HomeMy WebLinkAbout2/3/2021 DMCC Board of Directors Meeting - Agenda and Meeting Packet
Destination Medical Center Corporation
Board of Directors Meeting
Wednesday, February 3, 2021
9:30 A.M.
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DESTINATION MEDICAL CENTER CORPORATION (DMCC)
BOARD MEETING
Wednesday, February 3, 2021
9:30 A.M.**
Following the March 13, 2020 Declaration of Peacetime Emergency by Governor Walz (as may be
amended), the Destination Medical Center Corporation (DMCC) is holding its regularly scheduled
February 3, 2021 9:30 AM meeting by telephone or other electronic means, according to Minnesota
Statutes, Section 13D.021. DMCC Chair Rybak has concluded that an in-person meeting and the
regular meeting location for the DMCC are not practical or prudent because of the health pandemic
declared under the Emergency Order and according to current guidance from the Minnesota
Department of Health and the CDC. The public may monitor the meeting by calling the phone
number listed below (#2) or on-line through the link below (#3).
In addition, public comments may be offered by submitting written comments to info@dmc.mn, or
by telephone or videoconference during the Public Comment item on the Agenda, as follows:
1. Sign up at least one hour before the meeting by sending your full name, telephone number
and email address to info@dmc.mn.
2. To join the meeting by telephone, dial 1-888-788-0099; when prompted, enter meeting
ID 833 9479 8623.
3. To join the meeting by videoconference, use the following link:
https://us02web.zoom.us/j/83394798623
AGENDA
PAGE
I. Call to Order
II. Roll Call
III. Approval of Agenda 1
IV. Approval of Minutes: November 19, 2020 3
V. Public Comment
VI. Chair’s Report
VII. Consent Agenda
A. DMCC Budget: Year-to-Date Update 7
VIII. Annual Report to the Legislature 11
Resolution A: Approving February 15 Report to the Legislature
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IX. DMC Metrics 51
X. Project Updates (City of Rochester, EDA)
A. Heart of the City 53
B. Discovery Square 56
C. Transportation Experience 59
D. Other Private Projects
1. Bryk Apartments 61
2. South-of-Downtown Waterfront 63
XI. EDA Update
A. Marketing Update 65
B. Other Updates 68
XII. Meeting Schedule
A. Next Executive Committee Meeting: March 25, 2021 at 9:30 A.M.
B. Next Regular Meeting: May 20, 2021 at 9:30 A.M.
XIII. Adjournment
** Please Note: On February 3, 2021, from 1:00 – 3:00 PM, a joint work session is planned with the
DMCC, the Rochester City Council, the Olmsted County Board of Commissioners, and the
Destination Medical Center Economic Development Agency Board of Directors. A quorum of the
DMCC Board Members may be present. Members of the public are welcome and encouraged to
attend the joint work session by calling the phone number listed below (#1) or on-line through the
link below (#2).
1. To join by telephone, dial 1-888-788-0099; when prompted, enter meeting ID 899
4115 1088
2. To join by videoconference, use the following link:
https://us02web.zoom.us/j/89941151088
1330583-6.DOCX
DESTINATION MEDICAL CENTER CORPORATION (DMCC)
BOARD MEETING
Thursday, November 19, 2020
9:30 A.M.
MINUTES
I.Call to Order. Chair R.T. Rybak called the meeting to order at 9:30 a.m.
II.Roll Call. Chair R.T. Rybak, Mayor Kim Norton, Paul Williams, Jim Campbell, Commissioner Jim
Bier, Pamela Wheelock, Michael Dougherty, and Council President Randy Staver were present.
III.Approval of Agenda. Council President Staver moved approval of the Agenda. Ms. Wheelock
seconded.
Ayes: Commissioner Bier, Mr. Campbell, Mr. Dougherty, Mayor Norton, Council President Staver,
Chair Rybak, Ms. Wheelock, Mr. Williams.
Nays: None.
IV.Approval of Minutes: August 27, 2020. Ms. Wheelock moved approval of the Minutes. Mayor
Norton seconded.
Ayes: Commissioner Bier, Mr. Campbell, Mr. Dougherty, Mayor Norton, Council President Staver,
Chair Rybak, Ms. Wheelock, Mr. Williams.
Nays: None.
V.Chair’s Report. Chair Rybak noted several items on the Agenda, including the Five-Year-Update
to the DMC development plan, a recently-completed COVID-19 economic impact analysis,
authorizing construction documents for Discovery Walk, a Mayo Clinic update, and a discussion
of downtown Rochester’s riverfront.
VI.Consent Agenda.
A. Professional Auditing Services
Resolution A: Approving the Appointment of CliftonLarsonAllen LLP,
Subject to Successful Negotiation and Execution of Agreement
B. DMCC Budget: Year to Date Update
C. Resolution B: Commending Randy Staver
D.Resolution C: Commending Steve Rymer
E.Resolution D: Commending Lisa Clarke
Commissioner Bier moved approval of the Consent Agenda. Ms. Wheelock seconded.
Ayes: Commissioner Bier, Mr. Campbell, Mr. Dougherty, Mayor Norton, Council President Staver,
Chair Rybak, Ms. Wheelock, Mr. Williams.
Nays: None.
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VII.Public Hearing.
A.Development Plan: Five-Year Update
B. Resolution E: Adopting the 2020 Five-Year Update to the Development Plan
Lisa Clarke, EDA Executive Director, gave an overview of the proposed Five-Year Update to the
DMC Development Plan. Patrick Seeb, EDA Director of Economic Development and
Placemaking, described the tax impact analysis completed by professional advisory firm Urban3,
LLC, noting that a key finding is that Rochester’s downtown, when compared to its geographic
size, substantially contributes to the City’s tax capacity.
Mr. Seeb was joined by HR&A Advisors Principal Erin Lonoff, who assisted in presenting a COVID-
19 economic impact analysis. Mr. Seeb then described the 2020-2024 portion of the plan update,
including frameworks for private investment, mobility, public realm, streets and sewers, and
community experience, and the anticipated availability of DMC funds. Mr. Seeb also highlighted
several 2020 development milestones, including the opening of DMC-supported projects like the
Berkman, Hotel Indigo, Discovery Square 2.
Following the presentation by staff, Chair Rybak opened the public hearing. No public comments
were offered and Chair Rybak closed the public hearing.
Mr. Williams suggested staff emphasize economic recovery efforts over the next several years
and prioritize placemaking, housing, and transit. Mayor Norton added that completing needed
public infrastructure improvements during the current economic downturn has mitigated the risk
that public projects could hamper economic recovery in the coming years. Council President
Staver reported that the City Council’s approval of the plan update was unanimous.
Ms. Wheelock suggested that staff track hotel and office vacancy rates to inform Board decision-
making in coming years. Chair Rybak asked that staff track the DMC district’s share of city tax
capacity over time and suggested that excess near-term office space supply could be appealing
to potential tenants.
Ms. Wheelock moved approval of Resolution E. Mr. Campbell seconded.
Ayes: Commissioner Bier, Mr. Campbell, Mr. Dougherty, Mayor Norton, Council President Staver,
Chair Rybak, Ms. Wheelock, Mr. Williams.
Nays: None.
VIII.Project Updates (City of Rochester, EDA).
A.Heart of the City. Ms. Clarke noted that public space construction is progressing ahead of
schedule and is expected to be completed in July 2021, and provided brief Business
Forward strategy and Chateau Theatre updates.
Mr. Seeb presented the Heart of the City pedestrian arcade concept, noting that the
concept is included in the DMC development plan. The arcade could provide a contiguous
public space from the Mayo Civic Center to Peace Plaza to Discovery Walk to Soldier’s
Field. EDA staff continue to discuss financing and phasing options with the property
owners and are optimistic that a memorandum of understanding could be prepared for
Board consideration at its February 2021 meeting. Ms. Wheelock encouraged staff to
consider how the rapid transit circulator will provide access to public space, and particularly
Mayo Park. Mayor Norton suggested that the Board should discuss the operating and
maintenance costs of DMC-funded public space.
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B.Discovery Square. Chris Schad, EDA Business Development Director, provided several
brief Discovery Square updates. Mr. Schad stated that discussions continue with many
potential Discovery Square tenants, who are still interested in Discovery Square’s primary
value proposition of access and proximity to Mayo Clinic and its major partners.
Mr. Schad also indicated that Mayo Clinic’s platform and leading COVID-19 response have
likely generated additional interest in Discovery Square. Discovery Square 2 is under
construction, new partnership-based entrepreneurism efforts are underway, and several
new mixed-use developments have opened in the subdistrict this year.
C. Discovery Walk.
Resolution F: Approving Design Development for the Discovery Walk Project and
Authorizing Next Phase of the Work
Mr. Seeb and Mr. Schad requested that the Board approve the design development
documents for Discovery Walk subject to final Board approval prior to construction. Mr.
Schad described several design features, including improvements to landscaping, tree
coverage, outdoor social space, seating, and vendor spaces. Mr. Campbell suggested that
staff consider extending the pedestrian subway south from the Mayo Clinic campus to new
Discovery Square developments.
Commissioner Bier moved approval of Resolution F. Ms. Wheelock seconded.
Ayes: Commissioner Bier, Mr. Campbell, Mr. Dougherty, Mayor Norton, Council President
Staver, Chair Rybak, Ms. Wheelock, Mr. Williams.
Nays: None.
D. Transportation. Mr. Seeb and Aaron Parrish, City of Rochester Deputy Administrator,
provided the transportation update, noting that DMC’s mobility initiative includes a number
of transit options, including the rapid transit circulator. Mr. Parrish reported that city staff
are facilitating an ongoing design and community engagement process. Mr. Parrish also
advised the Board that the next few months will include advocacy efforts directed at
Minnesota’s federal congressional delegation and that Board members may be called
upon to assist in the advocacy efforts. Chair Rybak asked staff to accelerate efforts to
solicit community feedback on possible circulator vehicles.
E. Other Private Projects.
1.Bryk Apartments. Kevin Bright, EDA Director of Energy and Sustainability, gave a
brief overview of the proposed mixed-income residential development. EDA staff
expect to receive a joint funding application in the near future and to deliver a funding
recommendation to the DMCC at its February 2021 meeting.
If completed, the 180-unit in-fill development on the northwest corner of Civic Center
Drive N.E. and Broadway Ave. North would be adjacent to a designated transit
corridor. The development would include commercial, remote working, and parking
space and could advance DMC’s housing and sustainability development goals.
IX.Mayo Clinic Update. Chair Rybak welcomed Jeff Bolton, Mayo Clinic Chief Administrative Officer,
to provide the Mayo Clinic update. Mr. Bolton stated that Mayo Clinic remains committed to DMC,
Minnesota, and the vision described in the Five-Year Update to the DMC development plan.
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Mr. Bolton reported that Mayo Clinic is in an overall strong position and is maintaining its quality,
safety, and experience standards. Mayo Clinic is recovering financially and implementing aspects
of its 2030 strategy. In response to COVID-19, Mayo Clinic developed and scaled a COVID-19
test and led a national convalescent plasma effort. Mayo Clinic is making new investments in its
healthcare practice, especially in its cancer center, expecting to become a “category of one” in
cancer treatment, education, and research. Mayo Clinic Platform, in partnership with nference and
Google, is working to transform digital patient care.
Mayo Clinic is reactivating several capital projects, including the $120 million, 176,000 square foot
Kellen Building in Discovery Square, which will break ground in 2021. Mayo Clinic remains
committed to the development of the rapid transit circulator and West Transit Village and is
constructing a $40 million Discovery Square parking ramp. In total, Mayo Clinic is pursuing more
than 100 capital projects totaling approximately $230 million in value and developing plans for the
smart hospital of the future. In addition to these capital investments, Mayo Clinic hired more than
1,000 new staff, bringing its total Rochester workforce to 39,300, including 20,000 downtown
employees. Mayo Clinic has also moved approximately 1,5000 staff to primarily remote working
and is looking at ways to reactivate downtown space.
Board members asked several questions about Mayo Clinic’s anticipated employment growth and
Discovery Square business development partnerships and thanked Mayo Clinic for its lead in
combating the COVID-19 pandemic. Chair Rybak asked if Mayo Clinic could assist in tracking
businesses who take up space in Rochester to be closer to Mayo Clinic; Mr. Bolton replied that
Mayo Clinic would assist these tracking efforts.
X.EDA Update.
A.Waterfront Small Area Plan. Mr. Seeb updated the Board on efforts to redevelop the
downtown Rochester waterfront, including the downtown waterfront small area plan
concentrated on the contiguous K-mart, AMPI, and Fullerton lot sites. Property owners and
adjacent neighborhood associations are participating in this small area planning, which is
leveraging existing neighborhood plans. Riverfront redevelopment efforts will eventually
include the western river frontage and will need to account for existing flood control
infrastructure.
B. COVID-19 Organizational Response. Ms. Clarke provided an update on DMC’s COVID-
19 recovery efforts. DMC’s efforts have complemented other City, County, and community
effort in the areas of grantmaking, business operations, and business support. More than
800 businesses have received direct support.
C. DMC Annual Meeting: December 3, 2020. Ms. Clarke informed the Board that DMC’s
virtual annual meeting will be broadcast on December 10, 2020.
XI.Meeting Schedule.
A.Next Regular Meeting: February 3, 2021 at 9:30 A.M.
XII.Adjournment. Council President Staver moved to adjourn. Ms. Wheelock seconded.
Ayes: Commissioner Bier, Mr. Campbell, Mr. Dougherty, Mayor Norton, Council President
Staver, Chair Rybak, Ms. Wheelock, Mr. Williams.
Nays: None.
1330605-3.DOCX
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TO: Jim Bier, Treasurer
Kathleen Lamb, Attorney
FR: Dale Martinson, Assistant Treasurer
Date: January 27, 2021
RE: December 2020 DMCC Budget Summary
The attached unaudited financial summary of activity through December of 2020 reflects total
year-to-date DMCC operating expenditures of $2,383,009 of the $2.9 million approved 2020
budget. The remaining amount unspent represents 19% of the total budget with only a few
outstanding 2020 bills remaining to pay.
The second page of this summary provides a listing of DMCC authorized projects managed by
the City of Rochester. Approximately $18.6 million has been spent on these projects through
December of this year. Total life-to-date expenditures on these projects is just over $58.5
million.
Please feel free to contact me with any questions or concerns.
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Destination Medical Center Corporation
Financial Budget Summary
December 2020 (unaudited)
2020 Approved Curent Month December 2020 Amount Percent
Approved Budget December 2020 Year To Date Remaining Remaining
General Administrative Expenses 41,000 8,373 32,627 80%
Professional Services 225,500 20,878 151,231 74,269 33%
Insurance and Bonds 20,000 26,080 (6,080) -30%
Contributions (Keep It Local Grants - Pandemic Response)51,078 51,078
(Federal CAREs Funded - Amended Budget)- - -
Subtotal DMCC 337,578 20,878 236,762 100,816 30%
Third Party Costs - DMC EDA **
Payroll, Staff, Administration & Benefits-EDA 965,481 90,944 717,425 248,056 26%
Operating Expenses 69,695 28,300 269,732 (200,037) -287%
Operational Costs - Contracted 1,322 28,193 (28,193) #DIV/0!
Economic Development Outreach & Support 807,200 14,125 507,152 300,048 37%
Professional Services 677,770 11,556 606,944 70,826 10%
Miscellaneous Expenses 50,000 - - 50,000 100%
Subtotal EDA 2,570,146 146,246 2,129,448 440,698 17%
2145902
2179991.8
Total DMCC 2020 34089.8 2,907,724 167,123 2,366,209 541,515 19%
-
2019 Budget Carryover - Encumbered Funds for EDA Contracts 16,800 - 16,800 - 0%
Totals for 2020 Including Encumbrance 2,924,524 167,123 2,383,009 541,515 19%
DMCC Working Capital Note 1,000
EDA Working Capital Note 75,000
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DMCC Projects - Managed by the City of Rochester
As of 12/31/2020 (unaudited)
Project YTD
Expenditures Project Budget Life To Date
Expenditures
8611C- - Sn/S12AvSW/NW<2StSW>2StNW 60,059 2,850,000 583,080
8612C- - WZmbrRvrSn/SRlfLin<CookPk>CCDr 950,000 46,592
8613C- - ChateauTheatrePre-OccupancyM&O 80,263 4,826,802 451,618
8614C- - DMCTransit&InfrastrctrPgrmMgmt 9,872 3,260,524 1,826,262
8617C- - Broadway @ Center Parking Ramp 10,500,000 10,500,000
8618C- - SharedParkngStudy&PrgmDevlpmnt 35,298 2,061,854 1,874,219
8620C- - City Loop Plan 1,209,938 968,732
8621C- - Transit Circulator Study 2,241,532 1,780,877
8623C- - DMCC Street Use Study 3,117,708 2,885,882
8624C- - ChateauTheatreBldgImprov/Purch 218,612 8,455,706
8625C- - Heart of the City 10,381,216 11,648,940 12,715,977
8626C- - Sn/SUpsize1Av&3AvSE<4StS>1StN 3,086,621 8,500,000 8,618,921
8326 C - Reconst4thStSW<1stAve>6thAveSW 2,250,000
8628C- - Downtown Circulator Project 229 269,941
8629C- - Development Plan Update 139,760 139,760
8632C- - Downtown Changes COVID-19 43,524 43,524
8702C- - RPTSolarPwrdBusFleetGrntApp 51,333
8703C- - FTA TOD Pilot PrgmGrntApplctn 26,058
8704C- - FTA Low-NoEmissions PrgGrntApl 1,140
8705C- - TransitCrcltr-FTAGrntBus&Faclt 19,258
8706C- - DMCTransitCirculatorTODPlnStdy 672,041 829,414
8707C- - Rapid Transit Projects 1,636,117 1,636,117
8708C- - Transit Villages 1&2 29,321 29,321
8709C- - Arrive Rochester Implementatn 18,983 18,983
8804C- - TH 52 LID Bld GrantApplication 22,145
8901C- - TH 14/52 InterchangeBldGrntApp 36,331
8902C- - FestivalAreaStdy&ConceptDesign 84,133
8903C- - DedctdBikeLns-3rd/4thAve&CtrSt 1,390,192 1,623,139
8904C- - Discovery Walk 758,280 758,280
Grand Total 18,560,389 51,167,298 58,546,744
* Notes: Broadway @ Center Parking Ramp Maximum DMCC Local Share Credit = $10,500,000
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A.
DESTINATION MEDICAL CENTER CORPORATION
RESOLUTION NO. ___-2021
Authorizing Report to the Legislature Pursuant to Statute
BACKGROUND RECITALS
A.Minnesota Laws, Chapter 143, Article 10 (the “Act”) provides that by February
15 of each year, the Destination Medical Center Corporation (“DMCC”) and the City of
Rochester (the “City”) must jointly submit a report to the chairs and ranking minority members
of the legislative committees and divisions with jurisdiction over local and state government
operations, economic development, and taxes and to the Commissioners of Revenue and
Employment and Economic Development, and to Olmsted County. The DMCC and the City
must also submit the report as provided in Minnesota Statutes Section 3.195. The report must
include the following specific elements:
(1) the development plan and any proposed changes to the development plan;
(2) progress of projects identified in the development plan;
(3) actual costs and financing sources, including the amount paid with state
aid under section 469.47, and required local contributions of projects
completed in the previous two years by the corporation, city, county, and
the medical business entity;
(4) estimated costs and financing sources for projects to be started in the next
two years by the corporation, city, county, and the medical business entity;
and
(5) debt service schedules for all outstanding obligations of the city for debt
issued for projects identified in the plan.
B. The DMCC and City staff have prepared a draft report, due on February 15, 2021,
and attached here as Exhibit 1.
RESOLUTION
NOW, THEREFORE, BE IT RESOLVED, by the Destination Medical Center
Corporation Board of Directors that the Chair or Vice Chair of the DMCC is authorized to
execute and submit the report to the Minnesota Legislature as required by the Act, in form
similar to the report attached here as Exhibit 1, as may be modified through further discussions
with the City, and to take such other actions as are necessary and appropriate to effectuate the
timely submission of the report to the Minnesota Legislature.
1184663.DOCX
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The Honorable John Jasinski
Chair, Local Government Committee
Minnesota State Senate
3211 Minnesota Senate Building
95 University Ave W
St. Paul, MN 55155
The Honorable Sandra Masin
Chair, Local Government Division
Minnesota House of Representatives
543 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155-1206
The Honorable Steve Cwodzinski
Local Government Committee
Minnesota State Senate
2231 Minnesota Senate Building
95 University Ave W
St. Paul, MN 55155
The Honorable Duane Quam
Local Government Division
Minnesota House of Representatives
247 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155-1206
The Honorable Mary Kiffmeyer
Chair, State Government Finance and Policy
and Elections
Minnesota State Senate
3103 Minnesota Senate Building
95 University Ave W
St. Paul, MN 55155
The Honorable Michael Nelson
Chair, State Government Finance and Policy
Minnesota House of Representatives
585 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155-1206
The Honorable Jim Carlson
State Government Finance and Policy
and Elections
Minnesota State Senate
2207 Minnesota Senate Building
95 University Ave W
St. Paul, MN 55155
The Honorable Jim Nash
State Government Finance and Policy
Minnesota House of Representatives
349 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155-1206
The Honorable Eric Pratt
Chair, Jobs and Economic Growth Finance
and Policy Committee
Minnesota State Senate
3219 Minnesota Senate Building
95 University Ave W
St. Paul, MN 55155
The Honorable Mohamud Noor
Chair, Workforce and Business Development
Finance and Policy Committee
Minnesota House of Representatives
379 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155-1206
EXHIBIT 1
to Resolution A - Authorizing Report to Legislature
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Page 2
The Honorable Bobby Joe Champion
Jobs and Economic Growth Finance and
Policy Committee
Minnesota State Senate
2401 Minnesota Senate Building
95 University Ave W
St. Paul, MN 55155
The Honorable Rod Hamilton
Workforce and Business Development
Finance and Policy Committee
Minnesota House of Representatives
277 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155-1206
The Honorable Julie Rosen
Chair, Finance Committee
Minnesota State Senate
2113 Minnesota Senate Building
95 University Ave W
St. Paul, MN 55155
The Honorable Rena Moran
Chair, Ways and Means Committee
Minnesota House of Representatives
449 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155-1206
The Honorable John Marty
Finance Committee
Minnesota State Senate
2301 Minnesota Senate Building
95 University Ave W
St. Paul, MN 55155
The Honorable Pat Garofalo
Ways and Means Committee
Minnesota House of Representatives
295 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155-1206
The Honorable Carla Nelson
Chair, Taxes Committee
Minnesota State Senate
3235 Minnesota Senate Building
95 University Ave W
St. Paul, MN 55155
The Honorable Paul Marquart
Chair, Taxes Committee
Minnesota House of Representatives
597 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155-1206
The Honorable Ann Rest
Taxes Committee
Minnesota State Senate
2217 Minnesota Senate Building
95 University Ave W
St. Paul, MN 55155
The Honorable Greg Davids
Taxes Committee
Minnesota House of Representatives
283 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155-1206
Commissioner Steve Grove
Minnesota Department of Employment and
Economic Development
1st National Bank Building
332 Minnesota Street, Suite E200
St. Paul, MN 55101-1351
The Honorable Stephanie Podulke
Chair, Olmsted County
Board of Commissioners
151 4th St SE
Rochester, MN 55904
Commissioner Robert Doty
Minnesota Department of Revenue
600 North Robert Street
St. Paul, MN 55101
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Page 3
Re: Destination Medical Center
February 15, 2021 Report
Dear Senators, Representatives, Commissioners and Chairs:
On behalf of the Destination Medical Center Corporation (the “DMCC”) and the City of
Rochester (the “City”), we are pleased to submit this report on the progress of the Destination
Medical Center initiative, in accordance with Minnesota Statutes, Sections 469.40 – 469.47 (the
“Act”).
As we look back on the year 2020, we are struck by the value of the Destination Medical
Center (“DMC”) initiative. This model public-private partnership proved resilient enough to help
meet the challenges posed by the COVID-19 pandemic, as well as providing a meaningful
foundation for the years 2021 and beyond.
There is much to celebrate, despite the pandemic.
Together, with our partners, we certified over $272 million in 2019 private investments,
marked the completion of 3 new major private and public infrastructure projects, updated the
Development Plan in accordance with the Act, and adopted a budget for 2021 that reflects our
strategic priorities, which include: transportation, common ground, housing, workforce,
transformative projects and sustainability.
Specifically, in 2020, we certified a total of $272,130,214.44, for the year ending December
31, 2019, which includes $139,126,160.79 in Mayo Clinic investments and $133,004,080.65 in
other private investments. This annual private investment total sets a single-year record for Mayo
Clinic’s investment in the DMC initiative. The cumulative total of Mayo Clinic and other private
investments, through 2019, is $962,794,654.81. The City of Rochester has contributed
$50,546,188.19 in certified expenditures from July 1, 2013, through December 31, 2019.
There are more than 40 projects either proposed, under construction, or completed, the
majority of which are private investments with no DMC-provided public assistance. Approved
DMC projects have created construction jobs that generate median wages of more than $39 per
hour, plus benefits.
In 2020, much focus was given to DMCC Phase 1 priorities:
Discovery Square: Discovery Square is a sixteen-square-block area in the Development
District and is the cornerstone of the DMC economic development strategy. As a live,
work, and play environment, it represents the future of biomedical research, education,
and technology innovation.
One Discovery Square, an 89,000 square foot building designed to support the
acceleration and translation of the most promising health-related therapies and
technology, is a key component to the continued development of the Discovery Square
subdistrict innovation ecosystem. It was completed and opened in 2019, and is currently
at 97 percent capacity as a home to several leading and global health care companies.
Discovery Square Two represents the expansion of DMC’s health care innovation
campus. It is currently under construction. And final design work has been done on
Discovery Walk, a four-block linear parkway along 2nd Avenue SW that will serve
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Page 4
pedestrians and vehicle traffic while also serving as a catalyst to future private
development in Discovery Square.
Heart of the City Phase 1 – Peace Plaza: Heart of the City creates a true center of the
City, where Mayo Clinic, commercial, hospitality, retail, and residential meet. Restoration
of Peace Plaza public space and adjacent streets and alleys has been in the planning
stages for several years. It is a transformative project that includes improved safety,
accessibility, universal design elements, sustainability, integrated art and improved
infrastructure. Work began in spring 2020, and as a result of a focused strategy to hire
locally, 40 percent of the bid packages were awarded to Rochester-based businesses,
and 92 percent were from Minnesota. A specific “Business Forward” Strategy was
developed to support and respond to business needs during construction. Additionally,
efforts were made to allow access to and accommodation of businesses operating
adjacent to the construction site. The construction schedule was also accelerated to
ensure that construction activities do not unnecessarily inhibit the resumption of “normal”
commerce and public events as the risk presented by the COVID-19 pandemic recedes.
Phase 1 of this project is expected to be completed in summer, 2021.
Transit: A forward-thinking transportation plan is integral to DMC’s success. With the 2019
selection of the locally preferred alternative for route and mode of the transit line and an
additional emphasis on creating transit villages, the City, County, the DMCC and the EDA
worked together to submit a Federal Transit Administration Small Starts Grant application.
If successful, the federal grant will support an approximately three-mile bus rapid transit
(“BRT”) route that will run from the west transit village in northwest Rochester to downtown
Rochester via 2nd Street SW, with seven station stops along the route. This BRT route is
expected to be the first phase of a more extensive transit circulator. At Mayo Clinic’s Saint
Marys Hospital Station, a transit center will be built, along with a pedestrian tunnel
connecting the hospital and transit center. DMC analyses of the transit route and mode,
transit villages, and transit stops indicate that significant economic development
opportunities will be created by this transit project. This was studied further in 2020 with
the creation of the “New Rapid Transit For A Growing, Equitable Rochester,” a transit-
oriented development (“TOD”) study. Additionally, the City has established bike- and car-
sharing programs, piloted scooter-sharing, and marketed the services offered by the
“Arrive Rochester” transportation management association.
COVID-19: Once the COVID-19 pandemic started, all of our partners, the City, Olmsted
County (the “County”), Mayo Clinic and the Destination Medical Center Economic
Development Agency (the “EDA”) recognized that we needed to pivot, to try to address
the new challenges presented by the pandemic in order to blunt the harshest economic
impacts of the pandemic and best position Rochester to lead southeastern Minnesota’s
post-pandemic economic recovery.
Five-Year Update to the Development Plan: The Act requires that the Development Plan,
which is the guiding document for the DMC initiative, be updated not less than every five
years. As the year began, we undertook the task of preparing and planning for the update.
The five-year update was approved by the City of Rochester Common Council and
Destination Medical Center Corporation Board of Directors in November 2020 and is
further discussed below.
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This report will provide a brief background of Destination Medical Center and then provide
the responses required by the Act.
I. Destination Medical Center: Background.
A. Private Investment Leads the Public Investment.
The Act required that private investment lead the way for this private-public model of
partnership: over $200,000,000 in Mayo Clinic and other private investment had to occur before
any state funding would begin to flow. That threshold was met, and exceeded, in 2017.
B. Development Plan.
One of the primary goals of the Act was the adoption of a Development Plan. In
September 2013, the DMCC established specific goals and objectives for the Development Plan:
to create a comprehensive strategic plan, and over the life of the project, to stimulate over $5
billion in private investment that will be supported by $585 million in public funds, create 35,000-
45,000 new jobs, generate $7.5 billion to $8.5 billion in net new tax revenue, and achieve the
highest quality patient, visitor and resident experience.
The Development Plan is the strategic framework for the Destination Medical Center
initiative, establishing a comprehensive business and economic development strategy. It
addresses several items, including land use, transportation and infrastructure planning, market
research, funding priorities, business and economic development and market strategies. Upon
making the findings set forth in the Act, including finding that the City had approved the
Development Plan, the DMCC adopted the Development Plan on April 23, 2015.
The Act requires that the Development Plan be updated not less than every five years.
The “Five-Year Update” was a point of focus for the DMCC, the City and the EDA in 2020, and
provided an overview of the progress made in the first five years of the DMC initiative, as well as
a roadmap for the next five years.
As a part of the Five-Year Update to the Development Plan, HR&A Advisors (“HR&A”)
were engaged to perform a COVID-19 impact analysis to assess dual crises: an unprecedented
global health emergency, coupled with the steepest jobs loss on record. In the Rochester
standard metropolitan statistical area, jobs in the health care services, the leading employment
sector, and in the hospitality sector have been hit the hardest.
In a detailed report set forth in the Five-Year Update, HR&A made the following findings:
Unlike natural disasters, this pandemic hit every city in the country; however not
all are developing recovery strategies.
Despite significant losses, Rochester has fared better than other cities.
Rochester is starting its recovery from a place of strength.
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Rochester had a robust and growing economy. The healthcare industry and Mayo
Clinic provide stability during weak economies. The City has the tools from the
DMC to support growth.
Future economic development strategies should:
o support existing local businesses
o prioritize public infrastructure
o re-use excess real estate capacity creatively
o diversify the economy
o support development proactively
These findings informed our work and strategic planning for the Five-Year Update. The
Development Plan, along with the Five-Year Update, is posted on the DMCC website:
www.dmc.mn.
C. Mission Statement.
The DMCC’s mission statement provides a framework to guide its work:
With Mayo Clinic at its heart, the Destination Medical Center (DMC) Initiative is the catalyst
to position Rochester, Minnesota, as the world’s premier destination for health and
wellness; attracting people, investment, and jobs to America’s City for Health and
supporting the economic growth of Minnesota, its bioscience sector, and beyond.
D. Website.
The DMCC’s website is: www.dmc.mn. The website contains the regular meeting
schedule, meeting agendas, minutes and other information on DMCC activities, as well as project
updates, investor and developer information, subdistrict descriptions, market research, and
ongoing activities of the EDA. The City’s website, www.rochestermn.gov, also has a link to the
DMCC website.
II. Specific Elements Required to Be Included in the Report.
The Act requires that certain elements be included in this annual report. Some of what is
presented here has been referenced above.
A. “The Development Plan and any proposed changes to the Development Plan.”
The Development Plan was initially adopted on April 23, 2015, and amended in 2016 and
in 2020 to modify the Destination Medical Center Development District, the geographic area in
the City of Rochester in which public infrastructure projects are implemented to support DMC.
The Act requires that the Development Plan be updated not less than every five years.
As noted above, the Five-Year Update was posted publicly and a public hearing was held.
Pursuant to the statutory requirements, the City approved the Five-Year Update, and
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subsequently the DMCC adopted it as well. The Development Plan and the Five-Year Update
can be found at the DMCC website: www.dmc.mn.
B. “Progress of projects identified in the Development Plan.”
According to the Act, a project must be approved by the DMCC before it is proposed to
the City. The DMCC must review the project proposal for consistency with the adopted
Development Plan. Since the adoption of the Development Plan on April 23, 2015, several
projects have been approved by the DMCC.
1. Completed Projects.
The Historic Chateau Theatre: is located in the “Heart of the City” subdistrict as
described in the Development Plan. In 2015, the DMCC approved the acquisition
of the Chateau Theatre by the City for the purchase price amount of $6,000,000,
of which Mayo Clinic contributed $500,000. The acquisition and renovation of this
10,000 square foot, historically-designated landmark is considered key to the
planning and enhancement of the Heart of the City subdistrict. After construction
of the capital improvements, the Chateau re-opened in 2019. The City selected St.
Paul-based Exhibits Development Group to manage and program the building for
the next 3-5 years. Due to the health risks presented by the COVID-19 pandemic,
operation of the Chateau Theatre temporarily ceased in early 2020.
The Hilton Rochester Mayo Clinic Area (formerly known as the “Broadway at
Center” project): is located in the “Downtown Waterfront” subdistrict as described
in the Development Plan. Approved in 2015, this 371,000 square foot mixed-use
project includes a 264-room hotel, restaurants, retail space, a skyway connection,
and a five-level public parking ramp with 540 public spaces and 90 private spaces.
The restaurants and hotel opened in 2019.
The Berkman Apartments (formerly known as the “Alatus Project”): is located on
2nd Street SW in the “Saint Marys” subdistrict as described in the Development
Plan. Approved in 2016, this mixed-use project involved the construction of an
approximately 350,000 square foot, thirteen-level commercial and residential
complex. It includes 350 market-rate rental units, created an estimated 235
construction jobs and eight permanent jobs, and generated a total of $115 million
in private investment. The Berkman was completed in 2020.
The Maven on Broadway (formerly known as Urban on First): is located south of
4th Street SW between 1st Avenue SW and Broadway Avenue, and is in the
“Discovery Square” subdistrict as described in the Development Plan. Approved
in 2017, this approximately $38 million mixed use project includes a six-story
building with 156 market rate rental units, parking, and street level commercial and
retail space for a total of 238,700 square feet. The Maven on Broadway was
completed in 2019.
One Discovery Square (formerly known as Discovery Square Phase One): is on
First Avenue SW in the “Discovery Square” subdistrict as described in the
Development Plan. Approved in 2017, this approximately $35 million bio-science
building will be a center of innovation and is housing companies whose mission is
to accelerate bio-science and technology discoveries to market. The four-story,
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89,000 square foot building includes office, collaborative and retail space. As
noted above, this project is the first phase of achieving a key component of the
Development Plan: providing jobs in the bio-science sector. One Discovery
Square was completed in 2019 and is approximately 97 percent rented.
Wells Fargo Renovation (21 1st Street SW): This project is a renovation of a 92,000
square foot existing building, located in the “Heart of the City” subdistrict as
described in the Development Plan. Approved in 2018, this project is a catalyst
for the public realm in the Heart of the City subdistrict and includes connections to
the street and pedestrian skyway. The renovation has made approximately 23,000
additional square feet of commercial or office space available. The project created
an estimated 30 construction jobs and provided 115 permanent jobs. This project
was completed in 2020.
Hotel Indigo Renovation: The Hotel Indigo project involved the renovation of an
existing 172-room Holiday Inn, located in the “Downtown Waterfront” subdistrict as
described in the Development Plan. Approved in 2018, the $42 million
redevelopment included the addition of 33,000 square feet to the existing 114,500
square feet, and provided approximately 111 construction jobs and 28 new
permanent jobs. Opening of the new hotel and restaurant occurred in 2020.
2. Projects Underway.
Hyatt House: The Hyatt House project is located in the “Central Station” subdistrict
as described in the Development Plan. Approved in 2018, the $44 million project
includes an eight-story, 172-room extended-stay hotel, and is providing
approximately 257 construction jobs and while creating 38 permanent jobs.
Construction began in mid-2019, with completion expected in 2021.
Heart of the City Phase 1 – Peace Plaza: As noted above, public realm
construction of phase 1 is ongoing and estimated to be completed in 2021. During
construction, significant efforts have been made to minimize negative impacts on
nearby businesses.
Discovery Walk: Design development is underway for this four-block linear
parkway, and construction is expected to begin in 2021. This public realm space
provides the linkage between Mayo Clinic and the Discovery Square projects.
Discovery Square Two: This expansion of the DMC bio-medical, research and
technology innovation campus is a keystone to the DMC economic development
strategy and is contemplated to be a 123,000 square foot building. Like One
Discovery Square, this new construction will support emerging entrepreneurs and
innovators across health industry sectors. The groundbreaking occurred in 2020,
and construction is underway.
Downtown Waterfront SE Small Area Plan: The City has initiated a small area plan
study for a 60+ acre area, located southeast of the downtown core on the Zumbro
River. The plan is intended to guide the transformation of the redevelopment area
to a future mixed-use neighborhood.
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Transit: Rochester Rapid Transit is an approximately three-mile bus rapid transit
(“BRT”) route that, in its first phase, will run from a west transit village to downtown
Rochester with seven stations. As noted, DMCC and the City approved the
submission of a grant application to the Federal Transit Administration, seeking
49% of the capital costs, with the remaining portion to be paid by DMC State and
County Transit Aid.
There are several other projects underway, in the initial stages of planning, or expected to
come to fruition in 2021. The status of these projects will be reported in a future annual report.
In addition to the approved projects noted above, the DMCC and the City have approved
a Capital Improvement Plan (“CIP”) for public infrastructure projects for 2021. Projects identified
in the CIP are categorized as follows: Common Ground, Transformative Private Development,
Streets and Sewers, and Transit.
Common Ground Projects include:
Heart of the City
Discovery Walk Design and Implementation
Chateau Theatre Improvements
Downtown Sidewalk Experience Enhancements
Riverfront Reimagined
Streets and Sewers Projects include:
6th Street Bridge
Reconstruct North Broadway
12th and 13th Avenue Sanitary and Storm Sewer Capacity Improvements
Downtown District Energy System
Transit Projects include:
Arrive Rochester Implementation
Rapid Transit Implementation
Active Community Resource Center
Downtown Electric Charging Stations
The DMC-funded projects above are only a portion of the number and type of public and
private development projects in the DMC district. Early strategic DMC investments in public
infrastructure and commercial and residential projects successfully established Rochester as a
destination for investment and development. Other projects, which are now proceeding without
the need for public DMC support, include workforce and market-rate housing, extended stay
hotels for patients and companions, renovations to historic properties, world-class medical care
and research facilities, co-working space, small business improvements, and more.
C. “Actual costs and financing sources, including the amount paid under Minnesota
Statutes Section 469.47, and required local contributions of projects completed in the previous
two years by the DMCC, City, Olmsted County and Mayo.”
The Act requires that an annual certification of private investment by Mayo Clinic and other
private investors be made to DEED by April 1 of each year, and DEED must certify that
$200,000,000 of private investment has been made before any state funding may be paid. This
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threshold was met and exceeded in 2017. The cumulative total amount of private and Mayo Clinic
certified investments to date is $962,794,654.81.
In compliance with Minnesota Statutes Section 469.47, attached is the annual certification
of Mayo Clinic and other private investment that was submitted to DEED on March 27, 2020, and
the revised annual certification of City expenditures, which was submitted to DEED on May 18,
2020 (Exhibit A). DEED conducted its own audit process of the certified expenditures, requested
revisions, and then approved the expenditures. The DEED certifications, dated June 9, 2020, are
also attached (Exhibit B).
In addition, we offer the following information:
1. Through December 31, 2020, State Infrastructure Aid in the amount of
$43,445,321.36 has been received. No State Transit Aid has been received.
2. Actual costs paid by the City from commencement through December 31,
2020 have totaled $59,082,968.14, based on year-end unaudited costs. The
funding source was initially City internal borrowing, which is being repaid, along
with the costs for new projects and initiatives, by the City’s 0.25% DMC sales tax.
The City has also issued capital debt for a new parking ramp in the district. Just as
the Mayo Clinic investments and other private investments have underscored the
commitment to DMC, so too have the City contributions.
3. Through December 31, 2020, Olmsted County has contributed
$10,500,000.
4. The 2021 combined operating and capital improvements budget for the
DMCC totals $47,862,441, a portion of which (approximately $20 million) is being
paid for with funding other than DMC funds. Of this amount $3,000,000 will be
provided by Olmsted County from its wheelage tax. The remaining amount is to be
provided by the City of Rochester from a variety of City funding sources, including
its .25% DMC sales tax. In addition, Mayo Clinic has pledged financial and in-kind
funding to the EDA in the amount of $1,314,970.
D. “Estimated costs and financing sources for projects to be started in the next two
years by the DMCC, City, Olmsted County and Mayo.”
The Development Plan sets forth a framework and examples of projects that may be
considered for funding in the next several years. Each project will be approved on an individual
basis. See also the response to “B” and “C,” above.
E. “Debt service schedules for all outstanding obligations of the City for debt issued
for projects identified in the plan.”
The debt service schedule is attached as Exhibit C.
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CONCLUSION
Thank you for your consideration of this annual report. On behalf of both the DMCC and
the City, we welcome your comments or questions. We look forward to continued progress on
the Destination Medical Center initiative in 2021.
R.T. Rybak, Chair Kim Norton, Mayor
Destination Medical Center Corporation City of Rochester
Enclosures
cc: Legislative Reference Library
1324777-10
22
EXHIBIT A
To February 15, 2021 Report
23
EXHIBIT A
Annual Certification of Mayo Clinic and Other Private
Investment Submitted to DEED on March 27, 2020
(Correspondence to Steve Grove, Commissioner, Minnesota
Department of Employment and Economic Development
and Attachments 1, 2 and 3)
and
Revised Annual Certification of City Contributions
Submitted to DEED on May 18, 2020
(Attachment 4)
24
DESTINATION MEDICAL CENTER CORPORATION
201 4th St. SE.
Rochester, Minnesota 55904
March 27, 2020
VIA ELECTRONIC AND U.S. MAIL
Steve Grove
Commissioner
Minnesota Department of Employment and Economic Development
1st National Bank Building
332 Minnesota Street, Suite F-200
Saint Paul MN 55101
Dear Commissioner Grove:
On behalf of the Destination Medical Center Corporation ("DMCC") and Mayo
Clinic, I am pleased to forward the following materials for the April 1, 2020 certification,
pursuant to Minnesota Statutes Section 469.47, Subdivision 2. I would like to
emphasize that the expenditures set forth here are the investments that have been
made by Mayo Clinic and by other private individuals or entities, to advance the
Destination Medical Center initiative.
1.DMCC Certification: I enclose the DMCC Certification of
Expenditures made by an individual or entity, other than Mayo Clinic, for
the period ending on December 31, 2019 ("Attachment 1"). The City of
Rochester, Minnesota, assisted with the compilation of this report. The
amount of investments set forth in this report is $133,004,080.65.
2.Mayo Clinic Certification: I enclose correspondence and
accompanying materials from Jeffrey W. Bolton, Vice President of
Administration at Mayo Clinic, dated March 20, 2020 ("Attachment 2").
Mayo Clinic is certifying expenditures for the period of January 1, 2019
through December 31, 2019 in the amount of $139,126,160.79.
3.Summary of Investments: The summary page, entitled,
"Certification of Expenditures, Destination Medical Center" is enclosed,
setting forth total cumulative expenditures through December 31, 2019, in
the amount of $962,794,654.81 ("Attachment 3").
EXHIBIT A
25
Commissioner Steve Grove
March 27, 2020
Page 2
These investments furthering the Destination Medical Center initiative
demonstrate that this unique public-private partnership is succeeding, and that 2019
was an exceptional year. As we face the challenges presented by the current health
pandemic and emergency in 2020, however, I have a request of you. I would like to
accelerate our economic development efforts this year to make investments where we
can to assist in the re-building of the economy. I ask that DEED also accelerate its
efforts in its certification process to expedite the transfer of state funding for our efforts.
Thank you for your consideration, and please do not hesitate to contact either
DMCC or Mayo Clinic if you need further information. We look forward to continuing to
work with the State of Minnesota, City of Rochester, Olmsted County, Mayo Clinic, and
our other partners on the Destination Medical Center initiative.
Encl.
Sincerely,
R.T. Rybak
Chair
Destination Medical Center Corporation
cc: Destination Medical Center Corporation Board of Directors
Jeffrey W. Bolton, Mayo Clinic
Jeremy LaCroix
1199479-4.DOC
26
ATTACHMENT 1
27
2019 Tracking Worksheet
Building Permits within the DMC Boundary
(Does not include Mayo Projects)
Completed
Year Projects
2017 2,050,000.00$
2018 7,748,655.00$
2019 5,662,402.00$
TOTAL 15,461,057.00$
2018/2019 Destination Medical Center ‐ Partially Completed Projects Tracking
2018 2019
Project Address Total Building Permit Value
Partial Completed Work
Claimed Completed Work Claimed
Ronald McDonald House 850 2nd Street SW 10,126,000.00$ 4,872,363.01$ 5,253,636.99$
Hotel Indigo (Holiday Inn) 220 South Broadway 10,500,000.00$ 1,156,333.15$ 9,343,666.85$
Residence @ Dis. Sq.511 3rd Ave. SW 19,000,000.00$ 9,820,880.09$ 9,179,119.91$
Urban on First 429 South Broadway 30,808,958.00$ 12,455,954.00$ 18,353,004.00$
Berkman (Alatus) 217 & 301 14th Ave SW 93,315,800.00$ 25,936,546.00$ 59,063,337.00$
163,750,758.00$ 54,242,076.25$ 101,192,764.75$
2019/2020 Destination Medical Center ‐ Partially Completed Projects Tracking
2019 2020
Project Address Total Building Permit Value
Partial Completed Work
Claimed Completed Work Claimed
Ryan/Wells Fargo 21 1st SW 5,250,000.00$ 5,250,000.00$
Hyatt House 315 1st Ave. NW 32,253,475.00$ 6,940,448.00$
Eleven02 101 11th Ave. SW 30,255,765.00$ 4,159,810.90$
67,759,240.00$ 16,350,258.90$ ‐$
TOTAL 133,004,080.65$
28
2017 Building Permits
COMPLETED/PARTIAL BUILDING PERMITS
(Within DMC Boundary, does not include Mayo Projects)
Sub Type Level Category Level Permit Number Permit Issue
Date
Within DMC
Boundary
Parcel
Number
Address Info Permit Valuation Work Description Mayo
Project
Lic Prof Owner Current Permit
Status
Current Permit
Status Date
Commercial Bldg Alteration R16-0348CB 2/23/2017 Yes 082430 206 S BROADWAY AVE,
ROCHESTER, MN 55904
$2,050,000 Alterations of phase 1B for offices on 5,
6,7 levels only and roof top chiller
(Associated Bank)
No ALVIN E BENIKE, INC
AARON E BENIKE
2960 W Hwy 14
ROCHESTER, MN 55901
BLOOM INTERNATIONAL REALTY LLC
206 BROADWAY S
SUITE 400
ROCHESTER, MN 55904
C of C 10/4/2019
Commercial Bldg Phased Partial
Permit
R15-0384CB 4/4/2017 Yes 017936 10 E CENTER ST, ROCHESTER,
MN 55904
$45,000,000 CP-4 package: Core building and shell, no
MEP's (Hilton on Broadway)
No KRAUS-ANDERSON CONSTRUCTION
CO
NICK LEIMER
416 S BROADWAY
ROCHESTER, MN 55904
Legacy Fund I, LLC
30 3 St SE
ROCHESTER, MN 55904
Finaled 3/29/2019
Commercial Bldg New R15-0447CB 11/8/2017 Yes 017936 10 E CENTER ST, ROCHESTER,
MN 55904
$38,282,469 CP-6 interior fit-up for 396,570 sq ft, 19
story, 264 hotel rooms
(Hilton on Broadway)
No KRAUS-ANDERSON CONSTRUCTION
CO
NICK LEIMER
416 S BROADWAY
ROCHESTER, MN 55904
Legacy Fund I, LLC
30 3 St SE
ROCHESTER, MN 55904
Finaled 7/25/2019
Included on the Partial Expenditure Credit Worksheet 2,050,000$
29
2018 Building Permits
COMPLETED / PARTIAL BUILDING PERMITS
(Within DMC Boundary, does not include Mayo Projects)
Sub Type Level Category Level Permit Number Permit Issue
Date
Parcel
Number
Address Info Permit
Valuation
Work Description Owner Current Permit
Status
Current Permit
Status Date
Commercial Bldg Alteration R17-0435CB 1/16/2018 082430 206 S BROADWAY AVE,
ROCHESTER, MN 55904
$299,000 Interior renovation for office fit out
(Associated Bank 5th floor, Suite 500)
Oxford Management
206 BROADWAY S
STE 400
ROCHESTER, MN 55904
CO 5/16/2019
Commercial Bldg Phased Partial
Permit
R17-0492CB 4/24/2018 050075 202 SW 4 ST, ROCHESTER, MN
55902
$12,969,000 Phased partial permit for complete core
and shell. (Discovery Square Phase 1)
Mortenson Properties, Inc.
700 Meadow Lane N
Minneapolis, MN 55422
CO 7/10/2019
Commercial Bldg Addition R18-0048CB 7/9/2018 082445 850 SW 2 ST, ROCHESTER, MN
55902
$10,126,000 Addition of 30 guest rooms and parking
stalls. (7R150200 / Ronald McDonald
House)
Ronald McDonald House
Dave Eide
850 2nd St SW
Rochester, MN 55902
CO 11/4/2019
Commercial Bldg Alteration R18-0104CB 8/13/2018 018054 121 N BROADWAY AVE,
ROCHESTER, MN 55906
$1,989,204 Historic renovation of former armory
building. (Castle Community)
CASTLE COMMUNITY LLC
Scott Hoss
115-1/2 North Broadway
ROCHESTER, MN 55906
CO 2/8/2019
Commercial Bldg Alteration R18-0294CB 9/10/2018 080524 220 S BROADWAY AVE,
ROCHESTER, MN 55904
$500,000 Selective demolition of the interior,
exterior façade and roof structure to
prepare for future building alteration.
(Holiday Inn - Rochester)
Ebbie Nakhjavani
220 Newport Center Dr
Suirte 11-262
Newport Beach, CA 92660
Issued 9/10/2018
Commercial Bldg Alteration R18-0335CB 9/12/2018 017926 21 SW 1 ST, ROCHESTER, MN
55902
$98,000 Demolition of 6th floor space to shell
condition. Interior only for future tenant.
(Wells Fargo)
ROCHESTER PROPERTY OWNER
LLC - Timothy Gray
533 SOUTH THIRD ST
STE 100
MINNEAPOLIS, MN 55415
Finaled 4/8/2019
Commercial Bldg Alteration R18-0239CB 9/24/2018 082439 412 SE 3 AVE A & B, ROCHESTER,
MN 55904
$450,000 Tenant build out of space A & B into a bar,
café and lounge. (Fiddlehead Café)
Flats on 4th
412 3rd Ave SE
Rochester, MN 55904
CO 4/4/2019
Commercial Bldg Alteration R18-0289CB 10/9/2018 017887 100 SW 1 AVE, ROCHESTER, MN
55902
$283,665 Interior fit-up of leased space for a coffee
shop adjacent to Peace Plaza. (MOKA
Coffee - Peace Plaza)
Joan Wilson
513 Main St
Suite C
LaCrosse, WI 54601
CC 8/5/2019
Commercial Bldg Addition R18-0221CB 10/25/2018 018448 301 N BROADWAY AVE,
ROCHESTER, MN 55906
$1,175,000 2920 sq. ft. addition with some remodeling
inside to white box main (The Bistro--1st
floor); one new apartment and one
existing (3rd floor). (Avalon Building)
ABM IDEATIONS LLC
4004 AUTUMN LAKE CT SW
ROCHESTER, MN 55902
CO 12/5/2019
Commercial Bldg Alteration R18-0399CB 11/16/2018 082430 206 S BROADWAY AVE,
ROCHESTER, MN 55904
$230,000 Fit up of the third floor Northwest corner of
building for new tenant. (Meyer Borgman
Johnson Rochester Office)
Alan Hiniker
3270 19th St NW
#210
Rochester, MN 55901
CO 2/11/2019
Commercial Bldg New R18-0323CB 11/27/2018 083795 202 SW 4 ST, ROCHESTER, MN
55902
$2,012,000 Tenant fit-out on two levels of the new
Discovery Square building. Building
collaboration and lab space on the floors.
(Discovery Square - U of M)
SILVER LAKE INVESTORS / MAYO
CLINIC
700 Meadow Lane North
ROCHESTER, MN 55422
CO 7/10/2019
Commercial Bldg New R18-0404CB 12/3/2018 083795 202 SW 4 ST, ROCHESTER, MN
55902
$726,786 Tenant build out of office space on first
floor. (Epic Systems)
Epic Systems Corp
1979 Milky Way
Verona, WI 53593
CO 4/24/2019
Commercial Bldg Alteration R18-0389CB 12/7/2018 080524 220 S BROADWAY AVE,
ROCHESTER, MN 55904
$5,000,000 Remodel of existing hotel rooms floors 4-
8. (Hotel Indigo - Old Holiday Inn)
Jim Toninato
5713 Grand Ave
Suite B
Duluth, MN 55807
TCO Issued 1/10/2020
Commercial Bldg Alteration R18-0407CB 12/10/2018 017887 20 SW 1 ST, ROCHESTER, MN
55902
$145,000 Fit-up for a new restaurant. (Jerk King
Restaurant)
Johnson Osei
20 1st St SW
Rochester, MN 55902
CO 5/14/209
Multi-Family Bldg Phased Partial
Permit
R17-0157MFB 2/21/2018 002495 217 SW 14 AVE, ROCHESTER, MN
55902
$4,900,000 Alatus - Footing & Foundation "Tower
Only" (2nd Street Housing Mixed-Use
Development)
Rochester MN Properties, LLC
800 NICOLLET MALL
STE 2850
MINNEAPOLIS, MN 55402
Issued 2/21/2018
30
2018 Building Permits
COMPLETED / PARTIAL BUILDING PERMITS
(Within DMC Boundary, does not include Mayo Projects)
Multi-Family Bldg Phased Partial
Permit
R17-0143MFB 2/27/2018 083687 511 SW 3 AVE, ROCHESTER, MN
55902
$1,750,000 6 Story Multi-Family Apartment Building
with Mixed-Use Commercial (Residence
at Discovery Square) Footing/Foundation
imcluding Precast Plank Installation
RESIDENCE AT DISCOVERY SQUARE
LLC
206 SOUTH BROADWAY
ROCHESTER, MN 55904
Finaled 8/30/2019
Multi-Family Bldg New R17-0141MFB 5/16/2018 017718 511 SW 3 AVE, Rochester, MN
55902
$17,250,000 6 Story Multi-Family Apartment Building
with Mixed-Use Commercial (Residence
at Discovery Square)
RESIDENCE AT DISCOVERY SQUARE
LLC
206 SOUTH BROADWAY
ROCHESTER, MN 55904
TCO Issued 8/28/2019
Multi-Family Bldg Phased Partial
Permit
R18-0003MFB 5/21/2018 017770 425 S BROADWAY AVE,
ROCHESTER, MN 55904
$2,428,958 Foundation permit application for new
multi-family housing development. Two
levels of parking and 5 levels of residential
housing. (Urban on First)
URBAN ON FIRST LLC - Titan
Development
30 3 ST SE
STE 600
ROCHESTER, MN 55904
Finaled 11/19/2019
Multi-Family Bldg New R18-0011MFB 8/9/2018 002495 217 SW 14 AVE, ROCHESTER, MN
55902
$86,237,507 New multi-use residential apartment
building with retail and parking (2nd St
Mixed Use Development Tower Only)
Ashley Bisner
800 Nicollet Mall
Suite 2850
Minneapolis, MN 55402
TCO Issued 1/16/2020
Multi-Family Bldg Alteration R18-0012MFB 8/23/2018 014472 431 SE 3 AVE, ROCHESTER, MN
55904
$340,000 Existing R-2 apartment alteration to
convert from 54 units to 25. (Clinic
Suites)
Andy Friederichs
10817 110 ST SE
CHATFIELD, MN 55923
CO 10/18/2019
Multi-Family Bldg New R18-0015MFB 9/5/2018 017770 425 S BROADWAY AVE,
ROCHESTER, MN 55904
$28,380,000 New multi-family housing development.
Two levels of parking and 5 levels of
residential housing. (Urban on First)
URBAN ON FIRST LLC - Titan
Development
30 3 ST SE
STE 600
ROCHESTER, MN 55904
CO 11/19/2019
Multi-Family Bldg New R18-0037MFB 10/3/2018 084104 301 SW 14 AVE, ROCHESTER, MN
55902
$2,178,293 Low rise 45 unit apartment building with 2
walk up units (EWU1 & EWU2) attached
to tower building (R18-0011MFB).
(Berkman)
ROCHESTER MN PROPERTIES LLC
800 NICOLLET MALL
STE 2850
MINNEAPOLIS, MN 55402
Issued 10/3/2018
Included on the Partial Expenditure Credit Worksheet 7,748,655$
31
2019 Building Permits
Completed / Partial Building Projects
(within DMC Boundary, does not include Mayo Projects
Sub Type Level Category Level Permit Number Permit Issue
Date
Parcel
Number
Address Info Permit
Valuation
Work Description Owner Current Permit
Status
Current Permit
Status Date
Commercial Bldg Alteration R18-0324CB 1/4/2019 081707 20 SW 2 AVE, ROCHESTER, MN
55902
$200,000 Replacement of exterior emergency
egress stair. (Kahler Grand Hotel)
KAH 20 2ND AVENUE LLC - Christopher
Ness
20 2 AVE SW
ROCHESTER, MN 55902
Finaled 4/1/2019
Commercial Bldg Alteration R18-0376CB 1/8/2019 083045 10 E CENTER ST, ROCHESTER,
MN 55904
$1,650,000 Tenant improvement in first floor space of
LF-I Broadway at Center project.
(Pittsburgh Blue Restaurant)
Titan Development - Brian Moser
30 3 ST SE
STE 600
ROCHESTER, MN 55904
C of O Issued 7/8/2019
Commercial Bldg Alteration R18-0454CB 3/8/2019 080524 220 S BROADWAY AVE,
ROCHESTER, MN 55904
$5,000,000 Remodel of existing hotel rooms and
support spaces on floors 1, 2, & 3. (Hotel
Indigo)
Jim Toninato
5713 Grand Ave
Suite B
Duluth, MN 55807
TCO Issued 1/13/2020
Commercial Bldg Alteration R18-0227CB 3/15/2019 017882 150 S BROADWAY AVE,
ROCHESTER, MN 55904
$161,000 Front entry and bar reconfiguration.
Upgrade of interior finishes. (Pescara -
Double Tree Hotel)
BGD5 HOTEL LLC
30 3 ST SE
STE 600
ROCHESTER, MN 55904
Finaled 5/30/2019
Commercial Bldg Alteration R19-0044CB 4/2/2019 068011 15 SE 1 ST, ROCHESTER, MN
55904
$143,850 Skyway level corridor fit-up and whitebox
tenant space. (Broadway Plaza)
ROCHESTER DEVELOPMENT INC
7619 LITTLE RIVER TPKE
STE 650
ANNANDALE, VA 22003
Finaled 6/17/2019
Commercial Bldg Alteration R19-0032CB 4/9/2019 081707 20 SW 2 AVE, ROCHESTER, MN
55902
$505,000 Interior tenant finish for new Qdoba
Mexican Restaurant. (Qdoba Mexican
Eats)
CMP Foods - Mark or Leigh Miller
16694 206th Circle
Hutchinson, MN 55350
C of C Issued 10/9/2019
Commercial Bldg Alteration R19-0037CB 4/15/2019 083045 10 E CENTER ST 2A,
ROCHESTER, MN 55904
$655,000 Restaurant tenant fit up. (Hilton Café) LEGACY FUND 1 LLC
30 3 ST SE
STE 600
ROCHESTER, MN 55904
C of O Issued 7/26/2019
Commercial Bldg Alteration R19-0104CB 4/29/2019 083045 10 E CENTER ST, ROCHESTER,
MN 55904
$152,580 Tenant improvement including completion
of electrical and mechanical as well as
finishes. (Cambria Gallery)
Cambria
31496 Cambria Ave
LeSueur, MN 56058
C of O Issued 8/26/2019
Commercial Bldg Alteration R19-0016CB 5/13/2019 083795 202 SW 4 ST, ROCHESTER, MN
55902
$250,300 Build out for a café on level one.
(Discovery Square)
Silver Lake Investors
700 Meadow Lane North
Minneapolis, MN 55422
C of O Issued 8/2/2019
Commercial Bldg Alteration R19-0127CB 5/23/2019 081707 20 SW 2 AVE, ROCHESTER, MN
55902
$45,000 Installation of new MUA and EF unit, and
all associated duct for kitchen exhaust for
new tenant space. (Kahler/Qdoba grease
duct improvement)
Kahler Hospitality Group
717 3rd Ave SE
Rochester, MN 55904
Finaled 11/19/2019
Commercial Bldg Alteration R19-0115CB 6/18/2019 082430 206 S BROADWAY AVE,
ROCHESTER, MN 55904
$549,212 Renovation of existing branch bank.
(Associated Bank)
Doug Harber
2655 Campus Dr
Plymouth, MN 55441
C of C Issued 11/21/2019
Commercial Bldg Alteration R19-0186CB 6/18/2019 080419 519 SW 1 AVE, ROCHESTER, MN
55902
$22,576 Remove and replace walls and ceilings in
the meat prep room. Layout to remain the
same. (People's Food Co-op)
People's Food Co-op
519 1st Ave SW
Rochester, MN 55902
Finaled 6/28/2019
Commercial Bldg Alteration R19-0069CB 7/5/2019 083045 10 E CENTER ST 141,
ROCHESTER, MN 55904
$65,000 Tenant improvements to include
completion of mechanical, plumbing and
electrical as well as finishes. (Hilton Lobby
Bar)
Rochester Hospitality Group, LLC
212 2nd St Se Suite 225
Minneapolis, MN 55414
C of O Issued 12/27/2019
Commercial Bldg Alteration R19-0101CB 7/9/2019 083795 202 SW 4 ST, ROCHESTER, MN
55902
$543,294 Tenant improvement occupies space on
the third level of the new Discovery Square
Building. Build out includes offices and lab
space. (Wuxi Diagnostics)
Silver Lake Investors
700 Meadows Lane North
Minneapolis, MN 55422
C of O Issued 9/30/2019
32
Commercial Bldg Alteration R19-0244CB 7/24/2019 082430 206 S BROADWAY AVE,
ROCHESTER, MN 55904
$98,600 Repair to elevator shaft walls and stairway
walls and fire stopping of penetrations.
(Associated Bank Building)
BLOOM INTERNATIONAL REALTY LLC
206 BROADWAY AVE S
STE 500
ROCHESTER, MN 55904
C of C Issued 8/27/2019
Commercial Bldg Alteration R19-0175CB 8/16/2019 083795 202 SW 4 ST 220, ROCHESTER,
MN 55902
$460,990 New office/lab tenant improvement. (Suite
220 Discovery Square Building)
Silver Lake Investors
700 Meadow Lane North
Minneapolis, MN 55422
C of O Issued 11/1/2019
Commercial Bldg Alteration R19-0286CB 10/14/2019 017897 101 SW 1 AVE, ROCHESTER, MN
55902
$100,000 Expanding Caribou Coffee into the
neighboring tenant space -Freshens.
Increasing seating. (Caribou Coffee)
Matt Masica
2900 Lakebreeze Ave North
Brooklyn Center, MN 55429
C of C Issued 11/8/2019
Multi-Family Bldg Alteration R19-0002MFB 1/29/2019 018102 211 NW 2 ST 2010, ROCHESTER,
MN 55901
$45,000 Alteration to suite 2010. CHARTERHOUSE INC - Deborah Kenitz
211 2 ST NW
ROCHESTER, MN 55901
Finaled 4/15/2019
Multi-Family Bldg Alteration R19-0054MFB 8/7/2019 018102 211 NW 2 ST 1816, ROCHESTER,
MN 55901
$15,000 Apartment renovation. (Charter House) CHARTERHOUSE INC - Scott Green
211 2 ST NW
ROCHESTER, MN 55901
Finaled 11/13/2019
Commercial Bldg Addition R19-0029CB 5/16/2019 017926 21 SW 1 ST, ROCHESTER, MN
55902
$5,250,000 Addition of Jewel Box, re-skinning of
exterior façade, relocating domestic water
in Peace Plaza and installation of new
elevator. (Wells Fargo Downtown)
ROCHESTER PROPERTY OWNER
LLC - Tony Barronco
533 SOUTH THIRD ST
STE 100
MINNEAPOLIS, MN 55415
Issued 5/16/2019
Demolition Commercial R19-0003D 2/28/2019 075697 315 NW 1 AVE, ROCHESTER, MN
55901
$63,000 Demolition of existing American Legion
building, including removal of existing
asphalt parking lot/curbs; for future
construction of Civic on First-Hyatt House
hotel project
EKN Development Group
220 Newport Center DR
Newport Beach, CA 92660
Issued 2/28/2019
Commercial Bldg Phased Partial
Permit
R18-0467CB 5/16/2019 075697 315 NW 1 AVE, ROCHESTER, MN
55901
$3,710,000 Placement of new footings, drilled piers,
structural foundations and 3 levels of post
tensioned concrete for a new 8 story hotel.
(Civic on First)
EKN Development Group - Ebbie
Nakhjavani
220 Newport Center Dr
Suite 11-262
Newport Beach, CA 92660
Issued 5/16/2019
Commercial Bldg New R19-0078CB 7/30/2019 075697 315 NW 1 AVE, ROCHESTER, MN
55901
$28,480,475 New 172 room hotel with 2 levels of
parking. Common amenities on 1st floor
include meeting rooms, swimming pool,
guest kitchen and lobby bar. (Civic on First)
Civic Center Hotel JV, LLC
180 North University Ave
Suite 200
Provo, UT 84601
Issued 7/30/2019
Commercial Bldg Phased Partial
Permit
R19-0206CB 10/2/2019 075680
085073
101 SW 11 AVE, ROCHESTER, MN
55902
$6,750,000 Footing, foundation and underground
utilities for new hotel package. (Eleven02
Hotel)
Tyler Miles
1018 West Atherton Drive
Taylorville, UT 84123
Issued 10/2/2019
Included on the Partial Expenditure Credit Worksheet 5,662,402$
33
34
MAYO CLINIC
�
March 20, 2020
Steve Grove
Commissioner
Minnesota Department of Employment and Economic Development
1st National Bank Building
332 Minnesota Street, Suite E-200
Saint Paul, MN, 55101-1351
Dear Commissioner Grove:
200 First Street SW
Rochester, Minnesota 55905
507-284-2511
mayoclinic. org
Attached with this letter is Mayo Clinic's ce11ification of qualified expenditures of the medical business entity
for the Destination Medical Center (DMC) initiative for the period starting January 1, 2019 and ending
December 31, 2019. The amount of qualified investment is approximately $139. l million. Major projects
included the continued modernization and expansion of Mayo Clinic Hospital, Saint Marys Campus, many
improvements to Mayo Clinic's downtown Rochester campus and Discovery Square and several research/lab
upgrades.
As in prior years, Mayo Clinic is taking a conservative approach when counting DMC-eligible capital
expenditures, and we remain committed to achieving the long-term DMC development and investment goals.
Overall, Mayo Clinic expended more than $283 million on capital projects and equipment in Rochester,
Minnesota in 2019. In addition to our commitment to DMC, these investments include continued improvements
to our IT infrastructure and electronic health record, the purchase of world-class medical equipment, and more.
In total, Mayo Clinic will invest more than $1 billion in Rochester facilities and equipment between now and
2022. Through 2019, Mayo's DMC investment totals more than $590 million.
Our commitmen t and collaboration with the State of Minnesota, City of Rochester, Olmsted County, and other
stakeholders continues to strengthen'•our economy and affirms Minnesota's position as the world's premier
destination medical center.
Thank you.
Sincerely,
#5_/,/� Jeffrey W. Bolton
Chief Administrative Officer
Mayo Clinic
cc: Kevin McKinnon, Deputy Commissioner Economic Development,
Minnesota Depatiment of Employment and Economic Development
35
Approval Date Project/Req Number Project/Equipment Name
2013 - 2018
Expenditures
Reported
Prior Years
Expenditures
not previously
reported
2019
Expenditures
Total
Expeditures
reported for
2019
Total Spent as
of December
31st 2019
02/18/11 7R100580 Mary Brigh East Expansion 2,065,139.65 - 2,065,139.65
11/09/12 7R110910 Dermatology Remodel 9,123,648.24 - 9,123,648.24
11/09/12 7R121480 Sports Medicine Center 5,666,939.49 - 5,666,939.49
07/03/13 7R121370 2915 Warehouse Infrastructure 693,219.52 - 693,219.52
07/10/13 7R130470 Core 200 SMH Operating Room Renovation 1,411,411.46 - 1,411,411.46
07/10/13 7R100320 Anatomic Pathology Office Remodel 476,041.94 - 476,041.94
07/10/13 7R121490 Psychiatry and Psychology Master Plan, Phase 1A - Generose Main 1,213,985.91 - 1,213,985.91
07/11/13 7R120570 Development Remodel 2,679,274.32 - 2,679,274.32
08/01/13 7R130980/7R130981 Bed Tower Modernization MB east 44,116,778.02 1,479.72 1,479.72 44,118,257.74
08/01/13 7R130990/7R130991 Domitilla 3 Modernization 7,762,425.78 - 7,762,425.78
08/14/13 7R130650 Remodeling laboratory space on Guggenheim 5.265,065.75 - 265,065.75
08/29/13 7R130810 Saint Marys Hospital Chiller Addition 4,631,632.46 - 4,631,632.46
09/25/13 7R130180 Institute Hills Chiller Replacement 441,903.16 - 441,903.16
11/06/13 7R130820 Radiation Oncology Room "E" Linear Accelerator Replacement 188,793.94 - 188,793.94
12/11/13 7R110200 DLMP Phlebotomy Remodel 1,615,648.60 - 1,615,648.60
02/05/14 7R120870 Mary Brigh Electrical Upgrades (Phase 3)2,002,781.62 - 2,002,781.62
02/21/14 7R121420 SDSC Expansion Construction Only 21,491,384.97 9,605.17 9,605.17 21,500,990.14
02/26/14 7R121080 Creation of the consolidated freezer and BAP facility at the 2915 Warehouse 4,006,693.46 - 4,006,693.46
02/26/14 7R130690 Remodeling of multiple laboratories on Guggenheim 8 774,090.58 - 774,090.58
03/19/14 7R131440 Four Operating Rooms Off Core 700 3,082,756.73 - 3,082,756.73
04/23/14 7R131300 Remodeling within the Metabolomics Core on Alfred 5 616,212.48 - 616,212.48
2Q2014 R2007523 / 7R131300 Thermo TSQ Triple Quadrapole MS (assets 147506 & 145344)596,292.00 - 596,292.00
04/23/14 7R131420 Remodeling within Opus 1 to accommodate space for a new CT machine.480,162.90 - 480,162.90
04/30/14 7R131270 Employee and Community Health Southeast Clinic 4,326,200.60 - 4,326,200.60
04/30/14 7R120690 Cardiac Catheterization Procedure Room 103 Remodel - Saint Marys, Mary Brigh 4 412,584.91 - 412,584.91
06/04/14 7R140130 Gonda 5, 5th PET/CT Installation & Uptake 301,874.69 - 301,874.69
06/18/14 7R140540 Executive, Development and International Program Expansion - Mayo East 5 1,389,522.23 - 1,389,522.23
07/02/14 7R131400 DOM 3/4 Infrastructure Revisions for Remodeling 2,109,759.78 - 2,109,759.78
07/23/14 7R130760 Clinical Genome Sequencing, Lab Expansion 296,600.82 - 296,600.82
08/14/14 CPC2010723 / 7R130820 Varian Medical Systems (asset 145374)3,334,879.00 - 3,334,879.00
08/20/14 7R140480 CMCT and Prev. Med. Relocation Gonda 18 to Mayo East 17 358,383.16 - 358,383.16
03/04/15 7R140790 Cancer Center Station Eisenberg 4-3 892,147.20 - 892,147.20
03/18/15 7R140780 CT Simulator I Replacement Charlton S-259, S-261 191,170.81 - 191,170.81
11/13/14 CPC2010473/7R140780 CT Scanner - 5yr (Asset 162815)687,812.80 - 687,812.80
04/29/15 7R150070 Charlton 2 Incremental 3T Body Scanner 749,773.48 - 749,773.48
04/29/15 CPC2015146/7R150070 3T Siemens Skyra MRI (assest 166875, 167065-167082)1,637,261.00 - 1,637,261.00
05/13/15 7R150080 SMC, Mary Brigh Main NH, MR-MCR 1.5T Replacement Scanner 448,573.83 - 448,573.83
05/13/15 CPC2015438/7R150080 GE; 1.5T Optima MR450W (assest 165084, 165346-165359)1,130,292.00 - 1,130,292.00
05/13/15 7R150090 SMC, Mary Brigh Main NH, MR-MCR 1.5T Replacement Scanner 595,824.88 - 595,824.88
05/13/15 CPC2015436/7R150090 DISCOVERY MRI Mary Brigh (assets 169437,171643, 171651, 171661-171672 )1,513,704.55 - 1,513,704.55
07/22/15 7R130230 Renovation Mary Brigh Main, PACU - Phase 4 2,059,423.01 - 2,059,423.01
05/14/15 7R140390 SMH Mary Brigh East Corridor Relocation 4,871,106.59 47,525.48 47,525.48 4,918,632.07
02/25/15 7R140970 Dr. Lee Diamond Reactor Lab Remodel on Med Sci SL 226,408.57 - 226,408.57
7/23/2014 7R131280 MR-RO-CN-1-MR/PET installation 781,558.09 - 781,558.09
3rd qtr 2014 CPC2007008/7R131280 GE; DISCOVERY MR750 PET (Assets 149876, ,150145-150157, 150668-150670)3,698,538.02 - 3,698,538.02
8/20/2014 7R140140 CT Scanner Replacements (3L, 3Z & 4J) - somatom - CH 2 561,057.62 - 561,057.62
3rd qtr 2014 CPC2010196/7R140140 Somatom Force CT (Asset 157628)1,831,372.00 - 1,831,372.00
12/11/2014 7R140770 Linear Acc Replace Rm "C"185,937.00 - 185,937.00
08/14/14 CPC2010723/7R140770 VARATHON MEDICAL; TRUE BEAM (Asset 162800)2,895,908.00 - 2,895,908.00
08/14/14 CPC2010184/7R140770 SIEMENS; CT EDGE (Asset 163463)856,459.02 - 856,459.02
08/14/14 CPC2010189/7R140770 SIEMENS; SOMATOM DEFINITION (Asset 164325)862,578.20 - 862,578.20
10/9/2014 7R140160 Incremental MRI Body Scanner 603,049.87 - 603,049.87
08/14/14 CPC2010068/7R140160 SIEMENS; SKYRA 3TMRI (Asset 157191, 157322-157339)1,859,239.00 - 1,859,239.00
12/12/2013 7R121290 GO3 Build 2 CT Bays 656,293.35 - 656,293.35
11/13/14 CPC2010188/7R121290 SIEMENS; SOMATOM FORCE CT (Asset 149843)1,750,000.00 - 1,750,000.00
05/08/14 CPC2008778/7R120690 PHILIPS; XPER FD20 (Assets 147302, 147339, 147392)1,649,213.30 - 1,649,213.30
1/9/2015 7R140090 Neurology Renovation, Mayo 8 4,989,615.93 - 4,989,615.93
8/21/2014 7R140220 Mayo 8 - Lobby Remodel 1,137,290.91 - 1,137,290.91
4/28/2015 7R140700 Vascular OR Core 801 SMH 1,059,949.88 - 1,059,949.88
5/30/2014 7R140170 Rad Vascular Imaging Ste 90 144,461.29 - 144,461.29
5/8/2014 CPC2008468/7R140170 SIEMENS MEDICAL; ARTIS ZEE (Asset 146871,146872)985,408.00 - 985,408.00
2/4/2014 7R130050 CT MBM Incremental Interventional CT 1,268,114.01 - 1,268,114.01
8/1/2013 CPC2002220/7R130050 SIEMENS; DEFINITION EDGE CT (Asset 148622, 148623)1,315,697.00 - 1,315,697.00
10/15/2014 7R140150 CH N Neuro Scanner CN l-119C 561,796.54 - 561,796.54
8/14/2014 CPC2010082/7R140150 SIEMENS; PRISMA 3T MRI and Accessories (Asset 157677, 157935-157946)2,241,875.00 - 2,241,875.00
USPS Building Purchase (Asset 156757, 156758)2,185,017.25 - 2,185,017.25
12/11/14 Land for Ronald McDonald House (Asset 147588, 147589)1,000,203.16 - 1,000,203.16
8/14/2014 CPC2007616/7R140130 GE; DISCOVERY 710 PET Scanner (Asset 148389)2,103,046.58 - 2,103,046.58
2/17/2016 7R151530 Fixed Wing Building 533,262.51 - 533,262.51
5/25/2016 7R151390 Hematopathology Consolidation, Hilton Building 7th Floor 2,018,886.34 - 2,018,886.34
6/29/2016 7R150870 Vacate Ei 7-1/7-2 Dermatology Phototherapy Phototherapy Relocation 439,830.58 - 439,830.58
8/31/2016 7R160520 Relocation of Respiratory Care Unit 1,184,489.68 - 1,184,489.68
3/31/2016 7R151490 Linen Service Depot-3939 Building 1,882,309.32 - 1,882,309.32
6/30/2016 7R150740 Media On Demand Replacement Project 699,440.19 - 699,440.19
7/8/2016 7R151570 Temporal Bone Lab remodel (original $600K)126,259.12 - 126,259.12
4/27/2016 7R150760 Dr. Misra Laboratory, Gugg 6 314,232.69 - 314,232.69
6/8/2016 7R160650 Lab Remodel Gugg 17 and 18 507,816.33 - 507,816.33
9/14/2016 7R160340 Space assignment for Dr. Burns and Dr. Scarisbrick surgery – Guggenheim 6 372,474.03 - 372,474.03
9/28/2016 7R151450 Guggenheim 13 Space Remodel 286,997.78 - 286,997.78
6/30/2016 7R140810 Charlton Desk R Lobby Remodel 397,223.24 - 397,223.24
11/1/2015 7R151060, 7R15106E Jacobson Building Operating Rooms 23,555,492.80 13,027.31 13,027.31 23,568,520.11
2/17/2016 7R150100 Charlton 1 PET/CT (DRX- 1 Replacement) E-3006 132,948.22 - 132,948.22
2/11/2016 CPC2021826/7R150100 GE - Discovery PET/CT 710 (Asset 178322)1,500,726.20 - 1,500,726.20
May 2016 7R150010 Gastroenterology & Hepatology Renovation 4,259,346.50 2,998,532.75 2,998,532.75 7,257,879.25
9/29/2016 CPC2026475/7R150010 Stryker Sales Corporation - Alfred 6 Integration (Assets 180598-180603)1,126,322.95 - 1,126,322.95
9/29/2016 CPC2026506/7R150010 Philips Fluoroscopy (Assets 181122-181123)1,335,625.38 - 1,335,625.38
Aug 2016 7R160670 7T MRI Scanner 1,916,246.30 - 1,916,246.30
2/1/2014 7R140100 SMH Campus Radiology Consolidation 24,110,924.85 (732,175.93) (732,175.93) 23,378,748.92
11/1/2015 7R150830 Mary Brigh East Tower Additional Floors 17,320,446.83 - 17,320,446.83
11/1/2015 7R150670 & 7R150671 Eisenberg 7-1 and 7-2 6,312,270.07 - 6,312,270.07
12/1/2015 7R150970 Pre Post Expansion on Gonda 2 Gonda 2-467 266,028.69 - 266,028.69
11/19/2015 7R131510 Franklin Heating Station Chiller #4 Replacement 2,286,167.61 - 2,286,167.61
11/4/2015 7R141050 Mary Brigh 4, Room 106 Heart Rhythm Services Remodeling 538,995.91 - 538,995.91
5/5/2016 CPC2023942/7R141050 Siemens - Fluoroscopy 106 (Asset 172294)1,508,299.00 - 1,508,299.00
11/4/2015 7R141060 Mary Brigh 4, Room 111 Heart Rhythm for Equipment Replacement 217,834.13 - 217,834.13
8/11/2016 CPC2024041/7R141060 Siemens - Siemens fluoroscopy room 111 (Asset 179164)801,942.00 - 801,942.00
11/4/2015 7R150850 Charlton North MR-MCR NU 3T Replacement Scanner 354,930.50 - 354,930.50
CPC2019384/5/7R150850 MAGNETOM Prisma 3T (asset 173601)2,184,842.00 - 2,184,842.00
11/4/2015 7R150840 Charlton North MR-MCR NT 1.5 Replacement Scanner 587,509.18 - 587,509.18
CPC2019387/7R150840 SIEMENS; 1.5T OPEN 70CM (assets 169436,171642,171650,171652-171660)1,188,732.00 - 1,188,732.00
5/1/2015 7R141150 Research Biplane Angiography System Replacement 78,970.28 - 78,970.28
5/1/2015 R2017007/7R141150 SIEMENS; ARTIS ZEE BIPLANE (asset 165045-165046)1,158,442.00 - 1,158,442.00
41st Street Professional Complex 9,831,862.38 - 9,831,862.38
May-16
7R160100, 7R160101, 7R160102,
7R160103
Precision Medicine Initiative
8,095,074.96 293,973.37 293,973.37 8,389,048.33
2Q16 R2025131/7R160100 Motoman (Asset 184543)4,031,557.00 - 4,031,557.00
2Q16 R2025134/7R160100 Autogen (Assets 175437-175447)2,023,074.27 - 2,023,074.27
2Q16 R2025138/7R160100 Hamilton Star (Assets 171685, 172326)440,763.20 - 440,763.20
2Q16 R2025143/7R160100 Hamilton Bios Freezer (Asset 186447)5,127,252.84 - 5,127,252.84
2Q16 R2025249/7R160100 PerkinElmer Spectrophotometer (Asset 169459)39,920.00 - 39,920.00
3Q16 R2026730/7R160100 Hamilton Robotic Upgrades 45,951.00 - 45,951.00
3Q16 R2026898/7R160100 Hamilton Star (Asset 179090)235,653.10 - 235,653.10
4Q16 R2027700/7R160100 Hamilton Tube Handler - REQ# 2027700 34,358.20 - 34,358.20
1Q17 R2030177/7R160100 Hamilton Capper/Decapper Motoman Line (Asset 183593)77,010.00 - 77,010.00
Permitted Expenditures from July 1, 2013 to December 31, 2019
36
Approval Date Project/Req Number Project/Equipment Name
2013 - 2018
Expenditures
Reported
Prior Years
Expenditures
not previously
reported
2019
Expenditures
Total
Expeditures
reported for
2019
Total Spent as
of December
31st 2019
Permitted Expenditures from July 1, 2013 to December 31, 2019
2Q17 R2031170/7R160100 Hamilton Star EasyBlood Liquid Handler (Assets 181647-181649) 776,489.90 - 776,489.90
3Q16 R2026141/7R160100 Verso M2 - (Asset 179334)729,256.34 - 729,256.34
4Q16 R2027695/7R160100 Hamilton EasyBlood Units (Assets 176522-176524)721,818.90 - 721,818.90
1Q17 R2029764/7R160100 Hamilton Bios PMI #3 (PO 20028966)4,030,363.09 - 4,030,363.09
1Q18 R2035655/7R160100 Hamilton Freezer Bios HL20 (PO 20031301)2,509,226.94 - 2,509,226.94
11/1/2015 7R150570, 7R15057A-7R15057D Mary Brigh East Operating Rooms 727,108.67 - 727,108.67
8/11/2016 CPC2025789/7R15057B Siemens - Artis Zeeog Card. Thorax (Asset 180570)1,466,062.00 - 1,466,062.00
8/11/2016 CPC2026999/7R150570A GE - Discovery IGS 740 (Asset 179172)1,363,946.45 - 1,363,946.45
12/1/2015 7R151460 Gonda 14 Radiographic Room DR Conversion E15-3011 RAD-MCR-GO14-R 110,495.22 1,538.78 1,538.78 112,034.00
12/1/2015 7R151470 Gonda 14-158 Duo DR Replacement, E15-3014 RAD-MCR-GO14-158 154,034.23 - 154,034.23
12/1/2015 7R150980 West Pre/Post Remodel, Mary Brigh Main 2,022,954.79 - 2,022,954.79
8/19/2015 7R150650 Radiology - Charlton 1, VG6 Replacement E15-3003 138,704.91 - 138,704.91
8/19/2015 CPC2015772/7R150650 GE; DISCOVERY 670 PRO 948,408.45 - 948,408.45
9/21/2016 7R160970 Cardiovascular Diseases Patient Appointment Coordinator 200,409.53 - 200,409.53
12/21/2016 7R151630 Reproductive Endocrinology and Infertility Relocation 2,493,942.02 (115,307.79) (115,307.79) 2,378,634.23
12/21/2016 7R160540 Remodel Mary Brigh 6 to increase Medical ICU capacity 1,917,682.51 27,482.19 27,482.19 1,945,164.70
12/31/2016 7R151000 Mayo Building – Substation MA-E-5 Replacement 582,866.28 29,385.65 29,385.65 612,251.93
5/25/2016 7R151380 Pharmacokinetics Core Relocation 469,019.61 - 469,019.61
6/14/2017 7R151560 & 7R170130 Remodel Baldwin 1 for ISP / Baldwin 1 Entry Vestibule Replacement 3,677,863.92 508,301.33 508,301.33 4,186,165.25
3/15/2017 7R151400 Mycology/TB Expansion Hilton 8 2,628,967.20 618,737.98 618,737.98 3,247,705.18
3/15/2017 7R160790 CMIL/NIL Relocation and Expansion, Hilton 7 1,511,215.84 195.04 195.04 1,511,410.88
9/6/2017 7R151290 Human Cellular Therapy N2 Tank Storage Facility 491,016.90 - 491,016.90
9/6/2017 7R160160 Conversion of OR 609 from Hybrid OR to Coventional OR 496,613.67 - 496,613.67
9/6/2017 7R170260 Gonda 2 Decontamination Space Remodeling 285,315.21 596.78 596.78 285,911.99
9/30/2017 7R170730 Eisenberg AHU S-55 Replacement to Support REI Practice Relocation 666,074.58 137,783.65 137,783.65 803,858.23
2/2/2017 7R161520 41st Street.4,892,701.70 - 4,892,701.70
8/10/2016 7R160940 Guggenheim 15-02 integration of core facility and laboratory program\368,357.82 - 368,357.82
3/8/2017 7R160110 Aging Center Space Remodel, Guggenheim 7 551,139.89 - 551,139.89
6/22/2016 7R160750 Stabile 11 Lab construction - Revzin 314,372.07 - 314,372.07
12/7/2016 7R161510 Installation of Open MRI System, Opus 1 507,975.26 82,700.98 82,700.98 590,676.24
1/11/2017 7R170020 Lab renovation ST 11, CRM recruit, Dr. Quinn Peterson 121,165.35 - 121,165.35
10/5/2016 7R160980 Saint Marys Campus Complex Intervention Unit 2,198,828.39 38,785.15 38,785.15 2,237,613.54
1/4/2017 7R160290 & 7R160280 E16-3005 MR MCR-GO3 1.5 MR Scanner #1 1,275,996.14 420.24 420.24 1,276,416.38
11/10/2016 CPC2026320/7R160280 Siemens - MAGNETOM Aera (Asset 182886; 182863-182881)1,688,565.00 - 1,688,565.00
3/30/2017 7R161300 RMC S-8 AHU Replacement 598,684.56 596.80 596.80 599,281.36
12/7/2016 7R140380 SMOP/Radiology Desk 3,197,500.73 374,140.41 374,140.41 3,571,641.14
5/25/2016 7R151430 Mary Brigh Main SMC Radiology Hybrid Procedural Suite - MR Suite 1,710,562.47 159,963.91 159,963.91 1,870,526.38
5/5/2016 CPC2023488/7R151430 Philips - Ingenia 1.5T Omega HP R5 Q1 (Asset 183632; 183885-183897)1,474,847.09 - 1,474,847.09
10/1/2018 7R110520 SMH Bulk Medical Gas Systems Replacement 145,986.28 831,338.45 831,338.45 977,324.73
10/1/2018 7R140180 Mary Brigh Main WestEntrance Upgrades 76,388.82 843,662.78 843,662.78 920,051.60
7/24/2018 7R140240 Neurology EEG/Epilepsy Remodel - DO 2 & JO 2 168,016.79 981,495.49 981,495.49 1,149,512.28
6/13/2018 7R150600
Original project budget approval on 12/9/15: Gugg 13 Remodel - consolidates activities within
BMB and provide additional flex space 6/13/18 - approved additional $25,000 funding 484,303.51 - 484,303.51
11/28/2018 7R151140
Plummer Library Renovations Phase 3&4 109,777.06 323,328.15 323,328.15 433,105.21
8/27/2018 7R151420 E17-3007 DE-MCR-CT-MBM-I-MP Hybrid Suite Phase 2 222,814.83 1,403,177.95 1,403,177.95 1,625,992.78
5/3/2018 7R151420/CPC2036523
Philips Healthcare (Asset 196890)- 423,890.40 423,890.40 423,890.40
2/22/2018 7R160610 Office of Information Security Consolidation 673,227.06 443,774.93 443,774.93 1,117,001.99
6/30/2018 7R160730
Brackenridge Education Room Build out 505,522.17 20,529.59 20,529.59 526,051.76
11/6/2018 7R161270 USP 800 Haszardous Drug Handling Remode 499,899.97 446,749.60 446,749.60 946,649.57
7/1/2018 7R161450 SMC Chilled Water Distribution Loop 111,297.18 821,965.88 821,965.88 933,263.06
10/1/2018 7R161501 Joseph Bldg Scope A Centralized Infrastructure 834,338.49 2,326,360.10 2,326,360.10 3,160,698.59
3/1/2018 7R170050
RMC S-5 Air Handling Unit Replacemen 205,284.23 738,382.66 738,382.66 943,666.89
3/14/2018 7R170110 Tissue Typing Lab Pre-DNA Extraction Contamination Contro 346,947.17 6,832.57 6,832.57 353,779.74
5/24/2017 7R170450
Retrofitting Med Sci 5 large animal facility; DCM Phase 117,887.01 519,427.96 519,427.96 637,314.97
2/22/2018 7R170480 Consolidation/Relocation of Revenue Cycle 1,410,983.35 718,449.00 718,449.00 2,129,432.35
6/13/2018 7R170500
Gonda 15 Conversation of Family Waiting Room to Pre/Post Space 86,031.55 501,053.17 501,053.17 587,084.72
6/27/2018 7R170800 GU 5-Chakraborty lab construction, remodel west bay of GU 5 (including Bram lab 31,554.24 791,876.72 791,876.72 823,430.96
3/14/2018 7R170900
SMC OR 604,608, and 600 Decontamination Room Remodel, MB 1 1,065,165.59 52,999.08 52,999.08 1,118,164.67
3/14/2018 7R180140 E-18-3009 NM-MCR-CH1-R-PET/CT DRX2 95,726.10 63,846.69 63,846.69 159,572.79
6/13/2018 7R180150
SC18-3002 RAD-MCR-MAE4-I-Thoracic Reading Rooms 53,600.24 199,993.49 199,993.49 253,593.73
7/1/2018 7R180440 Medical Sciences 3 (Dr. A. Pandey and Proteomics Core)205,876.63 - - 205,876.63
10/1/2018 R2050798 / 7R180440
Pandey Biosafety Hoods--REQ#--R2050798 (PO 20033617) (Assets 190234-190235)- 13,362.24 13,362.24 13,362.24
10/1/2018 R2050806 / 7R180440 Pandey BIOGNOSYS License--REQ#--R2050806 (PO 20033762) (Asset 192318)- 12,000.00 12,000.00 12,000.00
10/1/2018 R2050567 / 7R180440
Pandey Fusion Lumos_2018--REQ#--R2050567 (PO 20033606) (Assets 190958-190960,
192300)- 1,308,079.83 1,308,079.83 1,308,079.83
10/1/2018 R2049967 / 7R180440
Pandey Lab Fisher Capital 1--REQ#--R2049967 (PO 20033266) (Assets
189861,190212,190906,193852)5,112.60 2,518.50 49,578.29 52,096.79 57,209.39
10/1/2018 R2050783 / 7R180440
Pandey VWR shaker--REQ#--R2050783 (PO 20033611) (Asset 190242)- 6,893.59 6,893.59 6,893.59
10/1/2018 R2050789 / 7R180440 Pandey Nikon scope--REQ#--R2050789 (PO 20033602) (Asset 190249)- 18,799.83 18,799.83 18,799.83
2/1/2018 8R170470
Centralized Distribution of Utilities 41st Stree 3,319,851.36 1,630,185.11 1,630,185.11 4,950,036.47
12/31/2016 7R151620 Hilton Substation Replacement 1,658,195.91 654,960.91 654,960.91 2,313,156.82
11/15/2017 7R170850
E17-3006 CT-MCR-GO3-R-3V Scanner 59,816.30 72.75 72.75 59,889.05
11/15/2017 CPC2030830/7R170850 Siemens Somation Force (Asset 185457)1,930,400.00 - 1,930,400.00
3/15/2017 7R140260
Psychiatry & Psychology Master Plan Phase I 1,478,395.01 3,926.50 3,926.50 1,482,321.51
3/16/2017 7R160140 Upgrade of Medium Voltage Switch Center 676,228.05 352,480.64 352,480.64 1,028,708.69
6/14/2017 7R160370
Mary Brigh Kitchen Replacement East Tower Ground Level 1,646,009.58 309.64 309.64 1,646,319.22
3/15/2017 7R160390 E16-3010 MCR-DT-I-Incremental Downtown CT Scanner #1 1,372,715.08 353,446.64 353,446.64 1,726,161.72
3/15/2017 CPC160390/7R160390
Siemens; Somatom Force CT (Asset 188881)2,084,921.00 - 2,084,921.00
6/14/2017 7R160430 E16-3009 RAD-MCR-GO14 Radiographic Room DR Conversion 297,421.83 10,415.79 10,415.79 307,837.62
6/14/2017 7R160640
Paitent Lifts for Mary Brigh PCU 5C & 5F 829,680.46 - 829,680.46
9/6/2017 7R160910 Mary Brigh Shell Space Fit-Up (NICU & PICU 260,515.54 143,460.34 143,460.34 403,975.88
3/15/2017 7R160950
Antibody/Protein Immunology & Cinical Immunoassay Lab Relocatio 3,528,670.37 103,099.16 103,099.16 3,631,769.53
11/15/2017 7R161180 Saint Marys Dialysis Uni 208,166.23 3,018,722.91 3,018,722.91 3,226,889.14
11/15/2017 7R161200 E17-3005 MR-MCR-MBM-R-MR29 Replacement 774,913.64 5,262.00 5,262.00 780,175.64
11/15/2017 CPC2032958/7R161200 GE; Signa Artist 1.5T (Assets 188037-188049)990,208.00 - 990,208.00
11/15/2017 7R161280
Enhanced Critical Care Expansion 171,586.57 - 171,586.57
10/26/2016 7R161350 Relocation of Dr. Rajiv Kumar’s Laboratory to GU 6, Drs. J. Grande and V. Lowe, and C-SiG 259,076.46 21,572.74 21,572.74 280,649.20
11/8/2017 7R170040 Gonda 19 space remodel 266,907.72 153.30 153.30 267,061.02
12/31/2017 7R170080 SMC Mary Brigh Surgical Services AHU Replacemen 1,315,937.43 729,914.32 729,914.32 2,045,851.75
1Q17 7R160310,7R16031E Mary Brigh 3rd Floor OR Rooms Fit Out 6,475,711.52 17,769,124.54 17,769,124.54 24,244,836.06
2Q17
7R161540,7R170920,7R170922-
7R170924, 7R17092E Discovery Square 576,743.77 8,762,609.49 8,762,609.49 9,339,353.26
1Q17
7R161010,7R161020,7R161030,
7R161031,7R161040-7R161042,
7R161050,7R161060,7R161070,
7R161080,7R161090,7R161100,
7R161110,7R161120-7R161123,
7R161130,8R160740 SMC Modernization and Growth 52,749,479.02 48,154,168.16 48,154,168.16 100,903,647.18
5/8/2019 7R160701 Sports Medicine Relocaton to DAHLC 4 - 12,422.36 1,039,280.71 1,051,703.07 1,051,703.07
2/1/2019 7R170210
Mail Order Pharmacy Relocation - 7,283,739.44 7,283,739.44 7,283,739.44
4Q2019
CPC2034616, CPC2049576,
CPC2049796, CPC2049797 /
7R170210 Pharmacy Automation - Innovation (Asset 195397)- 2,722,535.76 2,722,535.76 2,722,535.76
2/14/2019 7R170400
Archives Warehouse Tissue Registry Expansion - 174,851.94 1,229,881.10 1,404,733.04 1,404,733.04
1/16/2019 7R170540 Redesign of Jacobson Locker Room - 185,157.86 185,157.86 185,157.86
10/24/2018 7R170820 Remodel of GIH Research Space GU 17, Phase 1 - 4,110.19 546,495.00 550,605.19 550,605.19
5/30/2019 7R180100 SMH River Room - 44,745.68 44,745.68 44,745.68
10/2/2019 7R180120 RST E18-3008 MR-MCR-GO3-I-3T MR Scanner - 2,018.28 322,363.97 324,382.25 324,382.25
3/2/2018 R2036200 / 7R180140 Discovery MI 25CM (Asset 189900)- 2,697,744.00 2,697,744.00 2,697,744.00
9/19/2018 7R180160
Radiology Office Space and 3D Lab on Joseph 6 - 92,403.24 319,272.82 411,676.06 411,676.06
7/27/2018 7R180200 SMC Decontamination Remodel Equipment and Replacemen - 32,494.36 873,455.51 905,949.87 905,949.87
6/26/2019 7R180240 RST Impact Lab Expansion CAR-T Cell Initiative - 15,760.00 893,621.66 909,381.66 909,381.66
37
Approval Date Project/Req Number Project/Equipment Name
2013 - 2018
Expenditures
Reported
Prior Years
Expenditures
not previously
reported
2019
Expenditures
Total
Expeditures
reported for
2019
Total Spent as
of December
31st 2019
Permitted Expenditures from July 1, 2013 to December 31, 2019
11/13/2019 7R180310 0068-18 E18-3021-RAD-MCR-MSH-MMB-R-RAD DR Conversion - 38,849.28 38,849.28 38,849.28
8/15/2018 7R180360 Eisenberg Dumbwaiter Replaceme - 165,045.28 165,045.28 165,045.28
9/30/2019 7R180450
Administrative Drop In Center - 3,477.50 231,635.14 235,112.64 235,112.64
10/9/2019 7R180480 Dr. Pipe Lab-DiscSq1 - 1,223.75 42,600.84 43,824.59 43,824.59
10/18/2018 7R180610 Mayo Clinic Food Service, RMC - 133,400.18 133,400.18 133,400.18
12/10/2018 7R180690 3D Metal Printer for Div of Engineering - 581,851.43 581,851.43 581,851.43
2/14/2019 7R180750 41st Street Complex Employee Cafeteria - 33,345.73 1,202,685.18 1,236,030.91 1,236,030.91
3/13/2019 7R180860 RST SMC/RMC Visitior Cafeteria - 253,248.34 253,248.34 253,248.34
3Q2019 7R180900
RMC Eisenberg AHU-S62 Replacement - 7,367.21 7,367.21 7,367.21
4/11/2019 7R181000 REO Makeup and Export Water Tank - 706,686.51 706,686.51 706,686.51
4/11/2019 ROBB18C0010
Global Business Solutions Consolidation - 90,679.48 90,679.48 90,679.48
2Q2019 ROFF19C0010 41st St Complex Infrastructure Upgrades- Phase 3 - 38,101.42 38,101.42 38,101.42
3Q2019 ROJO18C0020
Joseph 1 Northwest Local Infrastructure-SMC River Room Expansion - 1,300.03 1,300.03 1,300.03
8/28/2019 ROJO19C0010 0050-19 RST Creation of New MED 13 Hospital Service - 168,688.29 168,688.29 168,688.29
2/14/2019 ROMA18C0020
Mayo 11 Remodel - 5,980,106.47 5,980,106.47 5,980,106.47
6/26/2019 ROMB19C0030 RST SMC Sterile Processing Renovations - 22,776.04 22,776.04 22,776.04
6/26/2019 ROOP19C0010
Opus MRI instal - 2,217.66 2,217.66 2,217.66
6/13/2019 ROXX18C0020 Healthcare Technology Management Expansion at 1937 Buildin - 27,363.46 27,363.46 27,363.46
10/2/2019 ROXX19E0180
RST Practice Optimization Acceleration - 11,983.10 11,983.10 11,983.10
CPC2033104 / 7R151420 PHILIPS; AZURION 7 M20 (Asset 192750)- 1,259,678.14 1,259,678.14 1,259,678.14
9/27/2017 7R160230 Research PET/CT Charlton 6 - 2,199,122.72 92,302.97 2,291,425.69 2,291,425.69
R2050020 / 7R160230 Biograph Vision 600 (asset 192309)- -2,015,000.00 2,015,000.00 2,015,000.00
6/28/2018 7R170290 Human Cellular Therapy Expansion - 52,992.00 176,696.13 229,688.13 229,688.13
12/6/2018 7R180260 Revenue cycle consolidation / relocation 49,448.57 3,892,509.97 3,941,958.54 3,941,958.54
8/12/2019 ROSI19C0010-ROSI19C0016 Subway Refresh Project - - 1,069,883.24 1,069,883.24 1,069,883.24
452,015,853.42 2,676,189.14 136,449,971.65 139,126,160.79 591,142,014.21
-
38
39
40
ATTACHMENT 4
41
42
43
44
EXHIBIT B
To February 15, 2021 Report
45
June 9, 2020
R.T. Rybak, Chair
Destination Medical Center Corporation
The Minneapolis Foundation
800 IDS Center
80 S 8th Street
Minneapolis, MN 55402
Jeff Bolton, Chief Administrative Officer
Mayo Clinic
200 First Street SW
Rochester, MN 55905
Dear Mr. Rybak and Mr. Bolton:
Thank you for submitting the 2019 Certification of Expenditures for Destination Medical Center (DMC).
We are excited to assist with this initiative to make the Mayo Clinic, Rochester, and Minnesota a premier
medical destination.
Your certification listed $139,126,161 in Mayo Clinic expenditures and $133,004,081 in other
expenditures. The Mayo Clinic provided DEED with information on all invoices and payments (more than
16,000 entries) to account for their certification amount. You also provided an independent third party
report from Ernst & Young LLP stating the law and procedures for certifying expenditures are being
followed properly. Additionally, DEED staff reviewed invoices and payments in your certification. We
selected 66 expenditures totaling $8,777,922. We selected one expenditure from each of the 40 new
projects listed. We also selected 26 random entries from previously reviewed projects. All invoices for
the selected expenditures were on file and payments were made in a timely fashion. DEED staff also
confirmed that projects had building permits after June 30, 2013. DEED acknowledges the expenses and
payments met guidelines and the internal accounting and auditing system the Mayo Clinic has in place is
sufficient.
Additionally, the DMCC and the City of Rochester provided DEED with a list of 30 completed projects for
$15,662,402 in expenditures. DEED randomly selected 10 permits and was provided the permit
application, permit, project closeout, and map of projects. From this information, DEED confirmed the
projects’ values, dates, eligibility, and completion. The city also approved $117,543,023 in expenditures
on eight projects that are completed over multiple years. The total 2019 Certification of Expenditures
was $133,004,081. DMCC contracted with Clifton Larson Allen (CLA) to complete a review on its
Certification to insure it is correct. CLA issued an opinion that the amount of the DMCC certification
process was correct.
As required by law, I have determined that the amount of 2019 Destination Medical Center
Expenditures are the $272,130,241.44 as you certified. DMC cumulative Expenditures are now
EXHIBIT B
46
$962,794,654.81. As directed by statute, $200 million is subtracted from this amount to provide
Qualified Expenditures of $762,794,654.81. Based on this figure and adequate general aid contributions
from the city, I have determined the City of Rochester has qualified for $20,976,853 of General State
Infrastructure Aid in 2018. As per state statute, this payment will be made prior to September 1.
Thank you again for your efforts on this groundbreaking economic development effort.
Regards,
Kevin McKinnon Deputy
Commissioner
C: Lisa Clarke, Economic Development Agency Executive Director
Brent Svenby, City of Rochester
47
June 9, 2020
The Honorable Kim Norton
Mayor, City of Rochester
201 4th Street SE – Room 281
Rochester, MN 55904-3708
Dear Mayor Norton:
Thank you for submitting the 2019 Certification of Contributions for Destination Medical Center (DMC).
We are excited to assist with this initiative to make the Mayo Clinic, Rochester, and Minnesota a premier
medical destination.
Your revised 2019 Certification listed $4,311,026.95 in city contributions between July 1, 2013 and
December 31, 2019. You provided a detailed listing of more than 1,500 expenditures. These
expenditures consisted of direct DMC expenses paid by the city as well as DMC Corporation and DMC
Economic Development Authority expenses paid for by the city. From that list, DEED randomly selected
78 expenses for review. We reviewed invoices, payments and city payroll files for accuracy and
eligibility.
Additionally, the city provided DEED with an independent third party report from Clifton Larson Allen
stating the law and procedures for certifying contributions are being followed properly.
The amount of your contributions qualifies you for the annual maximum of $30 million of general aid,
however Qualified Expenditures from Mayo Clinic and others were $762,794,654.81. This amount of
Expenditures reduces the amount of general aid to the city to $20,976,853. Your excess Contributions
will be credited towards future years. We will be providing prior to September 1 as mandated by
statute.
Thank you again for your efforts on this groundbreaking economic development effort.
Regards,
Kevin McKinnon
Deputy Commissioner
C: R.T. Rybak, Chair of Destination Medical Center Corporation
Jeff Bolton, Chief Administrative Officer Mayo Clinic and Chair of Economic Development Agency
Board of Directors
Lisa Clarke, Economic Development Agency Executive Director
48
EXHIBIT C
To February 15, 2021 Report
49
Oa�
02/01/2018
08/01/2018
02/01/2019
08/01/2019
02101/2020
08/01/2020
02/01/2021
0810112021
02/01/2022
08/01/2022
02/01/2023
08/01/2023
02/01/2024
08101/2024
02/01/2025
08/01/2025
02101/2026
08/01/2026
02/01/2.027
08/01/2027
02/01/2028
08/01/2.028
02/01/2029
08/01/2029
02/01/2030
08/01/2030
02/01/2031
08/01/2031
02/01/2032
08/01/2032
02/01/2033
08/01/2033
02/01/2034
08/01/2034
02101/2035
08/01/2035
02/0112036
08/0112036
02/01/2037
08/01/2037
02/01/2038
Total
SIGNIFICANT DATES
EXHIBIT C
$21,265,000
Rochester, Minnesota
General Obligation Tax Increment Revenue Bonds, Series 2017B
(Parking Ramp Project)
DEBT SERVICE SCHEDULE
Principal Coupon Interest . .
540,639.84
550.000.00 5.000% 381.628.13 . -367,878.13
735.000.00 5.000% 367,878.13 -. 349.503.13
775.000.00 5.000% 349,503.13 -330.128.13
815,000.00 5.000% 330.128.13 . . 309.753.13
855,000.00 5.000% 309.753.13 . . 288.378.13
895,00MO 5.000% 288.378.13 -266,003.13
940,000.00 5.000% 266,003.13 . 242,503.13
990.000.00 5;000% 242,503.13 -217,753.13
1 ;035,000.00 5.000% 217.753.13 . 191,878.13
1 .090.000.00 2.000% 191.878.13 . . 180,978.13
1,110,000.00 2.250% 180.978.13 . 168,490.63
1,135.000.00 3.000% 168,490.63 . . 151,465.63
1.170,000.00 2.750% 151,465.63 . 135.378.13
1,200,000.00 2.750% 135.378.13 . 118.878.13
1,235.000.00 2.875% 118.878.13 -. 101.125.00
1.210.000,00 2.875% 101,125.00 . . 82.868.75
1.305.000.00 3.000% 82.868.75 . . 63.293.75
1.345.000.00 3.000% 63.293.75 . 43.118.75
1,385.000.00 3.000% 43.118.75 . . 22.343.75
1,430.000.00 3.125% 22.343.75
$21,265,000.00 . $8,185,705.47
Dated Date ............................................................................................................................................................................ .
Delivery Date ........................................................................................................................................................................ ..
First.Coupon � ............................................................................................................................................... ·..... . ....... .
Yield· Statistics
Bond reat Dollars ................................................................................................................................................................. .
Average Life ....................................................................................................................... .' ...... · ....................................... ..
Average Coupon ..................................................... · ............................................................................................................... .
Net Interest Cost (NIC) ......................................................................................................................................................... .
True Interest Cost (TIC) ........................................................................................................................................................ .
Bond Yield for Arbitrage Purposes ..................................................................................................................................... ..
All Inclusive Cost (AIC) ........................................................................................................................................................ .
IRS Form 8038
Net Interest Cost ................................................................................................................................................................. .
Weighted Average Maturity ......................................................................................................................... , ........................ .
:R:rll!'$.Zt)/711G0'11Fl".vb' I $1NCIZl"tl!UOSS I 1071&/ZOJ'? / fZ.""'2,/'M
Footnotes:
1)Scheduled payments through 2019 have been completed.
Post-sale
TotalP-+i
540,639.84
931.628.13
367,878.13
1,102,878.13
349.503.13
1. 124,503.13
330,128.13
1.145.128.13
309,753.13
1.164,753.13
288.378.13
1.183.378.13
266.003.13
1,206.003.13
242.503.13
1.232,503.13
217,753.13
1.252,753.13
191.878.13
1,281,878.13
180.978.13
1.290.978.13
168,490.63
1.303,490.63
151,465.63
1,321.465.63
135.378.13
1,335,378.13
118,878.13
1.353.878.13
101.125.00
1,371,125.00
82.868.75
1.387,868.75
63.293.75
1,408.293.75
43.118.75
1.428.118.75
22,343.75
1.452.343.75
$29,450.705.47
11/16/2017
11/16/2017
8/01/2018
$254.39021
11.963 Years
3.2177754%
2.7176241%
2.6417803%
2.6130470%
2.6889724%
2.6154299%
1 ·1.612 Years
2)Of the $21,265,000 issued for the parking ramp construction through this Series 2017B, $10
million has been approved by the DMCC board as "local match" dollars.
1), 2) below
50
DMC Metrics: WMBE Goals
To: DMC Corporation Board of Directors
From: DMC Economic Development Agency
Date: January 28, 2021
Request of the DMC Corp. board of directors:
No request of the board.
Background:
In 2020, the DMCC Board and Rochester City Council adopted new workforce participation and targeted business goals
effective in 2021.
The table below outlines the previous goals, those recommended by the state of MN, and new, approved goals based on
the experience to date of DMC projects. Workforce strategies are being implemented to support the pursuit of these
goals and leverage partnerships and collaboration with local, regional and state-wide agencies to realize these
outcomes.
Targeted Workforce and
Business Categories
2015
Goal
Performance
(2017-2020)
MN Human
Rights Target
for SE MN
Goal for
2021
Goal for
2022
Goal for
2023
Women Construction
Participation 6% 3.6% 9% 7% 8% 9%
Women Professional Services
Participation 6% 32.8% 9% 7% 8% 9%
Minority Construction
Participation 4% 15.2% 15% 15% 15% 15%
Minority Professional
Services Participation 4% 6.5% 15% 15% 15% 15%
Targeted Business:
Construction 4% 7.2% - 7% 7% 7%
Targeted Business:
Professional Services 4% 5.1% - 7% 7% 7%
Targeted Business: Heavy
Construction Projects 4% - - 4% 4% 4%
Fulfilling the DMC Vision, Mission, and/or Goals:
Create approximately 30,000+ new jobs over the 20-year initiative, with workforce development strategies that support
that growth.
Develop strategies to attract new businesses to the market, including small business enterprise (SBE), minority business
enterprise (MBE) and women business enterprise (WBE) participation.
The DMC Development Plan and 2021 DMC EDA work plan support the focus and delivery of programs to support
women and minority owned workforce and targeted business enterprise targets. Summer 2020
City Council
Approved
Approved Goals
51
CONSTRUCTION
Targeted Business (TB) Contracts
Goal: 4% (7% on future contracts)
Average TB Result*: 7.6%
Workforce Participation
Goals
Women: 6% Average Result*: 3.4%
Minorities: 15% Average Result*: 15.8%
1st Street NW Sewer Diversion Project
Workforce Participation Results
Total Hours: 8,192
Women: 547 hours, 6.7%
Minorities: 539 hours, 6.6%
Rochester Residents: 3,428 hours, 41.8%
Of the 547 hours worked by women on this
project, 543 hours
were trucking hours.
Marcie with Elcor
worked 532 hours
driving trucks for
this project. She has been with Elcor since 2013.
Melissa Beach, owner of Missy’s Trucking, LLC
worked 11 hours on
this project.
Missy’s Trucking also hauled for Heart of
the City project this year and numerous other
City of Rochester projects in past years.
Hauling activities are subject to the state
prevailing wage law
The hauling of any or all stockpiled or excavated materials on the project
work site to other locations on the same project even if the truck leaves the
work site at some point. Business entity that is considered a commercial
establishment that delivers or hires trucks to deliver its materials or products
from an off-site facility to the project site of work is exempt.
http://www.dot.state.mn.us/const/labor/trucking.html
* Results are cumulative April 2017 –October 2020.
TARGETED BUSINESS AND WORKFORCE PARTICIPATION MONTHLY REPORT
December 2020
INCLUSIVE WORKFORCE
PARTICIPATION PLANNING
ONLINE WORKSHOP FOR
ALL-SIZED COMPANIES
The City of Rochester and
Destination Medical Center are
partnering with Winona State
University Adult & Continuing
Education to offer Inclusive
Workforce Practices: Why You
Need a Workforce Participation
Plan online workshop on January 20,
2021, from 2-3 p.m. This workshop is
for CEOs, presidents, vice presidents,
managers, recruiters, DEI / EEO / AA
officers, and other human resource
generalists and specialists across
multiple sectors who want to learn
how to make workforce diversity
support organizational success.
Register for this engaging
workshop via Eventbrite.
FREE VIRTUAL WORKSHOPS FOR
WOMEN AND MINORITY-OWNED
COMPANIES TO GET CERTIFIED
AND WIN BIDS ON CITY OF
ROCHESTER, OLMSTED COUNTY
AND MINNESOTA PROJECTS
Certification Application
workshop on Thursday, February 4,
2021 from 9 a.m.–12 p.m. The
workshop will be offered virtually and
in-person. Computers will be provided
for the in-person workshop with social
distancing and masks required.
Bidding and Bonding workshop
will be offered virtually on Thursday,
March 4, 2021 from 9 a.m.–12 p.m.
Experts on bidding government
contracts and construction bonding
will present.
Pre-register via email to
orlanda.klinkhammer@state.mn.us.
PROFESSIONAL SERVICES & CONSTRUCTION ADMINISTRATION
Targeted Business (TB) Contracts
Goal: 4% (7% on future contracts)
Average TB Result: 5.2%
Workforce Participation
Goals
Women: 6% Average Result*: 34.9%
Minorities: 15% Average Result*: 8.3%
*Results are cumulative April 2017 – November 2020.
Closed Projects
-Alatus Housing – 2nd Street
-Chateau Theatre
-Hotel Indigo
-One Discovery Square
-Urban on 1st
-Wells Fargo Building
-J2582 Parking Ramp #6
-J7326 4th St SW
-J7319 6th & 7th Avenue
-M16-21 Sewer Siphon
-J8903 City Loop Bike Lane
-J7830 1st Street NW Sewer
Active Projects
-Civic on First/Hyatt House
-Discovery Square Phase 2
-Heart of the City
Future Projects
-Discovery Walk
Closed Projects
-SRF PMC Agreement
-Integrated Transit Studies (4)
-SRF Const. Admin
-Transit Oriented Development
Active Projects
-J8707 SRF A&E Rapid
Transit
Photo was taken socially distanced.
5
Heart of the City
To: DMC Corporation Board of Directors
From: DMC Economic Development Agency
Date: January 28, 2021
Request of the DMCC board of directors:
• No Action Requested
Background:
Peace Plaza Construction
Heart of the City Phase One project includes restoration of its public space, known as Peace Plaza, the adjacent street,
sidewalks and alley way. It is a transformative common ground project that includes improved safety, accessibility,
universal design elements, sustainability, integrated art, and improved infrastructure to enhance the overall user
experience.
Work started on the Heart of the City Phase One Construction on April 6, 2020.
Business Forward Strategy
DMC EDA, City of Rochester, and other partners have been working with Heart of the City property owners, business
operators, and community stakeholders to design a construction process intended to minimize negative impact on
nearby businesses through improved construction communications, scheduling, and pace.
Business Forward principles include:
• Access, Safety and Smart Micro -Construction Phasing
• Communication
• Activation and Programming (focusing on pedestrian foot traffic and
supporting local businesses)
These principles are being applied in ways that are mindful of the social-
distancing and other safety precautions necessary to avoid COVID-19
transmission.
Since the start of the construction, the team has continually evaluated
ways to accelerate the schedule and support the business forward
mentality. Recent business forward strategies include:
1. Continued micro-phasing to support the business forward initiative
which has been accelerated to finish areas of the project this year
that were originally planned to be completed next year.
a. Fast-tracked construction projects (replacing sidewalk in a
week, working weekends and overtime shifts)
b. Continued construction projects in colder weather
(sidewalks, paving)
2. Added lighting for safety and interest (adding colored lighting at night to walkways in the construction site to
draw interest to the businesses in and around the construction)
3. Enhanced way-finding has been implemented and updated throughout the project to help pedestrians navigate
retail, dining and entertainment options.
Temporary walkways to encourage
pedestrian traffic.
53
Schedule:
Project Component Original Schedule New Schedule
• Second Street Completion 09/28/2020 08/25/2020 (COMPLETE)
• First Avenue South 07/28/2021 07/01/2021
• First Avenue North Sidewalk 08/20/2021 06/01/2021
• First Avenue North Street 08/20/2021 07/15/2021
• Peace Plaza 08/13/2021 **08/13/21
**Potential Timeline Issues
There are three potential issues that could impact the timeline of the Heart of the City project:
1. Weather – with favorable winter weather and aggressive construction planning the dates noted above are
achievable. A deep freeze or other winter weather challenges could impact when the team can begin major
construction again in the spring. Extra measures were taken (such as blanketing) so the construction team can
start as soon as possible.
2. Design Evolution – the Heart of the City team continues to work closely with Ann Hamilton regarding her art
installation. Over the past months there has been a collaborative effort to rework the artwork. This may impact
the phasing of the construction of the Peace Plaza and additional resources may be needed.
3. Custom Fabrication – portions of Rafael Lozano-Hemmer’s art (interactive centenary light system) include
customized poles and lighting infrastructure. Due to the impact of Covid-19, there are some delays in
manufacturing these elements. The Heart of the City team is evaluating overall schedule and phasing to
minimize disruption in the timeline.
a. 08/13/21 Peace Plaza completion date assuming that catenary lights are installed after the completion
of the plaza (trees and pavers)
b. 11/01/21 Peace Plaza completion date assuming catenary lights are installed first, delaying tree and
paver installation
Chateau Theatre
The Chateau Theatre is under the management of a St. Paul-based company, Exhibits Development Group (EDG). They
continue to temporarily postpone public access and programming with a goal of reopening in the Summer of 2021, in
line with the completion of Peace Plaza. Scheduled reopening is dependent on public health milestones associated with
COVID-19. During this downtime, EDG will work with the community to develop new programming initiatives, assess
and recommend building modifications, and develop future marketing strategies.
Enhanced evening lighting for pedestrian safety and creating an inviting environment.
54
Galleria/University Square
The 2015 DMC Development plan envisioned a connection between Mayo Civic Center (MCC) and Gonda, via 1st Street
SE, Galleria, and Peace Plaza. At the end of Q4 2020, discussions took place to begin to re-imagine how this vision could
come together with land stakeholders in this area. This discussion has been put on hold as the stakeholders are
reevaluating future use of this area.
Fulfilling the DMC Vision, Mission, and/or Goals:
Heart of the City subdistrict is a long-standing priority for the DMC Corp. board. It is home to many hotels, restaurants,
entertainment venues, and medical facilities, many of which have been undergoing reinvestment. Transformation of the
public realm, Peace Plaza, will be an asset to the downtown core, improve the patient, visitor and resident experience,
and help spur future investment. This will be particularly important as we embark on a Retail, Dining, and Entertainment
marketing and recruitment strategy.
Work plan or capital improvement budget implications:
This project is funded via state GSIA funds generated through the DMC initiative, approved by both DMCC and Rochester
City Council.
Approvals, milestones, and decision points:
2016
Heart of City
redesign
commenced
2018
Schematic
design
approved, CIP
authorized
2019
Construction
documents
completed
and bidding
initiated
2020
Contracts
awarded.
Request for
additional
spending.
2021
Anticipated
completion
55
Discovery Square
To: DMC Corporation Board of Directors
From: DMC Economic Development Agency
Date: January 28, 2021
Request of the DMCC board of directors:
No requests.
Background:
• Economic Development Activities
o Continue business development and recruitment activities to pitch Discovery Square as the
best place in Minnesota for companies that want to grow.
• Discovery Walk
o Project at 100% completion of
Design Documentation for base
plan and Add Alts.
o The three artist projects are
being developed and
incorporated into the design,
with input from the Co-
Designers.
o Project timeline is still TBD due
to the complexity of
underground utilities and the
desire of multiple utility
providers to take advantage of this project to make necessary upgrades.
o Locations and designs for five weather shelter largely finalized, total estimated cost $960K.
o Original budget estimate (Q1 2018) did not include
snowmelt system. Rochester City Council subsequently asked
that snowmelt be included in base project. This added approx.
$2.2M to project budget, per most recent estimates.
o Project team working on value engineering to otherwise
align with original budget, including clarification of project
boundaries on the 300 block.
o City staff developing Operations and Maintenance plan
and budget.
o Monthly stakeholder engagement continues with
businesses and neighborhood associations.
o The Discovery Walk Business Forward Strategy is under
development, objectives are business retention and business
growth during construction. DMC staff meeting biweekly with
a subset of the Stakeholder group to craft the strategy.
56
• Discovery Square 2
o Construction continues apace, no deviations from scheduled core/shell completion of late Q1,
2022 have been reported.
o Tenant recruitment plans and discussions continue with numerous potential tenants.
o Recently launched a standing meeting with Mayo stakeholders for lead generation.
• One Discovery Square
o Two separate lease actions (TBA) bring
total leased space to 97%. Discussions
underway for the remaining space.
o Building Tenants: Mayo Clinic, Wuxi
Diagnostics, Epic, Boston Scientific,
Philips, RION, University of Minnesota
Rochester, Café Steam, TBA x 2.
• Entrepreneurship activities
o Start-up initiative discussions continue. Goal continues to be a soft-launch in Q1 2021.
o DEED LaunchMN renewed funding of the SE MN E1 network, of which DMC is a member, so we
can continue to support entrepreneurial programming to the region.
• Other Discovery Square development, residential and retail activities
o The Maven now leasing - residential and retail space.
o The Residence Discovery Square now leasing - residential and retail space.
o The Hue now leasing – residential and retail space.
o Mayo Clinic developing plans for a 1,200 car parking structure, with approximately 30% for
tenants of One Discovery Square and Discovery Square 2, on Block 6 immediately west of One
Discovery Square.
Fulfilling the DMC Mission, Vision, and/or Goals:
Discovery Square is a new address for the future of bio-medical, research and technology innovation and
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 in the principles of translational
medicine.
Technology and innovation are core to the DMC economic strategy. Our vision is to promote an
economic development structure that fosters advancement and growth of the medical, research,
innovation, education, entrepreneurial and general business environment in Rochester.
By attracting new businesses, supporting the launch and development of new startup businesses, and
creating new public realm space, we aim to diversify the local economy, create jobs, generate new tax
revenue, and create a place that fosters a vibrant community and attracts the workforce of the future.
Work plan or capital improvement budget implications:
The current DMC work plan describes a variety of initiatives supported by DMC 2021 operating and CIP
funds, including the design documentation of Discovery Walk.
57
Approvals, milestones, and decision points:
November
2017
One
Discovery
Square
ground-
breaking
October 2019
Discovery
Walk CIP
approved for
Design doc.
February
2020
Discovery
Square 2
approved
Sept 2020
Dsicovery
Square 2
construction
began
2021
Discovery
Walk RFP
58
Transportation
To: DMC Corporation Board of Directors
From: DMC Economic Development Agency
Date: January 28, 2021
Request of the DMC Corporation board of directors:
• No Action required at this time.
Background:
TRANSPORTATION STRATEGY:
Based on market demand studies, forecasts for downtown growth, and an understanding of the city’s street and
infrastructure capacity, a model was developed as part of the DMC Development Plan and subsequent
Integrated Transit Studies (ITS), which projects the number of people commuting downtown daily will almost
double by 2035, while the existing street grid will remain fixed as it already developed. This projection was
revisited as part of the COVID-19 economic impact analysis completed as part of the 5-year DMC update and
indicated that the growth projections post-recovery will still support these figures. A multi-modal mobility
strategy for the DMC has been developed that includes the implementation of a Rapid Transit Circulator
RAPID TRANSIT CIRCULATOR:
Following authorization by DMC EDA, Rochester City Council, and DMCC, the City formally submitted an
application to the Federal Transit Administration in Fall 2020 requesting support for the first phase of the Rapid
Transit program which consists of a Bus Rapid Transit (BRT) line along the Second Street corridor, connecting
Cascade Lake to the Government Center.
59
Fulfilling the DMC Vision, Mission, and/or Goals:
DMC EDA Staff are working in collaboration with the City staff and external consultant team led by SRF to develop
the design of Rochester Rapid Transit. DMC is particularly focused on the end-to-end user experience of
transportation across every mode of mobility, with the goal of creating a world-class experience that centers
equity of access and foregrounds BRT as a desirable consumer choice.
Approvals, milestones, and decision points:
August 2020
DMCC
review of
FTA
submission
September
2020
Submission
of FTA
Application
Q1 2021
Initial Design
and
Environmental
Review
Q2 2021
Rating
Notification
Q4 2021
FTA
Determination
60
Bryk Apartments
To: DMC Corporation Board of Directors
From: DMC Economic Development Agency
Date: January 28, 2021
Request of the DMC Corporation board of directors:
• No Action Requested
Background:
Site: Land is officially purchased and owned by Bryk Apartments Rochester LLC. The property is located on
the NW corner parcel of the intersection
between N Broadway and Civic Center Drive.
Team:
• Project Team: John and Marcia
Bouquet & Dirk Erickson (Investors &
Developers) Kristina Larson
(Operations consultant) Ben Kall (Real
Estate Consultant): 30 years of local
multi-family experience
• Design: ISG Architects
• Construction: Kraus Anderson
Project Objectives:
The project team is currently
planning a mixed-use, mixed-
income apartment building
consisting of approximately 165
to 180 workforce housing
apartments and 5,000-15,000 sf
of commercial space with
construction to begin April 1,
2021 and be completed by
August 2022.
The project will provide units at varying rent levels as outlined below.
• ~20% @ 50% AMI
• ~20% @ 60% AMI
• ~60% @ prices held at or below 80% AMI
The overall unit count and affordability targets are subject to change but represent a commitment by the
Project Team to provide affordable workforce housing opportunities in the downtown. The development
team is interested in increasing the number of 50% and 60% AMI units beyond the targets above with the
N
B
r
o
a
d
w
a
y
61
assistance of TIF and DMC funds. Further discussions have been scheduled with the Developer, City and
DMC to explore this possibility.
DMC/City Priority Alignment:
The project aligns with the following DMC and City priorities as follows:
• Workforce housing project within the City, Transit-Oriented Development (TOD) and DMC zones.
• Revitalizes blighted site
• Provides a balanced and sustainable housing stock
• Promotes neighborhood stabilization and revitalization in coordination with the North Broadway
reconstruction project.
• Increase to the city’s tax base.
• Commercial space is considering a few possibilities to address food insecurity or childcare needs.
Portions of space will be intentionally held at below market rates to promote local small business
integration into the project.
• Sufficient parking will also be included for the commercial tenants.
• Project is being designed to meet City and DMC Sustainable Design Requirements
Financing:
Multiple Financial Institutions have
been contacted and the project has
been approved with a certain
expectation of assistance required.
The developer is waiting to make a
final acceptance on a financial
institution as they are determining
various benefits of each offer (i.e.:
PACE financing, terms, etc.). Project
has been awarded a brownfield site
grant to facilitate its clean-up.
Next Steps:
• DMC EDA staff and City of Rochester Staff will continue to work with the Developer
• The Developer has submitted their DMC and City Joint application and it is being reviewed for DMC
and City TIF funding opportunities
• DMC EDA staff and City of Rochester Staff are continuing to work with the team to identify a project
gap and will bring forward a recommendation to the DMC EDA Sub-Committee Review Team, DMC
EDA Board, and pending approval, the DMCC Board.
62
South-of-Downtown Waterfront
To: DMC Corporation Board of Directors
From: DMC Economic Development Agency
Date: January 28, 2021
Request of the DMC Corporation board of directors:
• No Action Requested
Background:
In Rochester’s most recent comprehensive plan, adopted in 2018, the South-of-Downtown Waterfront Area
was identified for revitalization due to its proximity to the downtown, frontage along the Zumbro River, and
the presence of large tracts of underutilized property (i.e., vacant properties and/or parking lots). However,
the comprehensive plan did not provide specific direction for what the area should become in the future.
Recently several large parcels within the Project Area have been sold or are in the process of being sold,
which is an indication that significant change may occur in the future.
The City of Rochester felt that it would be beneficial to work with stakeholders, including DMC EDA, to
prepare a collaborative, community-driven plan that represents a shared vision for the future of the Project
Area. This plan is nearing completion and is called the Downtown Waterfront S.E. Small Area Plan (DWSE
SAP).
Fulfilling the DMC Vision, Mission, and/or Goals:
DMC EDA staff have participated in the DWSE SAP process in collaboration with partners to determine how
a former industrial site better connects the downtown to nearby neighborhoods while fulfilling the DMC
vision. This area was also identified in the Urban3 tax capacity analysis completed as part of the DMC’s 5-
year update as “low hanging fruit” for thoughtful and targeted redevelopment, due to the central location
63
and large areas of open surface parking. The site also represents an opportunity to connect the walkable
street grid that exists in surrounding areas and increase green space and recreational path connections to
better leverage the Zumbro River frontage as a community asset.
The Process
The City engaged Perkins & Will to help
develop the DWSE SAP. This effort
included monthly meetings with a core
stakeholder group beginning in July of
2020 that included representation from
property owners within the project site,
the Sunnyside Neighborhood
Association, the Slattery Park
Neighborhood Association, City staff and
DMC staff. There were also several
community engagement opportunities,
including three community forums, two
property owner workshops, three
neighborhood workshops, and one
community poll.
Approvals, milestones, and decision points:
After the third and final community forum that occurred on Jan 27, 2021, the project team will begin the
process of seeking public approval of the plan. It should be noted that many of the recommendations that
come out of the plan may take many years before they are realized. This is because most of the land in the
project area is privately-owned and any change that occurs on such parcels will need to be initiated and
funded by landowners.
In order to achieve this vision and the economic potential associated with the plan, there will need to be
considerable infrastructure investment. This includes roads, bridges, blue/green systems, etc. DMCC will
likely be one of the sources of support.
64
2020 Marketing & Communications Recap
2021 Preview
DMC Marketing Plan Objectives:
● Build awareness and support of DMC and Discovery Square development by driving qualified
investor/developer, entrepreneur and life science leads and engagement
● Demonstrate continued momentum
● Drive traffic to targeted pages on DMC.mn, specifically Investor & Developer and Discovery Square
pages
Results:
Advertising Key Highlights
● 28.7M impressions delivered across TV, Radio, Social Media, Search and Display advertising.
● Launched sponsored content partnerships with American Inno and VOX Media
● Promoted webinar series via partnerships with Twin Cities Business and Finance & Commerce in addition to
digital advertising
● Paid search engagement increased year-over-year with a 4.05% Click Thru Rate (CTR) in 2020 compared to
2.21% CTR in 2019.
65
Website Analytics
DMC marketing efforts have been successful in driving traffic to key pages, primarily the homepage, Discovery
Square, Investors & Developers, Maps and Heart of the City pages .
2020 Sessions: 91K 2020 Pages Views: 154.1K
GEOGRAPHIC REACH (Google Analytics)
Description Target Metric Current Metric
Geographic reach beyond Rochester 75% beyond Rochester 79%
Geographic reach beyond Minnesota 66% beyond Minnesota 61%
Top cities beyond Rochester in order of visits include Minneapolis, MN, Chicago, IL, New York, NY,
Washington, D.C., Saint Joseph, MO, Quincy, WA, Saint Paul, MN, Crozet, VA, and Denver, CO.
Top states beyond Minnesota in order of sessions include Virginia, Illinois, New York, California, Missouri,
Texas, District of Columbia, Washington, and Florida.
Blogs and e-Newsletters
Blogs Published Newsletters Delivered Subscribers Reached
73 27 102,015 (cumulative)
Open rate is 28.09% over the past twelve months/27 newsletters. (Industry avg. = 21.9%)
Click rate is 4.9% over the past twelve months/27 newsletters. (Industry avg. = 2.2%)
715 new subscribers were added to the newsletter database, partly due to the success of DMC’s webinars.
As a result of the COVID-19 pandemic, DMC introduced new communication efforts/platforms:
The Business Pivot Blog Series featured 13 The DMC Road to Recovery Webinar Series
local businesses pivoting during the pandemic. featured industry experts sharing insights of
how key sectors of the economy could begin to
reopen safely. This series was supported with
paid media and attracted a national audience.
Additional webinars were focused on DMC’s 5-year
update to the Development Plan. Webinars
attracted approx. 188 attendees per webinar.
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DMC debuted a planned, new platform in mid-December 2020: Urban Evolution, a podcast
about harnessing creativity and innovation to transform communities.
Social Media
In 2020, DMC continued its strong social media posting and presence to communicate progress on projects,
events, educational resources and information available on the website. Additionally, more info on COVID
support and relief efforts were communicated through DMC social channels.
Facebook Likes Twitter Followers LinkedIn Followers Instagram
7,271 4,128 1,489 1,393
+124 +122 +558 +510
Earned Media
From January 1 – December 31, 2020, 1,254 DMC-related stories in the media were tracked.
Year-to-date story highlights include: COVID-19, DMCC Board meetings, DMC Annual Program, Heart of the
City, Discovery Square 2, Discovery Walk, DMC leadership transition
DMC in the Community
2021 Preview
Continuing hyper-targeting to life science, entrepreneurs/startups and digital health audiences; add new retail,
dining and etertainment (RDE) audience to marketing mix. Expand reach of Urban Evolution podcast; continue
topical webinars with thought leaders; develop an integrated lifestyle campaign around remote working.
Continue to be opportunistic.
Four episodes were published by the end of
December 2020, focusing on the DMC initiative,
entrepreneurism, collaboratively responding to
COVID-19 and the changing hospitality
landscape. New episodes post bi-weekly. Since
launch, there were 643 interactions with the
podcast (streaming downloads and YouTube
views). Targeted goal was 300 interactions.
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I am pleased to provide you with the Destination Medical Center Economic Development Agency December, 2020
Monthly Report. This monthly report highlights projects and activities within the DMC District, economic development,
finances, sustainability, experience, marketing & communications, and community engagement.
-Lisa Clarke, Executive Director
December 2020
DMC 2020 Annual Program- December 10, 2020
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2015-2019 Private Investment in DMC District
1
2nd Street
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Saint Marys
Hospital
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2
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2
2015-2019 DMC Public and Private Investment
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Economic Development
December 2020 Updates
3
•Transportation- Circulator Route: connecting a, Phase I, transit village at Mayo Clinic-owed property near Cascade Lake to a, Phase II, transit village at
Olmsted County-owned property. Mode: high amenity rapid transit (electric bus vehicles). DMCC and Rochester City Council directed staff, who have since
then, advanced a grant application to the Federal Transit Administration (FTA) in its 2020 application cycle, the deadline which was August 28, 2020. The
FTA provided a categorical exclusion for environmental review in November 2020.
•Heart of the City public realm phase one construction is estimated to be completed by July, 2021. DMC continues to lead a robust engagement strategy to
minimize negative impact on nearby businesses. These improvements, plus continual aggressive planning will continue to have a dramatic impact on the
final completion dates benefiting the local businesses and community.
•Discovery Walk design documentation for a base plan and add alternatives is 100% completed. The design development drawings for Discovery Walk and
public realm development, were approved at the November 2020 DMCC Board meeting, and that the DMC EDA and City continue the next phase of the
work, including construction documents and bidding; provided that the final project and award of any bid for construction are subject to the approval of the
DMCC. A Discovery Walk version of the Business Forward Strategy is under development. Like the Heart of the City Business Forward strategy, this version
will include tactics intended to support existing businesses (business retention). It will also include tactics related to business recruitment and business
launch.
•Chateau Theatre organizer, EDG, recently announced it will temporarily discontinue public access and programming with a goal of reopening in the Summer
of 2021, in line with the completion of Peace Plaza. Scheduled reopening is dependent on public health milestones associated with COVID-19. During this
downtime, EDG will work with the community to develop new programming initiatives, assess and recommend building modifications, and develop future
marketing strategies.
•The Downtown Waterfront SE Small Area Plan (DWSE SAP) is a 60+ acre study area located southeast of the downtown core and has approximately
1,600 feet of Zumbro River frontage. The plan will include visionary concepts that are people centric and establish natural and cultural resources within the
area. The DWSE SAP will guide transformation of the redevelopment area from its current state to a future mixed-use neighborhood that will have both its
own character as well as authentically reflect the surrounding neighborhoods. DMC along with other partners has conducted community input sessions to
inform and gather input. A high level summary of the plan was shared at the November 2020 DMCC Board meeting.
DMC funded project updates:
•Berkman Apartments- Completed June 2020.
•Wells Fargo Renovation- Completed spring 2020.
•Hyatt House- Anticipated completion spring 2021.
•Discovery Square Two- Construction began Oct 2021
•Titan Hilton Hotel- Completed spring 2019.
•The Maven on Broadway - Completed summer 2019.
•One Discovery Square- Completed summer 2019.
•Hotel Indigo- Completed early 2020.
Heart of the City Public Space Progress
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Traffic to DMC.MN:
•December traffic showed 7,656 visits and 13,182 pageviews.
•Top pages: Home page, Discovery Square, Urban Evolution Podcast, Investors and Developers, Innovators Roundtable
•Top 5 states: Minnesota, New York, Florida, Virginia, Maine
•Top 5 cities outside of Rochester: Turner ME, Minneapolis, Chicago, New York, Clermont FL
Marketing &
Communications
•Infrastructure Relief- The DMC Corporation Board of Directors approved $250,000 in financial resources in response to the COVID-19 pandemic to support
businesses reopening and recovery and new innovations that will enhance and grow Rochester’s economy and help small businesses. Initial investment
supported safely helping restaurants expand their outdoor seating.
•Keep it Local Innovators Grant Program- DMC and the City of Rochester supported 55 Rochester businesses through the Keep It Local, COVID-19 Innovators
Grant Program. The $100,000 grant program assisted small businesses that were impacted by the COVID-19 pandemic and are working with other small
business in the community to respond to those challenges.
•The Business Pivot, a blog series from DMC, features local small businesses that are pivoting not just to survive, but to thrive in the current economic
environment. These businesses are helping Southeast Minnesota continue to access products and services while also making a difference in the community.
The blog series can be accessed at dmc.mn.
•Road to Recovery Webinar Series- DMC hosted six webinars focused on the Road to Recovery during the COVID-19 pandemic and beyond. National, regional
and local leaders from a variety of industries, including construction, hospitality and commercial office, shared examples and ideas of how key sectors of our
economy can begin to reopen safely and effectively. The webinars can be accessed at dmc.mn
•Project Bootstrap is a pilot program from DMC that offers free consulting to downtown Rochester retailers and restaurants interested in receiving free in-depth
consulting geared toward innovative solutions to challenges caused by the pandemic.
•Rochester Ready- DMC is a founding partner of the Rochester Ready initiative to ensure a safe and resilient recovery for Rochester. Civic and community
organizations have convened a coalition to create a framework for moving Rochester forward as businesses begin to reopen and to address long-term stability.
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Newsletter:
December 2020 Updates
•Two newsletters were delivered to 4,008 subscribers. The average
open rate was 27.4% (industry average: 21.8%) and the average click
rate was 3.6% (industry average: 2.2%).
DMC Marketing Campaign:
•December Digital, radio and search
2.0 million impressions; 1,500 clicks and average click through rate of
0.08%
•Blog
11 blogs were published in December
•Social media channels that saw growth in December included Facebook (+1)
LinkedIn (+33) and Instagram (+21)
Media News Stories:
•In December, 149 DMC-related stories were published in the media and
296 social media mentions.
Highlights:
•How has DMC met job and tax goals in first 5 years
•Mayor Norton has big goals and priorities for Rochester in 2021
•DMC launches podcast to explore community transformation
•Destination Medical Center looks to the future
•Showcasing 5 years of Destination Medical Center progress
Social Media:
Organizational Response to COVID
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5
'HFHPEHU2020 Updates
Finance •2021 DMC EDA workplan and budgets (Budgets – DMC EDA & City, DMCC and CIP) were approved at the DMCC Board
meeting in August 2020.
Sustainability
•The Energy Integration Committee (EIC) continues to work on the projects identified in the strategic project plan including a
large-scale solar installation led by RPU and finalizing its operational model on a downtown district energy system with the
City and RPU.
•Voluntary Energy Benchmarking - The DMC and City are finalizing an energy benchmarking report for 2019 building
performance this winter to share with the DMCC Board and City Council.
•Culture-Building: For the Sustainability Series in December, we hosted Olmsted County and We Bike Rochester to discuss
rules of the road for bikes, vehicles, and methods to share the roadway. Thirty community members attended the
presentation.
•DMC is working with the Mayo Clinic, Experience Rochester, Rochester Downtown Alliance, and the Rochester Area
Chamber of Commerce to identify opportunities to enhance the experience downtown safely during the pandemic. These
groups continue to work together to discovery and learn new ways to provide a safe experience in downtown Rochester.Experience
•With the acceptance of the DMC five year update, the DMC Team continues to use this information to inform the next
steps related to the DMC workplan and future community engagement. The DMC Team is sharing the information
related to the data and analysis with other stakeholders as well, including at the Rochester Area Chamber of
Commerce’s Economic Development Summit: Our Path Forward 2021.
•Engagement specific to the Heart of the City construction continues. Weekly Zoom stakeholder meetings are held
through end of Q4 to provide construction updates and identify opportunities for improvement when working with
businesses in the impacted area. A weekly newsletter is also published with important construction and Business
Forward updates, and links to community partner resources. In anticipation of the colder winter months the engagement
team is working closely with the Rochester Downtown Alliance for programming in Q1 and Q2 of 2021.
Community
Engagement
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