HomeMy WebLinkAbout8/27/2020 DMCC Board of Directors Meeting - 2020 DMC Plan UpdateDRAFT 1DESTINATION MEDICAL CENTER DEVELOPMENT PLAN | 2020 UPDATE
CREATING ROCHESTER'S FUTURE
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4 Introductory Letter
5 Navigating the DMC
2020 Update
CONTEXT
8 What is DMC?
12 DMC Goals
14 Guiding Principles
16 Geo and Demographic context
18 Healthcare Context
20 Map and Sub-districts
22 COVID-19 Impact Analysis
PROGRESS
26 Goal 1: Strategic Plan
30 Goal 2: Investments
38 Goal 3: Jobs
44 Goal 4: Tax Revenue
50 Goal 5: Experience
LOOKING FORWARD
DMC Structure
57 Governance
58 Responsibilities
60 Policy Framework
Transformative Private
Development
63 Context and Background
65 Phase 1 Progress (2015-2019)
66 Sustainability and Equity
Considerations
68 Major projects for Phase 2
69 COVID-19 Consideration
and Potential Impacts
Mobility
71 Context and Background
72 Phase 1 Progress (2015-2019)
76 Major Projects for Phase 2
77 Sustainability and Equity
Considerations
77 COVID-19 Consideration
and Potential Impacts
Public Realm
79 Context and Background
80 Phase 1 Progress (2015-2019)
81 Sustainability and Equity
Considerations
TABLE OF CONTENTS
82 Major Projects for Phase 2
83 COVID-19 Consideration
and Potential Impacts
Streets and Sewers
85 Context and Background
86 Phase 1 Progress (2015-2019)
87 Sustainability and Equity
Considerations
88 Major Projects for Phase 2
88 COVID-19 Consideration
and Potential Impacts
APPENDIX
All referenced documents will
be made available at <URL to
be inserted>
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Over the past five years, DMC
has been setting the table for
Rochester’s future through
planning, investment and infrastructure.
Moving into our sixth year, we continue
to build toward the vision defined in our
2015 Development Plan – a guide for each
phase of development across six integrated
sub-districts. As this update chronicles,
our mission to position Rochester as
the world’s premier destination for
health and wellness that attracts people,
investment and jobs is becoming a reality.
A re-imagined and resilient Rochester is
emerging.
Our progress is testimony to the power
of collaboration. I want to acknowledge
the guidance and contributions of many,
including DMCC and DMC EDA board
members, our partners at the City of
Rochester, Olmsted County, State of
Minnesota and Mayo Clinic as well as our
civic leaders and community partners,
and of course, my team at DMC EDA.
We appreciate the many members of
our community who have expressed
interest and have taken part in our
planning sessions, lending their voices to
discussions regarding the creative use of
community spaces and shaping our plans.
As we continue to reach for and realize
our vision, even as the pandemic creates
heightened uncertainty, our focus remains
steadfast: We want a Rochester that retains
authenticity while offering extraordinary
opportunities for residents and businesses
to thrive. The health and welfare of our
community remains foremost. Ultimately,
our aim is the creation of a welcoming and
engaging city shared with patients and
visitors, a city that works for all, and one
we are exceedingly proud to call home.
As you read through the update, keep
in mind that it provides a snapshot of
today, divided over four Phase One project
areas. Each area documents stages of
development, project completion and
economic impact to our city, county and
state. It also addresses areas where our
original plans have changed course.
Thank you to all whose encouragement,
questions and, yes, challenges have made
and continue to make DMC better
and stronger. Together we are moving
forward to create Rochester’s vibrant
and innovative tomorrow.
Sincerely,
Lisa Clarke
Executive Director
DMC EDA
Appendices
This is where you find
an overview of what the
DMC is and some basic
facts and figures about
the community and
region. We also talk a bit
about what’s going in in
Healthcare and how we
are thinking about how
COVID-19 may impact us
locally.
Context
1
This is where you find
more details about the 4
main areas where DMC
invests resources:
1. Private Development
2. Mobility
3. Public Realm
4. Streets and Sewers
We cover what got done
in 2015-2019 and a look
ahead to the next five
years in 2020-2024.
Looking
Forward
3 4
NAVIGATING THE
DMC 2020 UPDATE
This is where we restate
the 5 big goals of the
DMC 20-year plan and
how we stacked up
against those in 2015-
2019.
1. Strategic Plan
2. Investment $
3. Jobs
4. Tax revenue
5. Experience
Progress
2
Want to really dig into
details about specific
aspects of the DMC?
This is where we link to
all of the more detailed
documentation of DMC
and other work that
intersects and impacts
downtown Rochester and
the DMC.
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Context
This first section gives an overview of the
founding principles of DMC and an update on the
current demographics of Rochester, including
the outlook for the healthcare industry as of
the end of 2019. The concluding pages of this
section speak to the COVID-19 context that is still
unfolding as this update went to press.
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Context
WHAT IS
DESTINATION
MEDICAL
CENTER?
D estination Medical Center (DMC) is a unique, public-
private partnership and economic development initiative
that began in 2013. The $5.6 billion plan is the largest in
Minnesota’s history. The partnership combines Mayo Clinic
private development with that of other developers and investors,
in addition to public infrastructure investment from the city of
Rochester, Olmsted County, and the State of Minnesota.
By leveraging these investments, DMC promotes Rochester,
and more broadly, the County and State. An emphasis is placed
on positioning Rochester as home to a world-renowned medical
center that offers a premier health and wellness experience for
patients and their caregivers, as well as for Rochester’s residents,
employees, and visitors.
Public infrastructure investments and private development, and
Mayo Clinic's reputation for excellence are leveraged to create
further economic opportunities for Rochester that are not directly
tied to Mayo Clinic. In Phase 1, developers, corporations, small
businesses, restaurant groups have opened, contributing not only
to Rochester’s economic growth, but also to that of the region and
Minnesota.
The initial DMC Development Plan adopted in 2015 outlines
a vision for DMC and provides a roadmap for implementation
over the course of 20 years. The plan is divided into four five-year
phases. Every five years, DMC is responsible for presenting a
progress update. Updates are to include an evaluation of progress
in addition to plan changes. Also included in the update are
current market conditions and other factors to be considered as
DMC moves into its next five-year phase.
Plan modifications are to be presented to the Destination
Medical Center Corporation Board (DMCC) during the 20-year
implementation period (2015-2035) for its review and vote. The
plan is also reviewed and voted on by the Rochester City Council.
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Pursuant to the DMC Act, DMC Funds may be used to support Public Infrastructure Projects to:
1. Acquire real property and other assets associated with the real property;
2. Demolish, repair, or rehabilitate buildings;
3. Remediate land and buildings as required to prepare the property for acquisition or development;
4. Install, construct, or reconstruct elements of public infrastructure required to support the overall development of
the Development District including, but not limited to, streets, roadways, utilities systems and related facilities, utility
relocations and replacements, network and communication systems, streetscape improvements, drainage systems,
sewer and water systems, subgrade structures and associated improvements, landscaping, façade construction and
restoration, way finding and signage, and other components of community infrastructure;
5. Acquire, construct or reconstruct, and equip parking facilities and other facilities to encourage intermodal
transportation and public transit;
6. Install, construct or reconstruct, furnish, and equip parks, cultural, and recreational facilities, facilities to promote
tourism and hospitality, conferencing and conventions, and broadcast and related multimedia infrastructure;
7. Make related site improvements including, without limitation, excavation, earth retention, soil stabilization and
correction, and site improvements to support the Development District;
8. Prepare land for private development and to sell or lease land;
9. Provide costs of relocation benefits to occupants of acquired properties; and
10. And construct and equip all or a portion of one or more suitable structures on land owned by the city for sale or
lease to private development.
WHAT IS PUBLIC INFRASTRUCTURE?
FIGURE 2.2: PUBLIC INFRASTRUCTURE PROJECTS
Figure from 2015 Development Plan Section 2.0 - DMC Capital Investment Plan (Phase 1), pg. 1 Values from 2015 Development Plan Section 2.0 - DMC Capital Investment Plan (Phase 1), pg. 1
SOURCES OF DMC $585M
PUBLIC INVESTMENT
56%
MN GENERAL STATE
INFRASTRUCTURE AID (GSIA)
$327,000,000
12%
MN STATE TRANSIT AID
$69,600,000
22%
CITY OF ROCHESTER AID
$128,000,000
8%
OLMSTED COUNTY TRANSIT AID
$46,400,000
2%
CONSTRUCTION SALES
TAX EXEMPTION
$14,000,000
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Create a comprehensive strategic
plan with a compelling vision
that harnesses the energy and
creativity of the entire region.
Leverage public investments to
attract more than $5 billion in
private investments to Rochester.
Create more than 30,000 new
jobs, with workforce development
strategies that support that growth.
Generate approximately
$7.5–$8.0 billion in new net tax
revenue over 35 years.
Achieve the highest quality patient,
visitor, and community member
experience, now and in the future.
Create Comprehensive
Strategic Plan
Attract Private
Investment
Create Jobs
Generate Additional
Net Tax Revenue
Become the
Destination for
Health & Wellness
1
2
3
4
5
DMC
GOALS
See Section 2 for further details on
DMC's progress toward these goals.
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DMC’s eight Guiding Principles
were created after a series of
initial discussions were held
in 2015 with DMCC board members,
community members, civic leaders and
Destination Medical Center Economic
Development Agency (DMC EDA) staff.
Principles are reviewed as part of the five-
year update process to ensure continued
relevance.
1. Establish a bold and
compelling vision for
Rochester and the
Destination Medical Center
The DMC Initiative plan mapped out
a staged transformation of the epicenter
of Rochester – its downtown core -
from what was perceived to be largely
a medical campus into that of a vibrant
urban center that would become one of
America’s model cities.
The plan outlined a vision for an
integrated downtown unified by six
sub-districts that reflect Mayo Clinic’s
approach to patient care: integrative,
collaborative and holistic. Each district
is anchored by unique places designed
to create experiences to attract and
retain residents, visitors, employees and
investors. The plan strives to balance
not only public and private sector
GUIDING PRINCIPLES
development interests, but also considers
the health and welfare of the community,
region and the thousands of patients
who visit Mayo Clinic annually. It was
envisioned by Rochester citizens and
reflects the principles, ideas, and culture
unique to this community.
2. Sustain Rochester and
Southeast Minnesota as a
destination medical center
and economic engine for
the state
Rochester and Mayo Clinic, the
city’s largest employer, are critical
components of the region’s and state’s
economy. As such, Rochester’s downtown
core needs to maintain an economic
concentration by expanding its business
base in order to enhance economic
diversity. The DMC Development Plan
promotes strategies that are focused on
a broad range of opportunities, giving
special consideration to strategies that
support and leverage Mayo Clinic’s
growth to enhance and expand the
economy of Rochester and Southeast
Minnesota. These strategies promote
local and regional growth of new and
targeted businesses, investment and
entrepreneurship.
3. Implement a
comprehensive strategy to
drive economic development
and investment
The 2015 Development Plan sets DMC’s
implementation framework and serves as
a comprehensive planning document akin
to a strategic business plan that addresses
land use, transportation, infrastructure,
finance, business development, marketing
and operations strategies.
Included in the plan is a financial
framework and rigorous application
process.
Underwriting (evaluation) criteria are
incorporated and require investors and
developers not only to assess the costs
to construct projects, but also to operate
and maintain those projects over the long
term.
The planning framework and
implementation strategies encourage
an active and on going public-private
partnership between DMCC, City, DMC
EDA, Mayo Clinic, developers and other
stakeholders to fund and operate projects.
As such, it relies on strengths and assets
unique to Rochester while borrowing best
practices from other cities.
Finally, the implementation plan
establishes metrics to measure the
progress relative to DMC objectives over
the twenty-year planning period.
4. Align development with
market-driven framework and
strategies
The Development Plan is based on
market-driven strategies that set a
strategic framework for implementation
and are visionary and flexible in response
to changing market conditions. The
plan does not dictate specific projects or
development/redevelopment parcels, as
ultimately, private and public partners
will determine the rate at which the vision
is realized and investment occurs.
5. Create a dynamic and
accessible urban core
The DMC vision promotes inclusivity
in its openness and accessibility to
residents, employees and visitors through
key strategies that include:
+Create an experience authentic to
Rochester;
+Develop a series of memorable urban
experiences that appeal to all of
Rochester’s residents and visitors;
+Establish iconic places and
attractions where people want to
be;
+Provide programmatic offerings and
and building practices to improve
and enhance the environment and
quality of life, including stormwater,
and transportation/transit and parking
systems.
It recognizes the interrelationship of
uses and builds from these strategies to
position Rochester and DMC as a leader
in sustainable urban environments.
8. Deploy technology and
innovation to promote
a globally competitive
destination
Technology and innovation are core to
the DMC economic strategy. Therefore,
the plan provides for the flexibility
to adapt to increasing demands and
emerging technologies over time. DMC
investments foster the advancement and
growth of Rochester’s medical, research,
innovation, education, entrepreneurial
and general business environment. In
addition to business strategies, ongoing
planning and development efforts
integrate technology strategies into land
use, transportation and infrastructure
plans to support a connected,
collaborative community for businesses,
residents and visitors.
venues that are unique to Rochester;
+Establish a compact, walkable, series
of streets and public spaces that are
connected in the heart of downtown;
+Embrace seasonality; and
+Develop strategies that recognize the
unique needs and demands of patients
and their companions that drive
visitation in the City.
6. Develop mobility and
transit solutions to support
growth
The DMC Transportation
Implementation Plan was developed with
a focus on mobility to reduce dependency
on automobiles while creating
connections to the surrounding area
and region. The plan calls for convenient
access to and around downtown by
having more high-frequency transit, an
enhanced network of bike trails, safe
walkable streets, a downtown transit
circulator, and high-frequency shuttles
from remote parking.
7. Create a model for
sustainability
Principles of sustainable planning
and development are found throughout
the Development Plan. The plan strives
to implement sustainable urban design
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Context
GEOGRAPHIC AND
DEMOGRAPHIC
CONTEXT
A s the third largest city in
Minnesota and the Olmsted
County seat, Rochester has a dynamic
and growing economy. The county’s
estimated 2020 population (167,500) and
employment (128,400) are projected to
increase by approximately 36,000 people
and 22,000 jobs over the next 20 years.1
Much of this growth will be driven by
Mayo Clinic. As a globally-renowned
center for high-quality healthcare,
pioneering research and medical
education, Mayo Clinic is the engine of
the local economy, as well as the largest
private employer in Minnesota.
Mayo Clinic policy changes in 2013
enabled researchers and physicians to
form their own start-up companies, a
shift from its previous policy, which
required clinicians to license medical
inventions to existing companies.
This employee entrepreneurship
program led to a boost in Mayo Clinic
employee-founded start-up companies
within DMC. Additionally, Mayo Clinic
partnered with large technology and
healthcare companies such as Google
and Boston Scientific to further improve
patient and clinician experiences
through cutting-edge enhancements and
innovations. These partnerships have
resulted in a burgeoning entrepreneurial
ecosystem, especially among new and
growing industries in the region, such
as medical technology and biosciences.
The emergence of these industries has
begun to diversify the local economy,
a critical step toward long-term
economic success of the region.
The ability to attract and retain a
highly qualified workforce is critical to
the success of DMC.
Therefore, diversification of the
local economy beyond healthcare is
key. Also important are cultural and
entertainment opportunities that
enrich quality of life. The city and
DMC are actively working to enhance
the vibrancy of downtown Rochester
with two of its cultural anchors: the
historic and newly renovated Chateau
Theatre and the expanded Mayo Civic
Center. Infill mixed-use development is
transforming underutilized land in the
downtown, creating a denser core and
live/work/play environment.
The county’s estimated
2020 population (167,500)
and employment (128,400)
are projected to increase
by approximately 36,000
people and 22,000 jobs
over the next 20 years.
1New Rapid Transit for a Growing, Equitable Rochester - Market analysis, August 2020
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HEALTHCARE CONTEXT
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T he first of the required five-year
updates to Rochester’s Destination
Medical Center development plan
coincides with a period of unprecedented
turmoil in global health. The COVID-19
pandemic persists across the country
at the time of this update. In a recent
interview with Medical Alley, Gianrico
Farrugia, M.D., Mayo Clinic's president
and CEO, characterized the pandemic as
a “stress test for health care.”
Fortunately, Mayo Clinic was prepared
financially, operationally and strategically
to respond to the test. Thanks to a strong
2019 financial performance and generous
benefactors, Mayo Clinic was able to
tap into its reserves to address some of
the pandemic’s initial financial impacts.
In addition, significant cost reductions
mitigated greater adverse financial
consequences, which, so far, have proven
less severe than initially projected. As
the outpatient practice reopened, patient
visits and procedural and surgical
volumes have steadily risen and are on
track to exceed revised 2020 targets.
Importantly, the COVID-19 pandemic
has brought the importance of supporting
health care to the forefront. It has
identified where the health system soars
and where it fails. During the pandemic,
Mayo Clinic has demonstrated leadership
on a national level, heading up important
efforts to improve and expand testing
capabilities while conducting research for
treatments and vaccines to stop the virus.
+Research: At the onset of the
pandemic, Mayo Clinic immediately
formed a COVID-19 Research Task
Force to coordinate Mayo Clinic
COVID-19-related research activities,
including cataloging all COVID-19
research; vetting, prioritizing and
implementing clinical trials; and
facilitating review and approvals to
ensure efficient and smooth initiation
of studies.
+Expanded Access Program for
Convalescent Plasma: Launched
April 3, the Expanded Access
Program for Convalescent Plasma
is a federally-sponsored national
study of the safety and potential
effectiveness of this investigational
therapy. At its inception, the study’s
goal was to focus on safety and
access for 5,000 patients hospitalized
with COVID-19. Today, patient
enrollment at uscovidplasma.org
has topped 103,000 from 14,000
physicians at more than 2,700 acute
care facilities in every state and
territory of the nation. Enrollment
was discontinued on August 28, 2020
following the FDA’s announcement
on Emergency Use Authorization.
+Testing: Mayo Clinic has completed
more than 1.27 million PCR
molecular tests and 215,000 serology
tests. Its goal is a 24-hour turnaround.
Mayo Clinic Laboratories is part of a
Minnesota testing collaboration that
includes the Minnesota Department
of Health, the University of Minnesota
and other health systems.
+In-person and Virtual Care: The
pandemic provided opportunities to
transform Mayo Clinic's practice to
quickly deliver in-person care safely
as well as spur virtual visits to ensure
continuity of patient care.
The pandemic has accelerated
Mayo Clinic's path toward a model of
care that is more digital, consumer-
friendly and responsive — elements
set forth in its strategic plan to cure,
connect and transform health care by
the year 2030. The vision is bold and
ambitious, building on Mayo's ability
to revolutionize medicine to meet the
changing needs of patients.
2030 STRATEGIC PLAN
Mayo Clinic is pursuing three
overarching strategies to leverage
its existing strengths and build new
capabilities. These strategies are
summarized below:
CURE
Mayo Clinic will remain the global
authority for patients seeking the best
solutions for serious or complex health
challenges. Mayo will differentiate
itself through the discovery, delivery
and diffusion of the next generation
of diagnoses, treatments and cures.
This includes new medical therapies,
surgeries and procedures, delivered
through physical, digital and virtual
methods.
Identifying solutions and ultimately
preventing disease will provide hope
and healing to people. This means that
Mayo will:
+Invest in its core activities to focus
on these challenges
+Deliver care in unique ways
+Focus on solutions
CONNECT
Mayo Clinic will leverage data and
technology to advance medicine and
better align a fragmented health care
marketplace. This means that Mayo will:
+Create digital care delivery capabilities
with a human touch
+Integrate its virtual and in-person
care to create a system that is more
accessible, scalable and sustainable
while focusing on consumer needs
+This capability will touch every aspect
of the organization, transforming
practice, research, education and
administration through new digital
connectivity, allowing Mayo to create
and act upon powerful new insights.
TRANSFORM
Platform business models have
transformed many industries. Platforms
focused on health care offer the ability
to scale knowledge, human and physical
capacity and services in ways not
currently possible to transform health
care:
+Through platforms, leverage data and
technology to redefine health care
delivery and create a Mayo Clinic
that brings together global providers,
producers and consumers with the
sole purpose of making health care
better
The Mayo Clinic Platform will
orchestrate knowledge and services,
while generating revenue to sustain core
capabilities and reinvest in its nonprofit
mission.
Through the implementation of its
2030 Strategic Plan, Mayo Clinic will
remain a global leader in a category
of one, uniquely capable of curing
serious or complex medical conditions
through its innovative and personalized
approaches to medicine and through its
emerging platform.
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Downtown
Waterfront
The downtown waterfront
transforms the perception
of Rochester as a medical
campus to that of an
entertaining and vibrant
destination city. The
strategy creates a town
square utilizing the asset
of the river and waterfront
to create a year-round
destination for residents
and visitors alike. By
creating this type of
space, the plan enhances
the viability of the Mayo
Civic Center as a regional
convention center and
amplifies the feasibility
of spurring mixed-use
development in and around
the downtown area.
Central Station
Central Station was initially envisioned as a cornerstone of
the plan for future regional growth in Rochester with the
creation of a new regional transit hub connecting Rochester
with the surrounding region – including the Twin Cities.
However, further refinement of the mobility program
through the work of the Integrated Transit Studies (ITS, 2018)
resulted in the concept of two mobility hubs located at the
Northwest and Southeast edges of downtown, rather than a
single centralized location.
Presently, the Central Station sub-district is witnessing
considerable investment in housing, hotel, and
entertainment. With this market-based transformation
underway, revisioning of this sub-district is now a goal for
Phase 2 (2020-2024) of the DMC plan.
Saint Marys Place
Located along 2nd Street, Saint Marys
Place establishes a civic square and
monumental gateway at one of the
primary entry points to Rochester.
The mobility plan incorporates
a circulator that connects Saint
Marys campus to downtown. It
also embraces its relationship to
surrounding neighborhoods by
creating a town square that connects
Kutzky Park to Saint Marys Park and
the historic Pill Hill neighborhood.
UMR and Recreation
This sub-district integrates an urban college campus and
recreational uses into the district, thereby creating another
catalyst for the growth of downtown retail, entertainment
and residential space. It was anticipated that UMR would
have its first building built in this area before the end of
the first phase of the DMC implementation process. While
UMR has expanded its presence in downtown Rochester,
both through land acquisition and its leased space in One
Discovery Square, its first newly constructed building is
currently in pre-development.
DMC AREA
SUB-DISTRICTS
Discovery
Square
As the new address for
the future of bio-medical
research and technology
innovation, Discovery Square
is a keystone to the DMC
economic development
strategy. The sub-district
borrows from Mayo Clinic’s
integrated care model to
create an integrated district
founded on the principles
of translational medicine.
Mayo Clinic, private partners
and institutions are brought
together in the district, a
place organized around a
central park and translational
cloud designed to foster
communication and the
sharing of ideas.
Heart of
the City
At the heart of downtown
is a sub-district that forms
the true center of the city.
It is where Mayo Clinic,
commercial, hospitality,
retail and residential meet.
The Heart of the City is
connected by a central
public space, which extends
and enhances Peace Plaza
to create active experiences
and engaging gateways to
the other sub-districts.
Transit Village
and Station Areas
As a result of the extensive mobility
planning that occurred in Phase 1,
in 2020 DMC EDA is putting forth
an update to add a seventh sub-
district that includes a west transit
village and the corridor along 2nd
Street that connects to the Saint
Marys sub-district. More details
can be found in the appendix.
2017 DMC
Boundary Change
Addition to Saint Marys Place district
DMC is centered around six neighborhood sub-districts. Together, these
sub-districts are activating downtown Rochester as a global medical
destination. Each space is designed for innovation and collaboration.
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Br
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a
d
w
a
y
2nd Street
Gonda
Building
Soldiers
Field
Civic
Center
Saint Marys
N
52
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Context
At a national level there is a dual
crisis – an unprecedented global health
emergency coupled with the steepest
job loss on record. At the request of the
DMCC Board, DMC EDA has engaged
economic consultancy HR&A Advisors
to conduct a scenario analysis of the
potential impacts of the COVID-19
pandemic on the local economy and
the DMC Initiative that will help guide
DMC’s priorities in 2020-2024.
This study is currently underway and
will be updated with the findings before
the final version of this 2020 Update is
issued.
The goals of this study are to:
+Analyze the impact COVID-19 will
have on the Rochester economy
to best guide the DMC’s near- and
long-term planning and investment
decisions
COVID-19
IMPACT ANALYSIS
+Develop dynamic scenarios that
measure the economic impact of
COVID-19 on the local economy and
the DMC’s development plans
+Understand the specific industries that
have been disproportionately affected
by the COVID-19 crisis
Like other disaster recoveries, the
economic recovery from COVID-19 is
expected to take place over three stages.
See the graphics below for further
description of the study methodology.
COVID-19 Impact Analysis and graphics provided by HR&A Advisors COVID-19 Impact Analysis and graphics provided by HR&A Advisors
NEXT STEPS:
1 2 3Define
scenarios and
economic
inputs.
Run model and
translate model
outputs into metrics
that inform DMC
planning efforts.
Translate model
outputs into
contextualized
DMC findings.
Like other disasterrecoveries, the economicrecovery from COVID will take
place over three stages.
DMC COVID-19 Impact Analysis | 18
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This section of the 2020 update is framed
around the five major goals established
for the DMC Initiative. The outcomes of
Phase 1 of the DMC Development Plan
(2015-2019) are compared against the
projections in the original plan.
Progress
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GOAL 1:
Create a comprehensive
strategic plan with a
compelling vision that
harnesses the energy
and creativity of the
entire region.
What is the goal?
Plans are a tool to achieve a shared vision and guide future investments and are
stronger and more effective if they harness the energy and creativity of everyone
whose lives are impacted by aspects of the plan. A comprehensive strategic
development plan should include market research, master plans for land use,
infrastructure, transportation, finance, marketing and communications, economic
and fiscal impacts and implementation tools. Essentially, a strategy that addresses
all facets of building and sustaining the destination.
Why does it matter?
The DMC Initiative set forth a vision to transform the epicenter of Rochester
from what was perceived to be largely a downtown medical campus, into a vibrant
urban center and one of America’s model cities.
To transform vision into real change requires extensive planning that is re-
calibrated as required through the years. By harnessing the energy and creativity
of the entire region, the plan maintains an essential connection to the very people
who are going to be directly impacted, immersing them in the shared vision and
inviting them to have a stake in shaping its evolution.
Phase 1 results (2015 - 2019)
To create the 2015 DMC Development Plan (i.e. the comprehensive strategic
plan for the 20-year DMC Initiative), the DMC EDA recruited a group of the
nation’s leading development and planning consultants to work in collaboration
with the City of Rochester, Olmsted County, Rochester-Olmsted Council of
Governments (ROCOG) and Mayo Clinic. They also engaged with community
stakeholders.
The Plan laid out a strategic direction for an integrated downtown, unified
by six sub-districts, each anchored by unique places designed to create equally
unique experiences to attract and retain residents, visitors, employees and
investors to the community.
Subsequent to the adoption of the DMC Development Plan in April 2015, and
as a direct result of the DMC Plan’s framework, numerous and more detailed
planning exercises with numerous organizations have occurred. A summary of
relationships between these planning initiatives is depicted in the diagram.
DRAF T DRAF T
28 DRAFT DRAFT 29
DMC GUIDING DOCUMENTS
State delegated authority Minnesota State
Statute and Rochester City Requirements
Metro Rochester Regional Strategies
and other regional policies
City Wide Strategies
Area Plans
DMC Development Plan - Vol. 1
What was learned?
+Plans are iterative and evolving; they need to be flexible
enough to move with the market.
+Building relationships between various stakeholders is a key
component in the development of strategic plans.
+Pilots are a good tool to test new community collaboration
models, particularly in the design of public spaces.
What's next?
In Phase 2 (2020-2024) several new planning initiatives will be
underway that will impact the DMC Districts. DMC is working
closely with the City of Rochester on several planning efforts
that impact the downtown core. These plans are focused on
public realm planning, mobility options, housing needs, and
downtown district energy planning.
• Downtown Waterfront Small Area Plan:
Planning efforts focus on designing public realm
opportunities for the areas south of the downtown
area, particularly along the riverfront. https://
downtownwaterfrontsesmallareaplan.com/
• City Pedestrian and Bike Master Plan: Aligning
multiple bike and pedestrian plans and creating a single
updated vision for pedestrian and bicycle infrastructure
across the City.
• Downtown District Energy Planning: Assessing and
determining how downtown government buildings
could be heated and cooled.
• Soldier’s Field Master Plan: An update to the
master plan that will connect Discovery Walk to
the Zumbro River.
• Central Station Sub-district Re-visioning: Developing
a concept for public realm in the Central Station sub-
district. The Rapid Transit Project requires this sub-
district be re-imagined as it will no longer serve as the
transit hub for downtown.
• UMR/Recreation Sub-district Re-visioning:
Developing a new vision for the UMR/Recreation
sub-district while the Discovery Square sub-district
continues to take shape.
• New West Transit Village Sub-district Visioning
and Planning: Outlining the West Transit Village
(adjacent to Cascade Lake on 2nd Street SW) vision for
development and transit services.
• Rapid Transit Corridor Planning: Outlining public
realm, operations and economic development
opportunities, in addition to street design strategy for
the downtown Rapid Transit Project.
+Olmsted County
• Graham Park Master Planning Update: Updating the
County’s current master plan and aligning it with future
transit opportunities.
• Affordable Housing Study and Policy Development:
In progress
+Mayo Clinic
• Five-year Facility Plan: Updating five-year plans
focused on upgrading existing buildings and new
construction projects. The plan outlines future Medical
District Zone projects supportive of Mayo Clinic’s
downtown operations.
Photo Here
DRAF T DRAF T
30 DRAFT DRAFT 31
GOAL 2:
Leverage public
investments of
$585 million to
attract more than
$5 billion in private
investments to
Rochester.
What is the goal?
Leveraging public investment is a quantitative goal for delivering a “return on
investment” for public spending authorized by the DMC Act. In exchange for
$585 million in public funds, the goal is to bring more than $5 billion in private
investments to Rochester in order to realize the DMC vision.
The DMC Plan established a viable economic development strategy (see Goal
1 and the DMC Development Plan) grounded by market research. It defined
extraordinary costs and set priorities for public investment in order to meet
DMC’s mission and goals.
Why does it matter?
The Development Plan is based on market-driven strategies that set a strategic
framework for the DMC Initiative. Public investment will catalyze further private
investment. Over the 20-year timeframe of the DMC, the targeted ratio between
private and public investment is roughly 10:1. This means that for every dollar
of public money spent, nearly ten dollars of private investment should occur.
This 10:1 ratio is derived from the goal itself where approximately $585 million
of public dollars are meant to realize $5.6 billion of private investment. These
combined investments will support a transformation of downtown into a vibrant,
welcoming place by leveraging public funds to create the strongest civic return on
investment.
The DMC Development Plan does not dictate specific projects or development/
redevelopment parcels. Ultimately, private and public partners will determine
the rate at which the vision is realized and investment occurs. The Development
Plan strategy establishes a framework that is visionary, flexible and responsive to
changing market conditions.
DRAF T DRAF T
32 DRAFT DRAFT 33
TOTAL INVESTMENT
COMMITTED IN PHASE 1
PHASE 1
ACTUAL (2019)
$98.4M
TOTAL PRIVATE INVESTMENT
IN DMC: $963M
Phase 1 results (2015-2019)
The DMC Model is working as
intended. The private investment during
Phase 1 totaled roughly $963M and
public investment, including committed
TIF funds, were approximately $98M.
PHASE 1
ACTUAL (2019)
$963M
PHASE 1
TARGET (2019)
$836M
WHERE DID THE PRIVATE
INVESTMENT HAPPEN?
$591
Million
MAYO CLINIC
INVESTMENTS
NON-MAYO CLINIC
PRIVATE INVESTMENTS
$372
Million
Photo Here
0
200M
400M
600M
800M
1B
PrivatePublic
NOTE: Mayo Clinic investment total also includes Rochester
investments outside of the DMC boundary per DMC Legislation.
$7M
$39.3M $85.7M $107.2M $86M $126.5M $139.1M$20.5M $38M $45M
$135.4M $133M
0
100,000,000
200,000,000
300,000,000
400,000,000
500,000,000
600,000,000
700,000,000
800,000,000
900,000,000
1,000,000,000
July - Dec 2013 Jan - Dec 2014 Jan - Dec 2015 Jan - Dec 2016 Jan - Dec 2017 Jan - Dec 2018 Jan - Dec 2019
Do
l
l
a
r
s
Mayo Clinic Investment Other Private Investment
$690.5M
$428.7M
$962.8M
DMC Private Investment (Construction Costs Spent To Date)
DRAF T DRAF T
34 DRAFT DRAFT 35
7 DMC Funded
Projects
Program Comparison Mayo Clinic
Investments + DMC Major Projects
Phase 1
Actual
Phase 1
Original Plan
Phase 1
Difference
20-Year Plan
Remaining
% of Total Plan
Completed Phase 1
Property Type Unit
Practice (Mayo Clinic)
Research (Mayo Clinic
+ Non-Mayo Clinic)
Research (Mayo Clinic)
Research (Non-
Mayo Clinic)
Education (Mayo
+ Non-Mayo)
Hotel
Office
Retail
Residential
SF 497,000180,000 +317,000 523,000 49%
SF 4,0000 +4,000 350,000 1%
SF 2,381,0001,200,000 +1,818,000 4,419,000 35%
SF
260760 -500 1,120 19%
SF 82,00050,000 +32,000 238,000 26%
SF 80,000----
SF 417,000----
Rooms
80,0000 +80,000 230,000 26%
Units 460450 +10 2,390 16%
WHAT WAS BUILT?
In nearly all sectors, DMC exceeded planned square footage in Phase 1, with the exception of hotels.
In 2020, 605 hotel rooms and 505 residential units are already completed or under construction.
DMC IS ATTRACTING OUT OF
STATE PRIVATE INVESTMENT
As an example, for just seven of the private developments built in the DMC in Phase 1
(2015-2019), the majority of private investment money came from outside Minnesota –
further amplifying the economic development value of DMC to the state.
What was learned?
+Focused and targeted marketing is needed to build non-
Mayo Clinic private investment interest in the DMC,
especially in the early phases.
+Phase 1 building is a mix of renovated space and new
construction.
+Phase 1 was biased toward catalytic private development.
+A constrained definition of transit aid required
unanticipated use of City sales tax dollars.
What’s next?
Projections indicate strong Phase 2 public funding. The
impact of COVID-19 and strategies for recovery will be a
significant consideration for how private investment occurs in
2020-2024.
Section 3 provides details regarding public and private
investments planned for Phase 2 in addition to potential
COVID-19 related impacts.
Photo Here
DRAF T DRAF T
36 DRAFT DRAFT 37
HOW WERE PUBLIC FUNDS
INVESTED IN PHASE 1?
$98M WAS COMMITTED TO
DMC PROJECTS IN 2015-2019
The 2015 DMC Development Plan provided a Capital Investment Plan (DMC-CIP) focused on the
attainment of two primary goals to be realized by four specific priorities guiding funding decisions.
Priority #1: Create
a Catalyst
Identify and support
the development of a
concentrated and dynamic
“city center” (Heart of the
City) and other early phase
Public Infrastructure Projects
that can effect change; be
a catalyst for development
throughout the DMC
Development District; and
create reserves to provide the
funding resources necessary
to catalyze large-scale
investments over time.
Results in Phase 1:
The downtown sub-district
forms the true center of the
city where at its crossroads,
Mayo Clinic, commercial,
hospitality, retail and
residential meet. The Heart
of the City is connected
by a central public space,
which extends and enhances
Peace Plaza to create active
experiences and engaging
gateways to the other sub-
districts.
Priority #2: Drive
Investment
in Biomedical
Technology Sector
Identify projects and reserve
funds to support the initiation
of strategies to attract and
retain biomedical technology
investments, business, and
educational partners to the
DMC Development District.
Phase 1 Results:
Discovery Square: The
Economic Engine: Discovery
Square is the cornerstone
of DMC’s economic
development strategy in
biomedical and technology
sectors. The sub-district
borrows from Mayo Clinic’s
integrated care model, which
is founded on the principles
of translational medicine.
Mayo Clinic, private partners,
companies and institutions
will be located along the
district’s centralized green
corridor, Discovery Walk.
Priority #4: Initiate
Detailed Planning,
Strategic Investments
for Long-Lead Phase 2
Strategies
The prime long-lead strategic
planning needs are in the area
of transportation planning.
Phase 1 Results:
The Integrated Transit Studies
(ITS) were completed in 2018,
followed by the City Loop
plan and Transit Oriented
Development Planning Study
for the Circulator Route.
The Rochester Rapid Transit
project will be submitted
for Federal Funding in Fall
2020. These detailed mobility
planning documents can be
found in the appendices.
DMC SOURCE
Sources of public funding for 2015-2019
83%
CITY OF ROCHESTER
15%
MINNESOTA GSIA
2%
OLMSTED
COUNTY
TRANSIT
USES
Public money in 2015-2019 was
committed to these five areas
29%
PRIVATE DEVELOPMENT
22%
MOBILITY
21%
PLANNING AND
IMPLEMENTATION
18%
STREETS / SEWERS
10%
PUBLIC REALM
Priority #3: Early
Phase Improvements
Supporting Strategic
Growth and Enhanced
Quality of Life
Engage the City, County,
Rochester-Olmsted Council
of Governments (ROCOG)
and Mayo Clinic to identify
projects that leverage DMC
Funds as gap financing to
support the extraordinary
costs associated with creating
a global destination medical
center.
Phase 1 Results:
Approximately $98 million of
public funds were committed
in Phase 1. The chart to the
right shows the way in which
the funds were spent.
Photo
Here
Photo
Here
DRAF T DRAF T
38 DRAFT DRAFT 39
GOAL 3:
Create more than
30,000 new jobs,
with workforce
development
strategies that
support growth.
What is the goal?
The goal is to create more than 30,000 new jobs with a strategic focus on
attracting new businesses that will include small and minority business enterprise,
and women-owned business participation. The goal focuses on the number of
jobs, and seeks to foster and retain a highly-skilled workforce.
Why does it matter?
Without developing, retaining, and recruiting new workers, the economic
development initiative and its associated goals are not possible. DMC economic
benefits are largely driven by the workforce and their broad economic impact on
the region. Specifically, the impact of new positions has direct local economic
benefits as earned wages from new positions are spent on local goods and
services. Additional local, regional, and statewide benefits from a tax growth
perspective are also realized. The economic impact from job creation is explained
under Goal 4, which highlights DMC project-related net tax revenue growth.
The DMC Development Plan required the City to establish a targeted
business participation goal and workforce participation targets for women and
minorities. Doing so ensures that the entire community, specifically persons
of color and women, have an opportunity to participate in the design and
construction processes associated with DMC development. Since 2015, there
has been substantial growth in participation of targeted business and workforce
participation. In 2020, new targets were approved to build momentum and realize
further wide-scale change in Rochester.
DRAF T DRAF T
40 DRAFT DRAFT 41
Phase 1 results (2015-2019)
The City of Rochester added
approximately 7,700 positions over the
past five years, which represents 25 percent
of the 30,000 goal. The table that follows
shares new jobs, which are the result of
Mayo Clinic’s and other major projects
underway in the DMC District. It should
be noted that Mayo Clinic reports its
job figures annually. Non-Mayo Clinic
employment figures have been estimated
by using multipliers based on the amount
of yearly renovated and new construction
in the DMC District.
The greatest percentage of job growth
occurred in the healthcare sector;
additional jobs were added in retail,
hospitality, research and office segments.
The chart demonstrates cumulative job
growth since 2015.
For comparison purposes, data was
also collected from the Department of
Employment and Economic Development
(DEED) and its Quarterly Census of
Employment and Wages (QCEW).
In the City of Rochester between 2015-
2019:
+A total of 5,803 net jobs were added,
which accounted for positions lost in
key industries during this period; and
+8,323 gross jobs were created,
predominately in the following sectors:
• Education and health services
(5,432 jobs);
• Leisure and hospitality (1,333
jobs);
• Construction (861 jobs); and
• Nominal increases were realized
in public administration and
other services.
Te xasTexas
UtahUtah
MontanaMontana
CaliforniaCalifornia
ArizonaArizona
NevadaNevada
Id ahoIdaho
OregonOregon
IowaIowa
ColoradoColorado
KansasKansas
Wy omingWyoming
New Me xicoNew Mexico
OhioOhio
FloridaFlorida
IllinoisIllinois
NebraskaNebraska
MinnesotaMinnesota
MissouriMissouri
GeorgiaGeorgia
OklahomaOklahoma
AlabamaAlabama
ArkansasArkansas
South DakotaSouth Dako ta
Wash in gtonWashington
North DakotaNorth Dakota Ma ineMaine
WisconsinWisconsin
VirginiaVirginia
New Yo rkNew Yo rk
In dianaIndiana
LouisianaLouisiana
MichiganMichigan
KentuckyKentucky
Te nnesseeTennessee
North CarolinaNorth Carolina
PennsylvaniaPennsylvania
MississippiMississippi
SouthSouth
CarolinaCarolina
We stWest
VirginiaVirginia
Ottawa
Quebec
Boston
Denver
Chicago
Detroi t
To ronto
El Paso
Phoenix Memphis
Seattle
Calgary
Houston
Montreal
SaltilloCuliacan
San Jose
Mexicali
Winnipeg
Baltimore
Charlotte
Nashville
Milwaukee
Monterrey
Chihuahua
San Diego
Va ncouver
Hermosillo
San Antonio
Los Angeles
Philadelphia
Indianapolis
Jacksonville
San Francisco
Oklahoma City
Washington D.C.
Job Sector
Total Jobs
Added
(2015-2019)
Avg Weekly
Wage
Total Annual
Wage (2019)
2018 Rochester
Area Median
Income (AMI)
Wage
Comparison
to AMI
Education and Health Services 5,432 (71%) $1,548 $80,496 $74,880 108%
Leisure and Hospitality 1,333 (18%) $423 $21,996 $74,880 29%
Construction 861 (11%) $1,241 $64,532*$74,880 86%
The greatest percentage of added positions is found in
education and health services sectors (71 percent). The average
wage across 5,432 positions is $80,496 a year, which is above
Rochester’s 2018 area median income, an indication of quality
jobs and income to entice families to the region.
While an increased number of positions were added at Mayo
Clinic, the education sector also realized growth. The growing
presence of higher-education institutions like Rochester
Community and Technical College (RCTC), Winona State
University, and University of Minnesota Rochester (UMR)
are preparing workers for healthcare and construction jobs.
Rochester Public Schools created INCubatoredu aimed at
cultivating entrepreneurial interests and skills in high school
students in preparation for job opportunities in the burgeoning
local biomed tech sector.
Similar results were found in the construction industry. The
construction sector realized 861 new positions (11 percent)
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2015 2016 2017 2018 2019
Retail
Office
Hotel
Education (Non-Mayo)
Research (Non-Mayo)
New MAYO (above 2014 baseline)
across the region, with an average annual wage of $64,532.
These wages are slightly below the area median income yet
remain competitive.
DMC tracked wages paid by construction location. The map
illustrates that 54 percent of construction wages totaling $13.2
million have been paid within an approximate 50-mile radius
of Rochester, and the large number of those wages outside
the 50-mile radius were still within the state. As a Minnesota
investment in Rochester, most of the construction jobs are going
to workers from Minnesota.
The leisure and hospitality sector grew by 1,333 positions (18
percent). Of concern are average wages in this sector, which are
well below the area median income (AMI), averaging 29 percent
of AMI. If a service sector position is the primary source of
household income, it will be cost-burdened due to rent levels
and Rochester’s cost of living.
Construction workers residing in zip codes starting in 559 (around Rochester) earned $13,268,719 (59%) of wages paid on
DMC projects (April 2017 - June 2019). A majority of the remaining construction workers still reside in greater Minnesota.
*The average based hourly pay rate for construction workers on DMC construction projects was $39.11/hour plus fringe benefits. This is an average
annual salary of $80,000 a year, plus benefits. (April 2017 - June 2019)
Cumulative New Jobs
in DMC District
DRAF TDRAFT
While the reported number of positions
from development activity and QCEW
differ, there was considerable job growth
in key sectors, as the chart indicates.
In addition to the total number of
jobs, wages paid were also an important
consideration. Job sectors with the
strongest growth are also included.
2,300
4,200
4900
6,000
7,700
Retail Research (Non-Mayo Clinic)
Office New Mayo Clinic
(above 2014 baseline)Hotel
42 DRAFT DRAFT 43
What was learned?
+More local women and minority-
owned businesses are needed to fulfill
the DMC vision.
+Current data indicate a shortage of
women in construction.
+Support of local educational programs
is needed.
+The need to address cost of living
concerns, particularly the need for
housing options in close proximity to
transit routes, grocery and childcare are
needed for those in service positions.
+The need for continued planning
in the areas of housing, transit and
community services in order to
improve outcomes for low-income
populations as well as for all citizens in
Rochester and the region.
+Internships and partnerships for
higher-education students are critical
for future local job growth.
+High-quality jobs offered by companies
located in Discovery Square should
continue in order to be a magnet for
sought-after jobs.
+DMC-related construction jobs are
supporting – and will need to continue
to support - a significant number of
jobs relative to Rochester’s size.
What’s next?
Data indicate that the DMC initiative
is on solid footing to meet its 2035 jobs
goal. At present, the project has attained
25 percent of the goal. Moving forward,
efforts will continue to be placed on
job growth in key sectors, including
healthcare, life sciences, med-tech,
education, construction and hospitality.
To create a livable, affordable
community, additional focus will need
to be given to key infrastructure areas
including workforce housing, reliable and
high-amenity transit, and to additional
grocery stores and childcare services.
Economic studies are currently
underway to identify Phase 2 DMC
District housing needs, and housing
needed throughout the City and region.
The data collected will also inform next
steps for the Rapid Transit Project, in
addition to economic development
investment required to realize pressing
downtown housing and retail needs.
Photo Here
Photo HereDRAFTDRAF T
44 DRAFT DRAFT 45
GOAL 4:
Generate
approximately
$7.5–$8.0 billion
in new net tax
revenue over 35
years.
What is the goal?
This goal is a product of the two previously listed goals. If DMC successfully
leverages public investments to attract private investment and 30,000 new jobs
are created within DMC, the result should be large increases in new net tax
revenue to Rochester, Olmsted County and the State of Minnesota by 2050.
These taxes result primarily from income taxes from new jobs created, and also
include sales taxes, hotel taxes and property taxes.
Why does it matter?
The DMC Development Plan promotes strategies that are focused on a broad
range of opportunities. It gives special consideration to strategies that support
and leverage Mayo Clinic’s growth to enhance and expand the economy of
Rochester and Southeast Minnesota. These strategies will promote the growth
of new businesses, investment, entrepreneurship, and targeted businesses locally
and regionally. In turn, economic growth will provide more tax revenue. Of
current benefit due to the downtown core’s level of development, City services
are already in place servicing the DMC district, thus affording cost-efficiencies.
DRAF T DRAF T
46 DRAFT DRAFT 47
Phase 1 results (2015-2019)
+Phase 1 outperformed projections (original plan’s Phase 1
was estimated to be 5 percent of the total 20-year plan).
+Actual Phase 1 programs and investments resulted in
realizing a fiscal impact that is roughly 12 percent of the
DMC 20-year plan total.
Notes:
1. Estimated taxes from Construction impacts are from DMC DEED-certified investment.
2. Estimated taxes from Construction and Operations impacts include tax revenues from Corporate income, personal income, sales tax, hotel tax.
3. Property tax capacity calculations are still underway due to a proposed change in methodology.
The chart above shows the relationship between public investment, private investment and resultant tax
generation for the City of Rochester, Olmsted County and State of Minnesota.
Investment in the downtown DMC district has increased the tax capacity of downtown parcels during Phase 1 (2015-2019).
What was learned?
Investment in downtown infrastructure fuels growth of the tax
base and helps to fund needed repair as infrastructure ages while
supporting Rochester’s less dense land uses.
Additionally:
+New job creation is the main driver of tax revenue to the State
+Newly developed surface parking lots leverage pre-
existing community investment in street, sewer and utility
infrastructure;
+Downtown developments provide a higher share of taxes;
+The cost burden of downtown development doesn’t escalate as
much as revenue.
The progress to date for this goal was developed and
calculated based on the original methodology included in the
DMC Development Plan, which was adopted in 2015. See the
following section for details on how DMC EDA will revise this
methodology going forward.
What’s next?
DMC entered 2020 in a strong position ahead of the tax
projections included in the 2015 Development Plan. At this
writing, the economic impact of the COVID-19 pandemic is
yet to be fully understood, and DMC is in the midst of working
through scenario planning and will have new projections to
report related to how tax revenues will be impacted.
Based on the lived experience of the past 5 years, there are
a few updates to the economic model that should be made to
more accurately reflect performance against goals. At this time,
the DMC EDA would like to recommend the use of tax capacity
as a metric to quantify property value appreciation over time
in the DMC District. Over 2020 and 2021, the DMC EDA team
will work with City and other collaborators to recommend
updates to additional economic model components: including
job tracking methodology in a post-pandemic Rochester
and appropriate methodology to distinguish between new
construction and renovation to existing buildings.
+Performance in the areas of job creation and employment was
attributed to increased net new Mayo Clinic employment and
investments.
Public Spending
KEY
Certified Investment
Public Return
Development
Phase 1
$591M
PRIVATE
$372 M
$98.5M
CITY $71M
COUNTY $1.5M
STATE $15M
CITY
COUNTY
STATE
Estimated Tax Revenues, Phase 1
DRAF T
Phase 1 TOTAL
2015 2016 2017 2018 2019 PHASE 1
City
Taxes from Construction $36,000 $61,000 $47,000 $108,000 $122,000 $374,000
Taxes from Operations $150,000 $317,000 $380,000 $461,000 $1,684,000 $2,992,000
Property Tax Capacity still in progress
County
Taxes from Construction $17,000 $19,000 $22,000 $68,000 $78,000 $204,000
Taxes from Operations $47,000 $98,000 $176,000 $284,000 $458,000 $1,063,000
Property Tax Capacity still in progress
State
Taxes from Construction $5,231,000 $5,078,000 $4,514,000 $9,145,000 $9,591,000 $33,559,000
Taxes from Operations $10,785,000 $20,153,000 $24,233,000 $29,638,000 $39,210,000 $124,019,000
Property Tax Capacity still in progress
Phase 2-4
MAYO CLINIC
N
Source: Olmsted County Assessor Office
52
14
14
Value per Acre
5 Years of DMC
Tax Value: $0.828 Billion
Tax Value: $1.813 Billion
2.2x
52
14
14
Tax Capacity: $16 Million
Tax Capacity: $21 Million
1.4x
2015 2020
DRAF T
48 DRAFT DRAFT 49
Photo Here
BEFORE + AFTER
TAX CAPACITY
OF SAMPLE DMC
PROJECTS
BEFORE
One
Discovery
Square
Hilton
Berkman
Apartments
Berkman
Apartments
One
Discovery
Square
Hilton
AFTER
Photo Here
Photo Here
Photo HerePhoto Here
Photo HereDRAF T DRAF T
50 DRAFT DRAFT 51
GOAL 5:
Achieve the highest
quality patient, visitor,
and community
member experience,
now and in the future.
What is the goal?
This goal is the most qualitative of the five goals established in the DMC
Development Plan. It is at the heart of the entire DMC initiative as it pertains
to how downtown Rochester will become a world-class destination that also
remains true to its own community. Goal 5 is closely tied to the previous four
goals of sound planning that attracts investment, create jobs and generates
tax revenue for the City, County and State and place the DMC project in good
standing to create a destination experience. However, the goal’s fulfillment
will require development of future strategies and programs.
Why does it matter?
Initial research conducted before the DMC initiative launch revealed an
opportunity gap that necessitated improving the quality of the downtown
experience for visitors and community members. In 2011, DMC learned that
community members were willing to venture downtown for activities and
events, although, they viewed downtown primarily as a work and medical
environment that shut down at night. Additionally, research revealed that
community members were traveling just as often to the Twin Cities for activities
and entertainment. It was apparent that visitors and community members were
seeking greater energy, vibrancy and offerings in the downtown core.
Research also showed that patients spent approximately 30 percent of their
time inside Mayo Clinic and 70 percent in the community during their visits.
Patients did not differentiate time spent between clinic visits and their downtown
experiences. Patients and their companions desired social interaction. Research
also showed that patients wanted recommendations for where to eat or purchase
necessities.
Additional key findings:
+Only 42 percent of residents said Rochester is a fun place to live.
+Only 36 percent said they had confidence finding something fun and
entertaining downtown.
+Overall, perceptions of Mayo Clinic and Rochester are positive;
however, only 45 percent of patients, companions, and visitors said they
were “very satisfied” with Rochester in terms of the variety of activities
offered.
+Roughly 54 percent of patients and companions and 45 percent of other
visitors said they had confidence in finding something enjoyable to do
downtown.
From an economic perspective, improving the diversity of retail and
entertainment options, coupled with places to live downtown and a vibrant
streetscape will pay dividends by capturing additional spending from visitors
and community members. Both audience segments indicated a preference for
spending more time downtown.
[Source: DMC Qualitative Research/Northwestern University - 5/2011 and Directions
Research, Inc 2011]
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Phase 1 results (2015-2019)
There were three key areas of focus for DMC EDA's work
around achieving the highest quality patient, visitor, and
community member experience in Phase 1:
1. Experience framework;
2. Physical design of public spaces; and
3. Developing new tools in collaboration with other
community partners.
Experience Framework:
A series of workshops hosted with community partners
including the Rochester Downtown Alliance, Experience
Rochester, Mayo Clinic Patient Experience, and the City of
Rochester were conducted to develop the DMC Experience
Framework.
The group created a new tool to map emotional targets with
the aim of connecting to the hearts and minds of patients,
visitors and community members either living, working or
visiting downtown. The framework served as a tool for DMC
and community stakeholders to use when anticipating and
responding to experiential needs in the DMC District.
Additional work during Phase 1 also included development
of a strategy to target patients and their companions. The
research was conducted through a process methodology
called Journey Mapping, which aimed to better understand
the stresses that patients and companions experience while in
Rochester for medical visits. Previous research (as mentioned
above) showed that patients and their companions spend
approximately 70 percent of their time in the community
while visiting Mayo Clinic.
Based on understanding the patient’s lived experience,
three key areas of focus were prioritized:
+Arrival to Rochester;
+The shift from clinical care to free time; and
+End of day decisions around evening activities.
Community partners working with DMC EDA are piloting
experience strategies by first applying the Experience
Framework across the three parts of visitor and companion
journeys. The goal is to ease stress and improve the stay
experience.
Physical Design
+Heart of the City public realm
+Bike lanes
+Discovery Walk public realm
+Mobility planning
Tools/Programs
When in Rochester App
The App was developed in collaboration with DMC EDA,
Experience Rochester and Mayo Clinic in response to patient,
visitor and community member research. Building self-
confidence and easy to access digital tools were identified as
priority needs. A calendar of activities, map function, access
to Mayo Clinic, patient concierge, travel services in addition
to food, dining, and shopping are included.
RDA Ambassador Program
A team of ambassadors, each with its own focus on
cleaning, safety and hospitality, will be creating a downtown
environment that is clean, safe and welcoming every day of
the year.
What was learned?
+Additional research contributes to a better understanding of
community member experiences in the DMC District.
+Research has been conducted by several partner agencies;
research needs will be combined with partners to improve
understanding of community experience.
+A framework needs to be established for evaluating
experience over the remaining 15 years of DMC Plan
implementation.
What’s next?
Research has been conducted by several partner agencies,
primarily by the Rochester Downtown Alliance as part of
the programming it offers throughout the year. DMC EDA
will continue to collaborate to identify needs in public realm
design and programming to improve resident and downtown
workforce experiences.
Looking ahead, the opportunity is to better understand
key experience areas shared by the visitors and residents.
Identifying and building programming that addresses key
needs will result in their satisfaction and DMC’s success.
Another factor impacting the experience goal is that while
there was impressive private development in Phase 1, there
also was significant planning for new public realm areas
and new mobility systems. Now in Phase 2, construction
and implementation are well underway and of significant
community benefit to the downtown experience. When
completed, assessing both projects from the perspective of
excitement and impact on the user experience will need to be
conducted. Evaluating these projects to better understand and
inform future project planning will be essential.
To complete research and its application requires
collaboration across public and private agencies. To date,
strong partnerships have been developed among the City of
Rochester, Mayo Clinic, the Rochester Downtown Alliance
and Experience Rochester for the purpose of data sharing.
During Phase 2, data will again inform and improve the
downtown user experience. Partnerships will continue to be
leveraged and enhanced with the addition of new members in
order to realize the project’s ambitious goals.
Example of journey map for a patient visiting Mayo Clinic
Photo Here
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Looking Forward
DMC work is organized around four
implementation areas: private development,
mobility, public realm and streets and sewers.
The following section is a roadmap to the many
projects underway in each of these areas.
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T he DMC Initiative is structured
as a public-private partnership
with balanced responsibilities
and powers between the primary
stakeholders. This is an overview of the
roles and responsibilities of the various
entities and discussion of the framework
guiding DMC into Phase 2.
Destination Medical
Center Corporation
(DMCC)
+Governance and Finance: A public
non-profit corporation established
to oversee the implementation of
the DMC Initiative. Governed by an
8-person board, the DMCC includes
representation from the State,
Olmsted County, City of Rochester,
and Mayo Clinic. The DMCC has
review and approval authority over
the DMC Development Plan, projects
and funding requests within the DMC
Development District.
+Implementation: Project oversight
for compliance with intent of DMC
Act and goals and objectives of DMC
Initiative. Implements, reviews and
facilitates projects in accordance with
the DMC Act. Establishes strategies
and funding priorities. Approves
annual operating budgets, capital
improvements plans, project and
funding requests. With City, provides
reporting to State agencies.
State of Minnesota
+Governance and Finance: Provides
funding to Public Infrastructure
Projects (including General State
Infrastructure Aid and State Transit
Aid) in accordance with the terms
and conditions of the DMC Act. The
State also provides oversight to the
DMC Initiative through reporting
which is made to the Governor,
State Legislature, Department
of Employment and Economic
Development (DEED) and other state
agencies on an annual basis. The State
DMC
Structure
Photo Here
participates in decisions of the DMC
through its representation on the
DMCC Board (4 of 8 seats, appointed
by the Governor following approval by
the State Senate).
+Implementation: Oversight through
reporting and certification of private
investments. Ongoing funding of
Public Infrastructure Projects in
accordance with the DMC Act.
Mayo Clinic
+Governance and Finance: A
primary driver of private investment,
employment and visitation in the
market. Mayo Clinic participates
in decisions of the DMC through
its representation on the DMCC
Board (1 of 8 seats). Mayo Clinic also
appoints the Board of Directors of the
Economic Development Agency.
+Implementation: A primary driver of
ongoing investment and growth.
City of Rochester
+Governance and Finance: Provides
local matching funds to Public
Infrastructure Projects in accordance
with the DMC Act and Project
Agreements. The City acts as fiscal
agent for the DMC Initiative. The
City participates in decisions of the
DMC through its representation on
the DMCC Board (2 of 8 seats, one
each appointed by the Mayor and
City Council). The City Council also
has separate approval rights over the
DMC Development Plan, projects and
funding requests.
+Implementation: Identifies City
public works projects in Development
District for consideration/approval of
the DMCC Board and City Council.
With the DMC EDA, identifies/
facilitates local tax increment
financing and tax abatement
requests by private developers for
consideration/approval. Approves
projects and funding requests.
Oversees construction of City public
works projects. Ongoing operations
and maintenance of City projects.
Olmsted County
+Governance and Finance: Provides
local matching funds to transit-related
Public Infrastructure Projects in
accordance with the DMC Act. The
County participates in decisions of
the DMC through its representation
on the DMCC Board (1 of 8 seats,
appointed by County Board of
Commissioners).
+Implementation: Identifies County
public works projects in Development
District for consideration/approval of
the DMCC Board and City Council.
Oversees construction of County
public works projects. Ongoing
operations and maintenance of
County projects.
DMC Economic
Development Agency
(DMC EDA)
+Governance and Finance: A private
non-profit economic development
corporation, responsible for managing
the Development Plan process and
implementing the approved strategies
over time. The EDA does not have
approval rights over the Development
Plan, projects or funding requests.
+Implementation: Recommends
strategic priorities and facilitates
economic development projects
in each phase. With the City
administrative staff, identifies/
facilitates local tax increment
financing and tax abatement
requests by private developers for
consideration/approval. Facilitates
the development, implementation
and marketing of the DMC Initiative,
all in accordance with the strategies
incorporated in the approved
Development Plan, the DMC Act,
Project Agreements and the annual
operating budget as approved by the
DMCC Board and City.
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+Development Planning and
Promotion, including:
• Drafting and implementing the
development plan, including
soliciting and evaluating
proposals for development
and evaluating and making
recommendations to the
DMCC and the City regarding
those proposals
• Seeking financial support
for the DMCC, the City, and
projects
• Partnering with other
development agencies and
organizations, the city, and
the county in joint efforts
to promote economic
development and establish a
destination medical center
• Supporting and administering
the planning and development
activities required to implement
the development plan
+Development Services,
including:
• Developing and updating the
criteria for evaluating and
underwriting development
proposals
• Providing transactional services
in connection with approved
projects
• Working with the corporation
to acquire and facilitate the
sale, lease, or other transactions
involving land and real
property
• Assisting the DMCC or City
and others in applications for
federal grants, tax credits, and
other sources of funding to
aid both private and public
development
+Marketing, Outreach, and
Communications, including:
• Facilitating private investment
through development of a
comprehensive marketing
program to global interests
• Developing patient, visitor, and
community outreach programs
• Preparing and supporting the
marketing and promotion of
DMC
• Preparing and implementing
a program for community and
public relations
CITY OF ROCHESTER AND DMC
EDA COLLABORATION
KEY RESPONSIBILITIES OF THE DMC EDA
In cooperation with the City of
Rochester, the positions outlined below
were added in 2018 to specifically support
the implementation and oversight of
DMC projects and are funded using
DMC dollars that are credited toward the
$128 million that the City of Rochester
will be contributing to the overall DMC
initiative.
Collaboration
Leadership Team
Finance
Economic
Development
Transportation,
Infrastructure,
and Planning
Communications
Housing Tr ansit/
Parking
The DMC legislation identified several key responsibilities of the DMC EDA in
addition to its role as an advisory agency to the DMCC and City:
Photo Here
In order to operationalize necessary collaboration among City of Rochester and DMC EDA
teammates, the following collaboration teams were created. The structure of these teams
and relationships are outlined in the graphic below. These teams focus on seven key priority
areas of the DMC initiative including:
+Targeted Business Enterprise
Program Manager: This position
focuses on the targeted business and
workforce participation goals of the
DMC project and works to improve
outcomes and build capacity in the
City of Rochester.
+Special Projects, Project Managers
(2): These two positions focus on
the implementation of key objectives
of the DMC project like the public
realm projects, key development
opportunities and opportunities to
build out the Rapid Transit system.
+Rapid Transit, Project Manager:
This position is focused on the
implementation, grant applications,
and other priorities associated with
the creation of a Rapid Transit system.
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Looking Ahead
Public and private sector investment
in the DMC District are transforming
downtown Rochester. Private sector
expansion anchored by growth at the
Mayo Clinic and changing roles for the
City of Rochester (the City), Olmsted
County, and the University of Minnesota
are reshaping the marketplace and
experience of downtown. The public and
private partners of DMC are in a process
of realizing this significant opportunity.
As described, the needs of the DMC
initiative change over time. DMC EDA
and its partners require an operational
model that can adapt to evolving goals
in a nimble fashion. This is especially
important as the work of the DMC
EDA and the DMC Initiative evolves
from a focus on planning in Phase 1 to
implementation of public realm and
mobility projects in Phase 2.
Policy Framework for
Phase 2; Anticipated Use
of DMC Funds
Destination Medical Center
Corporation (DMCC) is responsible for
directing the use of $585 million in state,
county, and city resources, in accordance
with state law. As steward of these funds,
it is guided by goals reflected in the 2015
DMC Development Plan, evolving market
conditions, and community values and
priorities.
During the first phase, the DMCC
authorized the use of $98 million. A
significant portion of those funds
went toward supporting the public
infrastructure associated with private
development and the costs associated
with creating the development plan itself.
Entering Phase 2, DMCC remains
committed to stimulating continued
private development, emphasizing
investment that supports diversification
of the economy. Additionally, during
this phase, there will be an emphasis on
executing on public infrastructure that
was conceptualized and designed in Phase
1, specifically in the areas of Mobility and
Public Realm.
ACTUAL USES 2015-2019
$98M in public money was committed
to these five areas
29%
PRIVATE DEVELOPMENT
22%
MOBILITY
21%
PLANNING AND
IMPLEMENTATION
18%
STREETS / SEWERS
10%
PUBLIC REALM
PHASE 2 (2020-
2024) PRIORITIES:
+ Transformative Private Development:
Focus on developments that diversify or
support diversification of economy (e.g.,
Discovery Square, Food economy, Main
street retail, Housing Affordability);
+ Mobility Program: Accelerate
transportation program consistent with
adopted Integrated Transit Studies;
+ Public Realm: Extraordinary public
space at the heart of every sub-district,
that forms the connective tissue of
people oriented, walkable, accessible
green space.
Based on the formula in state
legislation, it is anticipated that $200
million +/-, will be available in Phase 2.
The table below sets out a framework for
the use of DMC funds during Phase 2.
When compared to Phase 1, significant
increases in mobility and public realm
expenses are offset by a reduction in
program and operations. This framework
will serve as a guide to assist in the annual
CIP budgeting process and in decision-
making surrounding private development
proposals.
Phase 1 Actual
2015-2019
Phase 2 Proposed
2020-2024
Mobility $21.5M (22%) $60-75 million (30-37.5%)
Public Realm $9.8M (10%) $50-60 million (25-30%)
Streets / Sewers $17.3M (18%) $20-40 million (10-20%)
Private Development $28.9M (29%) $20-45 (10-22.5%)
Operations $20.7M (21%) $15-20 million (7.5-10%)
Total $98.5M $200 million +/-
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In the U.S., almost all homes, offices,
hotels, restaurants, retail and enter-
tainment venues are built by private
developers. In the context of the DMC
Development Plan, private development
falls into two main categories:
1. Investments by Mayo Clinic
for renovating or building new
facilities in Rochester; and
2. Investments by other private
investors and developers to
build apartments, offices,
hotels and RD&E (Retail, Dining
and Entertainment) places, of-
ten within a mixed-use project.
This means a single building
may contain two or more of
the aforementioned uses –
such as an apartment building
with retail on the ground floor.
The decision of what is allowed to be
built in the DMC District is governed by
Rochester’s zoning code, which controls
the land use map for the DMC District.
The timing and amount of development
that occurs is shaped by the infrastruc-
tural investments made by the State,
County, City and DMC and is driven by
market demand. Without demand from
the market (i.e. people who want to live/
work/learn/play/shop/invest in a given
area), no private development occurs.
Infrastructural investments like sewer
capacity, bike lanes, roads, parks, etc. lay
the groundwork for private investments
to follow, as explained in the previous
section. This relationship between infra-
structural investments in tandem with
private development is at the foundation
of the DMC Act.
A best practices benchmark for public
spending and private investment in a
given area is approximately 10:1, which is
captured in one of the goals of the DMC
project. For this goal, the $585 million of
public money is meant to attract approx-
imately $5.6 billion of private investment
over 20 years. Mayo Clinic has commit-
ted $3.5 billion of investment over 20
years, and DMC in collaboration with its
partners is meant to attract $2.1 billion in
additional private investment.
Transformative
Private
Development
CONTEXT AND BACKGROUND
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DMC PLAN PRIVATE DEVELOPMENT PROJECTIONS
Within the DMC Development Plan, space type and area projections are included that establish five-
year milestones for the project. These targets were based on market demand studies conducted
during development of the plan in 2013-15. Based on the studies for Phase 1 development, targets for
healthcare practice, research, education, hotel rooms, retail, and residential units were created.
Program Comparison Mayo Clinic
Investments + DMC Major Projects
Phase 1
Actual
Phase 1
Orginal Plan
Phase 1
Difference
20-Year Plan
Remaining
% of Total Plan
Completed Phase 1
Property Type Unit
Practice (Mayo Clinic)
Research (Mayo Clinic
+ Non-Mayo Clinic)
Research (Mayo Clinic)
Research (Non-
Mayo Clinic)
Education (Mayo Clinic
+ Non-Mayo Clinic)
Hotel
Office
Retail
Residential
Market studies predicted significant
activity in the development of additional
healthcare space in the DMC District.
This development is primarily focused
on the renovation and construction
of new space to support Mayo Clinic’s
practice and is captured in the Investment
figures Mayo Clinic reports annually.
Further, market studies forecasted the
development of research space in the
area of biomedical technology, which is
embodied by the vision for Discovery
Square, a sub-district for innovation of
healthcare that diversifies Rochester’s
economy while building on the success of
its biggest asset, Mayo Clinic.
As shown in the table, the DMC
initiative outperformed its Phase 1, five-
year projections in most categories. The
Phase 1 category highlights the difference
between the actual performance in
the first five years to plan projections.
Significant activity occurred in the areas
of healthcare, research, office, retail and
residential.
DMC Development Plan market studies
show that the first phase identified the
opportunity to develop 760 hotel rooms;
only 280 were completed during Phase 1.
Additional hotel development (605 hotel
Another primary need for a destination
medical center is the development of
additional hotel space. Within the market
demand studies, 760 hotel rooms were
identified to be developed between
2015-2020. The original plan identified
hotels as a key element of infrastructure
needed for long-term success of the DMC
District.
Finally, the market studies identified
demand opportunities for 450 units of
residential and accompanying retail. The
new park plans, transit system, trailways,
redesigned streets, and new or renovated
buildings with street level retail and
entertainment options would improve the
rooms) is currently under construction
and slated to open in 2020 and 2021. In
addition, another 505 residential units are
currently under construction and so will
be complete in 2022.
As outlined in further detail
in Section 2 of this document,
Actual Phase 1 construction
investments was nearly $1
billion; $127 million (15%)
greater than plan for Phase 1
and 17% of the 20-year DMC
Plan investment goals ($5.6BN).
downtown experience. This establishes
a soughtafter living experience, furthers
the recruitment and retention of Mayo
Clinic employees and supports nearby
housing options for new employees in the
burgeoning biomedical technology sector
in Discovery Square.
Overall, based on the first five years
of private development, the DMC
District is well-positioned for the next
five years. Mayo Clinic demonstrated
its commitment, and DMC EDA and its
partners were able to attract and secure
private development to meet and surpass
original project targets.
It is anticipated that the COVID-19
pandemic will impact the private
development market. These impacts are
discussed later in this section.
PHASE 1 PROGRESS
(2015-2019)
The table demonstrates private development progress toward the market demand projections
outlined in the previous section.
SF 497,000180,000 +317,000 523,000 49%
SF 4,0000 +4,000 350,000 1%
SF 2,381,0001,200,000 +1,818,000 4,419,000 35%
SF
260760 -500 1,120 19%
SF 82,00050,000 +32,000 238,000 26%
SF 80,000----
SF 417,000----
Rooms
80,0000 +80,000 230,000 26%
Units 460450 +10 2,390 16%
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SUSTAINABILITY AND EQUITY CONSIDERATIONS
Given the sustainability goals stated in the DMC Development Plan, many of which focus on reducing
resource consumption across the district over the course of 20 years, it is critical to identify and
implement strategies to reduce the impact of new development in the downtown core. To accomplish
this, DMC created two strategies.
1. DMC District Design
Guidelines document
This planning framework identified
strategies for private development
projects that would establish a
coordinated and sustainable design
approach for buildings, streetscape,
neighborhood adjacencies, public realm
concepts and other building design
considerations.
These strategies were used throughout
Phase 1 to evaluate private development
project applications and to ensure that
similar project approaches and standards
applied to development projects across
the District. This holistic guide set a
baseline for sustainability concepts that
aligned with the vision for the DMC
Initiative.
Workforce and Targeted Business Categories
Women Construction Participation
Women Professional Services Participation
Minority Construction Participation
Minority Professional Services Participation
Targeted Business: Construction
Targeted Business: Professional Services
6% 3.6%
6% 32.8%
4% 15.2%
4% 6.5%
4% 7.2%
4% 5.12%
2015 Goal Performance
(2017 - 2020)
2. DMC Sustainability
Requirements
Projects receiving DMC infrastructure
funding are required to incorporate key
sustainability goals as follows:
DMC Sustainable Building Targets for
Private development:
+Energy Use Index target from project’s
inception
• Must be 20% below energy code
+75% diversion rate for construction
waste
+35% water reduction from baseline
+50% irrigation reduction from baseline
+Alternative Transportation elements
like bike parking, EV readiness
+Third-Party Certification
+Energy Benchmarking after project
completion
Targeted business and workforce
participation goals used either reported
employee hours or contract amounts
as measurement. The DMC project
through its first phase outperformed most
targets except for the participation of
women construction workers on projects
underway in 2015-2019. As a result of
this performance, the City of Rochester
and DMC EDA are preparing to update
the minority and women enterprise and
workforce participation goals in 2020.
One lesson learned during Phase 1 is the
small amount of local Rochester firms
that are women or minority-owned as an
additional consideration in addition to
contractors that employ people of color
and women. Looking ahead, staff leading
this effort will continue to focus on
building capacity and workforce pipelines
in Rochester to promote the use of local
firms whenever possible.
In order to achieve DMC’s sustainability
targets, the building goals are focused
on energy and water efficiency, waste
minimization, sustainable transportation
approaches, design certification and
operational performance. Collectively,
these goals ensure a holistic approach
for sustainable design, construction and
operation that ensure new development
aligns with the 20-year environmental
targets of the DMC project.
Another priority establishes equitable
workforce outcomes for projects receiving
DMC funds. To achieve this priority, the
City of Rochester set targeted business
goals and workforce participation goals
for minorities and women. The targets
established at the beginning of Phase 1,
combined with current results, are included
in the table to the right.
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MAJOR PROJECTS FOR PHASE 2
Major projects are in the pipeline for
Phase 2 of the DMC Development Plan
(2020-2024). As a result of the transit-
oriented development work to advance
the rapid transit circulator, significant
market demand projection work was
conducted to establish updated private
development metrics for the remainder of
the DMC initiative from 2020 – 2035.
Also, in 2018 and 2020 DMC EDA
and City of Rochester commissioned
market demand studies to inform and
refine their approach to recruiting private
development. Both analyses underscored
the importance of doubling down on
efforts in Discovery Square and the
development of a biomedical technology
sector.
In 2020-2024, work will continue
to build a second privately-developed
research facility in Discovery Square,
building off the success of One Discovery
Square, which opened in 2019. This
second facility is projected to be 120,000
square feet and will continue to recruit
medical technology firms of varying
sizes to work alongside Mayo Clinic
researchers to develop the next century’s
medical innovations.
A second opportunity for private
development is workforce housing.
Housing development in Phase 1
occurred in two primary rent ranges –
market rate and units that are rented at
60% area median income (60% AMI).
While the Rochester market created
nearly one thousand affordable housing
units in five years, the activity only
served a portion of the community,
leaving significant unmet gaps in other
income ranges. Looking ahead to Phase
2, noteworthy opportunities include
establishing residential units at varying
income levels and bringing ownership
opportunities to the downtown in the
form of condominiums and townhomes.
A third opportunity for the private
development in Phase 2 concerns the
public realm and conceptual development
planning for the Downtown Waterfront
and Saint Marys public realm projects.
This approach is aligned with the DMC
vision of creating a signature public
realm for each sub-district. Looking
ahead, similar to the success realized in
Heart of the City and Discovery Square,
this conceptual public realm planning
will help to establish a vision for these
districts that private investment can rally
around.
Finally, economic market demand
projections were established in order to
prepare an application for federal transit
support of the rapid transit solution
in downtown. As a result of this work,
updated market demand projections for
the next 15 years were established. These
development targets are captured in the
table.
COVID-19 CONSIDERATION AND POTENTIAL IMPACTS
There are several ways that the
COVID-19 pandemic could impact
private development activity within the
DMC District over the next five years:
+Willingness or ability of investors
to advance projects in an uncertain
economy
+The impact of the pandemic on
specific sectors
+Societal inequities exposed or
exacerbated by the pandemic
+Construction worker safety
Private Market
Thus far, private developer interest
remains strong in Rochester. Current
projects under construction are expected
to be completed, and DMC EDA and
City of Rochester are working through
approvals for potential new projects for
the district.
There are sectors of the Rochester
community that include hotels, Mayo
Civic Center and the Rochester
International Airport that have been
severely impacted by the pandemic and
resultant travel restrictions. The long-
term impact on the hotel sector remains
to be seen and will likely be dictated
by travel to Rochester and the ability
to conduct conventions and sporting
events. At the direction of the DMCC
board, DMC EDA commissioned an
economic analysis scenario study to
better understand the current and
possible future impacts of the COVID-19
pandemic on Rochester’s economy.
Changing Cities
As a result of the stay-at-home order
and social distancing requirements
associated with limiting the transmission
of COVID-19, work has shifted from
the workplace to remote work where
possible. This has changed the vibrancy
of downtowns across the country, and
Rochester is no different.
Looking ahead, private development
targets may need to adapt to changes
in the office market, where additional
downtown space could become available
in the existing building stock. Further,
living preferences of community
members and new community members
could shift over the long-term as a result
of the pandemic and its impact on civic
life, community events, and availability
of downtown retail and entertainment
options.
Community Impact
COVID-19 stymied activity in the
service industry, impacting its workers
and its ties to affordable housing, reliable
transit and opportunity. The federal
government responded with several
directives including a temporary worker
stipend and eviction moratorium. While
these measures helped lessen the blow to
vulnerable communities, these measures
were initially set up to be temporary in
nature. Communities continue to struggle
with limited transit service; opportunities
for other employment are scarce. Looking
ahead, a focus on developing workforce
housing and reliable transit service
will serve the DMC initiative and City
of Rochester well as solutions to build
resiliency in the community and enhance
its ability to weather significant shocks to
its environment.
Construction Industry
Finally, as outlined in other sections,
the pandemic could impact the
availability of construction workers
and project schedules. Moving forward,
protocols established by contractors and
the broader construction industry need
to be followed in order to minimize
the pandemic’s impact to construction
worker health and continue progress on
current and future development projects.
(2020-2024)
Project Name Completion
Date Total SF Total Project Cost Construction Type Primary
Use
Hotel Indigo (former Holiday Inn) 2020 86,000
(180 rooms)$10,500,000 Full building reno -
retain use Hotel
Urban on First (The Maven) 2020 239,000
(155 units)$30,810,000 New Construction Residential
Berkman (Alatus)2020 524,000
(350 units)$85,000,000 New Construction Residential
Eleven02 2021 170,000
(250 rooms)$4,160,000 New Construction Hotel
Hyatt House 2021 179,00
(175 rooms)$6,940,000 New Construction Hotel
Program Comparisons: Mayo Clinic
Investments + DMC Major Projects
Phase 2
Projections
Original Plan
Already in
construction
in 2020
COVID-19
Projected Impact
New
Projections
for Phase 2
20-Year
(2035 Plan
Remaining)
Property Type UNIT
Practice (Mayo Clinic) SF 1,700,000 4,419,000
Research (Mayo Clinic + Non-Mayo
Clinic)SF 180,000 523,000
Education (Mayo Clinic + Non-Mayo
Clinic)SF 210,000 350,000
Hotel Rooms 240 605 515
Office SF 50,000 230,000
Retail SF 110,000 238,000
Residential Units 750 505 1,885
Scenario planning
currently in progress
DRAF T DRAF T
70 DRAFT DRAFT 71
What do we mean when we say
mobility? In the 2015 DMC
Development Plan, nearly
one-third of its content was devoted
to transportation, demonstrating how
critical this element is to the overall
DMC initiative. This five-year update
reflects on today’s understanding of
the plan’s goals, which means a shift in
language as we enter into Phase 2 to
better align with the DMC Development
Plan goals.
DMC’s approach to transportation
continues to evolve. Mobility
encompasses the gamut of transportation
options — increasingly including newer
options like shared cars, bikes, scooters,
and autonomous vehicles. But the larger
objective is to guarantee that people can
get to jobs, health appointments, parks
or shopping whenever they want or need
to go — and that they are not deterred
by transportation reliability, affordability
or safety concerns.
Mobility equates to access. Simply
put, transportation is something we do;
mobility is something we have.
Peer studies show that the
catalyst for economic and
community activity is found
in quality urban streets that
are walkable, connected, and
served by high-quality transit.
Downtown districts in cities
rated as having a high quality
of life have in common a
high-quality downtown that
functions as the city’s cultural
and economic heart.
CONTEXT AND BACKGROUND
Mobility
Photo Here
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72 DRAFT DRAFT 73
43%
[26,800]
30%
[18,750]
13%
[8,100]
14%
[8,750]
Transportation elements of the
2015 DMC Development Plan outline
investment concepts to
improve access to downtown Rochester
and improve circulation within
downtown for residents, workers, and
visitors on transit, foot, and bicycle.
These transportation principles were first
identified in the Rochester Downtown
Master Plan and reinforced by the DMC
Development Plan, and serve to inform
improvements to parking, transit, streets,
active transportation, wayfinding,
and regional commuter service. These
principles were developed into detailed
studies in the DMC Transportation &
Infrastructure Program Integrated Transit
Studies (ITS) prepared for DMCC and the
City of Rochester and issued on June 20,
2018.
The principles established to guide
future DMC mobility actions and
investment are:
+Making it easy, affordable, and
convenient for people to get to
downtown Rochester, whether they
are from Southeast Minnesota or
journeying from across the globe;
COMMUTER MODE OF TRAVEL TODAY
35,250
Current total
number of
employee
commuters
62,400 = NUMBER OF
EMPLOYEE COMMUTERS
COMMUTER MODE OF TRAVEL: 2035 TARGET
+Bringing 30 percent of the workforce
to downtown Rochester on transit by
2035;
+Creating a “park once” downtown
environment connected by a frequent
downtown circulator;
+Prioritizing and building shared
parking for economic development;
+Creating world-class streets designed
for people;
+Creating an exceptional place
for healthy, human-powered
transportation;
+Forming a downtown Rochester
Access Authority;
+Investing in sustainable transportation
infrastructure and programs that
reduce the city’s ecological footprint;
+Deploying DMC funding to leverage
public and private transportation
infrastructure funding; and
+Establishing and maintaining a
transportation network that is
accessible and inclusive to people of all
ages, abilities, and states of wellness.
The DMC Development Plan projected
that by 2040, downtown Rochester will
grow with significant increases in the
number of workers, visitors (including
medical patients and convention/event
traffic), and residents moving about the
district. With this growth in activity
will come significant growth in travel. If
current travel choices remain unchanged,
the level of downtown vehicle traffic is
expected to grow by over 60 percent,
resulting in significant peak period traffic
congestion and demand for over 16,000
additional parking spaces, which is over
50 percent above current parking supply.
While the COVID-19 pandemic
may impact projections, especially in
terms of the number of workers that
will come downtown, at this juncture
too much remains uncertain to issue a
re-calculation. The principles that shape
our mobility strategy remain in place,
as they established a flexible framework
for implementation that can adapt to
evolving conditions over time.
71%
[25,000]
12%
[4,250]
10%
[3,500]
7%
[8,100]
Photo Here
62,400
Total projected
number of
employee
commuters
DRAF T DRAF T
(2015-2019)
PHASE 1 PROGRESS
74 DRAFT DRAFT 75
FROM VISION TO
PROJECT IMPLEMENTATION
T he purpose of each study was to refine work completed
in the 2015 DMC Development Plan visioning process
at a level of detail needed to generate public acceptance
of proposed solutions and support of project funding. Each
study examined the feasibility of proposed improvements in the
context of limited right of way availability, cost-effectiveness
of the proposed approach to delivering improvements, and the
degree of public acceptance for improvements.
The studies were conducted in an integrated framework in
order to assess how infrastructure improvements in each area
MAJOR PROJECTS FROM PHASE 1
(2015-2019)
Mobility Project
DMC 2015 Plan Vision and
Framework
High-level vision for
transportation in the
DMC District
dmc.mn/press-
room/#devPlan
www.rochestermn.gov/
departments/public-
transportation/transit-
planning/tdp-background
RPT Transit
Development
Plan
Master Plan May 2015
2015
2018
Completed
in 2019
Completed
in 2019
Completed
in 2019
Five-year planning
document outlining
services and routes
ITS
Framework for
Implementation
Integrated transit
plan for downtown
www. rochestermn.
gov/ departments/
public-works/dmc-
related-transit-studies
Parking
Ramp 6 Built Project
New parking ramp to
accommodate downtown
parking needs
www.rochestermn.gov/
Home/Components
/FacilityDirectory
/FacilityDirectory/379/1540
www.rochestermn.gov/
departments/public-works/
construction-projects/4th-
street-sw
4th Street
Reconstruction
Street
Improvement
Street reconfiguration
to include protected
bike lanes
www.rochestermn.gov/
departments/community-
development/planning-zoning/
transit-oriented-development-
tod-and-infill-redevelopment-r2x
TOD Zoning /
R2x zoning
Zoning
Policy Change
Allowing for denser
development along transit
corridors and adjacent
neighborhoods
Type Date Issued Description Link
PREFERRED SOLUTIONS
AND STRATEGIES
The ITS transportation investment
framework reflects major changes
transpiring in Rochester over the next 20
years, including:
+Intense land use development in the
downtown area, with concentrated
employment growth particularly in
districts influenced by the presence
of Mayo Clinic;
+Rise of downtown as a dense residential
neighborhood;
+Increased demand for downtown
access; and
+Changing travel behavior, consumption
preferences, and essential living
infrastructure.
The ITS transportation investment
framework builds on and refines these key
tenants of the DMC Development Plan:
+A greater emphasis on land use
patterns that encourage short trips;
+An effort to make walking and
bicycling safe, comfortable, and
enjoyable;
+The opportunity for street networks
to be developed that effectively
balance the use of modes to optimize
movement of people over cars and
facilitate movement of goods;
+The expansion of transit systems
that link people to jobs, provide high
quality service throughout the day, and
are accessible to users of all ages and
abilities; and
+Accommodation for all users, including
those with mobility impairments,
disabilities, and other special needs,
and which enables residents and
visitors to be active, recreate, and
exercise outdoors while being part of a
vibrant neighborhood.
The ITS proceeds to outline preferred solutions and strategies in much greater detail
and are included in the Appendix. Following is the summary table of other planning and
implementation initiatives that occurred from 2015-2019 to advance DMC’s mobility goals:
would contribute to an overarching cohesive transportation
network. That network is planned with a variety of modes of
travel – car, transit, bike and on foot – that would accomplish
the goals identified in the DMC Development Plan.
Findings from the 2018 Integrated Transit Studies were jointly
considered across four areas of focus:
+Transit Circulator Study
+Street Use and Operations Study
+Parking and Travel Demand Management Study
+City Loop Study
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o
t
o
H
e
r
e
DRAF T DRAF T
76 DRAFT DRAFT 77
MAJOR PROJECTS FOR PHASE 2
(2020-2024)
Mobility Project
Rapid Transit
Circulator
Electric bus
rapid transit route
4-mile route, high-
frequency bus rapid
transit amenity
www.rochestermn.gov/departments/administration/downtown-rochester-high-amenity-circulator-rapid-transit-route
www.rochestermn.gov/home/showdocument? id=27639City Loop Protected bike
lane network
Connected and protected bike lane
network through downtown core.
Link between existing trailways
Arrive
Rochester
Transportation
Management
Association
Program to develop and encourage
alternative commuting habits https://arrive.agilemile.com/
Unified
Development
Code
Building code
update
Update to land use and development
code that translates Comprehensive
Plan (2018) to actionable approach
www.rochestermn.gov/
departments/community-
development/unified-
development-code-project
City Pedestrian and
Bike Master Plan
Master
Planning Effort
Update and coordinate
pedestrian infrastructure across
City (including downtown)
-
North Broadway
Construction
Street
Reconstruciton
Street project to update
lanes, pedestrian and
bike amenities
www.rochestermn.gov/home/
showdocument?id=9317
Electric Vehicle
Infrastructure
Vehicle charging
Network
Planning document for visitor and
resident vehicle charging -
Type Description Link
From Concept to Implementation
During Phase 2 of the DMC Development Plan, several initiatives will move forward. Below is a snapshot of major
mobility initiatives currently underway, in addition to the anticipated timeframe for their implementation.
During the first five years of project
planning, DMC and its collaborators
made sustainability a priority. DMC
took a triple bottom-line approach to
sustainability planning in order to balance
decision-making across three key areas:
natural environment, financial returns,
and social equity improvement.
The integrated transit planning
approach highlights ways to create a
resilient and equitable downtown by
encouraging a range of modes of travel.
These choices help address the different
needs of downtown workers, residents,
and visitors, ensuring that with more
options, the approach will be more
adaptive. With seasonal weather changes,
or as the traffic congestion accelerates
throughout the day, the plan recognizes
the importance of providing mobility
options that accommodate user needs.
The range of options is important,
as are their prevalence, placement and
cost. Going forward, sustainability and
equity must continue to be part of the
planning process in order to ensure the
transportation planning and mobility
options conserve natural resources and
are equitably distributed.
SUSTAINABILITY AND
EQUITY CONSIDERATIONS
COVID-19 CONSIDERATION
AND POTENTIAL IMPACTS
The COVID-19 pandemic has impacted mobility planning, approach and implementation
considerations. Three current observations pertaining to potential long-term impacts for
the health and well-being of commuters include:
1. Commuter Habits
In March 2020, many employees
working in downtown Rochester
transitioned from office-based to
remote work (typically from home) in
order to comply with social distancing
guidelines. As a result, a portion of
the existing downtown workforce
no longer needed to rely on mobility
options for work commutes.
As the pandemic continues,
a significant percentage of the
downtown workforce continues to
work from home or to work with
a staggered in-office schedule.
Therefore, projections pertaining to
commuters will need to be updated to
reflect the changing paradigm of the
modern workplace and the safety
of its workforce.
2. Cleanliness of
Mobility Options
The pandemic highlighted the
necessity for cleanliness of transit and
other mobility options. The public
is keenly aware of the importance
of clean surfaces and equipment.
Ultimately, the success of shared
mobility options will be predicated
on the community’s trust that public
transport options are safe.
Currently, technologies that
include UV lights are being used
in public transportation vehicles to
kill germs and ensure the safety of
riders. Practical approaches to ensure
commuter safety and technological
advancements will need to be
routinely reviewed and employed for
ongoing success.
3. Community Outdoor
Infrastructure Use
As a result of the pandemic and
social distancing protocols,
more community members
are home-based and have been
exploring the outdoors to relax,
exercise, or simply get some
fresh air. Several months into
the pandemic, use of Rochester's
trailways has increased dramatically.
As cases of COVID-19 subside,
the trend for outdoor activity, and
specifically the usage of pedestrian
and bike infrastructure in
downtown and throughout the rest
of the city will need monitoring to
inform future planning efforts.
MNDOT CAV
prototyping Pilot Project
Year-round collaboration with
the State of Minnesota to test
autonomous vehicle technology
www.dot.state.mn.
us/automated/docs/
rochester-av-shuttle.pdf
DRAF T DRAF T
78 DRAFT DRAFT 79
Public realm is our civic commons.
Generally, it means outdoor space
within cities and towns that is
accessible to the general public – that
includes sidewalks, streets, parks,
plazas and other shared places. It is
the connective tissue of a city, and the
DMC District public realm aims to be
walkable, green,
people-oriented and accessible.
Public space, public realm, and
placemaking are interrelated; their
development, use and ultimate success
is largely tied to input from the
community as it relates to design and
program elements that invite activity
and use.
The first Guiding Principle of the 2015
DMC Development Plan emphasizes the
central role that public realm plays in
the vision for the DMC District (DMC
Development Plan, Section 1, p 6):
“The DMC Initiative sets
forth a plan to transform the
epicenter of Rochester…into a
vibrant urban center and one
of America’s model cities. This
is accomplished by creating
a vision for an integrated
downtown, unified by six
sub-districts that are [each]
anchored by unique places
designed to create experiences
to attract and retain residents,
visitors, employees and
investors to the community.
This is a place for Rochester;
it is envisioned by its citizens.
It reflects the principles, ideas
and culture unique to this
community.”
To fulfill this direction, compelling
visions for public space were
developed. Further detail on their
progress and next steps are outlined in
the following sections.
Public Realm
CONTEXT AND BACKGROUND
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80 DRAFT DRAFT 81
PHASE 1 PROGRESS
(2015-2019)
Since adoption of the DMC
Development Plan, the DMCC
Board reinforced strategic priority
areas to be developed by the
Project. For Phase 1 of the project
(2015-2019) the Heart of the
City and Discovery Square sub-
districts were among the first set
of priority public realm projects,
though progress has been made
on additional projects as well.
HEART OF THE CITY
In the Heart of the City sub-district,
public realm planning began early
in Phase 1. To help inform early
design concepts, the DMC Economic
Development Agency (EDA) partnered
with several organizations to lead a
Prototyping Festival (September 2016)
that crowd-sourced public realm
planning ideas and concepts from the
community. Several of the concepts have
been incorporated into the project’s final
design. Beyond the prototyping festival,
City and DMC partners led community
working groups to collaborate through
conceptual and schematic design
processes. In 2018 and 2019, design
documents and construction documents
were finalized with participation
once again from the community and
construction commenced early in Phase 2
(April 2020).
CHATEAU THEATRE
During this same period, and with the
understanding that a robust arts presence
in downtown will further enhance its
vibrance, DMCC in partnership with
the City and Mayo Clinic purchased,
renovated and re-opened the historic
Chateau Theater that is located in the
Heart of the City adjacent to the planned
public realm project. The community has
expressed considerable interest in the
revitalization of this building to further
leverage the public realm investment
and as an opportunity to amplify
programming offered by a range of
organizations.
DISCOVERY SQUARE
In the Discovery Square sub-district,
the DMC EDA, City of Rochester, and a
range of community partners completed
a schematic design for Discovery Walk,
the signature public realm space for the
sub-district.
Discovery Walk is a five-block linear
parkway meant to connect the Heart of
the City public realm space to another
downtown park adjacent to the City’s
Soldiers Field Park, a multi purpose space
that houses a veteran’s memorial public
golf course, playground, playing fields
and community gathering space.
The DMC EDA partnered with a
range of stakeholders, including the
City of Rochester, business community,
non-profits, Mayo Clinic and a group of
community co-designers (connectors
to under-represented communities) to
inform the conceptual approach for the
park. The success of the community co-
design process will continue to inform the
project through completion of its design
development. Additionally, regional
artists will assist with art integration
within Discovery Walk.
The DMCC Board approved the
advancement of the Discovery Walk
project into Design Development in the
very beginning of Phase 2 (2020).
SAINT MARYS PLACE
In the Saint Marys sub-district, the
DMC EDA and City of Rochester, in
concert with community partners,
developed a schematic design for the
area surrounding 2nd Street SW and
Mayo Clinic Saint Marys Campus.
This signature public space is meant
to transform the West Second Street
downtown experience from a work
environment to one that also cultivates
live and play opportunities for employees,
visitors, and community residents.
Community engagement was critically
important during the development of this
sub-district’s conceptual plans.
Public Realm
Project
Heart of the
City – Phase 1 Design and financing
Signature public space project located in
the center of downtown. This project will
be completed in two phases, with the first
phase entering construction in 2020.
https://heartofthecity-
dmc.com/hoc-phase-1/
https://dmc.mn/
discovery-walk-a-place-of-
connection/
Discovery Walk Concept and
schematic design
Signature five-block linear park
extending from Heart of the City to
Soldiers Field Park. This project will
enter construction in 2021.
Saint Marys
Public Realm
Chateau Theatre
Concept design
City, with support
from DMC and Mayo
Clinic, purchased, did
interim renovation and
activation
Schematic design concepts for
signature public realm space in the
Saint Marys sub-district.
Restoration of beloved
community venue.
https://dmc.
mn/wp-content/
uploads/2018/07/DRAFT-
St-Marys-Plan.pdf
http://www.rochestermn.
gov/departments/
administration/chateau-
theatre
Work done in
Phase 1Description Link
In the development of conceptual
plans for public realm projects, the
design team comprised of members
from DMC EDA and City of Rochester
placed sustainability at the core of its
planning. For each design, the team
focused on opportunities to reduce
consumption of resources, such as water
and energy. Additionally, the team
worked to reduce waste impacts, identify
materials comprised of recycled or rapidly
renewable materials that are produced
locally, prioritize native fauna, and ensure
that each project reflected the visions put
forth by the community.
Regarding equity, DMC EDA and the
City of Rochester have piloted several
new ways to incorporate more equitable
practices into the project development
process.
In the Heart of the City Public
Realm design development, DMC
EDA commissioned a study to better
understand its community engagement
approach through an equity lens, which
identified several areas of opportunity
for improvement. This study informs the
team’s future direction.
Building on the Heart of the City
findings, an innovative new approach
was taken during the concept design
of Discovery Walk to ensure the
project reflected the diversity of the
community, inspired by first hearing
from a range of voices. This approach
is called a community co-design
process. Community members from
several historically under-represented
communities in Rochester were hired
to participate as members of the design
team, and were compensated for their
time and expertise, just as the architects,
planners and other hired professionals are
in the typical design process.
The outcome at the end of concept
design was an explanation of the design
elements, programmatic changes and
policy considerations that the City, DMC
and others project partners will use to
inform Discovery Walk’s design going
forward. The outcome of this process will
be to produce public spaces that should
better fulfill the DMC Development Plan’s
goal to create “a place for Rochester…
envisioned by its citizens. It reflects the
principles, ideas and culture unique
to this community.” Several of the
community co-designers will continue
to participate as part of the design
team throughout the entire design and
construction process in Phase 2.
The success of this initial approach
to planning will be replicated for future
projects and initiatives. Honoring and
financially compensating community
co-designers will continue to ensure
initiatives reflect the community’s
vision for highlighting and celebrating
its diversity while providing a pathway
to breaking down systems of structural
oppression and racial bias.
SUSTAINABILITY AND EQUITY CONSIDERATIONS
Photo
Here
Photo
Here
Photo
Here
Photo
Here
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82 DRAFT DRAFT 83
MAJOR PROJECTS FOR PHASE 2
(2020-2024)
From Concept to Implementation
Planning and construction initiatives
in Phase 2 are underway that will be
developed over the course of the next
four years, from 2020 to 2024. The first
phase of Heart of the City construction
began in spring 2020 with completion
expected in 2021 of the eastern portion
of its public space. After renovation, the
historic Chateau Theatre has already
reopened as a multi-use venue.
Discovery Square plans are set to
carry the schematic level of design
of Discovery Walk through design
development and construction
documents with construction start
planned in 2021. Community residents
from underserved and historically
underrepresented communities will
continue to be engaged on the design
of the public space; stipends to cover the
cost of transportation and childcare will
be provided.
Tentative plans are in place for Saint
Marys sub-district toward the end of
Phase 2 to carry the conceptual work
through its later stages of design. This
work will likely be completed in concert
with the development of the Rapid
Transit Project, which is outlined further
in the Mobility section. Plans for this
transportation corridor will include
public realm space, thus ensuring that
the connective tissue of the station areas
located adjacent to neighborhoods will
contribute to design and recognition as
quality public realm.
Also in Phase 2, initial planning for the
Downtown Waterfront sub-district public
realm space will commence. Conceptual
plans will be developed to realize the
vision for creating a signature public
space that connects to other downtown
public spaces. The possibility exists to
connect development to historic 3rd
Street, a popular destination for visitors
and community residents, in addition to
connecting to other large private property
parcels within the sub-district along the
Zumbro River.
Since a signature public realm
component is called for within each of the
sub-districts, a strategic plan and timeline
for visioning the remaining two sub-
districts (Central Station and UMR and
Recreation Area) will also be developed
in Phase 2.
Public Realm Project
Heart of the
City – Phase 1
Construction
start April 2020;
anticipated
completion
summer 2021
Signature public space project located
in the center of downtown completed in
two phases, with the first phase entering
construction in 2020.
https://heartofthecity-dmc.
com/hoc-phase-1/
https://dmc.mn/wp-content/
uploads/2018/07/DRAFT-St-
Marys-Plan.pdf
Discovery Walk Construction start
in 2021
Signature five-block linear park extending
from Heart of the City to Soldiers Field Park.
This project will enter construction in 2021.
Saint Marys
Public Realm
Waterfront
Public Realm
Planning
Central Station
Public Realm
UMR /
Recreation
Public Realm
Rapid Transit
Public Realm
Design to be
coordinated with
Rapid Transit project
Design and Phase 1
construction by 2024
Kick off concept
design
Kick off concept
design
Station area design
and construction start
Schematic design concepts for
signature public realm space in
Saint Marys sub-district.
Signature public realm space within the
Downtown Waterfront sub-district. Aims to
increase activity around the river flowing
through downtown.
Initiate re-visioning for this sub-district
and potential public realm concepts.
Update overall sub-district plan and
potential public realm concepts.
Rapid transit public realm planning to
delineate station areas and transit route.
https://dmc.mn/wp-content/
uploads/2018/07/DRAFT-St-
Marys-Plan.pdf
https://downtownwater
frontsesmallareaplan.com
www.rochestermn.gov/
departments/administration/
downtown-rochester-high-
amenity-circulator-rapid-
transit-route
Phase 2
Anticipated Work Description Link
COVID-19 CONSIDERATION AND POTENTIAL IMPACTS
The COVID-19 pandemic has
impacted the role and elevated the
importance of outdoor public space in
urban environments. Historically, public
realm spaces have offered inviting places
for a range of community activities - a
place of respite, a place to access nature
while in an urban environment, or a place
that welcomes community gathering
and activity. Public spaces have been
recognized for helping to address social
isolation and mental health, even though
people may not be interacting, seeing
others contributes to stress reduction.
Places of respite and access to nature
will grow in importance in a post-
pandemic world. As discussed in the
mobility section of this document, the
Rochester community continues to assess
the value and importance of trailways
and natural spaces as essential and
therapeutic. The design of Rochester’s
public spaces will need to adapt to
changing circumstances in order to
provide places with convenient access to
nature or to safely congregate in large or
small groups.
Considerations given for the use of
public space will largely be predicated on
perceived safety. Outdoor spaces must
address cleanliness. Additionally, the
space must provide for safe distancing
and the disinfection of surfaces in order
to provide for and ensure community
adoption and use. The Clean and Safe
Program created by the Rochester
Downtown Alliance is currently
underway, carried out by full-time
employees following safety protocols in
cleaning high touch point spaces and
places in downtown.
-
-
Photo Here
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C ritical infrastructure investments
like street improvements,
stormwater, and sewer projects
facilitate subsequent vertical building
development. These public investments
in infrastructure are generational
investments, and in the case of the DMC
they support denser downtown private
development. This relationship between
public investments that fuel greater
private investment is at the core of the
DMC Development Plan financial model.
Streets and sewers are two different
project types that share a similar purpose:
to improve access and use. Within the
street typology section of the 2018
Integrated Transit Studies, there is an
approach to designing downtown streets
to better accommodate multiple mobility
modes.
In 2021, the results of this plan will be
integrated into a city-wide plan as the
City updates its Bicycle and Pedestrian
Master Plan. More details about street
improvements can also be found in the
documents referenced in the Mobility
section.
Most of the street and sewer projects
outlined in the 2015 DMC Development
Plan are early phase improvement
projects to support strategic growth
and advance quality of life. Within the
Development Plan, these projects fall into
four primary areas:
1. Stormwater mitigation
2. Sewer infrastructure
upgrades
3. Water main
infrastructure projects
4. Downtown street and
parking improvements
The water, sewer, and stormwater
projects are a combination of repair or
replacement of aging infrastructure (that
would be needed even without the DMC
Initiative) and expanding capacity to
support new development in the DMC
District. It is worth noting that the fiscal
efficiency of infrastructure investments in
downtown development is much higher
than lower density development patterns,
and therefore downtown development
helps support the variety of lower density
neighborhood types that are found within
Rochester. Further details on this can be
found in Appendix.
Streets &
Sewers
CONTEXT AND BACKGROUND
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PHASE 1 PROGRESS
(2015-2019)
In the first five years of the DMC initiative, considerable progress was made on several infrastructure
projects to enable further downtown development. Projects that began planning and/or construction
between 2015-2019, are listed below.
Collectively, these key infrastructure upgrades are
focused in areas that are prime for redevelopment.
Historically, these downtown areas hosted surface
parking lots, which did not greatly impact the sewer
or water main systems, but also did not generate
much in tax revenue, or support jobs, retail or
housing, critical to creating downtown vibrancy.
As new building projects are brought forward,
these upgrades are necessary to ensure the new
building’s water and sewer needs are met to make
the development possible.
A map highlighting the areas of downtown that
are currently under construction:
https://rpu.maps.arcgis.com/apps/webappviewer/
index.html?id=27e34d05eb514c9cac702b2b5c515613
While the link between sustainability
and equity to underground infrastructure
projects is not explicitly made clear in
the DMC Development Plan, in Phase
1 DMC has implemented methods
to advance sustainability and equity
initiatives through these projects as well.
First and foremost, these infrastructure
upgrades are tied to subsequent private
development. In some cases, these private
developments help advance goals tied to
sustainability and equity because they
offer workforce housing or reduced rent
commercial office space that is affordable
for start-ups. So, while not directly tied to
sustainability and equity initiatives, these
infrastructure investments are a critical
first step towards meeting these goals.
Considering the street improvement
projects, the ties to sustainability and
equity are clearer. The promotion of
multiple mobility modes along downtown
streets will provide a safe and connected
means of travel for the community. For
community residents who cannot afford
a vehicle, or those who rely on public
transit, these street upgrades dignify
travel and ensure the safety of Rochester
residents and downtown employees.
Further, these accommodations for
different mobility modes also help
advance DMC’s goals tied to greenhouse
gas reduction. As more of the community
elects alternative modes of travel, due
to the street upgrades that make these
personal choices possible, fewer will
travel in their individual vehicles. As a
result, fewer emissions will come from
the travel sector. Secondarily, as outlined
in the mobility section, infrastructure
upgrades that electrify the transportation
sector will further facilitate this transition
from fossil fuel-based travel to other
options, both of which will help realize
DMC’s sustainability targets.
SUSTAINABILITY AND EQUITY CONSIDERATIONS
Storm and Sewer Projects
Sanitary Sewer
Upgrade – 3rd Ave SE
Upgrade sanitary sewer capacity to meet
future development needs. This project is
nearing completion.
https://www.
rochestermn.gov/home/
showdocument?id=27635
https://www.
rochestermn.gov/home
showdocument?id=27635
Sanitary Sewer
Bypass – 2nd St SE
Sanitary Sewer
Upgrade – Cooke Park
Street and Utility
Upgrades – 4th St SW
Sanitary, Sewer and
Street Upgrade – 6th
and 7th Ave
Upgrade to sewer utility along 2nd Street SE.
Project is currently under construction.
Upgrade to sanitary sewer to meet future downtown
development needs. This project is in design.
Upgrade to storm and sewer utilities
and street redesign, including bike lane.
This project is complete.
https://www.
rochestermn.gov/home/
showdocument?id=27617
https://www.
rochestermn.gov/home/
showdocument?id=27627
Upgrade to sanitary and sewer utilities and street
redesign. This project is under construction.
Description Link
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COVID-19 CONSIDERATION AND POTENTIAL IMPACTS
The streets and sewer projects are not
immune to the impacts of the COVID-19
pandemic affecting their construction,
community use and adoption, and
community mobility choice. In terms of
construction, the pandemic has changed
construction methods to ensure worker
safety and prevent project disruption. In
some cases, the pandemic could impact
construction workers, and if that were
the case, construction progress would be
halted, which would impact the project
schedule and perhaps the construction
schedules of interrelated private
development.
During the pandemic, changes have
occurred in community mobility choices.
As a way to get outside of the house,
community members have increasingly
utilized the City’s trail systems and
pedestrian pathways. The street
upgrades in Phase 1 and Phase 2 will
further facilitate choices for community
members. Further, it appears that during
the pandemic, individual and small
group travel choices are proving more
comfortable for community members
versus mass transit.
The health of construction workers
and community transit choices will be
closely monitored to ensure that the
DMC initiative can properly adapt to
continually changing and evolving work
and commuting landscapes.
MAJOR PROJECTS FOR PHASE 2
(2020-2024)
Looking ahead, there are additional street and sewer projects planned. A portion of the projects
that moved through the design process highlighted in the Phase 1 table will continue into
construction. As indicated in the DMC Development Plan Priority 3, early infrastructure projects
are needed to encourage downtown development activity. Thus, the number of new street and
sewer projects may decrease in future years. Below are some additional projects that are currently
finalizing design or are planned to begin construction in 2020 or later in Phase 2 (2020-2024).
Storm and Sewer Projects
North Broadway
Construction
Street project to update car travel lanes,
pedestrian and bike amenities
https://www.rochestermn.
gov/home/show
document?id=9317
Sanitary and Sewer
Upgrade 12 and13th Ave
2nd to 4th St SW
Utility Upgrades
Rapid Transit Project
Upgrade sanitary and sewer capacity along 12 and
13th Avenue to meet future development needs.
This project is in design.
Upgrade to underground utilities from 2nd Street to
4th Street SW. This work will be coordinated with the
construction of Discovery Walk.
Referenced in the mobility section, this project will
provide rapid transit lanes for electric buses. As part of
this project, utilities and travel lanes will be upgraded
along the Transit Corridor
www.rochestermn.gov/
departments/administration/
downtown-rochester-high-amenity-
circulator-rapid-transit-route
Description Link
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Appendix Appendix
All referenced documents will be made
available at <URL to be inserted>
All referenced documents will be made
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