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Home My WebLink About2/1/2018 DMCC Executive Committee Meeting - Agenda and Meeting PacketDESTIN ATION MEDICAL CENTER CORPOR ATION (DMCC) EXECUTIVE COMMITTEE MEETING 1:00 P.M. THURSDAY, FEBRUARY 1, 2018 MAYO CIVIC CENTER - ROCHESTER DESTINATION MEDICAL CENTER CORPORATION EXECUTIVE COMMITTEE February 1, 2018 1:00 p.m. AGENDA Page I. Call to Order II. Roll Call III. Approval of Agenda 1 IV. Approval of Minutes: May 24, 2017 3 V. DMCC/City Report to the Legislature, due by February 15, 2018 5 Resolution No. EC-4-2018: Authorizing Report to the Legislature Pursuant to Statute 35 VI. EDA: Request for 2017 Budget Encumbrance 37 VII. Other VIII. Adjournment 1 2 DESTINATION MEDICAL CENTER CORPORATION EXECUTIVE COMMITTEE May 24, 2017 MINUTES I. Call to Order. Chair Tina Smith called the meeting to order at 1:50 p.m. at the Mayo Civic Center, Suite 101, located at 30 Civic Center Drive SE, Rochester, MN 55904. II. Roll Call. In attendance were Chair Smith, Vice Chair R.T. Rybak and Commissioner Jim Bier. Mayor Ardell Brede was also present. III. Approval of Agenda. Commissioner Bier moved approval of the agenda. Mr. Rybak seconded. Ayes (3), Nays (0), Motion carried. IV. Approval of Minutes: March 23, 2017. Commissioner Bier moved approval of the minutes. Mr. Rybak seconded. Ayes (3), Nays (0), Motion carried. V. DMCC Audit for Year Ending December 31, 2016. Craig Popenhagen of CliftonLarsonAllen reported on the 2016 DMCC audit findings. Mr. Popenhagen stated that it was a clean audit of financial statements, and that there were no findings with respect to internal controls or State of Minnesota legal compliance. Mr. Popenhagen noted that the audit provides reasonable assurances to the Board; that there have been no changes to accounting policies; and that no audit alterations were needed. Mr. Popenhagen complimented the cooperation between all involved entities. In July, Mr. Popenhagen will present the Board with the draft IRS form 990. Extensions for the filing of the form 990 have been filed. Commissioner Bier conducted the exit interview, and stated his satisfaction with the quality of the work of CliftonLarsonAllen and the findings of the audit. Commissioner Bier moved approval of the audit. Mr. Rybak seconded. Ayes (3), Nays (0), Motion carried. VI. EDA: Request for Trademark Authorization. EDA Executive Director Lisa Clarke and Tim Cody, EDA Director of Finance, requested approval of a “Discovery Square” trademark. Ms. Clarke stated the EDA is working diligently on outreach, tenant recruitment, and marketing to make Discovery Square a success. Mr. Cody met with trademark attorneys at Dorsey & Whitney to determine the necessity of protecting the 3 “Discovery Square” brand and ensuring its alignment with the DMC development plan. Dorsey & Whitney has reviewed the appropriate trademark business classes and prepared the documents required to pursue trademark protection for these classes. Mr. Rybak moved to authorize the Chair or appropriate member of the DMCC Board to review and sign the applications to pursue trademark protection of Discovery Square. Commissioner Bier seconded. Chair Smith asked why the DMCC, and not Mayo Clinic or the EDA, should pursue trademark protection for Discovery Square. Mr. Cody stated that the DMCC is the owner of DMC-related intellectual property and that an authorized signatory of the DMCC may pursue trademark protection. Chair Smith asked which business classes will be protected; as an example, Mr. Cody stated that items created or businesses established in Discovery Square will be protected. Ayes (3), Nays (0), Motion carried. VII. Other. VIII. Adjournment. Commissioner Bier moved to adjourn the meeting. Mr. Rybak seconded. Ayes (3), Nays (0), Motion carried. 4 DR A F T January 22, 2018 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 5 DR A F T January 22, 2018 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 Sheila Kiscaden 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, 2018 Report Dear Senators, Representatives, Commissioners and Chairs: On behalf of the Destination Medical Center Corporation (the “DMCC”) and the City of Rochester (the “City”), we are pleased to submit this report on the progress of the Destination Medical Center initiative, in accordance with Minnesota Statutes, Sections 469.40 – 469.47 (the “Act”). Since our last report, dated February 9, 2017, we can report that 2017 was a remarkable year for the Destination Medical Center (“DMC”) initiative, as we reached and exceeded a major threshold. The Act required that private investment lead the way for this private-public model of partnership: over $200,000,000 in private investment, combined with Mayo Clinic’s certified expenditures, had to occur before any state funding would begin to flow. In 2017, we certified $297,708,550 in private investments and Mayo Clinic investments. This cumulative total 6 DR A F T January 22, 2018 Page 3 includes more than $239 million in capital expenditures by Mayo Clinic, and more than $58 million in additional, non-Mayo private development. This early success clearly achieves the legislative intent to have the private investment lead the way for this initiative. Moreover, the City has contributed $26,829,988 in certified expenditures from July 1, 2013, through December 31, 2016. There are currently 21 projects either proposed, under construction, or completed, the majority of which are private investments with no DMC-provided public assistance. Approved DMC projects thus far are expected to generate over 1,000 construction jobs. This extraordinary combination of private investment, Mayo Clinic expenditures, City contributions and state funding are making Destination Medical Center a reality. In 2017, many other important aspects of DMC planning and development were advanced: Business Development: In addition to other private development occurring, construction began on the first phase of the Discovery Square bioscience research campus, a sixteen-block district that will serve as the space for new businesses and entrepreneurs to bring new innovations to market. This is a key job-creating initiative in the bio-science sector. Public Realm Design Concepts: Design concepts were developed for the Heart of the City and Saint Marys Place districts. Energy and Sustainability Goals: Efforts to achieve the energy and sustainability goals outlined in the Development Plan, including a twenty-five percent reduction in DMC Development District use by 2035, are underway. Marketing Activities: Marketing activities were developed and implemented for state, national and international audiences. Transportation Planning: Recommendations are expected in early 2018 with respect to preferred transportation and transit alternatives, which include analyses of street use, pedestrian trails, parking and transportation management, and public transit. I. Destination Medical Center: Background. 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. It addresses several items, including land use, transportation and infrastructure planning, market research, funding priorities, business and economic development and market strategies. 7 DR A F T January 22, 2018 Page 4 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, as well as project updates, investor and developer information, sub-district descriptions, market research, and ongoing 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 initially adopted on April 23, 2015, and amended in 2016 to modify the Destination Medical Center Development District, the geographic area in the City of Rochester in which public infrastructure projects are implemented to support DMC. The Development Plan can be found at the DMCC website: www.dmc.mn. 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 Development Plan. Since the adoption of the Development Plan on April 23, 2015, several projects have been approved by the DMCC. The Historic Chateau Theatre: is located in the “Heart of the City” district as described in the Development Plan. The DMCC approved the acquisition of the Chateau Theatre 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 is currently underway. The Titan Hilton Hotel: (formerly known as the “Broadway at Center” project), is located in the “Downtown Waterfront” district as described in the Development Plan. This mixed-use project includes a 264-room hotel, restaurants, retail space, a skyway connection, 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, and is under construction. Completion of the hotel is expected in 2019. The Alatus Project: is located on 2nd Street SW in the “Saint Marys” district as described in the Development Plan. This mixed-use project involves the construction of an approximately 350,628 square foot, thirteen-level commercial and residential complex. It will include 374 8 DR A F T January 22, 2018 Page 5 market-rate rental units, create 240 jobs, and is expected to generate $115 million in private investment. Site work has begun, with project completion targeted for late 2019. Urban on First: is located south of 4th Street SW between 1st Avenue SW and Broadway Avenue, and is in the “Discovery Square” district as described in the Development Plan. This approximately $38 million mixed use project includes 156 market rate rental units and street level commercial and retail space. Groundbreaking is expected in early 2018. Discovery Square Phase One Building by Mortenson: is on First Avenue SW in the “Discovery Square” district as described in the Development Plan. This approximately $35 million bio-science building will be a center of innovation, and will house companies whose mission is to accelerate bio-science discoveries to market. The building will include laboratory, office, collaborative and retail space. As noted above, this project is the first phase of achieving a key component of the Development Plan: providing jobs in the bio-science sector. Groundbreaking occurred in November, 2017, and construction is underway. Finally, there are several other projects underway in the initial stages of planning, and are expected to come to fruition in 2018. 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 public infrastructure projects for 2016-2018. Projects identified in the CIP include the following: 1. 3 rd Street SW Reconstruct/Design 2. Titan Hotel Ramp 3. Parking and Travel Demand Study 4. City Loop Plan 5. Transit/Transportation/Infrastructure Management 6. Transit Circulator Study 7.Heart of the City Design 8. Chateau Theatre Re-Use Study 9. Downtown Street Use and Operations Study 10. Public Utility Upgrades to Support DMC Development 11. Street Improvement Projects to Support DMC Development 12. Sanitary Sewer Projects to Support DMC Development 13. St. Marys Place Public Realm Study 14. Discovery Walk Study 9 DR A F T January 22, 2018 Page 6 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.” 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, and DEED must certify that $200,000,000 of private investment has been made before any state funding may be paid. In 2017, the cumulative amount of private and Mayo Clinic certified investments was $297,708,550, thus exceeding the statutory threshold. In compliance with Minnesota Statutes Section 469.47, attached is the annual certification of Mayo Clinic and other private investment that was submitted to DEED on March 23, 2017, and the annual certification of City expenditures, that was submitted to DEED on March 28, 2017 (Exhibit A). DEED then conducted its own audit process of the certified expenditures, and approved them. The DEED certifications, dated June 27, 2017, are also attached (Exhibit B). In addition, we offer the following information: 1. Through December 31, 2017, State Infrastructure Aid in the amount of $2,686,985.13 has been received. No State Transit Aid has been received. 2. Actual costs paid by the City from commencement through December 31, 2017 have totaled $26,029,988, 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. Just as the Mayo Clinic investments and other private investments have underscored the commitment to DMC, so too have the City contributions. 3. Through December 31, 2017, Olmsted County has contributed $4,500,000. 4. The 2018 combined operating and capital improvements budget for the DMCC totals $22,191,908. Of this amount $3,000,000 will be provided by Olmsted County from its 0.25% DMC sales tax. The remaining $19,191,908 is to be provided by the City of Rochester from a variety of City funding sources. In addition, Mayo Clinic has pledged financial and in-kind funding to the DMC EDA in the amount of $1,272,220, which represents an increase of $337,800 from the $934,420 provided by Mayo in 2017. D. “Estimated costs and financing sources for projects to be started in the next two years by the DMCC, City, Olmsted County and Mayo.” 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. 10 DR A F T January 22, 2018 Page 7 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. CONCLUSION 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 2018. RT Rybak, Vice Chair Ardell F. Brede, Mayor Destination Medical Center Corporation City of Rochester Enclosures cc: Legislative Reference Library 1070307-6.DOC 11 DR A F T EXHIBIT A Annual Certification of Mayo Clinic and Other Private Investment Submitted to DEED on March 23, 2017 and Annual Certification of City Contributions to DEED on March 28, 2017 12 DESTINATION MEDICAL CENTER CORPORATION 201 4th St. SE. Rochester, Minnesota 55904 Shawntera Hardy Commissioner March 23, 2017 Minnesota Department of Employment and Economic Development 1st National Bank Building 332 Minnesota Street, Suite F-200 Saint Paul MN 55101 Dear Commissioner Hardy: On behalf of the Destination Medical Center Corporation ("DMCC") and Mayo Clinic, I am pleased to forward the following materials for the April 1, 2017 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 ending on December 31, 2016. The City of Rochester, Minnesota, assisted with the compilation of this report. The amount of expenditures set forth in this report is $38,089,951. 2.Mayo Clinic Certification: I enclose correspond ence and accompanying materials from Jeffrey W. Bolton, Vice President of Administration at Mayo Clinic, dated March 23, 2017. Mayo Clinic is certifying expenditures for the period of January 1, 2016 through December 31, 2016 in the amount of $107,211,567. 3.Summary of Expenditures: The summary page, entitled, "Certification of Expenditures, Destination Medical Center" is enclosed, setting forth total cumulative expenditures through December 31, 2016, in the amount of $297,708,550. 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 EXHIBIT A 13 Commissioner Shawntera Hardy March 23, 2017 Page 2 work with the State of Minnesota, City of Rochester, Olmsted County, Mayo Clinic, and our other partners on the Destination Medical Center initiative. Encl. Sin� � I fM Tina F. Smith Chair Destination Medical Center Corporation cc: Destination Medical Center Corp Board of Directors Jeffrey W. Bolton, Mayo Clinic 874762.DOC 14 Attachment 1 15 Building Permits within DMC Boundary (Does not include Mayo Projects) Year 2013 2014 2015 2016 Completed $ 8,500.00 $ 3,500.00 $ 5,537,282.00 $ 1,330,873.00 TOTAL $ 6,880,155.00 2016 Destination Medial Center -Partially Completed Projects Tracking 2016 Partial Completed Project Address Work Claimed 1st Avenue Flats 400 NW 1 Avenue $ 4,976,244.00 Lofts at Mayo Park 123 SE 6 Avenue $ 6,347,552.97 501 on First 501 SW 1 Avenue $ 12,534,186.96 Flats on 4th (Buckeye) 412 SE 3 Avenue $ 8,906,937.40 Total for 2016 $ 32,764,921.33 Dollar Value of building permits finaled in 2016 $ 1,555,125.00 Dollar amount submitted for partial work in 2016 $ 31,209,796.33 TOTAL $ 38,089,951.33 7 16 1 Resldent1•1Bldg Alteretloo Permit Number Perm I !Hut Parcel Oat, Nlll'!lber R13-1658RB 12/31/2013005091 20138ulldlnfiPermlts(Ent1reY,ir) r,DMPLETED IUILPING PfflMITS laimPlffl:d since lhl 2015 CIPPrts but Prior JR ll[n/2Qlil (Within OMC !oundary, dots not Include M.lvo "1oj,ctsJ Addreu Info e1a SW 1 ST, ROCHESTER, MN ""' Permit Valuation Work.Oeseriptlon $3,:500 10replaD11menl"""1dDW11lnbedrwm,or, 2ndand3rdf1Mt RemtM119111tllrigft111 ·-· ...... 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S1urtw1nt.W1531n "'·"' Alleralom 1o exbtwlg lk)'WIY 191t'oomt SCHY,IABUC {Ooublelf99Ho!el) !lift:• Hlne«i 1530Gree11v1eW0rSW S1e10II Rochfft.rr MN 55802 "3.000 Remov1l oftwoslorybtJlldtr-, $30,000 Oemolltonofonellorybl.tldlng S30.000 Oemontron or one 1tory tu! buldlng '"'" Wlll Slgna "RUNN!NG ROOM LTD" OWNER $4,000 WAU algn "blue lky OENTAl CoamellC & OWNER F'lml!oii-- 18,A7,D2 ""'"" 20111Permlt 2018P4tmlt Current Permit Cl,,mtntPam,i! ""'" St llu1Date -·Stllb .. Oite INDIGO FUSION HOLDINGS UC TCOIHUed "2212015 Coro111ued 212-412016 72 0 NORTHERN HILLS OR NE ROCHESTER. MN 5"08 �Fre:1wlcha 1, .. -1121/2015 CofO lnued """""' 10817110 StSE Ch.0.ld, MN 869:13 CMD HOLDINGS llC ,_ 1.2114./2015 CofOIMUlld WUl/2018 2203 8Altl. V HILLS OR SW ROCHESTER. MN 65902 Par kT�ra IM1,19d 2/8/2016 -,,,,,,,,, 22 NorthBrCll!MJ Rochester , MN 1160 Part. TCM&re ,..-2119/2015 """"11211/2018 22North81nadWay Rod1al.-, MN 55806 AL TAEAST LLC -"""'" Col'O l85lMCI ''"''"' 1,409 WOOOLA.NO DR SW ROCHESTER, MN fl6802 MK DOWNTOWN LLC ...... IN2015 ''""'9121201B 0 PO B0X283 NEW �MPTON. IA !50059 Carun Ca pbl Mlnlg4ilmBffl ..... 100:2/2015 CofO!UIICld 3123/2018 1184ST SE Hntlnge,,MNMOl3 AndyAnder1;on ,,_ 1Dl2Wl01� CofOIIIIUlld 4/200!018 21078Ave ROCHESTER. MN 55902 --..... 11N2015 , ....,,..,,.,. 150South BmlOwey ROCHESTER. MN 55904 PRUETT.MICHAEL A Its.Jed 12/4.'2015 """"10/111201& "4012 SPLNW ROCHE�"' MN 56901 f'<IVEAWOOO LLC ..... 1VU2015 """"'10f18'2016 7646 LYNl:W.EAVE S MINNEAPOLIS MN 56-423 INVERWOOO LLC '"""" 121412015 "'""'10/1ll/2016 1;845 LYNDA.LEAVES MINNEAPOLIS MN �23 TIMLO ,_., 1Q/20fl015 Firul!ed 2/812016 A.L!ERTA � T8E6P3 LANGTON, DIANE , .... 11'24/2015 Frulled 2i&/2016 10 19 Sub Type level Category Level Perm it Number Permitluue Pa,'81 Dato Number 1 Commercial Bldg Alteration R16-0009CB 2/2AQ016 07Bn5 2 Cammltn:111Bldg Merallon R16-0073C9 3t11/'l016 ""'892 3 Co mmercial Bldg fMeration R16-0007CB 3111/2016 009274 ' Commarc:la1B!dg PhaNd Partial R15-04,C5C8 3116/2016 01"4310 Permit •Commercial Bldg MeratoOn R15-0138CB "'1912016 079165 7 Commercial Bldg Alteration R16-0077C8 4120/2018 061056 8 Commerda1Bldg �rat:on R16-0119CB <l22/2018 017167 9 Corrmereial Bldg Alteration R16-0072CB "4/2e/2016 01-4310 10 Commarcial Bldg Addition R16-0068CB 41261'2016 014310 11 Commercial Bldg Phaaed Pastlal R16-0202CB 6ll!/2018 01Bm Pllm,it 12 Commercial Bldg Alt eration R16-0201CB 6l16l201!S 07877:5 13 Commen:i1l Bk;lg Alteration R16-0281CB 8/26/2016 081707 2016 Buiidlfll Pffmlts (Entl� Vear) COMPLfTtD BU{LDtNG l'fRMJTS (Completed prior to 12/31/2016) (Wit hin OMC Boundary, do� not Include Mayo Projects ot Qt y/County Profe<tsl .Addreu lnfD Permit Work.Description Valuation 421 SW 1 AVE, ROCHESTER, MN $40,000 Alterations 1or new oonfarence room 66902 (Premier Bank) 300 SE 3AVE, UNJTI 205, $6.500 Ahratlons for existing office &paCIII ROCHESTER, MN 55904 (Robert Ftemtng offiou • ll'OmfrllO()d Square Bldg) 512 SW 3 ST, ROCHESTER, MN $55,000 Alterations to existing kitchen (First 56902 PreabyterlanChtm:h) 313 S BROAOWAY AVE, S201,528 Partlal ptrase\Mlileboxforl'lterlor ROCHESTER, MN 55904 1takYnlya and MEP, no tenantflnishes (GKH2 Blsg -Pa1na) 318 SW 1 AVE, ROCHESTER, MN $36,414 Altotations to c«istn.ict 2 apaON with 56902 .....Us (318 Commons -UMR. 2) 222 SW 6 AVE, ROCHESTER, MN $250,000 Altitration1 to existing fellow.hip hall 65002 (Trinity Lutheran Church) 218 SW 1 AVE, ROCHESTER, MN $1,000 Extariorauppo,tb•-f)ipe1lltchen '6902 hOOd and duct (CNy C.MJ 313 S BROADYt'AY AVE, $102,134 Seeond floor tenantflnlah forfacillty ROCHESTER, UN 55904 off'LC8S(U of M -Payna Bldg) 313 S BROADWAY AVE., $212,097 !n•IIIIMIOn ofa lkywayfrom 313 South ROCHESTER, MN 5590"4 Btotidway to 3181 Ave SIN Bul�lng (0KH2 Bldg -Paino) "'21 SW 1 AVE. ROCHESTER, MN $5,000 mwior demo:ibon • All:aratiooa to exi&ti� 56902 office 1pace (Dunham Engineertng) "'21 SW 1 AVE 201, $51,000 Alleratlons to existing omee space ROCHESTER, MN 55902 (O\.lnham Engineering) 20 SW 2 AVE 172, ROCHESTER, $25,000 Altiarat1on11or an eya care offioe space MN 55902 (Hut:,,er Eye car. -Kahler Grand Hotel) UcPrcr ALVIN E BENIKE. INC LeviE Kaiser 2960 Wt,fy,y14 Rf'll".HESTER MN 55901 R FLEMING CONSTRUCTION INC ROBERT FLEMING 2707 OAK VIEW LN NE ROCHESTER MN 55908 ROK Enterprises, LLC Ron Krelnbr1ng 3833 Oemet Ridge Or NE Rochntitr MN 55908 CONSTRUCOON COLLABORATIVE Grant Mfchaletz 320 S BROADWAY ROCHESTER MN 558CM STARR CONSTRUCTION INC. OBA CONSTRUCTION COUABORATIVE Je.rryRutgllfl 320 S BROADWAY ROCHESTER MN � ALVIN E BENIKE, INC Mary E Klsilewski 2960 WHwy1"4 ROCHESTER. MN 65801 SUPERIOR MECHANICAL, INC. --- 124460Ave� Sui'9C ROChHter, MN 55901 CONSlRUCTION COLLABORATIVE "'-'1- 320 S BROADWAY ROCHESTER MN 55904 CONSTRUCTION COLLABORATIVE Gran!Mlchalatz 320 S BROADWAY ROCHESTER MN 55804 RELIABLE CONTRACTORS, INC GARY NORDINE 685110 AveSW Rl'V'.Hl=STER MN 5"'........., RELIABLE CONTRACTORS, INC GARV NORDINE 8351 10 An 5'N ROCHESTER MN 66902 TLS COMPANIES Spencer Holman 1951 Kerry Dr NE Rochuter MN 55906 """" Current Permit Current Permit Status Status PREMIER BANK ROCHESTER Finaled 3fl5/2016 "421 i AVE SW 1100 ........ HESTER MN -.11t..an2 RobertAeming Flnaled 4lll2016 2707 Oakview Ln NE ROCHESTER, MN 55906 FIRST PRESBYTERIAN CH Flnaled 812"412016 512 3STSW ROCHESTER, MN 65902 GKH2 HOLDINGS LLC Cloood 1Dl17/2018 320 BROADWAY S ROCHESTER, MN 55QOo4 GH HOLDINGS LLC F1naled 8/22/2016 320 SOUTH BROADWAY ROCHESTER, MN 559CM TRINITY EVANGa!CAL LUTHERN CofO lnued 8J30/2016 CHURCH 222 8AVESW ROCHESTER MN 55002 Crnt:veCulaine Flnaled 5/200016 212 1AVE SW ROCHESTER, MN 55802 GKH2 HOLDINGS LLC CofO lsaued 10/191'l016 320 BROADWAY S ROCHESTER, MN 55904 GKH2 HOLDINGS LLC Fin«led 10/17/2016 320 BROADWAY S ROCHESTER, MN 56004 JoyRchkohl Clooed 7'14/'2016 183 SISW ROCHESTER, MN 55902 JayRohkohl CofOlssued 7N5/2016 18 3 S!SW ROCHESTER. MN 55902 KAH 202ND AVENUE LLC Cot'O b$oed 10l'l4/'l016 20 2AVESW ROCHESTER, MN 65902 11 20 1"4 Commercial Bldg R16-02 ... 2CB 9J12/2018 080419 15 Commen::ltfBldg All:llnltioo R16-0297CB 16 Re111denU1I Bldg Alterution R16-1138RB 7f25J2018 005859 Z016BulldlngPe rmiti{En tireYear) COMfJlfTEQ BUILDING PERMITS (Completed prior to U/31/2016J ---··519 SW 1 AVE, ROCHESTER, MN $70,000 Att•rations from meeting roam lo retail 55902 1p1ce (Peoples COOP• Metrv Mar1Uttplac.) 400S BROADWAY A�. $275,IXlO A!lerationsfor!rntle11altenant1paoe: ROCHESTER, MN 56902 (Winona Slate Univenity • Rlvenlioe Building) 400 � 5 AVE, ROCHESTER, MN $200 Alteratlon1 -Egreu window 55901 reptacem11nt1, main floor 36" x 42" c::&Nment linala unit /Rental\ $1,330,173 WIESER BROTHERS GENERAL METROPOLITAN MA.RKET PLACE LLC Fina/eel CONTRACTOR, INC. _..20 5 AVE S Todd Hue SUITEA 200 lWILITE ST LACROSSE, 54601 LA CRESCENT, WI 55947 ALVINE BENIKE, INC Tr1Yi1EI.Jlngti N60 WHwy1_.. R"'"..,ESTER MN "'£nn1 OWNER Winona Sta:e Unlversily 86930AveSE ROCHESTER, MN $5904 PROW, THOMAS (TRUSTEE) 403 6AVENW ROCHESTER MN 66901 CofOluued Finalecl 11/15/2018 12/23l2016 712.7/2016 12 21 Attachment 2 22 MAYO CLINIC � March 23, 2017 Shawntera Hardy Commissioner Minnesota Department of Employment and Economic Development I st National Bank Building 332 Minnesota Street, Suite E-200 Saint Paul, MN, 55101-1351 Dear Commissioner Hardy: 200 First Street SW Rochester, Minnesota 55lJ05 507-28-4-2511 mayoclinic.org Attached with this letter is Mayo Clinic's certification of qualified expenditures of the medical business entity for the Destination Medical Center (DMC) initiative for the period starting January 1, 2016 and ending December 31, 2016. The amount of qualified investment is approximately$ I 07.2 million. Overall, Mayo Clinic expended more than $240.0 million on capital projects and equipment in Rochester in 2016. Major projects included: Saint Marys East Bed Tower Expansion and Modernization, Precision Medicine and Saint Marys Radiology Consolidation. Again, Mayo Clinic is taking a conservative approach this year when counting eligible investments and expenditures for purposes of meeting the DMC investment goals. 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 premier destination medical center. Thank you. �� Jeffrey W. Bolton Vice President, Administration Mayo Clinic cc: Kevin McKinnon, Deputy Commissioner Economic Development, Minnesota Department of Employment and Economic Development 23 Permitted Expenditures from July 1, 2013 to December 31, 2016 Approval Date 02/18/11 11/09/12 11/09/12 07/03/13 07/10/13 07/10/13 07/10/13 07/11/13 08/01/13 08/01/13 08/14/13 08/29/13 09/25/13 11/06/13 12/11/13 02/05/14 02/21/14 02/26/14 02/26/14 03/19/14 04/23/14 202014 04/23/14 04/30/14 04/30/14 06/04/14 06/18/14 07/02/14 07/23/14 08/14/14 08/20/14 03/04/15 03/18/15 11/13/14 04/29/15 04/29/15 05/13/15 05/13/15 05/13/15 05/13/15 07/22/15 05/14/15 02/25/15 7/23/2014 3rd qtr 2014 8/20/2014 3rd qtr 2014 12/11/2014 08/14/14 08/14/14 08/14/14 10/9/2014 08/14/14 12/12/2013 11/13/14 05/08/14 1/9/2015 8/21/2014 4/28/2015 5/30/2014 5/8/2014 2/4/2014 8/1/2013 10/15/2014 8/14/2014 12/11/14 8/14/2014 2/17/2016 5/25/2016 6/29/2016 8/31/2016 3/31/2016 6/30/2016 7/8/2016 4/27/2016 6/8/2016 9/14/2016 Project/Req Number 7R100580 7R110910 7R121480 7R121370 7R130470 7R100320 7R121490 7R120570 7R130980/7R130981 7R130990/7R130991 7R130650 7R130810 7R130180 7R130820 7R110200 7R120870 7R121420 7R121080 7R130690 7R131440 7R131300 R2007523 / 7R131300 7R131420 7R131270 7R120690 7R140130 7R140540 7R131400 7R130760 CPC2010723 /7R130820 7R140480 7R140790 7R140780 CPC2010473/7R140780 7R150070 CPC2015146/7R150070 7R150080 CPC2015438/7R150080 7R150090 CPC2015436/7R 150090 7R130230 7R140390 7R140970 7R131280 CPC2007008/7R 131280 7R140140 CPC2010196/7R140140 7R140770 CPC2010723/lR 140770 CPC2010184/7R140770 CPC2010189/7R140770 7R140160 CPC2010068/7R140160 7R121290 CPC2010188/7R121290 CPC2008778/7R120690 7R140090 7R140220 7R140700 7R140170 CPC2008468/7R140170 7R130050 CPC2002220/7R130050 7R140150 CPC2010082/7R140150 CPC2007616/7R 140130 7R151530 7R151390 7R150870 7R160520 7R151490 7R150740 7R151570 7R150760 7R160650 7R160340 Project/Equipment Name Mary Brigh East Expansion Dermatology Remodel Sports Medicine Center 2915 Warehouse Infrastructure Core 200 SMH Operating Room Renovation Anatomic Pathology Office Remodel Psychiatry and Psychology Master Plan. Phase 1A -Generose Main Development Remodel Bed T ewer Modernization MB east Domtilla 3 Modernization Remodeling laboratory space on Guggenheim 5. Saint Marys Hospital Chiller Addition Institute Hills Chiller Replacement Radiation Oncology Room "E" Linear Accelerator Replacement DLMP Phlebotomy Remodel Mary Brigh Electrical Upgrades (Phase 3) SDSC Expansion Construction Only Creation of the consolidated freezer and BAP facility at the 2915 Warehouse Remodeling of multiple laboratories on Guggenheim 8 Four Operating Rooms Off Core 700 Remodeling within the Metabolomics Core on Alfred 5 Thermo TSO Triple Quadrapole MS (assets 147506 & 145344) Remodeling within Opus 1 to accommodate space for a new CT machine. Employee and Community Health Southeast Clinic Cardiac Catheterization Procedure Room 103 Remodel -Saint Marys, Mary Brigh 4 Gonda 5, 5th PET/CT Installation & Uptake Executive, Development and International Program Expansion -Mayo East 5 OOM 3/4 Infrastructure Revisions for Remodeling Clinical Genome Sequencing, Lab Expansion Varian Medical Systems (asset 145374) CMCT and Prev. Med. Relocation Gonda 18 to Mayo East 17 Cancer Center Station Eisenberg 4-3 CT Simulator I Replacement Chariton S-259, S-261 CT Scanner -Sy, (Asset 162815) Charlton 2 Incremental 3T Body Scanner 3T Siemens Skyra MRI (assest 166875, 167065-167082) SMC, Mary Brigh Main NH, MR-MGR 1.5T Replacement Scanner GE; 1.5T Optima MR450W (assest 165084, 165346-165359) SMC, Mary Bligh Main NH, MR-MGR 1.5T Replacement Scanner DISCOVERY MRI Mary Brigh (assets 169437,171643, 171651, 171661-171672 ) Renovation Mary Brigh Main, PACU -Phase 4 SMH Mary Brigh East Corridor Relocation Or. Lee Diamond Reactor Lab Remodel on Med Sci SL MR-RO-CN-1-MR/PET installation GE; DISCOVERY MR750 PET (Assets 149876, ,150145-150157, 150668-150670) CT Scanner Replacements (3L, 32 & 4J) -somatom -CH 2 Somatom Force CT (Asset 157628) Linear Ace Replace Rm "C" VARATHON MEDICAL; TRUE BEAM (Asset 162800) SIEMENS; CT EDGE (Asset 163463) SIEMENS; SOMATOM DEFINITION (Asset 164325) Incremental MRI Body Scanner SIEMENS; SKYRA 3TMRI (Asset 157191, 157322-157339) G03 Build 2 CT Bays SIEMENS; SOMATOM FORCE CT (Asset 149843) PHILIPS; XPER FD20 (Assets 147302, 147339, 147392) Neurology Renovation, Mayo 8 Mayo 8 -Lobby Remodel Vascular OR Core 801 SMH Rad Vascular Imaging Ste 90 SIEMENS MEDICAL; ARTIS ZEE (Asset 146871,146872) CT MBM Incremental lnterventional CT SIEMENS; DEFINITION EDGE CT (Asset 148622, 148623) CH N Neuro Scanner CN l-119C SIEMENS; PRISMA 3T MRI and Accessories (Asset 157677, 157935-157946) USPS Building Purchase (Asset 156757, 156758) Land for Ronald McDonald House (Asset 147588, 147589) GE; DISCOVERY 710 PET Scanner (Asset 148389) Fixed Wing Building Hematopathology Consolidation, Hilton Building 7th Floor Vacate Ei 7-1/7-2 Dermatology Photolherapy Phototherapy Relocation Relocation of Respiratory Care Unit Linen Service Depot-3939 Building Media On Demand Replacement Project Temporal Bone Lab remodel (original $600K) Dr. Misra Laboratory, Gugg 6 Lab Remodel Gugg 17 and 18 Space assignment for Dr. Bums and Dr. Scarisbrick surgery -Guggenheim 6 Total Expeditures reported for 2016 5,455.79 23,246,729.42 1,184,304.29 1,517,071.81 11,512.22 118,429.78 244,255.29 4,509.00 (45.48) 84,726.60 532,186.23 6,258.38 730,551.93 1,637,261.00 203,886.23 1,130,292.00 523,684.25 1,513,704.55 3,670,059.65 5,177,804.87 7,021.36 21,262.34 179,211.37 2,970.00 1,095.00 1,291,836.43 526,465.74 355,373.77 17,509.31 (28,365.98) 533,262.51 182,846.09 400,071.64 47,364.42 1,636,649.12 425,929.66 13,936.90 177,303.69 28,413.05 39,068.41 Total Spent as of December 31st 2016 2,015,230.89 9,123,648.24 5,666,939.49 693,219.52 1,411,411.46 476,041.94 1,213,985.91 2,679,274.32 38,086,427.33 7,751,953.95 265,065.75 4,482,004.12 441,903.16 188,793.94 1,615,648.60 2,002,781.62 21,175,162.03 4,006,693.46 774,090.58 3,082,756.73 616,212.48 596,292.00 480,162.90 4,326,200.60 412,584.91 301,874.69 1,389,522.23 2,044,173.65 296,600.82 3,334,879.00 358,383.16 891,708.54 191,170.81 687,812.80 807,129.85 1,637,261.00 444,248.23 1,130,292.00 558,862.68 1,513,704.55 3,914,875.81 5,428,497.83 226,408.57 781,558.09 3,698,538.02 561,057.62 1,831,372.00 185,937.00 2,895,908.00 856,459.02 862,578.20 603,049.87 1,859,239.00 656,293.35 1,750,000.00 1,649,213.30 5,056,333.46 1,024,865.07 1,016,450.36 144,461.29 985,408.00 1,268,114.01 1,315,697.00 561,796.54 2,241,875.00 2,185,01725 1,000,203 16 2,103,046.58 533,262.51 182,846.09 400,071.64 47,364.42 1,636,649.12 425,929.66 13,936.90 177,303.69 28,413.05 39,068.41 24 Permitted Expenditures from July 1, 2013 to December 31, 2016 Total Expedltures Total Spent as reported for of December Approval Date Project/Req Number Project/Equipment Name 2016 31st 2016 9/28/2016 7R151450 Guggenheim 13 Space Remodel 30,325.06 30,325.06 6/30/2016 7R140810 Chartton Desk R Lobby Remodel 128,690.67 128,690.67 1111/2015 7R151060, 7R15106E Jacobson Building Operating Rooms 983,662.71 983,662.71 2/17/2016 7R150100 Chartton 1 PET/CT (DRX-1 Replacement) E-3006 16,670.07 16,670.07 May 2016 7R150010 Gastroenterology & Hepatology Renovation 535,775.84 535,775.84 Aug 2016 7R160670 IT MRI Scanner 45,420.51 45,420.51 2/112014 7R140100 SMH Campus Radiology Consolidation 14,855,292.49 14,855,292.49 1111/2015 7R150830 Mary Brigh East Tower Additional Floors 13,047,032.20 13,047,032.20 7R150670 Eisenberg 7 -1 and 7 -2 722,930.77 722,930.77 121112015 7R150970 Pre Post Expansion on Gonda 2 Gonda 2-467 266,028.69 266,028.69 1111912015 7R131510 Franklin Healing Station Chiller #4 Replacement 327,251.66 327,251.66 1114/2015 7R141050 Mary Brigh 4, Room 106 Heart Rhythm Services Remodeling 475,304.78 475,304.78 51512016 CPC2023942/7R141050 Siemens -Fluoroscopy 106 (Asset 172294) 1,508,299.00 1,508,299.00 111412015 7R141060 Mary Brigh 4, Room 111 Heart Rhythm for Equipment Replacement 52,249.31 52,249.31 11/412015 7R150850 Chartton North MR-MCR NU 3T Replacement Scanner 346,848.81 346,848.81 CPC2019384/5/7R150850 MAGNETOM Prisma 3T (asset 173601) 2,184,842.00 2,184,842.00 1114/2015 7R150840 Chartton North MR-MCR NT 1.5 Replacement Scanner 584,533.06 584,533.06 CPC2019387/7R 150840 SIEMENS; 1.5T OPEN 70CM (assets 169436,171642,171650,171652-171660) 1,188,732.00 1,188,732.00 511/2015 7R141150 Research Biplane Angiography System Replacement 78,970.28 78,970.28 51112015 R2017007/7R141150 SIEMENS; ARTIS ZEE BIPLANE (asset 165045-165046) 1,158,442.00 1,158,442.00 41 st Street Professional Complex 9,831,862.38 9,831,862.38 May-16 7R160100, 7R160101, 7R160102, 7R1f Precision Medicine Initiative 1,636,857.55 1,636,857.55 2016 R2025131/7R160100 Motoman (PO 20026936) 2,516,220.00 2,516,220.00 2016 R2025134/7R160100 Autogen (Assets 175437-175447) 1,992,857.97 1,992,857.97 2016 R2025138/7R160100 Hamilton Star (Assets 171685, 172326) 440,763.20 440,763.20 2016 R2025143/7R160100 Hamilton Bias Freezer 2,503,726.93 2,503,726.93 2016 R2025249/7R160100 PerkinElmer Spectrophotometer 39,920.00 39,920.00 3016 R2026730/7R160100 Hamilton Robotic Upgrades 45,951.00 45,951.00 4016 R2027700/7R160100 Hamilton Tube Handler -REO# 2027700 34,358.20 34,358.20 3016 R2026141/7R160100 Verso M2 -REO# R2026141 340,609.88 340,609.88 1111/2015 7R150570, 7R15057A-7R15057D Mary Brigh East Operating Rooms 621,741.12 621,741.12 12/112015 7R151460 Gonda 14 Radiographic Room DR Conversion E15-3011 RAD-MCR-G014-R 15,040.23 15,040.23 12/1/2015 7R151470 Gonda 14-158 Duo DR Replacement, E15-3014 RAD-MCR-0014-158 153,017.27 153,017.27 12/112015 7R150980 West Pre/Post Remodel, Mary Brigh Main 12,363.15 12,363.15 811912015 7R150650 Radiology -Chartton 1, VG6 Replacement E15-3003 138,704.91 138,704.91 8/1912015 CPC2015772/7R 150650 GE; DISCOVERY 670 PRO 948,408.45 948,408.45 Z311o130.111fQB 25 Attachment 3 26 Certification of Expenditures Destination Medical Center ForCa�ndarYear2016 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 2016, 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 for 2016 by Medical Business Entity 1 Total Expenditure Reported for 2016 for individuals and other private entities 1·2 TOTAL Expenditures for This Year Cumulative Expenditures Cumulative Previous Expenditures Previous Qualified Expenditures (Cumulative Previous Expenditures less $200,000,000 Required Initial Investment) TOTAL Expenditures This Year (from above) Cumulative Qualified Expenditures as of 12/31/16 State Aid Qualified for this Year (local government match also required) General State Infrastructure Aid Qualified for (Cumulative Qualified Expenditures less $200,000,000 Required Initial Investment multiplied by .0275) State Transit Aid Qualified for (Cumulative Qualified Expenditures less $200,000,000 Required Initial Investment multiplied by .0075) $107,211,567 $38,089,951 $145,301,518 $152,407,032 $(47,592,968) $145,301,518 $297,708,550 $2,686,985 $732,814 By providing my signature below, I certify that the inf ormation 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 krcU �/:>.?b£17------1"7 Date �r;/l Destination Medical Center Corporation Date 1 Expenditures need to be after June 30, 2013. 2 Private expenditures for the period of July 1, 2013 -December 31, 2016, 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 calendar year 2017. 8737 45. DOCX 27 ••11 ALL-AMERICA CITY Mayor Ardell F. Brede 201 4th Street SE-Room 281 Rochester, MN 55904-3782 mm Phone: (507) 328-2700 Fax: (507) 328-2727 FIRST CLASS CITY • FIRST CLASS SERVICE � 1 March 28, 2017 Shawnterra Hardy Commissioner Minnesota Department of Employment and Economic Development Economic Development Division i st National Bank Building 332 Minnesota Street Suite E200 St Paul, MN 55101-1351 RE: City of Rochester DMC Certificate of Contributions for January 1, 2016 through December 31, 2016 Dear Commissioner Hardy: The City of Rochester is hereby certifying local contributions of $2,960,428.54 for calendar year 2016 towards the local matching contributions for the Destination Medical Center development. This amount is in addition to the City's previous certification of $9,846,771.68 for the period from June 30, 2013 through December 31, 2015. This brings the total amount for the period from June 30, 2013, to December 31, 2016, to $12,807,199.22. This certification is pursuant to the executed agreement between DEED and the City of Rochester. The certification is made based on unaudited numbers. Pursuant to that agreement, the City may revise this certification based on adjustments made prior to June 1 of this year. The City looks forward to working with your staff to review this information and to provide any explanations or documentation that they should require. The City sincerely appreciates the assistance that has been and continues to be provided to us from you and your staff as we undertake this important DMC Development for Minnesota. Sincerely, Ardell F. Brede, Mayor City of Rochester' 1'0 [·:··. 'n.n 1c: Gary Neumann Brent Svenby Kathleen Lamb 28 Certification of Contributions City of Rochester For Calendar Year 2016 Due to Commissioner of Employment and Economic Development (DEED) by April 1 The City of Rochester hereby submits to the Department of Employment and Economic Development (DEED) the following report for Contributions that relate to the Destination Medical Center (DMC) Development for the calendar year 2016, as required by the City of Rochester Commissioner of Employment and Economic Development State Infrastructure Aid Agreement. The city may revise this certification based on audit adjustments prior to June 1. GENERAL STATE AID General Aid Contributions Reported this Year TOTAL Contributions Reported This Year by the City of Rochester1 $2,960,42s.oo! 1 General State Aid Qualified for this Year (Medical Entity/DMCC match also required) General State Infrastructure Aid Qualified for (Annual Exp. multiplied by $2.55) $7,549,091.00! 2 Cumulative City General Aid Contributions Cumulative Previous Contributions Contributions This Year Cumulative Contributions as of 12/31/16 Cumulative State Aid Qualified for as of 12/31/16 State GSIA expended this year TRANSIT AID Transit Aid Contributions Reported this Year From Box 1 Add Box 3 and Box 4 $9,846,771.00 3 $2,960,428.00 4 $12,807,199.00 s cumulative contributions multiplied by 2.ss! $32,658,357.001 6 ._ _____ __.a! 1 Transit Aid Contributions Reported This Year by the City of Rochester1'2 ._ _____ __.al s Transit State Aid Qualified for this Year (Medical Entity/DMCC match also required) State Transit Aid Aid Qualified for Cumulative City Transit Aid Contributions Cumulative Previous Contributions Contributions This Year Cumulative Contributions as of 12/31/ _ Cumulative State Aid Qualified for as of 12/31/ _ State Transit Aid expended this year includes 40% contribtuions. 60% State ... I ________ a_,! 9 I 011101 FromBox8,__ ___ _ Add Box 10 and Box 11 0 12 includes 40% contributions/60% State._! ________ �0113 ��0114 By providing my signature below, I am hereby certifying the information stated herein is accurate, true and complies with the provisions of Statute 469.47 of the State of Minnesota and the approved methodology as outlined in the City of Rochester Commissioner of Employment and Economic Development State Infrastructure Aid Agreement. Date J/?-8/t? Date 1 Funds expended need to be after June 30, 2013 2 Tranist Aid match may come from the City or Olmsted County 29 DR A F T EXHIBIT B DEED Certifications Dated June 27, 2017 30 June 27, 2017 Tina Smith, Chair Destination Medical Center Corporation 4720 West Lake Harriet Parkway Minneapolis, MN 55 410 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 2016 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 $107,211,567 in Mayo Clinic expenditures and $38,089,951 in other expenditures. The Mayo Clinic provided DEED with information on all invoices and payments 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 96 of your listed .expenditures totaling more than $24.3 million. We selected one expenditure from each of the 72 projects listed. All invoices for the selected expenditures were on file and payments were made in a timely fashion. DEED staff also confirmed that 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 32 completed projects for $6,880,155 in expenditures. DEED randomly selected 16 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. The city also approved $31,209,796 in expenditures on four projects that are partially completed. DMCC contracted with Clifton Larson Allen (CLA) to complete a review on its Certification to insure it is correct. CLA issued an opinion that the amount of the DMCC certification process was correct. Economic Development Division 1st National Bank Building• 332 Minnesota Street• E200 • Saint Paul, MN 55101-1351 651-259-7432 PHONE • 800-657-3858 TOLL FREE• 651-296-5287 Fax• www.mn.gov/deed AN EQUAL OPPORTUNITY EMPLOYER AND SERVICE PROVIDER EXHIBIT B 31 As required by law, I have determined that the amount of 2016 Destination Medical Center expenditures is $145,301,518 as you certified. DMC cumulative expenditures are now $297,708,550. The $200 million cumulative expenditure threshold has been met and Qualified Expenditures have been determined to be $97,708,550. Based on this figure and adequate general aid contributions from the city, I have determined the City of Rochester has qualified for $2,686,985.13 of General State Infrastructure Aid in 2016. As per state statute, this payment will be made prior to September 1. Thank you again for your efforts on this groundbreaking economic development effort. C: ( Patricia Simmons, Chair of Economic Development Agency Board of Directors Lisa Clarke, Economic Development Agency Executive Director Gary Neumann, City of Rochester 32 June 27, 2017 Ardell F. Brede, Mayor City of Rochester 201 4th Street SE -Room 281 Rochester, MN 55904-3782 Dear Mayor Brede: Thank you for submitting the 2016 Certification of Contributions for Destination MedicalCenter (DMC). We are excited to assist with this initiative to make the Mayo Clinic, Rochester, and Minnesota a premier medical destination. Your revised 2016 Certification listed $3,586,223 in city contributions between July 1, 2013 and December 31, 2016. You provided a detailed listing of 946 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 29 expenses for review. We reviewed invoices, payments and city payroll files for accuracy and eligii:iility. 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. The amount of your contributions qualifies you for $34,143,763.05 million of general aid, however expenditures from Mayo Clinic and others were $297,708,550. These expenditures reduced the amount of general aid to the city to $2,686,985.13. Your excess contributions will be credited towards future years. We will be providing payment of $2,686,985.13 to you prior to September 1 as mandated by statute. Thank you again for your efforts on this groundbreaking economic development effort. rds,;J hw�y ,� mm1ss1oner / 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• E200 • Saint Paul, MN 55101-1351 651-259-7432 PHONE• 800-657-3858 TOLL FREE• 651-296-5287 Fax• www.mn.gov/deed AN EQUAL OPPORTUNITY EMPLOYER AND SERVICE PROVIDER 33 34 DESTINATION MEDICAL CENTER CORPORATION EXECUTIVE COMMITTEE RESOLUTION NO. EC-4-2018 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, 2018, and attached here as Exhibit A. RESOLUTION NOW, THEREFORE, BE IT RESOLVED, by the Executive Committee of the Destination Medical Center Corporation 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. 1070649.DOCX 35 36 TO: DMC Executive Board Members Kathleen Lamb, Attorney FR: Dale Martinson, Assistant Treasurer Date: January 29, 2018 RE: 2017 Budget Encumbrance Request I have reviewed the request by the DMC EDA to carry forward budget authorization from the 2017 budget to 2018. This request is to complete contracts that were in place in 2017 but not yet completed as planned by the end of 2017. The amount requested to carry over totals $111,869. I am in agreement with this request. 37 38 MEMO To: Jim Bier, DMCC Treasurer From Dale Martinson, DMCC Assistant Treasurer Date: 1/25/2018 RE: Request for 2017 Budget Encumbrance The DMC EDA, from time to time, uses consultants to complete the work designated in the DMC plan. This work varies in scope and complexity and due to the detailed nature of some of this work it may take several months to complete once we have a signed contract. Two projects were planned, budgeted, and scheduled as part of the 2017 work plan. They were to be paid out of the Master Application for Payment (MAP) process. They are the Schematic Design for the public space known as Discovery Walk and the initial survey and geo-spatial scanning work for the future design documents for the Heart of City public realm. Both projects were under contract and the work underway in 2017 but neither were entirely completed. RSP Architects is the contractor for the Discovery Walk design project. As of 12/31/2017 its invoices for completed work totaled $64,374.91 against a total contract for $160,000, leaving a balance of $95,625.09. Kimley-Horn is the contractor for the survey and geo-spatial scanning project. As of 12/31/2017 its invoices totaled $61,006.60 against a contract of $77,250.00, leaving a balance of $16,243.40. Work on both of these 2017 projects continue and will be complete in the first quarter of 2018. The combined outstanding balance is $111,868.49 (see table below). The DMC EDA, with agreement from the City, is requesting the DMCC Board allow the balance due on these projects of $111,868.49 to be carried forward to the 2018 budget as this represents funding scheduled and contracted for in 2017 but not yet completed. 39 Original 2017 Budget Actual 2017 Budget Expenditures Through December 2017 2017 Budget Surplus as of 12/31/2017 Projects Approved and Under Contract in 2017 not completed Master Application for Payment (MAP)1,618,663.16$ Tranche Advance Request (TAR)677,181.97$ Total 2,619,170.00$ 2,295,845.13$ 323,324.87$ 111,868.49$ REQUEST 2018 Approved Budget 2,496,406.00$ Encumbrance of Contracts Not Yet Complete 111,868.49$ Ammended 2018 Budget w/ Carryforward 2,608,274.49$ 40