HomeMy WebLinkAbout4/27/2017 DMCC Board of Directors Meeting - MinutesDESTINATION MEDICAL CENTER CORPORATION (DMCC)
BOARD OF DIRECTORS
MINUTES
Thursday, Apri127, 2017
I. Call to Order. Chair Tina Smith called the meeting to order at 9:30 a.m. at the Mayo Civic Center,
Suite 111, located at 30 Civic Center Drive SE, Rochester, MN 55904.
II. Roll Call. In attendance were Chair Tina Smith, R.T. Rybak, Council Member Mark Hickey, Jim
Campbell, Mayor Ardell Brede and Susan Park Rani.
III. Approval of A ~e da. Mr. Campbell moved approval of the Agenda. Mayor Brede seconded.
A yes (6), Nays (0), Motion carried.
IV. Approval of Minutes: February 8, 2017. Council Member Hickey moved approval of the Minutes of
the meeting held on February 8, 2017. Mr. Rybak seconded.
A yes (6), Nays (0), Motion carried.
V. Public Comment Period. Chair Smith invited members of the public to comment.
Paula Hardin, a Rochester, MN resident, expressed concerns about the public investment in the DMC
initiative and offered suggestions regarding how the community may benefit from future public
investment.
Richard Olen, a Shoreview, MN resident, expressed support for elevated rail in Rochester.
VI. Chair's Report
A. Executive Committee Report. Chair Smith reported that on March 23, 2017, the Executive
Committee, joined by Mayor Brede, met and approved extensions of the agreements with Risk
Management Resources, Inc. and CliftonLarsonAllen. The Committee also authorized the
submission of the 2016 certification of expenditures to the Minnesota Department of
Employment and Economic Development (DEED).
B. Transportation Work Session. Chair Smith reported that on April 18, Chair Smith, Mr. Rybak,
Commissioner Bier, Mayor Brede, and Council Member Hickey joined colleagues from the
City of Rochester, Mayo Clinic, the EDA and the DMC Integrated Transit Studies (ITS) team
at an informal transportation work session.
Richard Freese, Public Works Director for the City, thanked the Board and noted that the
comments made during the work session were shared with the ITS teams. He stated that the
studies proceed on schedule, and that there will likely be a second work session in early June
that includes the City Council, Olmsted County Board of Commissioners, DMCC and EDA
Boards of Directors.
Mr. Rybak stated the intersection of Civic Center Drive and U.S. Highway 52 needs to be
addressed to affect downtown traffic/transit demand and parking. He noted that some issues
are more pressing than others and that phased solutions could be implemented as growth
occurs.
Ms. Park Rani requested information regarding the costs of each option. Mr. Freese stated that
cost analyses will be completed in September 2017.
C. Project Matrix. Chair Smith presented the Board with a matrix of current projects in the DMC
district and stated that she welcomes feedback on the provided information.
D. Resolution A: Commending Stevan Kvenvold. Chair Smith thanked Mr. Kvenvold for his
service on behalf of herself and Governor Mark Dayton. On behalf of the Board, Chair Smith
expressed gratitude for Mr. Kvenvold's role in the stewardship and support of DMC.
Mayor Brede moved approval of the resolution. Council Member Hickey seconded.
A yes (6), Nays (0), Motion carried.
VII. Project Approval Conditions.
A. Resolution B: Reauirine Additional Review of Proiects upon Material Deviation from
Approvals Granted. Chair Smith stated that the resolution was developed to ensure that
projects that changed in a material way after DMCC approval still serve the goals and vision
of the DMC initiative. She thanked Mr. Campbell, Mr. Dougherty and Mr. Rybak for their
comments.
Chair Smith moved approval of the resolution. Mr. Campbell seconded.
Mr. Rybak moved to amend the resolution to provide that a change of 10% or greater of the
approved number of hotel rooms be included in the criteria. Mayor Brede seconded. Ayes (6),
Nays (0), Amendment carried.
A yes (6), Nays (0), Motion carried.
VIII. Project Update.
A. Public Realm Design Panel. Patrick Seeb, EDA Director of Economic Development and
Placemaking, introduced the panel. The panel is intended to allow the Board to keep pace with
public realm change and provide feedback and counsel. Mr. Seeb introduced Tom Fisher, an
EDA board member and Director of the University of Minnesota's Metropolitan Design
Center, to facilitate the presentation of progress on public realm initiatives. Professor Fisher
stated that great cities have great public spaces and that Rochester has an opportunity to become
America's City for Health.
a. DMC Design Guidelines. Terry Spaeth, City of Rochester Redevelopment Director,
described the design guideline sections: downtown, public areas, and individual sites. The
design guidelines were developed with support from the University of Minnesota's
Metropolitan Design Center. Mr. Spaeth described the process, including community
engagement, that created and refined the guidelines. Next steps include planning and
zoning commission and city council review and implementation. Professor Fisher and Mr.
Spaeth stated that the guidelines follow the best examples of effective design guidelines
and are tailored to Rochester. Mr. Campbell requested Board members be made aware of
cities that served as models for the design guidelines.
b. Heart of the City. Jon Buggy, of RSP Architects, began his presentation by noting that the
Heart of the City public realm design has been crafted in accordance with the design
guidelines and is authentic to Rochester. The design team's deliverables will include a
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schematic design, cost estimates, and phasing and implementation plans. Next steps
include a review of the plan with the community advisory committee, city and EDA staff,
and property owners; refinement of the cost estimate; a design recommendation; an
operations and maintenance plan (to include identified revenue-generation opportunities);
and community presentations. A final design and report will be prepared in June 2017. Mr.
Rybak asked the design team to consider how to activate Peace Plaza year-round, how
changes to First Avenue might create more dramatic public space, and how to connect the
skyway and subway system to ground-level space. Ms. Park Rani asked what legal matters
exist, and Mr. Buggy cited street ownership as an example.
Chateau Theatre. City Administrator Stevan Kvenvold began his presentation by thanking
the Board for its commendation of his service to the City of Rochester. Mr. Kvenvold
stated that it is his understanding that financing for the purchase and renovation of the
theatre was to be accomplished through DMC sale tax revenue and state infrastructure
funds. Operating expenses are to be a city responsibility. Mr. Kvenvold stated that the
theatre should be renovated to provide amulti-purpose arts and meeting center but that the
cost could exceed $21 million.
Mayor Brede stated that the Chateau Theatre is a community asset. Mr. Rybak suggested
that, prior to full investment and renovation, interim programming could be allowed to
measure interest in the use of the theatre for various functions. Mr. Campbell stated that
investment in the Chateau Theatre should be maximized by examining innovative ways to
enhance or expand the building footprint and suggested considering a partnership with the
owners of adjacent properties. Council Member Hickey asked the design team to consider
if a renovated theatre would compete with other downtown venues. Mr. Rybak suggested
that the renovated theatre could be a "loss leader" that encourages downtown visitation and
asked the team to consider how tax-increment revenue or anot-for-profit trust could
m itigate the potential for budget deficits resulting from theatre operations.
d. Saint Marys Place. Andy Masterpole, of SEH, Inc., provided the Saint Marys Place update.
Mr. Masterpole stated that the accelerated public realm design efforts are the result of
development interest in the subdistrict, including Mayo Clinic's announced $218 million
expansion to Mayo Clinic Hospital Saint Marys Campus. Protected street-level walkways,
a pedestrian tunnel connecting the north and south sides of Second Street SW, public space
on Twelfth Avenue, mid-block connections that shorten block lengths, functional alleys,
and using Second Street S W as an entrance to downtown are being considered in the current
concept. Next steps include community and City Council presentations and a
demonstration of proposed design concepts. Mr. Campbell suggested that Second Street
SW between the Mayo Building and Saint Marys campus should encourage pedestrian use.
Mr. Rybak stated that transportation solutions could connect these unique places. Chair
Smith suggested including the public realm design work in the next transportation work
session.
e. Discovery Square. Mr. Seeb noted that progress in Discovery Square has come quickly:
the renovation of the Conley-Maass-Downs building, the selection of Mortenson Co., the
opening of 501 First Ave, the approval of Urban on First, and the proposed Residences at
Discovery Square all demonstrate the vibrant market activity. Next steps are to determine
the scope of public realm design work, select a design team, and commence design work
on pace with the upcoming Mortenson project.
Chair Smith thanked the panelists.
B. Discover~quare Project. Jeremy Jacobs, of Mortenson Co. and Eli Hoisington, of HOK,
offered an update on the Mortenson project. Progress to-date includes completion of the
HR&A market study that identified successful building programs for innovation and the
selection of Colliers International as a tenant recruitment partner. Mr. Hoisington noted that
opportunities exist using this first building as an anchor for future development. Mr. Campbell
asked if other research and development centers have served as models. Mr. Jacobs stated that
Johns Hopkins and Cortex are examples of effective innovation spaces but declared that Mayo
Clinic is a differentiator, and noted that access to Mayo Clinic staff, services, and technologies
sets the development apart from others. Ms. Park Rani asked if overseas developments have
been examined. Mr. Jacobs noted that while foreign developments have not been studied, other
project team members, including the Medical Alley Association and DEED, have international
relationships that may inform program development.
C. Other Proiects. Chair Smith noted an update on other projects is in the Board packet.
IX. Mayo Clinic Five Year Facilities Update. Tim Siegfried and Gail Eadie of Mayo Clinic's facilities
department presented the Mayo Clinic five-year facilities update. Ms. Sadie described the medical
zoning districts that direct how Mayo Clinic constructs buildings and highlighted the list of projects
Mayo Clinic may undertake in the next five years. Mr. Rybak noted employee distribution between
downtown and the Saint Marys campus and suggested it could inform transit discussions. Chair Smith
indicated the Board may request another presentation and Mr. Rybak requested that Mayo Clinic find
ways to move employee vehicular traffic through portals other than the Civic Center Drive and U.S.
Highway 52 interchange. Mr. Campbell complimented the Mayo Clinic team on the comprehensive
update.
X. EDA Report. Lisa Clarke, EDA Executive Director, directed the Board to the metrics report and
marketing campaign metrics document found in the Board packet.
A. Metrics Dashboard. Ms. Clarke presented the first review of the DMC metrics dashboard and
noted that Wilder Research is a resource for DMC and many regional groups, providing
stakeholders with a common data set. The metrics report is updated in the spring and fall of
each year. By the end of 2017 EDA staff should have an early indication of which data are
needed, missing, or not needed. Additionally, a summary dashboard will be created for Board
use.
B. Marketing Metrics. Ms. Clarke described the DMC state, national, and international awareness
campaign that is underway.
XL DMCC 2017 Budget: Year to Date Update. Chair Smith noted that the DMCC financial statements are
in the Board packet.
XII. Meeting; Schedule. Chair Smith stated that a DMCC Executive Committee meeting may be held on
May 24 and that staff are examining options for scheduling a second transportation work session.
A. Next Regular Meeting: July 27, 2017 at 9:30 A.M.
XIII. Adjournment. Mr. Campbell moved to adjourn the meeting. Council Member Hickey seconded.
A yes (6), Nays (0), Motion carried.
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