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HomeMy WebLinkAbout11/2/2017 DMCC Board of Directors Meeting - PresentationProject Updates © 2017 DMC © 2017 DMC PROJECT NAME 1 Residence at Discovery Square 10 First Avenue Flats 2 Titan-Opus Project 11 Chateau Theatre 3 Mortenson Project 12 Heart of the City Public Space 4 Associated Bank 13 Alatus 5 Titan Hilton Hotel 14 Ronald McDonald House 5a Parking Ramp #6 15 501 on First 6 The Bloom Project 16 Conley-Maass Building 7 Flats on 4th 17 Mayo Civic Center 8 Lofts at Mayo Park 18 Creative Salon Site 9 Broadway & Center 19 Hyatt House 13 14 1 3 15 16 2 7 817 6 4 12 11 5 9 10DMC District 19 18 5a © 2017 DMC PROJECT NAME 1 Titan Hilton Hotel 2 Alatus 3 Urban on First 4 Mortenson 2 3 1 4 DMC Funded Projects Titan Hilton Hotel Development Project Update © 2017 DMC Broadway in Downtown Waterfront Titan Hilton MIXED USE BUIDLING 15,000 Sq. ft. Retail, 264 Hotel Rooms, 630 Parking Spaces (City) CAPITAL INVESTMENT $125 MILLION Property tax increase from $23,058 to $977,250 per year. $3,685,000 Approved Tax Increment Financing. 11th FLOOR CONCRETE POUR NOVEMBER 2nd Temporary roofing to be installed in early December 120 ONSITE WORKERS AT HEIGHT OF PROJECT there will be more than 300 workers on site. © 2017 DMC DEVELOPMENT UPDATE Photo taken on 10/17/17 ALATUS LLC Development Project Update © 2017 DMC 2nd St. SW in Saint Marys Place Alatus LLC MIXED USE BUIDLING 21,000 sq. ft. retail, 347 rental units, 560 parking spaces CAPITAL INVESTMENT $115 MILLION Property tax increase from $136,606 to $1,250,000 per year. $10.5 Approved Tax Increment Financing. FINANCING SECURED Closing date is mid-December SITE WORK UNDERWAY Pollution remediation and property demolition complete GROUND BREAKING IS DECEMBER 2017 © 2017 DMC DEVELOPMENT UPDATE Photo taken on 10/31/17 Urban on First Titan / Opus Update © 2017 DMC 1st Ave. in Discovery Square Urban on First MIXED USE BUIDLING 9,000 Sq. ft. street level retail, 156 market rate rental units, 156 parking spaces CAPITAL INVESTMENT $38 MILLION Property tax increase from $70,158 to $472,000 per year. $3.8 Approved Tax Increment Financing. PERMITTING & ENTITLEMENT REQUIREMENTS MET GROUND BREAKING AND CONSTRUCTION Expected to occur in January 2018 FINANCING SECURED DEVELOPMENT UPDATE © 2017 DMC 4th Street SW Mortenson Phase 1 Development Project Update © 2017 DMC Discovery Square Development Mortenson Phase 1 SIGNATURE NEW BUILDLING IN DISCOVERY SQUARE 89,000 sq. ft. of Life Science Space, 80,000 rentable sq. ft. CAPITAL INVESTMENT $35 MILLION Property tax increase from $68,136 to $485,580 per year. $4.9 Approved Tax Increment Financing. MARKETING AND TENANT RECRUITMENT Process in full gear. SCHEMATIC DESIGN COMPLETED Design development underway. GROUND BREAKING IS NOVEMBER 2, 2017 Site work underway. © 2017 DMC DEVELOPMENT UPDATE Photo taken on 10/17/17 © 2017 DMC Public Realm Public Realm 1 Heart of the City 2 Chateau Theatre 3 Saint Marys Place 4 Discovery Walk 1 2 3 4 Next Steps Heart of the City •Integration of project design with Chateau Theatre, Wells Fargo, and Titan/Harbor Bay •Determine project priorities/phasing, and construction timetable •Identify and secure funding streams and financing strategy •Develop governance, management, and operations program •Preliminary CIP Authorization © 2017 DMC Public Realm UPDATE Next Steps Chateau Theatre •Develop a strategy to diversify capital funding sources •Ensure a sustainable ongoing management, programming, and operations plan •Build relationships to adjacent development •Consider ideas for interim use and activation •Preliminary CIP Authorization © 2017 DMC Public Realm UPDATE Next Steps Saint Marys Place •Share application of these design concepts with upcoming projects such as 2nd Street reconstruction and private development •Prototype/temporary demonstrations of project ideas •CIP for street banners, street furniture, and district identity © 2017 DMC Public Realm UPDATE Next Steps Discovery Walk •Extend Heart of the City concepts south to Soldiers Field •Design process to inform the redesign of 4th Street •Schematic design to be completed by the end of 2017 or 1st quarter 2018 •CIP Authorization © 2017 DMC Public Realm UPDATE Nov 2, 2017 DMCC Board Meeting Integrated Studies Update Key Findings -Parking 1 16,000 additional parking spaces needed DMC District: •3000 residential •4000 patient/visitor/retail Edge of downtown: •6000-7000 spaces Remote Park and Rides: •2000-3000 spaces Key Findings -Transit 2 •Potential transit circulator market of up to 25,000 rides per day. •Capital costs range from an estimated $90 million for a BRT service to $265 million for a rail service to $490 million to an elevated system. •Finalizing analysis of the effectiveness of serving the three transit markets •IBM and Local Motors (Olli) have teamed to pursue an autonomous, accessible vehicle pilot project Key Findings –Streets 3 •Repurposing of two lanes on 2nd St South for transit use (St Marys to Government Center) is being evaluated •A backbone of pedestrian oriented streets (Heart of the City and Discovery Walk) is being planned along with the City Loop supplemented by other pedestrian corridors •Bicycle travel corridors have been identified to create a connected network of bike facilities throughout downtown to connect the River Trails system and City Loop to key destinations in the District. Key Findings –City Loop 4 •Route options are being field studied to determine best routing options given existing street right of way widths and roadway context (driveways, on street parking, boulevard plantings, crossing safety, etc.). •Close coordination is occurring with Heart of the City, Discovery Walk and 4th Street Reconstruction planning. Key Findings –Travel Demand Mgmt 5 •The City has been working with a committee of downtown stakeholders to identify a Transportation Management Association framework •Two pilot Travel Demand Management (TDM) efforts have been completed; City staff and HGA employees. •Developing a menu of services to offer employers and their employees. •RFP under development to select a consultant to build a user- friendly travel/trip matching web based app Key Findings –Capital Costs 6 •Preliminary concept level cost estimates for the four (4) ITS scenarios range from $400m to $1 billion dollars; anticipated cost for recommended alternative will likely be in the middle of that range. •Potential funding sources are being identified. At this time, it is anticipated that there will be a public funding gap that will need to be addressed. Private funding commitments remain uncertain. Next Steps -Schedule 7 •November: ITS Team and City Staff are currently developing a recommended “hybrid” comprised of elements from the four scenarios. •December: Complete documentation and presentation materials •First quarter 2018: Present recommendation to DMCC Board, City Council and the public. Metrics Dashboard © 2017 DMC DMC Development Plan Goals © 2017 DMC Create a comprehensive strategic plan Leverage the public investment of $585 million Create approximately 30,000 new jobs Generate approximately $7.5 -$8.0 billion in new net tax revenue Achieve the highest quality patient, companion, visitor, employee, and resident experience Goal 1. Create a comprehensive strategic plan. © 2017 DMC 2014-2015 DMC Development Plan UMR Campus Master Plan Sustainable Energy Options 2016 Discovery Square Project Plan Mayo Clinic Five-Year Plan Chateau Theatre proposal 2017 DMC District Design Guidelines Heart of the City Public Realm Saint Marys Place Public Realm Goal 2. Leverage the public investment to attract more than $5 billion in private investment. 2015-2035 $585 Million Public $5.5 Billion Private Approximately 1:10 Ratio Goal 2. Leverage the public investment to attract more than $5 billion in private investment. Estimated Administrative Costs 2%Public Investment 6% Private Development 25% Mayo Clinic 67% Private Investment Non Mayo Costs 25% Public Infrastructure 6% Mayo Clinic 67% Through 2017 Operating Costs 2% Goal 2. Continued Goal 2. Continued Goal 2. Continued 1,798,520 2,773,353 - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 Actual Phase 1 Targets Approved Development to Phase 1 Targets (SF) Overall - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 Approved Development to Date Compared to Phase 1 Targets Actual Phase 1 Targets 2015-2020 Goal 2. Continued 0 100 200 300 400 500 600 700 800 900 1000 1100 Apartment Units (#)Apt Unit Targets Hotel Units (#)Htl Unit Targets Approved Unit Comparison to Phase 1 & 2 (0-10 yrs) Actual Phase 1 Targets Phase 2 Targets Housing & Hotel 2015-2025 Goal 3. Create approximately 30,000 new jobs. (1,500 jobs/year) 86,053 87,474 89,359 86,000 86,500 87,000 87,500 88,000 88,500 89,000 89,500 90,000 2014 2015 2016 Total Employment in Rochester, MN 1,421 1,885 Sources: DEED, Quarterly Census of Employment & Wages, Longitudinal Employer-Household Dynamics, U.S. Census Bureau Goal 4. Generate approximately $7.5 -$8.0 billion in new net tax revenue. New net tax revenue includes •Personal income tax •State sales & use tax •City property tax •County property & sales tax $50 $50 $54 $57 $50 $51 $52 $53 $54 $55 $56 $57 $58 2013 2014 2015 2016 Mi l l i o n s City Property Tax Revenue (2013-2016) $194 $199 $212 $190 $195 $200 $205 $210 $215 2013 2014 2015 Mi l l i o n s County Property & Sales Tax Revenue (2013-2015) $18,322,004 $5,188,357 Goal 5. Achieve the highest quality patient, companion, visitor, employee, and resident experience. 2011 2011 Goal 5. Continued Tools and programs designed to elevate the patient, companion, visitor, employee, and resident experience. Examples include: Tool / Program Experience Accreditation Program Rochester Now App Prototyping the Public Realm Entrepreneur Experience Partner (s) RCVB Mayo Clinic & RCVB RDA, RAC RAEDI, Collider, Mayo Clinic Audience Visitors Visitors & Residents Community Entrepreneurs 1 DMC EDA Marketing Highlights •Increase in web traffic from Geographies outside of Minnesota –Top states include California, New York, Illinois, Texas and Florida •LinkedIn lead generation is a new, successful tactic –Obtaining leads from companies like Guggenheim Partners and Deloitte -and industries such as Venture Capital & Private Equity, Construction, Biotechnology, Hospital & Healthcare and Nonprofit Organization Management –Click through rate for lead generation content is 0.68% (industry benchmark is 0.3-0.4%) •DMC Storyteller videos launched in June continue to populate social media -with associated boosted posts proving successful with strong engagement and an increase in followers. –Storyteller videos are hosted on DMC website and DMC YouTube channel •Participating at key conferences and trade missions and hosting seminars/events has engaged target audiences © 2016 CCF 2018 DMC Funding © 2017 DMC Destination Medical Center –Public Funding Structure •$585 Million from 5 major sources •Each source has: –formula for release –annual dollar cap –relationship to other sources, and –use restrictions 2018-2022 Capital Improvement Program Streets & Sewers Private DevelopmentTransportationPublic Realm Operations © 2017 DMC Items for Action: 2018 Items for Introduction: 2019-2022 Approval Status Proposed 2018 CIP Final Approval 12 Not Final Must Return to DMCC 8 No Action Required 11 31 Initiatives $22,191,908 © 2017 DMC 1, 2, 20, 21, 22, 24, 25, 26, 27, 28, 29 3, 6, 7, 15, 17, 18, 19, 23 4, 5, 8, 9, 10, 11, 12, 13, 14, 16, 30, 31 By Sources Proposed 2018 CIP © 2017 DMC 8,772,815 3,000,000 7,169,093 3,250,000 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 State County City City Utility Funds City Utility Funds DMC $18,941,908 Total = $22,191,908 3,001,906 14% $6,350,000 30% $3,590,002 17% $8,050,000 39% By Category Proposed 2018 CIP Public Realm Transportation Operations © 2017 DMC Streets & Sewers Streets & Sewers $8,050,000 Proposed 2018 CIP © 2017 DMC •Essential public infrastructure projects to provide capacity for private investment •Critical to complete prior to private investment •DMC investment leveraged with City utility funds Streets & Sewers Map Transportation $6,350,000 Proposed 2018 CIP Complete Studies Integrated Transit Studies Initiate Projects City Loop Bike Lanes Transit Streets Property Acquisition © 2017 DMC Public Realm $3,590,002 Proposed 2018 CIP Heart of the City Design Chateau Theatre Design Discovery Walk Design Saint Marys Place Capital © 2017 DMC Operating Costs $3,001,906 Proposed 2018 CIP •Contributions to DMC Corporation for DMCC expenses. •$355,500 •Contributions to DMC Corporation for EDA expenses. •$2,496,406 •City of Rochester Administrative costs for DMC project. •$150,000