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HomeMy WebLinkAbout8/27/2020 DMCC Board of Directors Meeting - PresentationDMCC Board Meeting August 27, 2020 Chair’s Report Consent Agenda Public Hearing Please •Keep comments to 2 min •State your name Public Hearing WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor ©2 0 1 9 C l i f t o n L a r s o n A l l e n L L P Destination Medical Center Corporation August 27, 2020 ©2 0 1 9 C l i f t o n L a r s o n A l l e n L L P Create Opportunities IRS Form 990 •Financial information reconciles to DMCC’s audited financial statements •Part III (page 2) –statement of DMCC’s organizational purpose •Part VI (page 6) –governance •Part VII (page 7) –board members 2 ©2 0 1 9 C l i f t o n L a r s o n A l l e n L L P Create Opportunities IRS Form 990 •Schedule B (page 22) –contributors •Schedule R (page 31) –related organizations •No unrelated business income for 2019 •Filing deadline is November 16, 2020 3 ©2 0 1 9 C l i f t o n L a r s o n A l l e n L L P Create Opportunities Charitable Organization Annual Report •Filed with Minnesota Attorney General’s Office Charities Division •No changes in tax-exempt status (page 1) •No changes in organizational purpose or programs (page 1) •No changes in ability to solicit contributions (page 2) •No compensation paid in excess of $100,000 (page 2) •Filing deadline November 16, 2020 4 ©2 0 1 9 C l i f t o n L a r s o n A l l e n L L P Create Opportunities Minnesota Non-profit Corporation Annual Registration •Filed online with Minnesota Secretary of State •In good standing through December 31, 2020 •Annual renewal to be filed (online) for 2021 5 ©2 0 1 9 C l i f t o n L a r s o n A l l e n L L P Create Opportunities Thank you for engaging us to serve you! Contact Information: Craig Popenhagen, Principal Katherine Lutzke, Senior 507-280-2327 507-280-2314 Craig.popenhagen@claconnect.com katherine.lutzke@claconnect.com 6 +Don’t reinvent the wheel +Build off 2015 DMC Development plan + subsequent plans +Synthesize plans into digestible implementation schedule +Reset expectations based on COVID-19 impact +Establish a framework for future decisions Guidance from DMCC, City Council and Community Leaders: Establish Framework Data Collection + Analysis Draft Update Community Conversations Revised Draft for Approval Timeline for 5-year Update We Are Here Top Line Outputs: I.Report on Phase 1 (2015-2019) II.COVID-19 Impact Scenarios III.Setting Phase 2 (2020-2024) Targets IV.Policy Framework for Future Use of DMC Funds 5-year Update to the 20-year Plan 20-year DMC Goals 1.Strategic Plan 2.Investments 3.Jobs 4.Tax Revenue 5.Experience Report on Phase 1 Guiding Document for DMC 20-year vision Regional + City Strategies Area Plans 2020 DMC Development Plan Update Goal 1. Create a Comprehensive Strategic Plan Updated Market Studies + Goal 2. Leverage the Public Investment to Secure $5.6B in Private Investment Total Investment Committed in Phase 1 Uses: Public Money in 2015-2019 was committed to these 5 areas Goal 2. Leverage the Public Investment to Secure $5.6B in Private Investment Where did the private investment happen? Hilton Development Flats on Fourth Development Hotel Indigo Redevelopment Goal 3. Create 30,000 New Jobs Goal 3. Create 30,000 New Jobs Goal 4. Generate Up to $8B in New Net Tax Revenue by 2050 Goal 4. Generate Up to $8B in New Net Tax Revenue by 2050 OUR KEY RESEARCH FINDINGS Our research identified meaningful gaps in the market that lead to dissatisfaction of patients, visitors and residents. Experience Gap PATIENT / COMPANION EXPERIENCE IN ROCHESTER MAYO CLINIC VISITOR EXPERIENCE ROCHESTER VISITOR EXPERIENCE CO N F I D E N C E L E V E L TIME SPENT IN ROCHESTEROpportunity Gap $68,000 Avg. HH Income (26% Above Natl. Avg.) 15 M People Within ½ Day Drive 34% Of Visitors Would Return for Events/Activities of Interest Quality Gap 29% 45% PERCEPTION OF QUALITY: RATING OF HIGH LEVEL OF SATISFACTION WITH ACTIVITIES/OFFERINGS IN ROCHESTER PATIENTS RESIDENTS % R E P O R T I N G H I G H L E V E L O F S A T I S F C A T I O N 7 M Est. Incremental Visitation Potential (Target) 4-5 Hours of Visitor Free-Time Per Day When Patients & Companions Could Be Engaged Differently -$5,000 Per HH In Retail & Dining Spending to Comparable Cities (Indicates Leakage) Goal 5. Achieve the Highest Quality Resident, Patient, and Visitor Experience Looking Forward COVID -19 Impact Analysis HR&A Advisors, Inc. COVID -19 Impact Analysis COVID -19 Impact Analysis: Methodology COVID -19 Impact Analysis: Methodology Rochester COVID -19 Impact Next Steps: +Define scenarios and economic inputs +Run model and translate model outputs into metrics that support DMC planning efforts +Translate model outputs into contextualized DMC findings Phase 2 Targets (2020-2024) +Guided by State Law +Limited to funds available per formula +($200-$225million) +Reflects DMCC and City Priorities and Values Policy Framework for Use of DMC Funds in Phase 2 +Transformative Private Development: Focus on developments that diversifies or supports diversification of economy (eg, 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 subdistrict (walkable, connected, green space, people oriented, accessible, connective tissue). Policy Statements Collaboration Model Phase 2 Proposed Targets Derived from previous plans and approvals from city and county Draft Update Revised Draft for ApprovalCommunity Conversations +Webinars with Urban3, HR&A, AECOM +DMC Community Connection +Community Leader sessions +City Council public hearing +Olmsted County Next Steps 2021 DMC Corporation Funding Request Funding Request Components •Capital Improvement Program (DMC CIP) •DMC EDA + City Staff Workplan and Budget •DMCC Operating Budget •Working Capital Loan Process •June/July: DMC EDA + City Staff •August: Board Volunteer Advice and Board Consideration •September: Rochester City Council Consideration DMC CIP Principles •Pursue projects consistent with DMC Development Plan and current priorities •Finish projects already approved and underway •Use “pay-as-you-go” public finance model as a primary financing tool, but consider bonding or loans when appropriate •Focus on time-sensitive, shovel-ready projects •Be responsive to community priorities and market demand •Leverage other sources of funding •Achieve balance between public realm, public infrastructure, and transportation #Project Description Proj #2021 2022 2023 2024 2025 2026 2021 DMC Source 2021 Additional Non-DMC Funding Sources 1 DMCC 8602 $268,750 $276,813 $285,117 $293,670 $302,480 $311,555 DMC Sales Tax 2 DMC EDA 8602 $2,235,776 $2,302,849 $2,371,935 $2,443,093 $2,516,386 $2,591,877 DMC Sales Tax Grants and Mayo Clinic 3 City Project Management expenses 8614 $696,215 $713,620 $731,461 $749,747 $768,491 $787,703 DMC Sales Tax 4 City of Rochester Administrative costs for DMC projects 8601 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 DMC Sales Tax 5 Development Plan Update $500,000 $3,300,741 $3,393,282 $3,488,513 $3,586,510 $4,187,357 $3,791,135 #Project Description Proj #2021 2022 2023 2024 2025 2026 2021 DMC Source 2021 Additional Non-DMC Funding Sources 6 Heart of the City 8625 $6,000,000 State DMC Funds 7 Discovery Walk Design and Implementation $7,000,000 $7,000,000 State DMC Funds 8 Chateau Theatre Improvements 8624 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 DMC Sales Tax 11 Downtown Sidewalk Experience Enhancement $848,375 State DMC Funds City 12 River Front Reimagined New $1,000,000 $5,000,000 State DMC Funds 13 Smart Cities Consultation $100,000 14 St Marys Place Public Realm Implementation $300,000 $3,000,000 $14,948,375 $12,500,000 $3,100,000 $100,000 $100,000 $100,000 #Project Description Proj #2021 2022 2023 2024 2025 2026 2021 DMC Source 2021 Additional Non-DMC Funding Sources 10 Strategic Redevelopment $7,000,000 State DMC Funds $7,000,000 #Project Description Proj #2021 2022 2023 2024 2025 2026 2021 DMC Source 2021 Additional Non-DMC Funding Sources 15 Construct 6th Street Bridge - Study, Design & Construction New $1,300,000 State DMC Funds 16 Reconstruct North Broadway Ave from Civic Center Drive to Zumbro River Bridge 7326 $3,101,325 State DMC Funds City 17 12th & 13th Ave Sanitary and Storm Sewer Capacity Improvements from 2nd St SW to 2nd St NW 8611 $2,250,000 State DMC Funds City 18 Downtown District Energy System New $200,000 $1,800,000 State DMC Funds 19 Construct sanitary sewer capacity bypass on 3rd Ave SW from 2nd St SW to 4th St SW 8626 $50,000 $1,500,000 $6,851,325 $1,800,000 $50,000 $1,500,000 $0 $0 #Project Description Proj #2021 2022 2023 2024 2025 2026 2021 DMC Source 2021 Additional Non-DMC Funding Sources 21 Arrive Rochester Implementation $60,000 $67,000 $75,000 $83,000 $91,000 $99,000 DMC Sales Tax 22 ITS Implementation: Rapid Transit 8707 $5,252,000 $26,584,647 $10,752,032 $10,998,021 Transit Aid County & State DMC 23 Active Commuter Resource Center New $50,000 State DMC Funds 24 Downtown electric vehicle charging stations New $100,000 DMC Sales Tax 25 City Loop Implementation $500,000 $4,500,000 26 ITS Implementation Phase 2 New $1,000,000 $8,000,000 $15,000,000 $5,462,000 $27,151,647 $15,327,032 $12,081,021 $8,091,000 $15,099,000 $37,562,441 $44,848,973 $21,969,591 $17,271,579 $12,382,407 $18,994,187 Operations and Implementation Common Ground Streets and Sewers Total DMC Investment Transit Operations and Implementation SUBTOTAL Common Ground SUBTOTAL Streets and Sewers SUBTOTAL Transit SUBTOTAL Transformative Private Development Transformative Private Development SUBTOTAL Operating & Work Plan Budget Principles •Fulfill responsibilities assigned to the DMC EDA by Minnesota Statutes 469.40-469.47 •Successfully implement the DMC Development Plan •Advance approved strategic priorities •Achieve Outcomes in annual work plan •Incorporate complementary planning and implementation activities assigned to the City of Rochester DMC Project Management Team •Integrate pandemic recovery and resiliency efforts into annual work plan DMC EDA Work Plan and Operating Budget 15% reduction to DMC-funded work plan support DMC Working Capital Loans •$1,000 DMC Corp. Loan •$75,000 DMC EDA Loan Project Updates Transportation Requested Action •Endorse Rapid Transit described in the Federal Transit Administration (FTA)application summarized in this presentation •Adopt five-year CIP that incorporates the funds necessary to support the local share of the Rapid Transit funding (later on agenda) Mode Shift Project Definition •Three-mile Bus Rapid Transit line. •Eight stations. •Business access and transit (BAT) lanes. •Saint Marys Transit Station and pedestrian access tunnel. •Reconstruction of 2nd Street SW between 16th and 11th Avenues. •Electric vehicles. Project by the Numbers Weekday service every 5 minutes from 6-9 am and 3-6 pm. Service every 10 minutes other times, including weekends. Weekday service 5 am –11 pm. Weekend service 8 am –11 pm. Anticipated opening day ridership (2025): 11,000. Capital cost: $114 million. Annual operations & maintenance cost: $2.82 million. West Transit Village 19th Community Hub St Mary’s Place 6th Ave Gateway The Intersection Government Center TOD Study: Station Area Concepts West Transit Village -Master Plan Diagram Connectivity and Public Realm Generous sidewalks, new cross walks Enhanced bike facilities Active ground floors High quality development New homes, new jobs New rapid transit A Better Experience for People TOD Study: Connectivity, Public Realm, Development Small Starts Application: Timeline •FTA will publish the project’s rating in spring 2021. •If project receives a medium rating or better, will be eligible for Small Starts grant. •Small Starts eligibility is not a guarantee of a Small Starts grant or its timing. •Timing shown here is an estimate. 2020 2021 2022 2023 20252024 Submit application Project rating published Application resubmittal Prepare Small Starts Readiness Package Small Starts Grant Agreement Opening Day Small Starts Application: Estimated Ratings Capital •Local match = 51% of capital costs •FTA Small Starts grant request = 49% of capital costs Ongoing Operations •City of Rochester •Potential Other Partners Small Starts Application: Financial Assumptions & Request •Design of and public engagement regarding business access and transit (BAT) lanes on 2nd Street. •Completion of the traffic analysis; public engagement regarding results and next steps. •Assembly of a group of interested residents and stakeholders to participate intensively in the station architecture and design process. •Beginning the environmental review process (National Environmental Policy Act). Next Steps: Fall 2020 Requested Action •Endorse Rapid Transit described in the Federal Transit Administration (FTA)application summarized in this presentation •Adopt five-year CIP that incorporates the funds necessary to support the local share of the Rapid Transit funding (later on agenda) Heart of the City Construction Schedule Updates Project Component Original Schedule New Schedule •Second Street 09/28/2020 08/21/2020 •First Avenue South 07/28/2021 03/01/2021 •First Avenue North 08/20/2021 12/23/2020 •Peace Plaza 08/13/2021 07/1/2021 Discovery Square Discovery Square Areas of Focus •Business Recruitment •Start -up Program in Partnership with Medical Alley •Discovery Square Two •2020 Groundbreaking •Discovery Walk •Fall 2021 Construction DMC EDA Update •Keep it Local Micro-grants •Business Pivot Storytelling •Business Forward •Rochester Ready •Property Owner Discussions •DMC Webinar Series •Bootstraps Team Consults •CARES ACT-City, County, RPU •Various Loan and Grant Programs Organizational Responses to COVID19 Next Steps: •Extension of outdoor dining season •Parking options •Increased visitation programing •Other partnerships-rent relief & special grants