke acknowledged and thanked all those that
have supported this project. She explained how the DMCC will con nect with the Economic
Development Agency to fully execute the DMC Plan. The EDA is a group that the DMCC will
contract with to provide services for the purpose of developing and marketing the DMC.
The Primary Functions of the EDA are as follows:
• Facilitating private investment through development of a comprehensive marketing
program to global interest.
• 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 recommendation 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.
• Working 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, requ ired 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.
Ms. Clarke explained how the process will move forwa rd. The DMCC Board will work with the
EDA, then the EDA will plan strategies, coordinate with the City and the County and facilitate
projects. The Development Plan is key to the success of the DMC. From the Development Plan
will result public and private Projects. Project funding requests made for DMC funds will be
approved by the DMCC and the City of Rochester. Public funding will start when the State
confirms the private investments have been made, the City issues the Bonds and the County
provides the transit funding.She stated that behind the DMCC and the EDA there will be a
Comprehensive Work Plan. This will show the organization, administration, finance and funding,
development plans, business planning, and community outreach. The Mayo Clinic is working
now on structuring the EDA so there is confidence in the group behind the DMCC to move
forward. She also presented the Vision Statement for the DMC: Together we will provide
meaningful and unparalleled experiences of hope, health and hospitality for very person every
day.
Senator Dayton asked the Board to nominate one of his four appointees for Chairperson of the
Board.
Mayor Brede moved, Jim Bier seconded to nominate Tina Smith for the Chair of the DMCC.
Ayes (7 ), Nays (0 ). Motion carried.
Governor Dayton stated, "that the Board has selected an outstanding Chair and a phenomenal
public servant." He knows from his experience working with Tina Smith as his Chief of Staff that
she has terrific integrity, intelligence, and skills that she developed working both in the private
and public sectors. Mayor, I agree with you on getting high speed rail to Rochester even more
now, so that Tina can more easily do both jobs.
Chairperson Smith accepted the position. She noted that we all feel the accountability for the
DMCC to an open process that is inclusive of the community and we have several communities
that we have to keep in mind, certainly the residents of Rochester and Olmsted County and the
State of Minnesota, which is another important part of our community.
Chairperson Smith asked Terry Adkins, the City Attorney for his advice for what the Board
process should be to consider retaining legal counsel. Mr. Adkins su ggested the Board working
with the staff could prepare a request for proposals seeking independent l egal counsel. The
RFP could use several examples throughout the state that have similar authorities. The
proposals received could be presented to the Board for their action.
James Campbell thanked the City Attorney's office and the City for putting together the Articles
of Incorporation and By-laws for the Board's review. He was asked to serve on the Board by the
Governor to represent the citizens of Minnesota and his perspective is that he wants to look at
these documents broadly to ensure that the Board's actions are appropriate and consistent with
the purpose of the DMC legislation. He stated he is in support of retaining outside legal counsel
for the Board's represen tation. He would like the first order of busin ess for the legal counsel to
be to review the City's Articles and By-laws and propose any amendments to ensure that what
we live by in the governance process is consistent with the intent of the DMC legislation.
James Campbell moved, Bill George seconded, to authorize Chairperson Smith to retain
outside legal counsel through an RFP process.
Bill George wanted to clarify that it is his understand ing that all of the Board members are public
officials and are all here representing the State of Minnesota even though they were appointed
in different ways. He asked if this is the correct understanding. He mentioned that it is his
understanding that, even though in his case he was appointed by Mayo Clinic, his fiduciary
obl igation is to the State and not to Mayo and that the same would apply to Rochester. The
Chair indicated that it was also her understanding that they all represent the State.
Ayes (7), Nays (0 ). Motion carried.
Chairperson Smith emphasized that the first order of business for the legal counsel would be
the review of the Articles and Bylaws and noted the importance of these documents as the
foundation for the Board as it moves forward. Chairperson Smith will follow through with the
RFP process and communicate with the Board for the timeline to be presented and emphasize
the importance of the independent counsel to address the Articles of Incorporation and By-Laws
and suggest any changes to consider.
Chairperson Smith opened the floor for discussion regarding the process/timing for drafting
policies and procedures.
James Bier feels the Board needs legal counsel before proceeding with this topic. There was a
consensus to wait for legal counsel.
Terry Adkins, City Attorney, presented an overview of the Open Meetings Law for the State of
Minnesota. Mr. Adkins stated that when the legislature passed the DMC law, the legislation
provided that this Board was subject to the Open Records and Open Meetings Law. A public
document is anything that is created, received, disseminated by any state agency or local
government unit which includes this DMCC Board. He explained what "records" mean. It
means that any correspondence between this board and anyone else is considered public data
unl ess it is from your legal counsel. He also explained details of timeline for data requests and
the cost of materials provided and what is exempt from public disclosure.
City Attorney Adkins stated that all meetings of the DMCC Board are open to the public. This
means at least a 72 hour notice prior to the meeting unless there is a regularly scheduled
meeting agenda publ ished . He explained that the Board is considered a state agency and can
conduct a telephone conference call and explained the details of conducting that type of
meeting. A quorum of six is considered a meeting of the DMCC Board. He warned that public
data includes email correspondence. He advised the Board to avoid "replying to all" when
discussing issues by email. He explained what the open meetings law does not require for the
Board.
Chairperson Smith opened the floor to discuss a meeting schedule. The general conse nsus was
that until there is feedback from the EDA and a legal counsel has been appointed there is not
much work to do until that foundation is completed so there would be no need for a regular
meeting schedule at this time. Chairperson Smith will proceed with the legal counsel RFP and
report back to the Board to possibly set a meeting for the end of September.
Jim Biers moved, Bill George seconded to adjourn. The time was 3:20 PM.
Valeri Langseth, Deputy City Clerk
City of Rochester
(unapproved)
DESTINATION MEDICAL CENTER CORPORATION
SPECIAL BOARD MEETING TO APPOINT COUNSEL
Meeting No.2 September 20, 2013
Members Chairperson Tina Smith, James Bier, James Campbell, William George,
Present: RT Rybak, Susan Park Rani
Members
Absent: Ardell Brede, Ed Hruska
Guests: Terry Atkins, Lynette Slater Crandall, Public and Press
Chairperson Smith called the meeting to order at 1:30 P.M.
Legal Counsel for DMCC
Chairperson Smith moved , Boardmember George seconded, to adopt Resolution No. 01-13
approving the appointment of McGrann Shea Carnival Staughn & Lamb to act as legal counsel
for the Corporation. The resolution so stated below:
RESOLUTION NO. 01-13
WHEREAS, Minnesota Statutes Section 469.40 et seq., provides for the Destination Medical Center; and
WHEREAS, pursuant to Minn. Stat. §469.41, the City of Rochester has established the Destination Medical
Center Corporation and the appropriate entities have made the required appointments to the Corporation's
Board of Directors; and,
WHEREAS, Minn. Stat. §469.41, subd. 12 states that the Corporation may contract for services and
consultants, including legal counsel; and,
WHEREAS, the Chair of the Board of Directors has caused a request for proposals to be published seeking
proposals from interested law firms to act as the Corporation's legal counsel and has assembled a group of
stakeiJO/ders to interview those law firms which submitted proposals; and,
WHEREAS, following the interview process, the Chair and the interview team unanimously recommend the
retention of the McGrann Shea Carnival Staughn & Lamb law firm of Minneapolis, Minnesota, to act as the
legal counsel for the Corporation.
NOW, THEREFORE BE IT RESOLVED, that the Board of Directors of the Destination Medical
Center Corporation does hereby accept the Chair's and interview team's recommendation and, pursuant to
Minn. Stat. §469.41, subd. 12, does hereby approve the appointment of the McGrann Shea Carnival
Staughn & Lamb Jaw firm of Minneapolis, Minnesota, to act as the legal counsel for the Corporation.
BE IT FURTHER RESOLVED that the Board Chair is authorized to execute any agreement needed
to implement this resolution.
PASSED AND ADOPTED BY THE BOARD OF DIRECTORS OF THE DESTINATION MEDICAL
CENTER CORPORATION THIS _ DAY OF SEPTEMBER, 2013.
Tina Smith, Chair
Destination Medical Center Corporation
Chairperson Smith thanked Terry Atkins, City Attorney of Rochester; Lynette Slater Crandall,
Dorsey & Whitney; and Peter Dugan, on behalf of Susan Park Rani, for participating in the
inteNiew process. Four Minnesota firms were inteNiewed for the position.
Chairperson Smith said McGrann Shea Carnival Staughn & Lamb have a distinguished and unique
portfolio having worked extensively with public authorities, nonprofits, and open meeting laws.
They have worked on complex economic developments including the Minnesota ballpark and the
Midtown Exchange Project.
Discussion.
RT Rybak offered strong support for the firm having worked with them on many different projects.
He feels Kathleen Lamb is an especially effective individual.
On voting for the motion: Ayes (6), Nays (0). Motion carried.
Adjourn
The next regularly scheduled DMCC Board Meeting will be held on Thursday, September 26,
2013, at 9:00AM in Rochester City Hall, Room 104.
Having no further business, Boardmember Bier moved, Campbell seconded, to adjourn the
meeting. Ayes (6), Nays (0). Motion carried.
Tina Smith, Chairperson
September 26, 2013
The Destination Medical Center (DMC) Initiative is one of the largest economic development initiatives ever undertaken in the State of
Minnesota. Our mission is to secure Rochester's and Minnesota's status as the world's premier destination medical center.
This bold initiative will be executed through a public-private partnership between the State of Minnesota, City of Rochester, Olmsted County and
Mayo Clinic. The key to our success lies in our ability to create and implement a comprehensive economic development strategy that leverages
$585 million in public infrastructure funding to attract more than $5 billion in private investment to Minnesota over a 20-year planning period.
The Development Plan describes our strategy for achieving this goal. After the Development Plan has been approved by the City of Rochester
and adopted by the DMCC, it will provide the vision, investment guidelines, funding priorities and long-term economic development strategies
(finance, business, marketing, operations, etc.) that will guide our work.
The following provides an oveNiew of the DMC Development Plan goals, objectives and process for adopting the Development Plan. A
complete list of next steps and requested actions of the DMCC Board of Directors is attached at the end of this package.
Minnesota has a national reputation for excellence in health care and medical innovation. The State of Minnesota has a history of making
significant investments in medical research and education to stimulate economic activity and opportunity in our state. In 2013, Mayo Clinic -the
state's largest private employer-with the City of Rochester, Olmsted County and other community stakeholders, brought forward the DMC
proposal to secure Rochester's and Minnesota's future as a global medical destinat ion. After careful deliberation, the Governor and the
Minnesota Legislature concluded there was a compelling public interest for the state to assist in the development of the DMC and to create in
state statute the financing tools and public governance structure necessary to realize this transformational development in Minnesota. During
the legislative session, and through subsequent discussions with the DMCC Board of Directors, the mission, goals and objectives of the project
have been identified as:
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 Goals
• Create a comprehensive strategic plan with a compelling vision that harnesses the energy and creativity of the entire community.
• Leverage the public investment to attract more than $5 billion in private investment to Rochester and the region
• Create approximately 35,000-45,000 new jobs, with workforce development strategies that support of that growth
• Generate approximately $7.5 -$8.0 billion in new net tax revenue over 35 years
• Achieve the highest quality patient, companion, visitor, employee, and resident experience, now and in the future
2
The DMC is a complex economic development initiative that will occur over 20 years. In order to manage the complexities of this endeavor, the
enabling legislation describes a unique public-private partnership, with five strategies to guide planning and implementation of the DMC.
These include:
• Vision-An economic development plan (Development Plan) must be established. This plan, developed in close collaboration with all
DMCC partners, will weave together the interests of the City, State, County, Mayo Clinic and the broader Rochester and Southeast
Minnesota region to create the world's preeminent destination medical center.
• Transformation -World-class destinations require not only a vision. but disciplined planning and a strategy for execution.
Transformational economic development projects on the scale we envision require a comprehensive strategy, including marketing,
business development, finance, project oversight, community engagement and communications. Our goal is not to simply spend $585
million in public resources, but to leverage that public investment to achieve an additional $5 billion p lus in private investment over 20
years.
• Accountability -The DMC legislation creates the Destination Medical Center Corporation (DMCC), established by the City of
Rochester, as a public nonprofit. The DMCC's job is to develop and approve the Development Plan, and then to make decisions about
how best to invest public funds in order to maximize private investment and achieve the goals of the Development Plan. The DMCC is
responsible for providing oversight, and ensuring that planning and implementation of the Destination Medical Center charge supports
the legislative intent and public purpose as defined in state statute.
• Focus On Execution -The legislation mandates a private non-profit Economic Development Agency (EDA) be created by the Mayor
Clinic for the purpose of developing and marketing the DMC. The EDA provides expertise in planning and executing this complex, multi
billion dollar development strategy. To encourage the cooperation essential to our success, the enabling legislation requires that the
DMCC hire the EDA, and mandates that the EDA work in collaboration with the city, county and community.
• Public Partners-DMC legislation recognizes the central role of the City of Rochester, Olmsted County, and the state of Minnesota in
this endeavor. The City that is home to the DMC provides financing for DMC pubic infrastructure projects and works closely with the
DMCC on implementation. The city, state and county provide together $585 million in public resources. 3
The Development Plan is a comprehensive planning document akin to a strategic business plan, that will guide the DMC initiative over the 20
year period. The Development Plan builds from the mission and goals of the DMC to set objectives for the project going forward.
DMC GOALS
Create a Comprehensive Strategic Plan
Leverag e $585 Millio n to A ttract $5 B illio n
Create 35,000 -45,000 New Jobs
Generate $7.5-$8.5 Billio n in Net New Tax Revenue
A ch ieve H ighest Q uality Patient, Visitor & Resident Exper ience
DEVELOPMENT PLAN OBJECTIVES
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rl J Harness The Energy & Creativity Of The Community In The Planning & Executio n Of The DMC Initiative
-{'-D_e_v_e_lo_p _a _c_o _m_p_r_e_h_e _n _s _iv_e _s_t _ra_t _e _g y_T_h_a _t _A _d _d _re_s_s_e _s _A_I _I _Fa_c_e_ts_o _f_B_u_il _d _i n_g_&_s_u_s_ta_i_n _in_g_T_he_D_e_s _ti _n a_t_io_n ________ ]
� Establish A Viable Eco nomic Development Strateg y Grounde d B y Market Resea rch �:l������������������� L{'-D_e_fi_m_e_E_xt_ra _o_r_d_in_a _ry_c_o _s_ts _&_s_e_t_P_r_io_r_it_ie_s_F_o_r_P_u_b_l_ic _ln_v_e _stm_e_n_t_T_o_M _e _e _t _T _he_M_i _ss_i _o _n _&_G_o _a _ls_o_f_t_h_e_D _M_c ___ .,.�]
� rl;=D:e:v:e:lo:p=S :tr :a :te:g :ie:s=T:o :A:tt:r :a:ct=N :ew=B:u:s:i:n :es:s:e:s:T:o=T:h :e:M:a:r:k:et:,:ln:c:l :u :d :in:g :S:B:E:,:M=B :E:a:n:d:W=B:E =pa:rt=ic :ip:a:t :i o :n===:::J
L{'-F_o _c_u_s_o_n_s _tr _a_te_g_i_es_T _o _A_ttr_a_c _t,_R_e_t_a_in_&_F _o _s _te_r _T_h_e_D_e_v_e_lo_p_m_e _n _t _o _f_A _H_i g _h_ly _s _k _m _e _d _w_o _rkf_o_r_c_e _______ .,.�]
�ri�D=e=v=e=lo=p ==A =F=i=n =a =nc=e==P =Ia=n=T=o==F=o =st=e=r =B=u=s=in=e=s=s=&==E=c=o=n =o =m=i =c=G=r =o =wt=h==ln==T=h=e =M=a=r =ke=t==========================�J U Establish Underwriting Criteria To Direct Public Fun ding To Maximize The Return To State & Lo cal Juris dictio ns J !..______ _________ ___/ r{ Create Strategies, Pro gram s & Services That Supp ort A W orl d Class Destinatio n
1--L.{ Develop Strategies To Enhance The Quality Of The Exper ience For Patients, Visitors & Resi dents in Ro c hester
4
• Conttolct& With
EDA to Pion &
Focllltoto DMC
lnltlotlvo
Development
Pion
• Coo rd lnDt cto
With
Stnkcholder
Group:
• 011c!lne Purpou/Obte-ctlvet. (M.G. 4G,..43,
��oubd.1(a)(1))
• ProjKt RoportlngiFlndlngs In (vidence (M.5.
4Cti,4J., 'Ubd'-o 1{�}(1), 1(�}fC)(In), 1(b)}
• Oudlne :trawglc PTt� (N.:O. 469-"3. subd.
1(:.)(111
• Ormogt:�phle & MMUt 0::1b (M.S. 4G!I.A.l,
subci.(1}(.,)(4K¥11))
• Masblr P1an (M.!:. 4�fl.4.1, t.l.lbdL 1(:.)(4)(1) .:.nd
(IY))
• QJn1cllnfrntn.lc.tul'flo Pl.:.n (M.�. 4Ci,.AJ, subd.
1(11)(4)(111))
• Tr��n�porutlon Pfan (M.C. 4Gfl.43, subd.
1(ot)(4)(Y))
• Hn.JnCt' Pl:�n (,A,� • .CG!tA3, �ubcl.1(a)(.C}(Jn))
• Du•l�;.• Ot'wtopmont Pl.wl (M.:lo.4G9.4l,
�ubci:>.1(1K2), 1(.:.)(4){1))
• CommunltyO\Ietuctt & Programmlna Pbn
(N.C. 4G!I.A3, subcls. 1CaK4}(1) and (\If))
• tJ..IU'Utlna & Convnunk.a1ions Pbn (Ll!:..
4Cll.4J.. )UbCh, 1(0}(4)(1) .Jfld (vi))
City I City Comp Pl:m
County
Community Org�nbtion�
Rcgion�l T�n:port:stion Pl�nning
Gcncr:�l Public
PrcUmin:1ry
Droll
Relt-Ol:ed to
City for
60 Doy
Pubtic Review
• Prellmio:�ry
Approv;ll
• Adopt:: Flnol
Pl.lnWith
Amcndmcnte.
F'm01l
Oroft Sent
to DMCC
for
AdoptJon
• Approve::. After
Public He� ring
• Propo:.cs.
Amendments,
if Any
• Report� to
DMCC
FAClUATE ECONOMIC DEVELOPMENT
ON-GO INC
• FaCU\bte Pr1onle lnve•tmt-nt (M.!io. 4�!1.4l, subd. �1))
• Oovtk>p C. Upd.:ne Crttt-rb lot Cv:alu.:adng .1 Undt'twrielno
Propo&.11 (M.G.. "".AJ, �ubd. �r:n
• OQtano & wnp!Omet�Utlg the �IOpmeont �n (M.S-
4G!I.A3, !loUbd. C{))l
• :ok!Utlg & [v;lluaano Propo�.JI" """ M��ng
RKotnmend.atklon• to CI�MCC (1.\.::0. 4G,.AJ, �ubd. C(l)J
" Pro<Adlno Tronucttonal St'f"VVus 10 Projl'Cts (M�.
4GO.Al, subcl. C(4})
• �VC!IOp Community Ovtre!.tch Pr()'ijn�m, (M.::.. 4GI:l..4l,
5Ubcl. G(!i))
• Working: Wlttt ttte OMCC, toAcqulrt' & F�Hit.lt&'o UWt ::O:.Io,
Lu:;o or Other Ronll.AndfPro�rty TDnJnctlon:; (M.S.
4C!J.A3, subci.G{G))
• CHJt FI�Uncl-11 !:.upport ror tho OL!CC, City & Pro}t'Cb
(M.S. "''.A3, subcl. 6(7))
• Partnf>t' wtth Olhfl' AQrnc�...#Of'g:mtz:aoons To Protnot£'
Cc.onomk O.w'opmt'fttl DUC (N...:: •• Ci?A-3, subcl, 6(t))
• �uppon & Admlnlstc.-r Pbnn\nv lind �W'k>pment
AcliYtuu to Implement tho Oo�loptMnt Pbn (M.�.
4Gfl.43. 'ubd. t.('))
• Prrp.Jring:. :'luppontng Markollng .S. Promotion fM..:;,
4C0.43, subd.l".-(10))
• Pre-paring & lmplomt'ntlniJ Community and Public
Rotation:.
In Cupport or DMC (M.G. 4G!I,43, 5Ubd, G(11))
• Anl:.tlnQ ltlo Corpor.:�Ubn, Cltlt'!O .Jnd Ol:l'ttor:. In
Application•
for Grants :and Appllutktnli (M.::.. 4G!).43, -,ubcl. G(12))
• Mslt:lng ottt•r CMt"DI Advisory R«:om.IM'nd�bons .as
R�uu� (M�. 4CI9.43, subd. C(13))
• Undcrwntce.
Rcquc:.t
• M�ke:.
Rccommend�tion
• Approve� Und
u�c
• Approvc-t.
RcglonDI
TrOlnSft
Pro�ct:.
6
Following is a preliminary summary outline of the structure and content of the Development Plan. The Development Plan will be complementary to
City, County and regional planning documents. This outline is preliminary in nature and the content of the Development Plan will be finalized
through discussions with the DMCC, City and County and will be based on the budget approved by the DMCC Board of Directors.
DEVELOPMENT PLAN-PRELIMINARY OUTLINE OF CONTENT
1.0 Introduction
2.0 Project Reports I Findings
• Current Project Status-Planned vs. Implemented
• Report on Investments, Targeted Employment &
Economic-Fiscal Impacts Achieved
• Summary Report-Statement of Findings, with Evidence
• Finding #1 -Sufficient to indicate relationship to state I local objectives
• Finding #2-Affords maximum opportunity for private sector investment
• Finding #3 -Conforms to the City's general development &
comprehensive plan
• Finding #4-Conforms to approved local I regional transportation plans
• Finding #5 -Complementary to Mayo Clinic Strategic Plan I Master Plan
3.0 Summary of Strategic Priorities (Next 5 Years)
• Strategic Initiatives in 7 Core Focus Areas
• Health & Wellness
• Commercial, Research and Technology
• Hotel and Hospitality
• Residential I Livable City
• Retail, Entertainment & Cultural
• Learning Environment
• Parks and Recreational
I I i I I
3.0 Summary of Strategic Priorities (Next 5 Years-Cont'd)
• Economic-Fiscal Impact Projections
• Jobs and Targeted Employment Projections
• Transformation Projects/Catalysts
4.0 Market Research
• Population and Demographic Analysis
• Visitation & Demand Analysis
• Market Research By Seven Core Focus Areas
5.0 Master Plan
• Planning Goals & Objectives
• Definition of Sub-Districts I Methodology for Selection
• Planning Criteria & Principles
• Land Use Assumptions
• Neighborhood & District Development Plans
• Environmental & Sustainability Targets
• Historic District & Preservation Planning
• Transportation & Transit Corridors
• Signage and Wayfinding Requirements
• Coordination with Infrastructure I Transit Plans
6
DEVELOPMENT PLAN-PRELIMINARY OUTLINE OF CONTENT (PAGE 2 OF 2)
6.0 District Infrastructure Master Plan (Non-Transportation)
• Planning Goals & Objectives
• Priority Investment Guidelines I Target Areas for Investment
• Summary of Conformance with City Comprehensive Plan I Other
• Planned Improvements, Requirements & Guidelines
• Projected Master Project Budget, Schedule & Phasing Plan
• Projected Annual Operations & Maintenance Budgets
• Parcel Development /Criteria
7.0 Transportation Plan
• Planning Goals & Objectives, including Boundaries and Requirements
• Overview of Transportation Management System Current vs. Planned
• Demand Analysis-Regional / Local
• Regional & District Improvements, Requirements & Guidelines
• Projected Development Budget I Phasing-5 Years
Projected Development Schedule I Phasing-5 Years
Projected Annual Operations & Maintenance Budgets
8.0 Finance Plan -Development & Investment Priorities
• Public Funding Priorities and Investment Objectives
• Detailed Sources and Uses of Funds Summary
• Consolidated Project Budget (Projected) -First 5 Years
• Finance Assumptions I Bond Rating Summary
• Investment Risk Analysis
• Guidelines & Requirements for Funding Applications
• Underwriting Criteria
9.0 DMCC Business Development Priorities & Strategies
• Establish Strategies, Including Priorities, Goals and Objectives
• Establish Criteria for Targeted Business I Work Force Development
10.0 Community Outreach & Programming Priorities & Strategies
• Establish Strategies, Including Priorities, Goals and Objectives for
• Establish Criteria for Review of Outreach, Programs and Services
11.0 Marketing & Communication Priorities & Strategies
Establish Marketing Strategy, Including Priorities, Goals and Objectives
• Communications and PR Strategy, Including Priorities. Goals and Objectives
• Criteria for Evaluating Marketing Proposals
12.0 DMCC Operations Plan-5 Years
• Operating Plan Summary
• Operating Budget & Reporting -5 Years
13.0 Exhibits
• Evidence for Findings
• Form(s) and Procedures for Funding Applications
• Forms of Development and/or Grant Agreement for Project Funding
• Form(s) of Forgivable/Low-Interest Loan Agreement
7
Following is a list of the proposed actions that the DMCC Board of Directors will be asked to undertake to facilitate the start of the Development
Plan process.
• Approve the goals and objectives for the Development Plan as outlined in this DMC Development Plan Overview . These will serve as
the basis for creating the Development Plan going forward.
• Approve the timeline for completing the DMC Development Plan by October, 2014.
• Direct the Destination Medical Center Economic Development Agency (EDA) to move forward with the coordination and execution of
the Development Plan on behalf of the DMCC in accordance with Section 469.43 of the Legislation, including specifically:
• Begin the process of planning the Development Plan based on the content outlined in this DMC Overview
• Identify the team of staff and consultants who will be responsible for creating the Development Plan
• Lead the process to coordinate the Development Plan to be complementary with the City's General Plan, Comprehensive Plan
and the City /County Regional Transportation Plans.
• Authorize the DMCC Board Chair to enter into negotiations of agreements for approval by the DMCC Board of Directors, including:
• An agreement with the EDA, the scope of which shall be consistent with the legislation
• An agreement with the City, the scope of which shall be consistent with the legislation
• Request the EDA to provide an update report to the DMCC Board in November which will include:
• A detailed outline of the work to be undertaken in the Development Plan process
• An update on the process related to the selection of consultants
• A report on the process and activities which will be undertaken to gain community input in the Development Plan
8
RESOLUTION NO. 01 -201 3
WHEREAS, the board of directors (the "Board") of the Destination Medical
Center Corporation, a Minnesota nonprofit corporation created pursuant to
Minnesota Statutes, Chapter 31 7 A and Minnesota Statutes, Section 469.41 (the
"Corporation"), desires to establish goals, objectives and an outline for the
content of the development plan, consistent with the requirements in Minnesota
Statutes, Section 469.43, subdivision 1, as shown in the Development Plan
Overview, attached hereto as Exhibit A (the "Development Plan Overview"); and
WHEREAS, the Board is requ ired by Minnesota Statutes, Section 469.43
to engage the Economic Development Agency (the "EDA") to assist the
Corporation in preparing the development plan and to provide specific services
as outlined in Minnesota Statutes, Section 469.43, subdivision 6;
NOW THEREFORE, BE IT RESOLVED, that the Chairperson of the
Board and counsel to the corporation is authorized and empowered, in the name
and on behalf of the Corporation, to negotiate an Agreement for Destination
Medical Center Services with the EDA based on the parameters of Minnesota
Statutes, Section 469.43, subdivision 6 and provide a final draft of the contract to
the Board for comment and approval.
BE IT FURTHER RESOLVED, that while the Agreement fo r Destination
Medical Servi ces is negotiated, the EDA (i) begin the process of planning the
development plan based on the Development Plan Overview, (ii) begin
coordinating the scope of work of its staff and consultants to develop the
development plan, and (iii) lead the process to coordinate with the City of
Rochester and Olmsted County to ensure the development plan is
complementary to the City of Rochester's Comprehensive Plan and regional
transportation plans.
BE IT FURTHER RESOLVED, that the Board desires to adopt a final
development plan, as described in Minnesota Statutes, Section 469.43,
subdivision 1, by October 31 , 201 4.
PASSED AND ADOPTED BY THE BOARD OF DIRECTORS OF THE
DESTINATION MEDICAL CENTER CORPORATION THIS ____ DAY OF
SEPTEM BER, 20 13.
CHAIR
DESTINATION MEDICAL CENTER
CORPORATION
RESOLUTION NO. 03-201 3
WHE REAS, the board of directors (the "Board") of the Destination Medical
Center Corporation, a Minnesota non profit corporation created pursuant to
Minnesota Statutes, Chapter 31 7 A and Minnesota Statutes, Section 469.41 (the
"Corporation"), is permitted, pursuant to Minnesota Statutes, Section 469.41 ,
subdivision 12 and Section 469.47 , subdivision 4, to enter into an operating
services contract (the "Contract") with the City of Rochester, Minnesota (the
"City") to provide administrative, clerical, and accounting services to the
Corporation; and
WHEREAS, the Board deems it advisable and in the best interests of the
Corporation to begin the process of drafting and negotiating the Contract;
NOW THEREFORE, BE IT RESOLVED, that the Chairperson of the
Board and counsel to the Corporation be, and each of them hereby is, authorized
and empowered , in the name and on behalf of the Corporation, to draft and
negotiate the Contract with the City, and provide a final draft of the Contract to
the Board for comment and approval.
PASSED AND ADOPTED BY THE BOARD OF DIRECTORS OF THE
DESTINATION MEDICAL CENTER CORPORATION THIS ____ DAY OF
SEPTEMBER, 201 3.
4842-2607-9495\1 9/18/20 13 6:48 PM
CHAI R
DESTINATION MEDICAL CENTER
CORPORATION