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Home My WebLink About11/4/2021 DMCC Board of Directors Meeting - PresentationDMC Corporation Board of Directors Meeting THURSDAY, NOVEMBER 4, 2021 MAYO CIVIC CENTER ROCHESTER, MN Discovery Square Economic Development in Discovery Square •One Discovery Square •100% leased, final tenants starting to move in, more activity in building as students and businesses come back. •Two Discovery Square •Core and shell done by year end. •Proposals out for space on every floor •Other Activities •Mayo Clinic Kellen building under construction. •Mayo Clinic 1,200 stall parking ramp under construction. Discovery Walk Update •City Council approved bids for base project and snowmelt system •Community structures being re-bid •Construction begins early 2022 The Cafe –300 Block The Outside Office –400 Block Looking Forward •Business development strategy refresh •Discovery Walk Construction •Mortenson Phase 3 project Mobility Today’s Agenda •Rapid Transit Update •Upcoming milestones 85,000 105,00 0 128,00 0 155,00 0 3 •Key element of achieving mode shift goals necessitated by expected growth. •Mayo Clinic remains committed to development of rapid transit and future downtown employment growth. •Updated DMC Development Plan reaffirms importance of reliable transit. Project Overview Rochester Rapid Transit : Building for Growth CITY POPULATION:55,000 new residents EMPLOYMENT:50,000 new jobs 86,000 110,00 0 120,82 3 165,00 0 4 Project Overview Rochester Rapid Transit and COVID-19 •“Mayo Clinic’s ongoing support for continued planning to secure federal funding for the proposed rapid transit line and accompanying transit village in Rochester.” •“Strong collaboration between the city’s public and private stakeholders on key community issues will likely allow us to recover more quickly than some of our peers.” 5 DMC Development Plan and Integrated Transit Studies Background If we invest in high quality mobility options… •Quality of life will be improved for residents, employees, and visitors. –More pedestrian-friendly streets –More parking for patients and neighborhood residents –Better air quality •Alleviate congestion –Without alternatives, nearly 40% more miles driven projected each day on existing road network •Avoid expensive new parking construction –Estimated to cost nearly $1 Billion •Provides superior passenger experience. •Improves capacity and frequency to meet future transit demand. •Contributes to commuter mode shift goals. •Rapid Transit one element of solution: –Parking Policies –Bike & Pedestrian safety improvements –Travel Demand Management –Land Use & Zoning –Micro-mobility 6 Rochester Rapid Transit Preliminary Design Process Rapid Transit Moves People More Efficiently 2nd Street SW looking west near Saint Marys Hospital Rochester Rapid Transit Route 8 Upcoming Milestones Overall Project Schedule •Section 106 process and NEPA review. •Advance engineering and station design. 9 •Section 106 process and NEPA review. •Advance engineering and station design. Upcoming Milestones Ongoing Tasks 10 What needs to be ready for the FTA Risk Workshop and Readiness Review in 2022? •Completed Section 106 and NEPA Review •Third-party agreements —Mayo Clinic —MnDOT —Utilities •Advanced design plans (60% level) and costs •Contracts for additional design and technical work Upcoming Milestones Risk Review + Readiness West Transit Village Transit: -station platform -streets -parking (Mayo employees) -parking (public) -bus charging -RPT facilities Village: -housing -retail + services -open space -bike & ped connections + West Transit Village WTV developer Recruitment Process draft schedule: 11/4/2021 2021 2022 Oct. Nov.Dec.Jan. Feb.March April May June July Vision Alignment Developer Outreach Invite d RFP Shortlist Interviews Finalist Selection LOI (Mayo, Developer, City, DMC) Lead Generation and Site Selection Strategy in America’s City for Health Site Selection 101 Site Selection: Multimarket evaluation of real estate, labor, infrastructure, costs, and government to determine the best possible location for an investment. Why Now? 1.Infrastructure 2.Discovery Square 3.Additional opportunities 4.Post-Covid economy Site Selection Project Process AWARENESS BUILDING Targeted Recruiting Industry Events Technical Conferences Location Advisor Outreach In-Market Networking Content Creation Press & Promotions Project Initiation Project Mgmt RFI Research Site Visit Incentives Win Loss Drop Site Selection Project Sourcing Company Direct 40% Location Advisors 25% In-Market Connectors 20% Proactive Outreach 10% Other 5% Industry Focus •Immediate •Healthcare •Life Sciences •Med-Tech •Long-term •Food & Beverage development •Outdoor Products design •Wearable Device •“Contacts” •Companies, Consultants, Connectors •New Project Starts •Lead Source, Decision Drivers, Pipeline •Activities •RFI’s, Sites Submitted, Site Visits, Incentives •Announces •Jobs, Investment, Real Estate, Revenue Site Selection Metrics •Business Case •Workforce, cost, demographic, employer, infrastructure, logistic, education, and government factors •Sales Collateral •Business case translated into marketing messages •Client Database •Out-of-market Location Advisors, company executives, and in-market advocates •Customer Relationship Management (CRM) Infrastructure •Key clients, projects, marketing activities, outreach •Awareness & Outreach •Targeted outreach, relationship marketing, and general awareness building •Project Initiation •Nurturing opportunities for investment from inquiry to announcement Program Action Items 1.Define the Value Proposition: Document the business case, begin collateral design 2.Begin Outreach: Start with Location Advisors, expand to Targeted Recruiting 3.Inventory Product: Develop an inventory of real estate across sizes and types 4.Create a Program of Work:Define a 2022 workplan and budget for each audience Next 90 Days Team Rochester Higher Education Commercial Real Estate Retail Retention and Recruitment Strategy Objective Develop and execute a strategy that supports a vibrant downtown retail experience for residents, visitors and downtown employees. Efforts intended to support growth of existing retailers and recruitment of new businesses. Key Components We Can Directly Impact Capital Space Customers Entrepreneurs The Strategy Tactic Type Status Downtown resident research Data Complete Retail marketing collateral Data Complete Inventory of available space Data Complete Retail gap analysis Data Complete Broker, owner and retailer relationships Execution Complete Access to capital Execution In Progress Marketing and recruitment Execution Not Started Interim Use Execution Not Started Retail Incubator Execution Not Started Data: Retail Gap Analysis Sector Residents Visitors Biz Owners Consultants Essentials (incl Pharmacy)X X X X Footwear X X X X Tech & Service X X X X Apparel -Family, Value, Luxury X X X X F&B Quick Serve, Healthy and/or Comfort X X X X Fitness X X X X Entertainment (theater, etc.)X X X X Bookstore X X X Cosmetics X X X Value Grocery X X X Local -mementos, artisan, gallery X X X Dept Store (e.g. Target)X X X Salon/Spa X X X Office (drop-in workspace)X X X Athleisure, Sports, Outerwear X X Professional apparel X X Home X X Kid Friendly-clothing, games X X Data: Marketing Collateral for Attracting Retailers Material that tells the story of “why downtown Rochester” as a place to open a retail shop. Available to brokers, property owners, city advocates, and more. Available digitally for user-specific customization. Next Steps •Distribute marketing collateral. •Develop marketing & recruitment campaign. •Strategic use of Main Street capital funds. •Convene brokers/owners working group. •Explore interim use opportunities. •Explore retail incubator feasibility. •Develop success metrics. DEED Main Street Grant Award Background •Access to capital is a challenge for small business owners, especially BIPOC and/or new businesses. •Additionally, COVID-19 has meant businesses and building operators need to utilize their space differently. •DEED Main Street Economic Revitalization Program announced Aug 3rd, with Aug 31st application deadline. •DMC and City of Rochester collaborated closely on application. Why Seek the DEED Main Street Grant? •Strategic investments with DMC infrastructure funds for large projects advance our goals and accelerate economic development. •Similar investments in smaller projects can also achieve these goals: •Provide resources to under-served communities, an unrealized source of innovation and investment. •Support small business owners and entrepreneurs Main Street Grant vs DMC Infrastructure Funds DEED Main Street DMC Infrastructure Amount $3M Variable, project-specific Terms Disbursed by 12/31/2024 Project completion 12/31/2026 Variable, project-specific Service Area East/West: 3rd Ave and 3rd Ave North/South: Center St to 7th St S DMC District Eligible uses Multiple, specified by DEED Multiple, specified by legislation Prevailing wage Yes Yes Max award $750K Not applicable Match Required 2:1 Not applicable Targeted recipients Multiple, specified by DEED Not applicable Destination Medical Center Development District Main Street Economic Revitalization Program Zone DEED Main Street -Eligible Uses •Repair, or renovation of real property •Building construction •Demolition, site preparation, landscaping and street scaping •Predesign and design •Engineering •Non-publicly owned infrastructure •Related site amenities Not the purchase of real estate, or business operations expenses, such as inventory, wages or working capital. DEED Main Street -Target Population All are eligible, priority given to diverse populations including racial and ethnic communities, including American Indians, LGBTQI communities, people with disabilities, veterans, low-income communities, and rural communities. Community Engagement •Co-Designers will help develop application process and be included in reviewing applications. •Communications plan needed to create awareness. •Anticipating technical support resources might also be necessary. Community Partners Current Status •Core planning team convened to articulate objectives, guiding principles, definitions, and key performance indicators. •Identify co-designers to incorporate into the team •Application process, scoring criteria and monitoring processes are TBD. •Community engagement specifics to be developed. •Technical assistance program to be developed DMC Corporation Board of Directors Meeting THURSDAY, NOVEMBER 4, 2021 MAYO CIVIC CENTER ROCHESTER, MN