HomeMy WebLinkAbout2/8/2017 DMCC Board of Directors Meeting - Agenda and Meeting PacketDESTIN ATION
MEDICAL CENTER
CORPOR ATION
(DMCC)
BOARD MEETING
9:30 A.M. WEDNESDAY, February 8, 2017
MAYO CIVIC CENTER - ROCHESTER
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DESTINATION MEDICAL CENTER CORPORATION (DMCC)
BOARD MEETING
Wednesday, February 8, 2017
9:30 A.M.
AGENDA
Page
I.Call to Order
II.Roll Call
III.Approval of Agenda
IV.Approval of Minutes: December 15, 2016………………………………………………………………………………………………………..1
V.Public Comment Period
VI.Chair’s Report
A.Resolution A: Approving the Establishment of an Executive Committee ……………………………..7
and Outline of Duties
B.Resolution B: Approving the February 15 Report to the Legislature…………………………………...9
VII.Public Hearing
A.Proposed Modification of the Development District
with Respect to the Alatus Project, Located on 2nd Street SW …………………………………………45
B.Resolution C: Approval of the Proposed Modification of the Development District
VIII.Project Update (City of Rochester, EDA)
A.Transportation Management: Findings and Recommended Next Steps………………………………55
B.Use of Tax Increment Financing Funds for Transit and Public Infrastructure………………………...175
C.Urban on First: Proposed Titan/Opus Development
between First Avenue SW and Broadway………………………………………………………………...179
Resolution D: Approving Urban on First as a Public Infrastructure Project, with Conditions………..193
D.Mortenson Project: Proposed Project in Discovery Square
(Presenter: Jeremy Jacobs, Mortenson)…………………………………………………………………..201
E.Subdistrict Update
1.Heart of the City: Public Realm Design (Presenter: Jon Buggy, RSP Architects)……………….209
IX.DMCC 2017 Budget: Year to Date Update……………………………………………………………………………………………………….255
X.Meeting Schedule:
A.Next Regular Meeting: April 27, 2017 at 9:30 A.M.
XI.Adjournment
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DESTINATION MEDICAL CENTER CORPORATION
BOARD OF DIRECTORS
MINUTES
December 15, 2016
I. Call to Order. Vice Chair R.T. Rybak called the meeting to order at 9:40 a.m. at the Mayo Civic Center,
Riverview Suite, located at 30 Civic Center Drive SE, Rochester, MN 55904.
II. Roll Call. In attendance were R.T. Rybak, Council Member Mark Hickey, Jim Campbell, Commissioner
Jim Bier, Mayor Ardell Brede and Michael Dougherty.
III. Approval of Agenda. Commissioner Bier moved approval of the Agenda. Mr. Campbell seconded.
Ayes (6), Nays (0), Motion carried.
IV. Approval of Minutes: October 27, 2016. Commissioner Bier moved approval of the Minutes of the meeting
held on October 27, 2016. Mayor Brede seconded.
Ayes (6), Nays (0), Motion carried.
V. Public Comment Period. Vice Chair Rybak invited members of the community to offer comments.
Jesse Welsh, Rochester resident, spoke in favor of the proposed Alatus development project in Saint Marys
Place, citing the high standards of design and public engagement demonstrated by the developer.
Mark Bransford, Rochester resident, spoke about the proposed Alatus development project, noting his
concern regarding the compatibility of the development with the Folwell neighborhood.
Mary Jo Majerus, Rochester resident, stated her opposition to urban sprawl, and, as it related to the Alatus
project, and voiced support for infill of the city. Ms. Majerus noted her positive experience with local
developers, including Alatus, LLC.
Christine Schulze, Rochester resident, spoke regarding the proposed Heart of the City North development
project and the importance of its progression through the planning, zoning, and historic preservation
processes.
John Kruesel, Rochester resident, spoke on behalf of the Rochester Conservancy regarding the Hotel
Carlton-Days Inn site and his concern on the current state of public engagement in Rochester.
Richard Olen, a resident of Shoreview, MN, supported elevated transit options and stated the pace of transit
planning is not moving fast enough.
VI. Chair’s Report. On behalf of Chair Smith, Vice Chair Rybak noted the announced pending retirement of
Rochester City Administrator Stevan Kvenvold. Vice Chair Rybak also noted that the DMCC’s regular
meeting schedule will be quarterly in 2017.
VII. Project Update. Gary Neumann, Terry Spaeth, Lisa Clarke, and Patrick Seeb offered the project update.
A. Alatus: Proposed Development on 2nd Street SW. Ms. Clarke reported that the EDA Board
recommended the Alatus project for approval, and its review was available in the DMCC Board
packet, as well as the City of Rochester Administration’s letter of support for the project. Mr.
Dougherty requested a financing term sheet. Mr. Campbell suggested that the approval of the
project be contingent on an acceptable financing structure. Vice Chair Rybak invited Bob Lux of
Alatus, LLC to comment on the project financing. Mr. Lux expressed confidence in the project
financing, noting the loan and equity proportions of the project.
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Commissioner Bier noted the DMC goals related to tax revenue generation and job creation. Vice
Chair Rybak stated his support for the project, and the need for transit solutions, particularly as
projects come forward for review.
Resolution A: Approval of the Alatus Project as a Public Infrastructure Project, Pending Modification
of the Development District.
Mr. Dougherty offered an amendment to the resolution which made approval of the Alatus project
contingent upon Alatus, LLC providing evidence of financing satisfactory to the Board within 90 days.
This period of time coincides with the City’s development assistance agreement. The amendment
was accepted as a friendly amendment.
Mayor Brede moved approval of the resolution as amended. Mr. Dougherty seconded.
Ayes (6), Nays (0), Motion carried.
Vice Chair Rybak moved that City and EDA staff be directed to explore the feasibility of directing
excess tax increment financing from the Alatus project to transit and transit-oriented development.
He asked that an update come back to the Board on January 26, 2017. Council Member Hickey
expressed his support for directing staff to examine the use of tax increment financing for transit.
Vice Chair Rybak moved approval. Mr. Campbell seconded.
Ayes (6), Nays (0), Motion carried
B.Analysis of Consistency with the Development Plan.
1.Titan/Opus: Proposed Development between First Avenue SW and Broadway:
The project review is underway.
2.Heart of the City North: Proposed Development at West Center Street and First Avenue NW:
The project review is underway.
Mr. Seeb noted that these projects are not up for approval today, but that both projects are
continuing to move through the review process.
Vice Chair Rybak asked about the status of other projects. Mr. Neumann stated that the Bloom
International Realty project continues to move through the process. An update will likely be ready for
the DMCC Board meeting on April 27, 2017. Mr. Campbell requested that the Board receive regular
updates in between Board meetings to understand the status and roadblocks for pending projects.
Vice Chair Rybak commented that the Board wanted to push projects along as quickly as possible.
Commissioner Bier agreed, citing the rising costs of interest and construction.
C.Subdistrict Update.
1.Heart of the City.
a.Chateau Theatre. Mayor Brede directed the Board to the Chateau Theatre update
available in the Board packets. He described some of the work of the various
consultants and discussed the potential interior upgrades that could happen, as well
as exterior cosmetic and efficiency upgrades that have been made.
Mr. Neumann stated that the City Council had requested that additional work be done
in the areas of governance, funding options and coordination of work with Heart of the
City. He noted the complementary work of the Chateau Theatre Re-Use Task Force
and consultants and the work of the Heart of the City Community Advisory Committee.
Next steps for the Chateau Theatre, including a project timetable, will be developed
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by City and EDA staff.
Mr. Campbell and Vice Chair Rybak discussed the need for a visionary reimagining of
the Chateau Theatre as it relates to the surrounding Heart of the City subdistrict.
b.Public Space Design. The work of the RSP Architects-led team continues and will be
presented in more detail in January.
2.Saint Marys Place: Mr. Seeb gave an update on planning in Saint Marys Place, including the
design concepts that EDA and City staff, as well as other stakeholders, have been examining.
Public infrastructure design options include a street-level “arcade” system, frequent and
prominent crosswalks, transit nodes, strengthening an east-west bike connection between the
downtown core and Saint Marys Place, and pedestrian-friendly streets.
VIII.DMCC 2016 Budget: Year to Date Update. Commissioner Bier directed the Board to the finance update in
the Board packet, stating that the DMCC and DMC are under budget for 2016.
IX.2017 Meeting Schedule. Chair Rybak directed the Board to the quarterly 2017 regular meeting schedule
in the Board materials, but noted that additional meetings may be called if necessary.
Resolution B: Approval of 2017 Regular Meeting Schedule.
Mr. Dougherty moved approval. Mayor Brede seconded.
Ayes (6), Nays (0), Motion carried
X.Meeting Schedule. The next regular meeting of the DMCC is Thursday, January 26, 2017 at the Mayo
Civic Center.
XI.Adjournment. Commissioner Bier moved to adjourn the meeting. Mr. Campbell seconded.
Ayes (6), Nays (0), Motion carried.
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A.
DESTINATION MEDICAL CENTER CORPORATION
RESOLUTION NO. ___-2017
Approving the Establishment of an Executive Committee of the Board
BACKGROUND RECITALS
The Bylaws (“Bylaws”) of the Destination Medical Center Corporation (“DMCC”) provide
for the establishment, by resolution, of an Executive Committee of the Board, and state:
The Executive Committee shall be a committee of the Board. The Chair, the
Treasurer, and such other persons, if any, elected by the Board of Directors by
resolution shall constitute the Executive Committee of the Board of Directors of
the Corporation. The majority of the members of the Executive Committee shall
be Directors. The Executive Committee shall act only during intervals between
meetings of the Board of Directors and shall at all times be subject to the control
and direction of the Board of Directors. During such intervals and subject to such
control and direction, the Executive Committee shall have and may exercise all of
the authority and powers of the Board of Directors in the management of the affairs
of the Corporation, subject to such limitations as the Board of Directors may
impose. Notwithstanding the foregoing sentence, the Executive Committee may
not approve: (a) amendments to the Articles or Bylaws; (b) the development plan
described in the Minnesota Statutes Section 469.43; (c) project proposals as
provided in Minnesota Statutes Section 469.41, subdivision 13; (d) annual reports
required by Minnesota Statutes Section 469.43, subdivision 8; or (e) requests for
bond financing of projects pursuant to Minnesota Statutes Section 469.44,
subdivision 8.
RESOLUTION
NOW, THEREFORE, BE IT RESOLVED, by the Destination Medical Center Board of
Directors that an Executive Committee is established, consisting of the Chair, Vice Chair, and
Treasurer of the Board. The Executive Committee may exercise all of the authority and powers
of the Board, subject to the limitation set forth in the Bylaws, and specifically including, but not
limited to, the certification of the annual report due to the Minnesota Employment and Economic
Development Department (“DEED”), and the approval of the DMCC annual audit.
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B.
DESTINATION MEDICAL CENTER CORPORATION
RESOLUTION NO. __-2017
Authorizing Report to the Legislature Pursuant to Statute
BACKGROUND RECITALS
A.Minnesota Laws, Chapter 143, Article 10 (the “Act”) provides that by February
15th of each year, the Destination Medical Center Corporation (“DMCC”) and the City of
Rochester (the “City”) must jointly submit a report to the chairs and ranking minority members
of the legislative committees and divisions with jurisdiction over local and state government
operations, economic development, and taxes and to the Commissioners of Revenue and
employment and economic development, and Olmsted County. The DMCC and the City must
also submit the report as provided in Minnesota Statutes Section 3.195. The report must include
the following specific elements:
(1) the development plan and any proposed changes to the development plan;
(2) progress of projects identified in the development plan;
(3) actual costs and financing sources, including the amount paid with state
aid under section 469.47, and required local contributions of projects
completed in the previous two years by the corporation, city, county, and
the medical business entity;
(4) estimated costs and financing sources for projects to be stated in the next
two years by the corporation, city, county, and the medical business entity;
and
(5) debt service schedules for all outstanding obligations of the city for debt
issued for projects identified in the plan.
B.The DMCC and City staff have prepared a draft report, due on February 15, 2017,
and attached here as Exhibit A.
RESOLUTION
NOW, THEREFORE, BE IT RESOLVED, by the Destination Medical Center
Corporation Board of Directors that the Chair or Vice Chair of the DMCC is authorized to
execute and submit the report to the Minnesota Legislature as required by the Act, in form
similar to the report attached here as Exhibit A, as may be modified through further discussions
with the City, and to take such other actions as are necessary and appropriate to effectuate the
timely submission of the report to the Minnesota Legislature.
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February 2, 2017
Page 1
February 2, 2017
The Honorable Dan Hall
Chair, Local Government Committee
Minnesota State Senate
3111 Minnesota Senate Building
95 University Ave W
St. Paul, MN 55155
The Honorable Tim O’Driscoll
Chair, Government Operations and Elections
Policy Committee
Minnesota House of Representatives
559 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155-1206
The Honorable Patricia Torres Ray
Local Government Committee
Minnesota State Senate
2225 Minnesota Senate Building
95 University Ave W
St. Paul, MN 55155
The Honorable Michael Nelson
Government Operations and Elections Policy
Committee
Minnesota House of Representatives
351 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155-1206
The Honorable Jeremy Miller
Chair, Jobs and Economic Growth Finance
and Policy Committee
Minnesota State Senate
3107 Minnesota Senate Building
95 University Ave W
St. Paul, MN 55155
The Honorable Patrick Garafolo
Chair, Job Growth and Energy Affordability
Policy and Finance Committee
Minnesota House of Representatives
485 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155-1206
The Honorable Bobby Joe Champion
Jobs and Economic Growth Finance and
Policy Committee
Minnesota State Senate
2303 Minnesota Senate Building
95 University Ave W
St. Paul, MN 55155
The Honorable Tim Mahoney
Job Growth and Energy Affordability Policy
and Finance Committee
Minnesota House of Representatives
345 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155-1206
The Honorable Julie Rosen
Chair, Finance Committee
Minnesota State Senate
3235 Minnesota Senate Building
95 University Ave W
St. Paul, MN 55155
The Honorable Jim Knoblach
Chair, Ways and Means Committee
Minnesota House of Representatives
453 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155-1206
EXHIBIT A
to Resolution B
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February 2, 2017
Page 2
The Honorable Richard Cohen
Finance Committee
Minnesota State Senate
2301 Minnesota Senate Building
95 University Ave W
St. Paul, MN 55155
The Honorable Lyndon Carlson Sr.
Ways and Means Committee
Minnesota House of Representatives
283 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155-1206
The Honorable Roger Chamberlain
Chair, Taxes Committee
Minnesota State Senate
3225 Minnesota Senate Building
95 University Ave W
St. Paul, MN 55155
The Honorable Greg Davids
Chair, Taxes Committee
Minnesota House of Representatives
585 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155-1206
The Honorable Ann Rest
Taxes Committee
Minnesota State Senate
2217 Minnesota Senate Building
95 University Ave W
St. Paul, MN 55155
The Honorable Paul Marquart
Taxes Committee
Minnesota House of Representatives
261 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155-1206
Commissioner Cynthia Bauerly
Minnesota Department of Revenue
600 North Robert Street
St. Paul, MN 55101
The Honorable Ken Brown
Chair, Olmsted County
Board of Commissioners
151 4th St SE
Rochester, MN 55904
Commissioner Shawntera Hardy
Minnesota Department of Employment and
Economic Development
1st National Bank Building
332 Minnesota Street, Suite E200
St. Paul, MN 55101-1351
Re: Destination Medical Center
February 15, 2017 Report
Dear Senators, Representatives, Commissioners and Chairs:
Pursuant to 2013 Minnesota Laws, Chapter 143, Article 10 (the “Act”), the Destination
Medical Center Corporation (the “DMCC”) and the City of Rochester (the “City”) must jointly
submit a report by February 15 of each year with respect to the status of the Destination
Medical Center initiative. On behalf of the DMCC and the City, we are pleased to submit this
report, setting forth the progress that has been made since the last report, dated February 12,
2016.
As this report will illustrate, 2016 was an exciting year for the Destination Medical Center
initiative, as we pivoted from planning to the approval of public and private projects and the
consideration of several more projects in the pipeline for 2017. The private investment,
combined with Mayo Clinic’s certified expenditures to date, indicate that we will be on track in
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February 2, 2017
Page 3
2017 to exceed the $200,000,000 threshold in private investment established by the Legislature
before any state funding may occur. This early success clearly underscores the legislative
intent to have the private investment lead the way for this initiative.
I.Destination Medical Center: In General.
A. Development Plan.
One of the primary goals of the Act was the adoption of a Development Plan. In
September 2013, the DMCC established specific goals and objectives for the Development
Plan: to create a comprehensive strategic plan, and over the life of the project, to stimulate over
$5 billion in private investment that will be supported by $585 million in public funds, create
35,000-45,000 new jobs, generate $7.5 billion to $8.5 billion in net new tax revenue, and
achieve the highest quality patient, visitor and resident experience.
The Development Plan is the strategic framework for the Destination Medical Center
initiative, establishing a comprehensive business and economic development strategy. As
described in the Act, the Development Plan must address several items, including land use,
transportation and infrastructure planning, market research, funding priorities, business and
economic development and market strategies.
Upon making the findings set forth in the Act, including finding that the City had
approved the Development Plan, the DMCC adopted the Development Plan on April 23, 2015.
The Development Plan is posted on the DMCC website: www.dmc.mn.
B.Website.
The DMCC’s website is: www.dmc.mn. The website contains the regular meeting
schedule, meeting agendas, minutes and other information on DMCC activities and activities of
the Destination Medical Center Economic Development Agency (“DMC EDA”). The City’s
website, www.rochestermn.gov, also has a link to the DMCC website.
II.Specific Elements Required to Be Included in the Report.
The Act requires that certain elements be included in this annual report. Some of what
is presented here has been referenced above.
A.“The Development Plan and any proposed changes to the Development Plan.”
The Development Plan was adopted on April 23, 2015. It can be found at the DMCC
website: www.dmc.mn.
The DMCC approved a modification to the Destination Medical Center Development
District, the geographic area in the City of Rochester in which public infrastructure projects are
implemented. That modification is attached as Exhibit A.
B.“Progress of projects identified in the Development Plan.”
According to the Act, a project must be approved by the DMCC before it is proposed to
the City. The DMCC must review the project proposal for consistency with the adopted
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February 2, 2017
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Development Plan. Since the adoption of the Development Plan on April 23, 2015, three
projects have been approved by the DMCC.
The first project involves the historic Chateau Theatre Building, located in the
development district boundaries and in the “Heart of the City” district as described in the
Development Plan. The DMCC approved the acquisition of the Chateau Theatre Building by the
City in the purchase price amount of $6,000,000, of which Mayo Clinic contributed $500,000.
The acquisition of this historically-designated landmark is considered key to the planning and
enhancement of the Heart of the City district. The City, DMCC and Mayo Clinic have agreed to
work cooperatively to determine the best use of this building and a comprehensive planning
process and feasibility study is currently underway.
The second project approved by the DMCC is the Broadway at Center project, located
within the development district boundaries and in the “Downtown Waterfront” district as
described in the Development Plan. This mixed-use project includes a 264-room hotel,
restaurants, a skyway, and a five level parking ramp with 630 spaces. The project is expected
to generate approximately $125 million in private investment and create 200-250 jobs.
The third project approved by the DMCC is known as the Alatus Project, located on 2nd
Street SW. This project required a modification of the Development District, and is located in
the “Saint Marys” district as described in the Development Plan. This mixed-use project
involves the construction of an approximately 327,965 square foot, thirteen level commercial
and residential complex. It will include 347 market-rate rental units, create 240 jobs and is
expected to generate $115 million in private investment.
Finally, there are several other projects underway in the initial stages of planning, and
are expected to come to fruition in 2017. The status of these projects will be reported in a future
annual report.
In addition to the approved projects noted above, the DMCC and the City have approved
a Capital Improvement Plan (“CIP”) for 2017. Projects identified in the 2017 CIP are as follows:
1.3rd Street SW Reconstruct/Design
2.Broadway at Center Development
3.SS1 12th Avenue Sewer Capacity
4. SS2 Cooke Park Sewer Capacity
5. Broadway at Center Ramp
6. Parking and Travel Demand Study
7. City Loop Plan
8.Transit/Transportation/Infrastructure Management
9. Transit Circulator Study
10.Heart of the City Public Realm Study
11.Chateau Theatre Re-Use Study
12. Downtown Street Use and Operations Study
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C.“Actual costs and financing sources, including the amount paid under Minnesota
Statutes Section 469.47, and required local contributions of projects completed in the previous
two years by the DMCC, City, Olmsted County and Mayo.”
1. Through December 31, 2016, no State Infrastructure Aid or State Transit
Aid has been received.
2. Actual costs paid by the City from commencement through December 31,
2016 have totaled $19,077,618, based on year-end unaudited costs. The
funding source has been City internal borrowing, which will be repaid by the
City’s 0.25% DMC sales tax.
3.Out of pocket costs incurred by Olmsted County through December 31,
2016 total $1,500,000.
4.All operating costs for the DMCC through December 31, 2016 have been
funded by the City of Rochester.
5.The 2017 operating and capital improvements budget for the DMCC
totals $14,427,642. Of this amount $3,000,000 will be provided by Olmsted
County from its 0.25% DMC sales tax. The remaining $11,427,642 is to be
provided by the City of Rochester from a variety of City funding sources.
6.Mayo Clinic has provided $500,000 in 2016 for the Chateau Theatre
project described in Section II B.
7. Additionally, Mayo Clinic has supported the DMC EDA both financially
and with in-kind contributions. In 2016, Mayo Clinic’s support to the DMC EDA
was in the amount of $935,000.
With respect to private projects, the Act requires that DEED must certify that
$200,000,000 of private investment has been made before any state funding may be paid.
Mayo Clinic certified $85,708,731 in qualified expenditures for the Destination Medical Center
initiative in 2015. When added to Mayo Clinic’s qualified expenditures in 2013 and 2014 in the
amount of $46,210,615, the total Mayo Clinic qualified expenditures through December 31,
2015 equal $131,919,346. In addition, there were other private (non-Mayo Clinic) qualified
expenditures in the amount of $20,487,686. The Act requires that an annual certification of
private investment by Mayo Clinic or other private investors be made to DEED by April 1 of each
year. It is expected that additional private (non-Mayo Clinic) qualified expenditures and
additional Mayo Clinic qualified expenditures for calendar year 2016 will be submitted in
connection with the April 1, 2017 filing to DEED.
Attached is the annual certification of private investment that was submitted to DEED on
March 31, 2016 (Exhibit B), as well as the DEED certification, dated July 13, 2016 (Exhibit C).
D.“Estimated costs and financing sources for projects to be started in the next two
years by the DMCC, City, Olmsted County and Mayo.”
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February 2, 2017
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The Development Plan sets forth a framework and examples of projects that may be
considered for funding in the next several years. Each project will be approved on an individual
basis. See also the response to “B” and “C,” above.
E.“Debt service schedules for all outstanding obligations of the City for debt issued
for projects identified in the plan.”
The City has provided the funding required for approved projects thus far, and no debt
has been issued as yet.
Thank you for your consideration of this annual report. On behalf of both the DMCC and
the City, we welcome your comments or questions. We look forward to continued progress on
the Destination Medical Center initiative in 2017.
Tina F. Smith, Chair Ardell F. Brede, Mayor
Destination Medical Center Corporation City of Rochester
Enclosures
cc: Legislative Reference Library
867428-5.DOC
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A DATA DISCLAIMER -Destination Medical Center (DMC) Boundary
The DMC Boundary is a boundary for an Economic Development initiative and was approved in the Spring of 2015. The boundary polygon was created based on the 'description· of the DMC area.
The DMC area was not a surveyed legal description and was subject to interpretation. Please note that this boundary is for informational purposes only and is subject to change.
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DESTINATION MEDICAL CENTER CORPORATION
201 4th St. SE.
Rochester, Minnesota 55904
Katie Clark Sieben
Commissioner
March 31, 2016
Minnesota Department of Employment and Economic Development
1st National Bank Building
332 Minnesota Street, Suite E-200
Saint Paul MN 55101-1351
Dear Commissioner Sieben:
On behalf of the Destination Medical Center Corporation ("DMCC") and Mayo
Clinic, I am pleased to forward the following materials for the April 1, 2016 certification,
pursuant to Minnesota Statutes Section 469.47, Subdivision 2:
1.DMCC Certification: I enclose the DMCC certification of expenditures
made by an individual or entity, other than Mayo Clinic, for the period of
July 1, 2013 through December 31, 2015. The City of Rochester,
Minnesota, assisted with the compilation of this report. The amount of
expenditures set forth in this report is $20,487,686.
2.Mayo Clinic Certification: I enclose correspondence and accompanying
materials from Jeffrey W. Bolton, Vice President of Administration at Mayo
Clinic, dated March 31, 2016. Mayo Clinic is certifying expenditures for
the period of January 1, 2015 through December 31, 2015 in the amount
of $85,708,731.
3.Summary of Expenditures: The summary page entitled "Certification of
Expenditures, Destination Medical Center" sets forth total cumulative
expenditures through December 31, 2015, in the amount of $153,789,385.
EXHIBIT B
19
Commissioner Katie Clark Sieben
March 31, 2016
Page 2
Thank you for your consideration, and please do not hesitate to contact either
DMCC or Mayo Clinic if you need further information. We look forward to continuing to
work with the State of Minnesota, City of Rochester, Olmsted County, Mayo Clinic, and
our other partners on the Destination Medical Center initiative.
Encl.
Sincerely, _,;.,;,,,-
�
:? I ht
Tina F. Smith
Chair
Destination Medical Center Corporation
cc: Destination Medical Center Corporation Board of Directors
Jeffrey W. Bolton, Mayo Clinic
833403-1. DOC
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Quarters
2013 3rd
4th
2014 1st
2nd
3rd
4th
2015 1st
2nd
3rd
4th
Building Permits within DMC Boundary
(Does not include Mayo Projects)
(Updated 3·16-2016 to omit public buildings)
Completed
$829,770
$2,495,795
$7,036,528
$2,106,466
$2,754,403
$3,383,504
$868,500
$490,000
$424,085
$98,635
$20,487,686
21
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DMC Report 2015 Building Permits (4th Quarter -October 1st to December 31st) Completed B\ildlna Permit• (Within DMC Bounda,y, doet! not Include Mayo Projects) Catego,y Leval ''1>iiiii1t Number ��':;'It l11ue-i:r 1Addre11 Info ----·---·· 1�:�;111en-·· jWork Ducrlpdon fie Prof · · ·-----·----------��-----------1�:;:;f Permit !�:=�It -•Mliltl-Famlly -- ·rR1s:ooliiic�2if1w(ffll;ooaea1 1�12 SW 2 ST, ROCHESTEA�MN -r � $45,000)CGml)lett climoiiiicnof ��R CONSTRUCTION ---R�Ail> lloCise" --j'Ffntled--.-1/8/2016 ' J j'55802 J I building R648 jRICK T. PENZ 850 2ND ST SW
�� 1 I 3725 ENTERPRISECR SW 1ROCHEBTER,MNS5902 • J / TER MN 55802 1 \ r' ,...... � . .....----P·"·""""""""T-""''"=:"..:::-""'-·-· ,.:;;.--·---1 !�2,:i!c lfAili"HOUSE 1 Flnalld 1/812 016 1
3"'4ull�Famlly Bldg �Alterallon --:R1!Kl104MFS i--10/28/201i' 9170-·1430 SW 7 ST, ROCHESTER, MN t $2,000 Rtmovedagrand 1rstall n ow111 r o srl���:��o:w •. ::�:::;LME�:: HOLDINGS. :Flnaltd --+----, 1/S/201) . I 55802 I window: n1mcva stairs (rental) ,OF ROCHESTER i [ · 4 . : Resldtntial Bldg. ' Atntlon - -• �R15-1872RB .•. r .. 12111/20�15 005163 -··jeso SW 1 ST, ROCHESTER, MN ,i -$2,735 3 tgr-window lnstalatiar,on 2nd floor, BOe'S CONSTRUCTION tNc··-· .. ;�1::bb, MN S5&03 .. ···-···" -· .: Flnlled ···-··r-· -···· 12/181201511·
I i &5802 2 relRngo • lat atal11 olhe, I II l<EU. Y MACSON 1850 1 ST ST SW : 1 I 5 1Slgn. 0 Bullnau -·-'R15-016fS" ·1·· 11/�15078115 b10SBA0ACWA�A9"E, --�--, rw·=��---·------ii��a;ek�---·---;:::::��NSS902 -·---�� --r--11l12/20181 . ' I 1ROCHESTER,MN 5591M 1 � 11530GREENVIEWDRSW I , j ------·-- . --I I l . --I co-----· .l���l§.�_tj_��g�_ ·--··· !l
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22
DMC Report 2015 Building Permits (3rd Quarter-July 1st to September 3oth) Compjeled Building Pennit1 (Within DMC Bounda,y, does not Include Mayo Projects)
1 JSubTypeLriel TIIJOIYL8Yel :parrnltNuni>erlPerrnltlsltJ9 /Parcal ·Addreaslnlo · iParn,• IWOlkDe�tlcn !UePffll lo.-10mirn.-JCUmtnt,._ , 1· 1-1Comrnorcill Bldg··---Allaiaitoii ---·· R15·02220B_J10ato 7/1"'2015 'Nto1":' 30 SE 3 ST.' ROCHESTEFt .MN_ ...... :Vokllll:OO,ooo11NIW tonant resllWrant' on°7th fleer (LI. Bulldcore, Inc. _,._ ----NcvaRe1taur111� ---. ('�_ ��15: I 1 5590-4 Votta rcoftop • Plue en HlstOrie 3rd) Brian Moler 6400 Flying Clcud Dr I j / 303S!SE _&1111215 I �_Jlci>mniic:11iBldg-1Altlffl1lon -:-,m:lmica-+----aiMo15,0'ffiif":_
]
foo SW 1 AVE,"stern;..-, -·-,--$S,1Aliilaf1ons-1o·1x1s11ng space (��\l!�l'! � .. ----· -\=1�:· YN �-··---ic ol O 1siiiiifT 1112/20151 ! l ' ROCHESTER, MN 55902 I & Salon· 100 1 Ave Bldg) · I 1��� l.(r;: � !I j I 3 ieomrnarciaiilidg 1Al11riiic,,--:R1�CB 91ier.li:ifsW179el(-101 ECOOERST,ROCHESTEA.-1 $18,000 Re-rco!lngho111 ------ •• lFRlEDRICHs;�o't;" -··1=1n11td ---.•.. 10/13/20151 r �-·--.. .-� -·-:.: ::AVE. ROCHEST!R, MN ij $!1Rlplac1 stapo, hliidri'il and guarcnil on OWNER -�:���E5SS23 . . . :Flnalld . ' 914/2015! I ' ' iesao, . 1xt1tlng deck for oportment #2 5132 ST NW 1 I ' : · I llECif.!',lCY APl,B'ThlgNTS FIOCHESTER MN SS801 I 5 Sign ----,aiiiiniu""---=Jlis.:imis-9118/2015i0055�Sii!'AQP[.iioa:tifsi'ef0,11il' ! 9jalfaiiiii•euc:iiyeLIQUO�---OWNER TGMREACf§f�fE'L(cf --tFlnalld ----R!r.2015· ' 155904 I 438 3 AV! SE j I I I . . ROCHESTER, MN !!!904 ------_-1. ____ l ..... _ "' ....... ·-·-·-··· .. -·---··----····--· ·--·-"" .. --····--·-------·""----·----·--··-·- ···--·-··"'"'"""-"'"-···-------··' -· . -'· --�-----
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23
DMC Report
2015 Building Permits (1st Quarter· January 1st to March 31st)
Completed eungJna Permll! (Within DMC Boundary, does not Include Mayo Projects) r·--,SUbTVJIIO 1..8Yel --,Category Levol-�mber i:;=t l11ue lParcel 'fAddr9SS Info -.. --------1��::lon --�Work D,_lptlon -·--------···]Lie Prof ---------·-.-------,�::t Pannlt ·rc""9!':,::,a lr,-�Bldg 1P11uwcf'l'ar11a1 I�"'"" ,_,;:gr ,..,,.,'""""''·"'I ,�--.. ..._-.. •. F"��-iiao'fus1bNHoL01NGsLl:<f·--,cloieii lrstaw 4'iii2iifs J . i •P ennlt 55902 Alttratlon• to tldltlr-o Nlotaurant to CO 720 NORTHERN HILLS DR NE I I I I Include a brewery and ber (Grand Flcunds !Adam Kramer ROCHESTER, MN 55906 J t 2 /ecmm1--�� --1R1S-00l3CB ;---119/2015'
1
017887 -ir1������·JJES:::• -. ---11 --. --$500 ;�:� 1�:�.=��ihnny _ __j��i?::9°4-... . -. ��Ii� ----------------=1• Flnaled -----,1
-1118/20151
1 I ' 17595 Konwood Trail ,Suite 303 r I I : l �::: MN 55044 f och•tor, MN 55902 ' : 3 1ecmmer clal Bldg -·j AJteratlcn ---Fl 1 4-°"50CS---; 111S1201s:on774 ·-"21SW1AVE, ROCHESTER, MN ·--saso,OOO,Altarllllcna tolllllatlr-ospace !Bil>------1ALV1N E1BENIKE, INC -.. -.. --!CITY OF ROCHESTER ----F-----111l/2016• . , I !Regenerative Medicine 2980 W Hwy 14 .ROCHESTER, MN 55904 I1 I r902 !Buslneaa 3rd level• c:an,o 3) Canter le, Adam E Blnlkl 201 4 ST se j HCommeniiieklg-+/\ltara�ori'-·--f'HS:Oonca+--:¥1Tr.lofI50iifll2 t 1 flWffl 509, ROCHESTER,--' ---ia,ooof-A1teralion1 iounit #509 (Mayc-cii,iic":"-i�l:::;: SS8!)I ----:l ooiioriii Kanltt ---• iFkiiiiil -.. Mlll!Ofa4 ' : I i I N 5 90 1 IChaner House) = ��f�w t�1ck��J. MN ssso, ! L __ J.__j L _______ . . .... --·-.. ---··----·-.. --------------�!:!��!�f'l.�-�-��Ql ______ -------•
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24
OMC Report 2014 Building Pormits (4th Quarter· October 1st to December 31st} Cgmplelcd BuJlcHnq PtrmHa (Wllhln DMC Boundary, d08S not lnelude Mayo Proje�ts) l&ii)T� -�t.averyermltNumbe�armltluue ;parce11Add1N1lnlo .. F'ermlt --WolkOescrlptlon ___ llcPraf -------To.vr,er --·-------cimintPemiirrumiiiiPl!mlt l . 1 )camniiciifBldg ... '.New ·--··-·-�;�scii ·-1 ···.,'!1CJi2ilio14\�:=-rl o iienr-· ... ----····f!!':��o;oo�'iiiiwt9nant 3, 4 i 5 lioort (HIB1orlo 3rd· SCHOEPPNEFi.'INC - · -�fTvcIDilffl!Tll.0° ------11�, iiiuid .. &Illus 0�01& ; j i I , 1oun�Seooer) \�����iPPNER �cic���:�:� l T]coiiim&tdi(iiiitg-·· �iiii«iiicii, ____ Tiii�mi1 . r0!1M0i-f-lo11ai7-·�oos\iffAVEJ;°STEi 204;---··----f-·--· ss:ooo:Sti,i'ijje'u'nii8-,ot1ood cou·ii 111niint1TFfiit ����sri:�. MN S�Dj 1'Ba1i1ya, Lre--. _ .. � -i·-,liiii2J, j ; \ R:XiHESTER, MN Ss.ot Av1nua Food Coult) I PO Bo• 143 '
i ' i jKuao,,, MN 55944 � Comiriirciil aidg "JAiia,aiJori -----"4i4-03S5Clf 16114i2Q141011555·-· af2;s SW 2°ST, ROCHESTER, MN -. ·s12S,001ilntiiiloi'rimoc111 foraccetslble roome,' .• BHI Contriiicws ,Ro00ncy Hotel M1111goment c ofo liou1ci"'l 412iiaots · ' l _ '65902 broaldut room, •leclrlc:al upgrade ""'""' .Jot Bernhard ,3211 Senco,e Dr
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0 � ... -� ... ;, .... -+l. 11N201 ,j079n4 =�SW1AVE,ROCHESTEA,MiiCll--sso.ooo\�=��oo��=����. �lf&k�,::-----·i.o:;H::: .... ----�naltd -"j ·-1;,am1 I I t . , J , ·Acceltrator) ���:�66901 IFIOCHESTEF1,MN 55804
11 -rt ccmrnoriiiiiaiiij--·�----lff4-<l:!"e3cli""' -w;l11134]1".iofwt2sT;Flocliiti•"6liem··1-143,1e1 �:����;H-::;l�oWNER _----- ..... -.... ..-'tl�:.t�:·;saoe .. ___ -T,1ca1i:rliiiiia -
1
--l!l2&'20, I 8 Commercial Bldg ,Alttrlllon Fl14-0384CB 11112/20141025717 /717 SE 3 AVE, ROCHESTER, MN $1!5,000 AltoniUon1 lor otflcl-on lowwr and /MCGOUGH CONSTl'IIROCH OFFICc Olrrwtld MIClcll Cantllr IC of O IUued · -·ai8/2015 I 1 ; I 55804 main levels an north 1ldo (Olmltld Dan Mllfbootad 121 O 9 St SE 1 ' 1, j Medical Center) 355!5 9 ST NW ROCHESTER, MN 55804 ! �� . 9 -�ominerclaJ Bldg i'Phuiia F'ar!llf IIR14-0348CB 11112/2014+.102li717 7i7Si:i':i'A\iE,"AOCHE"STEFI, MN I --sso.oooTni'iiliii'iiimoiraorilar'luiuii'iifllc9'iploa-tm-������FICE lvllCIIIY Coib'f Building of Rocliiitir ICloHd I : i !Permit 55904 11(SEH -Vaggy Auoclllll) loan Mllfbolllld r?o6 1 AVE SE I I 1 3555 9 ST NW IROCHESTEFI, MN 55904 I I STE 100 I ro CommlrclaJ...., Altarallon 1111712014[01 """'••3 A\IE, ROCHESTER, MN I -,,000 New raofTop coaler equipm (Zumbra VALOR MECHANICAL INC ZU'-IIRO EVANGELICAL Llffi! -"-· '
�15
1/29/2014: ·, �--1·-·---l.. --= -·--�-=--1 -·-·--·iiiirti . !'!OCHESTER.,_MN55901 I I I r Evangelical Lulh1111n Churah) lY BESTOR /CHURCH r ����Lfr��R��wArn i:�tfe���� MN 55 I 11Comrnarclal Bldg -IAl!lrlllon � 11'.o:!&Tcs---n-!21120'1'4101.uii! 30 SE 3 ST --·$330,000IFrldCaiiioii dlntalaffice !ram wtiiiiiiioi �iNraeiiKE, tfc�
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rid cartton _!m_ __ --aor O IUutd I 8113/2015 \ 12Teomineic:iiia1c1g-·iA1111ra!fon ·-i;1F114-0401ca· 1-·-1214121lJ1014442 ,30SE3ST ---·-· ... 1 • s,.ooo.ooo!:::�:nd�::Hlll=l5:i;1it�55901 -·----::°::�=�904 ·----foioiuutd -.1---51i3iio1e \ J ,lnfr1111nJcture (lllllu, Conoopt FIH111Ur11nt • Brian Shlllhon &IOO Fl)/lngCloud Dr
( 55904 1aYtl(SEH·Y-Allocilll01) D1nMlltla11ld 7173AvtSE I � I I 3555 9 ST NW ROCHESTER, MN 55904 i , STE 100
114lslgii 1Buslness �[......J"'"' '"'"""'·-·"' 1 -......-.r§ji---·--�.�""'''"'°'"-"""""" jciiiiid-4/'17/2015 I I� I F ' --I-----'----_____ L _ _I.. �t����;::,�70R I l __
25
DMC Report
2014 Building Permits (4th Quarter -October tstto oec,mber 31st)
Cqmp\eled BuUdtnq PtunH• (Within DMC Boundary, dces net indUde Mayo Projects)
; 15 l6���-�-�� .. �_!fff�Ot52��[-t2M014i0791rso1�vH20.ROCHESTER, ! _ S5,iioo ·waK Sign to replace pnor cwnerl�remer Bank)
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1Wl'llcR .:Bremer B811k Flnlled--r ---<ilfsiii151i8555 Eagle Point Blvd
j_LaJcaElmo,MNS555042 ______ -···-----------J _________ [
26
DMC Report 2014 Buildi"1J Permits (3rd Quarttr - July 1st to September 30th) Completed PullllloP Pcnn!Ja (Within DMC Boundary, does not Include Mayo Projects) (Report updaled 3-16-2016 to omH public buildings) .subfw,eLewf ;cllegO!y!fflf �tNumbar 1Parmltluue jPan:al Addrlulnfo ,Pe<rnlt r:Wor1<Dncrljiiliwi ·· flcProl 1°"'1tr jCunentPermitlCunantPllfflil I 1-COmmlrcfal Bldg. .. "]Ali.riilori--·-··,R14-0208CB .... [DIii '. 7/i/201:Ci�=--·" 31 0 SBROADWAY AVE,-----··· ·1 Valuad'°4"90,000 f1nant lfnTilITriiiiiwl,Ttiiio""i(Liiiblti:ir --ALVIN E BENIKE,'INC·-·--··---;CnY¢ENfRE ROOHESTERLLC--:.�':\"� IMued Statua1::Z1} , 1 : · J ROCHESTER, MN 55904 , Media Grou� • Main i..11-0lty Contro Mary E Ktol-kl ,2227 7 ST NW 1 I J .,· I I Bulldlng) 2990 W Hwy 14 !ROCHESTER, MN 55901 ' • · !AOCHESTER t.t,I 55901 • 1 2 ICommerciafBldg :Alteratton -·-IR14-0258Cll ·--·-·· 811/201�018487 --"407NW 2AVE, ROCHESTER, MN-I --s12,oc,oli11o1avewall 1tbalhroom& office remodel, -�onald FCart�n ------------,COI.LINS,AANDALL A ----------·ICotOIUulld ·t-----,1112iiiw -C I 55901 'i 1nowrumaoe(ColllntFaed&Seed) Ron1ldC1�1111 '4112AVE NW !' -+ I l .! 2525 Sclluator Ln NW !ROCHESTER, MN 55901 , : 3 iCommllR:lal Bldg :R14-DM9CB 815120141 01me 18 SW 3 s'r.ROCHESTER, MN � $15,3ClilNew litn11s studio tenant (S tudio-on 3rd:-1isl��::�1 iSuah PIICChtftl -----!ilint11c1 11/5/20141 I L I I J55902 , IMen:hanll Exchange Bldg· Unll 2) !Josh Slllka :930 a Avt SW I 1" Comman:1alBldg ____ PhUodPartlll !IR14-0314Cll_r· 8111/20141.� i�ff ...... �, ..... � i--• .,,L..--... ··--.-S�:---------l='· .. --------�:+---,,-,1I l,,ennlt , 55902 1 11oe><i11ingdlnlngaru, bor1n>aand :·· I ·1820SAve SE :, � .. � ....... i .,�,...,..-·1::�""·""'__....L,,.,;:;;.::::�,,,""""- �
,..-:,.-. .... -... .. , '. �--... ....... � ...... � --� "'"'"""""""'"' l ......,i,..-·---'" �.....;::,,. .. _ ; ... _ � ·-1 �7 �j mman:1a1e1c1g IPhuldPartlaJ .. 1Rlo1-oosica 1L--8/271201401#42 :;35y--------1 "'-st,soojoo�:rr;:d:�:::::::u"we1seu1LDERs ... -·-----j�§;���·----j�oio�iood .. ----M1W018 ' IPtrmlt · ) l[roughout:plumblng,eloctrlcalend ScottSonsko 1221 1AVESW#3DO , 8 _11........... -1..... ...J.._... r-.,,� •• Q .. --.... , ... "°"""'...L -... 1s1:rai.: .. ��iE::i:�·---= .. ------_ . ·-· f · 55902 j St SW) Steva E Bianiel< 10 3 ST SW IJ J 2980 W Hwy 14 ROCHESTER, MN 55902 I · i ROCHESTER,_MN�8590=�1 ____ "===,
,
, J PO BOX S48t ROCHESTER, MN 55901 I ROCHESTER, MN 55903 -,i"lRe"'"iidantlalBldg jA!terat1oii---·tR14-1046REl01 -···--a17r.zoy oiiil3eg 207 SW 5 AVE 1203, ROCHESTER, -··-· "ffo-:000 nt.forrimodlt of oondc: ldtohee�liaiha7° l<EYBUILDERS;-INC·---·-·-·· 'viiielR'i!ii<E' ' ------J!frii!.;r-" j II/IB/211151 [ MN 1511902 I ma, otooltl. BRAD CLEMENS 207 5TH AVE SW /I 7&40 LEQUE DR SW #1203 __ _J _I I . E_�R,MNQS ---��,MN S5902 I ·--______ i
St,7114,4113
27
DMC Report 2014 Building Permrts (2nd Quarter -April 1st to June 30th) ComRlfted Bulldina Permjta (Within DMC Boundary, does not Include Mayo Projects) (Report updated 3-16-2016 to omit public buildings) , . Sub Type lei/el Category Lovel Pennlt Nymt,or,Permlt IBSUe I Paree I Adcwess Into PemilrValiiiiiion Work C.scrlptlan : Uc Prof !Owner 1curnant Pannft I Currant Parmtt 1 h .. Commercial Bldg -,Altoradon -)!14-0109ee···jDate '4/112014 ��";g� j140& SW 2 ST, ROCHESTER, MN Ir-·····--$14,521[Alterationsl WlndoWs -Install (8) Insert ""VtYAN WINDOWS & S1D1N0;1NC ·----,BRENTWOOD ON 2ND --� -·1 8�� j 1 155902 1wmc1ow,C11Stom1lzed, 2nd&3rdflO<Ka Bruce Ryan I� 2STSW J I ! J , '.Bo• !5937 ll!TTN: AMY SULLIVAN � 2 Commercial Bldg :Alteradon R14'0Cl4aCB J -4/3/20141 025249-1-ioo S BROADWAY, STE# 105 , I W.o6offi:n1nt fltup on main level (Clmbrla -���E����� :e:=� MN 55902 jFnlld I 8111�4\ I I i ;ROCHESTER,MN 55902 1Rlvlllld1Bulldlng) =�t�"t", l����p::!.��1553"' I i J l � =�M IIAltlradon. ··1R14-0130CS·-�·-1111112014:014:112 �::>ADWAY,R OCHESTER,·fl. --·$800r:,,w:�::r:a.: .. -::s:� i��:�E�������RUCT�==���adw&y --· -rrn-·-"'·1 ······ 4128/201�
I I II I STEVE E GENTRY ROCHESTER, MN 55904 \ r � J l ; l23077STNW _J I \ 1coirimen,;a1 Bldg +�jR14-0122CB --4i24/2014i017 7121rosw:iWE;""FiocHESTER;i.Jlr-$15,000illa!ber shop rtlocailon fl<it,TeiHospltally iBTE�f:W:SO_l -.�.· . tapitallty Group !IC ol'!fluutd Jl I I I I leeo2 I Group • Subway revel) Jioa HIT SW I ii-j�Biiij-.. Atteniilaii .. --�,.....,. l _,.,,,,.., l,,,...-....,oca""",M'. ••"""P'iiwianani1niiiiiiini11P111»(Frithena· it<EVeu1LDE.Rli;iiiic"' • ---«c��a::s �-u-/co1011iuadi-· 7/30/2014; ! i55802 ,Manion Slttway leVel) !BRAD CLEMENS 120 2 Av1 SW ; , ·''ffh1i:lo14/ 1 I I j�# 1;ouE DR sw IRoch111er, MN 55902 [ I I , 1 ---�STER.MN 55902 r .I � e .1commerci•I Bldg IAlllraUon R'"i4=l>142CB 4/29/2014017882 1150 S BROADWAY, ROC HESTER, $2,7BO'Flrst floor conteronctt room ofiiina 'wiJ�i'fu-cf10NCOi1AB6RATIVE l!GD5 HOTECitc FNled I 8/15/2014 11 iN 55804 . replacement (Double Tree) 1Grant Mlchalletz 121 23 AVE SW # 105 , 1 j I ,320 S BROADWAY ,ROCHESTER, MN 55902 1
-·. . .... --��..,,--1™�"'·""'""'·� , ..---.. �--....---·----·--il'iosst,MICHAEL ---fi:i�-·--� ja"comme<cla1Bldg -1PhuedPalllal R14-0179C � �1\:�::BROADWAYAVE, ------�. -----.r2,soo::::::�wtthUGt1�. 1AL.VINEBENl<E,INC""------,i��:e:cTstt�c �td-4--IMM01� . Pem,lt 'jROCHESTER, M N 55904 •p lumbing, no ttnant llnlshes (City Ceritre . M•ry E Kl1llewlkl 2227 7 ST NW L.. Building) �tt ��!K)1 ROCHESTER, MN 55901 r ' 19 ,1eommercial Bkfg Afiiiiia'on 14-0f39C8 ll/9/201410lm1 -k SW 1 AVE, R� f/23,000iAtmoval of axl.\ing portion ofliyiiciig anil l<N=CONSTRUCTION U'nii'NK NATIONALASSOCIATI?iN"" li!cio luued 1001/2014 , [ 1 \55902 drtve-upcanopy,inematrernodtllng(US DtrtkOConnor 2BOOEastlakeSt t--. I i Bank) 5985 BANDEL RD NW Mlnntapolll. MN 55406 � Corrrne<cla!Biilg Aiieiiiion , -811iizli1i01790rll SW 4 AVE, ROCHESTER, M N l880,0001Remc.lol lowar lev1l -ODay room, ������t�O f HURCH OF STJO� Ir of O tuulld &'18/20151 115902 kitchen, re1troom, slal1W811, alavator; lDan Pllzga 11 4 AVE SW I 1upper levtl confartnce room, fir .. lde 12227 7 ST NW HESTER, MN 55902 l ,room, ra11don1, 1tolrwtll: and main level ROCHESTER, MN 55901 � building llntnlneo, Soulhsut church I I �1-qMulU-FamUy Bldg "" I ----'!R14·0020MFB ---&',-/20i4009428-iofs'i{ii"AVE, ROCHESTER, MN ss.oooiE:�$��m� .... lEXCEPi'ioNAi:·c6Ns'i'R(jj"tio;;i, INEI.SON,CAIIOL M 1Flnalecl ·-r---,;,-8/201�1reoz "ltnsteld ol lti>. REMODLELING LLC 207 5 AVE SW# 1005 1 I I h I DOUGLAS K BATZI.AFF !ROCHESTER, MN 55902 I I �H��: ����T NE
i-51a"jiiii-a ,,�- 4IW2014'01iiliii---NW 3 AVE, ROCHESTER, MN -_, S12,ooo1wati"Slgn(Fiuhln'aiiiiiiauran1. Kahlt< OWN�--------� ilQ:,apltallty Group -�,) I ' 5590 1 :tnn&Sultet) j!!)U,"'SW I I (l:'floftall\ll!'LMl',I 55902__ I,.1:-.... IAMuom-SW iif.fialrw11t1lgn(Kahlor<lfand-DunklnDonuta)OWNER 3 .. UNST� --f 8117/201', 902 YANTIS STE 3!50 + isiJi�----tl'l"-61ieis . --r-ii15i2o14:ooillo��W2ST;1i!OCHEBTER, MN -""'$295!:1:• sign -Nlurologlcll Recovery]OYiNER ���:i�:!L.._ � 7118.'20141 -----�------�---------' --··--____ __1 _______ , ------�. MN5597B .l... ---1
"·-28
1 ,s 1sli,,-
-L ..
DMC Report
2014 Building Pennlts (2nd Quarter - April 151 to Jun, 30th)
Compfeted Building Permit,
(Within DMC BoundaJy, does not Include Mayo Projects)
(Report updated 3·18·2018 to omit public buildings)
liiiiihiia--r14-D05'IS--·,--si29/20141017911 115 SW 1 AVE, ROCHESTER, MN . - ··sf.eiio\Prajectlng ,1ijn'(i<iiiii1r Grand· Dunkin 10\YNER · i !55902 1 Oonull)
1 __ .__;___ _ __ _j_ ________ , ____ --···· ·-. ----····---------
. 1SlJNSTONE KAHLER U:C j 120 YANTIS STE 350 --------------.]�IS VIEJO, CA 928S6
G,1�
.etolllCI &'17/2014, i ;
=-·-·r·-------
l.__, - ·-··-·-I
29
DMC Report 2014 Bolldlng Permits (1$1 Quarter-January 1stto March 31st) compfelfd eun,Hng Peun!II (Within OMC Boundary, does not Include Mayo Projects) -·-··subTiiii[ive-1--Cll�I !Paniili'Numlle�IBIU8arcel �sinto -. --,pa,rnjj ___ °!'NorttDncrlptlon ---·--iLlcPIQI --··---··----,oimir----1euionii>.,�imantPamiit ! .. , icamm11Cialiliig-1Mnilcii"--·1ri113-0431!()1! •• IP!!!.T� Mf :;-·-·'; 11 s BROADWAY.' ROCHESTER, r!'!!!!!,.a.iioii:Nniieniriispaoenl up (CltyWinoi =····-LRELIABLE CONTRACTORS, (�C . 'iil3o 5 C'i'D ISAATNi!ASHi�iA -:�,� liiuecl · 1811!1U• °Lo,i I I MN 55904 I 'UnlversltySqu1rw-1stllvtl) 1:���:,o:J :����R, ....,55903 l i � ieamrnerclal Bldg -;Alteration ---. !R13-04!0CB .,---�014308---:: �:fADWAY, ROCHESTERES27,269 �:m��r •�lattng space (Canvas & -ra����$5g�RATIVE t:i�o���fo��y A ------.. 1c al O lauld -3-·:.CciinmerclaJBldg' [Afrion-----�Ri�B -·1131J201I-. j!I NW J°AVE";'ROCHESTER,-�--· -. $25(,;cxio�twni ipeciii111ral!on to ratautanf . ·fl����ER, MN 55904 • -· ��=��:------c:"cilo luuod· 1 . limloi:.1 ... ...l .. -·-·--J..·-----··-· , ------_I ™"J 5��1------. ----l�����-R1111JJrant-Kah'.�'."��-.. -- . • . --·--Ro!.:�NSS802 ------... -·· -···· -·-4 icommercial BldQ fAiterat/Gn 714-000908 I 2/Bic14}017912 ;20 SW 2 AVE, ROCHESTER, MN $31,000,Alteratlona lor nawtenanl on mlin level !,KEV BUILDERS, NC UNSTONE KAHLER LLC ,c ofOlaued 414120141 :ss902 (Kahler Grand) Cll)llcal Flarw ,BRAD CLEMENS 2 Ava SW I I
7/18/2014;
1 1 �MO LEOUE CR SW Rochnter, MN 5SSll2 -5""JCommerclal Bldg ··--rAlttratlonjR1�2iCB I "3151201L2s:z.&9"'"'" '.coo. s BROADWAY, ROCHESTER, -sioo,ooo�W-alilnslallation lornew. ��,""'-�.ES.·. 1:!.�.· ::i:�..LNI RIVERSIDE LLC ---- 1Flnal11cf" L .. 7,21',!0,.J 'I ,MN 55902 abl \�oug Pttnon O BOX 807 j l
•':�..-�,-.,,ca j -�•"";',:lo=,�,:::----6:�=..,..,..-ik..,,,...:;,;·-----tn-lil(j----t·----�oii .-7 ieomnwc1at Bldg IA1teratlcr1--J1 Rl�il 3"�14!017911 Ttsw 1A"VE, ROCHESTER, MN- ialiS:cioo�ow coffee and donui 111op'1iito iiiolliig" SCHOEPPNER, INC .. -. --�·��=-��re .. ---· re otb tuiiid-----iim014 , 1 ·55902 E 11rttt l1vol (Kahler Grand -Dunkin BRYAN SCHOEPPNER 120 YANTIS STE 350 .-r_ ... t-t---·-.:·--=·"·'°'"'""'· .. ---.... -,;;:-:::.=� 1F�=-"' =:r;:;:" .... _ --r·o-·t -,,_. ! • l"-"..,l=,_ tm«»a·· .,,,_;,,..,-.,.,., · --"'"'====�?.'��":'.'. i,;;..��'::_---··rco10·1so·uid--·1--imii1s
� )Muld-FamltyBldg" �Iteration -t14-0004MFB; 2/19/201�01'1969 :22NBR0ACWAYA;.JVE, sa�ti:7�:::::����orMtd ��i��s����uc� c:H=:E�=ES·PARK' ... �I iiiiii--�311112014' L I I •ROCHESTER,MN5590II outwallswlthloamln1<1latlonard RYAN SCHULTZ 1059EAST900S0UTH •1 --• I --• i -· ____ L__ --- -·-· --.. lat.wack (ParkT:'"") .. ______ ����E-LTLAl<ECITY,lfTB4tOS __ L 1BuliMU �00119 I 2N2/20�j1ffi2 '.:=2 ����STER,MN S10,900l�����:�-o�E��� _:_ ;.�:��:_-_-_-_-__ -_j-+jci�.---_--4141i1D14l
P'�
30
DMC Report 2013 Building Permits (�th Quarter· October 1st to December 31st) eomplttfd aundloo etanil• (Within DMC Boundary, don not Include Mayo Pro)ec!s)
..:i.
r-LSubTypeL.avel "icaiagoiyCivir JPetmttNum6:JiiinnttlHuo [P•rc,1 · IAddroHlnlo · ----� ··,Pormlt" · workllHcrlptlon ---·-- • .. ·. [Lie Prof . ·----�-----·iown.;··-·--------·---TcuiiiiitPemPcu,,.,,t·P"imiiti ' ' I.......... ,-I'"""" 1-·-f':': =""'·"oc"""'�i'"O::'t;::..,-=�-=�--e=ON -m< 1=,��i:-:;-i�·::..·
\' �-.. -�-1R13-0f53ea·· 101212013loome····4. ��Wes"r,RocHesteR,MN ·+-·SS5,ooci"E.•:;;f..':".::.':.-e�=.....,.,,-;;;,;," "'"'" ---�•••T-,._,j :fTeoriimirc111aldg"'•· :Alinuan· '" R13-o348CB 10/29/2013la1m:i--t-svi'iisi';·s'ru300-,---t-12aa,oooE��==:.;-a.-rii,rc1�1c-unff""#300--��:f�sa04 __ _11·::::E;;E;�i�" .. ·rco1oiiiuii"'1"··-··"1ROl2'c1J[FIOCHEST!R, MN i5S802 �Btua Slty Dental· Marchant& Exchange) ITodd Se\l9!1on �57 29 ST NW SUITE 200 ]
)ii\iiation Ff1�0392eif I f ,2227 7 ST NW ROCHESTER, MN 55801 201kma·-f · · Exchange Bldg· Unit 2) I 11155 1 Ava SE Suite #9 l 85902 � l(Zlrnmerman ollloee • Mlfchantl 'Jo•h sntka 115112 Nonh Broadway
l5 }ciinmin:lil B�llkl.,-li\13-03511CB�l 11/i<C.'201¥17854 '\:W"1 ;(vl:!7'FfocHEmi'i;1.IN I ···$&3,320 �=6: �: :.����!�rRS, iNC �?i�!���----· ·-· -1�oro1iiu1c1 +--. -1iilici' 1 I 110 Ave SW Suite 102 e ·1eommerolil-_.. ..... 1Aiintloii .... l1Hs:o.i3scB I 12/1&'20131017882° fisciilililOADWAY,ROOHEsi'Eii;"'l""-·s14,ooor.Miln-lffll.i1tiiat1onitorgiitahap----��r�ills;INC----�or�r!t·��55902 cafoiiiiiid"J __ -· 3/1ffl14 N55904 a!Hllklll-Manor(DoubleT1NHoiel) FtYNOR DINE 12123AVE SWt105 \ I .
:���:rv::.�N 55902 ROCHESTER, MN 55902 I
I.7 IMu!U-Famlly Bldg " -eel Pa�1a1·-r13-0054MFB 10/B/2D13 012778 -·-9 f!lN 1 ST, Rachostor 155902. ··r-$1S0,0001Fooiliioa andFaundatlon walll lhrough �. l<EY BUILDERS, INC.. . MCSHAY UP ---···---� Flnlled 1·· -WV,I014, I . . Ft flrat leYII, no precut, partial phaao parmltfFtlAN MOSER 10873 VIOLA RD NE I r 20·unlt 4-atory apartment building (The 7700 AJA COMMERCE DR SW EYOTA, MN 55834 I_J_ t ltlan111) =H�TER.� I 1 8 IMiilWamliyBidg N -,Miii! S 1 ST:Fiatiieli1rM902 -+l-.."".-.-ln::tw=20-.:u=n'<'1t·4 .. toryeiiiimeiifiiu11dtng IKEYSU1LDERs.iNcr�· Topelan�LC-=riiiil.a-1�014I With ---(Tho Lofta an 111) '8f!IAN MOSER 4057 llll St NW l J , J 7700 AIR COMMERCE DR FN/ Suite 200 U 'jsre, A Roohaatlf, WI 55901 . _ROC��!E!l,_MN558 -��� . $2,cas,795
31
OMCReport 2013 Building Permits (3rd Quarter -July 1st to September 30th) Cgmpletld ButkHng Permb• (Within DMC Boundary, does not Include Mayo Projects) (Report updated 3-16-2016 to omit public buildings) • iS!bTypeLavlr \Catagorylo,,'Oi -�Ji Number �llffl'IIIHUI IPll�J-Hlnlo. .. . ... . . 'Pennlt ... ,Worl<Oosa�n . ·1LlcProl 1°""9' ..'¢unentl'elm� CUrran!Pllfflll .. . . rteommiiiciaTBiit,i-!AJtaiatiori-�:itcil ... -. j i:,!l!!-... 7iai201��!_ r•oifsfisr: ROCHESTER·; w:r---"-"'-��-''fe:55ll�inieiior iihiiiaiioiiiiiiigu-,OO!cn (Hoiiday • Holiday Stote ' .• 1Hiii1c1ay·m -:�,5'fiiiild Statua D:n\izo;,
3 ,commerclal Bldg 1Altaradon 13'°133Cil 711712013 014309 315 S BROAD AV, FIOCH , j $4,000ITtnant itup (�.... cllee and Tea O ER Ch ristopher Holoway .. . · naiad . • .. ··128i2o13 ------! r-·-·-· 155�------··-·--�·-2���--·-----: . . ��s5r�.MN 55902 I 4 1Commarcial Bldg ,Phuad Pllllal 1R13·0231CB 7/1712013 011554 217 SW 2 ST, ROCHESTER, MN 1 $25,0001ln1orlordemclltion cl llcoring, celllngs and KEY BUILDERS, INC Tonic, Inc. Cloald I 11/!5/2013 !Permit I 5902 ! iwals lor a new restaurant In txlotlng BRIAN MOSER 12172 ST SW \ 1 I , space (Tonic) noo AIR COMMERCE DR sw ROCHESTER, MN 55902 I 1 {Sea also ftl\4) pam,lt #R13-0230C9. STE# A ts-rcanmorc111 Bldg -··F'8'811on r3--0182CB "i·-· 7/23/2013 017887 -����,JJ���· -·--.. -·&.oooj;�:"F!:�'sPhilySandWlcl! -100 :::e�A�2°902 -·-·---·-··· :'s ':i"n..va11ey Rd N E . ···----1c of O llaued1 .......1111/20131
. .r-... +-I""-· +-�-, .... �=-"·--�;;:=-1i��":""--$�--1--, -,.....J
': 1 lcanmaraalBldg IAltaratl<ln T13--0230CB + 8/22/2013 011554 j1217SW2 ST,ROCHESTER,MN 11 s100,00011 nowraataurantlnexlotlngspaca(fcnlo) �;:����r.�912 1'¥.;:.�.::.KE,IA�_ /corOlllued l 11/8/2013 I .'81902 See lntenordemolltlon p,m,ltffl13· BRIAN MOSER 12172STSW r I STE#A I I '1 I 1 J_1C231CB noo AIRCOMMERCEDR SW �HESTER,MN55902 I I
[Trecmmerclal Bldg 1Al•raticn --r-,·"""'1--.. -.. ,.., ..... ,.,... ...... ---+-sii,oool:;-1nintiiii1ih (1�Ccijjlf:· ... ·-�����it:1��� NFmlPRESS --'-d' oi O llaued. 11 -·'"'fiiii2ol!. · �HESTER, MN 55902 NiA'On Expraaa • Ste 208) 1N1my Kana 100 1 ST AVE SN I ' I BPCHESTER MN 55906 I · a ICOmmaioiil Bldg �.----aR1� 1111&'20 ,-1 SWYAVE;llbCHEffil(MN $4ll-;ioo/Tonant finish (1iil,';i'iiciiacot, • !ltHOEP�R, INC Ann Ch&louMla ----/co.-Cfiiiiiiof ·--1-0/Zlr.11113 1 1770 75 ST NE il:loc:HESTER, MN 55902 i I j'SII02 . IEasonllal Juloe Bar· SUiia 202) JBRYAN SOHO. EP. PNE.R 3985 S.rl<lhira Rd SN J 1 _1 I ��H��EMN 55906 lochastor, MN 5!!902
55802 ' !Bros I HD1 Pot-Suitt 201) I��� �H:PPNER ;:::; HIiia Dr NW I 10 ]Ccmmtrclil Bldg rAllaiilfon • r'"""" I """"'1D17887100 sWU'O!, AOCHESTEA. � seo.ooo,T1111111t fl"lsh (111 Ave Foodec·� !SCHclEPPtie�'iNc"""""·---� re ol O llaued 11121/201:S lROCHESTER, MN 55906 !Flochasl!!'.,_MN 5!ill01 � . 11111iiifflf 12778 l•iffnlw'1 ST. ROCHESTER, MN $1s;ooo Dtmelltlcn far the Lalll Apa,1m1111 \KEV BUILDERS, INC MCSHAY uJi Flnaled &'29/I014 BRIAN MOSER 10873 VIOLA RD NE noo AIR COMMERCE OR SN EYOTA. MN 55934 l . ,�;;·" -..+. � _____ 1 __ � __ 1 ��...i_ �-� ,,,..,��==�.=--+ n;;s.-·--·--ii\Tnd1iooii��sreR ,MN 55902 ElR'orr:fE �� ::c:::::: �=---'..�-� ....... 1: �::=:.:+.:==--· j=·�-.. -5;;, ___ ,: ____ ·�=ii"t'"""'� J::=t�� -��·, .. -� .. ��� .. �1 k-==f�---���:. --r-----�
1!111
32
DMC Report 2013 Building Permits (3rd Ouaner -July 1st to September 3oth) CpmpJtlfd ByHdlng Ptllllllf (Within DMC Boundary, does not Include Mayo Projects) (Repan updated 3-16·2016 to omit public buildings)
-10/M/2013!'.15lliaoiiioiiiiiiii1cig . /Aliiiiilon ri:i-11ilr1m I 918i2o;lllticiiiisi-· 112··sv{5 AVE, ROCHEmR, MN-.-·--··si.oliii'Afti<ailoWNI-· r11move 12)ei(lat1i,g leoe·s CONSTRUCTION INC --1Bl!RGSTROM. RACHE�A -��Fini.led I I l 55902 !window (double hung1), 4 lnlltall (2) now !JAMIE STAUDACHEA 1824 SAVE SW \ , , :1o,gleca11rnentwtndow.stomeetegress 4008 HWY14E ROCHESTER,MN/55902 : , .. \-,.� f.--1 .. �ffl" T ��··-1= ... w--. .. --..... :::::.::-.:.-�.:""�-� --F��+--t � ;:.t ----:,:·t:--1,-::·1 b::·::::! -:::=t: _________ ,�£:::--_,__,!i ' 1'"'11" I 58902 I I Place) l 420 5 AVE s STE A I . I I I -l I LACROSSE.Wl !We01 i r f,Tfsijjs1gn-----'.eulllnau --k�t§!f" I · .,..,.,.,.. --"' i ----"""'""" --lo.,., """""''''"""'""'""/=if ,,_,; [ L i-i 1 1 4205AVESSTEA \ L_j__ I _____ _j__ _j_ -- -____________ :_ ___ I ________ ,�--�LACAOSSE,Wl 54801 ·----
tlnl,ffll
33
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34
MAYO CLINIC
Cry
March 31, 2016
Katie Clark Sieben
Commissioner
Minnesota Depa1tment of Employment and Economic Development
I st National Bank Building 332 Minnesota Street. Suite E-200
Saint Paul, MN, 55101-1351
Dear Commissioner Sieben:
200 First Street SW
Rochester, Minnesota 55905
507-284-2511
mayoclinic.org
Attached with this letter is Mayo Clinic's certification of qualified expenditures of the medical business entity for the
Destination Medical Center (DMC) initiative for the period starting January 1, 2015 and ending December 31, 2015.
The amount of qualified investment for this report is approximately $85.7 million.
Overall, Mayo Clinic expended more than $250.0 million on capital projects and equipment in Rochester in calendar
year 2015. Major projects contributing to it include: Domitilla 3 Modernization, Saint Marys Mary Brigh East Bed
Tower Expansion and addition to Superior Drive Support Center. Again, Mayo Clinic is taking a conservative
approach this year when counting eligible investments and expenditures for purposes of meeting the DMC investment
thresholds.
We look forward to working with the State of Minnesota, City of Rochester, Olmsted County and other stakeholders
to strengthen our economy and further strengthen Minnesota's position as the world's premiere destination medical
center.
Thank you.
Sin.cercly, , �/-E ,V�
i
�.Bolton
Vice President, Administration
Mayo Clinic
cc: Kevin McKinnon, Deputy Commissioner Economic Development,
Minnesota Department of Employment and Economic Development
35
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36
Mayo Investments: 2015 Submission
Total
Expeditures Total Spent as of
reported for December 31st
Project/Equipment Name 2015 2015 District
SDSC Expansion Construction Only 17,450,422.46 20,930,906.74 Outside District
Bed Tower Modernization MB east 11,053,196.76 14,839,697.91 St. Mary Place
Domitilla 3 Modernization 6,048,206.11 6,567,649.66 St. Mary Place
Neurology Renovation, Mayo 8 3,764,497.03 3,764,497.03 Heart of City
GE; DISCOVERY MR750 PET (Assets 149876, ,150145-150157, 150668-150670) 3,698,538.02 3,698,538.02 Heart of City
VARATHON MEDICAL; TRUE BEAM (Asset 162800) 2,895,908.00 2,895,908.00 Heart of City
Saint Marys Hospital Chiller Addition 2,623,112.47 2,964,932.31 St. Mary Place
SIEMENS; PRISMA 3T MRI and Accessories (Asset 157677, 157935-157946) 2,241,875.00 2,241,875.00 Heart of City
USPS Building Purchase (Asset 156757, 156758) 2,185,017.25 2,185,017.25 Outside District
GE; DISCOVERY 710 PET Scanner (Asset 148389) 2,103,046.58 2,103,046.58 Heart of City
Four Operating Rooms Off Core 700 2,074,097.12 3,082,756.73 St. Mary Place
Mary Brigh East Expansion 2,009,593.07 2,009,775.10 St. Mary Place
SIEMENS; SKYRA 3TMRI (Asset 157191, 157322-157339) 1,859,239.00 1,859,239.00 Heart of City
Employee and Community Health Southeast Clinic 1,834,724.04 4,326,200.60 Outside District
Somatom Force CT (Asset 157628) 1,831,372.00 1,831,372.00 Heart of City
SIEMENS; SOMATOM FORCE CT (Asset 149843) 1,750,000.00 1,750,000.00 Heart of City
PHILIPS; XPER FD20 (Assets 147302, 147339, 147392) 1,649,213.30 1,649,213.30 Heart of City
SIEMENS; DEFINITION EDGE CT (Asset 148622, 148623) 1,315,697.00 1,315,697.00 Heart of City
DOM 3/4 Infrastructure Revisions for Remodeling 1,286,328.61 1,959,447.05 St. Mary Place
CT MBM Incremental lnterventional CT 1,250,604.70 1,250,604.70 Heart of City
DLMP Phlebotomy Remodel 1,173,668.83 1,604,136.38 Heart of City
Executive, Development and International Program Expansion -Mayo East 5 1,047,756.53 1,389,567.71 Heart of City
land for Ronald McDonald House (Asset 147588, 147589) 1,000,203.16 1,000,203.16 St. Mary Place
37
Mayo Investments: 2015 Submission
Total
Expeditures Total Spent as of
reported for December 31st
Project/Equipment Name 2015 2015 District
SIEMENS MEDICAL; ARTIS ZEE (Asset 146871,146872) 985,408.00 985,408.00 Heart of City
SIEMENS; SOMATOM DEFINITION (Asset 164325) 862,578.20 862,578.20 Heart of City
SIEMENS; CT EDGE (Asset 163463) 856,459.02 8S6,459.02 Heart of City
MR-RO-CN-1-MR/PET installation 760,295.75 760,295.75 Heart of City
CT Scanner -Syr (Asset 162815) 687,812.80 687,812.80 Heart of City
Vascular OR Core 801 SMH 661,076.59 661,076.59 St. Mary Place
G03 Build 2 CT Bays 655,198.35 655,198.35 Heart of City
Incremental MRI Body Scanner 600,079.87 600,079.87 Heart of City
CH N Neuro Scanner CN l-119C 590,162.52 590,162.52 Heart of City
Mayo 8 -Lobby Remodel 498,399.33 498,399.33 Heart of City
Mary Brigh Electrical Upgrades (Phase 3) 456,479.17 1,884,351.84 St. Mary Place
CT Scanner Replacements (3L, 3Z & 4J) -somatom -CH 2 381,846.25 381,846.25 Heart of City
Cancer Center Station Eisenberg 4-3 359,522.31 359,522.31 Heart of City
Remodeling of multiple laboratories on Guggenheim 8 348,636.65 774,090.58 Heart of City
CMCT and Prev. Med. Relocation Gonda 18 to Mayo East 17 287,923.90 358,383.16 Heart of City
Gonda 5, 5th PET/CT Installation & Uptake 274,920.16 301,874.69 Heart of City
SMH Mary Brigh East Corridor Relocation 250,692.96 250,692.96 St. Mary Place
Renovation Mary Brigh Main, PACU -Phase 4 244,816.16 244,816.16 St. Mary Place
SMC, Mary Brigh Main NH, MR-MCR l.ST Replacement Scanner 240,362.00 240,362.00 St. Mary Place
Dr. Lee Diamond Reactor Lab Remodel on Med Sci SL 219,387.21 219,387.21 Heart of City
Cardiac Catheterization Procedure Room 103 Remodel -Saint Marys, Mary Brigh 4 211,059.65 412,584.91 St. Mary Place
Creation of the consolidated freezer and BAP facility at the 2915 Warehouse 207,924.74 4,006,693.46 Outside District
Linear Ace Replace Rm "C" 185,937.00 185,937.00 Heart of City
CT Simulator I Replacement Charlton S-259, S-261 184,912.43 184,912.43 Heart of City
Rad Vascular Imaging Ste 90 144,461.29 144,461.29 Heart of City
Clinical Genome Sequencing, Lab Expansion 125,602.22 296,600.82 St. Mary Place
Remodeling within the Metabolomics Core on Alfred S 112,927.03 611,703.48 St. Mary Place
38
Mayo Investments: 2015 Submission
Project/Equipment Name
Charlton 2 Incremental 3T Body Scanner
2915 Warehouse Infrastructure
SMC, Mary Brigh Main NV, lntraoperative Replacement Scanner
Psychiatry and Psychology Master Plan, Phase lA -Generose Main
Remodeling within Opus 1 to accommodate space for a new CT machine.
Institute Hills Chiller Replacement
Development Remodel
Sports Medicine Center
Dermatology Remodel
Totals
Total
Expeditures
reported for
2015
76,577.92
64,822.76
35,178.43
9,175.55
1,350.00
1,000.00
194.43
(7,228.89)
(13,537.50)
85,708,731.30
Total Spent as of
December 31st
2015 District
76,577.92 Heart of City
693,219.52 Outside District
35,178.43 St. Mary Place
1,213,985.91 St. Mary Place
480,162.90 Heart of City
441,903.16 Outside District
2,679,274.32 Heart of City
5,666,939.49 Heart of City
9,123,648.24 Heart of City
131,919,346.19
39
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40
Certification of Expenditures
Destination Medical Center
For Calendar Year 2015 Due to Commissioner of Employment and Economic Development (DEED) by April 1
Pursuant to Minnesota Statutes, Section 469.47, the Medical Business Entity and the Destination Medical Center
Corporation (DMCC) Board of Directors (assisted by the City of Rochester) respectively submit to the Department of
Employment and Economic Development (DEED) the following expenditures that relate to the Destination Medical
Center (DMC) Development for the calendar year 2015, and the information required to support the approved
methodology provided in the City of Rochester/Commissioner of Employment and Economic Development State
Infrastructure Aid Agreement (State Infrastructure Aid Agreement).
Expenditures Reported This Year
Total Expenditure Reported This Year by Medical Business Entity 1
Total Expenditure Reported This Year for individuals and other private entities 1•2
TOTAL Expenditures This Year
Cumulative Expenditures
Cumulative Previous Expenditures
Previous Qualified Expenditures (minus $200,000,000 Required Initial Investment)
TOTAL Expenditures This Year (from above)
Cumulative Qualified Expenditures as of 12/31 /15
State Aid Qualified for this Year (local government match also required)
General State Infrastructure Aid Qualified for (Cum. Qual. Exp. multiplied by .0275)
State Transit Aid Qualified for (multiplied by .0075)
$85,708,731
$20,487,686
$106,196,417
$46,210,615
($153,789,385)
$106,196,417
($47,592,968)
By providing my signature below, I certify that the information state herein, to the best of my knowledge, is accurate,
true, and complies with the provisions of Minnesota Statutes, Section 469.47 and the approved methodology as outlined in the State Infrastructure Aid Agreement.
For Expenditures by the Medical Business Entity:
LGW&;:J/L
Mayo Clinic Chief Financial Officer 7 I Date
For all �r Expenditures: �-,_... �-M
Date
1 Expenditures need to be after June 30, 2013
2 Private expenditures for the period of July 1, 2013 -December 31, 2015, after adoption of the Development Plan.
Certain additional expenditures for this time period are currently under discussion with DEED, and may be
included in the certification for calender year 2016.
832239.PDF
41
July 13, 2016
Ardell F. Brede, Mayor
City of Rochester
201 4th Street SE -Room 281
Rochester, MN 55904-3782
Dear Mayor Brede:
Department of Employment and Economic Development
Thank you for submitting the 2015 Certification of Contributions for Destination Medical Center (DMC).
W� are excited to assist with this initiative to make the Mayo Clinic, Rochester, and Minnesota a premier
medical destination.
Your certification listed $9,846,771.68 in city contributions between July 1, 2013 and December 31,
2015. You provided a detailed listing of 765 expenditures. These expenditures consisted of direct DMC
expenses paid by the city as well as DMC Corporation and DMC Economic Development Authority
expenses paid for by the city. From that list, DEED randomly selected 17 expenses for review. We
reviewed invoices, payments and city payroll files for accuracy and eli gibility.
Additionally, the city provided DEED with an independent third party report from Clifton Larson Allen
stating the law and procedures for certifying contributions are being followed properly.
While the amount of your contributions qualifies you for $25.1 million, expenditures from Mayo Clinic
and others has not surpassed the minimum $200 million. Your contributions will be credited towards
future years.
Thank you again for your efforts on this groundbreaking economic devel opment effort.
C: Tina Smith, Chair of Destination Medical Center Corporation
Jeff Bolton, Chief Administrative Officer Mayo Clinic
Patricia Simmons, Chair of Economic Development Agency Board of Directors
Lisa Clarke, Economic Development Agency Executive Director
Economic Development Division
1st National Bank Building• 332 Minnesota Street, Suite E200 • Saint Paul, MN 55101-1351 USA• www.mn.gov/deed
Toll Free: 800-657-3858 • Phone: 651-259-7114 • Fax: 651-296-5287 • TlY: 651-296-3900
AN EQUAL OPPORTUNITY EMPLOYER AND SERVICE PROVIDER
EXHIBIT C
42
Department of Employment and Economic Development'
July 13, 2016
Tina Smith, Chai r
Destination Medical Center Corporation
4720 West Lake Harriet Parkway
Minneapolis, MN 55410
Jeff Bolton, Chief Administrative Officer
Mayo Clinic
200 First Street SW
Rochester, MN 55905
Dear Ms. Smith and Mr. Bolton:
Thank you for submitting the 2015 Certification of Expenditures for Destination Medical Center {DMC).
We are excited to assist with this initiative to make the Mayo Clinic, Rochester, and Minnesota a premier
medical destination.
Your certification listed $85,708,731 in Mayo Clinic expenditures and $20,487,666 in other expenditures.
The Mayo Clinic provided DEED with information on all invoices and payment� to account for their
certification amount. They also provided an independent third party report from RSM US LLP stating the
law and procedures for certifying expenditures which are being followed properly. Additionally, DEED
·staff reviewed invoices and payments in your certification. We selected 62 of your listed expenditures
totaling more than $8.5 million. We selected one expenditure from each of the 62 projects listed. All
invoices for the selected expenditures were on file and payments were made in a timely fashion. DEED
staff also confirmed that all projects had building permits after June 30, 2013. DEED acknowledges the
expenses and payments met guidelines and the internal accounting and auditing system the Mayo Clinic
has in place is sufficient.
Additionally, the DMCC and the City of Rochester provided DEED with a list of 100 construction permits
that were filed to account for the $20,487,666 in other expenditures. DEED randomly selected 10
. permits and was provided the permit application, permit, project closeout, and map of projects. From
this information, DEED confirmed the projects' values, dates, eligibility, and completion.
As required by law, I have determined that the amount of 2015 Destination Medical Center
expenditures is $106,196,397 as you certified. DMC cumulative expenditures are now $152,407,012. The
$200 million cumulative expenditure threshold has not been met and the state will not be investing
funds for public infrastructure or transit this year. The expenditures will be credited towards future
years for this purpose.
Thank you again fo r your effor�s on is groundbreaking economic development effort.
Economic Development Division
1st National Bank Building• 332 Minnesota Street, Suite E200 • Saint Paul, MN 55101-1351 USA• www.mn.gov/deed
Toll Free: 800-657-3858 • Phone: 651-259-7114 • Fax: 651-296-5287 • TTY; 651-296-3900
AN EQUAL OPPORTUNITY EMPLOYER AND SERVICE PROVIDER
43
C: Patricia Simmons, Chair of Ec onomic Development Agency Board of Directors
Lisa Clarke, Economic Development Agency Executive Director
Gary Neumann, City of Rochester
44
C.
DESTINATION MEDICAL CENTER CORPORATION
RESOLUTION NO. __- 2017
Adopting Modification Number 1 to the Development Plan
BACKGROUND RECITALS
A.Pursuant to Minnesota Statutes Section 469.43, the Destination Medical Center
Corporation (“DMCC”), working with the City of Rochester (the “City”) and the
Destination Medical Center Economic Development Agency (the “EDA”), adopted a
development plan on April 23, 2015 (the “Development Plan”).
B.The DMCC also adopted a geographic area in the City identified in the Development
Plan, in which public infrastructure projects are implemented as the Destination Medical
Center development district (the “Development District”).
C.The City and the EDA received a request for a modification to the Development District,
set forth in Exhibit A, attached (the “Proposed Development District Modification” or
“Modification Number 1”).
D.Pursuant to Resolution 42-2016, the DMCC submitted the Proposed Development
District Modification to the City for its consideration and action.
E.The City of Rochester Common Council approved the Proposed Development District
Modification in a Resolution passed and adopted on December 19, 2016. A copy of that
Resolution is attached hereto as Exhibit B.
F.On November 14, 2016, the DMCC made copies of the Proposed Development District
Modification available to the public at the DMCC, City, and EDA offices during normal
business hours, and on the websites of the DMCC, the EDA, and the City. On January
26, 2017, the DMCC published notice of a public hearing scheduled for February 8, 2017
in the Rochester Post-Bulletin, the official newspaper of the City. The DMCC received
written comments through February 2, 2017.
G.In Resolution 44-2016, the DMCC approved the public infrastructure project associated
with the Proposed Development District Modification as consistent with the
Development Plan.
H.With the benefit of input from the public, including the opportunity for written comments
and public testimony, and comments from the City, EDA staff, and officials, the DMCC
makes the following findings of fact and resolution.
45
FINDINGS OF FACT
1.The Proposed Development District Modification relates only to the geographic
boundary of the Development District and does not otherwise amend the Development Plan.
Accordingly, findings 2, 3, and 6 of the DMCC in Resolution A-2015, dated April 23, 2015
concerning the Development Plan, are hereby incorporated by reference.
2.The Proposed Development District Modification is consistent with the
Development Plan, advancing the goals and development to support the destination medical
center framework.
3.The Proposed Development District Modification affords maximum opportunity,
consistent with the needs of the City, Olmsted County, and the State, for the development of the
City by private enterprise as a destination medical center.
4.The Proposed Development District Modification conforms to the general plan for
the development of the City and is consistent with the City Comprehensive Plan.
5.In the Resolution passed and adopted on December 19, 2017, the City approved
the Proposed Development District Modification.
6.On February 8, 2017 at 9:30 AM, the DMCC held a meeting and public hearing to
receive public input and to consider the Proposed Development District Modification. The
DMCC published notice of the hearing at least ten days in advance in the Rochester Post-Bulletin.
The DMCC also received written comments through February 2 , 2017.
RESOLUTION
NOW THEREFORE, BE IT RESOLVED by the Destination Medical Center
Corporation Board of Directors that the Proposed Development District Modification, or
Modification Number 1, attached as Exhibit B hereto, is adopted.
BE IT FURTHER RESOLVED that the DMCC Chair, Vice Chair or Treasurer are
authorized to take such other actions as are necessary and appropriate to effectuate the adoption
of the Proposed Development District Modification.
867884-8.DOCX
46
EXHIBIT A
ORIGINAL CORRESPONDENCE FROM ALATUS, LLC
47
Alatus, LLC
800 Nicollet Mall, Suite 2850
Minneapolis, Minnesota 55402
October 18, 2016
DMC Corporation
Attn.: Board Members
195 South Broadway, Suite 12
Rochester, Minnesota 55902
Dear DMC Corporation Board Members:
Alatus is formally requesting an amendment to the DMC Boundary limits to include the additional parcels
proposed for the Alatus 2nd Street Development footprint. A significant portion of the proposed project,
approximately sixty-five percent (65%),is already located within the St. Mary’s Place DMC sub-district.To
provide a visual reference of the proposed development footprint, an aerial of the site plan has been
attached to the end of this letter.The applicant is requesting this boundary adjustment to develop a mixed-
used,high-quality,precedent setting project serving as a gateway into the overall DMC Development
District,which will adhere to various stakeholders’requests for a quality, sustainable, community-oriented
development.Because Alatus will be requesting funds through the DMCC and City of Rochester Joint
Funding Application,it is necessary that the entirety of the development and the parcels it includes be within
the DMC Boundary.The applicant has been working closely with both the City and DMC EDA staffs to
develop a project that meets the DMC Plan Goals and Objectives.It is also important to note that the
current property owners of all fourteen (14) land parcels are under purchase agreement with Alatus.
The Alatus 2nd Street Development has been proposed with high-quality materials, similar to that of the
Alatus Latitude 45 apartment development in Minneapolis which several people of the Rochester
community visited during the DMC’s “St. Mary’s Place Planning: Site Visit to Twin Cities” event. The project
presents a new level of quality of rental housing the city of Rochester has yet to experience; thus it is an
untested product which market research supports as a demanded lifestyle. Given this quality of
development,the overall project cost is estimated to be approximately $115mm.The overall design situates
a 13-story residential building within the existing block and is respectful to its residential neighbors in terms
of height, massing, ground level circulation and landscaping.While dense, the development seeks to create
a human scale to the ground floor so as to engage the community, residents, visitors, patients, and
employees alike.The building will include apartment and townhome rental housing, retail space, a
neighborhood restaurant, office incubator space, and a fully enclosed parking garage occupied solely by
the building’s tenants.The project will support the residents’ sustainable living experience by meeting
EXHIBIT A
to Resolution C
48
LEED standards and incorporating energy-efficient appliances, low-flow water fixtures, low-VOC paints and
building-wide recycling practices.In addition, the proposed Alatus project provides a highly-activated
pedestrian experience which will exceed the DMC and City of Rochester’s landscaping usage goals and
streetscape requirements.
To provide some background of our progress thus far, the Alatus 2nd Street Development has received its
preliminary phase Restricted Development approval from the City and submitted our Final Phase Restricted
Development Application on October 12, 2016. The Planning Commission review on the Final Phase is
scheduled to be held on November 9, 2016 followed by the final City Council hearing scheduled for
December 19, 2016, at which time it is anticipated that the Council would provide approval of the
Development Assistance Agreement as well as approval of the boundary adjustment. The final step of the
approval process would be held at the DMCC Board Meeting to be scheduled in January 2017,to approve
the boundary adjustment.The DMCC Board will be requested to give its approval to the project at their
meeting on December 15,2016,contingent upon the final approval of the boundary modification in
January.The DMCC Board needs to approve the project before the City Council grants their
approval.Conversely the City Council needs to approve the boundary modification before the DMCC Board
approves that.
We greatly appreciate your review and consideration of the boundary adjustment for the Alatus 2nd Street
Development project. Should you have any questions, please feel free to contact me at (612) 201-8487 or
via cbosmundson@alatusllc.com.
Best Regards,
Chris Osmundson
Development Director
Alatus, LLC
Enclosure –Aerial of Alatus 2nd Street Development Site
Chris Osmundson
49
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EXHIBIT B
CITY RESOLUTION
51
574-16
RESOLUTION
BE IT RESOLVED by the Common Council of the City of Rochester that, pursuant to Minn.
Stat. §469.43, the City approve of the modification of the Destination Medical Center Development
District Boundary as shown on the attached Exhibit A.
The Mayor and City Clerk are authorized to execute any documents needed to implement
this resolution.
PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF
ROCHESTER, MINNESOTA, THIS __ 1_9t_h_ DAY OF December , 2016.
23rd December APPROVED THIS DAY OF ________ , 2016.
MAYOR OF SAID CITY
Res151Approve1DMC Boundary1
E1
EXHIBIT B
to Resolution C
52
A
EXHIBIT A
DATA DISCLAIMER -Destination Medical Center (DMC) Boundary
The DMC Boundary is a boundary for an Economic Development initiative and was approved in the Spring of 2015. The boundary polygon was created based on the 'description· of the DMC area.
The DMC area was not a surveyed legal description and was subject to interpretation. Please note that this boundary is for informational purposes only and is subject to change.
53
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City of Rochester
Memo
To: DMCC Board and Mayor and City Council
From: Gary Neumann
Date: January 2, 2017
Re: Use Of Tax Increment Financing Funds For Transit And Public Infrastructure
At the December 15, 2016 meeting, the DMCC Board adopted a motion to direct the staff to
provide information on the potential use of tax increment financing proceeds for transit
infrastructure purposes.
1.Can tax increment financing funds be used for “transit Infrastructure” purposes now?
YES. Increments generated by DMC TIF districts and a portion of the increments from
other City TIF districts in the DMC Development Plan area can be used for public
infrastructure improvements including transit to the extent those funds are not committed
to a developer. DMC TIF district funds can be used only in the DMC Development Plan
Area. If the transit improvements extend outside that area, a boundary modification could
be considered.
2.Have current TIF Districts within the DMC Development Plan Area been established to
allow for use for some portion of the TIF funds for public realm and transit improvements?
YES. The City has established 6 City TIF Districts and 2 DMC TIF Districts within the DMC
boundary area to date since 2013. In each case a specific TIF District incorporates just
the project site itself. A larger economic development district is also identified in this
process in which TIF funds not provided for the project site itself can be utilized for legally
authorized purposes within the larger economic development district. As shown on the
attached map the City has already been using the DMC Development Plan Area Map as
the economic development district for 5 of the 8 TIF districts we have established. This
allows additional TIF funds to be used for authorized purposes throughout that area. We
intend to do this for all future TIF districts within the DMC Boundary. Transit improvements
is one of many authorized uses for TIF. The City has anticipated that the use of TIF funding
would be a key component to both incent redevelopment, resulting in private investment
175
to secure future State funding, and as a funding source for additional public improvements
that will be needed.
3.Is there any funding available for transit purposes now for the DMC Development Plan
Area?
YES. In the total DMC funding of $585 Million, there is an amount of $116 Million that is
restricted to be used for transit costs. This $116 Million, which is dedicated specifically to
transit, is funded by an estimated $46 Million in local matching funds from Olmsted County
and $70 Million from the State. The legislation specifies that the “City must” use the state
transit aid and the local matching funds for transit costs. To an extent, of all the listed
potential infrastructure improvements listed in the DMC Development Plan, transit already
has the most clearly identified and secure funding amount.
4.What happens if the transit costs exceed $116 Million?
If the approved transit solutions exceed $116 Million then additional funding might be
provided from a number of funding sources including federal funds, the $455 Million GSIA
funding, or other funding sources which might include TIF funds. Decisions on the final
transit solution, the transit mode, parking locations, how the current bus system and future
bus improvements might mesh with a transit system, the capital costs to be approved,
future operating costs obligations and other decisions will all need to be made by both the
DMCC Board and the Mayor and City Council for the use of DMC funds. Those bodies
will need to prioritize the funding for the various proposed infrastructure improvements.
5.Besides transit are there other public infrastructure needs that may require funding from
TIF funds?
YES. For example, the overall goal in the St. Mary’s area has been to essentially re-make
and improve this entire area as a gateway to the downtown and to enhance the major
employment area that already exists at St. Mary’s. In addition to TIF funding needed to
incent redevelopment projects there will be public infrastructure costs that may include: a
reconstruction of 2nd St from 11th Avenue to Highway 52; improved streetscaping;
improved pedestrian crossings, improved connections to adjacent neighborhoods;
consideration of a pedestrian tunnel crossing or a larger tunnel system; and the potential
for an arcade to protect pedestrians. Some of the costs may be paid from other sources
such as assessments and Federal and State street funding but those options are limited.
For many of those improvement costs the City has viewed TIF funding from area projects
as one of the primary funding sources, otherwise those improvements are not likely to
proceed. Those improvements may be ready to proceed in the next few years.
6.Are there other ways to maximize the use of TIF to provide funding for transit or other
public infrastructure.
YES, potentially.
First, in Minneapolis, a Streetcar Value Capture District was created by legislation one
block either side of a potential streetcar corridor. Under that approach the increased
property valuation from both property value inflation and new development was captured
176
resulting in the new property taxes being available, similar to TIF, to pay for transit
improvements.
Second, in the DMC legislation the City of Rochester secured exemptions from certain TIF
provisions that could allow the city to establish a TIF district that could encompass the
entire DMC district or a smaller subset thereof to capture the taxes generated from both
inflationary value increases for existing properties and from new development. This allows
the City to essentially do the same thing that was accomplished in the Minneapolis
Streetcar Value Capture approach without special legislation. Once we are further along
and have determined: the recommended transit option; whether the transit improvement
costs exceed $116 million; more specific information on route and benefits; then this can
be one of the many options that are looked at for funding transit or other improvements.
There would be many potential ramifications to consider before such an option were
selected, including the impact on other taxing jurisdictions.
Third, currently a large share of the TIF proceeds from individual projects are needed to
close an identified gap in the financial pro forma for such projects. That may be driven by
a combination of forces including the much higher cost both to acquire land and to
construct structured parking in the DMC development area and also the reality of market
revenue streams that have not matured to the point at which a reasonable rate of return
can be made without some financial assistance that allows the project to proceed. In 2013
when the initial DMC legislation was being developed this was cited by Mayo Clinic and
its consultants as one of the major factors in the need for some state participation and
financial assistance. It is also consistent with the City’s experience in attempting to
redevelop the downtown area over the last 30 years. Hopefully that situation will change
over the passage of time and the achievement of many of the improvements envisioned
in the DMC, such that a greater percentage of the TIF proceeds can be used for public
infrastructure and less to incent developments to come to fruition. Based on the pro forma
analysis of projects that have come forward to date the market has not reached that point.
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178
DESTINATION MEDICAL CENTER
ECONOMIC DEVELOPMENT AGENCY
To: Lt. Governor Tina Smith and members of Destination Medical Center Corporation board of
directors
From: Jeff Bolton, Chair, DMC EDA
Lisa Clarke, Executive Director, DMC EDA
Date: February 1, 2017
Re: Urban on First Development Project
The DMC EDA board acted unanimously in recommending the Urban on First Development project
to the DMCC as a Public Infrastructure Project, consistent with the DMC Development Plan. The
board further recommended the amount of $3.8 million in city Tax Increment Financing.
Our findings, which are attached, are based on a thorough independent review of the project using
the criteria established by DMCC. Additionally, this recommendation aligns with the City of
Rochester's recommendation.
Thank you for considering this recommendation.
179
DESTINATION MEDICAL CENTER
ECONOMIC DEVELOPMENT AGENCY
Rochester 1st Ave Mixed-Use Development
Evaluation Report
February 1, 2017
EXECUTIVE SUMMARY / RECOMMENDATION
STATEMENT OF RECOMMENDATION:
Based on information provided by Opus Development Company, LLC (the “Applicant”), the Proposed
Project aligns with the Destination Medical Center (“DMC”) vision and is consistent with the DMC goals,
objectives and values. It will significantly increase tax base, create job growth, and attract additional
private investment. It falls in the Discovery Square sub-district, one of the top priority areas for the
DMC initiative and the DMCC board.
The following complete report evaluates the Proposed Project on all criteria as required by the
Development Plan. Based on this criteria, the Destination Medical Center Economic Development
Agency (“DMC EDA”) would categorize the Proposed Project as a high priority DMC project that has
great potential to help realize the vision, goals and objectives of the DMC initiative.
STATEMENT OF ELIGIBILITY:
Based upon information provided by the Opus Development Company, LLC, the Proposed Rochester 1st
Ave Mixed-Use Development Project is a “public infrastructure project” under the DMC Act, and the
Proposed Project falls within the DMC Development District boundaries (Discovery Square Subdistrict).
PROJECT SUMMARY:
The Rochester 1st Ave Mixed-Use Development will transform a surface parking lot into mixed-use
residential and commercial development. It will include 156 units of apartments, 9000 square feet of
street level retail, and structured parking garage for approximately 156 vehicles. It is a total of 238,700
square feet of development. The anticipated residential mix is 48 alcove, 59 one---bedroom, and 49 two-
--bedroom apartment units. The interior amenity package for use by all residents will include a fitness
center, on-demand fitness trainer and gym, club room with demonstration kitchen, premium bike valet
storage area with bike repair stations and replacement parts, dog wash, and secured, tempered garage
parking. Exterior amenities will include two separate and distinct outdoor amenity decks at level 2 which
will include a pool/hot tub, outdoor kitchen and barbeque, seating areas, green roofs, fire pits, stunning
views of downtown Rochester and the Zumbro River. Additionally a level 6 “resident overlook” terrace
will provide residents with views of the greater surrounding area.
180
DESTINATION MEDICAL CENTER
ECONOMIC DEVELOPMENT AGENCY
RELEVANT PROJECT HIGHLIGHTS:
The following list outlines relevant project highlights for consideration:
•Located in Discovery Square DMC Subdistrict;
•Provides capital investment of $38 million;
•238,717 square feet mixed-use building;
•Activates the ground floor with 9,000 square feet of commercial and retail space for restaurants and businesses
•Create permanent jobs in those businesses occupying the building and for property management;
•It will create more than 130 jobs, many of which will be short-term construction jobs;
•Approximately 30% of the TIF generated by the project will be available for other public improvements with the
District;
•Project has received preliminary approval by the Planning and Zoning Commission and City Council for Incentive
Development, with 17 conditions;
•Project will have a functional green roof and developer is exploring the project’s capacity of meeting Minnesota
Green Communities building standards;
•Developer will make good faith efforts to address recommendations from neighborhood organization and DMC
design standards;
•Project will provide quality, high density housing within a priority DMC subdistrict .
181
DESTINATION MEDICAL CENTER
ECONOMIC DEVELOPMENT AGENCY
EVALUATION REPORT
SECTION 1.0 PROJECT OVERVIEW
The Rochester 1st Ave Mixed-Use Development includes construction of an approximately
238,717 square feet, six-story podium commercial and residential complex. Approximately 9,000
square feet of commercial and retail space will be dedicated to the street level along
1 st Avenue South. This Proposed Project will include 156 market-rate rental apartment
units. The mixed use commercial and residential complex will be supported by a below---grade and
above-grade, tempered parking garages for residential vehicles. The proposed development would
redevelop 2 existing parcels including an underutilized surface parking lot. The proposed
unit mix on the residential levels is to have 48 alcove, 59 one---bedroom, 49 two---bedroom apartment
units. The interior amenity package for use by all residents will include a fitness Center, on-demand
fitness trainer and gym, club room with demonstration kitchen, premium bike valet storage area with
bike repair stations and replacement parts, dog wash and secured, tempered garage parking. Exterior
amenities will include two separate and distinct outdoor amenity decks at level 2 which will include a
pool/hot tub, outdoor kitchen and barbeque, seating areas, green roofs, fire pits, stunning views of
downtown Rochester and the Zumbro River. Additionally a level 6 “resident overlook” terrace will
provide residents with views of the greater surrounding area. The project total is projected to be
$38,100,000 and the requested TIF amount in this application is $4,000,000.
SECTION 2.0 MINIMUM ELIGIBILITY REQUIREMENTS OF DMC ACT
Check the following that apply to the Project:
"Public Infrastructure Project"
General Infrastructure Project or
Within DMC Development District Boundaries
In order for a project to be eligible for DMC Funding, the project must be (1) a “public infrastructure project”
and (2) within the DMC Development District Boundaries.
Per Minnesota Statutes, Section 469.40, Subdivision 11, a “Public Infrastructure Project” is described as a
project financed in part or in whole with public money in order to support Mayo Clinic’s development plans,
as identified in the DMCC Development Plan. Based on information, the Proposed Project would qualify as a
“Public Infrastructure Project” as required by the DMC Act.
The Proposed Project is within the DMC Development District Boundaries.
SECTION 3.0 EVALUATION CRITERIA
The EDA’s recommendation for the project outlined herein was formed in consideration of the following criteria:
3.1 DMC Vision, Goals and Objectives / Development Plan Strategies
3.2 Consistency with Development Plan and Other Planning Documents
3.3 Financial Viability
3.4 Consistency with Adopted Strategies, Phasing and Capital Improvement Planning
3.5 Targeted Business Enterprise Strategies
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3.6 Compliance with Economic---Fiscal Goals and Objectives
3.7 Other Project Policy Considerations
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SECTION 3.1 DMC VISION, GOALS AND OBJECTIVES / DEVLOPMENT PLAN STRATEGIES
Does the project include a plan for achieving the DMC vision, goals and objectives and is it critical to
driving the strategies included in the Development Plan?
Is the project consistent with the stated DMC Goals & Objectives and specifically contributing to job creation?
•Does the project meet one or more of the goals and objectives established for the Development Plan?
The Proposed Project provides critical modern housing units to support the growing DMC labor
pool. In addition, the 9,000 sf of retail space along 1st Avenue is increasing tenancy options in
localized area as the Proposed Project is not displacing any businesses. This transformational
mixed use project includes a green roof, many of the mandatory and optional conditions for
Minnesota Green Communities standards, and dedicated public art space in an inviting
walkway towards the river from 1st Avenue. The project meets the goal of developing a resident
community with convenient retail and commercial establishments. It also reinforces 1st Avenue
as an important pedestrian connection to the DMC proper.
Is the project consistent with the DMC Vision?
•Is the project part of a bold and aspirational concept for the future?
The Proposed Project is consistent with the DMC vision of creating a place to Live, Work, Play
and Thrive. The building addresses many sustainable building practices, while creating a new
model for future Rochester mixed-use developments. The Proposed Project is an important
component to the future development of the DMC area. With a need of approximately 3,100
additional housing units this project becomes a catalyst of delivering urban, highly amenitized
rental units to the market updating current housing stock in the immediate area.
•Does the project fit with the principles of the vision?
“At the core of the DMC design is a belief that urban redevelopment is the most vital, sustainable,
and efficient form of human settlement.” We believe the Proposed Project aligns greatly with this
core principle as it will deliver needed rental housing inventory for incoming and existing labor pool
but also helping develop the Discovery Square area by replacing an underutilized surface parking lot
and not displacing any business but actually adding to tenancy options in the immediate area.
•Does the project provide a framework for growth in this sub---district?
By filling a gap in the street wall of 1st Avenue, the Proposed Project reinforces the important
development of 1st Avenue, and larger Discovery Square area, as a primary pedestrian corridor. As
more and more residents move into the area, so too does the new development of services,
entertainment options and jobs thus creating the need to again add to the housing stock. This churn
of development can create cyclical growth for the future.
Does the project build infrastructure to support growth and drive investment?
•Would the investment occur without the public infrastructure to be funded?
The Proposed Project does support growth in the form of labor pool, housing units and local/
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commercial retail tenancy options. The Applicant states they would be challenged economically
if the incentives were not provided; based on our own independent analysis, we concur.
•Is the proposed public infrastructure solely for the benefit of the project or does it also
support the broader vision of the DMC District?
As identified in the Infrastructure Master Plan, there are six (6) key areas of infrastructure
requirements: (1) public utilities, (2) bridges, subways and skyways, (3) shared parking, (4)
parcel development, (5) civic uses, cultural uses and public amenities, and (6) technology
improvement. Any incentives given to this Proposed Project are not solely for the benefit of the
project but to the benefit of the greater DMC vision and improvements to the local streetscape
environment. The Proposed Project includes elements encouraging pedestrian engagement,
focuses on parcels that are underutilized and offers 9,000 square feet of new community retail.
Additionally, as much as 30% of the TIF generated by this project will be available for uses
outside the project.
•Will the public funding accelerate private investment in the Development District or applicable
subdistrict?
The Proposed Project will likely continue a compounding reaction for development in the
Discovery Square market. By adding residents who need services and jobs as you create housing
options additional services will ideally follow.
Does the project provide a catalyst for/or anchor for an approved strategy?
•Can the project reasonably be expected to catalyze or anchor development in one of the six
subdistricts?
The Proposed Project can provide a solid eastern edge anchor to the Discovery Square
subdistrict. Providing a pedestrian link to the river, encouraging further development of the 1st
Avenue pedestrian corridor and by proximity support Discovery Square with additional housing
stock.
•Can the project reasonably be expected to catalyze necessary transportation/transit strategies?
The Proposed Project will encourage the use of alternate means of transportation with the
availability of premium bike valet storage and repair stations as well as the option to live, work
and play in a localized area restricting the need for traditional car transportation to and from
work.
SECTION 3.2 CONSISTENCY WITH DEVELOPMENT PLAN, OTHER PLANNING DOCUMENTS
Does the project include a plan for achieving consistency with the Development Plan (and any
updates thereto) and other relevant planning documents?
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Is the project consistent with the DMC Planning Documents?
•Is the project consistent with the current DMC Master Plan, Transportation Master Plan,
and/or Infrastructure Master Plan?
The Proposed Project fits well with the vision and principles of the DMC Master Plan. The unique
advantage of this site is that it actually densifies a potentially underutilized parcel in the Master Plan. The
project provides housing in proximity to where the DMC Master Plan was proposing. The value added to
the Master Plan is that this site density has been increased when compared to the Master Plan. The
proposed solution helps to tie the vision of this block along 1st Avenue wholly together. Thus reinforcing
the pedestrian experience along 1st avenue.
•Is the project consistent and/or supportive of the Finance Plan, Business Development Plan
and other Implementation strategies of the DMC?
As a goal to attract and retain an educated and highly productive workforce who continues to
desire a live, work, play environment, housing tends to be a key driver. This project delivers in
a truly urban redevelopment way to continue to provide for additional production of the land
in the DMC area.
Is the project consistent with the City/County Planning Documents?
•Is the project consistent with the RDMP Plan or City Comprehensive Pan?
The Proposed Project is a unique destination that provides residents, employees and visitors an
environment to enjoy high-quality living while encompassing business, life and leisure. The Rochester
1st Avenue Mixed-Use project also meets supporting principles of the City Comprehensive Plan: expand
housing choices; enhance the integrity of existing neighborhoods and encourage compact; missed-use
developments.
•If a Transit/Transportation project, is the project consistent with the ROCOG long---range
Transportation Plan?
The ROCOG model was utilized for DMC to determine the effects of development and transportation
system changes. One main area of the model considers the trips generated by land uses and activities.
The Proposed Project will have limited impact on the current traffic flow, in addition the project is
designed to incorporate various options for alternate transportation to reduce the single-vehicle traffic
flow in the Development District.
Does the project support sustainability principles as a core objective in the development and operations of
the project?
Yes, the Proposed Project will support sustainable principles and execute current best practices.
In addition there is an emphasis on sustainable initiatives in sustainable site selection, indoor
environmental quality, energy and atmosphere, materials and resources, and water efficiency.
• Sustainable Site Selection – A redevelopment by nature promotes sustainability of established
urban living patterns, creating a more stable and interactive community. The Proposed Project
is within walkable proximity of public transportation options and allows for an active lifestyle
with abundant bike storage and a bike maintenance shop. It will also be located immediately
next door to an incubator space, adding to the Live/Work area of the downtown.
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• Indoor Environmental Quality – Residences will have access to abundant natural daylight and
views through expansive windows. Each residence will be able to control their own cooling and
heating for comfort and energy usage. Also, low and no VOC material will be utilized in
construction to maximize well-being. Optional Well Building Amenities including lighting, air
filtration, and water quality upgrades will add to the being of residence.
• Energy and Atmosphere – in combination with abundant natural daylighting, low-e windows
will greatly improve energy performance. The air conditioning units will also utilize non CFC
refrigerant. Also, light colored roofing materials in combination with green roofs helped reduce
heat island effect. Green roofs will also reduce and slow storm water runoff of all rainwater
that hits the lower roofs.
• Materials and Resources – best practices include recycle and reduction of demolition and
construction waste materials and utilization of local and regional materials where appropriate.
The building includes a dedicated area for collection and removal of recyclable materials.
• Water Efficiency – emphasis to reduce burden on municipal water supply include the use of
low consumption fixtures and appliances and drip irrigation.
SECTION 3.3 FINANCIAL VIABILITY [Form may vary based on size/scope of project]
Does the project include a plan that is financially viable?
Does the project include:
Project Summary (e.g. concepts, detailed program, project team, etc.)
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
Is the project supported by current market conditions and comprehensive feasibility studies?
The Proposed Project is supported by an extensive market feasibility analysis completed by
Maxfield Research and Consulting LLC. Based on the consultant’s analysis of the property’s
location, demographic characteristics and growth trends of the target populations and
current rental market conditions in the area that a market rate general occupancy rental
housing development on the subject property will be well-received in the marketplace. The
overall vacancy rate for newer product is 2%; indicating pent-up demand for new units. In
addition, the three newest rental projects in Downtown Rochester are averaging rents of
approximately $1.76 per square foot which is driving up the average monthly rents in
Rochester. Maxfield Research and Consulting LLC estimates that a development at the site
would have approximately 25% of its units pre-leased with the remaining units leasing at a
rate of between 9 and 11 units per month.
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Does the project leverage additional private funds, maximizing the use of DMC Funds?
Of the approximate $38,100,000 million dollars in total project costs, private funds will consist
of $11,240,000 in equity and $22,860,000 private debt financing which would maximize the
requested $4,000,000 DMC Funding.
Is the preliminary project finance plan comprehensive and viable based upon Project Team and financial
capacity?
The project has demonstrated financial feasibility and a plan for long-term viability. The funding
request that the Applicant has proposed will support various aspects of the project including
the improvement of current public infrastructure, addition of parking stalls which contributes
to the reduction in traffic flow, and enhances the public spaces and amenities surrounding the
development. These along with other costs of the Proposed Project are considered to be TIF
eligible expenses.
Is the project inclusive of an Operation and Maintenance pro forma?
The Proposed Project’s operating pro forma was reviewed and appears to be reasonable. When
net operating income, TIF reimbursement, and debt service are calculated, it suggests that the
cash flow after debt service could be in excess of $1.4 million per year. This calculation is based
on a $38 million project with nearly $23 million in debt and an Interest rate of 4.5%. Apartment
occupancy rates are projected to be at 95%, and rental rates are projected to be among the
highest in the market. Construction costs are rising, as are interest rates. If occupancy is lower
and/or as construction costs and interest rates increase, cash flow after debt service may be
lower.
Is there a verifiable gap for funding based upon a reasonable return on private investment?
There are additional costs associated with this project that create a gap and support the recommended
TIF. Those costs include the green roof, structured parking, meeting a significant number of Minnesota’s
Green Communities Standards, wider sidewalks, and improving the entryway on the 1st Avenue SW side
of the building. More recent estimates suggest project costs may be as high as approximately $40.4
million. The additional costs referenced above do not translate into commensurate additional income
potential to the developer because the projected rental rates on the apartment units are already at the
top of the market. Consequently, TIF is required in order for the developer to expect a reasonable return
on the private investment.
Is the proposed operating structure sustainable?
The proposed cash flows demonstrate that the project will cover the operating costs and debt service
which will provide an acceptable return on investment.
Does the Project impose any financial obligations on the DMC or City for ongoing operational or maintenance
support?
No.
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Has the project applicant agreed to execute the DMC Development Agreement?
Yes.
SECTION 3.4 CONSISTENCY WITH ADOPTED STRATEGIES, PHASING, AND CAPITAL IMPROVEMENT
PLANNING
Is the project consistent with adopted strategies and/or one or more projects for the current
implementation phase of the DMC initiative?
Is the project part of an approved strategy and current focus? Is the project outlined as an approved
strategy for the project within the Development Plan?
The Proposed Project is located in the Discovery Square subdistrict. Arts and cultural
amenities, public space, green space, shared uses and public amenities, workforce
development and training programs, health and wellness elements, sustainable elements,
provided in the project plan are part of the approved strategy of the Development Plan.
Is the project recommended as a focus for the particular phase of the project in the Development Plan?
The Proposed Project is recommended as a focus for Phase 1 of the Development Plan. The
current focus in this phase revolves around development in Discovery Square.
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Is the project consistent with the DMC---CIP?
The Rochester 1st Avenue Mixed-Use Development supports both of the primary goals of the DMC-CIP – (1)
create a catalyst to begin the process– public or private projects measured by whether they support making
Rochester the global center for health; and (2) investing in strategic projects – that lay a foundation for future
growth and investment in the DMC District. The City of Rochester will benefit from the significant
improvements the Proposed Project will make to the existing public infrastructure.
•If public, is the project specifically listed in the DMC---CIP? Or is the project necessary to
facilitate a DMC related strategy?
N/A
•If private, is the project otherwise compatible with the planned public improvements in the DMC---
CIP?
Yes, improvements required by the Proposed Project are included in the current DMC---CIP.
SECTION 3.5 TARGETED BUSINESS ENTERPRISE STRATEGIES [Form may vary based on size/scope of project]
Does the project include a plan for achieving Local Business, S/M/WBE Project Requirements and
other project requirements, as applicable?
The Applicant states that the project plan goal is to meet the intent of the S/M/WBE project requirements
along with the other requirements of the DMC Act.
Has the applicant agreed to execute the DMC Development Agreement? (the terms of which are provided in
form to all applicants)?
Yes – the Applicant has agreed to execute the DMC Development Agreement.
SECTION 3.6 COMPLIANCE WITH ECONOMIC---FISCAL GOALS AND OBJECTIVES
Does the project include a plan to comply with or support the economic---fiscal goals and objectives of the
DMC initiative? Does the project generate substantial economic-fiscal gain based upon job projections?
Based upon job projections, the project has the potential to create approximately 102 new
construction jobs for all trades of the construction and development process. Once
operational, it is anticipated that 29 new positions are created to efficiently run the ongoing
management of the property.
Does the project generate substantial economic---fiscal gain based upon tax base projections?
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Olmsted County assessor staff has not determined the fully assessed taxes for the project. The
estimated stabilized real estate taxes which was used in the proforma is $472,000 a year broken
down by $54,000 for retail and $418,000 for the residential.
Does the project maximize the opportunity for investment by attracting other private capital?
The location, mix-use and amenity package of this project would be unique to the Rochester
market. If it is constructed and succeeds, this project could serve as a demonstration to other
potential investors that development in Rochester is a good risk.
Is the project required (e.g. public works) to continue to seed investment in the DMC District?
The increase in annual property tax revenue will be a substantial amount for the City of
Rochester to invest in future public and private developments.
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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 District and/or
specific business development and economic development strategies that are adopted as part of
the DMC Development Plan?
The inclusion of retail on First Avenue will provide new retail tenancy space which does not displace any
existing retail or commercial space on the First Avenue corridor. In addition to new retail on the first avenue
corridor, the Applicant have also reserved space along the pedestrian link between 1st and Broadway which
will provide opportunities for public art to be displayed. The art installations could be programmed or a
rotating collection provided by the city or local artists. The project will provide an annual grant of $1,000 for
ten years to promote and display the work of makers, artist and innovators in the dedicated pedestrian and
art areas.
SECTION 3.7 OTHER PROJECT POLICY CONSIDERATIONS
Is the project inside the DMC Development District?
Yes, the Proposed Project is inside of the DMC Development District.
If the project is not inside the DMC Development District, are they asking for a boundary change?
NA
If so, are the recommended changes:
•Limited to the area required to support the project request? Yes
•Consistent with the core strategies and planning documents? Yes
•Essential to the strategies and/or catalytic to growth under the DMC Development Plan? Yes
Does the project include any distinctive social and/or community benefits that are not specifically
required by the DMC Act?
The Rochester 1st Ave Mixed-Use Development incorporates social and/or community benefits that are
not specifically required by the DMC Act. Public amenities include the addition of new short term on-
street parking for commuters to engage with local retailers and commercial tenants for 1st Avenue and
approximately 9,000 SF of new retail space which does has is not dislocating any existing or local
businesses.
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D.
DESTINATION MEDICAL CENTER CORPORATION
RESOLUTION NO. ___-2017
Approving the Urban on First Development, With Conditions
BACKGROUND RECITALS
A.Under Minnesota Statutes, Section 469.41 Subdivision 13, a project must be
approved by the Destination Medical Center Corporation (“DMCC”) before it is proposed to the
City of Rochester (the “City”). The DMCC must review the proposed project for consistency
with the Development Plan, adopted by the DMCC on April 23, 2015 (the “Development Plan”).
B.By correspondence to the DMCC dated February 1, 2017, and attached hereto as
Exhibit A, the City has requested approval of the Urban on First development project (the
“Proposed Project”), and that City expenditures and financing in the amount of up to $3,800,000
be credited to the City’s $128,000,000 local contribution as required by statute. The City’s
expenditures and financing include funding from tax increment financing bonds.
C.Pursuant to Minnesota Statutes, Section 469.47, subdivision 4, the City’s local
match contribution may be provided by the City from any source identified in Minn. Stat.
Section 469.45 and any other local tax proceeds or other funds from the City and may include
providing funds to assist developers undertaking projects in accordance with the Development
Plan or by the City directly undertaking public infrastructure projects in accordance with the
Development Plan, provided the projects have been approved by the DMCC.
D.Pursuant to Minnesota Statutes, Section 469.45, Subdivision 4, the City may elect
to establish one or more redevelopment tax increment financing districts within the Development
District to fund public infrastructure projects.
E.Minnesota Statutes, Section 469.40, subdivision 11, defines “public infrastructure
project” as “a project financed in part or in whole with public money in order to support the
medical business entity's development plans, as identified in the DMCC development plan” and
expressly includes, among other items, the ability to
(1) acquire real property and other assets associated with the real
property; . . . (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, utilities systems and related
facilities, utility relocations and replacements, network and
communication systems, streetscape improvements, drainage
systems, sewer and water systems, subgrade structures and
associated improvements, landscaping, 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
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transportation and public transit; . . . and (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; . . . .
F.The site of the Proposed Project is located in the development district boundaries
as adopted in the Development Plan (the “Development District”) and in the Discovery Square
district as described in the Development Plan.
G.The City and the Destination Medical Center Economic Development Agency
(the “EDA”) have examined the Proposed Project, applying the evaluation factors contained in
the Development Plan, and now recommend the Proposed Project for approval. Copies of those
reports are available and on file with the City and the EDA.
RESOLUTION
NOW, THEREFORE, BE IT RESOLVED, by the Destination Medical Center
Corporation Board of Directors, that the DMCC finds that the Proposed Project is a public
infrastructure project within the meaning of Minnesota Statutes, Section 469.40, subdivision 11,
which provides for: acquiring real property and other assets associated with the real property;
installing, constructing or reconstructing elements of public infrastructure required to support the
overall development of the Development District; acquiring, constructing or reconstructing, or
equipping parking facilities and other facilities to encourage intermodal transportation and public
transit; and making related site improvements; and that the DMCC approves the Proposed
Project as consistent with the Development Plan.
BE IT FURTHER RESOLVED, that the DMCC approves the Proposed Project for the
purposes of Minnesota Statutes, Section 469.47, subdivision 4, and supports the certification of
the City’s expenditures of up to $3,800,000 in tax increment financing identified in the Proposed
Project, upon final approval by the City, subject to approval and certification by the State of
Minnesota, Department of Employment and Economic Development, as part of the City’s
$128,000,000 local contribution.
BE IT FURTHER RESOLVED, that the approvals contained herein are expressly
contingent upon the following: 1) evidence of financing satisfactory to the Board or Executive
Committee, such evidence to be presented within 90 days; and 2) as compared to the
specifications of the Proposed Project set forth in Exhibit A: if there is an increase or decrease in
the floor area ratio of the Proposed Project that will result in more than a ten percent (10%)
change, or one of the approved uses of a multi-use project is eliminated, then the Proposed Project
must return to the DMCC Board for reconsideration of the approvals contained herein.
BE IT FURTHER RESOLVED, that the Chair or the Treasurer of the DMCC is
authorized to take such actions as are necessary and appropriate to effectuate the findings and
approvals of this Resolution.
867943-7.DOCX
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EXHIBIT A
CITY OF ROCHESTER CORRESPONDENCE
195
ROCHESTER
FIRST CLASS CITY • FIRST CLASS SERVICE
February 1, 2017
Tina Smith
Chair, DMCC Board of Directors
130 State Capital
75 Rev. Dr. Martin Luther King Jr. Boulevard
St. Paul, MN 55155
TERRY A. SPAETH
Redevelopment Director
City Administrator's Office
201 4th Street S.E., Room 266
Rochester, MN 55904-3781
507-328-2000
Fax 507-328-2727
Re: DMCC Board approval for the Titan/ Opus Urban on 1st Development Project
Dear Chair Smith and DMCC Boardmembers:
The City of Rochester provides the following information relating to the Urban on 1st Project for your
consideration at your February 8, 2017 meeting.
1.DMCC Board action requested. Grant approval of the prepared resolution to approve the Urban
on 1st Development (herein after "Project") as a DMC Public Infrastructure Project that is
consistent with the DMC Development Plan. The approval as a DMC public infrastructure project
by the DMCC Board is required before the City Council can act to approve it as a DMC Public
Infrastructure Project. Such approval would need to be made contingent upon the City of
Rochester's subsequent approval: of the Project as a DMC Public Infrastructure Project and of the
Development Assistance Agreement (DAA) for the Project.
2.Current project status/schedule. The City of Rochester has land use, planning and zoning
authority for all projects in the City including within the DMC Development Plan Area. In addition
the City has the authority to provide financial assistance, if needed, to assist in the development
of projects through Tax Increment Financing (TIF) including the authority to establish TIF districts
within the DMC Development Plan area. The DMC legislation authorizes the City's use of TIF for
DMC projects and to receive credit for the TIF financial assistance provided to DMCC Board
approved projects towards the City's required $128 Million local contribution.
� Land Use and Zoning Status. On Wednesday, January 4, 2017 the Project received unanimous
approval of the City Council for the Incentive Development Preliminary Plan. The developer
has submitted the Incentive Development Final Plan application and the City Council will
consider approval of the Incentive Development Final Plan for the Project at a public hearing,
in March, 2017. The City approves incentive development projects under a two-phase process
involving review of a preliminary plan at public hearings before both the City Planning and
Zoning Commission and the Rochester City Council and consideration of a Final Plan at the
J!n Tqua[ Opportunity 'Empfo!Jer
EXHIBIT A
to Resolution D
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City Planning and Zoning Commission as a non-hearing item, followed by the third public
hearing at the City Council. If the City Council approves the Final Plan after the public hearing,
that would provide the final land use approval needed for the Project. If the land use is
approved a separate City Public Works Development Agreement (DA), addressing public
infrastructure construction and utility service matters, would also need to be considered and
approved by the City Council in order for the Project to proceed.
h., Establishment of Tax Increment Financing (TIF) District and Development Assistance
Agreement (DAA). The land use approvals would allow the Project to proceed to construction
by the developer and are independent of any financial assistance considerations or approval
as a DMC Public Infrastructure Project. However, the Developer has indicated that even with
the land use approvals in hand the Project would not be able to proceed to construction and
be financially feasible without or "but for" some financial assistance from the City or the
DMCC. The developer has provided detailed financial information to document the need for
$4 Million in assistance to close the financial "gap" for this Project. As the DMCC Board is
aware, the potential receipt of State DMC funding will grow over time but is lower/limited in
these early years until private capital investments increase well beyond the minimum
threshold for State DMC funding of $200 Million. As both an alternative to State DMC funding
to fund early stage DMC projects and in order to retain future bonding capacity for future
DMC capital needs, the City can utilize its authority to establish a tax increment financing
district within the DMC Development Plan Area to provide financial assistance through TIF to
allow the project to proceed. The City Council will consider establishment of a tax increment
district and terms and conditions of a Development Assistance Agreement (DAA) at its
February 22, 2017 meeting, contingent upon final land use approval.
In instances in which the City provides TIF financing for DMC Public Infrastructure Projects,
the State legislation makes provision for the City to obtain credit for such costs towards its
required $128 Million City DMC contribution. For the Urban on 1st Development project the
staff will be recommending to the Mayor and City Council that the City provide $3.8 million
of tax increment financing assistance for this Project. The Council will consider this as a
component of the Development Assistance Agreement (DAA) at their meeting on February
22, 2017. It should be noted that the City staff has been working closely with the DMC EDA
staff in the review of all aspects of this Project including the proposed amount of financial
assistance that is recommended for the Project. The DMC EDA will be providing their
comments on the Project separately and independently from the City staff. The DMC EDA
staff and the City staff are in agreement concerning the recommended amount of assistance
and the developer has indicated that they can proceed with the Project with that $3.8 million
level of assistance. Approval by the DMCC Board of the Urban on 1st Development Project as
a DMC Public Infrastructure Project will also mean that DMC provisions relating to prevailing
wage rates, WMBE, and American-made steel will also apply for the construction of the
Project.
The City staffs review of the financial information provided by the developer which showed
a financing gap, was based on our experience in reviewing many other TIF projects over the
years and a financial analysis of the submitted developer information by Springsted, Inc., the
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City's financial consultant, which performs such reviews for many communities. The public
assistance comprises approximately 1/lOth of the project development cost. In the instance
of this Project there would be a conservatively estimated 25% of the total TIF proceeds
available for other public improvements within the district. The City staff believes that these
are supportable measures for this Project.
3.Financial Impact Information.
The request for public funding, as a proposed Public Infrastructure Project, is what requires DMCC
approval before the presentation to the City Council.
a.Urban on 1st Capital Project Investment.
(1)General State Infrastructure Aid (GSIA). The Urban on 1st project developers have
submitted information that shows that the overall project cost is estimated at $38.1
Million. That $38.1 Million investment is multiplied by 2.75% to determine the amount
of General State Infrastructure Aid {GSIA) payments that investment may be equal to
annually, which is $1,047,750. Under the City "pay as you go" TIF approach however, the
annual GSIA payments will start lower than that and will grow to the$1,047,750 over
several years.
(2)State Transit Aid (STA). That same $38.1 Million investment amount is multiplied by
0.75% to determine the State Transit Aid (STA)annual payment equivalent amount, which
is $285,750 per year payable annually over several years, but lower in earlier years as
noted in (1) above. An estimated 40% of the annual STA amount would be from the
required local match provided by Olmsted County.
(3)City TIF Contribution. The State GSIA can only be received if sufficient matching dollars
have been spent by the City at the rate of $1 City to secure $2.55 GSIA. The proposed City
TIF contribution of $3.8 Million is multiplied by 2.55 to determine the amount of GSIA
that can be secured from that $3.8 million matching contribution, which is $9.69 Million.
In the early years of the DMC initiative, the City expenditures will result in excess credits
towards future State GSIA payments until the capital investments catch up. Those excess
credits will carry forward for later years of the DMC initiative.
4.Summary of the Proposed Project.
a.The applicant is proposing a 6 story, 156 unit market rate rental apartment project, that also
has approximately 9000 square feet of commercial retail space on the ground floor along the
1st Avenue SW frontage. The project contains 162 structured parking spaces, enclosed within
the development site. The project is located south of 4th Street SW and has building frontage
along both South Broadway and 1st Avenue SW and is located within the DMC Discovery
Square subzone.
b.From the developer submissions: "The primary goal of the development is to provide the
level of vitality that this prominent site deserves. In its current state as a surface parking lot,
an opportunity has been found to enhance the 1st Avenue pedestrian experience. This site
serves as an outstanding in-fill site in the Discovery Square district of the Destination Medical
Center (DMC) District of Rochester. Enhancing the vibrancy of this site will contribute to the
198
liveliness and character of 1st Avenue and Rochester as a whole. This mix of residential and
retail uses will attract more activity to the site at all hours.
5.How does the proposed Project address the DMC Development Plan goals and objectives? {these
are addressed more thoroughly in the developer's application and in the DMC EDA report, but
these are a few that the City staff would note):
a.The Project is within the DMC Discovery Square subzone and the proposed mixed use
development acts as a catalyst by providing a density of housing that supports the existing
commercial development in the vicinity and will support additional development within the
Discovery Square subzone.
b.The Project will provide a capital investment of $38 million within the DMC development plan
area.
c.The Project provides for commercial and retail space to activate the ground level along the l 51
Avenue corridor, which functions as a "Main Street" for retail and downtown vibrancy, which
is consistent with the Rochester Downtown Master Plan.
d.It has been conservatively estimated by the City staff that approximately 25% of the TIF
created by the project will be available for other DMC District public realm improvements.
e.The project develops an underutilized property (surface parking) along the downtown's major
pedestrian street with a development that provides an excellent opportunity for persons to
live in proximity to their workplace and minimize auto dependency.
f.The project is bicycle and pedestrian oriented, and is also adjacent to transit routes.
�Y;;:ted,
Terry Spaeth
Redevelopment Director
199
This Page is
Intentionally Left Blank
200
Mortenson Project:
Proposed Project
in
Discovery Square
201
DISCOVERY SQUARE
PHASE 1
202
Table of Contents
Project Updates
Phase 1 Project Team
Connection with DMC Development Plan
Project Precedents
Schedule / Next Steps
203
Discovery SquareProject Updates
Progress to Date
Mortenson Development announced as Developer –September 2016
National Search for AE Partner –November -December 2016
Selection of Project Partners –December 2016
Kick Off Meeting –January 5th, 2017
Environmental Investigation & Soil Borings –Completed Jan. 16th 2017
Visioning Session #1 –January 13th, 2017
Tenant Recruitment Strategy Kick-Off Meeting –January 20th, 2017
204
Discovery SquareProject Team
205
Discovery SquareConnection to DMC Development Plan
Intentional consideration of and connection to DMC Development Plan
Creation of an ecosystem that fosters “orchestrated serendipity”
Focused on Placemaking
Conscious of Lifestyle
Accelerating the continuum of care
Phasing and Sequencing
Minority Owned Business and Women Owned Business inclusion
Sustainability
206
Discovery SquareProject Precedents
207
Discovery SquareSchedule / Next Steps
2017 Project Outlook
Visioning Session #2 –January 27th, 2017
Market Study –January –April 2017
Tenant Recruitment and Lease Negotiations –February –October 2017
Concept Design –February 2017
GeoTech Stage 2, Phase 1 Investigation –February 2017
Schematic Design –March 2017
Site Plan Submission –April 2017
Design Development –July 2017
Construction Documents –October 2017
Permitting, City & DMC Approvals –July to October, 2017
Close on Financing –4th Qtr 2017
Commence Construction –4th Qtr 2017
Initial Occupancy –1st Qtr 2019
208
Subdistrict Update
Heart of the City:
Public Realm
Design
209
HEART OF THE CITY DESIGN TEAM
RSP + Coen+Partners + 9.Square + HR&A Advisors + Kimley-Horn
HEART OF THE CITY DESIGN TEAM
RSP + Coen+Partners + 9.Square + HR&A Advisors + Kimley-Horn
HEART OF THE CITY DESIGN UPDATE
DMCC Board Presentation 02.08.2017
210
HEART OF THE CITY
SCOPE + SCHEDULE
211
RSP + Coen+Partners + 9.Square + HR&A Advisors + Kimley-Horn
Complete [Discover | Dream | Design | Do] project work plan + deliverables
Public Presentation
October
WE A
R
E
H
E
R
E
December January February March April May
DELIVERABLES / OUTCOMES
DISCOVER
DREAM
DESIGN
DO
RESEARCH REVIEW + KNOWLEDGE SHARING
INTERVIEWS, RESEARCH + OBSERVATION
RESEARCH SYNTHESIS
RESEARCH SHARING + REPORT DEVELOPMENT
DISCOVER PRESENTATION
CONSOLIDATE BASE DATA
DESIGN FRAMEWORKS BASED ON DISCOVERY
CURATE COMMUNITY OUTREACH
STAKEHOLDER & COMMUNITY DESIGN WORKSHOPS
CONSOLIDATE DESIGN FRAMEWORK
DREAM PRESENTATIONS
DESIGN CONCEPTS
OPERATIONS + MAINTENANCE STRATEGY
CONCEPT DESIGN PRESENTATION
TEST KEY IDEAS & GATHER INPUT / SCHEMATIC DESIGN 50%
FULL SCHEMATIC DESIGN PRESENTATION
IMPLEMENTATION PLANNING
PHASING RECOMMENDATIONS
FINAL DOCUMENTATION
FINAL UPDATE
2016 2017
Completed user research and
synthesis. Site analysis. Research
report documentation and sharing with
design team and project stakeholders.
Identification of ideal experience for all
primary user groups.
Development of design parameters based
on discovery work and site parameters.
Programming report of spatial analysis
and technical demands for program
elements. Organize and curate a community
design workshop, and celebrate/promote
findings at SocialIce. Consolidate design
frameworks from all collected information.
Build a framework, create the ideal user
experience. Concept Design presentation,
documenting a series of strategies and
options and how each integrates the data
and documentation of the previous phases.
Test key concepts and gather community
input. Design Presentation
Implementation strategy: a phasing
road map, a plan for developing an
implementation partnership structure,
and site management and maintenance
opportunities.
25th 27th
16th 20th
6th
3rd
15th
27th
DMCC - 3rd or 4th Thursday before 12:00 PM, Bi-Monthly
HoC CAC - (1) Week Prior to DMCC Board Meetings, and as Needed
City Council, Committee of the Whole - Each Monday @ 3:30 PM
MILESTONE MEETINGS
SocialIce: 16,17,18
19th
17th
17th 23rd 26th
tbd
tbd
tbd
Community Engagement Activity
confirmed
confirmed
8th
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HEART OF THE CITY DESIGN TEAM
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SCOPE + DELIVERABLES
PHASE ITEMS PHASE ITEMS PHASE ITEMS PHASE ITEMS
RESEARCH REVIEW + KNOWLEDGE SHARING
INTERVIEWS, RESEARCH + OBSERVATION
RESEARCH SYNTHESIS
RESEARCH SHARING + REPORT DEVELOPMENT
DISCOVER PRESENTATION
CONSOLIDATE BASE DATA
DESIGN FRAMEWORKS BASED ON DISCOVERY
CURATE COMMUNITY OUTREACH
STAKEHOLDER & COMMUNITY DESIGN WORKSHOPS
CONSOLIDATE DESIGN FRAMEWORK
DREAM PRESENTATIONS
DESIGN CONCEPTS
OPERATIONS + MAINTENANCE STRATEGY
CONCEPT DESIGN PRESENTATION
TEST KEY IDEAS & GATHER INPUT / SCHEMATIC DESIGN 50%
FULL SCHEMATIC DESIGN PRESENTATION
IMPLEMENTATION PLANNING
PHASING RECOMMENDATIONS
FINAL DOCUMENTATION
FINAL UPDATE
eam | Design | Do] project work plan + deliverables
Public Presentation
October November December January February March April May
DELIVERABLES / OUTCOMES
GN 50%
2016 2017
Completed user research and
synthesis. Site analysis. Research
report documentation and sharing with
design team and project stakeholders.
Identification of ideal experience for all
primary user groups.
Development of design parameters based
on discovery work and site parameters.
Programming report of spatial analysis
and technical demands for program
elements. Organize and curate a community
design workshop, and celebrate/promote
findings at SocialIce. Consolidate design
frameworks from all collected information.
Build a framework, create the ideal user
experience. Concept Design presentation,
documenting a series of strategies and
options and how each integrates the data
and documentation of the previous phases.
Test key concepts and gather community
25th 27th
16th 20th
6th
3rd
15th
27th
Monthly
gs, and as Needed
day @ 3:30 PM
SocialIce: 16,17,18
19th
17th
17th
23rd
23rd
26th
26th
tbd
tbd
tbd
tbd
confirmed
confirmedWE ARE HEREDREAMDISCOVER DESIGN DO
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HEART OF THE CITY DESIGN TEAM
RSP + Coen+Partners + 9.Square + HR&A Advisors + Kimley-Horn
SUMMARY OF DISCOVERY PHASE
DISCOVERY
Qualitative research was performed over 2 months in varied locations
focusing on the needs of our key market segments: visitors, patients, community
and stakeholders.
We sought to uncover what is uniquely Rochester, and what promotes healing
and connection. Compassion is in our DNA, healing is deeply personal and
comes in many forms.
The design research was branded to the DMC to support an awareness of the
project and it’s outreach to community. People in the community were excited
to participate.
The final Discovery report identifies and insights and recommendations that
are informing experience design framework for the Heart of the City.
“It’s the people.”
We are diverse. We are a uniquely
compassionate group of people who
step in when a need is present.
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EXPERIENCE DESIGN OPPORTUNITIES
Clear aspects of our constiuent’s ideal desired experiences were uncovered. For example connections
are important in different ways to different constituents: to nature (patients), to each other (community),
to self (patient/patient families), activity (residents) and to resources (visitors).
LEVERAGE OUR UNIQUENESS
CREATE EXPERIENCE ZONES TO SUPPORT OUR DIFFERENT USER NEEDS
REMOVE BARRIERS: FROM PHYSICAL TO REGULATORY
ELEVATE HEALTH + HEALING TO AN ART
BE A KNOWLEDGEABLE 360º RESOURCE
PROMOTE DEEP MUTUAL CONNECTIONS BETWEEN VISITORS + RESIDENTS
BE PROUD OF THE CONTRAST + UNIQUENESS
HERE, YOU HAVE TIME
REVEAL THE MAGIC
SUMMARY OF DISCOVERY PHASE
215
HEART OF THE CITY
URBAN FRAMEWORK
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STUDY AREA
Heart of the City
2ND STREET
2ND STREET
B
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A
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A
V
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1S
T
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CENTER STREET
2
N
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CIVIC CENTER
CITY HALLHISTORIC 3RD
DISCOVERY SQUARE
UMR CAMPUS
HEART OF
THE CITY
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HEART OF THE CITY
DESIGN PRINCIPLES
218
MAKE IT ROCHESTER
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HEART OF THE CITY DESIGN TEAM
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AUTHENTIC + CONTEXTUAL
220
MAKE IT A DESTINATION
221
HEART OF THE CITY DESIGN TEAM
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HOME GROWN + WORLD RENOWNED
222
MAKE IT BIG + KEEP IT SMALL
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HEART OF THE CITY DESIGN TEAM
RSP + Coen+Partners + 9.Square + HR&A Advisors + Kimley-Horn
BLEND BIG CITY + SMALL CITY, OLD + NEW
224
REVEAL THE UNSEEN
225
HEART OF THE CITY DESIGN TEAM
RSP + Coen+Partners + 9.Square + HR&A Advisors + Kimley-Horn
REVEAL THE MAGIC OF MAYO
226
HEART OF THE CITY DESIGN TEAM
RSP + Coen+Partners + 9.Square + HR&A Advisors + Kimley-Horn
SHARE STORIES OF VISITORS AND RESIDENTS
227
MAKE IT ABOUT LIFE
228
HEART OF THE CITY DESIGN TEAM
RSP + Coen+Partners + 9.Square + HR&A Advisors + Kimley-Horn
EVENTS + ACTIVITIES FOR A DIVERSITY OF PEOPLE THROUGHOUT THE DAY
229
HEART OF THE CITY DESIGN TEAM
RSP + Coen+Partners + 9.Square + HR&A Advisors + Kimley-Horn
VALUE THE QUALITY OF SMALL SHOPS + KEEP IT UNIQUE
230
MAKE IT ABOUT ART
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HEART OF THE CITY DESIGN TEAM
RSP + Coen+Partners + 9.Square + HR&A Advisors + Kimley-Horn
INNOVATIVE + ENERGETIC + CONTEMPLATIVE
232
HEART OF THE CITY DESIGN TEAM
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INTERACTIVE + TRANSFORMATIVE + CONTEXTUAL
233
MAKE IT ABOUT HEALING
234
HEART OF THE CITY DESIGN TEAM
RSP + Coen+Partners + 9.Square + HR&A Advisors + Kimley-Horn
MOMENTS OF REPOSE IN AN URBAN SETTING
235
HEART OF THE CITY DESIGN TEAM
RSP + Coen+Partners + 9.Square + HR&A Advisors + Kimley-Horn
MOMENTS OF NATURE INSIDE/OUTSIDE
236
MAKE IT INVITING
237
HEART OF THE CITY DESIGN TEAM
RSP + Coen+Partners + 9.Square + HR&A Advisors + Kimley-Horn
FLEXIBLE + DIVERSE PLACES TO GATHER
238
HEART OF THE CITY DESIGN TEAM
RSP + Coen+Partners + 9.Square + HR&A Advisors + Kimley-Horn
YEAR-ROUND USE + PROGRAMMING
239
MAKE IT BRIGHT
240
HEART OF THE CITY DESIGN TEAM
RSP + Coen+Partners + 9.Square + HR&A Advisors + Kimley-Horn
INTEGRATED LIGHTING
241
HEART OF THE CITY DESIGN TEAM
RSP + Coen+Partners + 9.Square + HR&A Advisors + Kimley-Horn
EXPERIENTIAL LIGHTING
242
MAKE IT CONNECTED
243
HEART OF THE CITY DESIGN TEAM
RSP + Coen+Partners + 9.Square + HR&A Advisors + Kimley-Horn
CONNECT THE SKYWAY, STREET + SUBWAY
244
MAKE IT GREEN
245
HEART OF THE CITY DESIGN TEAM
RSP + Coen+Partners + 9.Square + HR&A Advisors + Kimley-Horn
URBAN + NATURAL
246
MAKE IT CONTEXTUAL
247
HEART OF THE CITY DESIGN TEAM
RSP + Coen+Partners + 9.Square + HR&A Advisors + Kimley-Horn
HEART OF THE CITY
Study Area
GONDA
BLDG
BRO
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N
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S
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2N
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BR
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A
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N
U
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3
R
D
A
V
E
GONDA
BLDG
WELLS
FARGO CHATEAU
BARNES
& NOBLE
SHOPS @
UNIVERSITY
SQUARE
ROSA
PARKS
PAVILION
MAYO
BLDG
KAHLER
HOTEL
MARRIOT
HOTEL
SIEBENS
BLDG
PLUMMER
BLDG
CENTER
PLACE
EXISTING PLAZA USE PATIENTS + COMMUNITY MEMBERS SEPARATED IN PLAZA
CENTER ST
2ND ST
PA
T
I
E
N
T
COMMUNITY
50’
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BR
O
A
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A
V
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N
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3
R
D
A
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GONDA
BLDG
WELLS
FARGO CHATEAU
BARNES
& NOBLE
SHOPS @
UNIVERSITY
SQUARE
ROSA
PARKS
PAVILION
MAYO
BLDG
KAHLER
HOTEL
MARRIOT
HOTEL
SIEBENS
BLDG
PLUMMER
BLDG
CENTER
PLACE
CENTER ST
2ND ST
COMMUNITY + PATIENT
50’
CREATE AN INVITING PUBLIC REALM FOR BOTH COMMUNITY + PATIENTS TO BELONG
250
HEART OF THE CITY DESIGN TEAM
RSP + Coen+Partners + 9.Square + HR&A Advisors + Kimley-Horn
BR
O
A
D
W
A
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A
V
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N
U
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3
R
D
A
V
E
GONDA
BLDG
WELLS
FARGO CHATEAU
BARNES
& NOBLE
SHOPS @
UNIVERSITY
SQUARE
ROSA
PARKS
PAVILION
MAYO
BLDG
KAHLER
HOTEL
MARRIOT
HOTEL
SIEBENS
BLDG
PLUMMER
BLDG
CENTER
PLACE
CENTER ST
2ND ST 50’
CREATE MAGNETIC EXPERIENCES TO DRAW PEOPLE IN AND THROUGH PLAZA
**ENGAGING
I
N
V
I
T
I
N
G
I
N
V
I
T
I
N
G
IN
V
I
T
I
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G
I
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V
I
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I
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G
I
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I
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G
IN
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I
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I
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DESTINATION
DESTINATION
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BR
O
A
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W
A
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A
V
E
N
U
E
3
R
D
A
V
E
GONDA
BLDG
WELLS
FARGO CHATEAU
BARNES
& NOBLE
SHOPS @
UNIVERSITY
SQUARE
ROSA
PARKS
PAVILION
MAYO
BLDG
KAHLER
HOTEL
MARRIOT
HOTEL
SIEBENS
BLDG
PLUMMER
BLDG
CENTER
PLACE
CENTER ST
2ND ST 50’
CREATE MEANINGFUL DESTINATIONS THROUGHOUT PLAZA TO ORIENT + ENGAGE PEOPLE
D
E
S
T
I
N
A
T
I
O
N
DESTINATION DESTINATIONGONDA
LOWER LEVEL PLAZA
STREET LEVEL
SKYWAY
UPPER LEVEL
SKYWAY
UPPER LEVEL
SUBWAY
LOWER LEVEL
252
MAKE IT WORK
253
HEART OF THE CITY DESIGN TEAM
RSP + Coen+Partners + 9.Square + HR&A Advisors + Kimley-Horn
BALANCE VARIOUS DESIGN DRIVERS
STAKEHOLDER +
COMMUNITY SUPPORT
CONTEXTUAL +
AUTHENTIC
SITE CONSTRAINTS +
SEASONALITY
ECONOMIC
VIABILITY
254
TO: Jim Bier, Treasurer
Kathleen Lamb, Attorney
FR: Dale Martinson, Assistant Treasurer
Date: January 18, 2017
RE: December 2016 Financial Budget Summary
The attached summary for December 2016 reflects expenditures to year end 2016 of
$2,023,591. The total remaining 2016 budget of $2,237,221 represents 53% of the original with
one MAP request of $229,119.22 outstanding plus some smaller operational accrued expenses
yet to be recorded into this fiscal year.
The December DMCC direct cost section reflects $49,313 primarily representing insurance
charges and legal services. The DMC EDA costs are billed through both the Master Application
for Payments (MAPs) for outside contractors and through working capital loan advances for the
EDA payroll and other operational expenses. DMC EDA Payroll and Operational expenses paid
through July amounted to $629,379 with contract payments through the MAP process totaling
$1,128,417. Details of those contract payments including remaining contract commitments can
be found on the third through fifth pages of the summary as provided by the DMC EDA.
The second page of this summary now reflects DMCC approved CIP project costs that are being
implemented by the City. Total capital expenditures in 2016 amounted to $8,286,798.24. That
represents an increase from the prior month of $246,326.58 and primarily shows up in the
street study work underway.
Please keep in mind that this is not a final 2016 report as it does not reflect accrued expenses
that existed at 12/31/2016. We will be recording those over the next couple months and
reconciling these numbers with the DMC EDA staff in preparation for the audit work soon to
begin.
Please feel free to contact me with any questions or concerns.
255
Destination Medical Center Corporation
Financial Budget Summary
December 2016
2016 Approved Curent Month Dec 2016 Amount Percent
Approved Budget Dec 2016 YTD Remaining Remaining
DMCC Board Expenses 36,612 573 36,039 98%
General Administrative Services 180,600 35,040 67,603 112,997 63%
Professional Services 780,600 14,273 197,619 582,981 75%
City Expenses 275,000 ‐ ‐ 275,000 100%
Subtotal DMCC 1,272,812 49,313 265,795 1,007,017 79%
Third Party Costs ‐ DMC EDA *
Payroll, Staff, Administration & Benefits‐EDA 777,000 48,449 610,291 166,709 21%
DMC EDA Operational Costs 163,000 20,892 47,268 115,732 71%
Economic Development Outreach & Support 495,000 10,530 59,692 435,308 88%
Professional Services 1,148,000 292,985 967,625 180,375 16%
Miscellaneous Expenses 405,000 72,920 332,080 82%
Subtotal EDA 2,988,000 372,856 1,757,796 1,230,204 41%
Total DMCC 2016 4,260,812 422,169 2,023,591 2,237,221 53%
* Note: An additional MAP request for December Expenses totalling $229,119.22 will be paid in Janua DMCC Working Capital Note 1,000
EDA Working Capital Note 50,000
256
DMCC Authorized CIP Projects
Managed by the City of Rochester
As of December 31, 2016
DMCC Project DMCC Project
Revenues
DMCC Project
Expenditures to Date
DMCC Project
Budget
8611C- - Sn/S12AvSW/NW<2StSW>2StNW 3,940.13 300,000.00
8612C- - WZmbrRvrSn/SRlfLin<CookPk>CCDr 200,000.00
8613C- - ChateauTheatrePre-OccupancyM&O 2,655.25 66,045.48 500,000.00
8614C- - DMCTransit&InfrastrctrPgrmMgmt 239,700.00 546,003.45 500,000.00
8617C- - Broadway @ Center Parking Ramp 10,500,000.00
8618C- - SharedParkngStudy&PrgmDevlpmnt 336,424.87 200,000.00
8620C- - City Loop Plan 157,651.19 200,000.00
8621C- - Transit Circulator Study 630,150.00 198,409.07 538,535.00
8623C- - DMCC Street Use Study 630,150.00 367,742.80 775,465.00
8624C- - ChateauTheatreBldgImprov/Purch 500,000.00 6,548,057.75
8625C- - Heart of the City 62,523.50
Grand Total 2,002,655.25 8,286,798.24 13,714,000.00
Prior Month 8,040,471.66
Change 246,326.58
257
258
259
260
Energy Position Update
To: DMCC Board of Directors
From: DMC EDA Staff
Date: February 1, 2017
Highlights:
With help from Center for Energy and Environment, McKnight Foundation, and the Energy
Integration Committee, DMC developed a job description for our McKnight-funded Energy
and Sustainability Director position. The Energy Integration Committee includes
representatives from the City of Rochester, Olmsted County, Mayo Clinic, Rochester Public
Utilities, Minnesota Energy Resources Corp., and DMC EDA. After multiple rounds of
interviews with highly qualified candidates the committee made their selection. Please see
the attached resume for Kevin Bright, who has accepted the offer to serve as he DMC
Energy and Sustainability Director.
Next Steps:
The Energy and Sustainability Director will begin in March, 2017.
261
KEVIN S. BRIGHT [CEM, LEED AP BD+C, Homes, O+M]
63 Highland Drive, Oakland, ME 04963
207-861-2063 | kbright24@gmail.com
BIOGRAPHY
Kevin Bright, CEM, LEED AP BD+C, O+M, Homes, is the Sustainability Coordinator at Colby College. As Sustainability Coordinator,
Kevin supports all facets of sustainability at the College including: occupant engagement programs, greenhouse gas accounting, third
party certifications, new and existing building performance, renewable project development and demand management activities in the
existing building stock. Currently, Kevin is managing an energy management program reduction program aimed to reduce energy
consumption at the College by 20% over the next six years. Previously, Kevin worked as the Assistant Program Manager of the Green
Building Services program at Harvard University in Cambridge, Massachusetts. The program supports Harvard schools and units in
efforts to design, build, and operate their buildings more sustainably. His team helped identify opportunities for improving building
performance and share best practices across the University. The seven (7) full-time Green Building Service staff also met with project
teams to explain Harvard’s Green Building Standards, perform life-cycle costing analyses, facilitate green building trainings, conduct
energy audits, commission new construction and commercial interior projects, and manage many of the University’s LEED green
building certification efforts. During his five years of employment, Kevin gained experience on over fifty (50) LEED projects,
commissioned over forty (40) spaces on Harvard campus and completed ASHRAE Level II energy audits on 70 campus buildings
ranging in space types including: laboratory, office, classroom, data center, residential, dining hall, and library. In total, the Harvard
Energy Auditing program he co-created identified over 750 energy conservation measures expected to save the University $1.5 million
dollars annually and return on their investment in nearly 3 years. Additionally, as a Founding Principal of Ecolutions Sustainability
Consulting, LLP, Kevin provides sustainability consulting, energy auditing, and commissioning services outside of Colby’s campus.
Kevin also focuses on education in work outside of Colby. Kevin volunteers as a member of the United States Green Building Council
(USGBC) Energy and Atmosphere Technical Advisory Group and has served as Chair since January 2015. This group meets biweekly to
discuss issues with the LEED rating systems and provide expertise in forming the rating system to be released in 2013. Kevin has also
taught as a faculty member at Boston Architectural College, an instructor at Middlesex Community College for LEED Credential Test
Preparation courses, held Guest Lecturer positions at Harvard’s Extension School, taught a course at Colby College and has made many
presentations at national Green Building and sustainable operations conferences.
Kevin holds a Master of Arts in Energy and Environmental Analysis from Boston University, and a Bachelor of Arts from Middlebury
College in Environmental Geology.
PROFESSIONAL EXPERIENCE
Colby College Sustainability Office: Sustainability Coordinator – Waterville, ME (May 2013 – Present)
Direct sustainability efforts for new construction projects, renewable energy development, projects in existing buildings, and
through sustainability engagement programs with students, faculty and staff
Manage the College’s greenhouse gas accounting process and reporting
Identify, evaluate, prioritize and implement energy conservation and renewable energy projects to reduce operating expenses
Manage 25 student employees engaged in the student dormitory EcoRep program which promotes sustainable living and assists
with sustainability related institutional research
Ecolutions Sustainability Consulting, LLP: Co-Owner and Partner – Cambridge, MA (2011 – Present)
Provide sustainable design and energy efficiency consulting services, full LEED administration, peer review, owner’s
sustainability representation, energy auditing, program development and commissioning services to clients outside of Harvard
Negotiate contracts and manage personnel in the completion of a variety of projects
Harvard University Green Building Services: Assistant Program Manager – Cambridge, MA (May 2008 – May 2013)
Hired as a Project Coordinator in May 2008, promoted to Senior Project Coordinator in July 2009, and further promoted to
current role of Assistant Program Manager in September 2010.
Manage the energy auditing, energy conservation measure implementation and commissioning services including managing
workflow, securing new contracts, and developing client relationships
Project manage LEED projects at Harvard, ranging in construction costs from $100K to $75 million
Managed multiple personnel in the completion of commissioning, energy auditing, LEED administration, and green building
and sustainability consulting
TEACHING EXPERIENCE
Colby College – Waterville, Maine (2015 – Present)
Developed course materials for a three credit January Plan Course entitled Green Building Design for January 2015 and January
2016. Offered to 16-20 students each year.
Harvard University Extension School: Lecturer – Cambridge, MA (2010 – Present) 262
Developed multiple presentation materials for the ENVR E119 Sustainable Buildings course
Boston Architectural College: Lecturer – Boston, MA (September 2012 – May 2013)
Developed material and lectures for a course entitled Sustainable Building Systems
EDUCATION
Boston University – Masters of Arts Energy and Environmental Analysis 2008
Built map of BU campus in ArcGIS and modeled the energy use index, water, and land use of 250 campus buildings, helped
compile energy audit of 3 departments, and co-authored the final report
Courses: Spatial Analysis using GIS, Multivariate Analysis for Geographers, Risk Assessment, Natural Resource Economics
Middlebury College – Bachelor of Arts Environmental Studies and Geology Joint Major 2006
Completed thesis investigating source of naturally-occurring arsenic in private wells, Stowe, VT (2006)
Dean’s List for three semesters
CONTINUING EDUCATION AND CERTIFICATIONS
AEE Certified Energy Manager Certification (Spring 2013)
LEED AP: Homes Credential (Summer 2011)
Siemens Building Technologies PPCL Programming (Spring 2010)
Harvard University Extension School: Managing Yourself and Others (Fall 2010)
LEED AP: Building Design and Construction Credential (Summer 2010)
University of Wisconsin-Madison – Testing, Adjusting, and Balancing Course (Spring 2010)
The Green Roundtable - Energy Modeling & Optimizing Energy Performance (Winter 2010)
Harvard University Extension School: Project Management (Fall 2009)
AEE Certified Energy Auditor (CEA certification pending Spring 2009)
San Diego State University (2009) - Solar Energy Conversion; Energy Auditing: The Metrics of Green Building
Northeastern University (Winter 2009) - Commissioning of Mechanical Systems; HVAC Design 1
LEED AP: Operations and Maintenance (Winter 2009)
Tufts University – Post Baccalaureate (Spring 2008) - Courses: Calculus 2; Community Economic Development; Methods of
Environmental Impact Assessment; Urban Green Design
Eagle Scout Award (Spring 2001) - Provided local meeting hall with universal access after constructing a ramp and landing
PRESENTATIONS
“Life after achieving your CAP Goals: What are teaching moments for others and how do you plan for the next big thing,”
Panel Presentation AASHE National Conference, 2015, Minneapolis, MN
“Non-Profit Non-Starters? Using Creative Economic Levers on Campus,” AASHE National Conference, 2014, Portland,
Oregon and Greenbuild International Conference, 2014, New Orleans, LA
“Building Blocks of Integrated Design: Goal-setting Charettes Using the Nominal Group Technique,” AASHE National
Conference, 2013, Nashville, Tennessee
“Institutionalizing Green Buildings: A Case Study of Constructing, Operating and Maintaining High Performance Buildings at
Harvard University;” APPA National Conference, Boston, MA
“Internal Energy Auditing to meet Portfolio-wide GHG Reduction Goals;” AASHE National Conference, Denver, CO
“Building Weatherization Planning through Cross-Campus Collaboration;” AASHE National Conference, Denver, CO
“Internal Energy Auditing to Realize Portfolio-wide GHG and Energy Reduction Goals;” NESEA Regional Conference,
Boston, MA
“Sustainable Building and Construction: Myths and Realities;” Lisbon, Portugal
“Designing, Benchmarking and Maintaining a High Performance Building: The Path from LEED NC Platinum to LEED EB
Platinum at 46 Blackstone,” ASHRAE High Performance Buildings Conference, San Diego, CA
“Expect the Unexpected: Systematic Post-Occupancy Evaluation” Greenbuild 2012, San Francisco, California
VOLUNTEER WORK
AASHE STARS Technical Advisor – March 2014 - present
USGBC Maine Chapter: Board Member – December 2013 – present
Sustain Mid-Maine Coalition (SMMC) Board Member – June 2015 - present
Energy and Atmosphere: Technical Advisory Group Chair – United States Green Building Council (2011 – present,
elected chair in January 2015)
AASHE National Case Study Award Winner Judge (2011)263
Proposed Development: Chateau Theatre
To: DMCC Board of Directors
From: DMC EDA Staff
Date: February 1, 2017
Overview:
In 2015, the City of Rochester, with a considerable contribution from Mayo Clinic, purchased the historic
Chateau Theatre on Rochester’s Peace Plaza. The theatre has been closed to public events while a City-
and DMC EDA-led task force considers how to repurpose the theatre.
A consulting team led by Miller Dunwiddie has completed various analyses of the property related to its
current floor space, possible renovation plans, and the management, control, and funding structures
necessary to support such a venue. Their report was presented to the Reuse Task Force and City Council
Committee of the Whole in November.
Next Steps:
City Council asked that there be further exploration of several key elements from the report:
a)Relationship of Chateau Theatre physical space and financing to other adjacent public and
private projects;
b)Consideration of alternative sources for capital funding, inclusive of and in addition to DMC
funds;
c)Further study of the proposed business model and operating income, particularly in the context
of other city-supported arts organizations.
We are working with city staff, adjacent property owners, and others in this next phase.
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Metrics Update
To: DMCC Board of Directors
From: DMC EDA Staff
Date: February 2, 2017
Overview:
Wilder Foundation has continued to be a valued partner in gathering the indicator metrics for the
DMC dashboard. Updated 2014 and 2015 data has started to be collected and compiled into the
dashboard. DMC EDA staff continue to refine the presentation format while incorporating the
updated data for the dashboard.
Next Steps:
An updated dashboard will be shared with the DMCC Board on April 27, 2017 along with a plan to
publish the dashboard and incorporate an interactive webpage model.
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Active Projects in DMC District
Development: Residence at Discovery Square
Developer: Vance Sr. & Barbara Vinar
Purpose: Residential
Subdistrict: Discovery Square
Location: Third Ave. SW and Sixth St. SW
Status: Proposed
Development: Associated Bank
Developer: Bloom Properties
Purpose: Office
Subdistrict: Downtown Waterfront
Location: Broadway Ave. S and Second St. SE
Status: Under Renovation
Development: Urban on First
Developer: Titan Investments and OPUS Group
Purpose: Residential
Subdistrict: Discovery Square
Location: Between First Ave. SW and Broadway Ave. S.
Status: Proposed
Development: Titan Hilton Hotel
Developer: Titan Investments
Purpose: Hotel/Retail
Subdistrict: Downtown Waterfront
Location: Broadway Ave. S and Center St. E.
Status: Under Construction
Development: Mortenson
Developer: M.A. Mortenson and Mayo Clinic
Purpose: Research & Innovation
Subdistrict: Discovery Square
Location: First Ave. SW
Status: Proposed
Development: Bloom
Developer: Bloom Properties and City of Rochester
Purpose: Mixed-Use
Subdistrict: Downtown Waterfront
Location: Riverfront near Second St. SE and Broadway Ave. S
Status: Proposed
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Development: Flats on Fourth
Developer: Stencil Group
Purpose: Residential, Affordable Housing
Subdistrict: Downtown Waterfront
Location: Fourth St. and Third Ave. SE
Status: Under Construction
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Active Projects in DMC District
Development: First Avenue Flats
Developer: Joseph Development
Purpose: Residential, Affordable Housing
Subdistrict: Central Station
Location: Civic Center Dr. and Broadway Ave. N.
Status: Under Construction
Development: Lofts at Mayo Park
Developer: Pougiales Trust properties
Purpose: Residential
Subdistrict: Downtown Waterfront
Location: Sixth Ave. SE
Status: Under Construction
Development: Heart of the City North
Developer: Hammes Company
Purpose: Hotel/Residential/Retail
Subdistrict: Central Station
Location: Center St. W. and First Ave. N.
Status: Proposed
Development: Alatus Development
Developer: Alatus, LLC
Purpose: Residential, Retail
Subdistrict: Saint Marys Place
Location: Second St. SW and 14th Ave. SW
Status: Approved
Development: Chateau Theatre
Developer: City of Rochester
Purpose: TBD
Subdistrict: Heart of the City
Location: Peace Plaza
Status: Completed Report
Development: Heart of the City Public Space
Developer: City of Rochester and RSP Architects
Purpose: Public Space
Subdistrict: Heart of the City
Location: Heart of the City
Status: Studies Underway
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Development: Ronald McDonald House Rochester
Developer: Ronald McDonald House Charities
Purpose: Commercial/Residential
Subdistrict: Saint Marys Place
Location: Second Street SW
Status: Under Construction/Addition
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Saint Marys Place Update
To: DMCC Board of Directors
From: DMC EDA Staff
Date: February 1, 2017
Background:
The public design process initiated for the Saint Marys Place sub-district public realm continues to
move forward. Following data collection, including a site visit to the Twin Cities, the design team led a
process called a Design Sprint. This is an accelerated and in-depth engagement process to illustrate
ideas and preliminary concepts to test out with the community.
Following the results of this phase, three concepts were developed for community feedback. Feedback
data were collected using on-line surveys (650 responses); intercept surveys (150); open houses (150+
attendees); prototype demonstration project (75 participants); and an independent survey by Post
Bulletin regarding subway connection (11,000 responses).
Eight key features emerged that will may find their way into a final design concept:
1.A single North South subway with dramatic public access courtyards;
2.Weather protection arcade system at street level;
3.Frequent pedestrian crossings at street level;
4.Wide sidewalks and four traffic (or transit) lanes;
5.North south greenway to Kutzky Park and Historic Southwest Neighborhood;
6.Strengthen 1st Street bicycle corridor;
7.Prominent transit nodes at key locations;
8.Create gateway features and neighborhood identity.
Other ideas such as mid-block connections, restoring the alley system, activating the front lawn of St.
Marys Place, turning 12th Avenue into a pedestrian plaza, and a more extensive subway system were
also proposed.
Next Steps:
• Initiate prototyping/temporary demonstrations of project ideas;
• Incorporate feedback and study findings into final concept for public consideration in Q12017.
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Marketing and Communications Update
To: DMCC Board of Directors
From: DMC EDA Staff
Date: February 1, 2017
Marketing:
The DMC marketing campaign launched in September is showing great progress with good ranges for
measurements against baselines. This is the high level awareness phase of the campaign with a strong
digital presence resulting in increased web visits and engagement. Attached is the metrics analysis and
the plan for 2017 which includes reaching target audiences for Discovery Square.
Highlights of the metrics analysis for 2016:
Substantial increase in sessions and page views versus the prior period:
o 230% increase in sessions
o 99% increase in page views
Pages per session and session duration has dropped from September/October. Typically we see
these numbers decline when we drive large volumes of new visitors to the site with paid media.
New visitors are not as highly engaged with the brand and are still actively scanning versus more
brand-aware return visitors who are likely to be spending more time with the site.
The most popular page of the site in the November/December timeframe was the DocuMNtary
page which had an average time on page of 5:13 and accounted for 38% of all page views in this
timeframe.
There was an increase of 849 Facebook fans, 80 new Twitter followers and 8 new Linked In
followers in this timeframe. Facebook continues to be DMC's biggest social channel.
Paid social placements on Facebook drove reach to over 1 million unique users while keeping
the engagement rate high at over 3% (average is just over 2%)
Our newsletter subscriptions grew from 1,891 to 2,847, a 51% increase from July to December.
Communications:
The DMC Website has been enhanced and will launch the end of January. New features of the Website
include:
Front page will incorporate the new “DMC in the Middle of Everywhere” campaign.
Navigation bar on the masthead of the home page now includes most used pages.
Maps of the DMC District now include dynamic content describing each project.
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