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Home My WebLink About11/12/2019 DMCC Board of Directors Meeting - PresentationDMC Corporation Board Meeting November 12, 2019 Metrics Update DMC GOALS 1.Comprehensive Strategic Plan 2.Attract Private Investment 3.Create Jobs 4.Generate Additional Net Tax Revenue 5.Become the Destination for Health & Wellness CITY OF ROCHESTER DMC TARGETED BUSINESS AND WORKFORCE PARTICIPATION •Goals •Successes and Shortcomings •Strategic Opportunities DMC MINNESOTA STATUTES 469.44 A. Subd. 6. American made steel. B. Subd. 7. Goals for construction contracts must be established in the manner required under the city’s minority and women-owned business enterprises utilization plan. CITY OF ROCHESTER, MINNESOTA DESTINATION MEDICAL CENTER TARGETED BUSINESS ENTERPRISE UTILIZATION PLAN A. To provide businesses owned by minority, women, veterans and disabled persons an opportunity to participate in DMC public infrastructure construction and contracting. B. To promote increased participation in workforce employment opportunities for women and minorities. •Targeted Business (TB): 4 %of the total construction value •Workforce Participation (hours): 4 %for minorities and 6 %for women. TARGETED BUSINESS & WORKFORCE PARTICIPATION GOALS 1.Parking Ramp #6 2.Berkman Apartments 3.The Maven on Broadway 4.One Discovery Square 5.4th St SW Reconstruction 6.Hyatt House 7.Wells Fargo Renovation 8.Hotel Indigo Renovation 9.Chateau Theatre Improvements 10.Replace/Upsize Sanitary Sewer 11.6th & 7th Avenue Reconstruction DMC CONSTRUCTION PROJECTS (APRIL 2017-AUGUST 2019) Goal:4 % Construction Result*: 6.5 % Professional Services & Construction Administration Result*: 5.2 % TARGETED BUSINESS (TB) RESULTS (APRIL 2017 –AUGUST 2019 CUMULATIVE) Goals:Women: 6 %Minorities: 4 % Construction Results:% of Total Hours Women 3.9 % Minorities 12.7 % Professional Services & Construction Administration Results:% of Total Hours Women 32.8 % Minorities 6.5 % WORKFORCE PARTICIPATION RESULTS (APRIL 2017 –AUGUST 2019 CUMULATIVE) PREVAILING WAGE The minimum hourly wage employers must pay certain workers who work on construction projects where state dollars are used to fund the construction. The average base hourly pay rate for construction workers on DMC Construction projects was $39.11 plus fringe benefits. This is an average annual salary of $80,000/year plus benefits.(April 2017-June 2019) Construction workers residing in zip codes 559XX (around Rochester) earned $13,268,719 (54%) of wages paid on DMC projects. (April 2017-June 2019) •M.A. Mortenson awarded 17 %($3.4 million) of One Discovery Square contracts to Targeted Businesses. •Construction work performed by minorities:12.7 %(goal 4 %). •Professional Services & Construction Administration work performed by women: 32.8 %(goal 6 %). •Providing employment for trades workers in Minnesota, regionally and across the U.S. •Paying livable wages KEY TAKEAWAYS •Southeastern Minnesota has a low number of certified women, minority, veteran or small subcontractors. •Shortage of women in workforce on construction projects. •National shortage of skilled-trades workers. CHALLENGES •Build capacity of Targeted Businesses located in southeastern Minnesota. •Evaluate alignment of City of Rochester DMC Construction Workforce Participation with Minnesota Department of Human Rights goals for Southeast Minnesota. •Promote trade careers to under-employed, women, minorities and youth. •Learn best practices for recruiting and training workforce. STRATEGIC OPPORTUNITIES 2019-2020 BUILD TARGETED BUSINESS CAPACITY 2019 Progress Welcomed National Association of Minority Contractors –June 2019 Initiated Rochester Area –Construction Small Business –Collaboration, August 2019 2020 Plans Assess gaps with existing subcontractors to determine market opportunity. Recruit women and minorities from workforce to work as independent contractors and start their own companies. Host workshops to educate entrepreneurs, provide consulting services for WMBVE certification process and assist with bid process to win contracts on DMC projects. Current DMC Minority Goal: 4 %Result: 12.7 %. Compare with Minnesota Department of Human Rights goal in SEMN for People of Color*: 15 %. Evaluate moving toward MN Department of Human Rights goal realizing some minorities are being met while others are not. EVALUATE WORKFORCE PARTICIPATION GOAL Cure. Connect. Transform. Adam Brase, Planning Services –Strategic Intelligence No industry stays the same. Health care is on the precipice of significant change and Mayo Clinic is prepared to lead. To do so, we will cure, connect and transform the future of health care. Mayo Clinic 2030 Consistent 2030 themes CONSUMERISM AI INNOVATION ECONOMIC DOWNTURNBIG TECH DISRUPTION CYBER SECURITY JOB LOSSES UNAFFORDABILITY SOCIAL DIVISION INNOVATION ACCELERATION So what does this say? •Disruption is hard to time and will likely present as a collection of variables. •We may not see it until it’s too late •People are adaptable and that’s a risk •Banking, Hospitality, Retail and Education provide clues. •Consumerism + Outdated Business Models + Fragmentation + $ Opportunity = Risk of Disruption •Timing of major disruption is of short •Must develop capabilities to adapt 2030 Strategic Plan Forces of Change Accurate diagnosis — anywhere, anytime 1 The patient will see you now Virtual interactions Research, education and collaborations accelerate cures Old business models become obsolete 2 3 4 5 Mission Inspiring hope and promoting health through integrated clinical practice, education and research Vision Transforming medicine to connect and cure as the global authority in the care of serious or complex disease Identity Delivering an unparalleled experience with the most trusted clinical expertise and knowledge. Who we become Build on our differentiators: •Brand and reputation •Human touch (patient experience) •Clinical expertise •Discover, translate, apply •Integrated care model Develop new capabilities: •Consumer and market knowledge •Partnerships and acquisitions •Pace –speed to execution •Data and innovation to drive change •Technology How we respond 2030 Strategic Plan Cure Connect Transform People, Innovation and Environment 2030 Strategic Plan Three key features Cure Connect Transform Mayo Clinic will differentiate itself through the discovery, delivery and diffusion of the next generation of diagnosis, treatment and cures. Mayo Clinic will create digital care delivery capabilities with a human touch and virtually integrate our care to create a system that is more accessible, scalable and affordable. Mayo Clinic will transform healthcare through platforms, leveraging data and technology to redefine health care. When successful, Mayo Clinic will possess a new strategic identity. One that not only defines itself by the patients it sees, but also by the people it serves. One that is behind the health care answers people routinely consume, and one that can answer the most serious challenges. Its physicians and care teams are accessible, empowered and joyful in their work fulfilling our mission. Mayo Clinic 2030 Heart of the City 2016 2017 2018 2019 2020 2021 2022 Schematic Design ………………… Final Design ……………………………………………………………. Construction Bid ……………………………………………………………………………………….. Construction …………………………………………………………………………………………………………. Project Timeline We Are Here Schedule •Approval of 2020 CIP: October 18, 2019 •Completion of “Business Forward” construction documents: November 2019 •Project bidding: December 2019 –January 2020 •Project construction: 2020-2021 •Business support strategies in place and operational Business Forward Strategy Minimizes construction disruption by focusing on: Accessibility & Safety Communications Activation & Programming Heart of the City Public Art Chateau Theatre Update Discovery Square One Discovery Square Recent Activities •RION •BioSig •Collider Foundation •Vyriad •Two Discovery Square 2019 2020 2021 Demonstrations …………………………………………...................... CIP Approved ……………………………………………………………………………. Design Reconciliation …………………………………………………………………………. Design & Construction Documents ………………………………………………………………….. Discovery Walk Timeline We Are Here Construction Bid ………………………………………………………………………………………………………………………………………… Construction ………………………………………………………………………………………………………………………………………………………. Transportation Mode Shift –Reducing Single Occupancy Vehicles Today 35,250 Daily Commuters 2040 Target 62,400 Daily Commuters Transportation Initiatives •Park & Ride •Car Sharing Program •Bike & Scooter Sharing •City Loop –Pedestrian / Bike •Downtown Parking Strategy •Arrive Rochester (TMA) •Transit Circulator Recent Decisions •Route-Broadway •Mode-High Amenity Rapid Transit •Transit Villages-Affordable Housing •Prepare for FTA Application-2020 Today 2019 2020 2021 2022 2023 2024 2025 Submit Project for Potential Future Federal Funding (Entry Letter) 11/15/2019 Begin Engineering Development & Environmental Review 12/16/2019 Submit Project for Federal Funding (Small Starts Application) 9/4/2020 Obtain Environmental Clearance 6/2/2021 Federal Funding Obtained (Grant Agreement) 3/22/2022 Begin Construction 7/5/2022 Begin Transit Service 3/3/2025 Transit Circulator Timeline 2019 Nov 2020 Boundary Modification Circulator Branding FTA 2020 Transit Circulator Timeline 2021 Jan Mar May July Sep Nov Transit Villages ROCOG Update Engineering, Environmental & Historical Evaluations Draft Prep Small Starts App AgreementsSite Plans Operations Agreement Affordable Housing Affordable Housing 2019 DMC EDA Workplan Objectives Objective A: Strategy Development 1.Current progress and needs 2.Identify high-potential parcels in the DMC District 3.Confirm opportunities available to DMC 4.Leverage community partners 5.Continue to engage in community activities related to a workforce housing strategy 6.Develop and share goals for DMC District units of affordable and senior housing Objective B: Project Development 1.Attract/recruit affordable housing developers to DMC District and Rochester market 2.Partner with the City to evaluate opportunities for property within the DMC District 3.Coordinate activity with other priorities and plans 4.Identify and leverage public and private partners 2019 DMC EDA Workplan: Progress to Date 1.Strategy Development •Maxfield Study Update •Parcel Analysis •Housing Coalition participation 2.Project Development •Met with five entities interested in developing affordable housing since early 2019 •Real Estate Summit •Parking Ramp 6 •Transit-Oriented Development Study CommonBond •Non-profit affordable housing developer •High-rise construction •Number of units and rents: •127 units –13 studio •76 one bedroom •38 two bedroom •Rents between 30%-80% AMI •Income averaging approach •Anticipated Completion Schedule: Early 2023 DMC Development Plan Five Year Update Legislative Requirements •Must be updated every five years •Outline DMC’s plan for public and private development •Afford maximum opportunity for private development •Conform to city comprehensive plan •Include research/tech, learning, hospitality, recreation, livability, RDE, & health plans •Provide framework to identify and prioritize public investment •Include land use, transportation operations, and market research information •Complement/address State and local objectives •Understand fiscal and economic impacts 2015-2019 Planning Efforts •DMC: Integrated Transit Studies, Heart of the City, Discovery Walk, Saint Marys Place, Design Guidelines •Mayo Clinic: 2017-2022 Capital Plan, 2030 Strategy, Discovery Square •City: Comp. Plan, TOD Zoning •Olmsted County: Graham Park Master Plan What We Have Heard… •Keep the plan understandable and succinct •Demonstrate progress toward current plan goals •Don’t create another plan Proposed Update •Focus on the Implementation Strategy for 2020-2025 •Mobility •Public Realm •Streets and Sewers •Private Development •Operating Model •Refer to complementary/existing documents Additional Content •Resiliency/Climate •Data Policy/Strategy •Affordable Housing •Equity + Inclusion •“Future-proofing” strategy November 2019 May 2020 November 2020 Today …………………………..... Scope Refinement ………………... Plan Update ………………………………………. DMCC reviews plan & submits to City .………………………………….. Timeline City public comment period and plan adoption ……………………..…… DMCC adoption of plan ..……………………………………………………………………………. September 2020 January 2020 DMC EDA Update City of Rochester is soliciting statements of interest (SOI) on the City-owned property. DMC EDA staff have informed potential developers of this opportunity. Riverfront Re-Imagined University of Minnesota and Rochester YMCA issued an RFP to develop new/additional space for both entities. DMC EDA coordinated regular meetings between community leaders prior to the issuance of the RFP. University of Minnesota and YMCA “When in Rochester” App •DMC Goal: Ideal community member, patient and visitor experience •Mayo Clinic +Destination Medical Center +Experience Rochester •Launched: October 7, 2019 DMC Corporation Board Meeting November 12, 2019