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3/22/2018 DMCC Board of Directors Meeting - Agenda and Meeting Packet
DESTIN ATION MEDICAL CENTER CORPOR ATION (DMCC) BOARD OF DIRECTORS MEETING 9:30 A.M. THURSDAY, MARCH 22, 2018 MAYO CIVIC CENTER - ROCHESTER DESTINATION MEDICAL CENTER CORPORATION (DMCC) BOARD MEETING Thursday, March 22, 2018 9:30 A.M. AGENDA Page I. Call to Order II. Roll Call III. Approval of Agenda…………………………………………………………………………………………………………………………………1 IV. Approval of Minutes: November 2, 2017……………………………………………………………………………………………….3 V. Public Comment Period VI. Election of Officers A. Chair B. Vice Chair C. Secretary D. Treasurer VII. Chair’s Report A. Executive Committee Report 1. February 15 Report to Legislature Resolution A: Ratifying February 15 Report to Legislature……………………………7 B. April 1 Report to DEED (Presenters: Doug Holtan, Mayo Clinic; Terry Spaeth, City) Resolution B: Authorizing April 1 Report to DEED Pursuant to Statute………………….39 C. Resolution C: Commending Tina Smith……………………………………………………..47 D. Resolution D: Commending Gary Neumann………………………………………………..49 VIII. Project Updates (City of Rochester, EDA) A. Status of Private Development Projects Receiving Prior Approval……………………….51 B. CIP Projects: Final Approval of Funds for Projects in 2018 CIP Budget 1. Heart of the City Resolution E: Providing Final Approval for Expenditures from 2018 CIP Budget…...57 2. Chateau Theatre Resolution F: Providing Final Approval for Expenditures from 2018 CIP Budget……65 C. Public Realm 1. Discovery Walk (Presenter: Shane Coen, Coen & Partners)………………………….95 D. Preview of Proposed Projects 1. Bloom Waterfront (Bloom)…………………………………………………………………99 1 2 2. Extended Stay Hotel (EKN/American Legion)…………………………………………..103 3. Wells Fargo Redevelopment Project……………………………………………………..107 E. Transportation Update………………………………………………………………………….111 IX. EDA Update A. DMC Initiative Metrics…………………………………………………………………………..151 B. Sustainability…………………………………………………………………………………….165 C. Marketing and Communications……………………………………………………………….167 X. DMCC 2018 Budget Year to Date Update…………………………………………………………………171 XI. Meeting Schedule: A. Next Regular Meeting: June 28, 2018 at 9:30 A.M. XII. Adjournment Please Note: Immediately following this meeting, two events are occurring at which a quorum of the DMCC Board may be present. Members of the public are welcome and encouraged to attend either or both events: 1. There will be a driverless bus on Peace Plaza for demonstration and for members of the DMCC Board and the public to ride. Peace Plaza is located on 1st Avenue SW and 1st Street SW. 2. The University of Minnesota Board of Regents will host a Downtown Development Conversation, located at the Bleu Duck Kitchen, 14 Fourth Street SW, Rochester, featuring an overview of the DMC Initiative. 1075828-5.DOCX 2 DESTINATION MEDICAL CENTER CORPORATION (DMCC) BOARD MEETING Thursday, November 2, 2017 9:30 A.M. MINUTES I.Call to Order. Chair Tina Smith called the meeting to order at 9:33 a.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 Tina Smith, Vice Chair R.T. Rybak, Council Member Mark Hickey, Jim Campbell, Commissioner Jim Bier, Susan Park Rani and Michael Dougherty. III.Approval of Agenda. Commissioner Bier moved approval of the agenda. Mr. Rybak seconded. Ayes (7), Nays (0). Motion carried. IV.Approval of Minutes: July 27, 2017. Council Member Mark Hickey moved approval of the Minutes of the meeting held on July 27, 2017. Mr. Rybak seconded. Ayes (7), Nays (0). Motion carried. V.Public Comment Period. Paula Hardin, Rochester resident, discussed affordable and accessible housing, tax-increment financing for affordable housing and the cooperative procurement of construction materials. Candace Rasmussen, Rochester resident, commented on median wages in the DMC development district and about relocation expenses in the DMC law. Nancy Adams, Rochester resident, spoke about affordable housing, and the need for many types of housing in the DMC development district. Richard Olen, resident of Shoreview, MN, spoke about elevated rail and current transportation planning. Steve Larson, Rochester resident, discussed the Communities United for Rochester Environment (“CURE”) position on affordable housing. Che Lopez, Rochester resident, a CURE organizer, also commented on affordable housing. VI.Chair’s Report. Chair Smith stated that Board member Susan Park Rani will be resigning from the DMCC, effective with this meeting. Chair Smith noted that Ms. Park Rani brought an important perspective to the Board as a businesswoman, transportation professional, and community leader. Ms. Park Rani stated that it was a privilege and an honor to work with her Board colleagues, local citizens, Mayo Clinic, the City of Rochester, and others. She also noted her appreciation for the statewide engagement of small and minority owned businesses. A. Resolution A: Commending Susan Park Rani. Commissioner Bier moved approval. Mr. Dougherty seconded. Ayes (7), Nays (0). Motion carried. Chair Smith also noted Mayor Ardell Brede’s absence due to a medical procedure, welcomed new Rochester City Administrator Steve Rymer, and informed the Board of Assistant City Administrator Gary Neumann’s expected retirement during the first quarter of 2018. Chair Smith then highlighted the 2017 achievements, and discussed the Board’s 2018 priorities. She said that the Board intends to continue to focus its attention on transportation, Heart of the City, and Discovery Square and noted that the Board will join the community in celebrating today’s groundbreaking for the first new bioscience/research building in Discovery Square. She stated that the groundbreaking represents significant progress toward creating increased collaboration, entrepreneurial opportunity, and engagement with Mayo Clinic. 3 Chair Smith highlighted the significance of surpassing the $200 million private investment threshold, especially considering the more than $700 million in private development projects in various stages of design, development, and use throughout the DMC development district. She noted that this development interest and activity, with private projects being successfully pursued without direct DMC public investment, is a signal that the DMC strategy is working. Chair Smith acknowledged that transportation has been a complex issue, and that the deliberative pace of transportation planning is the result of the Board’s intention to design a system that complements city-wide and regional transportation networks and is adaptable to new technology. These considerations, as well as cost and other implementation factors, will inform the Board’s decision-making in 2018. Chair Smith commended the EDA for preparing metrics reports for the Board. She stated that “experience” and “housing” ought to be considered as additional priorities in 2018. VII.Project Updates (City of Rochester, EDA). Steve Rymer, City Administrator, Gary Neumann and Terry Spaeth, Assistant City Administrators, Lisa Clarke, EDA Executive Director, and Patrick Seeb, EDA Economic Development and Placemaking Director, gave the report of project updates. A. Status of Projects Receiving Prior Approval. Mr. Seeb noted that 19 projects were underway. 1. Titan Hilton. The $125 million mixed-use and hotel development broke ground in December, 2016. Currently, there are more than 120 workers on site, with more than 300 daily workers expected in later stages. The construction of parking ramp #6, immediately adjacent to the Titan Hilton, is on schedule and expected to be completed in August, 2018. 2. Alatus Project. Demolition of existing site structures has begun. Financing and groundbreaking are expected in the near future. 3. Urban on First. Entitlements are complete and permitting is being finalized. 4. Mortenson at Discovery Square. Noting that the groundbreaking is today, Mr. Seeb stated that marketing and tenant recruitment efforts are in full swing. B. Public Realm. 1. Heart of the City. Mr Seeb reported that public realm design and development planning is being coordinated with the proposed or expected development activity at Chateau Theatre, the Wells Fargo building, and the former Michael’s restaurant site. Next steps include ensuring that a public realm governance and programming model exists and identifying phasing and construction timetables, financing opportunities, and funding streams. The proposed 2018 Capital Improvement Program budget includes design funding. Mr. Rybak encouraged efforts to integrate public realm planning with adjacent development and stated that the DMCC should continue to advocate for public space and programming. 2. Chateau Theatre. Mr. Seeb reported that additional funding streams for Chateau Theatre renovations are being examined, and staff are also examining potential programming and governance options. The proposed 2018 Capital Improvement Program includes Chateau Theatre-related investments. Mr. Rybak stated that it may be possible to pursue a less capital-intensive renovation that also leverages the historic nature of the building. Mr. Neumann stated that the City has begun reviewing tax credit programs as a capital source and noted that any costs above and beyond the initial cost of the theatre acquisition will come back to the Board for review. Mr. Rybak stated that an interim and permanent programming plan ought to move in parallel to any capital improvement planning and indicated that he is willing to introduce similar venue operators and programming professionals. 3. Saint Marys Place. Mr. Seeb described the current state of the design concepts in Saint Mary Place, noting that some concepts are included in the proposed 2018 CIP budget. 4. Discovery Walk. Mr. Seeb reported that design planning will coincide with the redesign of Fourth Street SW. Mr. Rybak noted the importance of this public realm work, stating that such efforts can turn a building into a place. C. Transportation Update. Beth Bartz of SRF Consulting gave a brief transportation update, and said that a more complete update will take place in early 2018. Ms. Bartz also stated that they are using complex models to assess parking, a transit system that serves multiple populations, street use, 4 the “city loop” and other issues. Ms. Bartz stated that once a recommendation is agreed upon, an implementation plan with phasing, cash flow, and funding scenarios will follow. Mr. Neumann noted that there is estimated funding for implementation planning in the proposed 2018 CIP. Mr. Rybak said that significant progress has been made and the Board has a much better grasp of transportation problems and opportunities, but stressed that Mayo Clinic should be involved in all travel demand management discussions. Mr. Rybak also noted that transportation is an opportunity to pursue a public-private partnership. VIII.EDA Report. A. DMC Initiative Metrics. Ms. Clarke stated that the EDA is involved with several community organizations evaluating ways to address affordable housing. Commissioner Bier noted that the Olmsted County HRA recently held a retreat on affordable housing. Ms. Clarke said that two dashboards exist, a high-level dashboard that reflects the progress of the DMC initiative against the five DMC goals, and a more comprehensive, community- and region- wide indicators dashboard maintained by Wilder Research. Mr. Rybak stated his appreciation for focusing on goals and stressed the importance of addressing workforce shortages. Ms. Clarke said that workforce recruitment and retention efforts could be added to the employment growth goal. Council Member Hickey expressed his appreciation for the goals and metrics dashboard specific to DMC. IX.2018 DMCC Funding Request to City. Chair Smith thanked Council Member Hickey, Mr. Dougherty, Mr. Campbell, and Commissioner Bier for leading the Board’s efforts to examine the draft budget and work plan strategy. A. DMCC Budget. Kathleen Lamb presented the DMCC budget, which was reduced by $100,000 from its 2017 budget and includes costs related to insurance, legal counsel, audit services, and meeting operations. B. EDA Budget and Workplan. Ms. Clarke noted that the public funding for the EDA budget is decreased by 4.7% compared to the 2017 budget, and that Mayo Clinic increased its funding to the EDA by 36%. Council Member Hickey acknowledged that the budget is expected to support the achievement of several goals. Chair Smith thanked Mayo Clinic for its increased contribution and noted that operating costs are low compared to capital costs. C.Capital Improvement Plan. Mr. Seeb reported that transportation and infrastructure projects are the two major categories of CIP investments for 2018-2022. The 2018 projects include 31 initiatives totaling $22 million in value. Commissioner Bier noted that state funding is only made available based on a percentage of previously invested private development. Over the twenty year DMC initiative, private funding will lead any public investment. Mr. Dougherty noted that Mayo Clinic receives no public funding and that Mayo’s operating budget contribution was integral to funding the 2018 budget. Ms. Park Rani stated that public infrastructure projects are necessary for growth and private investment. Mr. Neumann agreed and noted that with respect to sewers, the City would not be undertaking the work but for anticipated DMC development, and that some sewer infrastructure is being built to accommodate development that may not occur for several years, but that such investments are prudent and the result of good planning. Mr. Neumann stated that the City’s intention was to share the cost of several of these projects on a 50/50 basis. Mr. Neumann also said that some costs will count toward the City of Rochester’s DMC contribution. D. Working Capital Loan Extension. Commissioner Bier stated that the DMCC is requesting an increase in its working capital loan to $1,000.00, correcting the amount stated in the materials. This was accepted by the Board as a friendly amendment. Resolution B: Approving the 2018 DMCC Funding Request and Authorizing Transmittal. Commissioner Bier moved to approve Resolution B. Mr. Dougherty seconded. Ayes (6), Nays (0). Motion carried. 5 X.DMCC Insurance: League of Minnesota Cities Insurance Trust (LMCIT) Waiver. Ms. Lamb described the annual insurance policy renewal, which requires the Board to select its tort liability coverage. Ms. Lamb recommended that the Board not waive its statutory protections. Commissioner Bier moved that the DMCC elect not to waive the limit on coverage. Mr. Rybak seconded. Ayes (6), Nays (0), Motion carried. XI.DMCC 2017 Budget: Year to Date Update. Commissioner Bier reported on the year to date budget. XII.DMCC 2018 Regular Meeting Schedule. Resolution C: Approval of 2018 Regular Meeting Schedule. Mr. Rybak moved approval of Resolution C. Mr. Dougherty seconded. Ayes (6), Nays (0), Motion carried. XIII.Meeting Schedule. A.Next Regular Meeting: March 22, 2018 at 9:30 A.M. B.Next Executive Committee Meeting: February 8, 2018 at 9:30 a.m. XIV.Adjournment. Mr. Rybak moved to adjourn the meeting. Mr. Dougherty seconded. Ayes (6), Nays (0), Motion carried. 1076399-4.DOCX 6 A. DESTINATION MEDICAL CENTER CORPORATION RESOLUTION NO. __-2018 Ratifying the Approval and Transmittal of the Report to the Legislature Pursuant to Statute BACKGROUND RECITALS A. Minnesota Laws, Chapter 143, Article 10 (the “Act”) provides that by February 15 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 to 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. Pursuant to Executive Committee Resolution No. EC-4-2018, the Executive Committee of the DMCC approved and transmitted the report, which was due on February 15, 2018, and attached here as Exhibit A. RESOLUTION NOW, THEREFORE, BE IT RESOLVED, by the Destination Medical Center Corporation Board of Directors that the Board ratifies the Executive Committee action taken on February 1, 2018, and approves the report and its submission to the Minnesota Legislature as required by the Act. 1076221.DOCX 7 8 ••wt ALL-AMERICA CITY Mayor Ardell F. Brede 201 4th Street SE-Room 281 Rochester, MN 55904-3782 Phone: (507) 328-2700 Fax: (507) 328-2727 FIRST CLASS CITY • FIRST CLASS SERVICE February 6, 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 Patricia Torres Ray Local Government Committee Minnesota State Senate 2225 Minnesota Senate Building 95 University Ave W St. Paul, MN 55155 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 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 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 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 Patrick Garafalo 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 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 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 9 February 6, 2018 Page2 The Honorable Richard Cohen Finance Committee Minnesota State Senate 2301 Minnesota Senate Building 95 University Ave W St. Paul, MN 55155 The Honorable Roger Chamberlain Chair, Taxes Committee Minnesota State Senate 3225 Minnesota Senate Building 95 University Ave W St. Paul, MN 55155 The Honorable Ann Rest Taxes Committee Minnesota State Senate 2217 Minnesota Senate Building 95 University Ave W St. Paul, MN 55155 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 Re: Destination Medical Center February 15, 2018 Report 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 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 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 Shawntera Hardy Minnesota Department of Employment and Economic Development 1st National Bank Building 332 Minnesota Street, Suite E200 St. Paul, MN 55101-1351 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 includes 10 February 6, 2018 Page 3 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. I. 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. 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. 11 February 6, 2018 Page4 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. 8.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. 11.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 12 February 6, 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: 1.3rd 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 13 February 6, 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 8). 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. 14 February 6, 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 Destination Medical Center Corporation Enclosures cc: Legislative Reference Library 1070307-7.DOC �-r-:-4t.2£e Ardell F. Brede, Mayor City of Rochester 15 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 16 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 17 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 18 Attachment 1 19 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 20 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 $3,:500 10replaD11menl"""1dDW11lnbedrwm,or, 2ndand3rdf1Mt RemtM119111tllrigft111 ·-· ...... 10'1 CREEKWOOO CONSTRUCTION RYANSCHLA.TZ M91 CREEKWOOD CT SE ROCHESTER, MN 55904 WOMEN'S.SHELTER INC POB0X4S7 ROCHESTER, MN 6"03 2016 PMTllt c.Jrrent PerTnll Cutrtnt Perm\! Status Date S1•1in ISlaluaOate 12'31/2013 Flneled 6/24n014 (didnot,haw upprtor btcau.eofa '"""''""' 8 21 SL.t!Typelewrl 1 DamoJUon 2014BulldiriaPennll:s(Efftl�Vur) CQMpt.ffiD IUILDING P£RM1U fcornoll,t!d slntf! thl! ll01$ CD9[b but PCIRCte 11/JV20161 (Within OMC lklo.rlmry, ooes nO( Include Mayo Pro�cts) category L•,...I Permit Number Pennlt laue P•rtel Addreu Info Permit Wor11 0.9a"lptlon Dnl Number VH.lation Commercial R1+.00040 1111no1, 0,28+4 na SW 2 ST, ROCHESTER, MN $2,500 Demo of Ml!llua'B on 2nd '""' Bullnesa R1+-00711S 11/512014 014315 4 SW3 ST, ROCHESTER, MN $1,000 P111jKtinga!gn (Sontn Rulauran!) """ ...... loft UCP!l,lr OWNER OWNER SCHUSTER, CURTIS J 411G!IS STATE HWY 109 EASTON MN56025 Lf1171g,TNU 720 NORTIERN HILLS DR NE ROCHES11eR ........ 20111 Pe,rntl Curren! Penni! Cummt Pennft Statl!IDate 81.!!tus status Dale 5'7120141'tn1lltd 1125/2016 !/51201'Flnaltd 2/17/20111 9 22 Sub Type Lewi CelaQOl')'t..11a1 PfimllNumbllr �nnltlnlNI ·-Addresalnfo 0,19 Numb9f 2 Commen:111 Bldg fAllerltlon RU-0451C8 1n1/20t5 014315 4 � 3 ST, ROCHESTER. MN .,.., 3 Comm«rJAIBldg A!lerlflon R14-0291CB 1121/2015 01711115 101 E CENTER ST, ROCHESTER, MN 55904 . Commo,ci .... A1t1natlon R15-03Z2CB 1V14J2015 0252'2 14 SW 4 ST, ROCHESTER, MN """ . Multl-Femily91dg Pl'leHd Pll'till R15-0008MFB """"" ""'" 22 N BROADWAY AVE, Permit ROCH ESTER, MN 55908 • Multl-F1111iy81dg ..,.,,.,"' R!5-0005MF B 2/1"'2015 0171189 22 N BR0Af1NAY AVE, ROCHESTER. MN S590II 1 Comm11rclelEldg N� R16-0087CB """'" .,, ... 1?3 SW 2 ST, ROCtESTER, MN ..... •Mulll-F1mlly81d9 Phil&edPartt.l R15-0053MFB 81'3/2015 0171199 II01 SW 1 AVE, ROCHESTER. MN """"" ..... • """'""""""' _, R(>-03116C8 10/'22/2015 """ 30 8E 3 ST 201. ROCHESTER. MN ..... (0 Commerd11Bldg -�""'R15-0333CB 1�15 ,., ... 210 N BROADWAY AVE. ROCHESTER, MN 55908 I( CC1mmerc!lll91c%1 f'lla'•lon R11><13i3CS 111&'2015 017'8:I 150 S BflOMN(AY AVE. ROCHE.STER. MN 55004 12 Damolftion Commercial R15-0023D 1V"2015 01Mn 411 N BROADWAY AVE. ROCHESTER, MN 56906 13 Damoalon COm"""" R15-002-40 12/41Z015 081852 420 fffi 1 AVE. R0Ct£STER, MN ..... 1-4 Oemolltlon Commerel1I R1&-0025D 12/4/2015 081052 410 NW 1 AVE, ROCHESTER. MN , .. 01 15 Sign Busi1'1811 R15-0150S 1°'20/2015 025290 711 S BROADWAY AVE. ROCHESTER liitN 55904 " ""' ........ R15-0140S 1112412015 01m, 18SW3 ST, ROOESTER. MN ..... Z0158'111dfn1Perrrits(ENTIREY£ARJ COMPUTED: IJ.111:Q!I!§ ti!Y!!TS k!l!!:!RIIS!i l!:M! 1h! UJ:15 'IR21:!il 11!11 mi!:!!: E' :wlLlliUil {Within OMC Boundary, does not loclud e �Vo Proltcts! Pmmll WonDe11criplion LlcProl' Veluellon $1211.482 Aller1t1or11 losxi1tln11rwtt1uranttolndU011 KRAUS·AMJERSON CONSTRUCTION 1 lnwery Ind bar (Grand Rounda Br.w co Puo) JOMPielltnh 411 S IRO,\DWAY ROCHESTFR MN 56804 .... -.t,11:l!lf'll!wnsforthreenewl'OQ!Monmllll """"'" lt'<lelttnd one ln th11oWiar .. ¥el Update pHl violationsHperletletlol lnve1Hg1tlon. Adding ah owt� In 18 room• end1,dstlngplumbin111!ter11Jonsfor 32 othefroom11 CanlarStreetHolel $2,000,CJU!l fte5tor9tlon11fldi:hangaofuseto exllltng ALVIN E SENIKE, INC buklng jconlay 8tlldlng) MbE8ENIK.E 2900 WHwy14 ROCHESTER MN &1801 $4,8UIJ P1rtllllphlse tnterlord11moll1'onfor-HIMEC. lNC A11111a1ion,ofexl1tln;m11ch,nicllroom, .lolRedi:11 repl11ccice!llnglnc:ommC11$jP8fkTGWe1S) 1400 7StNW Ro<:hHt« MN55901 1250,000 Allera�ona or ex!stlng m1 t111nca1 roorn, HIMEC. INC rwplec.e Olllllng n commons (Pd TO'IIJb) ""'""'" 14007SINW Romnter MN56801 11.201.17! New dental office with 3 1panmarts TLS COMPANIES (AlaealllLLC) ToddS.'191'lOfl 19'1 IWTy'OrNE $1,555,125 Plf111lph1sefootlngendrounc11uon,U.G KRAU5-ANDERS0N CONSTRUCTION ph.1'!1bfng and el.etriclltant,,-84 unll co 1p anmentvril hundllr grouncfperlclng(501 Adam K11mer on 111Apllr1m&l'ltAJ 418 S BROADWAY ROCHESTFR MN 5904 $155,IM � foroffioe 1peot (c.teonCsplta ! -Managemem.-HlltorJc tw'1 3"3J "'"'"°"'303StSE s111111eoo Rocneater MN55904 $12.500 Alteiallon1toaxlstlngspaceforn ew tenent Har�onRIKIII Conslrucllon, lne. (GS.AS1'!115) Jonn lii!1Ut.ws 1500Horizon0r. 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 lotl ""'"" 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 23 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, $25,000 Altiarat1on11or an eya care offioe space MN 55902 (Hut:,,er Eye car. -Kahler Grand Hotel) lofl UcPrcr ALVIN E BENIKE. INC LeviE Kaiser 2960 Wt,fy,y14 Rf'll".HESTER MN 55901 R FLEMING CONSTRUCTION INC ROBERT FLEMING 2707 OAK VIEW LN NE ROCHESTER MN 55908 ROK Enterprises, LLC Ron Krelnbr1ng 3833 Oemet Ridge Or NE Rochntitr MN 55908 CONSTRUCOON COLLABORATIVE Grant Mfchaletz 320 S BROADWAY ROCHESTER MN 558CM STARR CONSTRUCTION INC. OBA CONSTRUCTION COUABORATIVE Je.rryRutgllfl 320 S BROADWAY ROCHESTER MN � ALVIN E BENIKE, INC Mary E Klsilewski 2960 WHwy1"4 ROCHESTER. MN 65801 SUPERIOR MECHANICAL, INC. --- 124460Ave� Sui'9C ROChHter, MN 55901 CONSlRUCTION COLLABORATIVE "'-'1- 320 S BROADWAY ROCHESTER MN 55904 CONSTRUCTION COLLABORATIVE Gran!Mlchalatz 320 S BROADWAY ROCHESTER MN 55804 RELIABLE CONTRACTORS, INC GARY NORDINE 685110 AveSW Rl'V'.Hl=STER MN 5"'........., RELIABLE CONTRACTORS, INC GARV NORDINE 8351 10 An 5'N ROCHESTER MN 66902 TLS COMPANIES Spencer Holman 1951 Kerry Dr NE Rochuter MN 55906 """" Current Permit Current Permit Status Status PREMIER BANK ROCHESTER Finaled 3fl5/2016 "421 i AVE SW 1100 ........ HESTER MN -.11t..an2 RobertAeming Flnaled 4lll2016 2707 Oakview Ln NE ROCHESTER, MN 55906 FIRST PRESBYTERIAN CH Flnaled 812"412016 512 3STSW ROCHESTER, MN 65902 GKH2 HOLDINGS LLC Cloood 1Dl17/2018 320 BROADWAY S ROCHESTER, MN 55QOo4 GH HOLDINGS LLC F1naled 8/22/2016 320 SOUTH BROADWAY ROCHESTER, MN 559CM TRINITY EVANGa!CAL LUTHERN CofO lnued 8J30/2016 CHURCH 222 8AVESW ROCHESTER MN 55002 Crnt:veCulaine Flnaled 5/200016 212 1AVE SW ROCHESTER, MN 55802 GKH2 HOLDINGS LLC CofO lsaued 10/191'l016 320 BROADWAY S ROCHESTER, MN 55904 GKH2 HOLDINGS LLC Fin«led 10/17/2016 320 BROADWAY S ROCHESTER, MN 56004 JoyRchkohl Clooed 7'14/'2016 183 SISW ROCHESTER, MN 55902 JayRohkohl CofOlssued 7N5/2016 18 3 S!SW ROCHESTER. MN 55902 KAH 202ND AVENUE LLC Cot'O b$oed 10l'l4/'l016 20 2AVESW ROCHESTER, MN 65902 11 24 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 2of2 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 $5904 PROW, THOMAS (TRUSTEE) 403 6AVENW ROCHESTER MN 66901 CofOluued Finalecl 11/15/2018 12/23l2016 712.7/2016 12 25 Attachment 2 26 MAYO CLINIC � March 23, 2017 Shawntera Hardy Commissioner Minnesota Department of Employment and Economic Development I st National Bank Building 332 Minnesota Street, Suite E-200 Saint Paul, MN, 55101-1351 Dear Commissioner Hardy: 200 First Street SW Rochester, Minnesota 55lJ05 507-28-4-2511 mayoclinic.org Attached with this letter is Mayo Clinic's certification of qualified expenditures of the medical business entity for the Destination Medical Center (DMC) initiative for the period starting January 1, 2016 and ending December 31, 2016. The amount of qualified investment is approximately$ 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 27 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 28 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 29 Attachment 3 30 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 31 ••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 32 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 33 EXHIBIT B DEED Certifications Dated June 27, 2017 34 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 35 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 36 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 37 38 B. DESTINATION MEDICAL CENTER CORPORATION RESOLUTION NO. ____-2018 Authorizing April 1 Report to DEED Pursuant to Statute BACKGROUND RECITALS A. Minnesota Statutes, Section 469.47, provides that by April 1 of each year, the medical business entity (Mayo Clinic) must certify to the Commissioner of the Department of Employment and Economic Development (“DEED”) the amount of expenditures made by Mayo Clinic in the preceding year. For expenditures made by an individual or entity other than Mayo Clinic, the Destination Medical Center Corporation (“DMCC”) must compile the information on the expenditures and may certify the amount to DEED. The certification to DEED must be in the form prescribed by DEED and include any documentation and supporting information regarding the expenditures that DEED requires. By August 1 of each year, DEED must determine the amount of expenditures for the previous year. B. Staff from the City of Rochester and the Destination Medical Center Economic Development Agency (“EDA”) have prepared the draft report, due on April 1, 2018, attached hereto as Exhibit A. RESOLUTION NOW, THEREFORE, BE IT RESOLVED, by the Destination Medical Center Corporation Board of Directors that the Chair or Treasurer of the DMCC is authorized to execute and submit the report to the Minnesota Department of Employment and Economic Development as required by Minnesota Statutes, Section 469.47, in form similar to the form attached hereto as Exhibit A, as may be modified through further discussions with Mayo Clinic or the City of Rochester, and to take such other actions as are necessary and appropriate to effectuate the timely submission of the report to DEED. 1076222.DOCX 39 DR A F T 86,392,524.00$ 1 44,739,613.00$ 2 131,132,137.00$ 3 297,708,550.00$ 4 131,132,137.00$ 5 All Claimed Expenditures as of 12/31/2017 (Box 4 plus Box 5)428,840,687.00$ 6 Qualified Expenditures claimed in 2017 (Box 6 minus $200,000,000) 228,840,687.00$ 7 6,293,118.89$ 8 1,029,783.09$ 9 For Expenditures By the Medical Business Entity: Mayo Clinic Chief Financial Officer Date For all other Expenditures DMCC Treasurer Date 1 Expenditures need to be after June 30, 2013 Revised 040517 By providing my signature below, I am hereby certifying the information stated herein is accurate, true and complies with the provisions of Statute 467.47 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. TOTAL Expenditures This Year (from Box 3) 2 Other Private Entities' certification of expenses may be certified retroactively in 2014 after the DMC District and plan are adopted. Due to Commissioner of Employment and Economic Development (DEED) by April 1 The Medical Business Entity and the Destination Medical Center Corporation (DMCC) Board of Directors (assisted by the City of Rochester) hereby submits to the Department of Employment and Economic Development (DEED) the following report for expenditures that relate to the Destination Medical Center (DMC) Development for the calendar year 2017, and the certifications required to support the documentation under the City of Rochester Commissioner of Employment and Economic Development State Infrastructure Aid Agreement. Certification of Expenditures Destination Medical Center For Calendar Year 2017 Expenditures Reported this Year All Expenditures claimed since June 30, 2013 State Aid Qualified for this Year (local government match also required) General State Infrastructure Aid Qualified for (Box 7 multiplied by .0275) State Transit Aid Qualified for (Box 7 multiplied by .0075 and then multiplied by .6) Total Expenditures Reported This Year by Medical Business Entity1 Total Expenditures Reported This Year for other Private Entities1,2 TOTAL Expenditures This Year Previous Years Expenditures (cumulative) 40 41 42 43 44 45 46 C. DESTINATION MEDICAL CENTER CORPORATION RESOLUTION NO. ___-2018 Commending Tina Smith and Expressing Gratitude for Her Service to the Destination Medical Center Corporation BACKGROUND RECITALS Whereas, Tina Smith was appointed by Governor Mark Dayton to serve as one of the inaugural members on the newly established Destination Medical Center Corporation Board of Directors (the “Board”), and reappointed in 2017; and Whereas, at the first meeting of the Board on August 9, 2013, Ms. Smith was elected to chair the Board by unanimous vote; and Whereas, from the first meeting of the Board, Ms. Smith has been extremely engaged in the establishment of Board policies and procedures, the Articles of Incorporation and the Bylaws, with a particular focus on good governance and best practices for the Board; and Whereas, by virtue of Ms. Smith’s rich background and experiences, including her participation in the framing of the original legislation creating the Destination Medical Center, as Chief of Staff to Governor Mark Dayton, and her service to the State of Minnesota, most recently in the role of Lieutenant Governor; and her participation in so many other civic and lifetime activities, Ms. Smith has offered to the Board a valuable perspective on leadership, public service and stewardship; and Whereas, Ms. Smith has been instrumental in the deliberations and refinement of the Development Plan for the Destination Medical Center initiative, and in framing the Board’s priorities in these areas: Discovery Square, Heart of the City, and transportation initiatives; and Whereas, the Board has relied on Ms. Smith’s business acumen and policy expertise with respect to the formulation of budgets and in its discussions and expectations with respect to appropriate measurement standards; and Whereas, Ms. Smith’s commitment to the citizens of Rochester and to the State of Minnesota has been steadfast and illuminated in her service to the Board, and her stewardship of the Board’s mission and purpose has been unwavering; and Whereas, no individual has been more central to the success of this project than Tina Smith. RESOLUTION NOW, THEREFORE, BE IT RESOLVED, by the Destination Medical Center Corporation Board of Directors that it commends Tina Smith for her service to the Board, to the community, and to the State of Minnesota. 47 2 BE IT FURTHER RESOLVED, that the Board expresses its gratitude to Ms. Smith for her devotion of time and energy to the formation of the Board, for her leadership in helping to establish priorities for the Board, for her engagement on issues and willingness to share expertise, and for her resolute determination to make Rochester, Minnesota, America’s City for Health. 1076378-3.DOCX 48 D. DESTINATION MEDICAL CENTER CORPORATION RESOLUTION NO. ____-2018 Commending Gary Neumann and Expressing Gratitude and Appreciation for His Service to the Destination Medical Center Corporation BACKGROUND RECITALS WHEREAS, the Destination Medical Center Corporation (“DMCC”) was established by law in 2013 to exercise oversight, adopt plans and approve projects as part of an initiative by the State of Minnesota to make Mayo Clinic, and the City of Rochester, Minnesota (the “City”), a destination medical center; and WHEREAS, since its inception, the DMCC has worked closely with the City to accomplish the goals of the law; and WHEREAS, Gary Neumann has served as Assistant City Administrator for the City and has been an integral partner in the close cooperation between the DMCC and the City; and WHEREAS, Mr. Neumann offered a unique perspective to the DMCC, by virtue of his over 35 years of public service to the City, during which time he was involved with numerous projects which enhanced the expertise he offered to the DMCC, including sales tax issues, transportation initiatives and the Mayo Civic Center expansion project; and WHEREAS, Mr. Neumann has been instrumental in the formation and early years of the destination medical center initiative and extraordinarily helpful to the DMCC; and WHEREAS, Mr. Neumann had been unwavering in his stewardship of the City and in his commitment to the citizens of Rochester, as well as in his service to the DMCC and the destination medical center initiative. NOW, THEREFORE, BE IT RESOLVED, by the Destination Medical Center Corporation Board of Directors, that it commends Gary Neumann for his service to the City of Rochester, his work to advance the destination medical center initiative, and his cooperation with the Board. BE IT FURTHER RESOLVED, that the Board expresses its gratitude and appreciation to Mr. Neumann for his willingness to share his significant expertise and experience with the DMCC, in its goal to make Rochester, Minnesota, America’s City for Health. 1076206.DOCX 49 50 Status of Private Development Projects Receiving Prior Approval Titan Hilton Hotel (Approved as Broadway at Center Project) Alatus (Approved as Alatus 2nd Street Development) Titan/Opus (Approved as Rochester 1st Avenue Mixed-Use Project) Mortenson Phase l (Approved as Discovery Square- Phase l) 51 52 Titan Hilton Hotel To: DMCC Board of Directors From: DMC EDA Staff Date: March 15, 2018 Overview: After being one of the first two projects approved for DMC funding in spring 2015, the Titan Hilton hotel broke ground in December 2016. The 19-story structure will including retail and dining amenities and be anchored by a Hilton hotel. On January 31, 2018 a topping off ceremony took place with the community. The final structural beam was placed in the building. Currently, 130 on-site workers are on the project site and that is anticipated to increase. Next Steps: Project construction continues, with an expected hotel opening in 2019. 53 Alatus To: DMCC Board of Directors From: DMC EDA Staff Date: March 15, 2018 Overview: The Alatus 2nd Street Development includes construction of an approximately 327,965 square foot, thirteen-level commercial and residential complex. The City of Rochester property assessor has estimated that the proposed building will be worth approximately $67,230,000 upon completion. In December 2016, the DMC EDA Board of Directors acted unanimously in recommending the Alatus LLC project to the DMCC as a Public Infrastructure Project, consistent with the DMC Development Plan. It further recommended support in the amount of $10.5 million in city Tax Increment Financing. Demolition of existing buildings on the site took place in December of 2017. Financing closed in early February 2018 and construction has begun. Next Steps: A ground breaking ceremony is anticipated to take place on May 2, 2018. Project is expected to be completed in late 2019. 54 Titan/Opus To: DMCC Board of Directors From: DMC EDA Staff Date: March 15, 2018 Overview: The Rochester 1st Ave Mixed-Use Development includes construction of an approximately 238,717 square foot, six-story podium commercial and residential complex. On January 12, 2017, the DMC EDA Board of Directors acted unanimously in recommending the Titan- OPUS project to the DMCC as a Public Infrastructure Project, consistent with the DMC Development Plan. It further recommended support in the amount of $3.8 million in city Tax Increment Financing. At its January 2017 meeting, the DMCC approved the funding request upon the condition that proof of financing be provided to the DMCC board of directors. Next Steps: Titan/Opus expects to close on its financing on March 22nd and commence construction on March 26, 2018. 55 Mortenson Phase l To: DMCC Board of Directors From: DMC EDA Staff Date: March 15, 2018 Overview: The Mortenson Phase I development is a 90,000 gross square foot building with lab and office space that will cater to the life science economy. Mortenson submitted a Joint Funding Application on May 15, 2017. The DMC EDA report and recommendation for Joint Funding was brought forward and approved by both the DMC EDA Board and the DMC Corporation Board in July, 2017. The project was approved at City Council on August 7, 2017. Mortenson and DMC hosted a ground breaking event and community celebration around Discovery Square on November 2, 2017. Schematic design has been completed and construction is underway. Next Steps: Marketing and tenant recruitment will continue. 56 Heart of the City To: DMCC Board of Directors From: DMC EDA Staff Date: March 15, 2018 Proposed Action Item: Authorize the use of prior approved 2018 CIP funds in the amount of $350,000 to advance design of Heart of the City public realm, focusing on 1st Avenue and the east end of Peace Plaza. Overview: The RSP-led design team completed the Schematic Design for Heart of the City in 2017. It was received by the Community Advisory Group, DMC EDA, DMCC, and City Council. Subsequent discussion has focused on • Questions about project phasing, financing, on-going management and operations • Integration of project design with Chateau Theatre, Wells Fargo, and Titan/Harbor Bay • Determine project priorities/phasing, and construction timetable • Identify and secure funding streams and financing strategy • Develop governance, management, and operations program Based on the opportunity associated with the redevelopment of the Wells Fargo building and activation of Chateau Theatre, DMC EDA recommends focusing on two portions of the Heart of the City public realm: 1st Ave and the east end of Peace Plaza. To proceed in a timely manner, DMCC authorization for the use of CIP funds for this purpose is required. 57 58 DESTINATION MEDICAL CENTER ECONOMIC DEVELOPMENT AGENCY To: Acting Chair R.T. Rybak and members of Destination Medical Center Corporation board of directors From: Jeff Bolton, President, DMC EDA Lisa Clarke, Executive Director, DMC EDA Date: March 16, 2018 Re: Heart of the City The DMC EDA board acted unanimously in recommending the expenditure of prior approved 2018 CIP funds for improvements to Chateau Theatre to a) secure and protect the building from further deterioration, b) make modifications necessary for eventual restoration, and c) ensure code compliance so that the facility can be used for assembly purposes. This recommendation aligns with the City of Rochester’s recommendation and is consistent with the direction provided by the DMCC board at its November 2017 meeting. 959 60 E. DESTINATION MEDICAL CENTER CORPORATION RESOLUTION NO. __-2018 Providing Final Approval for the Expenditure of Funds from the 2018 CIP Budget for the Heart of the City Project BACKGROUND RECITALS A. The Development Plan was adopted by the Destination Medical Center Corporation (“DMCC”) on April 23, 2015, and contains a subdistrict known as “Heart of the City”. B. Substantial work has been done since the adoption of the Development Plan to envision and begin design of Peace Plaza and the public realm space located within the Heart of the City subdistrict, led by the staff of the City of Rochester (the “City”) and the Destination Medical Center Economic Development Agency (“EDA”) and their consultants. Program and design concepts have been presented and discussed with respect to schematic design, community workshops have been held and feedback from the public and stakeholders has been collected and received. C. In the 2018 Five Year Capital Improvements Plan, (the “2018 CIP”) approved by the DMCC on November 2, 2017, the DMCC preliminarily approved the next steps of the design of the Heart of the City public realm work in the amount of $350,000, and found that the Heart of the City and other projects itemized in the CIP were public infrastructure projects, consistent with the Development Plan. The DMCC reserved the right to grant final approval of funding of certain projects, including the Heart of the City, upon final determination of scope, costs and availability of funds. D. Staff for the City and Destination Medical Center Economic Development Agency (“EDA”) now request that the DMCC give final approval of an amount not to exceed $350,000 from the 2018 CIP budget to continue the design development, planning, phasing, integration of project design with adjacent properties, identifying and securing funds, and the development of a governance, maintenance and operation plan, with a specific focus on the areas of 1st Avenue and the east end of Peace Plaza; such request as set forth in Exhibit A, attached. RESOLUTION NOW THEREFORE, BE IT RESOLVED, by the Destination Medical Center Corporation Board of Directors that the continuing design development and associated planning and analyses and studies related to the next phase of work on the Heart of the City is a public infrastructure project and is hereby approved in an amount not to exceed $350,000. 61 2 BE IT FURTHER RESOLVED, that the Board requests the City and EDA staff for regular updates with respect to this next phase of work on the Heart of the City public realm development. 1076977-3.DOCX 62 TO: Destination Medical Center Corporation Board of Directors From: Patrick Seeb, DMC EDA Director of Economic Development and Placemaking Aaron Parrish, City of Rochester Assistant City Administrator II RE: Heart of the City Public Realm Date: March 15, 2018 Overview Heart of the City is one of the three top priorities for the DMCC board. With this in mind, DMC and City of Rochester undertook a schematic design process for the public realm of the district. 2015: 1.DMC Development Plan presents a conceptual framework for the Heart of the City, including the public space. 2.DMCC identifies Heart of the City redevelopment as one of three priorities, which also include Discovery Square and Transportation. 3.DMCC authorize the purchase of Chateau Theatre, with the intent of redeveloping it as a central feature of Heart of the City. 2016: 1.DMCC commit financial and staff resources to support schematic design of Heart of the City public space. 2.City and DMC co‐chair a Community Advisory Group to help guide the selection of a design team and provide guidance for the overall design process. 3.A design team led by RSP Architects is retain and commences work in October 2016. 2017: 1.The RSP‐led design team completed the Schematic Design for Heart of the City in 2017. It was received by the Community Advisory Group, DMC EDA, DMCC, and City Council. 2.Subsequent discussion has focused on Questions about project phasing, financing, on‐going management and operations Integration of project design with Chateau Theatre, Wells Fargo, and Titan/Harbor Bay Determine project priorities/phasing, and construction timetable Identify and secure funding streams and financing strategy Develop governance, management, and operations program Based on the opportunity associated with the redevelopment of the Wells Fargo building and activation of Chateau Theatre, DMC EDA and City of Rochester recommends focusing on two portions of the Heart of the City public realm: 1st Ave and the east end of Peace Plaza. To proceed in a timely manner, DMCC authorization for the use of CIP funds for this purpose is required. (;+,%,7$ 63 64 Chateau Theatre To: DMCC Board of Directors From: DMC EDA Staff Date: March 15, 2018 Proposed Action Item: • Authorize the use of 2018 CIP funds, not to exceed $1 million, for design costs and capital improvements to Chateau Theatre to a) secure and protect the building; b) bring it up to code so that it can be used for “assembly” purposes; and c) design eventual integration with Peace Plaza and Wells Fargo building. Additional Next Steps: • Continue active engagement with Ryan for integration of Chateau with Wells Fargo redevelopment (inclusive of major building tenants) • Develop interim use programming and management model • Engage architect on alternative design options, less capital intensive Background: 2015: 1. DMCC approved acquisition of Chateau Theatre as “public infrastructure project.” 2. City Council authorizes purchase of Chateau Theatre 3. Mayor forms Chateau Theatre Reuse Committee 2016: 1. City finalizes purchase 2. Task Force organizes its work around three milestone recommendations -Reuse -Design -Management and Governance 3. Consultant team of Miller Dunwiddie and Webb Management retained 4. Task Force conclusions: -Reuse as a multipurpose performing arts center -Redesigned within current footprint of the building and under the alleyway -$23+ million cost estimate -Management and programming by City Music Department, with ongoing operation loss 5. City Council received report and asked for the following: -Further discussion with adjacent property owners to explore opportunities -Consideration of alternative sources of funding, inclusive and in addition to DMC funds -Further study of the business plan, avoiding ongoing operating loss 65 2017: 1. City staff modified proposed operating income and expense model, still resulting in on-going operating loss 2. Ryan Companies agreed to consider incorporating Chateau facilities in the redeveloped Wells Fargo building, pending overall project plans 3. Task Force recommends inclusion of the Chateau costs in the future CIP budget, for presentation to DMCC 4. DMCC Report and Recommendation, November 2017 -Advance Chateau Theatre as a multiuse performing arts center, but consider a less capital intensive restoration model -Develop a strategy to diversify capital funding sources -Ensure a sustainable ongoing management, programming, and operations plan -Build relationships to adjacent development -Consider ideas for interim use and activation -Preliminary CIP authorization 5. Discussion at DMCC meeting and subsequent discussion with Acting DMCC Chair: -Would like to see an alternative to the plan currently on the table -Specifically, less capital intensive and alternative management/programming model 2018: Current Status: • Less Capital Intensive Option: -Miller Dunwiddie is preparing a less capital intensive redesign option, which will include potential implications on funding sources, programming uses, and operating revenues/costs. -Expect to see this report by early April • Develop sustainable management, programming, and operating model: -Under consideration, led by City Administration • Strategy to diversify capital funding sources: -Presently studying opportunity for use of Historic and New Markets Tax Credit programs and exploring options for philanthropic and sponsorship support • Relationship with adjacent development: -Active collaboration with Wells Fargo, Mayo Clinic, Ryan, and Heart of the City public realm. Ryan Companies, which is purchasing and redeveloping the Wells Fargo building has been working closely with the Chateau team, in collaboration of with their primary tenants to create a joint redevelopment plan (which includes the public space of Heart of the City) • Interim use and activation: Miller Dunwiddie has prepared an analysis of the minimum costs to make the Chateau Theatre code compliant and functional for “assembly events” such as concerts, presentations, lunches/dinners. 66 DESTINATION MEDICAL CENTER ECONOMIC DEVELOPMENT AGENCY To: Acting Chair R.T. Rybak and members of Destination Medical Center Corporation board of directors From: Jeff Bolton, President, DMC EDA Lisa Clarke, Executive Director, DMC EDA Date: March 16, 2018 Re: Chateau Theatre The DMC EDA board acted unanimously in recommending the expenditure of prior approved 2018 CIP funds to advance the design of certain portions of Heart of the City public realm. The focus of this work will be on 1st Avenue and the east end of Peace Plaza. Timing of this project coincides with the anticipated redevelopment of adjacent properties. This recommendation aligns with the City of Rochester’s recommendation and is consistent with the direction provided by the DMCC board at its November 2017 meeting. 967 68 F. DESTINATION MEDICAL CENTER CORPORATION RESOLUTION NO. __-2018 Providing Final Approval for the Expenditure of Funds from the 2018 CIP Budget for the Chateau Theatre BACKGROUND RECITALS A. By Resolution No. 31-2015, the Destination Medical Center Corporation (“DMCC”) Board of Directors approved the acquisition of the Chateau Theatre for a purchase price of $6,000,000, upon making findings that: 1) the acquisition of the Chateau Theatre was within the development district boundaries, as identified in the Development Plan, adopted on April 23, 2015, as amended; 2) the acquisition was a public infrastructure project within the meaning of Minnesota Statutes Section 469.40, subdivision 11; and 3) that the acquisition was consistent with the Development Plan. B. Resolution No. 31-2015 also commended the City of Rochester (the “City”) and Mayo Clinic for their cooperative work and initiative in the proposed acquisition of the Chateau Theatre building, and the DMCC pledged its commitment to work with the City and Mayo Clinic to determine the best use of the building. C. The City subsequently approved the acquisition of the Chateau Theatre and acquired the building in 2016. D. A Chateau Theatre Reuse Committee was established and consultants were engaged to consider the re-use, design and governance of the Chateau Theatre and to make recommendations. The committee met for over a year, and in September, 2017, formally recommended that the DMCC approve the renovation of the Chateau Theatre as a multipurpose performing arts center. E. The DMCC received the Chateau Theatre Reuse Committee’s recommendation, and further recommended that continuing work be done to resolve issues related to diversification of capital funding sources, creation of a sustainable management, operations and programming plan, the relationship to adjacent development and plans for interim use and activation. F. In the 2018 Five Year Capital Improvements Plan, (the “2018 CIP”) approved by the DMCC on November 2, 2017, the DMCC preliminarily approved the next steps of the design of the Chateau Theatre in the amount of $2,640,002, and found that the Chateau Theatre and other projects itemized in the CIP were public infrastructure projects, consistent with the Development Plan. The DMCC reserved the right to grant final approval of funding of certain projects, including the Chateau Theatre, upon final determination of scope, costs and availability of funds. 69 2 G. Staff for the City and Destination Medical Center Economic Development Agency (“EDA”) now request that the DMCC give final approval of an amount not to exceed $1,000,000 from the 2018 CIP budget for the design, repairs, and capital improvements to the Chateau Theatre, to include work such as securing and protecting the building, repairing it to code and continued study and analyses with respect to design and development; such request as set forth in Exhibit A, attached. RESOLUTION NOW THEREFORE, BE IT RESOLVED, by the Destination Medical Center Corporation Board of Directors that the ongoing design, repairs, capital improvements and studies related to the next phase of work on the re-use of the Chateau Theatre is a public infrastructure project and is hereby approved in an amount not to exceed $1,000,000. BE IT FURTHER RESOLVED, that the Board requests the City and EDA staff for regular updates with respect to this next phase of work on the Chateau Theatre. BE IT FURTHER RESOLVED, that the Board reserves the discretion to grant final approval for the balance of the funds remaining in the 2018 CIP budget for the Chateau Theatre upon completion of this phase of the work and upon recommendation of the City and EDA staff. 1076958-3.DOCX 70 TO: Destination Medical Center Corporation Board of Directors City of Rochester Mayor and City Council Chateau Theatre Reuse Committee From: Patrick Seeb, DMC EDA Director of Economic Development and Placemaking Aaron Parrish, City of Rochester Assistant City Administrator II RE: Chateau Theatre Interim Use and Long Term Restoration Overview The reuse of the Chateau Theatre has been identified as a strategic priority of the DMC, City, and many other stakeholders. Below is an overview of key activities to date: 2015: 1.DMCC approved acquisition of Chateau Theatre as "public infrastructure project." 2.City Council authorizes purchase of Chateau Theatre 3.Mayor forms Chateau Theatre Reuse Committee 2016: 1.City finalizes purchase 2.Task Force organizes its work around three milestone recommendations include Reuse, Design, and Management and Governance 3.Consultant team of Miller Dunwiddie and Webb Management retained 4.Overall Task Force conclusions include: a.Reuse as a multipurpose performing arts center b.Redesigned within current footprint of the building and under the alleyway c.$23+ million cost estimate d.Management and programming by City Music Department, with ongoing operation loss 5.City Council received report and asked for the following: a.Further discussion with adjacent property owners to explore opportunities b.Consideration of alternative sources of funding, inclusive and in addition to DMC funds c.Further study of the business plan, avoiding ongoing operating loss 2017: 1.City staff modified proposed operating income and expense model, still resulting in on-going operating loss 2.Ryan Companies agreed to consider incorporating Chateau facilities in the redeveloped Wells Fargo building, pending overall project plans 3.Task Force recommends inclusion of the Chateau costs in the future CIP budget, for presentation to DMCC 4.DMCC Report and Recommendation, November 2017 EXHIBIT A 71 a. Advance Chateau Theatre as a multiuse performing arts center, but consider a less capital intensive restoration model b. Develop a strategy to diversify capital funding sources c. Ensure a sustainable ongoing management, programming, and operations plan d. Build relationships to adjacent development e. Consider ideas for interim use and activation f. Preliminary CIP authorization In the context of the policy feedback outlined above, over the past few months DMC EDA and City staff have been discussing the potential for interim use of the Chateau Theatre. The focus was to assess what improvements would be necessary for some assembly occupancy that would help to build support and enthusiasm for the overall vision. Our architectural partner, Miller Dunwiddie, was asked to complete this evaluation and to provide recommendations on improvements that would be necessary to stabilize the building until the full renovation could be completed. Attached is a copy of their review. Interim Use Recommendation While the Interim Use Enhanced B1 Option is the most expensive of the three options, the investment for interim activation does not materially change in this option. This option includes additional costs for roof and window work will ensure that the building is protected from further deterioration. Moreover, removal of the escalator and second floor, costs that will be incurred at some point, will significantly enhance the functionality of the first floor for interim use. Based on the Miller Dunwiddie Report the estimated cost for this work is $887,200. Below is a summary of construction costs for the project: 72 Operations would be consistent with the occupancy limitations of the building. Some limited funding would be needed to make the facility operational. The goal during this interim activation will be for operational costs to sustain itself with the rental income generated for events. Interim operations could be provided by the City Music Department or in connection with a community partner. The types of uses these improvements will allow include music and entertainment; public speakers, education programs, video presentations; and breakfast, lunch, and dinner events. It will accommodate audiences up to 390 people. This is consistent with the infrequent uses allowed to date and the many requests that have been received by city administration and DMC. It is the staff recommendation that the City and DMCC authorize the use of CIP funds for capital improvements to Chateau Theatre to a) secure and protect the building and to b) bring it up to code so that it can be used for "assembly" purposes. If the DMCC Board approves the project it would be considered by the City Council for approval as well Below is an approximate schedule for the project: Next Steps In addition to evaluating the reuse activities, staff has been in discussions on alternative approaches for advancing the long term redevelopment of the Chateau, including opportunities for financing the project. New Markets Tax Credits, State Historic Tax Credits, and Federal Historic Tax Credits all have the potential to provide significant capital investment into the project. However, both options take time and a development partner that can benefit from the credits. By way of example, the recently completed Norshor Theatre renovation in Duluth was successfully renovated using the following investment strategy: $7 million State Bonding (took two legislative sessions to get approved) $4 million public fund raising (still underway) $20 million (combination of NMTC, HTC, and $2 million gift) $31 million total financing (plus $2 million original acquisition) Staff would recommend that we continue to pursue these funding sources to best leverage the local funds needed to successfully renovate the Chateau Theatre. In order to do that, it is suggested that a 73 Request for Proposal be developed to determine if there is a development partner that could help facilitate the best overall project. Their expertise in construction, design, developing operational partnerships, and financing would be a strong asset to the overall project. In addition, we will continue to engage with the activity occurring in the Wells Fargo Building and Heart of the City to make sure that all of the activities are mutually beneficial and reinforcing. 74 INTERIM USE OUTLINE Date: Updated March 15, 2018 Project: Chateau Theatre Miller Dunwiddie Project No.ROC1601 RE: Preliminary Review of Options for Interim Use From: Denita Lemmon, AIA The City of Rochester requested a review of the Chateau Theatre to determine if the building can be used for assembly functions in the interim, prior to any future work to restore the Chateau to a Performance Arts Space. Use of both floors was considered, as was removal of the second floor and escalator that was added for the book store, to restore the two story volume. The use of the main floor only with the escalator still in the space is described as Interim Base A1 – Option 1. The use of the main floor with the escalator removed is described as Interim Base A2 – Option 2. The use of the main floor with both the escalator and second floor removed to restore the volume of the two story space is described as Interim Enhanced B1. The use of the second floor has a number of considerations that are not resolved within this scope, these include; exiting into the skyway system which would require renewed agreements with the adjacent buildings, increased toilet fixture count and access to the toilet rooms on the main level. The Miller Dunwiddie design team looked at the existing physical space and noted the following considerations if the space is used in the interim prior to the complete restoration. The following items were identified: Life Safety - egress width, egress doors, egress lighting, egress signage, 2 nd floor access/egress Toilet Rooms – fixture count, plumbing function, accessible/equitable accommodations Mechanical – air exchange/ventilation, distribution, sprinkler Electrical – service, distribution, lighting, alarms/strobes Accessibility – access, accommodations, assisted listening Envelope – doors, windows, masonry, roof Interior - finishes A description of scope and associated costs for each of the areas above are outlined in the table starting on page 3 and the drawings starting on page 9. 75 Chateau Theatre Interim March 15, 2018 Page | 2 of 16 Beyond the code compliance and condition of the physical space, use of the space will require operational considerations including staffing and fixtures/furniture/equipment. Below is a list of staffing or other possible expenses. These expenses are not Included in the table below but need to be considered. Staffing Needs: Custodial staffing Programming/booking/coordination staffing Maintenance staffing Security staffing Event host or usher staffing Catering or beverage service staffing Operational considerations will include the need for fixture/furniture and possible equipment rental. These costs may be able to be passed on to the user but need to be assigned. Below is a minimum list of fixture/furniture and equipment needs based on possible use: Seated event – at tables Tables Chairs Linens Catering tables Accent or other lighting Seated event – lecture or other Chairs Stage or podium Speakers and Mic Accent or other lighting Assisted listening system Standing event – concert or other Stage Speakers and Mic Accent or other lighting Assisted listening system It is anticipated and has been confirmed that the work will be publicly bid as a design/bid/build. This will require complete construction documents. Miller Dunwiddie and Michaud Cooley Erickson will support completion of these documents, bidding and construction administration. All work will be designed and reviewed to meet the intent of the Secretary of the Interior Standards. Reviews by both SHPO and Rochester HPC are anticipated. Miller Dunwiddie will provide a contract if this scope is acceptable. We can proceed upon receipt of signed contract. The fee is broken down as follows: Construction Documents Architectural - Miller Dunwiddie $30,000 Electrical/Mechancial Plumbing - Michaud Cooley Erickson $25,000 Bidding and Construction Administration – assumes 10 site visits to review for completion of construction per Secretary of Interior Standards and Construction Documentation Miller Dunwiddie $15,000 Michaud Cooley Erickson $5,000 TOTAL $75,000 /- Chateau Theatre Interim March 15, 2018 Page | 3 of 16 The following table summarizes the outcome of this review and required work scope. The work scope items are designated as follows: Interim only – This is work that needs to be completed for the interim use but would be replaced or removed for the future renovation/performance use scope of work. Building Maintenance / Future Restoration Scope – This work is identified and needs to be completed for both the interim scope and the future restoration. This work is associated with building maintenance. If this work is completed now it will not have to be completed as part of the future work. Enhance Interim Use – This is work that has been identified to preserve the building. These items are included under Interim Use A1 Option 1 and B. INTERIM USE A1 Option 1- MAIN FLOOR REVIEW Meets intent of code no work scope Required work scope value – Interim Only Required work scope value – Building Maint./ Future Restoration Scope Enhance Interim Use Notes – Required scope of work Life Safety Egress width X Assembly use requires 2 exits and a minimum width requirement. The exit doors meet this requirement. Egress doors $5,100 Exit door into alley should be replaced to assure function and update to egress panic hardware on both leaves of double door. Egress lighting $300 Egress lighting is powered by battery supplies. Review all emergency fixtures and replace batteries as required. These supplies need to be checked on an ongoing basis. Egress signage X Existing signage meets intent of code 2 ND floor access $34,390 No access to second floor other than maintenance. No use for storage or other programming. Provide enclosure with door around escalator. Toilet Rooms Fixture count X Meets intent of code if number of building occupants is limited to 390 Plumbing function $6,000+ Lines need to be scoped from basement clean out to street. There have been past scenarios where toilet drainage is an issue for functional use of facilities. Cost does not include work if issue is discovered during scoping. // Chateau Theatre Interim March 15, 2018 Page | 4 of 16 INTERIM USE A1 Option 1- cont. Meets intent of code Interim Only Building Maint./ Future Restoration Scope Enhance Interim Use Notes – Required scope of work Toilet Rooms – cont. Accessible Accommodation Does not meet intent of current code. These can be used ‘as is’ until future work scope is implemented for building restoration and upgrade. Mechanical Air exchange X Meets intent of code if number of building occupants is limited to 390 Distribution $12,000 Adjustments needed to balance system Electrical Service X Service is adequate for use Distribution $3,600 Function requires multiple locations distributed throughout room into receptacles to eliminate cable solutions that could contribute to trip hazards – provide 6 new distribution locations around perimeter of room with wire mold. Lighting X $13,000 Meets intent of code. May not meet use or function dimming or other requirements. Provide multi- zone switching control of existing fixtures to create several scenes for different uses of the space. Supplemental lighting may be required for some events. Accessibility Access X Building meets requirements for access Accommodations See toilet rooms- above. Building does not meet current code. Upgrade to current code would require full upgrade of existing facilities and addition of fixtures and companion facilities Envelope Doors $10,000 Other than exiting noted above this is not a code issue. All doors should be repaired/maintained to assure function and operation. Cost represents material and labor to repair door and hardware. /3 Chateau Theatre Interim March 15, 2018 Page | 5 of 16 INTERIM USE A1 Option 1- cont. Meets intent of code Interim Only Building Maint./ Future Restoration Scope Enhance Interim Use Notes – Required scope of work Envelope – cont. Windows $6,000 $40,000 option Windows at front of building continue to leak. These should be maintained or replaced to protect asset of historic materials. Range of costs from repair to replacement. Masonry $45,000 $262,000+ option No scope identified or required at this time Roof $45,000 $262,000+ option Roof is actively leaking. This requires more assertive maintenance or full replacement. Cost represents removal of roof units and replacement with membrane. Additional cost of $100,000 would add replica pavers over membrane to simulate historic appearance. Additional cost of $160,000 would remove, salvage and reattach historic roof units. Interior Finishes $84,000 Floor replacement and finishes need repair to minimize possible trip or other hazards. Replace carpet at first floor. Infill 160 sf to a depth of ½” within lobby space and carpet with entry walk off modular carpet. Provide painted wood covering at multiple locates equaling approximately 75 sf. Add 20 lf of stain finished wood trim at column base. Paint doors and frames at 5 locations. /9 Chateau Theatre Interim March 15, 2018 Page | 6 of 16 INTERIM USE A1 Option 1- COST SUMMARY Interim Only Building Maint./ Future Restoration Scope Enhance Interim Use $204,290+ Total Cost Associated with Interim Use only $15,100 Total Cost associated with building maintenance TOTAL COST = $219,390+ A1 Option1 for Interim Use and Building Maintenance / Future Scope + if additional plumbing repairs/replacement are required based on scoping findings +$217,000 Add for option to replace roof in lieu of repair – saves on expense of $45,000 in repairs +$34,000 Add for option to restore windows in lieu of repair – saves on expense of $6,000 in repairs 3k Chateau Theatre Interim March 15, 2018 Page | 7 of 16 INTERIM USE A2 Option 2 - MAIN FLOOR REVIEW Meets intent of code – no work scope Interim Only Building Maint./ Future Restoration Scope Enhance Interim Use Notes – Required scope of work Life Safety All items noted in A1 – plus items below 2ND floor access $86,800 Remove escalator. Provide rail at second floor. No access other than maintenance. Toilet Rooms All items noted in A1 Mechanical All items noted in A1 Electrical All items noted in A1 Accessibility All items noted in A1 Envelope All items noted in A1 Interior All items noted in A1 Finishes $8,600 Increased carpet area, floor repair at removed escalator location. INTERIM USE A2 Option 2- COST SUMMARY Interim Only Building Maint./ Future Restoration Scope Enhance Interim Use $178,500+ Items from A1 minus escalator enclosure $8,600 Total Cost Associated with Interim Use only $15,100 Items from A1 $86,800 Total Cost associated to remove escalator TOTAL COST = $280,000 A2 Option 2 for Interim Use and Building Maintenance / Future Scope See A1 for add options for roof and windows 3S Chateau Theatre Interim March 15, 2018 Page | 8 of 16 INTERIM USE B1 ENHANCED USE 2 Story volume Meets intent of code – no work scope Interim Only Building Maint./ Future Restoration Scope Enhance Interim Use Notes – Required scope of work Life Safety All items noted in A1 – plus items below 2ND floor access $193,600 Remove escalator and second floor structure including ceiling, lighting, sprinkler and mechanical. Provide rail at second floor from stage house. No access other than maintenance. Toilet Rooms All items noted in A1 Mechanical All items noted in A1 – plus items below Air exchange X $38,600 Requires modification to distribution of mechanical. Provide exposed duct and vents to supply 2 volume space. Assume 40 lf of vertical and 30lf of horizontal duct runs. Location of ducts and mounting needs to be reviewed to minimize damage to existing wall and ceiling plaster. Distribution $12,000 Adjustments needed to balance system Electrical All items noted in A1 Lighting X $47,000 Requires fixture/lamp upgrade at existing locations of second floor ceiling (historic theatre ceiling) to assure lighting to main floor from second floor ceiling above. May not meet use or function dimming or other. Provide multi-zone switching control of existing fixtures to create several scenes for different uses of the space. Supplemental lighting may be required for some events. Accessibility All items noted in A1 Envelope All items noted in A1 Interior All items noted in A1 Finishes $2,400 Remove flaking plaster at approximately 200 sf. 3B Chateau Theatre Interim March 15, 2018 Page | 9 of 16 INTERIM USE B1 ENHANCED USE COST SUMMARY Interim Only Building Maint./ Future Restoration Scope Enhance Interim Use $178,500+ Items from A1 minus escalator enclosure $100,000 Total Cost Associated with Interim Use only $15,100 Items from A1 $193,600 Total Cost associated to remove escalator and infill floor SUBTOTAL COST = $487,200 B1 for Enhanced Interim Use and Building Maintenance / Future Scope +$217,000 Add for option to replace roof in lieu of repair – saves on expense of $45,000 in repairs +$34,000 Add for option to restore windows in lieu of repair – saves on expense of $6,000 in repairs TOTAL COST WITH ADDED OPTIONS $738,200 Subtotal above plus options to replace roof and restore windows $75,000 Arch/Engineer Services $74,000 10% Owner Contingency TOTAL COST INTERIM USE B1 $887,200 This is for construction and design services only. All other operational costs would be in addition to this total. Proposed Schedule – Option B1 Initial SHPO conversation related to scope Documentation 4 weeks City Review 1 week HPC Review 2 weeks Bidding 4 weeks Permitting 2 weeks Construction 6 – 8 weeks 3– 84 85 86 87 88 89 90 91 92 93 94 Discovery Walk To: DMCC Board of Directors From: DMC EDA Staff Date: March 15, 2018 Overview: The RSP-led design team has been retained to design Discovery Walk, which is the public realm along the 2nd Avenue corridor from 2nd Street south to 6th Street (Soldiers Field). Next Steps: -Schematic design phase is complete -Presentations to City, Mayo, Community, DMC EDA, DMCC, and City Council underway -Final report will be completed by May 1, 2018 -Impact on CIP TBD 95 96 Project Previews © 2018 DMC 97 © 2017 DMC PROJECT NAME 1 Residence at Discovery Square 11 Chateau Theatre 2 Titan-Opus Project 12 Heart of the City Public Space 3 Mortenson Project 13 Alatus 4 Associated Bank 14 Ronald McDonald House 5 Titan Hilton Hotel 15 501 on First 5a 1st Ave Parking Ramp 16 Conley-Maass Building 6 Bloom 17 Mayo Civic Center 7 Flats on 4th 18 Creative Salon Site 8 Lofts at Mayo Park 19 Extended Stay Hotel 9 Broadway & Center 20 Saint Marys Place 10 First Avenue Flats 21 Discovery Walk 13 14 1 3 15 16 2 7 817 6 4 12 11 5 9 10DMC District 19 18 5a 20 21 No DMC Funding DMC Funding 98 © 2018 DMC Bloom 99 Bloom Waterfront MIXED USE BUILDINGS © 2017 DMC DEVELOPMENT UPDATE Downtown Waterfront PROJECT DETAILS 2 Towers; 215 Senior Living Units; 181 Hotel Rooms; 132 Condo Apartment Units; 498 Enclosed Parking Spaces (Public and Private) CAPITAL INVESTMENT $180 MILLION Property tax increase from $$222,596 to $2,588,733 per year. $20M requested Tax Increment Financing. COMMUNITY ACTIVATION 34,468 sq. ft. of Food and Beverage; 6,963 sq. ft. of Retail; River Walk, Ice Skating Rink/Dry Foundation; Seating Terraces; Board Walk; Winter Garden; Public Art 100 BloomWaterfront 101 Bloom Waterfront NEXT STEPS © 2017 DMC DEVELOPMENT UPDATE Downtown Waterfront •DMC staff continue to review DMC Joint Funding Application and may come to boards in June 2018 for action •Bloom to submit final Land Use/Zoning Application 102 © 2017 DMC EKN 103 EKN (American Legion Site) Extended Stay Hotel © 2017 DMC DEVELOPMENT UPDATE Central Station PROJECT DETAILS 175 Hotel Rooms; 6 Story Hotel; 95 Enclosed Parking Spaces; with Meeting Room Space CAPITAL INVESTMENT $45 MILLION Property tax will increase but is unknown at this time. 104 EKN (American Legion Site) 105 EKN (American Legion Site) FURTHER ACTION © 2017 DMC DEVELOPMENT UPDATE Central Station •Awaiting anticipated DMC Joint Funding Application •Private negotiations regarding the sale of the property are underway •EKN to submit final Land Use/Zoning Application 106 © 2017 DMC Wells Fargo 107 Wells Fargo Building Redevelopment © 2017 DMC DEVELOPMENT UPDATE Heart of the City PROJECT DETAILS 105,000 sq. of building; Ryan Companies to purchase building; Wells Fargo will remain in building; Branch bank relocation to 1st Ave; Facade improvements CAPITAL INVESTMENT Significant capital will be invested into the property including Subway/Plaza/Skyway access, floor reconfiguration, and extensive exterior improvements COMMUNITY ACTIVATION Public facing to Peace Plaza; Improved access to subway and skyway; New indoor space integrated with Peace Plaza; Integration with Chateau Theatre redevelopment 108 Wells Fargo 109 NEXT STEPS © 2017 DMC DEVELOPMENT UPDATE Heart of the City •Integration with the Chateau Theatre redevelopment •Integration with Peace Plaza and 1st Avenue •Work with Ryan to secure Wells Fargo retail presence on 1st Avenue, ensuring a public facing use on Peace Plaza Wells Fargo Building Redevelopment 110 ROCHESTER INTEGRATED TRANSIT STUDIES TRANSIT CIRCULATION STUDY CITY LOOP STUDY STREET USE AND OPERATIONS STUDY PARKING AND TRANSPORTATIONMANAGEMENT AUTHORITY (TMA) STUDY This level of growth will have significant impacts on the city’s land use, transportation, neighborhoods, infrastructure, natural resources, municipal facilities and services, health, and budget. Source: Planning 2 Succeed 2040, Draft Comprehensive Plan Source: Planning 2 Succeed 2040, Draft Comprehensive Plan *Projected vehicle trips in 2040 assuming implementation of DMC and Comprehensive Plan transit and land use programs. “While more residential opportunities are expected to be developed in and around the downtown area, allowing more persons to walk to work, the great majority of the workforce will still be commuting to downtown.” -Planning 2 Succeed 2040, Draft Comprehensive Plan PROJECTED GROWTH THROUGH 2040 PRIVATE VEHICLE TRIPS IN/OUT OF DMC DISTRICTDMC DISTRICTROCHESTER ~30,000 new workers 60,000+ Total workers ~6,000 new residents ~10,000 Total residents Growth over approximately the next 25 years 55,000 Additional People 50,000 Additional Jobs 24,000 Additional Housing Units 160,000 Total Downtown Daytime Population 3 Million Annual Visitors - 2/3 Mayo Related 0 50,000 100,000 150,000 200,000 250,000 300,000 2010 Da i l y V e h i c l e T r i p s 2040 Year ~165,000 ~268,000 ~180,000 (projected*) 111 ROCHESTER INTEGRATED TRANSIT STUDIES TRANSIT CIRCULATION STUDY CITY LOOP STUDY STREET USE AND OPERATIONS STUDY PARKING AND TRANSPORTATIONMANAGEMENT AUTHORITY (TMA) STUDY Make it easy, affordable, and convenient for people from southeast Minnesota and around the World to get to downtown Rochester Bring 30% of the workforce to downtown Rochester on transit by 2035 Create a park-once downtown environment connected by a frequent downtown circulator Build shared-parking prioritized for economic development 10 TRANSPORTATION PRINCIPLES Create world-class streets, designed for people Create an exceptional place for healthy, human-powered transportation Form a downtown Rochester Access Authority Invest in sustainable transportation infrastructure and programs that reduce the ecological footprint of the City Use DMC funding to leverage public and private transportation infrastructure funding Establish and maintain a transportation network that is accessible and inclusive to people of all ages, abilities, and states of wellness Source: DMC Development Plan 112 ROCHESTER INTEGRATED TRANSIT STUDIES TRANSIT CIRCULATION STUDY CITY LOOP STUDY STREET USE AND OPERATIONS STUDY PARKING AND TRANSPORTATIONMANAGEMENT AUTHORITY (TMA) STUDY Meeting parking needs within the district would require a significant footprint and limit land available for other types of development PARKING DEMAND AND VEHICLE TRIPS IN/OUT CAPACITY EXISTING DMC VEHICLE TRIPS IN/OUT CAPACITY: PM PEAK PERIOD ANALYSIS •Existing PM Peak Hour (Fall 2016) •Number of additional vehicles that can leave downtown during the PM Peak (90 minutes) by roadway -Limited number of future vehicles can be accommodated on roadways (Civic Center Drive, 2nd Street SW and 6th Street SW) accessing US 52 NO BUILD 2040 PM PEAK OPERATIONS •Year 2040 – PM Peak •Traffic conditions if parking approach and single-occupant driver percentage (70%)maintain current trends -Poor operations/over-capacity conditions on roadways (Civic Center Drive, 2nd Street SW and 6th Street SW) accessing US 52 -Downtown would be more congested than today including some roadway segments that would operate poorly FIGURE 2 STREET USE STUDY 01-18-2017 EXISTING EXITING PORTAL CAPACITY: PM PEAK PERIOD ANALYSIS BR O A D W A Y A V E £14 £14 £14 £52 6 ST SE 6 A V E N W 3 A V E N W 4 A V E N W 3 A V E S E 2 ST NW 3 A V E S W 4 A V E S W 4 ST SW 10 ST SW 4 ST S E 6 A V E S W 23 A V E S W 15 A V E N E 7 ST NE 2 ST SW CENTER ST W 8 A V E S E 9 ST SE 11 A V E S E 9 A V E S W 8 1/2 ST SE 6 ST SW 10 A V E S W 1 4 A V E S W 17 A V E S W 5 ST NE 1 5 A V E S E 7 ST NW BR O A D W A Y A V E S Slatterly Park Bear Creek Park East Park Silver Lake Park Quarry Hill Nature Center Goose Egg Park Cooke Park Kutzky Park Zumbro West Park Eagle Ridge Park Younge Park Baihly Meadows Park Dinah Olin Bird Sanctuary Plummer House St. Marys Park Central Park Cascade Lake Park Homestead Park Fuad Mansour Sports Complex Mayo Field Park Soldiers Memorial Field Zumbro South Park Rochester Bike Trail Rochester Bike Trail Downtown Loop Graham Park Mayo Memorial Park Mayo Civic Center Quarry Hill Park # # # ### ###### ######### ### ### ### ### DRAFT 01/18/2017 ### 59% 7%47% 45% 67% 49% 76% 75% 25% 55% 12% 6% ###DMC District Entry/Exit Location % Existing Capacity Available % Existing Capacity Used 90 Minute Traffic Pattern 0% 100% Legend N XX%Exisiting Peak Hour Capacity Remaining Less than 20% Existing Peak Hour Capacity Remaining XX% 4th Street SW 6th Street SW 7th Street SW 1st Street SW 2nd Street SW 3rd Street SW Center Street 1st Street NW 2nd Street NW 3rd Street NW So u t h B r o a d w a y No r t h B r o a d w a y 1s t A v e n u e S E Ci v i c C e n t e r D r i v e N E Center Street 3r d A v e n u e S E 4t h A v e n u e S E 1s t A v e n u e S W 2n d A v e n u e S W 4t h A v e n u e S W 5t h A v e n u e S W 6t h A v e n u e S W 7t h A v e n u e S W Hi g h w a y 5 2 9t h A v e n u e S W Civic Center Dr. NW 12 t h A v e n u e S W 5th Street NW New parking needed (in total) = Parking Ramp locations are for graphical purposes only 16,500 = 7 Blocks AREA REQUIRED = 7 City Blocks PARKING SPACES = ~16,500 Comparable Existing Ramp Mayo Employee West Ramp 2,300 = 1 Block 9-STORY RAMP AREA REQUIRED = 1 City Block PARKING SPACES = 2,300 113 ROCHESTER INTEGRATED TRANSIT STUDIES TRANSIT CIRCULATION STUDY CITY LOOP STUDY STREET USE AND OPERATIONS STUDY PARKING AND TRANSPORTATIONMANAGEMENT AUTHORITY (TMA) STUDY 71%10% [3,500] Drive Alone [x,xxx] = Number of Employee Commuters Carpool Transit Walk Bike 30% 14% [18,750] [8,750] 13% [8,100] [25,000] 7%[2,500] 43% [26,800] Drive Alone [x,xxx] = Number of Employee Commuters Carpool Transit Walk Bike 12% [4,250] COMMUTER TRAVEL CHOICES 2040 TARGET CONDITIONSEXISTING CONDITIONS Source: DMC Development Plan 71% Single Occupant Vehicles create congestion and limit roadway portal capacity ~24,000 parking spaces demanded within DMC District (current congestion issues) Mayo Clinic employee parking policies contribute significantly to current transit mode split ~40,000 parking spaces demanded within the DMC District under future full development conditions New Mayo employees make up 40% of new parking demand Employees overall make up > 50% of new parking demand HOW CAN THE MODE SHIFT TARGET BE ACHIEVED? PROVIDE OPTIONS •New bus service/circulator •Expand Park-and-Ride •Improved bike facilities MANAGE PARKING DEMAND •Limit employee cars downtown •Incentivize alternate trips •Pricing strategies ADD DENSITY DOWNTOWN •Housing options •Mixed use development •Streets designed for people 71%10% [3,500] Drive Alone [x,xxx] = Number of Employee Commuters Carpool Transit Walk Bike 30% 14% [18,750] [8,750] 13% [8,100] [25,000] 7%[2,500] 43% [26,800] Drive Alone [x,xxx] = Number of Employee Commuters Carpool Transit Walk Bike 12% [4,250] 114 ROCHESTER INTEGRATED TRANSIT STUDIES TRANSIT CIRCULATION STUDY CITY LOOP STUDY STREET USE AND OPERATIONS STUDY PARKING AND TRANSPORTATIONMANAGEMENT AUTHORITY (TMA) STUDY TRAVEL DEMAND MANAGEMENT (TDM) TMA TDM City/DMC 18 PASS PARKING POLICIES •Expand carpool parking incentives •Integrate a park and bike program into park and rides TRAVEL DEMAND MANAGEMENT (TDM) The TDM program generally provides services and programs to encourage/support commuters to choose more sustainable modes such as transit and shuttle, carpooling, walking , biking, or telework. TRANSPORTATION MANAGEMENT ASSOCIATION (TMA) A Transportation Management Association, or TMA, is a partnership between public and private sector employers and stakeholders with a mandate to address transportation concerns within the community it serves. A TMA generally provides programs and services to encourage and support commuters to choose more sustainable commute modes such as carpooling, transit, walking, cycling and telework. FACILITY IMPROVEMENTS •Improved wayfinding with walking times featured •Encourage employers and buildings to provideend-of-trip facilities (i.e. showers, bike lockers) ACTIVE TRANSPORTATION •Subsidize bikeshare memberships •Create bike loans and discounted bikepurchase programs TRANSIT PROGRAMS •Encourage employers and buildingsto add real-time transit displays •Implement an employer transitpass program SHARED MOBILITY •Facilitate carsharing downtown •Dedicated curb space forshared mobility vehicles DEVELOPER POLICIES •Encourage the installation of infrastructure thatsupports TDM and non-auto travel •Provide free transit passes •Bike parking, shared use drop-off sites, sharedparking facilities IMPLEMENTATION •Pilot TDM Program •TDM Program Launch •Trip planning technology EDUCATION •Conduct educational workshops/events •Create and distribute new employee and residenttravel kits DMC TRANSPORTATION PRINCIPLES SUPPORTED BY TDM/TMA •Easy, affordable, and convenient to get to downtown Rochester •Bring 30% of the workforce to downtown Rochester on transit •A park-once downtown environment •Shared-parking for economic development •World-class streets, designed for people •Healthy, human-powered transportation •Reduce the ecological footprint of the City •Transportation network accessible to all people 115 Do w n t o w n R o c h e s t e r I n t e g r a t e d T r a n s i t S t u d i e s J8 6 1 4 _ D O W N T O W N _ R O C H E S T E R _ I N T E G R A T E D _ T R A N S I T _ S T U D I E S . 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Ma r y s Pa r k Ce n t r a l P a r k Ca s c a d e La k e P a r k Gr a h a m Ar e n a Co m p l e x Ma y o Fi e l d Pa r k So l d i e r s Me m o r i a l Fi e l d Ro c h e s t e r Bi k e Tr a i l Gr a h a m P a r k Ma y o Ci v i c Ce n t e r 0 1, 0 0 0 2, 0 0 0 Fe e t LE G E N D DM C B o u n d a r y Ou t s i d e D M C D i s t r i c t P a r k i n g A r e a s Do w n t o w n P a r k i n g Ro c h e s t e r P r i m a r y T r a n s i t N e t w o r k (B u s R a p i d T r a n s i t ) Tr a n s i t R o u t e 1 ( B u s R a p i d T r a n s i t ) Tr a n s i t R o u t e 2 ( B u s R a p i d T r a n s i t ) Ci t y L o o p In t e r i m C i t y L o o p ( u n t i l r a i l c o r r i d o r is a v a i l a b l e ) Ma j o r R o a d w a y I m p r o v e m e n t s Po t e n t i a l T r a n s i t S t o p TR A N S I T E L E M E N T S (n e e d e d t o m e e t m o d e s h i f t g o a l s ) SY M B O L D A T A 4, 0 0 0 t o t a l pa r k i n g sp a c e s 2 , 0 0 0 to t a l pa r k i n g sp a c e s Mo b i l i t y Hu b A Mo b i l i t y Hu b B Re c o n s t r u c t i o n o f e l e m e n t s of T H 1 4 / T H 5 2 i n t e r c h a n g e t o ac c o m m o d a t e M o b i l i t y H u b A Ex p a n s i o n o f C i v i c C e n t e r Dr i v e t o 6 l a n e s Br o a d w a y Av e n u e P T N : 5. 9 m i l e s f r o m Sh o p k o N t o Sh o p k o S 2n d S t r e e t P T N : 4 . 4 m i l e s fr o m M a y o W P a r k a n d Ri d e t o O l m s t e d C o u n t y Co m m u n i t y S e r v i c e s Wi t h i n D M C b o u n d a r y a r e a - 7 , 8 5 0 n e w p a r k i n g s p a c e s (d e v e l o p e d b y p r i v a t e se c t o r i n c o n j u n c t i o n w i t h de v e l o p m e n t ) IN T E G R A T E D T R A N S I T S T U D Y : P R E F E R R E D S O L U T I O N S Co n s t r u c t i o n o f 2 , 6 5 0 p a r k i n g sp a c e s a t n e w p a r k a n d r i d e lo c a t i o n s p l u s e x p r e s s b u s se r v i c e a n d / o r P T N f o r a c c e s s 116 2 Ne w B R T PT N R o u t e s pr o v i d i n g f r e q u e n t a l l - d a y se r v i c e o n 2 n d S t r e e t a n d Br o a d w a y A v e n u e ~2 , 6 5 0 ad d i t i o n a l p a r k i n g sp a c e s a t p a r k - a n d - ri d e l o c a t i o n s Re c o n s t r u c t e d 14 / 5 2 in t e r c h a n g e t o p r o v i d e ea s y p a r k i n g a c c e s s 1+ m i l e s of C i v i c C e n t e r D r i v e ex p a n d e d t o 6 l a n e s 22 , 0 0 0 + da i l y r i d e s w i l l b e s e r v e d by t h e t r a n s i t c i r c u l a t o r 18 Ho u r s o f S e r v i c e BR T : r e l i a b l e s e r v i c e e v e r y 10 m i n u t e s ~6 , 0 0 0 new e m p l o y e e p a r k i n g sp a c e s l o c a t e d a t 2 mo b i l i t y h u b s 2 Ne w t r a n s i t ci r c u l a t o r r o u t e s co n n e c t i n g m o b i l i t y h u b s wi t h k e y e m p l o y m e n t de s t i n a t i o n s 12 Ne w B R T S t a t i o n s to a c c e s s P T N a n d t r a n s i t c i r c u l a t o r 4 p h a s e s of i m p l e m e n t a t i o n 20 y e a r s to b u i l d $1 . 2 bi l l i o n t o c o n s t r u c t 38 b l o c k s o f p r o t e c t e d b i k e w a y s ~8 ,0 0 0 Ne w p a r k i n g s p a c e s do w n t o w n s e r v i n g pa t i e n t s , v i s i t o r s , sh o p p e r s , a n d r e s i d e n t s PR E F E R R E D S O L U T I O N S : BY T H E N U M B E R S Ap p r o x i m a t e l y 3 m i l e s of C i t y L o o p C o n n e c t i n g St . M a r y s P l a c e , H e a r t of t h e C i t y , D i s c o v e r y Sq u a r e , U n i v e r s i t y o f MN R o c h e s t e r , a n d t h e Do w n t o w n W a t e r f r o n t 19 0 bl o c k s o f pe d e s t r i a n en h a n c e m e n t s RO C H E S T E R I N T E G R A T E D T R A N S I T S T U D I E S TR A N S I T C I R C U L A T I O N ST U D Y CI T Y L O O P S T U D Y ST R E E T U S E A N D OP E R A T I O N S S T U D Y PA R K I N G A N D TR A N S P O R T A T I O N MA N A G E M E N T AU T H O R I T Y ( T M A ) S T U D Y 117 ROCHESTER INTEGRATED TRANSIT STUDIES TRANSIT CIRCULATION STUDY CITY LOOP STUDY STREET USE AND OPERATIONS STUDY PARKING AND TRANSPORTATIONMANAGEMENT AUTHORITY (TMA) STUDY A PARKING STRATEGY FOR DOWNTOWN ROCHESTER ~6,000 new employee parking spaces located at2 mobility hubs/areas ~8,000 New parking spaces downtown serving patients, visitors, shoppers, and residents ~2,650 additional parking spaces at park-and-ride locations DMC TRANSPORTATION PRINCIPLES SUPPORTED BY PARKING •A park-once downtown environment •Shared-parking for economic development User Type Parking Demand Preferred Location Mayo Patient/Visitors 1,700 Within DMC District Downtown Visitors 2,400 Within DMC District UMR Students 400 Within DMC District Downtown Residents 3,300 Within DMC District Mayo Employees 6,500 Outside DMC District Non-Mayo Employees 2,200 Outside DMC District Total 16,500 Within DMC District Outside DMC District Outside District Preferred Location Phase 1 Years 2017-19 1,440 1,250 Remote Park and Rides Phase 2 Years 2020-24 2,180 1,960 Remote Park and Rides, Mobility Hub B Phase 3 Years 2025-29 2,410 2,600 Mobility Hub B, then A Phase 4 Years 2030-34 1,820 2,840 Mobility Hub A Total 7,850 8,650 16,500 PROJECTED DEMAND FOR NEW PARKING SPACES THROUGH 2035 (BASED ON BALANCED DMC DEVELOPMENT PROGRAM)PARKING AND TRANSIT IMPLEMENTATION TIMING OF NEW PARKING DEMAND (BASED ON BALANCED DMC DEVELOPMENT PROGRAM) Downtown Rochester Integrated Transit Studies J8614_INTEGRATED TRANSIT STUDY HYBRID SCENARIO-PHASING.INDD 02/05/2018 FOLWELL DR SW 10 ST SW ST. MARYS PLACE HEART OF THE CITY UNIVERSITY OF MINNESOTA ROCHESTER DISCOVERY SQUARE CIVIC CENTER 7 A V E S W FO X K N O L L D R S W 3 A V E N W 18 A V E S W 4 ST SE W S I L V E R L A K E D R 14 ST SW 16 A V E N W CI V I C C E N T E R D R N E 12 ST SE 14 ST NE 6 ST SE WE S T S I L V E R L A K E D R N E BR O A D W A Y A V E N CI V I C C E N T E R D R S E 6 A V E N W 2 ST NW 4 ST SW BRO A D W A Y A V E N 26 A V E N W 6 A V E S W CENTER ST E 14 ST NW 23 A V E S W CO R D 1 4 6 S E 16 ST SE W F R T G R D T H 5 2 N 7 ST NE CENTER ST W 8 A V E S E 13 ST NW 8AVESE 9 ST SE 9 A V E S W EL T O N H I L L S D R N W 6 ST SW 10 A V E S W GEO R G E G I B B S D R S W VA L L E Y H I G H D R N W 17 A V E S W 3 A V E S W 7 ST NW BR O A D W A Y A V E S 11 A V E N W 4T H A V E 3R D A V E 3R D A V E 11 T H A V E CIVIC CENTER DR 2ND ST SW 2ND ST NW 6TH ST SlatterlyPark SilverLakePark IndianHeights Park GooseEggPark ThompsonMillRace Cooke Park Kutzky Park St.MarysPark Central Park CascadeLake Park GrahamArenaComplex Mayo Field Park SoldiersMemorialField RochesterBikeTrail Graham Park MayoCivicCenter CROSSROADS DR SW MEMORIAL PKWY S W 16 ST SW SAL E M R D S W 12 ST SW ZumbroSouth Park Younge Park 1 4 A V E S W Plummer House Route 2 Circulator (Bus Rapid Transit) Potential Transit Stop 0 1,000 2,000 Feet LEGEND DMC Boundary Downtown Parking Outside DMC District Parking Areas Rochester Primary Transit Network (Bus Rapid Transit) TRANSIT ELEMENTS (needed to meet mode shift goals) SYMBOL DATA Route 1 Circulator (Bus Rapid Transit) 4,000 total parking spaces PARKING AND TRANSIT IMPLEMENTATION: OPTION A - PHASE 4 DMC District (7,850 new parking spaces) 2,000 total parking spaces Mobility Hub A Mobility Hub B New park and ride locations (2,650 new parking spaces) with express bus service and/ or PTN for access ~50% of new parking within DMC District to catalyze development ~75% ~of new downtown parking developed within the next 10-12 years 118 ROCHESTER INTEGRATED TRANSIT STUDIES TRANSIT CIRCULATION STUDY CITY LOOP STUDY STREET USE AND OPERATIONS STUDY PARKING AND TRANSPORTATIONMANAGEMENT AUTHORITY (TMA) STUDY CIRCULATOR SERVICE The Rochester Downtown Transit Circulator will provide a high quality bus rapid transit service for residents, commuters, businesses, patients, students, and visitors, supporting City of Rochester and DMC economic development and livability as well as livability goals. The BRT Transit Circulator will operate on two coordinated routes. PRIMARY TRANSIT NETWORK (PTN) - PHASE 2 STRATEGY 2020-2024 The PTN combines a high frequency transit network on Broadway Avenue and 2nd Street SW/4th Street SE/Collegeview Rd E with easy connection to downtown supporting employment recruiting and reducing the need for downtown parking. PTN service includes: •Convenient 15 to 20 minutes service to minimize waits and reduce schedule dependence •Speed and Reliability: service is on-time and competitive with the private automobile in connecting key destinations •Pre-boarding purchase or payment, which encourages quick station boarding •PTN will supplement Peak Hour express service from remote park and ride lots as well as mid-day and evening service to park and ridesNote: While BRT service is depicted here as running in the center of the street, center running versus side running BRT is to be determined. BUS RAPID TRANSIT (BRT) CONVENIENT AND RELIABLE •Frequent, all-day BRT service- no need for a schedule •Transit enhancements to ensure consistent travel times •Uniquely branded buses and stations making BRT easily identifiable COMFORTABLE •High amenity branded stations including: -Well designed, weather protected shelters -Real-time bus arrival information -Off-Board Fare Collection •Easy boarding and alighting for all passengers -BRT vehicles with multiple doors -Near-level boarding COST-EFFECTIVE AND FLEXIBLE •Same quality of service a lower cost than rail •Greater flexibility for implementation including phasing and extensions •Flexibility to evolve to autonomous bus technology in the future EMERGING TECHNOLOGY •The current BRT approach can accommodate autonomous vehicle and tram technology advances in the future. TRANSIT STRATEGY FOR DOWNTOWN ROCHESTER [VIDEO] Scan to watch BRT recommendation visualization or visit DMC Animation: https://vimeo.com/254512374 BRT DMC Simulation: https://vimeo.com/254521883 Password required for both videos: SRF2018DMC (all caps) DMC TRANSPORTATION PRINCIPLES SUPPORTED BY TRANSIT •Bring 30% of the workforce to downtown Rochester on transit •A park-once downtown environment •Transportation network accessible to all people 2 New BRT PTN Routes providing frequent all-day service on 2nd Street and Broadway Avenue 22,000+ daily rides will be served by the transit Circulator 18 Hours of Service BRT: reliable service every 10 minutes 2 New transit circulator routes connecting mobility hubs with key employment destinations 12 New BRT Stations to access PTN and transit circulator 119 FOLWELL DR SW 10 ST SW CROSSROADS DR SW MEMORIAL PKWY S W 16 ST SW SAL E M R D S W 12 ST SW ZumbroSouth Park Younge Park 1 4 A V E S W Plummer House Mobility Hub A Mobility Hub B DMC Boundary Transit Route 1 (Bus Rapid Transit) Transit Route 2 (Bus Rapid Transit) Potential Transit Stop LEGEND ST. MARYS PLACE HEART OF THE CITY UNIVERSITY OF MINNESOTA ROCHESTER DISCOVERY SQUARE CIVIC CENTER 7 A V E S W FO X K N O L L D R S W 3A V E N W 18 A V E S W 4 ST SE W S I L V E R L A K E D R 14 ST SW 16 A V E N W CI V I C C E N T E R D R N E 12 ST SE 14 ST NE 6 ST SE WE S T S I L V E R L A K E D R N E BR O A D W A Y A V E N CI V I C C E N T E R D R S E 6 A V E N W 2 ST NW 4 ST SW BRO A D W A Y A V E N 26 A V E N W 6 A V E S W CENTER ST E 14 ST NW 23 A V E S W CO R D 1 4 6 S E 16 ST SE W F R T G R D T H 5 2 N 7 ST NE CENTER ST W 8 A V E S E 13 ST NW 8AVESE 9 ST SE 9 A V E S W ELT O N H I L L S D R N W 6 ST SW 10 A V E S W GEOR G E G I B B S D R S W VA L L E Y H I G H D R N W 17 A V E S W 3 A V E S W 7 ST NW BR O A D W A Y A V E S 11 A V E N W 4T H A V E 3R D A V E 3R D A V E 11 T H A V E CIVIC CENTER DR 2ND ST SW 2ND ST NW 6TH ST SlatterlyPark SilverLakePark IndianHeightsPark GooseEggPark ThompsonMillRace Cooke Park Kutzky Park St.MarysPark Central Park CascadeLake Park GrahamArenaComplex MayoFieldPark SoldiersMemorialField RochesterBikeTrail Graham Park MayoCivicCenter DOWNTOWN TRANSIT CIRCULATOR ROUTES DMC DISTRICT SUPPORTED BY TRANSIT NETWORKS ROUTE 1 Phase 1 •Provides frequent all day, all week service from Mobility Hub A to St Marys, downtown Rochester, Government Center to Mobility Hub B. ROUTE 2 Phase 2 •Provides direct access to the Gonda Building from Mobility Hubs A and B and will reduce the number of buses on 2nd Street. •Provides direct access to Methodist Hospital and the future location of the University of Minnesota Rochester and other locations along 3rd/4th Avenue north/south corridor. FOLWELL DR SW 10 ST SW CROSSROADS DR SW MEMORIAL PKWY S W 16 ST SW SAL E M R D S W 12 ST SW ZumbroSouth Park Younge Park 1 4 A V E S W Plummer House DMC Boundary Transit Route 1 (Bus Rapid Transit) Potential Transit Stop LEGEND Mobility Hub A Mobility Hub B ST. MARYS PLACE HEART OF THE CITY UNIVERSITY OF MINNESOTA ROCHESTER DISCOVERY SQUARE CIVIC CENTER 7 A V E S W FO X K N O L L D R S W 3A V E N W 18 A V E S W 4 ST SE W S I L V E R L A K E D R 14 ST SW 16 A V E N W CI V I C C E N T E R D R N E 12 ST SE 14 ST NE 6 ST SE WE S T S I L V E R L A K E D R N E BR O A D W A Y A V E N CI V I C C E N T E R D R S E 6 A V E N W 2 ST NW 4 ST SW BROADWAYAVEN26AVE N W 6 A V E S W CENTER ST E 14 ST NW 23 A V E S W CO R D 1 4 6 S E 16 ST SE W F R T G R D T H 5 2 N 7 ST NE CENTER ST W 8 A V E S E 13 ST NW 8AVESE 9 ST SE 9 A V E S W ELTON HILLS DR NW 6 ST SW 10 A V E S W GEOR G E G I B B S D R S W VA L L E Y H I G H D R N W 17 A V E S W 3 A V E S W 7 ST NW BR O A D W A Y A V E S 11 A V E N W 4T H A V E 3R D A V E 3R D A V E 11 T H A V E CIVIC CENTER DR 2ND ST SW 2ND ST NW 6TH ST SlatterlyPark SilverLakePark IndianHeightsPark GooseEggPark ThompsonMillRace Cooke Park Kutzky Park St.MarysPark Central Park CascadeLake Park GrahamArenaComplex MayoFieldPark SoldiersMemorialField RochesterBikeTrail Graham Park MayoCivicCenter The Transportation Framework REVISED DRAFT 11/17/17 SECTION 2|LAND USE AND TRANSPORTATION FRAMEWORK 163 to the major northwest growth area of the city while also providing connections to all other quadrants of the city. Figure 2-13 highlights the locations of these corridors. FIGURE 2-13:PRIMARY TRANSIT NETWORK CONCEPT ROCHESTER INTEGRATED TRANSIT STUDIES PRIMARY TRANSIT NETWORK In order to provide Rochester residents better access to the DMC district, a Primary Transit Network (PTN) is proposed. The PTN will utilize a Bus Rapid Transit (BRT) system of enhanced infrastructure and integrate with the City’s overall transit system. Along the PTN corridors, land use and development policy and public infrastructure investment will be coordinated to create conditions favorable to transit oriented and mixed use development, resulting in conditions supportive of sustainable high frequency transit service. The PTN concept is further described in the City’s Comprehensive Plan, with phased construction of improvements expected to begin in 2019 with the reconstruction of North Broadway Avenue. ENHANCED LOCAL SERVICE Rochester Public Transit will expand service to a growing system of park and ride lots which circle Rochester. Local, fixed route service will look to grow ridership by adding new routes, expanding hours of service, and increasing, where wanted, the frequency of service. Local transit will supplement Bus Rapid Transit (BRT) service on the Primary Transit Network (PTN) to create a high frequency service spine that will facilitate travel to the DMC district and support the introduction of new crosstown connections or neighborhood circulator routes. REGIONAL COMMUTER SERVICE Motor coach service from surrounding communities will grow as demand is driven higher by as the DMC district workforce grows and talent is drawn to Rochester from greater distances. Private operators will invest in current routes and expand to new communities to meet the demand. Transportation demand management polices, and a newly formed Transportation Management Association (TMA) will incentivize use of this highly efficient mode. Proposed Primary Transit Network and Transit-Oriented Development Centers 120 ROCHESTER INTEGRATED TRANSIT STUDIES TRANSIT CIRCULATION STUDY CITY LOOP STUDY STREET USE AND OPERATIONS STUDY PARKING AND TRANSPORTATIONMANAGEMENT AUTHORITY (TMA) STUDY AN IMPROVED STREET NETWORK FOR ALL USERS 1 ST SW 15 A V E S W 16 A V E S W 10 A V E S W 4 ST SW17 A V E S W 6 ST SW BR O A D W A Y A V E S 21 A V E S W 20 A V E S W 19 A V E S W 18 A V E S W 9 ST SE 1 4 A V E S W 5 S T N E 4 ST NE 3 ST NE 2 ST NE 11 ST SE 2 ST NW 9 A V E S W 7 S T N E 8 A V E S W 3 S T S E 2 ST SW 1 ST NW 7 A V E S W 10 ST SE 7 AV E S E 6 AV E S E 5 AV E S E 4 AV E S E 8 A V E S E 4 ST NW 9 A V E N E 18 1 / 2 A V E S W 6 A V E S W 4 1/2 ST NW 11 A V E S E 10 A V E N E 9 1 / 2 S T S E 11 1/2 ST SE 10 1/2 ST SE 11 ST SW 3 ST SW 9 1/2 ST SE 10 1/4 ST SE 9 1 / 2 A V E S E 8 ST SW 9 ST SW 7 ST SW 5 ST SW 1 ST SE 1 ST NE 12 A V E S E 10 ST SW 9 A V E S E S K Y L I N E D R S W CENTER ST W 11 1 / 2 S T S W 5 ST NW 3 ST NW 5 A V E S W 4 A V E S W 2 A V E S W 3 A V E S W 1 A V E S W 6 ST NW 6 ST SE 5 ST SE 7 ST SE 8 ST SE 11 1/4 ST SW 6 ST NE 10 A V E S E 3 A V E S E SK Y L I N E L N S W 6 1/2 ST 2 S T S E 12 A V E S W 4 S T S E CENTER ST E 4 A V E N W 3 A V E N W WALDEN LN SW 1 A V E N W 7 A V E N W 8 A V E N W 6 A V E N W 5 A V E N W 12 A V E N W 13 A V E N W CIVIC CENTER DR NW 13 A V E S E 9 A V E N W PL U M M E R L N 22 A V E S W 19 A V E N W 18 A V E N W 23 A V E S W 1 A V E S E 2 A V E S E 16 A V E N W 11 A V E N E 8 1 / 2 S T S E 5 PL NW 10 1/2 ST S W 8 1 / 2 A V E N W TA R O L N S W KAL LN SW FOLWELL DR SW BR O A D W A Y A V E N SPEL L N S O L D I E R S F I E L D D R S W HILL PLACE SW H I C K O R Y L N BRITT LN LAD LN SW CENTER ST W 7 A V E S E 7 A V E S E 7 A V E S W 11 1 / 2 S T S E 4 ST NE 9 A V E S E 18 A V E S W 8 A V E S W 4 A V E S E 11 1 / 2 S T S W 5 S T S E 20 A V E S W 6 ST NW 4 ST NW 19 AVE SW 2 ST NW 3 ST NW 12 A V E S E 7 S T S E 4 ST NW 14 A V E S W 8 ST SW 3 ST SW 6 ST SW 6 A V E S E 11 ST SW 1 A V E S E 4 ST SE 7 ST SW 6 ST SW 7 S T N E 8 A V E S E 3 ST SW 2 ST N E 8 ST SW 5 ST SW 9 A V E S W 7 ST SW 5 ST N E 9 A V E S E 3 ST SW 8 ST SW 1 ST SW 17 A V E S W 1 7 A V E S W 9 ST SE 2 ST SW 6 ST SW 5 A V E S E 5 ST SW 2 ST NE 6 A V E S W 10 ST SW 6 A V E S E 8 A V E S E 6 ST SE 8 A V E S W 10 ST SE 10 1 / 2 S T S E 11 A V E S E SK Y L I N E D R S W 3 ST SW 2 ST SW 6 A V E S E 9 A V E S E 10 A V E S E LEGEND STREET TYPOLOGIES Transit Mobility Multimodal Main Street Pedestrian/Shared Neighborhood City Loop DMC Boundary DMC STREET TYPES: PREFERRED SOLUTIONS DMC TRANSPORTATION PRINCIPLES SUPPORTED BY STREET TYPOLOGY •Bring 30% of the workforce to downtown Rochester on transit •World-class streets, designed for people •Healthy, human-powered transportation •Transportation network accessible to all people Street types set priorities for movement of people, not just vehicles, and ensures that transit, cyclists and pedestrians are all provided safe and convenient access to and circulation through downtown. - Downtown Rochester Master Plan, 2010 Pedestrian-only & Shared Streets: The curbless design and cohesive paving materials allow for flexible usage ultimately catering to pedestrians and bicyclists. Main Streets: Streets cater to pedestrian movement and amenities while also accommodating automobiles. Mobility Streets: Design features accommodate high volumes of vehicles while still providing facilities for other modes. Multimodal Streets: Design features do not prioritize one mode over another, but strive to accommodate a variety of modes. Neighborhood Streets: Streets are designed for low volumes of slow moving traffic and are comfortable and inviting for play and leisure uses. Transit Priority Streets: Design elements and modal priorities are transit-oriented, while also being pedestrian-friendly. 121 ROCHESTER INTEGRATED TRANSIT STUDIES TRANSIT CIRCULATION STUDY CITY LOOP STUDY STREET USE AND OPERATIONS STUDY PARKING AND TRANSPORTATIONMANAGEMENT AUTHORITY (TMA) STUDY AN IMPROVED BICYCLE NETWORK Access to downtown is limited to a set of portals (entryways) that cross the barriers created by high volume, high speed roads, and the Zumbro River. Downtown Rochester is ringed by significant barriers that inhibit bicycle (and pedestrian) connectivity into and through downtown from surrounding areas. Connecting portals (entryways) with high quality pedestrian and bicycle corridors will enhance access into and across downtown. The bikeway network will connect bicyclists to downtown Rochester safely and comfortably from the City’s established shared use path network and other existing and planned bikeways outside of downtown. Both north-south and east-west bikeways through downtown will provide access to major downtown destinations. A BICYCLE NETWORK FOR ALL AGES AND ABILITIESBICYCLE PORTALS IMPROVE DOWNTOWN ACCESS Major roadways and Zumbro River are a significant barrier (red line) that limit access to downtown. DMC TRANSPORTATION PRINCIPLES SUPPORTED BY IMPROVED BICYCLE NETWORK •World-class streets, designed for people •Healthy, human-powered transportation •Reduce the ecological footprint of the City Higher degrees of user separation result in more comfortable facilities accessible to a broader category of people interested in bicycling. NOT PROPOSED Bicycle Access and Facilities Street Use & Complete Streets 32 Bikeway Facility Continuum The diagram below illustrates the spectrum of on street bikeway facilities from the least to greatest amount of separation between bicyclists and motor vehicle traffic. Typically, the higher degree of user separation results in a more comfortable facility accessible to a broader category of people interested in bicycling. Downtown Bicycle Connectivity Downtown Rochester is ringed by significant barriers that inhibit bicycle (and pedestrian) connectivity into and through downtown from surrounding areas. The barrier ring is generally composed of Civic Center Drive NW to the north, Highway 52 to the west, 12th Street SW to the south, S Broadway and the Zumbro River to the east. •Improving bicycle connectivity across these barriers is essential to promote cycling as a mobility option. Figure 15. Bikeway Facility Continuum Source: DMC City Loop Protected Bikeway Design Guide Standard Bike Boulevard TWO WAY OR ONE WAY PROTECTED BIKE LANE Raised and Separated. BIKEWAY FACILITY CONTINUUM Uphill: Buffered bike lane Downhill: Bike boulevard 122 ROCHESTER INTEGRATED TRANSIT STUDIES TRANSIT CIRCULATION STUDY CITY LOOP STUDY STREET USE AND OPERATIONS STUDY PARKING AND TRANSPORTATIONMANAGEMENT AUTHORITY (TMA) STUDY DMC TRANSPORTATION PRINCIPLES SUPPORTED BY CITY LOOP •World-class streets, designed for people •Healthy, human-powered transportation •Reduce the ecological footprint of the City •Transportation network accessible to all people 11th Avenue NW - North Facing: The City Loop runs through the Kutzky Park neighborhood as it connects Kutzky Park with 2nd St. SW and St. Marys Place. 6th Street SW - West Facing: The 6th St. SW segment provides access to Soldier’s Field park and trail facilities, the proposed University of Minnesota’s Rochester campus expansion and existing Zumbro River trails. Kutzky Park - East Facing: This City Loop segment transforms a portion of the existing park trail running along the north side of Cascade Creek into a branded, high amenity dual walking and cycling facility. 2nd Street NW - West Facing: The western portion of the City Loop’s 2nd Street NW segment travels through the Kutzky Park neighborhood as it provides connections between the DMC’s Heart of the City District, Kutzky Park and the Cascade Lake trail loop west of HWY 52. CITY LOOP A safe, healthy and enjoyable way to move to and through the DMC. 3rd Avenue SW - North Facing: As the City Loop travels along 3rd Avenue it runs through the DMC’s Heart of the City and Discovery Square districts and connects Mayo Clinic facilities to landscaped open spaces, including Central Park to the north and Soldier’s Field to the south. D o u g l a s T r a i l St. Marys Hospital Campus Heart of the City UMR Library Civic Center City Hall Discovery Square UMR/YMCA Soldiers Field FO X K N O L L D R S W 18 A V E S W MEMORIAL PKW Y S W 11 A V E N E 14 ST SW 16 A V E N W CI V I C C E N T E R D R N E FOLWELL DR SW 12 ST SE 14 ST NE 6 ST SE BR O A D W A Y A V E N 6 A V E N W 4 A V E N W 3 A V E S E 2 ST NW 4 A V E S W 4 ST SW 10 ST SW 4 ST S E CENTER ST E COU N T R Y C L U B R D W 14 ST NW 23 A V E S W 11 A V E N W F O X V A L L E Y D R S W 15 A V E N E M A R I O N R D S E W F R T G R D T H 5 2 N 7 ST NE 2 ST SW CENTER ST W 8 A V E S E 13 ST NW 9 ST SE 11 A V E S E 9 A V E S W CIVIC CENTER DR NW 8 1/2 ST SE 6 ST SW C O R D 2 2 S W 10 A V E S W 1 4 A V E S W GEO R G E G I B B S D R S W VA L L E Y H I G H D R N W 12 ST SW 17 A V E S W 5 ST NE T HWY 1 4 1 5 A V E S E 7 ST NW BR O A D W A Y A V E S East Park Cooke Park Kutzky Park Cascade Lake Park Homestead Park Soldiers Memorial Field Graham Park Existing and Planned Bicycle Facilities Per 2012 Rochester Area Bicycle Master Plan DMC City Loop 0 1/4 1/2 3/4 11/8 Miles¯City Loop Alignment Existing Bikeway Key Downtown Destinations Bikeway Portal Improvements DMC Boundary Interim City Loop Final City Loop Planned Bikeway The City Loop will be elevated and protected from motor vehicle traffic. Design VocabularyDesign Vocabulary 63 DMC City Loop | DRAFT - III. Preliminary Planning and Design Proposed 75’ ROW 75’ ROW varies varies varies 10’ pref. vehicle travel lanes enhanced walkway 6’ buffersidewalk buffer 12’ pref. bikeway 5’ buffer existing tree proposed tree 5'min w/ tree 3'min w/out 11'min 3'min w/planting 2'min w/out planting 9'min Proposed 75' ROW Section The 75 ft. ROW section shown above is a fairly common condition for streets on the City Loop alignment. The 75 ft. ROW has a 12 ft. bikeway and is separated from vehicles by a six ft. planted buffer. There is a ten ft. enhanced walkway with a five ft. buffer. This five ft. buffer could be used for plantings, green stormwater infrastructure, pedestrian seating, or a bike share station. See page 17 for enlargements of possible configurations of this area. Streets along the proposed City Loop where this section could be applied: • 3rd St NW, north side • 1st Ave NE, west side • 6th St SW, north side • 4th Ave SW, east side • 5th Ave NW, east side • 4th St NW, east side city loop 5' min w/ tree3' min w/out 11' min 9' min 3' min w/ planting2' min w/out Design VocabularyDesign Vocabulary 65 DMC City Loop | DRAFT - III. Preliminary Planning and Design 10’5’12’2’ shoulder 2’ shoulder buer enhanced walkway bikeway 10’1’12’2’ shoulder mountable curb enhanced walkway bikeway The off-street trail segments of the City Loop will be rebuilt with the same design vocabulary to provide a seamless, high quality experience as the on-street segments. There is a 12 ft. bikeway with two ft. compacted gravel shoulders on each side. Where space permits, a vegetated buffer for green stormwater infrastructure separates the enhanced walkway and bikeway. In constrained areas, the buffer will be reduced and the enhanced walkway will be elevated above the bikeway with a mountable curb. Trail with Buffer Trail without Buffer city loop city loop shoulder bikeway shoulderbuffer enhanced walkway 2'2' 5' 10'12' LOCATED ADJACENT TO STREET LOCATED IN PARKLAND CITY LOOP: A WORLD-CLASS PEDESTRIAN & BICYCLE URBAN TRAIL 6th st sw west facing kutzky park east facing 2nd ave nw west facing 3rd ave sw north facing 11th ave nw north facing 123 ROCHESTER INTEGRATED TRANSIT STUDIES TRANSIT CIRCULATION STUDY CITY LOOP STUDY STREET USE AND OPERATIONS STUDY PARKING AND TRANSPORTATIONMANAGEMENT AUTHORITY (TMA) STUDY INTEGRATED TRANSIT STUDIES - PHASE 1 INTEGRATED TRANSIT STUDIES - PHASE 2 INTEGRATED TRANSIT STUDIES: PHASES 1-2 Downtown Rochester Integrated Transit Studies J8614_INTEGRATED TRANSIT STUDY HYBRID SCENARIO-PHASING.INDD 03/08/2018 FOLWELL DR SW 10 ST SW ST. MARYS PLACE HEART OF THE CITY UNIVERSITY OF MINNESOTA ROCHESTER DISCOVERY SQUARE CIVIC CENTER 7 A V E S W FO X K N O L L D R S W 3 A V E N W 18 A V E S W 4 ST SE W S I L V E R L A K E D R 14 ST SW 16 A V E N W CI V I C C E N T E R D R N E 12 ST SE 14 ST NE 6 ST SE WE S T S I L V E R L A K E D R N E BR O A D W A Y A V E N CI V I C C E N T E R D R S E 6 A V E N W 2 ST NW 4 ST SW BRO A D W A Y A V E N 26 A V E N W 6 A V E S W CENTER ST E 14 ST NW 23 A V E S W CO R D 1 4 6 S E 16 ST SE W F R T G R D T H 5 2 N 7 ST NE CENTER ST W 8 A V E S E 13 ST NW 8AVESE 9 ST SE 9 A V E S W ELT O N H I L L S D R N W 6 ST SW 10 A V E S W GEO R G E G I B B S D R S W VA L L E Y H I G H D R N W 17 A V E S W 3 A V E S W 7 ST NW BR O A D W A Y A V E S 11 A V E N W 4T H A V E 3R D A V E 3R D A V E 11 T H A V E CIVIC CENTER DR 2ND ST SW 2ND ST NW 6TH ST Slatterly Park Silver LakePark IndianHeightsPark GooseEggPark ThompsonMillRace Cooke Park Kutzky Park St.MarysPark Central Park Cascade Lake Park GrahamArenaComplex MayoFieldPark Soldiers MemorialField RochesterBikeTrail Graham Park MayoCivic Center CROSSROADS DR SW MEMORIAL PKWY S W 16 ST SW SAL E M R D S W 12 ST SW ZumbroSouth Park Younge Park 1 4 A V E S W Plummer House D o u g l a s T r a i l Phase 1 (2015 - 2019) • New downtown parking (patient, visitor/residential) accompanies new development • New employee parking in new park and rides spread across town • New bikeways serving DMC core 0 1,000 2,000 Feet LEGEND DMC Boundary Bikeway Interim City Loop Shared Use Path SYMBOL DATA Downtown Parking 1,440 new downtown parking spaces 1,250 new parking spaces at new park and ride locations with express bus service PARKING AND TRANSIT IMPLEMENTATION: OPTION A - PHASE 1 Downtown Rochester Integrated Transit Studies J8614_INTEGRATED TRANSIT STUDY HYBRID SCENARIO-PHASING.INDD 03/08/2018 FOLWELL DR SW 10 ST SW ST. MARYS PLACE HEART OF THE CITY UNIVERSITY OF MINNESOTA ROCHESTER DISCOVERY SQUARE CIVIC CENTER 7 A V E S W FO X K N O L L D R S W 3 A V E N W 18 A V E S W 4 ST SE W S I L V E R L A K E D R 14 ST SW 16 A V E N W CI V I C C E N T E R D R N E 12 ST SE 14 ST NE 6 ST SE WE S T S I L V E R L A K E D R N E BR O A D W A Y A V E N CI V I C C E N T E R D R S E 6 A V E N W 2 ST NW 4 ST SW BRO A D W A Y A V E N 26 A V E N W 6 A V E S W CENTER ST E 14 ST NW 23 A V E S W CO R D 1 4 6 S E 16 ST SE W F R T G R D T H 5 2 N 7 ST NE CENTER ST W 8 A V E S E 13 ST NW 8AVESE 9 ST SE 9 A V E S W ELT O N H I L L S D R N W 6 ST SW 10 A V E S W GEO R G E G I B B S D R S W VA L L E Y H I G H D R N W 17 A V E S W 3 A V E S W 7 ST NW BR O A D W A Y A V E S 11 A V E N W 4T H A V E 3R D A V E 3R D A V E 11 T H A V E CIVIC CENTER DR 2ND ST SW 2ND ST NW 6TH ST Slatterly Park Silver LakePark IndianHeightsPark GooseEggPark ThompsonMillRace Cooke Park Kutzky Park St.MarysPark Central Park Cascade Lake Park GrahamArenaComplex MayoFieldPark Soldiers MemorialField RochesterBikeTrail Graham Park MayoCivic Center CROSSROADS DR SW MEMORIAL PKWY S W 16 ST SW SAL E M R D S W 12 ST SW ZumbroSouth Park Younge Park 1 4 A V E S W Plummer House D o u g l a s T r a i l Phase 2 (2020 - 2024) • New downtown parking (patient, visitor/residential) accompanies new development • PTN implementation fully underway • Park and Ride lots fill to capacity 0 1,000 2,000 Feet • New employee parking in Mobility Hub B area • DMC bikeway network expands west • First City Loop segments LEGEND DMC Boundary Rochester Primary Transit Network (Bus Rapid Transit) Bikeway Interim City Loop City Loop Shared Use Path SYMBOL DATA Downtown Parking Outside DMC District Parking Areas 2,180 new downtown parking spaces (3,620 total new spaces) 560 new parking spaces in Mobility Hub B 1,400 new parking spaces at new park and ride locations (2,650 parking space capacity reached) with express bus service and/or PTN for access PARKING AND TRANSIT IMPLEMENTATION: OPTION A - PHASE 2 Mobility Hub B 124 ROCHESTER INTEGRATED TRANSIT STUDIES TRANSIT CIRCULATION STUDY CITY LOOP STUDY STREET USE AND OPERATIONS STUDY PARKING AND TRANSPORTATIONMANAGEMENT AUTHORITY (TMA) STUDY INTEGRATED TRANSIT STUDIES - PHASE 3 INTEGRATED TRANSIT STUDIES - PHASE 4 INTEGRATED TRANSIT STUDIES: PHASES 3-4 Downtown Rochester Integrated Transit Studies J8614_INTEGRATED TRANSIT STUDY HYBRID SCENARIO-PHASING.INDD 03/08/2018 FOLWELL DR SW 10 ST SW ST. MARYS PLACE HEART OF THE CITY UNIVERSITY OF MINNESOTA ROCHESTER DISCOVERY SQUARE CIVIC CENTER 7 A V E S W FO X K N O L L D R S W 3 A V E N W 18 A V E S W 4 ST SE W S I L V E R L A K E D R 14 ST SW 16 A V E N W CI V I C C E N T E R D R N E 12 ST SE 14 ST NE 6 ST SE WE S T S I L V E R L A K E D R N E BR O A D W A Y A V E N CI V I C C E N T E R D R S E 6 A V E N W 2 ST NW 4 ST SW BRO A D W A Y A V E N 26 A V E N W 6 A V E S W CENTER ST E 14 ST NW 23 A V E S W CO R D 1 4 6 S E 16 ST SE W F R T G R D T H 5 2 N 7 ST NE CENTER ST W 8 A V E S E 13 ST NW 8AVESE 9 ST SE 9 A V E S W ELT O N H I L L S D R N W 6 ST SW 10 A V E S W GEO R G E G I B B S D R S W VA L L E Y H I G H D R N W 17 A V E S W 3 A V E S W 7 ST NW BR O A D W A Y A V E S 11 A V E N W 4T H A V E 3R D A V E 3R D A V E 11 T H A V E CIVIC CENTER DR 2ND ST SW 2ND ST NW 6TH ST Slatterly Park Silver LakePark IndianHeightsPark GooseEggPark ThompsonMillRace Cooke Park Kutzky Park St.MarysPark Central Park Cascade Lake Park GrahamArenaComplex MayoFieldPark Soldiers MemorialField RochesterBikeTrail Graham Park MayoCivic Center CROSSROADS DR SW MEMORIAL PKWY S W 16 ST SW SAL E M R D S W 12 ST SW ZumbroSouth Park Younge Park 1 4 A V E S W Plummer House D o u g l a s T r a i l Phase 3 (2025 - 2029) • New downtown parking (patient, visitor/residential) accompanies new development • Mobility Hub B fills to capacity • New employee parking in Mobility Hub A • Route 1 circulator constructed connecting Mobility area A, St. Marys, Heart of the City, Discovery Square, Civic Center, Government Center, and Mobility Hub B • DMC bikeway network continues to fill in • City Loop expands 0 1,000 2,000 Feet LEGEND DMC Boundary Rochester Primary Transit Network (Bus Rapid Transit) Bikeway Interim City Loop City Loop Shared Use Path Route 1 Circulator (Bus Rapid Transit) SYMBOL DATA Downtown Parking Outside DMC District Parking Areas Transit Stops 0 new parking spaces at new park and ride locations (2,650 parking space capacity reached) with express bus service and/or PTN for access PARKING AND TRANSIT IMPLEMENTATION: OPTION A - PHASE 3 2,410 new downtown parking spaces (6,030 total new spaces) 1,160 new parking spaces in Mobility Hub A 1,440 new parking spaces in Mobility Hub B (2,000 parking capacity reached) Mobility Hub A Mobility Hub B Downtown Rochester Integrated Transit Studies J8614_INTEGRATED TRANSIT STUDY HYBRID SCENARIO-PHASING.INDD 03/08/2018 FOLWELL DR SW 10 ST SW ST. MARYS PLACE HEART OF THE CITY UNIVERSITY OF MINNESOTA ROCHESTER DISCOVERY SQUARE CIVIC CENTER 7 A V E S W FO X K N O L L D R S W 3 A V E N W 18 A V E S W 4 ST SE W S I L V E R L A K E D R 14 ST SW 16 A V E N W CI V I C C E N T E R D R N E 12 ST SE 14 ST NE 6 ST SE WE S T S I L V E R L A K E D R N E BR O A D W A Y A V E N CI V I C C E N T E R D R S E 6 A V E N W 2 ST NW 4 ST SW BRO A D W A Y A V E N 26 A V E N W 6 A V E S W CENTER ST E 14 ST NW 23 A V E S W CO R D 1 4 6 S E 16 ST SE W F R T G R D T H 5 2 N 7 ST NE CENTER ST W 8 A V E S E 13 ST NW 8AVESE 9 ST SE 9 A V E S W ELT O N H I L L S D R N W 6 ST SW 10 A V E S W GEO R G E G I B B S D R S W VA L L E Y H I G H D R N W 17 A V E S W 3 A V E S W 7 ST NW BR O A D W A Y A V E S 11 A V E N W 4T H A V E 3R D A V E 3R D A V E 11 T H A V E CIVIC CENTER DR 2ND ST SW 2ND ST NW 6TH ST Slatterly Park Silver LakePark IndianHeightsPark GooseEggPark ThompsonMillRace Cooke Park Kutzky Park St.MarysPark Central Park Cascade Lake Park GrahamArenaComplex MayoFieldPark Soldiers MemorialField RochesterBikeTrail Graham Park MayoCivic Center CROSSROADS DR SW MEMORIAL PKWY S W 16 ST SW SAL E M R D S W 12 ST SW ZumbroSouth Park Younge Park 1 4 A V E S W Plummer House D o u g l a s T r a i l Phase 4 (2030 - 2034) • New downtown parking (patient, visitor/residential) accompanies new development • Mobility Hub A expands to meet remaining projected parking demand • Route 2 circulator constructed connecting Mobility Hub A, Methodist Campus, University of Minnesota Rochester and Mobility Hub B. Enhances connections to Heart of the City, and Discovery Square. • DMC bikeway network complete • City Loop complete 0 1,000 2,000 Feet LEGEND DMC Boundary Rochester Primary Transit Network (Bus Rapid Transit) Bikeway City Loop Shared Use Path Route 1 Circulator (Bus Rapid Transit) SYMBOL DATA Route 2 Circulator (Bus Rapid Transit)Transit Stops Downtown Parking Outside DMC District Parking Areas 0 new parking spaces at new park and ride locations (2,650 parking space capacity reached) with express bus service and/or PTN for access PARKING AND TRANSIT IMPLEMENTATION: OPTION A - PHASE 4 1,820 new downtown parking spaces (7,850 parking capacity reached) 0 new parking spaces in Mobility Hub B (2,000 parking capacity reached) 2,840 new parking spaces in Mobility Hub A (4,000 total parking spaces) Mobility Hub A Mobility Hub B 125 126 DMC Transportation Plan March 2018 Status Report & Next Steps 127 DMC Mission & Vision DMC Mission With Mayo Clinic at its heart, the Destination Medical Center (DMC) initiative will be the catalyst to position Rochester, Minnesota as the world’s premier destination center for health and wellness; attracting people, investment and jobs to America’s city for health and supporting the economic growth of Minnesota and its biosciences sector. DMC Vision To create the highest quality patient, companion, visitor and community resident experience. 128 DMC Priorities Heart of the City Discovery Square Transportation 129 Purpose of the Studies •Refine the vision of the DMC Transportation Plan •Rigorous study of the alternatives •Answer key questions: •What will fit in the available space? •Best, most cost-effective use of public dollars? •Public supportive of significant change? •Prepare for design, procurement, and access to state & federal funds 130 Scope 131 Where We Are Needs & Concept Development Full Alternatives Assessment Concept Design & Environmental Review Preliminary Engineering/ Design Detailed Design Procurement Construction Today DMC Development Plan April 2015 132 Key Findings •There is a need for a new transportation solution •Best solution is an integrated one •A combination of infrastructure and policies, programs, and incentives •Phased approach based on measurable demand triggers •Diverse funding is required 133 There is a Need EMPLOYMENT: Growth in the DMC District 62,400 35,250 VEHICLE TRIPS IN/OUT OF DMC DISTRICT 2010 204020152040 180,000 (projected*)~ *Projected vehicle trips in 2040 assuming implementation of DMC and Comprehensive Plan transit and land use programs.134 There is a Need Higher land use priorities Limited street capacity 135 There is a Need Do we agree… 1.Population and employment growth 2.Limited street capacity 3.Higher land use priorities Warrant a new transportation solution? 136 Best Solution is an Integrated Solution Transit Bikes Policies Cars Pedestrians Programs 137 Best Solution is an Integrated Solution TODAY 2040 TARGET Number of Daily Commuters: 35,250 Number of Daily Commuters: 62,400 138 Policies and Infrastructure Parking policies Developer policies Implementation Facility improvements Active transportation Transit programs Education Shared mobility Examples may include: •Improved wayfinding •Free transit passes •Trip planning & ride matching •On-site showers & bike parking •Guaranteed ride home Policies, programs, and incentives *A Transportation Management Association (TMA) is an organized body that facilitates and encourages alternate modes of transportation that are defined in a Transportation Demand Management (TDM) strategy.139 Policies and Infrastructure New Transit Services Infrastructure Integrated Mixed Use Park & Ride Facilities 140 Policies and Infrastructure Street Improvements Infrastructure New Walking & Biking Facilities 141 Policies and Infrastructure Do we agree… 1.Infrastructure alone won’t cause a mode shift 2.We should launch a TMA in Rochester 3.All types of users and modes should be accommodated 4.Increase bike and pedestrian network without reducing traffic lanes 5.Transit should be at grade, rubber-tired, and Bus Rapid Transit A combination of infrastructure and policies, programs, and incentives is required? 142 Phased Approach Based on Demand 55,000 new residents CURRENT 2022 3,000,000 4,000,000VISITORS: Rochester Comprehensive Plan Rochester Convention and Visitors Bureau 50,000 new jobsEMPLOYMENT:POPULATION: 2000 2015 2040 PROJECTED200020152040 PROJECTED 143 Phased Approach Based on Demand Do we agree… 1.That transportation program should be phased 2.That phasing metrics are based on population, employment, and visitor growth 3.Initial phasing and prioritization should be determined in 2018 A phased approach should be based on measurable demand triggers? 144 Diverse Funding is Required $1.2B Federal State County CityPrivate DMC Other 145 Diverse Funding is Required Do we agree… 1.Multiple sources of funding will be needed 2.We should develop a plan that allows us to pursue federal and state funding 3.We should engage with potential funders/developers at this stage of the project Diverse funding is required? 146 Key Findings 1.There is a need for a new transportation solution 2.Best solution is an integrated one 3.A combination of infrastructure and policies, programs, and incentives 4.Phased approach based on measurable demand triggers 5.Diverse funding is required 147 Moving Forward 1.All types of users and modes accommodated 2.Launch a TMA in Rochester 3.Increase bike and pedestrian network without reducing traffic lanes 4.Transit at-grade, rubber-tired, and Bus Rapid Transit 5.Initial phasing and prioritization determined in 2018 6.Engage with potential funders/developers at this stage of the project 148 Next Steps ActionPublic Discussion Now On-going City Council DMCC Board June Refinement 149 150 Metrics Dashboard © 2017 DMC 151 DMC Development Plan Goals © 2017 DMC Create a comprehensive strategic plan Leverage the public investment of $585 million Create approximately 30,000 new jobs Generate approximately $7.5 - $8.0 billion in new net tax revenue Achieve the highest quality patient, companion, visitor, employee, and resident experience 152 Goal 1. Create a comprehensive strategic plan. © 2017 DMC 2014-2015 DMC Development Plan UMR Campus Master Plan Sustainable Energy Options 2016 Discovery Square Project Plan Mayo Clinic Five-Year Plan Chateau Theatre proposal 2017 DMC District Design Guidelines Heart of the City Public Realm Saint Marys Place Public Realm 153 Goal 2. Leverage the public investment to attract more than $5 billion in private investment. 2015-2035 $585 Million Public $5.5 Billion Private Approximately 1:10 Ratio 154 Operating Costs and Public Infrastructure Spent and Committed 12% Mayo Clinic and Non Mayo Private Completed Investment 88% Total Public and Private Investment $489.3M DMC Public and Private Investment (2013-2017) Goal 2. Continued 155 © 2017 DMC $7M $39.3M $85.7M $107.2M $86M $20.5M $38M $45M -20,000,000 30,000,000 80,000,000 130,000,000 180,000,000 230,000,000 280,000,000 330,000,000 380,000,000 430,000,000 July - Dec 2013 Jan - Dec 2014 Jan - Dec 2015 Jan - Dec 2016 Jan - Dec 2017 Do l l a r s Mayo Clinic Investment Other Private Investment $428.7M $46.3M $152.5 M $297.7M Accumulative Total DMC Private Investment (Construction Costs Spent To Date) July-Dec 2013 Jan-Dec 2014 Jan-Dec 2015 Jan-Dec 2016 Jan-Dec 2017 Mayo Clinic Inv.$7M $39.3M $85.7M $107.2M $86M Non Mayo Private Inv.0 0 $20.5M $38M $45M Total Investment $7M $39.3M $106.2M $145.2M $131M Goal 2. Continued 156 Goal 2. Continued Secured Projects-approved, under construction or completed. % % % 10 yr. 20 yr.0 yr. 15 yr.5 yr. 157 © 2017 DMC PROJECT NAME 1 Residence at Discovery Square 11 Chateau Theatre 2 Titan-Opus Project 12 Heart of the City Public Space 3 Mortenson Project 13 Alatus 4 Associated Bank 14 Ronald McDonald House 5 Titan Hilton Hotel 15 501 on First 5a 1st Ave Parking Ramp 16 Conley-Maass Building 6 Bloom 17 Mayo Civic Center 7 Flats on 4th 18 Creative Salon Site 8 Lofts at Mayo Park 19 Extended Stay Hotel 9 Broadway & Center 20 Saint Marys Place 10 First Avenue Flats 21 Discovery Walk 13 14 1 3 15 16 2 7 817 6 4 12 11 5 9 10Goal 2 Continued 19 18 5a 20 21 No DMC Funding DMC Funding 158 Goal 2. Continued Private Development Progress Comparison to Anticipated Market Demand 159 Goal 3. Create approximately 30,000 new jobs. (1,500 jobs/year) Sources: DEED, Quarterly Census of Employment & Wages, Longitudinal Employer-Household Dynamics, U.S. Census Bureau 1,421 1,898 1,203 -294 160 Goal 4. Generate approximately $7.5 -$8.0 billion in new net tax revenue. $42.8M in net tax revenue has been collected since 2012. This is approximately 16% of our 20 year goal to net increase tax revenue to $271M. $64.5M in net tax revenue has been collected since 2012. This is approximately 30% of our 20 year goal to increase net tax revenue to $218M.161 Goal 5. Achieve the highest quality patient, companion, visitor, employee, and resident experience. 2011 2011 162 Goal 5. Continued Tools and programs designed to elevate the patient, companion, visitor, employee, and resident experience. Examples include: Tool / Program Experience Accreditation Program Rochester Now App Prototyping the Public Realm Qualitative/ Quantitative Approach Partner (s) RCVB Mayo Clinic & RCVB RDA, RAC RAEDI, Collider, Mayo Clinic Audience Visitors Visitors & Residents Community Entrepreneurs Entrepreneur Experience 163 164 Sustainability Update To: DMCC Board of Directors From: DMC EDA Staff Date: March 15, 2018 Overview: Kevin Bright, DMC EDA’s new Energy and Sustainability Director, started on March 6, 2017. His position is split between the DMC EDA and the City of Rochester where 80% of his time is with the EDA and the remaining 20% with the City. Over the past year, he has continued to meet with the City, community partners, environmental organizations and the Energy Integration Committee (EIC) on a variety of topics outlined below. Progress To-Date: o Individual Development Projects In order to clearly outline the expected environmental and energy outcomes of DMC projects, a draft Sustainable Building Policy has been drafted and reviewed with key stakeholders at the City, developers, EIC, and local and state-wide environmental organizations. As part of an update to the DMC Application, the environmental and energy outcomes expected for projects will be added. o DMC District District Energy – A draft process document has been created for individual projects to inquire about connecting to a downtown district energy system. Voluntary Commercial Energy Benchmarking – The EIC is moving forward with the launch of a voluntary commercial energy benchmarking program with several partners in the City and County. The City and County have combined their benchmarking data and the landing page for the program is being established. This program would be open to buildings both inside and outside the DMC District. o Culture of Sustainability In collaboration with local environmental and government commissions, the DMC launched a Sustainability Series in late 2017 meant to convene interested parties to learn more about a variety of environmental topics over lunch, once a month. This Lunch and Learn concept is meant to accomplish a few items: (1) connect those in the community working on environmental topics; (2) share best practices across disciplines; (3) cultivate new working relationships and collaborations; and (4) grow environmental awareness throughout the community. Thus far, presentations have covered the DMC sustainability goals, net zero building design in Minnesota, and Mayo’s methods to achieving their energy reduction goal. 165 166 Marketing & Communications Q4 2017 Update/2018 Preview 2017 DMC Marketing Plan Objectives: •Build awareness, gain national attention market to investors and developers and possible discovery square tenants •Demonstrate continued momentum •Drive traffic to DMC.mn - Build interest in life sciences and real estate developers/investor audiences •In Q4, in addition to brand awareness advertising, DMC allocated resources to test lead generation with a LinkedIn advertising campaign 2018 Objectives: 2018 goals: Support DMC development by driving qualified investor/developer, entrepreneur and life science leads through hyper-targeted digital strategies; keep DMC top-of-mind with key influencers and stakeholders. Target audiences include: investors, healthcare innovators, commercial real estate and life science professionals. Target markets include upper Midwest and select national markets. Website Sessions (Visit) Description Target Metric Current Metric Website sessions Q1-Q4 30,000-50,000/quarter or 10,000-15,000/month. 2018: Shifting to a targeted (qualified) audience of investors/developers/Discovery Square tenant prospects. Q1: 32,460 sessions Q2: 55,558 sessions Q3: 44,681 sessions Q4: 39,777 sessions 167 DMC.mn blogs/eNewsletters During Q4, 18 blogs were published on the DMC website. The blogs were also included in DMC’s six bi-monthly e-newsletters, which are sent to more than 3,000 email addresses. Earned media Q4 DMC-related media stories totaled 580 with an estimated media value of $2.98 million and estimated reach (impressions) of 332 million. Highlights for Q4 include: Discovery Square, Tina Smith, Look Ahead, Sustainability Series From Jan. 1, 2017 through Dec. 31, 2017, 2070 DMC-related media stories were tracked with an estimated media value of $8.22 million and estimated reach (impressions) of 889 million Source: Meltwater News Media Monitoring GEOGRAPHIC REACH Goal: Drive national traffic to DMC.mn by diversifying and growing audiences beyond Rochester and state of Minnesota Success Metric: Geographic reach 168 Description Target Metric Current Metric Geographic reach beyond Rochester 80% beyond Rochester Q1 = 79% Q2 = 85% Q3 = 86% Q4 = 84% Geographic reach beyond Minnesota 67% beyond Minnesota Q1 = 76% Q2 = 81% Q3 = 80% Q4 = 80% Marketing efforts to audiences beyond Rochester and Minnesota had great results in 2017. There is a need to reach out to investors/developers and possible Discovery Square tenants nationwide. Minnesota, specifically the Twin Cities, is also an important market. Current geographic reach includes about 75 cities across U.S. 2017 metrics show 80% of traffic is from beyond Minnesota compared to 70% in 2016. Top cities beyond Rochester in order of visits include: New York, Chicago, Minneapolis, Phoenix, Omaha, Atlanta, Charlotte, LA, Dallas, Philadelphia, Houston, San Francisco, Washington DC, Boston, St. Paul, Detroit, Denver, Seattle, Orlando, San Jose. Interest from these top 20 cities is likely due to targeted storytelling through blogs, social media and lead generation efforts SOCIAL MEDIA Goal: Gain social media followers Metrics: Followers, Engagement Organic growth continues to occur. A strategy is in place to post often and frequently. 169 •LinkedIn followers are growing rapidly. During Q4, DMC executed an investor lead generating campaign with impressive results: o 0.80% click through rate-twice the industry benchmark o 56 leads were generated, this was a rate of 11.05%-10x the industry average. DMC in the Community 170 TO: Jim Bier, Treasurer Kathleen Lamb, Attorney FR: Dale Martinson, Assistant Treasurer Date: March 14, 2018 RE: December 2017 and February 2018 Budget Summaries The attached summary for December 2017 reflects unaudited year‐end expenditures totaling $2,563,907 out of the 2017 total budget of $3,224,870. The total remaining 2017 budget represents 20% of the original budget remaining. Subsequent to year end, DMC EDA staff requested and received approval of a budget carryover encumbrance of $111,868.49 representing open contracts at year‐end on projects not yet completed. The second page of the December summary provides a listing of DMCC authorized projects managed by the City of Rochester. A total of $15.5 million was spent on these projects in 2017 with the largest share going to the construction of the Broadway @ Center Parking Ramp. The February 2018 summary is also provided following the December report with $175,898 spent to date with 94% of the total DMCC budget remaining. The February listing of DMCC projects managed by the City is also provided and reflects $838,613 spent to date in 2018. Again, much of this is spend on the ramp project with Transit and Street Use studies following close behind. Please feel free to contact me with any questions or concerns. 171 172 Destination Medical Center Corporation Financial Budget Summary December 2017 (Unaudited) 2017 Approved Curent Month Dec 2017 Amount Percent Approved Budget Dec 2017 Year To Date Remaining Remaining General Administrative Expenses 31,200 4,001 32,601 (1,401) ‐4% Professional Services 404,500 60,126 188,471 216,029 53% Insurance and Bonds 20,000 3,137 16,136 3,864 19% City Support Expenses 150,000 ‐ ‐ 150,000 100% Subtotal DMCC 605,700 67,264 237,208 368,492 61% Third Party Costs ‐ DMC EDA * Payroll, Staff, Administration & Benefits‐EDA 645,120 107,825 536,073 109,047 17% Operating Expenses 25,178 165,700 (165,700) ‐188% Operational Costs ‐ Contracted 88,000 20,293 65,421 22,579 3% Economic Development Outreach & Support 751,000 266,431 439,017 311,983 42% Professional Services 890,740 90,277 1,070,389 (179,649) ‐20% Miscellaneous Expenses 244,310 50,098 194,212 79% Subtotal EDA 2,619,170 510,004 2,326,699 292,471 11% Total DMCC 2017 3,224,870 577,268 2,563,907 660,963 20% DMCC Working Capital Note 1,000 EDA Working Capital Note 50,000 173 DMCC Projects Managed by the City of Rochester As of December 31, 2017 YTD Expenditures Project Budget Life To Date Expenditures DMC Projects (BU# 8600) 8611C- - Sn/S12AvSW/NW<2StSW>2StNW 99,440.70 2,850,000.00 107,631.07 8612C- - WZmbrRvrSn/SRlfLin<CookPk>CCDr 17,943.20 950,000.00 37,957.20 8613C- - ChateauTheatrePre-OccupancyM&O 79,031.51 686,800.00 198,506.13 8614C- - DMCTransit&InfrastrctrPgrmMgmt 521,067.95 1,100,000.00 1,144,161.13 8617C- - Broadway @ Center Parking Ramp 8,990,774.95 10,500,000.00 9,423,818.82 8618C- - SharedParkngStudy&PrgmDevlpmnt 821,824.55 1,811,854.00 1,273,658.38 8620C- - City Loop Plan 555,245.11 959,938.00 720,821.09 8621C- - Transit Circulator Study 939,557.99 1,991,532.00 1,298,008.99 8623C- - DMCC Street Use Study 1,536,027.12 2,867,708.00 2,095,695.57 8624C- - ChateauTheatreBldgImprov/Purch 118,929.69 6,748,528.51 8625C- - Heart of the City 427,431.25 598,940.00 598,936.42 8626C- - Sn/SUpsize1Av&3AvSE<4StS>1StN 1,401,166.82 2,500,000.00 1,441,486.50 Total DMC Projects (BU# 8600) Grand Total 15,508,440.84 26,816,772.00 25,089,209.81 174 Destination Medical Center Corporation Financial Budget Summary February 2018 2018 Approved Curent Month Feb 2018 Amount Percent Approved Budget Feb 2018 Year To Date Remaining Remaining General Administrative Expenses 41,200 2 7,924 33,276 81% Professional Services 294,500 294,500 100% Insurance and Bonds 20,000 11,041 11,041 8,959 45% City Support Expenses ‐ ‐ ‐ #DIV/0! Subtotal DMCC 355,700 11,043 18,965 336,735 95% Third Party Costs ‐ DMC EDA * Payroll, Staff, Administration & Benefits‐EDA 724,740 52,809 93,462 631,278 87% Operating Expenses 30,220 12,875 22,862 7,358 17% Operational Costs ‐ Contracted 43,880 1,179 1,179 42,701 6% Economic Development Outreach & Support 760,672 11,018 11,018 749,654 99% Professional Services 871,894 28,412 28,412 843,482 97% Miscellaneous Expenses 65,000 65,000 100% Subtotal EDA 2,496,406 106,294 156,933 2,339,473 94% Total DMCC 2018 2,852,106 117,336 175,898 2,676,208 94% 2017 Budget Carryover ‐ Encubered Contracts 111,868.49 ‐ 111,868.49 ** An additional MAP request in the amount of $130,394.33 was received in March for February expenses DMCC Working Capital Note 1,000 EDA Working Capital Note 50,000 175 DMCC Projects Managed by the City of Rochester As of February 28, 2018 YTD Expenditures Project Budget Life To Date Expenditures DMC Projects (BU# 8600) 8611C- - Sn/S12AvSW/NW<2StSW>2StNW 1,470.15 2,850,000.00 109,101.22 8612C- - WZmbrRvrSn/SRlfLin<CookPk>CCDr 950,000.00 37,957.20 8613C- - ChateauTheatrePre-OccupancyM&O 8,276.35 3,326,802.00 206,782.48 8614C- - DMCTransit&InfrastrctrPgrmMgmt 62,549.19 1,800,000.00 1,206,710.32 8617C- - Broadway @ Center Parking Ramp 342,268.00 10,500,000.00 9,766,086.82 8618C- - SharedParkngStudy&PrgmDevlpmnt 66,683.96 2,061,854.00 1,340,342.34 8620C- - City Loop Plan 59,640.80 1,209,938.00 780,461.89 8621C- - Transit Circulator Study 89,939.73 2,241,532.00 1,387,948.72 8623C- - DMCC Street Use Study 206,962.58 3,117,708.00 2,302,658.15 8624C- - ChateauTheatreBldgImprov/Purch 6,748,528.51 8625C- - Heart of the City 948,940.00 598,936.42 8626C- - Sn/SUpsize1Av&3AvSE<4StS>1StN 822.46 5,000,000.00 1,442,308.96 Total DMC Projects (BU# 8600) Grand Total 838,613.22 34,006,774.00 25,927,823.03 176