HomeMy WebLinkAbout3/26/2020 DMCC Executive Committee Meeting - Agenda and Meeting PacketDestination Medical Center Corporation
Executive Committee Meeting
Thursday, March 26, 2020
9:30 A.M.
DMC EDA
Rochester, Minnesota
1
DESTINATION MEDICAL CENTER CORPORATION
EXECUTIVE COMMITTEE
March 26, 2020
9:30 A.M.
AGENDA
PAGE
I.Call to Order
II.Roll Call
III.Approval of Agenda
IV.Approval of Minutes: March 21, 2019
V.Coronavirus Pandemic: Discussion
VI.April 1 Report to DEED
(Presenters: Lisa Clarke, EDA;
Doug Holtan, Mayo Clinic; Terry Spaeth, City)
Resolution No. EC-6-2020:
Authorizing April 1 Report to DEED Pursuant to Statute
VII.EDA: Five Year Development Plan Update
VIII.Other
IX.Adjournment
2
DESTINATION MEDICAL CENTER CORPORATION
EXECUTIVE COMMITTEE
March 21, 2019
9:30 A.M.
MINUTES
I. Call to Order. Vice Chair Kim Norton called the meeting to order at 9:30 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 Mayor Kim Norton and Commissioner Jim Bier. Chair R.T. Rybak
participated via telephone.
III. Approval of Agenda. Commissioner Bier moved approval of the agenda. Vice Chair Norton
seconded.
Ayes (2), Nays (0). Motion approved.
IV. Approval of Minutes: February 1, 2018. Commissioner Bier moved approval of the Minutes
from February 1, 2018. Vice Chair Norton seconded.
Ayes (2), Nays (0). Motion approved.
V. April 1 Report to DEED
Resolution No. EC-5-2019: Authorizing April 1 Report to DEED Pursuant to Statute
Lisa Clarke, DMC Economic Development Agency Executive Director, described the April 1
Report to DEED, noting that the private investment figures reflect the commitment of the
community, the work and engagement from DMC partners, and the success of the DMC
economic development model. The report summarizes qualified DMC investments made by
Mayo Clinic throughout the City of Rochester and non-Mayo-Clinic private investment in the
DMC development district. The 2018 private investment total of more than $262 million
represents the largest-ever single-year total for both Mayo Clinic and non-Mayo investment
and brings DMC’s cumulative private investment total to more than $690.5 million. This private
investment should trigger the release of approximately $13.5 million in State DMC
infrastructure support.
Terry Spaeth, Assistant City Administrator, briefly described the non-Mayo Clinic private
investments, including $50.4 million invested in the Hilton hotel, $13 million invested in One
Discovery Square, and $26 million invested at the Berkman apartment complex. Several other
developments, including Residence at Discovery Square, the Ronald McDonald House, and
the addition of a downtown childcare center at Christ United Methododist Church, all
contributed to the total.
Mr. Spaeth noted that current practices for tracking non-Mayo investment allow staff to capture
only construction permit costs, and that staff are evaluating ways to capture the total costs of
development for future reporting.
3
Doug Holtan, Mayo Clinic Facilities and Support Services Chair, described Mayo Clinic’s
annual investment, which totaled approximately $126.5 million. Mr. Holtan noted that this
DMC-qualified investment represents just a portion of Mayo’s 2018 investment in Rochester,
which totaled nearly $274 million.
Commissioner Bier moved approval of the resolution. Mayor Norton seconded.
Ayes (2), Nays (0). Motion approved.
VI. EDA: Request for 2018 Budget Encumbrance. Commissioner Bier described the EDA’s
request, noting that $131,000 would be encumbered to complete design of the experience
mobile application and transit village schematic design. Commissioner Bier moved approval.
Mayor Norton seconded.
Ayes (2), Nays (0). Motion approved.
VII. Other.
VIII. Adjournment. Commissioner Bier moved to adjourn. Mayor Norton seconded.
Ayes (2), Nays (0). Meeting adjourned.
1199050-2.DOCX
4
Destination Medical Center
Economic Development Agency
Report to DEED
DMCC Executive Committee Materials
Table of Contents
Page 8: Summary Memo from DMC EDA
Page 9: Resolution authorizing the DMCC Chair or Treasurer to submit the report
Page 11: Certification of Expenditures form
Page 13: Summary sheet of 2019 Non-Mayo-Clinic private investment
Page 15: Construction permits opened in 2017 and completed in 2019
Page 16: Construction permits opened in 2018 and completed in 2019
Page 18: Construction permits opened in 2019 and completed in 2019
Page 21: Letter from Mayo Clinic to MN DEED
7
Destination Medical Center
Economic Development Agency
MEMO
TO: Destination Medical Center Corporation
FROM: Destination Medical Center Economic Development Agency
RE: 2019 DMC PRIVATE INVESTMENT
By April 1 of each year, the DMC Corporation must report DMC private investment to the State
of Minnesota. The State of Minnesota uses this information to affirm the success of the DMC
initiative and determine the required amount of annual State DMC funding. This productive
reporting relationship is one aspect of the unique DMC economic development model. The
formal report follows this summary memo.
2019 was another record-setting year for the DMC initiative
1.Cumulative private investment: $272 million, a new annual record
2.Mayo Clinic private investment: $139.1 million, a new annual record
3.Non-Mayo-Clinic private investment: $133 million, the second consecutive year of more
than $100 million in non-Mayo-Clinic downtown investment
Private investment in 2019, and in previous years, demonstrates the positive market response
generated by DMC’s economic development, marketing and business development, workforce
and entrepreneurism, community engagement, experience, sustainability and resiliency, and
transportation strategies.
As we acknowledge 2019’s successful private investment figures, we are aware of the
challenges before us with the COVID-19 pandemic. We are currently evaluating all of DMC’s
tools and resources and collaborating with business and community organizations to support
and assist. We remained focused on growing the Rochester, regional and Minnesota
economies. We look forward and appreciate your feedback as we navigate through this
unprecedented time.
8
DESTINATION MEDICAL CENTER CORPORATION
EXECUTIVE COMMITTEE
RESOLUTION NO. EC-6-2020
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, 2020, attached
hereto as Exhibit A.
RESOLUTION
NOW, THEREFORE, BE IT RESOLVED, by the Executive Committee of 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.
1199055.DOCX
9
EXHIBIT A
10
$139,126,160.79 1
$133,004,080.65 2
$272,130,241.44 3
$690,664,413.37 4
$272,130,241.44 5
All Claimed Expenditures as of 12/31/19 (Box 4 plus Box 5)$962,794,654.81 6
Qualified Expenditures claimed in 2019 (Box 6 minus $200,000,000) $762,794,654.81 7
$20,976,853.01 8
$3,432,575.95 9
For Expenditures By the Medical Business Entity:
Mayo Clinic Chief Financial Officer Date
For all other Expenditures:
Destination Medical Center Corporation Date
1 Expenditures need to be after June 30, 2013
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 Entity 1
Total Expenditures Reported This Year for other Private Entities1,2
TOTAL Expenditures This Year
Previous Years Expenditures (cumulative)
By providing my signature below, I am hereby certifying that, to the best of my knowledge, 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
TOTAL Expenditures This Year (from Box 3)
2 Other Private Entities' certification of expenses may be certified retroactively in 2014 after the Destination Medical
Center District and Development Plan are adopted. This figure is based solely upon project building permit costs. Minn.
Stat. § 469.47, subd 1(d) permits additional expenditures, and discussion is underway as to how to document such
additional expenditures, which may result in adjustments.
Form Revised 03/16/2020
1199955.pdf
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 2019,
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 2019
DR
A
F
T
11
12
2019 Tracking Worksheet
Building Permits within the DMC Boundary
(Does not include Mayo Projects)
Completed
Year Projects
2017 2,050,000.00$
2018 7,748,655.00$
2019 5,662,402.00$
TOTAL 15,461,057.00$
2018/2019 Destination Medical Center ‐ Partially Completed Projects Tracking
2018 2019
Project Address Total Building Permit Value
Partial Completed Work
Claimed Completed Work Claimed
Ronald McDonald House 850 2nd Street SW 10,126,000.00$ 4,872,363.01$ 5,253,636.99$
Hotel Indigo (Holiday Inn) 220 South Broadway 10,500,000.00$ 1,156,333.15$ 9,343,666.85$
Residence @ Dis. Sq.511 3rd Ave. SW 19,000,000.00$ 9,820,880.09$ 9,179,119.91$
Urban on First 429 South Broadway 30,808,958.00$ 12,455,954.00$ 18,353,004.00$
Berkman (Alatus) 217 & 301 14th Ave SW 93,315,800.00$ 25,936,546.00$ 59,063,337.00$
163,750,758.00$ 54,242,076.25$ 101,192,764.75$
2019/2020 Destination Medical Center ‐ Partially Completed Projects Tracking
2019 2020
Project Address Total Building Permit Value
Partial Completed Work
Claimed Completed Work Claimed
Ryan/Wells Fargo 21 1st SW 5,250,000.00$ 5,250,000.00$
Hyatt House 315 1st Ave. NW 32,253,475.00$ 6,940,448.00$
Eleven02 101 11th Ave. SW 30,255,765.00$ 4,159,810.90$
67,759,240.00$ 16,350,258.90$ ‐$
TOTAL 133,004,080.65$
13
14
2017 Building Permits
COMPLETED/PARTIAL BUILDING PERMITS
(Within DMC Boundary, does not include Mayo Projects)
Sub Type Level Category Level Permit Number Permit Issue
Date
Within DMC
Boundary
Parcel
Number
Address Info Permit Valuation Work Description Mayo
Project
Lic Prof Owner Current Permit
Status
Current Permit
Status Date
Commercial Bldg Alteration R16-0348CB 2/23/2017 Yes 082430 206 S BROADWAY AVE,
ROCHESTER, MN 55904
$2,050,000 Alterations of phase 1B for offices on 5,
6,7 levels only and roof top chiller
(Associated Bank)
No ALVIN E BENIKE, INC
AARON E BENIKE
2960 W Hwy 14
ROCHESTER, MN 55901
BLOOM INTERNATIONAL REALTY LLC
206 BROADWAY S
SUITE 400
ROCHESTER, MN 55904
C of C 10/4/2019
Commercial Bldg Phased Partial
Permit
R15-0384CB 4/4/2017 Yes 017936 10 E CENTER ST, ROCHESTER,
MN 55904
$45,000,000 CP-4 package: Core building and shell, no
MEP's (Hilton on Broadway)
No KRAUS-ANDERSON CONSTRUCTION
CO
NICK LEIMER
416 S BROADWAY
ROCHESTER, MN 55904
Legacy Fund I, LLC
30 3 St SE
ROCHESTER, MN 55904
Finaled 3/29/2019
Commercial Bldg New R15-0447CB 11/8/2017 Yes 017936 10 E CENTER ST, ROCHESTER,
MN 55904
$38,282,469 CP-6 interior fit-up for 396,570 sq ft, 19
story, 264 hotel rooms
(Hilton on Broadway)
No KRAUS-ANDERSON CONSTRUCTION
CO
NICK LEIMER
416 S BROADWAY
ROCHESTER, MN 55904
Legacy Fund I, LLC
30 3 St SE
ROCHESTER, MN 55904
Finaled 7/25/2019
Included on the Partial Expenditure Credit Worksheet 2,050,000$
15
2018 Building Permits
COMPLETED / PARTIAL BUILDING PERMITS
(Within DMC Boundary, does not include Mayo Projects)
Sub Type Level Category Level Permit Number Permit Issue
Date
Parcel
Number
Address Info Permit
Valuation
Work Description Owner Current Permit
Status
Current Permit
Status Date
Commercial Bldg Alteration R17-0435CB 1/16/2018 082430 206 S BROADWAY AVE,
ROCHESTER, MN 55904
$299,000 Interior renovation for office fit out
(Associated Bank 5th floor, Suite 500)
Oxford Management
206 BROADWAY S
STE 400
ROCHESTER, MN 55904
CO 5/16/2019
Commercial Bldg Phased Partial
Permit
R17-0492CB 4/24/2018 050075 202 SW 4 ST, ROCHESTER, MN
55902
$12,969,000 Phased partial permit for complete core
and shell. (Discovery Square Phase 1)
Mortenson Properties, Inc.
700 Meadow Lane N
Minneapolis, MN 55422
CO 7/10/2019
Commercial Bldg Addition R18-0048CB 7/9/2018 082445 850 SW 2 ST, ROCHESTER, MN
55902
$10,126,000 Addition of 30 guest rooms and parking
stalls. (7R150200 / Ronald McDonald
House)
Ronald McDonald House
Dave Eide
850 2nd St SW
Rochester, MN 55902
CO 11/4/2019
Commercial Bldg Alteration R18-0104CB 8/13/2018 018054 121 N BROADWAY AVE,
ROCHESTER, MN 55906
$1,989,204 Historic renovation of former armory
building. (Castle Community)
CASTLE COMMUNITY LLC
Scott Hoss
115-1/2 North Broadway
ROCHESTER, MN 55906
CO 2/8/2019
Commercial Bldg Alteration R18-0294CB 9/10/2018 080524 220 S BROADWAY AVE,
ROCHESTER, MN 55904
$500,000 Selective demolition of the interior,
exterior façade and roof structure to
prepare for future building alteration.
(Holiday Inn - Rochester)
Ebbie Nakhjavani
220 Newport Center Dr
Suirte 11-262
Newport Beach, CA 92660
Issued 9/10/2018
Commercial Bldg Alteration R18-0335CB 9/12/2018 017926 21 SW 1 ST, ROCHESTER, MN
55902
$98,000 Demolition of 6th floor space to shell
condition. Interior only for future tenant.
(Wells Fargo)
ROCHESTER PROPERTY OWNER
LLC - Timothy Gray
533 SOUTH THIRD ST
STE 100
MINNEAPOLIS, MN 55415
Finaled 4/8/2019
Commercial Bldg Alteration R18-0239CB 9/24/2018 082439 412 SE 3 AVE A & B, ROCHESTER,
MN 55904
$450,000 Tenant build out of space A & B into a bar,
café and lounge. (Fiddlehead Café)
Flats on 4th
412 3rd Ave SE
Rochester, MN 55904
CO 4/4/2019
Commercial Bldg Alteration R18-0289CB 10/9/2018 017887 100 SW 1 AVE, ROCHESTER, MN
55902
$283,665 Interior fit-up of leased space for a coffee
shop adjacent to Peace Plaza. (MOKA
Coffee - Peace Plaza)
Joan Wilson
513 Main St
Suite C
LaCrosse, WI 54601
CC 8/5/2019
Commercial Bldg Addition R18-0221CB 10/25/2018 018448 301 N BROADWAY AVE,
ROCHESTER, MN 55906
$1,175,000 2920 sq. ft. addition with some remodeling
inside to white box main (The Bistro--1st
floor); one new apartment and one
existing (3rd floor). (Avalon Building)
ABM IDEATIONS LLC
4004 AUTUMN LAKE CT SW
ROCHESTER, MN 55902
CO 12/5/2019
Commercial Bldg Alteration R18-0399CB 11/16/2018 082430 206 S BROADWAY AVE,
ROCHESTER, MN 55904
$230,000 Fit up of the third floor Northwest corner of
building for new tenant. (Meyer Borgman
Johnson Rochester Office)
Alan Hiniker
3270 19th St NW
#210
Rochester, MN 55901
CO 2/11/2019
Commercial Bldg New R18-0323CB 11/27/2018 083795 202 SW 4 ST, ROCHESTER, MN
55902
$2,012,000 Tenant fit-out on two levels of the new
Discovery Square building. Building
collaboration and lab space on the floors.
(Discovery Square - U of M)
SILVER LAKE INVESTORS / MAYO
CLINIC
700 Meadow Lane North
ROCHESTER, MN 55422
CO 7/10/2019
Commercial Bldg New R18-0404CB 12/3/2018 083795 202 SW 4 ST, ROCHESTER, MN
55902
$726,786 Tenant build out of office space on first
floor. (Epic Systems)
Epic Systems Corp
1979 Milky Way
Verona, WI 53593
CO 4/24/2019
Commercial Bldg Alteration R18-0389CB 12/7/2018 080524 220 S BROADWAY AVE,
ROCHESTER, MN 55904
$5,000,000 Remodel of existing hotel rooms floors 4-
8. (Hotel Indigo - Old Holiday Inn)
Jim Toninato
5713 Grand Ave
Suite B
Duluth, MN 55807
TCO Issued 1/10/2020
Commercial Bldg Alteration R18-0407CB 12/10/2018 017887 20 SW 1 ST, ROCHESTER, MN
55902
$145,000 Fit-up for a new restaurant. (Jerk King
Restaurant)
Johnson Osei
20 1st St SW
Rochester, MN 55902
CO 5/14/209
Multi-Family Bldg Phased Partial
Permit
R17-0157MFB 2/21/2018 002495 217 SW 14 AVE, ROCHESTER, MN
55902
$4,900,000 Alatus - Footing & Foundation "Tower
Only" (2nd Street Housing Mixed-Use
Development)
Rochester MN Properties, LLC
800 NICOLLET MALL
STE 2850
MINNEAPOLIS, MN 55402
Issued 2/21/2018
16
2018 Building Permits
COMPLETED / PARTIAL BUILDING PERMITS
(Within DMC Boundary, does not include Mayo Projects)
Multi-Family Bldg Phased Partial
Permit
R17-0143MFB 2/27/2018 083687 511 SW 3 AVE, ROCHESTER, MN
55902
$1,750,000 6 Story Multi-Family Apartment Building
with Mixed-Use Commercial (Residence
at Discovery Square) Footing/Foundation
imcluding Precast Plank Installation
RESIDENCE AT DISCOVERY SQUARE
LLC
206 SOUTH BROADWAY
ROCHESTER, MN 55904
Finaled 8/30/2019
Multi-Family Bldg New R17-0141MFB 5/16/2018 017718 511 SW 3 AVE, Rochester, MN
55902
$17,250,000 6 Story Multi-Family Apartment Building
with Mixed-Use Commercial (Residence
at Discovery Square)
RESIDENCE AT DISCOVERY SQUARE
LLC
206 SOUTH BROADWAY
ROCHESTER, MN 55904
TCO Issued 8/28/2019
Multi-Family Bldg Phased Partial
Permit
R18-0003MFB 5/21/2018 017770 425 S BROADWAY AVE,
ROCHESTER, MN 55904
$2,428,958 Foundation permit application for new
multi-family housing development. Two
levels of parking and 5 levels of residential
housing. (Urban on First)
URBAN ON FIRST LLC - Titan
Development
30 3 ST SE
STE 600
ROCHESTER, MN 55904
Finaled 11/19/2019
Multi-Family Bldg New R18-0011MFB 8/9/2018 002495 217 SW 14 AVE, ROCHESTER, MN
55902
$86,237,507 New multi-use residential apartment
building with retail and parking (2nd St
Mixed Use Development Tower Only)
Ashley Bisner
800 Nicollet Mall
Suite 2850
Minneapolis, MN 55402
TCO Issued 1/16/2020
Multi-Family Bldg Alteration R18-0012MFB 8/23/2018 014472 431 SE 3 AVE, ROCHESTER, MN
55904
$340,000 Existing R-2 apartment alteration to
convert from 54 units to 25. (Clinic
Suites)
Andy Friederichs
10817 110 ST SE
CHATFIELD, MN 55923
CO 10/18/2019
Multi-Family Bldg New R18-0015MFB 9/5/2018 017770 425 S BROADWAY AVE,
ROCHESTER, MN 55904
$28,380,000 New multi-family housing development.
Two levels of parking and 5 levels of
residential housing. (Urban on First)
URBAN ON FIRST LLC - Titan
Development
30 3 ST SE
STE 600
ROCHESTER, MN 55904
CO 11/19/2019
Multi-Family Bldg New R18-0037MFB 10/3/2018 084104 301 SW 14 AVE, ROCHESTER, MN
55902
$2,178,293 Low rise 45 unit apartment building with 2
walk up units (EWU1 & EWU2) attached
to tower building (R18-0011MFB).
(Berkman)
ROCHESTER MN PROPERTIES LLC
800 NICOLLET MALL
STE 2850
MINNEAPOLIS, MN 55402
Issued 10/3/2018
Included on the Partial Expenditure Credit Worksheet 7,748,655$
17
2019 Building Permits
Completed / Partial Building Projects
(within DMC Boundary, does not include Mayo Projects
Sub Type Level Category Level Permit Number Permit Issue
Date
Parcel
Number
Address Info Permit
Valuation
Work Description Owner Current Permit
Status
Current Permit
Status Date
Commercial Bldg Alteration R18-0324CB 1/4/2019 081707 20 SW 2 AVE, ROCHESTER, MN
55902
$200,000 Replacement of exterior emergency
egress stair. (Kahler Grand Hotel)
KAH 20 2ND AVENUE LLC - Christopher
Ness
20 2 AVE SW
ROCHESTER, MN 55902
Finaled 4/1/2019
Commercial Bldg Alteration R18-0376CB 1/8/2019 083045 10 E CENTER ST, ROCHESTER,
MN 55904
$1,650,000 Tenant improvement in first floor space of
LF-I Broadway at Center project.
(Pittsburgh Blue Restaurant)
Titan Development - Brian Moser
30 3 ST SE
STE 600
ROCHESTER, MN 55904
C of O Issued 7/8/2019
Commercial Bldg Alteration R18-0454CB 3/8/2019 080524 220 S BROADWAY AVE,
ROCHESTER, MN 55904
$5,000,000 Remodel of existing hotel rooms and
support spaces on floors 1, 2, & 3. (Hotel
Indigo)
Jim Toninato
5713 Grand Ave
Suite B
Duluth, MN 55807
TCO Issued 1/13/2020
Commercial Bldg Alteration R18-0227CB 3/15/2019 017882 150 S BROADWAY AVE,
ROCHESTER, MN 55904
$161,000 Front entry and bar reconfiguration.
Upgrade of interior finishes. (Pescara -
Double Tree Hotel)
BGD5 HOTEL LLC
30 3 ST SE
STE 600
ROCHESTER, MN 55904
Finaled 5/30/2019
Commercial Bldg Alteration R19-0044CB 4/2/2019 068011 15 SE 1 ST, ROCHESTER, MN
55904
$143,850 Skyway level corridor fit-up and whitebox
tenant space. (Broadway Plaza)
ROCHESTER DEVELOPMENT INC
7619 LITTLE RIVER TPKE
STE 650
ANNANDALE, VA 22003
Finaled 6/17/2019
Commercial Bldg Alteration R19-0032CB 4/9/2019 081707 20 SW 2 AVE, ROCHESTER, MN
55902
$505,000 Interior tenant finish for new Qdoba
Mexican Restaurant. (Qdoba Mexican
Eats)
CMP Foods - Mark or Leigh Miller
16694 206th Circle
Hutchinson, MN 55350
C of C Issued 10/9/2019
Commercial Bldg Alteration R19-0037CB 4/15/2019 083045 10 E CENTER ST 2A,
ROCHESTER, MN 55904
$655,000 Restaurant tenant fit up. (Hilton Café) LEGACY FUND 1 LLC
30 3 ST SE
STE 600
ROCHESTER, MN 55904
C of O Issued 7/26/2019
Commercial Bldg Alteration R19-0104CB 4/29/2019 083045 10 E CENTER ST, ROCHESTER,
MN 55904
$152,580 Tenant improvement including completion
of electrical and mechanical as well as
finishes. (Cambria Gallery)
Cambria
31496 Cambria Ave
LeSueur, MN 56058
C of O Issued 8/26/2019
Commercial Bldg Alteration R19-0016CB 5/13/2019 083795 202 SW 4 ST, ROCHESTER, MN
55902
$250,300 Build out for a café on level one.
(Discovery Square)
Silver Lake Investors
700 Meadow Lane North
Minneapolis, MN 55422
C of O Issued 8/2/2019
Commercial Bldg Alteration R19-0127CB 5/23/2019 081707 20 SW 2 AVE, ROCHESTER, MN
55902
$45,000 Installation of new MUA and EF unit, and
all associated duct for kitchen exhaust for
new tenant space. (Kahler/Qdoba grease
duct improvement)
Kahler Hospitality Group
717 3rd Ave SE
Rochester, MN 55904
Finaled 11/19/2019
Commercial Bldg Alteration R19-0115CB 6/18/2019 082430 206 S BROADWAY AVE,
ROCHESTER, MN 55904
$549,212 Renovation of existing branch bank.
(Associated Bank)
Doug Harber
2655 Campus Dr
Plymouth, MN 55441
C of C Issued 11/21/2019
Commercial Bldg Alteration R19-0186CB 6/18/2019 080419 519 SW 1 AVE, ROCHESTER, MN
55902
$22,576 Remove and replace walls and ceilings in
the meat prep room. Layout to remain the
same. (People's Food Co-op)
People's Food Co-op
519 1st Ave SW
Rochester, MN 55902
Finaled 6/28/2019
Commercial Bldg Alteration R19-0069CB 7/5/2019 083045 10 E CENTER ST 141,
ROCHESTER, MN 55904
$65,000 Tenant improvements to include
completion of mechanical, plumbing and
electrical as well as finishes. (Hilton Lobby
Bar)
Rochester Hospitality Group, LLC
212 2nd St Se Suite 225
Minneapolis, MN 55414
C of O Issued 12/27/2019
Commercial Bldg Alteration R19-0101CB 7/9/2019 083795 202 SW 4 ST, ROCHESTER, MN
55902
$543,294 Tenant improvement occupies space on
the third level of the new Discovery Square
Building. Build out includes offices and lab
space. (Wuxi Diagnostics)
Silver Lake Investors
700 Meadows Lane North
Minneapolis, MN 55422
C of O Issued 9/30/2019
18
Commercial Bldg Alteration R19-0244CB 7/24/2019 082430 206 S BROADWAY AVE,
ROCHESTER, MN 55904
$98,600 Repair to elevator shaft walls and stairway
walls and fire stopping of penetrations.
(Associated Bank Building)
BLOOM INTERNATIONAL REALTY LLC
206 BROADWAY AVE S
STE 500
ROCHESTER, MN 55904
C of C Issued 8/27/2019
Commercial Bldg Alteration R19-0175CB 8/16/2019 083795 202 SW 4 ST 220, ROCHESTER,
MN 55902
$460,990 New office/lab tenant improvement. (Suite
220 Discovery Square Building)
Silver Lake Investors
700 Meadow Lane North
Minneapolis, MN 55422
C of O Issued 11/1/2019
Commercial Bldg Alteration R19-0286CB 10/14/2019 017897 101 SW 1 AVE, ROCHESTER, MN
55902
$100,000 Expanding Caribou Coffee into the
neighboring tenant space -Freshens.
Increasing seating. (Caribou Coffee)
Matt Masica
2900 Lakebreeze Ave North
Brooklyn Center, MN 55429
C of C Issued 11/8/2019
Multi-Family Bldg Alteration R19-0002MFB 1/29/2019 018102 211 NW 2 ST 2010, ROCHESTER,
MN 55901
$45,000 Alteration to suite 2010. CHARTERHOUSE INC - Deborah Kenitz
211 2 ST NW
ROCHESTER, MN 55901
Finaled 4/15/2019
Multi-Family Bldg Alteration R19-0054MFB 8/7/2019 018102 211 NW 2 ST 1816, ROCHESTER,
MN 55901
$15,000 Apartment renovation. (Charter House) CHARTERHOUSE INC - Scott Green
211 2 ST NW
ROCHESTER, MN 55901
Finaled 11/13/2019
Commercial Bldg Addition R19-0029CB 5/16/2019 017926 21 SW 1 ST, ROCHESTER, MN
55902
$5,250,000 Addition of Jewel Box, re-skinning of
exterior façade, relocating domestic water
in Peace Plaza and installation of new
elevator. (Wells Fargo Downtown)
ROCHESTER PROPERTY OWNER
LLC - Tony Barronco
533 SOUTH THIRD ST
STE 100
MINNEAPOLIS, MN 55415
Issued 5/16/2019
Demolition Commercial R19-0003D 2/28/2019 075697 315 NW 1 AVE, ROCHESTER, MN
55901
$63,000 Demolition of existing American Legion
building, including removal of existing
asphalt parking lot/curbs; for future
construction of Civic on First-Hyatt House
hotel project
EKN Development Group
220 Newport Center DR
Newport Beach, CA 92660
Issued 2/28/2019
Commercial Bldg Phased Partial
Permit
R18-0467CB 5/16/2019 075697 315 NW 1 AVE, ROCHESTER, MN
55901
$3,710,000 Placement of new footings, drilled piers,
structural foundations and 3 levels of post
tensioned concrete for a new 8 story hotel.
(Civic on First)
EKN Development Group - Ebbie
Nakhjavani
220 Newport Center Dr
Suite 11-262
Newport Beach, CA 92660
Issued 5/16/2019
Commercial Bldg New R19-0078CB 7/30/2019 075697 315 NW 1 AVE, ROCHESTER, MN
55901
$28,480,475 New 172 room hotel with 2 levels of
parking. Common amenities on 1st floor
include meeting rooms, swimming pool,
guest kitchen and lobby bar. (Civic on First)
Civic Center Hotel JV, LLC
180 North University Ave
Suite 200
Provo, UT 84601
Issued 7/30/2019
Commercial Bldg Phased Partial
Permit
R19-0206CB 10/2/2019 075680
085073
101 SW 11 AVE, ROCHESTER, MN
55902
$6,750,000 Footing, foundation and underground
utilities for new hotel package. (Eleven02
Hotel)
Tyler Miles
1018 West Atherton Drive
Taylorville, UT 84123
Issued 10/2/2019
Included on the Partial Expenditure Credit Worksheet 5,662,402$
19
20
21
22
Destination Medical Center
Economic Development Agency
TO: DMC Corporation Board of Directors
FROM: Destination Medical Center Economic Development Agency
RE: FIVE-YEAR UPDATE OF THE DMC DEVELOPMENT PLAN
At the February 6, 2020 DMC Corporation board of directors meeting, the members of the DMC Corp. board
executive committee agreed to advise DMC EDA staff as the 5-year update is prepared.
On that same date, participants in the DMC-City-County collaborative session reviewed the input provided by
professional staff from the City of Rochester, Olmsted County, Rochester Area Builders, the Rochester Downtown
Alliance, the Rochester Area Chamber of Commerce, Rochester Area Economic Development, Inc., Experience
Rochester, and Mayo Clinic. The input was presented as three recommendations: keep the plan understandable
and succinct; demonstrate progress toward DMC goals; do not create “just another plan”.
The update strategy reflects the recommendations of these community economic development partners.
Keep the plan understandable and succinct:
•Sixty pages or fewer in total length
•Digital version
•Recognize that DMC is in the midst of implementation and has established priorities and
projects informed by prior planning, market demand, and community input
•Synthesize and incorporate the additional plans generated by DMC and others since 2015
•Keep the update focused on high-level DMC priorities
Demonstrate progress toward DMC goals:
•Benchmark against 2015 plan assumptions and forecasts, peer regions, and market analyses
•Establish a new set of five-year economic and fiscal assumptions
•Demonstrate how the DMC economic development initiative creates tangible benefits to City, County,
regional, and State residents
Don’t create “just another plan”:
•Focus on implementation
•Highlight progress toward the current plan and establish the current state of DMC priorities (public realm,
mobility, private development, streets and sewers, DMC operations)
•Create a five-year strategic implementation framework for DMC priorities, including an initial allocation of
DMC resources to achieve five- and fifteen-year goals.
•Identify potential areas of opportunity or additional research
•Summarize the collaborative efforts led or supported by various community, regional, and state partners
in numerous areas (housing, transportation, workforce, energy, etc.)
•Direct interested readers to additional in-depth resources
A graphic representation of the proposed plan outline is on the reverse side. It is intended to illustrate how a
reader could proceed through the document, from DMC goals and principles to a summary of past and
contemporary activities to the 2020-2025 implementation strategies to an index of additional, more in-depth
resources. At the March 26 DMC Corp. board executive committee meeting, this information, as well as a project
timeline and draft plan update content, will be discussed.
23
DRAFT ‐Executive Summary of 2020 DMC
Update 2324