HomeMy WebLinkAbout4/18/2016 DMCC Special Board Meeting - Agenda and Meeting PacketDESTIN ATION
MEDICAL CENTER
CORPOR ATION
(DMCC)
BOARD MEETING
1:00 P.M. MONDAY, APRIL 18, 2016
MAYO CIVIC CENTER - ROCHESTER
DESTINATION MEDICAL CENTER CORPORATION (DMCC)
BOARD MEETING
Monday, April 18, 2016
1:00 P.M.
AGENDA
I. Call to Order PAGE
II. Roll Call
III. Approval of Agenda ..................................................................................................................................... 1
IV. Approval of Minutes: December 17, 2015 .................................................................................................... 2
V. Public Comment Period
VI. Chair’s Report
VIII. City of Rochester
A. Report on Projects Pending or Underway (Presenter: City Council President Randy Staver)
B. Transportation Management: Update (Presenters: Ken Holte, SRF; Gary Neumann,
City of Rochester) ............................................................................................................................ 7
IX. Economic Development Agency
EDA and Discovery Square Update (Presenter: Jeff Bolton, EDA Board Chair; Lisa Clarke, EDA)
A. Development Process/Resource Materials (Presenters: Terry Spaeth, City of Rochester;
Lisa Clarke, EDA; Patrick Seeb, EDA) ........................................................................................... 23
B. Heart of the City: Public Space Design Update (Presenter: Tom Fisher, EDA Board;
Patrick Seeb, EDA) ........................................................................................................................ 49
C. Chateau Theatre Task Force: Update (Presenter: Patrick Seeb, EDA) ......................................... 50
D. St. Mary’s Place: Update (Presenters: Tom Fisher, EDA Board; Patrick Seeb, EDA) ................... 51
Energy and Sustainability: Update (Presenters: Lisa Clarke, EDA; Mitchell Abeln, EDA) .............. 52
Resolution A: Adopting Goals; Establishing a Technical Advisory Committee
E. DMC Dashboard: Update (Presenters: Craig Helmstetter, Wilder Research;
Mitchell Abeln, EDA) ...................................................................................................................... 53
F. Marketing Plan: Update (Presenters: Mary Welder, EDA; Lisa Clarke, EDA) ................................ 54
X. DMCC 2016 Budget: Year to Date Update ................................................................................................. 55
XI. April 1 Report to DEED (Presenters: Gary Neumann, City of Rochester; Doug Holtan, Mayo Clinic) ........ 59
Resolution B: Ratifying Execution and Transmission of April 1 Report to DEED ....................................... 74
XII. Resolution C: Commendation for Bill George ............................................................................................. 75
XIII. Resolution D: Commendation for Ed Hruska .............................................................................................. 77
XIV. Meeting Schedule:
A. Next Regular Meeting: May 26, 2016 at 9:30 A.M.
XV. Adjournment
769238.DOCX-18
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DMC Developer Resource Guide
To: DMCC Board of Directors
From: EDA Staff
Date: March 18, 2016
Background:
The Destination Medical Center Economic Development Agency (DMC EDA) staff has been working with
city staff and the development community to prepare a developer resource guide to better community
DMC objectives, the project review and approval process, and potential financial resources. A draft of
this document, “Resource Guide: A Guide to Building and Development for Destination Medical Center,”
is attached.
Next Steps:
The Resource Guide will also include a Rochester Market Overview which includes economic and
demographic profiles, frequently asked questions and highlights of amenities, services and awards and
recognition. These chapters are presently under development.
The Resource Guide will be posted on the DMC.MN and City of Rochester websites, and will be available
at DMC and City offices.
We will continue to refine this document as it is shared more broadly with the community and is applied
to specific development projects.
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RESOURCE GUIDE:
A Guide to Building and Development
for Destination Medical Center
DRAFT24
DMC RESOURCE GUIDE2
DRAFTDMC RESOURCE GUIDE
TABLE OF CONTENTS
WELCOME
A Letter from the Destination Medical Center Economic Development Agency ....3
Destination Medical Center (DMC) — A Unique Opportunity .....................................4
DMC — A Private-Public Partnership .................................................................................5
• DMC Corporation
• City of Rochester
• State of Minnesota
• DMC Economic Development Agency (EDA)
• Olmsted County
DEVELOPMENT REVIEW PROCESS
DMC Development Plan ........................................................................................................6
Eligibility Requirements .........................................................................................................7
DMC Development District Program Map ........................................................................8
DMC Application and Approval Process ............................................................................9
Development Process Flow Chart....................................................................................10
Project Concept Review Checklist ....................................................................................11
Pre-Development Review Checklist .................................................................................12
Project Evaluation Criteria .................................................................................................13
FINANCING
DMC Financial Framework .................................................................................................17
Use of Funds .........................................................................................................................18
Supplemental Funding .......................................................................................................19
ROCHESTER MARKET SUMMARY – UNDER DEVELOPMENT
FREQUENTLY ASKED QUESTIONS/RESOURCES
DMC FAQ ................................................................................................................................21
Contacts .................................................................................................................................22
Awards & Recognition .........................................................................................................23
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DMC RESOURCE GUIDE3
DRAFTWELCOME
Thank you for your interest in Destination Medical Center (DMC). The Destination Medical
Center Economic Development Agency (DMC EDA) is pleased to provide the “Resource
Guide: A Guide to Building and Development for Destination Medical Center” in
Rochester, Minnesota.
DMC sets in motion a new future for Rochester as one of the most economically vibrant,
densley settled cities in the Upper Midwest. With Mayo Clinic at its heart, the Destination
Medical Center (DMC) initiative is the catalyst to position Rochester, Minnesota, as the world’s
premier destination center for health and wellness. DMC will attract people, investment, and
jobs to America’s City for Health and support the economic growth of Minnesota including its
biosciences sector.
Rochester is to become the epicenter of this economic boom with a dramatic transformation
in cultural and entertainment offerings, recreational and community amenities, hospitality,
and transportation infrastructure. We are working in coordination with the City of Rochester,
and both the DMC EDA and the City are available to guide you through this process. DMC sets
in motion a new future for Rochester as one of the most economically vibrant, densely settled
cities in the Upper Midwest.
In this guide, you will find tools and resources to assist you as you consider development in
DMC. However, we realize that every development project is different and encourage you to
contact the DMC EDA at info@dmc.mn or call (507) 216-9720 for your development-related
needs.
Thank you for your interest in DMC. We look forward to working
with you.
Sincerely,
Lisa Clarke
Executive Director
Destination Medical Center Economic Development Agency
NOTE: The Resource Guide is divided into sections and provides relevant information on DMC
development and a market overview. Please keep in mind that the process described in this guide
is intended to gather and evaluate data and help the DMC Corporation and City of Rochester make
informed decisions about DMC public funding investments. The DMC EDA staff is charged with facilitating
this process and partnering with you and the City of Rochester to make the DMC vision a reality.
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DMC RESOURCE GUIDE4
DRAFTDESTINATION MEDICAL CENTER—A UNIQUE OPPORTUNITY
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Creating a Global Destination for Health & Wellness
Great cities are great destinations. They are vibrant places where people come
together to work, live, and share experiences. They are centers for culture. They are
places that are attractive to residents and visitors alike. Finally, they are places that
engage individuals in ways that meet and often exceed their expectations. Broad
involvement by residents and community groups of Rochester has been and will
always be central to the plan’s success.
The DMC initiative passed into law in May 2013, providing $585 million in state
and local funding over a 20-year period to support public-infrastructure projects
aligned with the DMC vision. DMC, a public-private partnership between the State
of Minnesota, the City of Rochester, Olmsted County, and Mayo Clinic, is the largest
economic development initiative in Minnesota and one of the largest in the country.
DMC Mission:
With Mayo Clinic at its heart, the DMC initiative will be the catalyst to position
Rochester, Minnesota, as the world’s premier destination center for health and
wellness. DMC will attract people, investment, and jobs to America’s City for Health
and support the economic growth of Minnesota and its biosciences sector.
DMC Vision:
To provide a high-quality patient, companion, visitor, and community member
experience to become the world’s premier destination medical community.
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 ($585 million) 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 growth.
• Generate approximately $7.5 – $8.0 billion in new net tax revenue
over 35 years.
• Achieve the highest quality experience for patients, companions, visitors,
employees, and residents, now and in the future.
For more information, contact the DMC EDA at info@dmc.mn or call (507) 216-9720.
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DMC RESOURCE GUIDE5
DRAFTDMC—A PUBLIC-PRIVATE PARTNERSHIP
The DMC initiative has been structured as a public-private partnership with
balanced responsibilities and governance between the primary stakeholders.
This outline summarizes the collaboration of these parties throughout the DMC
Development Plan.
GOVERNANCE & FINANCE
• Governed by Board of Directors
• Project Oversight
• Insures Compliance with Statutory Intent
• Approves Annual Operating Budget
IMPLEMENTATION
• Project Oversight
• Review/Approval of Project Applications and
Funding Requests
• With City, Reporting to State
DMC CORPORATION
GOVERNANCE & FINANCE
• Governed by City Council
• Funds City Investment (Public Infrastructure
Projects)
• Serves as Fiscal Agent for Project
• Approves Projects through Seats on DMC
Corporation Board and Separate City
Council Approval
• Approves Annual Operating Budget
• Funds Administrative Costs
IMPLEMENTATION
• Proposes City Projects for DMC Funding
• Oversees Construction of City Projects
• Ongoing Operations and Maintenance of
City Projects
• With EDA, Facilitates Projects/DMC Funding
Requests
• With DMC Corporation, Reporting to State
CITY OF ROCHESTER
GOVERNANCE & FINANCE
• Governed by Board of Directors;
• The DMC Corporation, including
Accounting and Reporting Functions
• No Approval Rights
IMPLEMENTATION
• Provides Ongoing Services in
Accordance with DMC Act
• Recommends Strategic Priorities and
Projects in Each Phase of Development
• Facilitates the Implementation of the
Development Plan Strategies, Projects
and Investments
• Assists in Project Applications and
Funding Requests
• Supports DMC Corporation, including
Project Management, Development,
Advisory Services, and Marketing
• Coordination with the City, County,
Mayo Clinic, and Other Stakeholders
• Ongoing Community Engagement and
Project Communications
• Refresh Development plan every
5 years
DMC EDA
GOVERNANCE & FINANCE
• Governed by County Board
• Funds County Investment (Transit
Infrastructure)
• Approves Projects through Seat on
DMC Corporation Board
IMPLEMENTATION
• Proposes County Projects for
DMC Funding
• Oversees Construction of County
Projects
• Ongoing Operations and Maintenance
of County Projects
OLMSTED COUNTY
GOVERNANCE & FINANCE
• Governed by Governor and Legislature
• Funds State Investment
• Certification of Investments
IMPLEMENTATION
• Oversight through Annual Reporting
and Certifications
STATE OF MINNESOTA
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DMC RESOURCE GUIDE6
DRAFTDEVELOPMENT REVIEW PROCESS
This section provides an overview of the funding application/approval process that
will be followed by the DMC Corporation and City of Rochester in the review and
approval of projects seeking DMC funding.
The deliberative process for identifying, evaluating, and ultimately approving
or denying public infrastructure projects within DMC was designed to provide
efficiency, timeliness, and consistency to all applicants for DMC funds. The
DMC Development Plan establishes a detailed framework to identify and prioritize
development in the market and to approve public infrastructure projects.
Application for DMC funding can be found on the DMC website at
DMC.MN/DEVAPPLICATION.
DMC DEVELOPMENT PLAN
The DMC Development Plan is intended to transform Rochester into a dynamic,
urban center with places that foster lasting experiences, create an active and
attractive environment, and boost the economy. These places are organized into
six sub-districts:
DMC SUB-DISTRICTS:
Discovery Square
A new address for the future of biomedical, research, education, and
technological innovation, Discovery Square will be a keystone to the DMC
economic development strategy.
Heart of the City
The heart of the downtown, this sub-district will create a true center of the
city, a crossroads where Mayo Clinic, commercial, hospitality, retail, and
residential meet.
Central Station
Central Station will be a cornerstone of the plan for future growth in
Rochester. The location is ideal as a transit hub to support the community,
visitors, and patients.
Downtown Waterfront
The downtown waterfront will transform the perception of Rochester as a
medical campus into a vibrant destination city.
Saint Marys Place
Saint Marys Place will establish a civic square and monumental gateway at one
of the primary entry points to Rochester.
UMR and Recreation Area
This sub-district will incorporate the University of Minnesota–Rochester (UMR)
master plan and the northern edge of Soldier’s Field as an anchoring element
to the DMC Development District and strategies for growth.
The full version of the DMC Development Plan can be found on the DMC website at
http://dmc.mn/investors-developers/.
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DMC RESOURCE GUIDE7
DRAFTELIGIBILITY REQUIREMENTS
For a project to be eligible for DMC funding, the project must be:
(1) Within the DMC District and
(2) A public infrastructure project.
DMC Development District
View the DMC Development District Program Map on page 8 or at
http://dmc.mn/maps/.
Public Infrastructure Project
Public infrastructure project refers to a project financed in part or in whole
with public money to support the development plans, as identified in the DMC
Development Plan. A public infrastructure project may:
(1) Acquire real property and other assets associated with the real property.
(2) Demolish, repair, or rehabilitate buildings.
(3) Remediate land and buildings as required to prepare the property for
acquisition or development.
(4) 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, utility
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, facade construction and restoration, wayfinding and signage, and
other components of community infrastructure.
(5) Acquire, construct or reconstruct, and equip parking facilities and other
facilities to encourage intermodal transportation and public transit.
(6) Install, construct or reconstruct, furnish, and equip parks, cultural,
and recreational facilities, facilities to promote tourism and hospitality,
conferencing and conventions, and broadcast and related multimedia
infrastructure.
(7) 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.
(8) Prepare land for private development and to sell or lease land.
(9) Provide costs of relocation benefits to occupants of acquired properties.
(10) 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.
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DMC RESOURCE GUIDE8
DRAFTDMC DEVELOPMENT DISTRICT PROGRAM MAP
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DMC RESOURCE GUIDE9
DRAFTDMC APPLICATION AND APPROVAL PROCESS
BACKGROUND
The DMC Economic Development Agency is responsible for implementing the
DMC Development Plan over the next 20 years and working with private developers
and investors to help facilitate projects and private investments that support the
DMC vision.
EDA’s services offer developers the opportunity to:
• Walk through the specifics of the application process
• Present their projects in an informal setting under what are considered to be
development reviews.
The first two development review projects that a project sponsor will be
required to attend are:
(1) Project Concept Review
(2) Pre-Development Review
PURPOSE OF REVIEW
The intent of these development reviews is to:
• Advise and inform procedural requirements and project- related issues
associated with DMC funding projects
• Provide all possible DMC forms of assistance applicable to the project
• Exchange information with the appropriate parties.
To ensure productivity during these reviews, the DMC EDA has prepared checklists
outlining the information required at each respective meeting:
• The Project Concept Review Checklist
• The Pre-Development Review Checklist
• DMC Development Process Flow
The DMC Application for Funding can be found on the DMC website at
DMC.MN/DEVAPPLICATION.
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DMC RESOURCE GUIDE10
DRAFTDEVELOPMENT PROCESS FLOW CHART
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DMC RESOURCE GUIDE11
DRAFTDEVELOPMENT PROCESS:
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DMC RESOURCE GUIDE12
DRAFT1. PROJECT CONCEPT REVIEW CHECKLIST
The developer will be asked to provide an overview of the proposed project during
the Project Concept Review. Although it is not required, the developer is strongly
encouraged to submit, in advance, a project summary adequately defining the following:
¨ General Project Description:
¨ Project Scope
¨ Project Type
¨ Proposed Buildings and Structures
¨ Traffic Consideration/Access from Adjacent Roadways
¨ Any Existing Facilities on Site
¨ Project Location
¨ Project Ownership/Legal Structure
¨ Project Status (design/engineering/financing/construction)
¨ Preliminary Sources and Uses Document
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DMC RESOURCE GUIDE13
DRAFT2. PRE-DEVELOPMENT REVIEW CHECKLIST
The developer is required to submit a written project document adequately defining
the following information:
¨ General Project Description:
• Refined Information from Prior Meeting
¨ Preliminary Market Studies, if any
¨ Preliminary Job Projections
¨ Preliminary Sources & Uses of Funds
¨ Preliminary Planning Documents
(concept design, preliminary feasibility analysis, etc.)
¨ Preliminary Traffic Considerations
¨ Preliminary “But For” Analysis
¨ Preliminary Project Schedule
¨ Estimated Funding Request
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DMC RESOURCE GUIDE14
DRAFTPROJECT EVALUATION CRITERIA
DMC evaluation criteria will be utilized by the DMC Corporation and the City of
Rochester in the review and approval of projects undertaken in accordance with
the DMC Development Plan. The DMC EDA may engage third parties to assist with
various background research and analysis of projects.
1. Does the project include a plan for achieving the DMC vision and goals? Is it
critical to driving the strategies included in the Development Plan?
a. Is the project consistent with the stated DMC goals and specifically
contributing to job creation?
• Does the project meet one or more of the goals and objectives
established for the DMC Development Plan?
b. Is the project consistent with the DMC vision?
• Is the project part of a bold and aspirational concept for the future?
• Does the project fit with the principles of the vision?
• Does the project provide a framework for growth in this sub-district?
• Does the project build infrastructure to support growth and drive
investment? Would the investment occur without the public infrastructure
to be funded? Is the proposed public infrastructure soley for the benefit of
the project or does it also support the broader vision of the DMC District?
• Will the public funding accelerate private investment in the DMC
Development District or applicable sub-district?
• Does the project provide a catalyst or anchor for an approved
strategy? Can the project reasonably be expected to catalyze or anchor
development in one of the six sub-districts?
• Can the project reasonably be expected to catalyze necessary
transportation/transit strategies?
2. Does the project include a plan for achieving consistency with the DMC
Development Plan (and any updates thereto) and other relevant planning
documents?
a. Is the project consistent with the DMC Planning Documents?
• Is the project consistent with the DMC Development Plan, Transportation
Master Plan, and/or Infrastructure Master Plan?
• Is the project consistent and/or supportive of the Finance Plan, Business
Development Plan, and other implementation strategies of DMC?
b. Is the project consistent with the City/County Planning Documents?
• Is the project consistent with the Rochester Downtown Master Plan
or Capital Improvement Plan (CIP)?
• If a Transit/Transportation project, is the project consistent with
the Rochester-Olmsted Council of Governments long-range
Transportation Plan?
c. Does the project support sustainability principles as a core objective in the
development and operations of the project?
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DMC RESOURCE GUIDE15
DRAFT3. Does the project include a plan that is financially viable?
a. Projects are required to provide a preliminary finance plan with their
applications. The information required includes:
• Project summary (e.g., concepts, detailed program, project team.)
• Total project budget.
• Sources of funding, demonstrating a verifiable gap that justifies DMC
funding
• Project operating pro-forma, including an overview of any operations and
maintenance funding that may be required.
• A project plan and/or market study supporting the demand/need for the
project.
• Demonstration of financial capacity to support the project.
b. The project-specific finance plan will be evaluated based upon the
following criteria:
• Is the project supported by current market conditions and
comprehensive feasibility studies?
• Does the project leverage additional private funds, maximizing the use of
DMC funds?
• Is the preliminary project finance plan comprehensive and viable based
upon project team and financial capacity?
• Is the project inclusive of an operation and maintenance pro forma?
• Is there a verifiable gap for funding based upon a reasonable return on
private investment?
• Is the proposed operating structure sustainable?
• Does the project impose any financial obligations on DMC or the City of
Rochester for ongoing operational or maintenance support?
4. Is the project consistent with adopted strategies and/or one or more
projects for the current implementation phase of the DMC Initiative?
The DMC Development Plan outlines projects and strategies that are
recommended as the focus in each phase of the DMC initiative. These
recommendations and the list of anticipated projects shall be reaffirmed
and/or updated each year in the DMC Capital Investment Plan that is
incorporated as part of the DMC’s annual budget process and as necessitated
by private investment in the DMC District.
Criteria will include:
• Is the project part of an approved strategy and current focus? Is the
project outlined as an approved strategy for the project within the DMC
Development Plan?
• Is the project recommended as a focus for the particular phase of the
project in the DMC Development Plan?
• Is the project consistent with the DMC Capital Improvement Plan (CIP)?
• If public, is the project specifically listed in the DMC CIP? Or is the project
necessary to facilitate a DMC-related strategy?
• If private, is the project otherwise compatible with the planned public
improvements in the DMC CIP?
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DMC RESOURCE GUIDE16
DRAFT5. Does the project include a plan for achieving local small, minority-,
and women-owned business project requirements and other project
requirements, as applicable?
The DMC is established to drive economic and fiscal benefits to state and local
jurisdictions and to benefit the community as a whole. Each project will be evaluated
for its ability to realize and/or support growth occurring within the DMC District.
The information that will be required to make the evaluation will include:
• Agreement to execute the DMC Development Agreement, the terms of
which shall be provided in the form to all applicants.
• Agreements will include requirements of the DMC initiative (e.g., American
Made Steel, Minority Business Enterprise, Women Business Enterprise
Construction Targets).
6. Does the project include a plan to comply with or support the economic-
fiscal goals and objectives of the DMC?
The DMC is established to drive economic and fiscal benefits to state and local
jurisdictions and to benefit the community as a whole. Each project will be evaluated
for its ability to realize and/or support growth occurring within the DMC District.
The information that will be required to make the evaluation will include:
a. Job Projections
• Construction jobs
• Permanent operating jobs, if applicable
b. Tax-base projections (through 2049), if applicable
c. Capacity or other support to demand (e.g., public works)
The economic-fiscal analysis will be evaluated based on the following criteria :
• Does the project generate substantial economic-fiscal gain based upon
job projections?
• Does the project generate substantial economic-fiscal gain based upon
tax-base projections?
• Does the project maximize the opportunity for investment by attracting
other private capital?
• Does the project support the economic strategies of the project by
providing civic/cultural uses and/or public amenities that support strategic
growth in the DMC Development Plan?
• Does the project align with district and/or specific business development
and economic development strategies that are adopted as part of the
DMC Development Plan? DE
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DMC RESOURCE GUIDE17
DRAFT7. Other Considerations
A written summary will be provided by the developer for other considerations that
the DMC Corporation Board may take into account when evaluating projects. These
Include:
a. Is the project inside the DMC Development District?
To be funded, projects must be within the boundaries of the DMC District.
The DMC Corporation and the City of Rochester may consider expanding
the DMC District to support the execution of specific projects or strategies
that are outside of the current boundaries. The DMC Corporation and City
of Rochester may choose to do this by amending the current Development
District or creating a new district, which may or may not be contiguous to the
existing DMC District.
An amendment can happen at any time, but it is recommended that it only be
done with an accompanying project request.
The criteria to be considered include:
• Limited to the area required to support the project request.
• Consistent with the core strategies and planning documents.
• Essential to the strategies and/or catalytic to growth under the DMC
Development Plan.
b. Are there specific policies the DMC Corporation wishes to include/consider as
implementation of the DMC Development Plan moves forward?
During the implementation phase of the DMC initiative, the DMC Corporation
and/or City of Rochester may wish to provide special consideration to
projects with certain social and/or community benefits that are not specifically
required by the DMC Legislation. The prioritization of these considerations
within the DMC Development Plan and the role of the DMC Corporation and/
or City in implementing these considerations will be dependent upon many
factors, including:
• The completion of certain planning efforts, including but not limited to,
the City Comprehensive Plan
• The adoption of policies and/or ordinances by the city and/or
Olmsted County
• Identifying sources of funding to support programs and/or operations
• Other implementation or operational considerations.
The DMC Corporation Board may direct the EDA to work with the city, county,
and community organizations to develop and recommend specific policies,
ordinances, and programs that may incentivize the integration of these types of
benefits in the DMC Development District.
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DMC RESOURCE GUIDE18
DRAFTFINANCING
DMC FINANCIAL FRAMEWORK
The DMC prescribes a process by which DMC funds may be allocated to public
infrastructure projects in accordance with the DMC Development Plan as approved
in April 2015, whether public or private, and financed in part or in whole with public
money.
Public infrastructure projects are identified in the model as:
➤ General Infrastructure Projects that are inclusive of both public works
and development projects.
➤ Transportation Infrastructure Projects.
These categories are used to identify not only the type of project, but also the type
of DMC funds assumed to be expended on these projects.
DMC FUNDING IS GAP FINANCING
DMC funding is gap financing, which supports the extraordinary costs of creating
and sustaining a global destination.
DMC IS A PUBLIC-PRIVATE MODEL FOR INVESTMENT
The most innovative element of the DMC strategy is that private investment leads
the public investment. Private development and investment is coupled with public
funds to support the strategic initiatives of the plan (e.g., catalytic developments,
shared parking, transit spaces, public spaces and amenities). The DMC law requires
the private sector to meet a $200 million threshold investment to
activate the DMC funding program. Ongoing private investment is required to
secure the $585 million in public investment over the defined 20-year period.
The DMC Application for Funding can be found on the DMC website at
DMC.MN/DEVAPPLICATION.
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DMC RESOURCE GUIDE19
DRAFTUSE OF FUNDS
GENERAL INFRASTRUCTURE PROJECTS
General infrastructure projects anticipated in Phase 1 may include, but are not
limited to, the following:
• Non-Transit Streets and Sidewalks
• Public Utilities
• Parcel Development
• Development
• Civic Uses, Public Spaces, Cultural Amenities
• Shared Parking
TRANSIT INFRASTRUCTURE PROJECTS
Transit/Transportation infrastructure projects anticipated in Phase 1 may include,
but are not limited to, the following:
• Transit
• Transit/Streets and Bridges
• Transit Stations and Parking
• Active Transportation
• Signage and Wayfinding
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DMC RESOURCE GUIDE20
DRAFTSUPPLEMENTAL FUNDING
Successful cities and destinations draw from significant federal, state, local, and
charitable resources to implement the vision and specific project objectives. To be
truly successful, DMC cannot rely solely on DMC funds or allocations from the
City of Rochester, Olmsted County, Mayo Clinic, or local developers to achieve
the vision.
The following is an initial listing of federal and state funding/grant programs that
have been identified as potential funding sources and for which certain DMC
projects may be eligible. A comprehensive funding resource manual can be provided
by the DMC Economic Development Agency upon request.
FEDERAL FUNDING SOURCES
➤ US Department of Commerce
• Public Works
• Economic Adjustment Assistance
➤ US Department of Treasury
• Low-Income Housing Tax Credit
• New Market Tax Credit
➤ US Department of the Interior
• Historic Preservation Tax Incentives
• Land and Water Conservation Fund
➤ US Department of Transportation
• Fixed-Guideway Capital Investments Grants
• Urbanized Area Formula Grants
• Bus and Bus Facilities Grants
• Tiger Discretionary Grants
• Transportation Alternatives Program
➤ US Department of Housing and Urban Development
• Community Development Block Grants
• Home Investment Partnership Program
➤ US Department of Homeland Security
• EB-5 Immigrant Investor Program
STATE FUNDING SOURCES
➤ Department of Employment and Economic Development
• Job Creation Fund
➤ Economic Assistance Programs
• Brownfield Tax Incentive
➤ Department of Employment and Economic Development
• Contamination Cleanup Grant and Contamination Investigation
and Response Action Plan Development Grant Programs
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DMC RESOURCE GUIDE21
DRAFT
Rochester Market Summary – UNDER DEVELOPMENT
With Mayo Clinic at its heart, the Destination Medical Center
initiative will be a catalyst to position Rochester, Minnesota, as the
world’s premier “destination for health and wellness.”
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DMC RESOURCE GUIDE22
DRAFTFREQUENTLY ASKED QUESTIONS/RESOURCES
WHAT IS DMC?
With Mayo Clinic at its heart, Destination Medical Center (DMC) is a 20-year economic
development initiative to position Rochester, Minnesota, as the world’s premier
destination for health and wellness.
With more than $5 billion in projected private investments over the next 20 years,
DMC will provide the public financing necessary to build the public infrastructure and
other projects needed to support the vision. DMC represents the largest economic
development initiative in Minnesota and one of the largest in the United States.
WHO IS INVOLVED WITH DMC?
DMC is built upon a collaboration with a variety of supporters, partners, and
stakeholders. Organizations and community members working together and sharing
ideas play a vital role in making DMC a reality. They include the State of Minnesota;
Olmsted County; the City of Rochester, and other local jurisdictions; Mayo Clinic;
Rochester Area Economic Development, Inc.; Rochester Area Chamber of Commerce;
Rochester Downtown Alliance; Rochester Convention and Visitors Bureau; the University
of Minnesota–Rochester; a mix of arts, cultural, and civic groups; and many more.
WHAT IS THE DMC TIMELINE?
The DMC Development Plan—a 20-year development plan that serves as a strategic
business plan and framework for implementation of the initiative—was adopted in
April 2015. DMC is currently in the implementation phase. Priorities identified include
Discovery Square, Heart of the City, and Transportation.
WHAT TYPES OF PROJECTS ARE INVOLVED IN DMC?
The DMC vision is: “To provide a high-quality patient, companion, visitor, and community
member experience to become the world’s premier destination medical community.”
Downtown Rochester will be an epicenter of growth in development and services to
create a vibrant, world-class destination community. The growth will be centered around
key DMC development areas:
WHAT ARE THE PUBLIC INVESTMENTS IN DMC?
A total of $585 million was allocated by state statute for this initiative. It breaks down
as follows:
• State of Minnesota—$424 million
- Following an initial $200 million of private investments, including
required local matching contributions, the state will pay $2.75 million
annually for general infrastructure and $0.45 million for transit
infrastructure for every $100 of private money spent to continue to
build Rochester as a global medical destination.
• City of Rochester—$128 million
• Olmsted County—$33 million
Public dollars will not be used to pay for Mayo Clinic buildings and/or programs.
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• Livable City/Retail/Dining
• Sports, Recreation, and Nature,
Hospitality/Convention
• Commercial Research and Technology
• Health and Wellness
• Learning Environment
• Arts and Culture/Civic/Entertainment
• Transportation
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DMC RESOURCE GUIDE23
DRAFTCONTACTS
The DMC Economic Development Agency is your central point of contact for your
development-related needs within the DMC District. If you have a development-
related question, please contact the DMC EDA at info@dmc.mn or call (507) 216.9720.
We hope that your experience with DMC is a pleasant one.
DMC EDA STAFF
Executive Director
Lisa Clarke
lisaclarke@dmceda.org
(507) 216-9720
Administrative Assistant
Cody Pogalz
codypogalz@dmceda.org
(507) 216-9722
Director of Economic Development and Placemaking
Patrick Seeb
patrickseeb@dmceda.org
(507) 216-9723
Director of Finance
Mitch Abeln
mitchellabeln@dmceda.org
(507) 216-9725
Director of Communications and Community Relations
Mary Welder
marywelder@dmceda.org
(507) 216-9724
Mayo Clinic Planning Services
Jamie Rothe
jamie.rothe@mayo.edu
(507) 284-2590
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DMC RESOURCE GUIDE24
DRAFTAWARDS & RECOGNITION
World Renowned And Globally Recognized
The City of Rochester and the State of Minnesota are continually recognized as
some of the best places to live in America. With the world-renowned Mayo Clinic
in Rochester’s backyard, DMC creates a unique opportunity to position Rochester,
Minnesota, as a truly global destination for healing and wellness, drawing
patients and visitors to Minnesota and stimulating additional growth of the state’s
biosciences and technology sectors.
➤ Rochester ranks second among the Top 100 Best Places to Live in America
– Livability
➤ Rochester ranks as #1 Best Midsize City for Women in the Workforce
– NerdWallet
➤ Mayo Clinic ranked as the #1 Best Hospitals 2014–15
– US News & World Report
➤ Rochester ranks in the top ten Best Affordable Places to Live
– Livability (2015)
➤ Rochester ranks as one of The Ten Easiest Cities to Find a Job
– ZipRecruiter (2014)
➤ Minnesota ranks in the Top Ten Best States for Business & Careers
– Forbes (2014)
➤ Minnesota ranks as #1 in the United States in Child Wellbeing
– Annie E. Casey Foundation 2015 Kids Count Data Book
➤ Rochester ranks among one of the 16 Best Places to Live in America: 2015
– Outside magazine (2015)
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DMC RESOURCE GUIDE25
DRAFT
DMC Economic Development Agency
RESOURCE GUIDE | JANUARY 2016
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Heart of the City: Public Space Design Update
To: DMCC Board of Directors
From: EDA Staff
Background:
The Destination Medical Center Economic Development Agency (DMC EDA) staff has been working with
DMCC board of directors and City of Rochester to advance the design of the public spaces for Heart of
the City.
Rochester City Council reviewed and approved the proposed RFQ/RFP process and Community Advisory
Committee concept at the January 25th City Council meeting. Subsequently the RFQ was distributed and
promoted in the design community, locally, regionally, and nationally. Eleven design teams submitted
letters of interest and qualification.
Moreover, more than 90 individuals submitted their interest in serving on the Community Advisory
Committee.
Next Steps:
Applications for the Community Advisory Community were reviewed by the committee co-chairs against
the pre-determined criteria for committee make-up. A very diverse slate of candidates was presented
to and approved by City Council. The first meeting of the committee is Tuesday, April 12, 2016.
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Chateau Theatre Task Force: Update
To: DMCC Board of Directors
From: EDA Staff
Background:
The Chateau Theatre Reuse Task Force was established in October 2015. It developed an 18 month
work plan with an end goal of recommending how the Chateau Theatre will be reused, financed,
governed, and managed.
Progress:
• Task Force Establish, Oct 2015
• Draft of Values and Vision for future of Chateau Theatre developed
• City finalized purchase of the property, Jan 2016
• Input on future use of the venue gathered during or after three public events held at the
Theatre
• Task Force conducted site visits to two theaters (Sheldon, Redwing; Paramount, St. Cloud) to
gain an understanding of lessons learned.
• City Council has approved RFP for consultants to review programmatic limits and opportunities
based on the venue size, location, and other constraints.
Next Steps:
• Additional real or virtual site visits with 6-8 comparable venues;
• Formal public input and community engagement process will be launched;
• Retain expert consultant to review programmatic limits and opportunities based on the venue
size, location, and other constraints.
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St. Marys Place: Update
To: DMCC Board of Directors
From: EDA Staff
Background:
While the status of the proposed development on 13th avenue and 2nd street has changed, DMC EDA is
committed to developing a methodology to design the public realm/public infrastructure for the entire
district. With City agreement and support, EDA hosted a work session of city staff leadership, members
of City Council, major property owners in the area, Mayo Clinic, and volunteer leadership from the three
nearby neighborhood organizations, with the goal of developing an agreed upon set of goals and design
process.
The work session took place on Wednesday, March 16th, 2016. It was well attended and participants
were very engaged. There was general consensus on the importance of designing as much of the public
realm/public infrastructure of the entire sub-district as possible, inclusive of pedestrian circulation (eg,
street level, subway, and skyway), streetscape/street design, connections to the neighborhoods, and
parking.
Further, there was agreement that this should occur in a timely way to take advantage of market
interest and development opportunities.
Next Steps:
Finalize the proposed design process for consideration by the City Council. Following review,
modification, and acceptance of this approach, initiate the design process.
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A.
Destination Medical Center Corporation
Resolution No. __-2016
Background Recitals
A. The Destination Medical Center Corporation (“DMCC”) adopted the Development Plan on April
23, 2015, which identified proposed climate and energy sustainability visions for the Destination
Medical Center initiative:
a. Climate: To achieve carbon neutrality across the Destination Medical Center; and
b. Energy: To implement the most progressive, responsive and resilient district energy
network in the country.
B. With support from the McKnight Foundation, the Center for Energy and Environment (“CEE”)
entered into a planning process with stakeholders and the community in order to make
recommendations with respect to a coordinated strategy on energy and sustainability. That
report, entitled “DMC Coordinated Energy Plan Recommendations” (“Energy Plan Report”) was
presented by CEE to the DMCC on December 17, 2015.
C. An integral recommendation of the Energy Plan Report is the establishment of an energy
integration committee. This technical committee would be composed of representatives of the
City of Rochester (the “City”), Olmsted County, Rochester Public Utilities (“RPU”), Minnesota
Energy Resources (“MERC”), Mayo Clinic, and the Destination Medical Center Economic
Development Agency (“DMC EDA”), with the purpose of making recommendations and taking
practical, coordinated actions to ensure successful implementation of the climate and energy
vision within the development district; providing ongoing accountability to the DMCC Board;
providing transparency to the public; helping developers with easy-to-use technical assistance;
and coordinating utility and City programs.
Resolution
NOW, THEREFORE, BE IT RESOLVED, by the Destination Medical Center Corporation
Board of Directors, that the Board will strive to achieve the recommendations in the CEE Energy Plan
Report with regard to
1) Establishing the DMC as a Sustainability Energy Zone;
2) Capturing all cost effective efficiency improvements in the Sustainable Energy Zone;
3) Optimizing district energy investments that serve buildings within the Sustainable Energy Zone
for reliability, energy cost, and carbon saving;
4) Maximizing cost-effective renewable energy opportunities within the Zone; and
5) Creating a culture of sustainability.
BE IT FURTHER RESOLVED, that a DMC EDA facilitated technical advisory committee,
known as the Energy Integration Committee, be established, as recommended in the CEE Energy Plan
Report to plan and implement actions and processes to achieve the recommendations in the CEE Energy
Plan Report; and that representatives of the entities set forth above be invited to join.
BE IT FURTHER RESOLVED, that the Board requests regular updates from the technical
advisory committee as it undertakes its work, including an initial implementation plan by the end of 2016.
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DMC Dashboard: Update
To: DMCC Board of Directors
From: EDA Staff
Background:
At the last DMCC Board meeting, EDA staff shared that work was underway with Wilder Research to
develop a metrics dashboard for the DMC initiative. Since our last board meeting EDA staff has held
multiple meetings with Wilder to co-develop the goals, outcomes, and indicators that will build the core
of the dashboard. The dashboard goals are directly linked to the five goals of the DMC development
plan. The current draft of the dashboard is attached.
EDA Staff presented a draft of the metrics dashboard to the EDA Board and received valuable insight
upon which further refinement of outcomes and indicators was made.
Next Steps:
EDA Staff will continue to work with Wilder to finalize the underlying data sources for the various
indicators and receive Wilder’s final report on recommendation for how best to present the data.
The next phase is to populate the Dashboard with historical data, and create the visual representation of
the dashboard.
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Marketing Plan: Update
To: DMC Corporation Board of Directors
From: EDA Staff
DMC EDA has contracted Clarity Coverdale Fury (CCF), a Minneapolis-based marketing firm, to assist
with developing a marketing plan for the DMC initiative.
Goals:
The goals of this phase of the DMC marketing efforts include:
• Create messaging to articulate the current aspirational Rochester story
• Identify key messages around DMC vision in fulfilling Rochester's future
Process of CCF:
CCF performed extensive research and conducted stakeholder interviews with key stakeholders:
• City of Rochester
• Market Rochester
• Mayo Clinic
• Industry Leaders
• Economic Developers
• Entrepreneurs
• DMC Corporation Board Members
Next Steps:
CCF is now developing messaging based on these discussions and creating a marketing plan with a
strong focus on the DMC District particularly Discovery Square. The final phase of their work will include
a marketing plan which will be shared with the DMC EDA board and the DMCC Board in May.
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TO: Jim Bier, Treasurer
Kathleen Lamb, Attorney
FR: Dale Martinson, Assistant Treasurer
Date: March 17, 2016
RE: February 2016 Financial Summary
The attached financial summary for February reflects activity to date totaling $124,441 of 2016
budgeted expenditures of $4,260,812. The total remaining 2016 budget of $ 4,136,371
represents 97% of the original budget remaining with 10 months (83%) of the year remaining.
In the DMCC direct costs, the most significant charge to date is insurance coverage for the
organization totaling 12,206. The EDA costs are billed both through Master Application for
Payments (MAPs) for outside contractors and working capital loan advances for EDA payroll and
other operational expenses. EDA Operational expenses to date amounted to $51,743 with
contract payments through the MAP process totaling $59,847. Details of those contract
payments are found on the second page of this summary as provided by the EDA.
Unaudited numbers for the total 2015 budget results show a total of $3,223,284 of the
$4,363,456 available budget being spent during 2015. That budget total includes the $565,653
budget amount encumbered from 2014 to finish out the DMCC Plan creation.
Please feel free to contact me with any questions or concerns.
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Destination Medical Center Corporation
Financial Budget Summary
February 2016
2016 Approved Curent Month February 2016 Amount Percent
Approved Budget February 2016 YTD Remaining Remaining
DMCC Board Expenses 36,612 36,612 100%
General Administrative Services 180,600 12,723 12,851
Professional Services 780,600 780,600 100%
City Expenses 275,000 ‐ 275,000 100%
Subtotal DMCC 1,272,812 12,723 12,851 1,092,212 86%
Third Party Costs ‐ DMC EDA *
Payroll, Staff, Administration & Benefits‐EDA 777,000 33,526 53,546 723,454 93%
DMC EDA Operational Costs 163,000 3,336 7,368 155,632 95%
Economic Development Outreach & Support 495,000 5,730 14,588 480,413 97%
Professional Services 1,148,000 13,517 36,089 1,111,911
Miscellaneous Expenses 405,000 405,000 100%
Subtotal EDA 2,988,000 56,109 111,590 2,876,410 96%
Total DMCC 2015 4,260,812 68,832 124,441 4,136,371 97%
‐
DMCC Working Capital Note 1,000
* See Attached Contract Commitments for EDA Portion EDA Working Capital Note 50,000
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MAP for undisputed labor, services, or materials
Master Application For Payment Detail: Feb 2016
DMC EDA P&L Description Vendor Contract #Previous
Billings
Current Work in
Place
Total Work to
Date
EDA Staff Costs 1,803.15$ -$ 1,803.15$
Payroll Smart-Fill NA 1,803.15$ -$ 1,803.15$
EDA Operational Costs 4,031.62$ 3,336.00$ 7,367.62$
Website, Drafting, Hosting Brandhoot 4043 2,580.00$ 3,336.00$ 5,916.00$
Website, Drafting, Hosting Brandhoot NA 210.00$ -$ 210.00$
IT Hardware & Support Data Smart 4044 355.99$ -$ 355.99$
IT Hardware & Support Data Smart 4044 777.75$ -$ 777.75$
IT Hardware & Support Data Smart 4044 107.88$ -$ 107.88$
Econ Dev Outreach & Support 8,857.50$ 5,730.00$ 14,587.50$
Conferences, Meetings, Travel & Sponsorships DEED NA 5,000.00$ -$ 5,000.00$
Outreach, Print & Collateral Fuse Digital 4042 1,755.00$ 270.00$ 2,025.00$
Miscellaneous Econ Dev Costs Inspire MN, LLC NA 752.50$ 5,460.00$ 6,212.50$
Conferences, Meetings, Travel & Sponsorships RCTC NA 600.00$ -$ 600.00$
Conferences, Meetings, Travel & Sponsorships Rochester Downtown Alliance NA 750.00$ -$ 750.00$
Professional Services 22,572.52$ 13,516.50$ 36,089.02$
Other Contracting Services Brandhoot 4016 4,367.52$ -$ 4,367.52$
Other Contracting Services Inspire MN, LLC 4041 5,705.00$ 2,642.50$ 8,347.50$
Other Contracting Services MarketaBelle 4055 -$ 4,374.00$ 4,374.00$
Other Contracting Services Wilder Research 4054 -$ 6,500.00$ 6,500.00$
Other Contracting Services University of Minnesota 4053 12,500.00$ -$ 12,500.00$
Miscellaneous Costs -$ -$ -$
None None -$ -$ -$
Project Total 37,264.79$ 22,582.50$ 59,847.29$
3/1/2106
Destination Medical Center Economic Development Agency
Master Application for Payment
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MAP for undisputed labor, services, or materials
Application Details Statement of Project
Application Number:Feb 2016 Original 2016 Budget 2,988,188.00$
Application Date:3/1/2106 Current 2016 Budget 2,988,188.00$
Period From:2/1/2016
Period To:2/29/2016 Total completed to date via MAP process 59,847.29$
Retainage to Date -$
Sources of Funds:Total completed via MAP process less retainage 22,582.50$
City Contribution 22,582.50$ Less previous Map requests 37,264.79$
--$ Current MAP Request Amount Due 22,582.50$
--$
--$ 2016 operational expenses funded to date 51,743.08$
Total Sources 22,582.50$ Total 2016 City Contribution 111,590.37$
% of 2016 Budget 3.7%
Approvals
Uses of Funds:
EDA Staff Costs -$
EDA Operational Costs 3,336.00$
Econ Dev Outreach & Support 5,730.00$ EDA:Date
Professional Services 13,516.50$
Miscellaneous Costs -$
Total Uses 22,582.50$ DMCC:Date
Master Application for Payment
Destination Medical Center Economic Development Agency
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B.
DESTINATION MEDICAL CENTER CORPORATION
RESOLUTION NO. __-2016
Ratifying Execution and Transmission of April 1 Report to the Minnesota Department of
Employment and Economic Development
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 must be in the form
prescribed by DEED and include any documentation and supporting information regarding the
expenditures that DEED requires. By August 1 of each year, DEED must determine the amount
of expenditures for the previous year.
B. Staff from the City of Rochester and the Destination Medical Center Economic
Development Agency prepared the report, due on April 1, 2016, attached hereto as Exhibit A.
On behalf of the DMCC and Mayo Clinic, the Chair of the DMCC submitted the report on a
timely basis to DEED.
RESOLUTION
NOW, THEREFORE, BE IT RESOLVED, by the Destination Medical Center
Corporation Board of Directors that it ratifies and confirms the execution and transmission of
the report to the Minnesota Department of Employment and Economic Development (“DEED”)
as required by Minnesota Statutes, Section 469.47.
830960.DOCX
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