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Home My WebLink About11/19/2020 DMCC Board of Directors Meeting - PresentationDMC Corporate Board Meeting November 19, 2020 Consent Agenda DMC Development Plan Five-Year Update Requested Action Adopt the 5-Year update to the DMC Development Plan. •Why a 5-year update? •To tailor economic development strategies to market conditions •To account for how DMC catalyzed for economic growth from 2015-2019 •To gather community input •To meet requirements of State Law •What is included? •2015-2019 results •Plans for DMC Initiative from 2020-2024 (including COVID-19 impact analysis) 5 Year Update Overview Report on Phase 1 New Jobs Over 7,000 new jobs were created, and more than 80% of those jobs paid more than Rochester’s Area Median Income (which was $74,880 in 2018). New Investment Through 2019, public investments of $98M spurred private investment of $963M in Rochester’s DMC. New Tax Revenue The increase in jobs and investments have led to net new tax revenue ahead of projections at the end of 2019. Plans+Prototypes Major mobility and public realm planning and prototyping to tee up longer term projects to further economic growth and high-quality development. Transforming Experience At the heart of it all is DMC’s goal of becoming America’s City for Health –by building on Rochester’s history of care and innovation. Uses: Public Money ($98M) in 2015-2019 was committed to these 5 areas Strong Downtowns Build Strong Communities COVID -19 Impact Analysis Findings:Impact on DMC Phase 2 Plans Pre-COVID-19, Rochester had a growing economy. Development was largely aligned with demand. The full impact of COVID-19 is not yet fully understood, but findings indicate: •Downtown office space: Rochester will have excess capacity in due to job loss and growth in remote work •Retail and restaurants: those that depend on employees and visitors will be disproportionately affected •Hotels: experienced a precipitous drop in occupancy rates. With Rochester’s hotel pipeline, the market will continue to see occupancy rates below historical averages •Housing demand: remains relatively strong. Growth in downtown residential will help to support the core’s retail businesses Unlike natural disasters, this pandemic hit every city in the country. However, not all are developing recovery strategies. Despite significant losses, Rochester has fared better than other cities. Rochester is starting its recovery from a place of strength. Rochester had a robust and growing economy. The healthcare industry and Mayo Clinic provide stability during weak economies, and the city has the tools from DMC to support growth. Path Forward:Need to Remain Nimble Path Forward: Need to Remain Nimble Future economic development strategies should: 1.Support existing local businesses 2.Prioritize public infrastructure 3.Reuse excess real estate capacity creatively 4.Diversify the economy 5.Support development proactively Looking Forward Phase 2 (2020-2024):PRIVATE INVESTMENT Areas of focus: •Economic diversification •Housing affordability •Mainstreet innovation •Local entrepreneurs •Local minority and women-owned business capacity Phase 2 (2020-2024):MOBILITY •Rapid Transit initiative •Micro -mobility options •Systemwide enhancements •Experience Phase 2 (2020-2024):PUBLIC REALM •Public space as catalyst for economic development •Connection to neighborhoods •Innovative public space activation Phase 2 (2020-2024):STREETS & SEWERS •Generational investments •Complete Streets approach Phase 2 (2020-2024):Community Experience Addressing the aspirations of: Residents Businesses Patients Visitors Phase 2 (2020-2024):Use of DMC Funds DMC 2020 Progress Heart of the City Construction Wells Fargo Renovation Completion Hotel Indigo Ribbon Cutting Berkman Apartments Now Open Second Street Deep Utility Work and Completion CRAVE Grand Opening Painted Construction Barriers Provided by DMC The Hue Apartments in Discovery Square Now Open Construction Begins on Discovery Square 2 Path Forward: Need to Remain Nimble Future economic development strategies should: 1.Support existing local businesses 2.Prioritize public infrastructure 3.Reuse excess real estate capacity creatively 4.Diversify the economy 5.Support development proactively Requested Action Adopt the 5-Year update to the DMC Development Plan. Discussion Heart of the City Peace Plaza Updates •Construction-projected completion: July 2021 •Business Forward-efforts to assist neighboring businesses to continue to operate •Chateau Theatre-EDG will plan to reopen in the Summer of 2021 •Arcade at Peace Plaza-redevelopment concept under discussion Construction Timeline Updates Project Component Original Schedule Est. New ScheduleSecond Street Completion 09/28/2020 08/25/2020 (COMPLETE)First Avenue South 07/28/2021 07/01/2021 First Avenue North 08/20/2021 05/23/2021 Peace Plaza 08/13/2021 07/15/2021 Next Steps 1.Further analysis with City and Property Owner 2.Determine potential phasing options 3.Develop MOU for City Council and DMCC consideration 4.Report to DMCC board at February 2021 meeting Discussion Discovery Square Subdistrict Updates •Economic Development-Recruitment activities to pitch Discovery Square continue •Discovery Square 2-Construction has begun, tenant recruitment planning continues •One Discovery Square-90+% leased, discussions underway for remaining space •Entrepreneurship Activities-Medical Alley continues work to develop startup initiative in Rochester; DMC continues to participate in the SE MN E1 network •Residential and Retail-Three new residential and retail spaces are now complete •Discovery Walk-Design documents completed Requested Action Approve Discovery Walk design and authorize completion of construction documents and bidding. Discovery Walk //Timeline Discovery Walk //Connecting HoC to Zumbro River Discovery Walk //Local Community Co-Designers Discovery Walk //Local Artists Discovery Walk // Site Plan Design Features Discovery Walk //400 Block Discovery Walk // Metrics Existing Landscape Area Trees Social Space Seating Vendors 7,000sf 39 2,000sf 65lf 3 Proposed 38,700sf 313 38,000sf 1,300lf Up to 35 Requested Action Approve Discovery Walk design and authorize completion of construction documents and bidding. Discussion Transportation Transportation Strategy Mobility Update •Carshare Program –Hourcar •Bike -Share Program •Lime Scooter •Autonomous Vehicle Pilot •Transportation Management Association (TMA) •City Loop •Street Improvements Rapid Transit Circulator Timeline Discussion Bryk Apartments Location Development Overview •180 Apartment Units •7,000 –10,000 SF Commercial/Retail Space •143 Parking Stalls •Pedestrian Integration •High Amenity Mixed-Income Housing •Complements N. Broadway Improvements Tenant Amenities Included •Large Fitness Center •5th Floor Rooftop Gathering Space •6th Floor Library/Flexible Work from Home Space •Outdoor Garden and Patio Street Level •Covered Climate Controlled Parking DMC Goals Achieved •Workforce Housing •TOD and DMC Zone, improving blighted site •Neighborhood Stabilization and Revitalization –timed with North Broadway Improvements •Increase Tax Base •Commercial/Retail Integration •Designed to meet Sustainable Goals Workforce Housing Goals ~20% Units @ 50% AMI (36) ~20% Units @ 60% AMI (36) ~60% Units @ or below 80% AMI (108) UNIT MIX Studio 41 1 BR 115 2BR 24 TOTAL 180 DMC EDA Updates Gov. Center Waterfront Small Area Plan Waterfront Small Area Plan Project Details and Timeline: •Purpose:prepare a collaborative, community-driven plan that represents a shared vision for the future of the project area (60+ acres) •Project Committee made up of community stakeholders (includes DMC) •Background & Analysis-Completed summer 2020 •Vision & Framework-Completed fall 2020 •Small Area Plan-Estimated to be completed early 2021 COVID Organizational Response Reopening and Recovery Support Initiatives include: •Cash Grant Programs: (CARES, Keep it Local, Small Business Support) •Business Operations: (Outdoor patios, Liquor license,Free Parking, Utility Fees ) •Business Support: (Training and promotion programs) More than 800 businesses have received direct support through these programs.