HomeMy WebLinkAbout3/23/2021 DMCC Board of Directors Meeting - Agenda and Meeting PacketDestination Medical Center Corporation
Board of Directors Meeting
Tuesday, March 23, 2021
8:30 A.M.
1
DESTINATION MEDICAL CENTER CORPORATION (DMCC)
BOARD MEETING
Tuesday, March 23, 2021
8:30 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 a special meeting on Tuesday,
March 23, 2021 at 8:30 A.M. 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 897 1098 4398.
3. To join the meeting by videoconference, use the following link:
https://us02web.zoom.us/j/89710984398
AGENDA
PAGE
I. Call to Order
II. Roll Call
III. Approval of Agenda 1
IV. Approval of Minutes: February 3, 2021 3
V. Public Comment
VI. Chair’s Report
VII. April 1 Report to DEED (Presenters: Patrick Seeb, EDA;
Doug Holtan, Mayo Clinic; Terry Spaeth, City of Rochester) 7
Resolution A: Authorizing and Approving the
April 1, 2021 Report to DEED Pursuant to Statute
2
VIII. Project Approvals
A. Bryk on Broadway Apartments Project 15
Resolution B: Approving the Bryk on Broadway
Apartments Project, Contingent Upon Evidence of Funding
B. Discovery Walk 37
Resolution C: Approving an Expanded Scope
of Construction Bid Documents
IX. Project Updates (City of Rochester, EDA)
A. South of Downtown Waterfront Small Area Plan 67
B. Downtown District Energy 69
X. Rochester COVID-19 Response
XI. Meeting Schedule
A. Next Regular Meeting: May 20, 2021 at 9:30 A.M.
XII. Adjournment
1339623-5.DOCX
DESTINATION MEDICAL CENTER CORPORATION (DMCC)
BOARD MEETING
Wednesday, February 3, 2021
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, and Council President Brooke Carlson were present.
III. Approval of Agenda. Commissioner Bier moved approval of the Agenda. Mayor Norton
seconded.
Ayes: Commissioner Bier, Mr. Campbell, Council President Carlson, Mayor Norton, Chair
Rybak, Ms. Wheelock, Mr. Williams.
Nays: None.
IV. Approval of Minutes: November 19, 2020. Mr. Williams moved approval of the Minutes.
Commissioner Bier seconded.
Ayes: Commissioner Bier, Mr. Campbell, Council President Carlson, Mayor Norton, Chair
Rybak, Ms. Wheelock, Mr. Williams.
Nays: None.
V. Public Comment. No public comments were offered.
VI. Chair’s Report. Chair Rybak noted that this is Patrick Seeb’s first meeting as Executive
Director of the DMC Economic Development Agency (EDA); that the Board will consider
approval of the annual report to the legislature, discuss the transit experience, and that the
Board members may participate this afternoon in a public work session with the Rochester
City Council, Olmsted County Board of Commissioners and EDA board of directors.
VII. Consent Agenda
A. DMCC Budget: Year-to-Date Update
Ms. Wheelock moved approval of the Consent Agenda. Commissioner Bier seconded.
Ayes: Commissioner Bier, Mr. Campbell, Council President Carlson, Mayor Norton, Chair
Rybak, Ms. Wheelock, Mr. Williams.
Nays: None.
VIII. Annual Report to the Legislature
Resolution A: Approving February 15 Report to the Legislature
3
Council President Carlson noted an amendment by the City Council, stating that the Council
discussed the description of the Chateau Theatre as a “completed project” and amended the
description to note that the completed investments provide time to determine the long-term
use of the theatre.
Ms. Wheelock moved to approve Resolution A, as amended by the City Council. Mayor Norton
seconded.
Ayes: Commissioner Bier, Mr. Campbell, Council President Carlson, Mayor Norton, Chair
Rybak, Ms. Wheelock, Mr. Williams.
Nays: None.
IX. DMC Metrics. Kevin Bright, EDA Energy and Sustainability Director, and Jorrie Johnson, City
of Rochester DMC Project Manager, provided an update on DMC’s targeted workforce and
business goals. Mr. Bright noted that the DMC targeted business and workforce utilization
plan is one element of a broader approach to equitable economic development. Ms. Johnson
reported on the business and workforce utilization goals adopted by the City of Rochester,
noting that many of the goals have been exceeded since the goals were revised in mid-2020.
Ms. Johnson also described efforts to build local targeted business and workforce capacity
through workshops, industry partnerships, and planning, including with the Rochester NAACP
branch.
X.Project Updates
A. Heart of the City. Jamie Rothe, EDA Experience and Engagement Director, provided the
Heart of the City update, including a construction and “Business Forward” construction
mitigation strategy update and the planning for an “inaugural year” program.
B. Discovery Square. Chris Schad, EDA Business Development Director, reported on
economic development and placemaking activities in the Discovery Square subdistrict.
Mr. Schad and Josh Johnson, City of Rochester DMC Project Manager, also provided an
update on Discovery Walk. Mr. Schad stated that Discovery Walk was designed with input
from community co-designers (representatives from some of Rochester’s minority
communities), and includes art from local artists. Construction documents are seventy-
five percent complete, and efforts to resolve issues related to underground utilities,
operations and maintenance, and “Business Forward” construction mitigation strategies
continue. Mr. Johnsen narrated a video walk-through of Discovery Walk.
Mr. Schad outlined several items for Board discussion, including the base project budget,
the potential deferment of public space construction on the 300 block of Discovery Walk,
and other project considerations. The 300 block public space includes a portion of the
private, Mayo-Clinic-owned property adjacent to the public right-of-way, and Mayo Clinic
has proposed deferring the public space improvements on the block until it redevelops the
adjacent private property. The base project budget approved in 2019 totaled $16.8 million
but did not include a contingency budget. Since 2019, project cost estimates have
increased by $440,000. Additionally, community input has resulted in some proposed
refinements to the project, including the addition of weather structures, a sidewalk
snowmelt system, and extending the project to Soldier’s Field.
Mayor Norton asked that, for future projects, community input be solicited and adjacent
property owners be consulted prior to the drafting of construction documents. Ms.
Wheelock stated that DMC ought to ensure that the owners of properties abutting DMC
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projects are fully informed and consulted through the design and development process;
she requested that all future projects include a contingency budget, as well as an
explanation of how the contingency budget was determined and the approval process for
the use of contingency funds; and she expressed support for deferring the 300 block public
space construction until it can coincide with Mayo Clinic’s private development.
Mr. Williams noted the project cost, including the snow-melt system and other optional
features, amounts to approximately $23 million, or about four percent of DMC’s total
resources. He also noted that the financial resources for the additional investments could
be put toward other uses, like affordable housing. Chair Rybak requested that Mayo Clinic
provide an update at the next regular DMCC meeting regarding its development plans and
timing for the 300 block.
Ms. Wheelock asked how the Board would receive a proposal to amend the scope of the
project. Mr. Seeb noted that any amendment to the scope would be proposed following
consultation with the EDA board, as well as City staff and elected leaders. Chair Rybak
affirmed the EDA’s advisory role to the DMCC but stressed the importance of the public
DMCC board playing the leading role in DMC public investment decision-making.
Ms. Wheelock noted that snowmelt systems are often appropriate in high-traffic outdoor
areas, but posed several questions that should be addressed, including how the
development of a pedestrian subway or skyway in the Discovery Square sub-district might
impact street-level pedestrian traffic during winter months; what the drivers of foot traffic
through this corridor will be; and how the project capital budget and operations and
maintenance costs will be impacted by these options. Council President Carlson noted
that adding the snowmelt system to the DMC capital project budget alleviates the need for
the City of Rochester to fund ongoing labor and equipment costs to maintain accessible
public space following a snowfall. Ms. Wheelock also asked staff to identify existing
snowmelt systems in the downtown area, where else are they planned, and whether the
Discovery Walk project establishes a new, different standard for sidewalk construction
going forward.
Chair Rybak requested that staff prepare a “winter strategy” recommendation that reflects
how people are likely to use the public space during the winter, which climate-control
amenities are necessary given that likely use, and how any future pedestrian subway or
skyway development may impact such a strategy.
C.Transportation Experience. Catherine Malmberg Dannenbring, EDA Interim Director of
Economic Development and Placemaking and Mona Elabaddy, SRF Consulting Transit
Planning and Design lead, presented the transportation experience update. Silvia Bujak-
Oliver, community co-designer and Executive Director of 125Live, Rochester’s community
senior center, joined the presentation.
Ms. Elabaddy described how the co-design process input was incorporated into the rapid
transit project, and noted that vehicle platforms could feature many amenities, including
weather protection, increased lighting for safety, and seating. Mayor Norton asked that the
illustration of the transit circulator, which currently show three lanes of traffic, be altered to
show the two vehicle lanes that currently exist on S. Second Street. Ms. Malmberg
described the transit-oriented economic development opportunities expected to develop
along the rapid transit corridor and at the transit village locations. Board members
emphasized the development opportunity at the west transit village, which is expected to
include housing and other amenities.
5
D. Other Private Projects
1. Bryk Apartments. Mr. Seeb described the proposed 180-unit mixed-income affordable
housing development. The project would be located on the northwest corner of
Broadway Ave. and Civic Center Drive, along a dedicated transit corridor in the DMC
district. The DMCC will consider a special meeting if the EDA and City staff advance
a DMC funding recommendation.
XI. EDA Update
A. Marketing Update. Bill Von Bank, EDA Marketing and Communications Director, provided
a marketing update, noting the recent launch of DMC’s “Urban Evolution” podcast, the
national reach of DMC’s 2020 marketing campaign, and DMC’s 2021 target audiences of
life science audiences, entrepreneurs, and retail, dining and entertainment businesses.
Chair Rybak requested that the DMC marketing team consider how Rochester can be
positioned as a “gateway” to other regional amenities.
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. Mr. Campbell moved to adjourn. Commissioner Bier seconded.
Ayes: Commissioner Bier, Mr. Campbell, Council President Carlson, Mayor Norton, Chair
Rybak, Ms. Wheelock, Mr. Williams.
Nays: None.
1338917-3.DOCX
6
Destination Medical Center
Economic Development Agency
DESTINATION MEDICAL CENTER
APRIL 1 REPORT TO DEED
TABLE OF CONTENTS
Page 8: Summary Memo from DMC EDA
Page 9: Resolution authorizing the DMCC Chair or Treasurer to submit the report
Page 11: Certification of Expenditures form
Page 12: Summary sheet of 2020 Non-Mayo Clinic private investment
Page 13: Construction permits closed in 2020
Page 14: Letter from Mayo Clinic to DEED
7
Destination Medical Center
Economic Development Agency
MEMO
TO: Destination Medical Center Corporation
FROM: Destination Medical Center Economic Development Agency
RE: 2020 DMC PRIVATE INVESTMENT
By April 1 of each year, the DMC Corporation and Mayo Clinic must report DMC private
investment to the State of Minnesota’s Department of Employment and Economic
Development (DEED). DEED uses this information to affirm the success of the DMC initiative
and determine the required amount of annual State DMC funding. This productive reporting
relationship is one aspect of the unique DMC economic development model. The formal report
follows this summary memo.
New private investment in 2020, comprised of investment by Mayo Clinic and other private
investors totals $144.1 million:
a.Mayo Clinic private investment: $60.3 million
b.Non-Mayo-Clinic private investment: $83.8 million
Even amidst the global COVID-19 pandemic, 2020 private investment demonstrates the positive
market response generated by DMC’s economic development, marketing and business
development, workforce and entrepreneurism, community engagement, experience,
sustainability, and transportation strategies. These investments build upon DMC’s successful
first five years, which saw more than $962 million in DMC private investment and the creation
of an estimated 7,700 new jobs.
Perhaps as importantly, though, is the fact that 2020 DMC investments, by the public and
private sectors, supported well-paying jobs in the construction and building trades, generated
tax revenue, and positioned the DMC initiative as a key element of economic recovery,
resiliency, and growth.
8
A.
DESTINATION MEDICAL CENTER CORPORATION
RESOLUTION NO. ___-2021
Authorizing and Approving the April 1, 2021 Report to DEED Pursuant to Statute
BACKGROUND RECITALS
A.Minnesota Statutes, Section 469.47, provides that by April 1 of each year, the
medical business entity (Mayo Clinic) must certify to the Commissioner of the Department of
Employment and Economic Development (“DEED”) the amount of expenditures made by Mayo
Clinic in the preceding year. For expenditures made by an individual or entity other than Mayo
Clinic, the Destination Medical Center Corporation (“DMCC”) must compile the information on
the expenditures and may certify the amount to DEED. The certification to DEED must be in the
form prescribed by DEED and include any documentation and supporting information regarding
the expenditures that DEED requires (the “April 1, 2021 Report”). By August 1 of each year,
DEED must determine the amount of expenditures for the previous year.
B.Staff from the City of Rochester and the Destination Medical Center Economic
Development Agency have prepared the draft report due on April 1, 2021, and attached hereto as
Exhibit A.
RESOLUTION
NOW, THEREFORE, BE IT RESOLVED, by the Destination Medical Center
Corporation Board of Directors that the Chair or Treasurer of the DMCC is authorized to execute
and submit the April 1, 2021 Report to the Minnesota Department of Employment and Economic
Development as required by Minnesota Statutes, Section 469.47, in form similar to the form
attached hereto as Exhibit A, as may be modified through further discussions with Mayo Clinic
or the City of Rochester, and authorizes the Chair or Treasurer to make such other modifications,
and to take such other actions as are necessary and appropriate to effectuate the timely
submission of the report to DEED.
1338998-3.DOCX
9
EXHIBIT A
10
DR
A
F
T
1
2
3
4
5
6
7
8
9
For all other Expenditures:
1340053-2.xls
1Expenditures need to be after June 30, 2013
2Other Private Entities' certification of expenses may be certified retroactively in 2014 after the Destination Medical
Center District and Development Plan are adopted.
Form Revised 02/26/2021
3This figure is based solely upon project building permit costs. Minn. Stat. § 469.47, subd 1(d) permits additional
expenditures, and discussion is underway as to how to document such additional expenditures, which may result in
adjustments.
DateDestination Medical Center Corporation
By providing my signature below, I am hereby certifying that, to the best of my knowledge, the information stated herein
is accurate, true, and complies with the provisions of Minnesota Statutes Section 467.47 and the approved methodology
as outlined in the City of Rochester Commissioner of Employment and Economic Development State Infrastructure Aid
Agreement.
State Transit Aid Qualified for (Box 7 multiplied by .0075 and then multiplied by .6)
DateMayo Clinic Chief Financial Officer
For Expenditures By the Medical Business Entity:
$4,081,032.61
All Expenditures claimed since June 30, 2013
State Aid Qualified for This Year (local government match also required)
General State Infrastructure Aid Qualified for (Box 7 multiplied by .0275)$24,939,643.74
$962,794,654.81
$144,101,481.31
$1,106,896,136.12
$906,896,136.12
Previous Years Expenditures (cumulative)
TOTAL Expenditures This Year3 (from Box 3)
All Claimed Expenditures as of 12/31/20 (Box 4 plus Box 5)
Qualified Expenditures claimed in 2020 (Box 6 minus $200,000,000)
Certification of Expenditure
Destination Medical Center
For Calendar Year 2020
Due to Commissioner of Employment and Economic Development (DEED) by April 1, 2021
The Medical Business Entity and the Destination Medical Center Corporation (DMCC) Board of Directors (assisted by
the City of Rochester) hereby submit to the Department of Employment and Economic Development (DEED) the
following report for expenditures that relate to the Destination Medical Center (DMC) Development for the calendar year
2020, and the certifications required to support the documentation under the City of Rochester Commissioner of
Employment and Economic Development State Infrastructure Aid Agreement.
$60,341,258.46
$83,760,222.85
$144,101,481.31
Total Expenditures Reported This Year by Medical Business Entity1
Total Expenditures Reported This Year for other Private Entities1,2
TOTAL Expenditures This Year
Expenditures Reported this Year
EXHIBIT A
11
Building Permits within the DMC Boundary
(Does not include Mayo Projects)
Completed
Year Projects
2016 32,000.00$
2018 8,540,000.00$
2019 11,172,232.00$
2020 1,618,471.00$
TOTAL 21,362,703.00$
2018/2019/2020 Destination Medical Center ‐ Partially Completed Projects Tracking
2018 2019 2020
Project Address
Total Building Permit
Value
Partial Completed Work
Claimed Completed Work Claimed
Completed Work
Claimed
Berkman (Alatus) 217 & 301 14th Ave SW 93,315,800.00$25,936,546.00$59,063,337.00$8,315,917.00$
93,315,800.00$ 25,936,546.00$59,063,337.00$8,315,917.00$
2019/2020 Destination Medical Center ‐ Partially Completed Projects Tracking
2019 2020 2021
Project Address
Total Building Permit
Value
Partial Completed Work
Claimed Completed Work Claimed
Completed Work
Claimed
Hyatt House 315 1st Ave. NW 32,253,475.00$6,940,448.00$24,151,076.04$
Eleven02 101 11th Ave. SW 29,690,975.00$4,159,810.90$24,377,346.96$
61,944,450.00$11,100,258.90$48,528,423.00$
2020 Destination Medical Center ‐ Partially Completed Projects Tracking
2020 2021
Project Address
Total Building Permit
Value To Date
Partial Completed Work
Claimed Completed Work Claimed
Two Discovery Square 415 2Ave SW 9,700,000.00$5,553,179.85$
TOTAL 83,760,222.85$
12
Sub Type Level Category
Level
Permit
Number
Permit Issue
Date
Parcel
Number
Address Info Permit
Valuation
Work Description Owner Permit Status Date Finaled
Commercial Bldg Alteration R16-0162CB 5/12/2016 014315 4 SW 3 ST, ROCHESTER, MN
55902
$32,000 Reroof south 1,720 sq ft section
with adhered EPDM (Grand
Rounds Restaurant)
INDIGO FUSION HOLDINGS
LLC
720 NORTHERN HILLS DR
NE
ROCHESTER, MN 55906
Finaled 5/22/2020
Sign Business R18-0093S 9/25/2018 083045 10 E CENTER ST,
ROCHESTER, MN 55904
$40,000 Wall signs "Hilton" for downtown
location
Titan Development/Brian
Moser
30 3 ST SE
STE 600
ROCHESTER, MN 55904
Finaled 2/19/2020
Commercial Bldg Alteration R18-0451CB 5/7/2019 081707 20 SW 2 AVE, ROCHESTER,
MN 55902
$8,500,000 Renovation and reduction of
existing hotel rooms. (Kahler Grand
Hotel)
Christopher Ness
20 2 AVE SW
ROCHESTER, MN 55902
C of C Issued 12/15/2020
Commercial Bldg Alteration R19-0070CB 4/2/2019 083045 10 E CENTER ST 220,
ROCHESTER, MN 55904
$92,750 Tenant improvements to include
completion of mechanical and
electrical and finishes. (J. Powers
Office Space)
Powqers Ventures
2112 2nd St SW
Suite 100
Rochester, Mn 55902
CO Issued 2/19/2020
Commercial Bldg Alteration R19-0184CB 7/10/2019 025241 415 S BROADWAY AVE,
ROCHESTER, MN 55904
$310,000 Fit-up for RPS classroom in south
half of building. North half will be
whitebox for future tenant.
(Incubator Classroom)
Traci Downs
14 4th St SW
Suite 202
Rochester, MN 55902
CO Issued 3/23/2020
Commercial Bldg Alteration R19-0230CB 10/29/2019 083795 202 SW 4 ST 250,
ROCHESTER, MN 55902
$1,109,744 New tenant improvement will
occupy space on the second level,
office space. (Discovery Square
Building)
Silver Lake Investors
700 Meadow Lane North
Minneapolis, MN 55422
CO Issued 7/21/2020
Commercial Bldg Phased
Partial
Permit
R19-0290CB 11/8/2019 080524 220 S BROADWAY AVE,
ROCHESTER, MN 55904
$350,000 Structural package for operable
exterior wall and roof for new
restaurant in building. (Hotel
Indigo)
Jim Toninato
5713 Grand Ave
Suite B
Duluth, MN 55807
Finaled 9/2/2020
Commercial Bldg Alteration R19-0403CB 11/20/2019 073709 1211 SW 2 ST, ROCHESTER,
MN 55902
$100,000 Demo 85 tub/surrounds, replace
vanities. Demo 3 ADA tubs in units
140, 413 & 405. (Aspen Suites)
Regency Hotel Management
Company
1211 2nd St SW
Rochester, MN 55902
C of C Issued 3/27/2020
Commercial Bldg Alteration R19-0326CB 12/11/2019 080524 220 S BROADWAY AVE,
ROCHESTER, MN 55904
$2,250,000 Core and shell for Crave
restaurant. Refer to R19-0290 for
Structural. (Hotel Indigo - Crave
Restaurant)
Jim Toninato
5713 Grand Ave
Suite B
Duluth, MN 55807
C of C Issued 9/3/2020
Multi-Family Bldg Phased
Partial
Permit
R19-0053MFB 8/5/2019 017784 324 SW 1 AVE, ROCHESTER,
MN 55902
$340,000 Earth retention for 50 unit
multifamily with retail on the 1st
floor. (The 324 Apartments)
Marc Bassara
3033 Excelsion Boulevard
Suite 10
Minneapolis, MN 55416
Finaled 11/16/2020
Multi-Family Bldg Phased
Partial
Permit
R19-0017MFB 8/21/2019 017784 324 SW 1 AVE, ROCHESTER,
MN 55902
$660,000 Footing/foundation for a 50 unit
multifamily with retail on the 1st
floor. (The 324 Apartments)
988 Rochester, LLC - Clark
Gassen
1907 Wayzata Blvd
Suite 180
Wayzata, MN 55391
Finaled 11/16/2020
Multi-Family Bldg New R19-0048MFB 9/16/2019 017784 324 SW 1 AVE, ROCHESTER,
MN 55902
$5,675,738 50 unit multifamily with retail on the
1st floor. (The 324 Apartments)
Marc Bassara
3033 Excelsion Boulevard
Suite 10
Minneapolis, MN 55416
CO Issued 11/16/2020
Multi-Family Bldg Alteration R19-0092MFB 11/8/2019 083687 511 SW 3 AVE, ROCHESTER,
MN 55902
$250,000 Fit out of shell space for common
area and community room for the
residents. (Residence at Discovery
Square)
Vance Vinar
3686 CHAPPUIS TRAIL
FARIBAULT, MN 55021
CO Issued 4/14/2020
Multi-Family Bldg Alteration R19-0104MFB 11/8/2019 NOPN99 728 SW 1 AVE, ROCHESTER,
MN 55902
$34,000 Replacement of existing gypsum
ceiling, batt insulation and rigid
foam on the underside of a parking
garage. (Point of View Condo
Association)
POV Condo Association
728 1st Ave SW
Rochester, MN 55902
C of C Issued 2/18/2020
Commercial Bldg Alteration R20‐0057CB 04/01/20 11555
1215 2 ST SW, ROCHESTER,
MN 55902 $26,000
Contractor to remove and replace
equipment, antennas and coax.
(Roc Fiksdal Motel)Verizon Wireless Finaled 4/28/2020
Commercial Bldg Alteration R20‐0159CB 07/08/20 82430
206 BROADWAY AVE S,
ROCHESTER, MN 55904 $262,128
Interior fit‐up of fourth floor for
office and training. (MN Public
Defenders Office)Cornerstone Management C of C Issued 10/5/2020
Multi‐Family Bldg Alteration R20‐0022MFB 06/17/20 18102
211 2 ST NW 2003,
ROCHESTER, MN
55901 $80,000
Combining apartment 2003 and
2004 into one apartment. (Charter
House)
CHARTERHOUSE INC ‐
Deborah Kenitz Finaled 10/29/2020
Multi‐Family Bldg Alteration R20‐0016MFB 05/22/20 18102
211 2 ST NW 417, ROCHESTER,
MN
55901 $130,000
Remodel of suite 417. (Charter
House)
CHARTERHOUSE INC ‐
Deborah Kenitz Finaled 11/18/2020
Multi‐Family Bldg Alteration R20‐0001MFB 01/28/20 18102
211 2 ST NW 804, ROCHESTER,
MN
55901 $70,000
Combining apartment 804 and 805
into one apartment. (Charter
House)
CHARTERHOUSE INC ‐
Deborah Kenitz Finaled 9/23/2020
Commercial Bldg Alteration R20‐0017CB 05/28/20 82434
211 BROADWAY AVE S,
ROCHESTER, MN 55904 $89,000
Remodel of existing office space
into two apartments condos. (211
S. Broadway)NINE UNLIMITED LLC C of O Issued 9/25/2020
Commercial Bldg Addition R20‐0185CB 08/11/20 81808
214 BROADWAY AVE N,
ROCHESTER, MN 55906 $10,000
Adding to the existing deck.
(Hollandberry Pannekoeken
Restaurant)Tasos Psomas Finaled 9/14/2020
Multi‐Family Bldg Alteration R20‐0028MFB 07/07/20 17870
224 1 AVE SW, ROCHESTER,
MN 55902 $134,536
Remove and replace existing
blasted EPDM roof. (Residences of
Old City Hall)Multiple Financial Services Finaled 8/13/2020
Commercial Bldg Alteration R20‐0124CB 06/12/20 17784
324 1 AVE SW, ROCHESTER,
MN 55902 $755,000
MinnWest Bank new branch office
tenant fit out at the 324
Apartment Building. (MinnWest)Minnwest Bank C of O Issued 10/2/2020
Commercial Bldg New R20‐0157CB 06/17/20 70415
400 5 AVE SW, ROCHESTER,
MN 55902 $22,107
Replace existing retaining wall with
new modular retaining wall. (Christ
United Methodist Church)CHRIST UNITED METHODIST CHFinaled 7/2/2020
Commercial Bldg Alteration R20‐0141CB 05/27/20 77284
705 2 ST SW, ROCHESTER, MN
55902 $39,700
Re‐roof of existing building. Tear
off and re‐roof asphaltic shingles.
(Gift of Life Transplant House) Gift of Life Transplant House Finaled 6/22/2020
Commercial Bldg
Phased
Partial
Permit R20‐0243CB 11/04/20 83796
415 2 AVE SW, ROCHESTER,
MN 55902 $7,500,000
Footing, foundations and
underground utilities. (Two
Discovery Square)Rochester 2 Associates LLC Issued 11/4/2020
Commercial Bldg
Phased
Partial
Permit R20‐0281CB 12/18/20 83796
415 2 AVE SW, ROCHESTER,
MN 55902 $2,200,000
Structural steel. (Two Discovery
Square)Rochester 2 Associates LLC Issued 12/18/2020
Partial Completed Projects $31,062,703
TOTAL $21,362,703
13
200 First Street SW Rochester, Minnesota 55905
507-284-2511
March 23, 2021
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:
Attached with this letter is Mayo Clinic’s certification of qualified expenditures of the medical business entity for
the Destination Medical Center (DMC) initiative from January 1, 2020, to December 31, 2020. The amount of
qualified investment is approximately $60.3 million. Major projects included the continued modernization of
Mayo Clinic Hospital, Saint Marys Campus; many improvements to Mayo Clinic’s downtown Rochester,
Minnesota, campus; and investment in DMC’s Discovery Square life science sub-district.
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, we spent more than $300 million on capital projects and equipment in Rochester in 2020. In addition to
our commitment to DMC, these investments included improving our medical tissues archive and purchasing
world-class medical equipment. In total, we will invest more than $1 billion in Rochester facilities and equipment
between now and 2024. Through 2020, our DMC investment totals more than $650 million.
While impacted by the economic effects of the COVID-19 pandemic, we were able to resume our investment in
major capital projects in late 2020 and added more than one thousand jobs to our Minnesota workforce over the
course of a challenging year. We accomplished this while also contributing to the worldwide efforts to end the
COVID-19 pandemic. I am incredibly grateful to our dedicated and hard-working staff – in Minnesota and across
the globe – who have continued to provide world-class patient care, medical education and research during this
unprecedented time. As Minnesota’s largest employer and largest-ever economic development initiative, Mayo
Clinic and DMC will continue to play important roles in supporting the economic resiliency and recovery of our
state.
We remain committed to collaborating with the state of Minnesota, city of Rochester, Olmsted County and other
stakeholders to strengthen our economy and affirm Minnesota’s position as the world’s premier destination
medical center.
Thank you.
Sincerely,
Jeff Bolton
Chief Administrative Officer
Mayo Clinic
CC: Kevin McKinnon, Deputy Commissioner Economic Development,
Minnesota Department of Employment and Economic Development
14
B.
DESTINATION MEDICAL CENTER CORPORATION
RESOLUTION NO. __-2021
Approving the Bryk on Broadway Apartments Project,
Contingent Upon Evidence of Financing and Certain Conditions
BACKGROUND RECITALS
A.Under Minnesota Statutes, Section 469.41 Subdivision 13, a project must be
approved by the Destination Medical Center Corporation (“DMCC”) before it is proposed to the
City of Rochester (the “City”). The DMCC must review the proposed project for consistency
with the Development Plan, adopted by the DMCC on April 23, 2015, as amended (the
“Development Plan”).
B.The Development Plan established certain goals and objectives of economic
development, which include creating approximately 35,000 – 45,000 new jobs, attracting new
business and expanding existing business, as well as implementing strategies to attract, retain,
and foster the development of a highly skilled workforce. The Development Plan also directed a
comprehensive strategy to address all facets of building and sustaining the development district
boundaries as adopted in the Development Plan (the “Development District”).
C.The Development Plan also pursued a housing mix that includes affordable and
workforce units, as well as market-rate housing. The Five-Year Update to the Development Plan,
adopted by the DMCC on November 19, 2020 in Resolution No. 109-2020, further emphasized
the need for housing, particularly with a range of income accessibility, workforce housing, and
housing near public transit. The DMCC has determined that workforce housing within the
Development District forms a necessary component of workforce development to support the
overall economic development goals and strategies.
D.By correspondence to the DMCC dated March 12, 2021, and attached hereto as
Exhibit A, the City has requested approval of the Bryk on Broadway Apartments Project (the
“Proposed Project”) as a public infrastructure project. The City plans expenditures and financing
of up to $2,237,354 in funding from tax increment financing bonds, without seeking credit to the
City’s $128,000,000 local contribution. In addition, the City requests approval of up to
$2,200,000 in funding through general state infrastructure aid under Minnesota Statutes, Section
469.47, subdivision 3.
E.The Proposed Project advances a range of housing choices affordable to persons
and families who comprise the Development District’s workforce -- with 30% of units at 50% of
Adjusted Median Income (AMI), 10% of the units at 60% AMI , and 60% of the units at 80%
AMI – supporting the expansion of new jobs and economic development goals of the
Development Plan. In addition, the Proposed Project is designed to integrate high-density
housing into the public transit planning within the Development District, as well as achieve
sustainability goals.
15
F.Pursuant to Minnesota Statutes, Section 469.45, subdivision 4, the City may elect
to establish one or more redevelopment tax increment financing districts within the Development
District to fund public infrastructure projects.
G.Minnesota Statutes, Section 469.40, subdivision 11, defines “public infrastructure
project” as “a project financed in part or in whole with public money in order to support the
medical business entity's development plans, as identified in the DMCC development plan” and
expressly includes, among other items, the ability to
(3) remediate land and buildings as required to prepare the property for
acquisition or development;
(4) install, construct, or reconstruct elements of public infrastructure required to
support the overall development of the destination medical center development
district including, but not limited to, streets, roadways, utilities systems and
related facilities, utility relocations and replacements, network and
communication systems, streetscape improvements, drainage systems, sewer and
water systems, subgrade structures and associated improvements, landscaping,
facade construction and restoration, wayfinding and signage, and other
components of community infrastructure; . . .
(5) acquire, construct or reconstruct, and equip parking facilities and other
facilities to encourage intermodal transportation and public transit;
(7) make related site improvements including, without limitation, excavation,
earth retention, soil stabilization and correction, and site improvements to support
the destination medical center development district . . . .
(8) prepare land for private development . . . .
H.The site of the Proposed Project is located in the Development District and in the
Central Station subdistrict described in the Development Plan.
I.On April 27, 2017, the DMCC approved Resolution No. 51-2017, which requires
additional review of projects upon material deviation from the approvals granted, to ensure that
“as-built” projects are consistent with approvals that have been granted.
J.The City and the Destination Medical Center Economic Development Agency
(the “EDA”) have examined the Proposed Project applying the evaluation factors contained in
the Development Plan, and now recommend the Proposed Project for approval. Copies of those
reports are available and on file with the City and the EDA.
RESOLUTION
NOW, THEREFORE, BE IT RESOLVED, by the Destination Medical Center
Corporation Board of Directors, that the DMCC finds that the Proposed Project is a public
infrastructure project within the meaning of Minnesota Statutes, Section 469.40, subdivision 11,
which provides for: installing or constructing elements of public infrastructure required to
16
support the overall development of the destination medical center development district including,
but not limited to, streets, roadways, utilities systems and related facilities, streetscape
improvements, drainage systems, sewer and water systems, landscaping, facade construction,
and other components of community infrastructure; acquiring or constructing other facilities to
encourage intermodal transportation and public transit; making related site improvements,
excavation, and earth retention; and remediating land and prepare the property for private
development; and that the DMCC approves the Proposed Project as consistent with the
Development Plan.
BE IT FURTHER RESOLVED, that the DMCC approves the Proposed Project for the
purposes of Minnesota Statutes, Section 469.47, subdivision 3, of up to $2,200,000 in funding
through general state infrastructure aid, upon final approval by the City, to reimburse eligible
public infrastructure expenses.
BE IT FURTHER RESOLVED, that the DMCC approves the Proposed Project for the
purposes of Minnesota Statutes, Section 469.47, subdivision 4, and supports the City’s
expenditures of up to $2,237,354 in tax increment financing identified in the Proposed Project,
upon final approval by the City.
BE IT FURTHER RESOLVED, that the approvals contained herein are expressly
contingent upon: 1) an agreement by the parties to the development assistance agreement as to
both tax increment funding and general state infrastructure aid that secures public funds and
enforces the income-affordability criteria for a period of at least thirty years, requiring repayment
for breach or default; and 2) evidence of financing satisfactory to the Board, such evidence to be
presented within 90 days concurrent with the 90 day period set forth in the City’s approved
development assistance agreement.
BE IT FURTHER RESOLVED, that DMCC Resolution No. 51-2017 is incorporated
fully herein by reference.
BE IT FURTHER RESOLVED, that City and EDA staff are requested to provide
updates with respect to financing, schedule, and other elements of the Proposed Project.
BE IT FURTHER RESOLVED, that the Chair or the Treasurer of the DMCC is
authorized to take such actions as are necessary and appropriate to effectuate the findings and
approvals of this Resolution.
1337156-6
17
EXHIBIT A
18
Memo
To: DMCC Board of Directors
Cc: Kathleen Lamb, Kathleen Brennan, Patrick Seeb, Kevin Bright, Catherine Malmberg,
Alison Zelms, Aaron Parrish, Brent Svenby, Josh Johnsen
From: Terry Spaeth
Date: March 16, 2021
Subject: DMCC Board approval for the Bryk project
__________________________________________________________________
The City of Rochester provides the following information relating to the Bryk Project for your consideration
at your March 23, 2021 meeting.
1.DMCC Board action requested. Grant approval of the prepared resolution to approve the Bryk
Project (herein after “Project”) as a DMC Public Infrastructure Project that is consistent with the
DMC Development Plan. The approval as a DMC public infrastructure project by the DMCC Board
is required before the City Council can act to approve it as a DMC Public Infrastructure Project. Such
approval would need to be made contingent upon the City of Rochester’s subsequent approval of the
Project as a DMC Public Infrastructure Project and of the Development Assistance Agreement
(DAA) for the Project.
2.Current project status/schedule. The City of Rochester has land use, planning and zoning authority
for all projects in the City including within the DMC Development Plan Area. In addition the City
has the authority to provide financial assistance, if needed, to assist in the development of projects
through Tax Increment Financing (TIF) including the authority to establish TIF districts within the
DMC Development Plan area.
a.Land Use and Zoning Status. The City’s Community Development Team has been working
with the Bryk Team regarding the Site Development Plan approval process and requirements.
The Site Development Plan application will be submitted on March 25, 2021 for approval by the
Community Development Team.
b.Establishment of Tax Increment Financing (TIF) District and Development Assistance
Agreement (DAA) and Approval as a Public Infrastructure Project as identified in the DMC
Framework Plan. The land use approvals would allow the Project to proceed to construction by
the developer and are independent of any financial assistance considerations or approval as a
DMC Public Infrastructure Project. However, the Developer has indicated the Project would not
be able to proceed to construction and be financially feasible without or “but for” some financial
EXHIBIT A
19
Memo
assistance from the City or the DMCC. The developer has provided detailed financial
information to document the need for $4.437,354 in assistance to close the financial “gap” for
this Project. Of that amount, $2.2 Million in DMC funding will be provided to the project and
$2,237,354 in PAYGO TIF assistance will be provided. A public hearing on the establishment
of a Tax Increment Financing District is being scheduled for April 5, 2021.
c. The City EDA will consider this as a component of the Development Assistance Agreement
(DAA) at a future meeting. It should be noted that the City team has been working closely with
the DMC EDA team in the review of all aspects of this Project including the proposed amount
of financial assistance that is recommended for the Project. The DMC EDA will be providing
their comments on the Project separately and independently from the City team. The DMC EDA
and City teams are in agreement regarding the recommended amount of assistance and the
developer has indicated that they can proceed with the Project with the recommended level of
assistance. Approval by the DMCC Board of the Bryk Project as a DMC Public Infrastructure
Project will also mean that DMC provisions relating to prevailing wage rates, WMBE, and
American-made steel will also apply for the construction of the Project.
The City’s review of the financial information provided by the developer which showed a financing
gap, was based on our experience in reviewing other TIF projects over the years and a financial
analysis of the submitted developer information by Baker Tilly, the City’s financial consultant, which
performs such reviews for many communities. The TIF assistance is estimated to equate to
approximately 95% of the available annual tax increments for 11 years.
3. Private Financial Investment Impact Information.
The request for public funding, as a proposed Public Infrastructure Project, is what requires DMCC
approval before the presentation to the City Council.
a. Bryk Project Capital Project Investment.
(1) General State Infrastructure Aid (GSIA). The project developers have submitted information
that shows that the overall project cost is estimated at $39,482,751. That investment is
multiplied by 2.75% to determine the amount of General State Infrastructure Aid (GSIA)
annual payments, which equates to an estimated $1,085,776.
(2) State Transit Aid (STA). That same $39.5Million investment amount is multiplied by 0.75%
to determine the State Transit Aid (STA) annual payment amount, which is estimated at
$296,121 per year, payable annually over several years. An estimated 40% of the annual
STA amount would be from the required local match provided by Olmsted County.
4. Summary of the Proposed Project.
a. The project is a mixed use redevelopment project consisting of an approximately 6-story, 180-
unit workforce residential apartment building to be known as “Bryk on Broadway
20
Memo
Apartments,” with approximately 100 underground parking stalls and 40 street level parking
stalls, an exercise facility, board room, indoor and outdoor community spaces, and
approximately 7,000 square feet of commercial/retail space to be located on N Broadway
Avenue between 5th Street NW and Civic Center Drive NW in the City. The project provides
for rental housing that meets identified needs an indicated in the recently updated Maxfield
Housing Study.
30% of the units (54 units) will be affordable at 50% area median income and rents
10% of the units (18 units) will be affordable at 60% area median income and rents
60% of the units (108 units) will be affordable at 80% area median income and rents.
5.How does the proposed Project address the DMC Development Plan goals and objectives?
a.The Project is within the DMC Central Station subdistrict and the proposed development will
provide opportunities for persons to reside in close proximity to downtown employers and is
located along the North Broadway primary transit corridor, so provide excellent pedestrian and
transit opportunities.
b.The Project will provide a capital investment of nearly $40 million within the DMC
Development Plan area and will increase tax base by over $284K annually, based upon existing
tax rates.
c.The Project develops an underutilized property in a manner that is consistent with the Rochester
Downtown Master Plan and the City’s Comprehensive Plan.
d.The project incorporates various sustainability elements, which is consistent with the DMC
vision.
e.The project construction will include wage rates, WMBE and American made steel provisions.
21
22
DESTINATION MEDICAL CENTER
ECONOMIC DEVELOPMENT AGENCY
MEMORANDUM
To: Chair R.T. Rybak and the Destination Medical Center Corporation Board of Directors
From: Jeffrey Bolton, President of the Board of Directors
Patrick Seeb, Executive Director
Destination Medical Center Economic Development Agency
Date: March 17, 2021
Re: Bryk Apartments Development Project Recommendation
The Destination Medical Center Economic Development Agency (DMC EDA) board of directors
acted unanimously in recommending the proposed Bryk Apartments development project to
the Destination Medical Center Corporation (DMCC) as a Public Infrastructure Project,
consistent with the Destination Medical Center (DMC) Development Plan and Statute.
The DMC EDA board directors and staff thoroughly reviewed the development proposal and
submits the enclosed report of our findings. The report details the project scope and amenities,
as well as the extraordinary benefits that will be realized by developing the project, including:
• Mixed-use, mixed-income apartment building
o 180 workforce housing apartments
o Approximately 7,000 sf of commercial space
o Construction begins summer 2021, concludes by fall 2022
• The project will provide housing units at varying rent levels
o 2019 Rochester Area Median Income (AMI) was $73,106
o Typically, affordable housing cost is considered to be 30% of gross income
o 54 units (30% of total) @ 50% AMI
o 18 units (10% of total) @ 60% AMI
o 108 units (60% of total) @ 80% AMI
• The project aligns with the following DMC and City priorities:
o Workforce housing project within the City TOD and DMC districts
o Revitalizes vacant site
o Promotes neighborhood revitalization in coordination with N. Broadway reconstruction
o Increases the tax base
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DESTINATION MEDICAL CENTER
ECONOMIC DEVELOPMENT AGENCY
o Commercial space uses could address food insecurity or childcare needs, with portions
of space intentionally held at below market rates
o Project is designed to meet DMC design guidelines and sustainability requirements
In addition to the conditions applied to Public Infrastructure Projects by DMCC Resolution No.
51-2017, the DMC EDA recommends that the developer be required to submit evidence of
qualified DMC expenditure in a manner that is satisfactory to DMC EDA and City staff.
If approved, this project will be subject to the DMC women- and minority-owned business
engagement targets and American-made steel and prevailing wage requirements.
The developer has provided detailed financial information documenting the need for assistance
to close the financial “gap” for this project and indicated the project will not be able to proceed
to construction and be financially feasible but for some financial assistance. The DMC EDA
board and staff, as well as City of Rochester staff, thoroughly evaluated the provided financial
information and determined that up to $2.2 million in DMC support is necessary in order to
address the documented need for assistance.
The DMC EDA board of directors recommends that the DMCC designate the proposed
development as a Public Infrastructure Project and provide approximately $2.2 million in DMC
General State Infrastructure Aid. A resolution to this effect has been prepared by staff and is
included in the March 23, 2021 DMC Corp. board meeting materials for your consideration.
City Administration concurs with this recommendation and will recommend to the City Council
that the City approve this DMC investment and provide an additional $2.2 million, for a total of
more than $4.4 million in public support, to ensure the development of this project, new jobs,
additional tax revenue and additional community and social benefits.
Thank you for considering this recommendation.
Respectfully,
Jeffrey Bolton Patrick Seeb
President of the Board of Directors Executive Director
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DESTINATION MEDICAL CENTER
ECONOMIC DEVELOPMENT AGENCY
Bryk Apartments Development
Evaluation Report
March 1, 2021
EXECUTIVE SUMMARY / RECOMMENDATION
STATEMENT OF RECOMMENDATION:
Based on information provided by Dirk Erickson (the “Applicant”), Bryk on Broadway (the “Proposed Project”) aligns with the
Destination Medical Center (“DMC”) vision and is consistent with the DMC goals, objectives, and values. Development of
affordable housing units is among the highest priorities for the DMCC Board of Directors.
The following report evaluates the Proposed Project on all criteria as required by the Development Plan. Based on these
criteria, the Destination Medical Center Economic Development Agency (“DMC EDA”) would categorize the Proposed Project
as a high priority DMC project that has immense potential to help realize the vision, goals and objectives of the DMC initiative.
DMC EDA recommends DMC support for the project in the amount of $2.2 million, using the DMC general state aid
infrastructure dollars provided by the State of Minnesota.
We further recommend an on-going financial audit to ensure the project built is consistent with the project proposed and approved
and to confirm the costs of the relevant public infrastructure components of the project. It is understood that the applicant will
provide all requested documentation to facilitate this audit and work in good faith with representatives of the DMCC and DMC EDA,
or their consultants, in this process.
STATEMENT OF ELIGIBILITY:
Based upon information provided by the Applicant the Proposed Project meets the definition of “public infrastructure
project” under the DMC Act, is consistent with the DMC Development Plan, and falls within the DMC Development District
boundaries (Central Station).
PROJECT SUMMARY:
Bryk on Broadway Apartments will consist of 180 workforce residential apartments and approximately 7,260 sq ft of commercial/retail
space. A mixed income approach has been accessed and the following housing units will be provided: 50% AMI- 54 units; 60% AMI- 18
units; at or below 80% AMI - 108 units. Amenities within the proposed project include: exercise facility; board room; community
space; rooftop community space; library and flexible work from home space and an exterior green space with community
interaction. The proposed project is to be 1 floor below grade, 6 floors above grade and 143 parking stalls are included in the
project for commercial and occupant use. The Bryk on Broadway site is in the northern section of the DMC Development District
and along a zoned TOD Corridor.
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DESTINATION MEDICAL CENTER
ECONOMIC DEVELOPMENT AGENCY
RELEVANT PROJECT HIGHLIGHTS:
The following list outlines relevant project highlights for consideration:
•General Project Information
o Located in Central Station DMC Subdistrict
o Workforce Housing with a mixed income approach
o 7,260 rentable square feet
o Activates the ground floor with collaborative space and a rentable space
•Job Creation
o Approximately 26 long-term jobs
o Approximately 206 construction jobs
•Energy & Sustainability
o Project projected to meet Sustainable Building 2030 targets and have an energy use intensity of 24-25 kBtu/SF
o Project will pursue and complete certification of Green Communities
o Project will meet waste diversion, water reduction targets, electric vehicle readiness, bike facilities, among other
sustainability approaches
o Project committed to sharing utility data and participate in Rochester’s Energy Benchmarking Program for a period of
3 years
•Financial Details
o Total project cost: $39.5 million
o Tax capacity will increase between $200,000 - $300,000 per year
o Financial gap identified by the developer is $8.2 Million
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DESTINATION MEDICAL CENTER
ECONOMIC DEVELOPMENT AGENCY
EVALUATION REPORT
SECTION 1.0 PROJECT OVERVIEW
Bryk on Broadway Apartments will consist of 180 workforce residential apartments and approximately 7,000-8,000 sq ft of
commercial/retail space. A mixed income approach has been accessed and the following housing units will be provided: 50% AMI- 54
units; 60% AMI- 18 units; at or below 80%- 108 units. Amenities within the proposed project include: exercise facility; board room;
community space; rooftop community space; library and flexible work from home space and an exterior green space with
community interaction. The proposed project is to be 1 floor below grade, 6 floors above grade and 143 parking stalls will
accompany the project for commercial and occupant use. The Bryk on Broadway site is in the northern section of the DMC
Development District and along a zoned TOD Corridor.
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DESTINATION MEDICAL CENTER
ECONOMIC DEVELOPMENT AGENCY
SECTION 2.0 MINIMUM ELIGIBILITY REQUIREMENTS OF DMC ACT
Check the following that apply to the Project:
"Public Infrastructure Project"
General Infrastructure Project or
Within DMC Development District Boundaries
For a project to be eligible for DMC Funding, the project must be (1) a “public infrastructure project” and (2) within the DMC
Development District Boundaries.
Per Minnesota Statutes, Section 469.40, Subdivision 11, a “Public Infrastructure Project” is described as a project financed in part or
in whole with public money to support Mayo Clinic’s development plans, as identified in the DMCC Development Plan, the Proposed
Project would qualify as a “Public Infrastructure Project” as required by the DMC Act.
The Applicant provided a detailed list of eligible infrastructure related improvements including:
Site preparation and remediation, utility connections, streetscape improvements (sidewalk, landscaping and
public elements), vacation and utility relocations, parking infrastructure, site clean-up, DMC goal of energy
efficiency, and community accessible amenity spaces. The total cost for these improvements is in excess of the
total amount requested public assistance.
The Proposed Project is within the DMC Development District Boundaries.
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DESTINATION MEDICAL CENTER
ECONOMIC DEVELOPMENT AGENCY
SECTION 3.0 EVALUATION CRITERIA
The DMC EDA’s recommendation for the project outlined herein was formed in consideration of the following criteria:
3.1 DMC Vision, Goals and Objectives / Development Plan Strategies
3.2 Consistency with Development Plan and Other Planning Documents
3.3 Financial Viability
3.4 Consistency with Adopted Strategies, Phasing and Capital Improvement Planning
3.5 Targeted Business Enterprise Strategies
3.6 Compliance with Economic---Fiscal Goals and Objectives
3.7 Other Project Policy Considerations
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DESTINATION MEDICAL CENTER
ECONOMIC DEVELOPMENT AGENCY
SECTION 3.1 DMC VISION, GOALS AND OBJECTIVES / DEVLOPMENT PLAN STRATEGIES
Does the project include a plan for achieving the DMC vision, goals and objectives and is it critical to
driving the strategies included in the Development Plan?
Is the project consistent with the stated DMC Goals & Objectives and specifically contributing to job
creation?
•Does the project meet one or more of the goals and objectives established for the Development
Plan?
The Proposed Project is a mixed income affordable housing project located in a DMC sub-district
and within the City of Rochester transit-oriented development zoning district. North Broadway is
a future transit corridor within the City. Workforce housing is needed to support the employment
growth from the DMC project. The project provides housing near downtown retail and services,
transit access, while offering units at a variety of income levels.
Is the project consistent with the DMC Vision?
•Is the project part of a bold and aspirational concept for the future?
The Proposed Project is consistent with the DMC vision of creating a place to Live, Work, Play and
Thrive. Based on an economic analysis of housing needs for Rochester, the City needs over 1,100 units
of housing for individuals earning between 50-80% AMI by 2040. The 180 units incorporated in this
project will help build toward meeting this demand.
•Does the project fit with the principles of the vision?
With Mayo Clinic at its heart, the Destination Medical Center (DMC) initiative will be the catalyst to
position Rochester, MN as the world’s premier destination center for health and wellness; attracting
people, investment and jobs to America’s City for Health and supporting the economic growth of
Minnesota and its biosciences sector.” We believe the proposed project aligns with this core principle
as it will provide a key piece of infrastructure for jobs; an affordable place to live.
•Does the project provide a framework for growth in this sub‐district?
While the vision for the Central Station sub-district has changed because of the ongoing Integrated
Transit Study Planning, residential units are a key part of the DMC Development plan. Further,
constructing units along a transit corridor, provides an opportunity for residents to live in Rochester
without purchasing a vehicle. This development revitalizes an empty parcel along two major roadways
in downtown: Civic Center Drive and North Broadway.
Does the project build infrastructure to support growth and drive investment?
•Would the investment occur without the public infrastructure to be funded?
The Applicant states they would not be able develop this project while meeting market rate of
returns without public assistance. Based on our own independent analysis, we concur. As stated
above, the mixed income approach of this project helps provide affordable units for workers in the
downtown and community.
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DESTINATION MEDICAL CENTER
ECONOMIC DEVELOPMENT AGENCY
•Is the proposed public infrastructure solely for the benefit of the project or does it also support
the broader vision of the DMC District?
As identified in the Infrastructure Master Plan, there are six (6) key areas of infrastructure
requirements: (1) public utilities, (2) bridges, subways and skyways, (3) shared parking, (4) parcel
development, (5) civic uses, cultural uses and public amenities, and (6) technology improvement.
The Proposed Project includes elements encouraging pedestrian engagement, alternative modes
of transportation, promotes sustainable building practice, is an infill project, and dramatically
increases the tax base.
•Will the public funding accelerate private investment in the Development District or applicable
sub district?
The Proposed Project contribute 180 units of housing ranging between 50-80% AMI units. Based
on an economic study completed for the Rapid Transit Circulator, there is a need for 630 units in
this income range by 2040 in the downtown. This project helps the downtown meet ~30% of this
target. The Project is meant to act as the catalyst for future development and job growth within
the district. The mixed income approach for this project is one of the first in this community, if not the
first, and ideally this approach is mimicked by other entities to best serve the rental needs of the
Rochester community.
Does the project provide a catalyst for/or anchor for an approved strategy?
•Can the project reasonably be expected to catalyze or anchor development in one of the six sub
districts?
The Proposed Project will be the catalyst for the Central Station subdistrict and provide a key piece
of housing infrastructure. Its location is an anchor for the subdistrict and will generate momentum
for other developments – residential and otherwise.
•Can the project reasonably be expected to catalyze necessary transportation/transit
strategies?
The Proposed Project will encourage the use of alternate means of transportation with the
availability of bike storage and electric vehicle chargers. Moreover, the project is located along N
Broadway, an identified transit corridor in the City’s 2040 Comprehensive Plan. Between the facility
amenities that foster alternative transportation possibilities and its adjacency to a transit corridor will
provide a range of options for the residents to move throughout the district and City.
SECTION 3.2 CONSISTENCY WITH DEVELOPMENT PLAN, OTHER PLANNING DOCUMENTS
Does the project include a plan for achieving consistency with the Development Plan (and any updates
thereto) and other relevant planning documents?
Is the project consistent with the DMC Planning Documents?
•Is the project consistent with the current DMC Master Plan, Transportation Master Plan, and/or
Infrastructure Master Plan?
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DESTINATION MEDICAL CENTER
ECONOMIC DEVELOPMENT AGENCY
The Proposed Project fits well with the vision and principles of the DMC Master Plan. It’s also consistent
with the transportation and infrastructure master plans.
•Is the project consistent and/or supportive of the Finance Plan, Business Development Plan and
other Implementation strategies of the DMC?
Yes, a key strategy of these plans is to develop places for workers to live that are affordable. This
project expands on this possibility by providing units at a range of income levels. Further, its energy
efficiency approach will minimize the utility costs for the building occupants.
Is the project consistent with the City/County Planning Documents?
•Is the project consistent with the RDMP Plan or City Comprehensive Pan?
Yes, the proposed project is consistent with the RDMP Plan as a block suitable for redevelopment
in the hopes of achieving higher density in the transit-oriented development zoning district, and
repurposing blighted downtown lots.
•If a Transit/Transportation project, is the project consistent with the ROCOG long‐‐‐range
Transportation Plan?
The ROCOG model was utilized for DMC to determine the effects of development and
transportation system changes. One main area of the model considers the trips generated by land
uses and activities. The Proposed Project will have limited impact on the current traffic flow, in
addition the project is designed to incorporate various options for alternate transportation to
reduce the single-vehicle traffic flow in the Development District.
The Proposed parking structure, bike parking facilities, location along two major roadways, and
the retail and service options within walking distance help reinforce and carry the vision of the
DMC Integrated Transit Studies.
Does the project support sustainability principles as a core objective in the development and operations
of the project?
As part of the project’s Application for Funding, relative to Sustainable Elements, our team
acknowledges and is working towards the (9) listed goals of the DMC Plan below, including a whole-
building energy performance evaluation process.
•The Bryk on Broadway project incorporates the Destination Medical Center Design Guidelines and
Destination Medical Center Development Plan.
•The SB2030 EUI target for the building, calculated based on the schematic design, is 23 KBtu/sq.ft.-yr.
The combination of PTHP’s, ERV’s, Occupancy Sensors, high performance glass, and CO/NO2
detectors, and photovoltaic panels will achieve an EUI of 24 KBtu/sq.ft.-yr, again, based on the
schematic design energy model. Generating domestic hot water with a hybrid natural gas/heat
pump/storage system would decrease the building’s EUI by 1.5 KBtu/sq.ft.-yr. Costs and impacts of
this hybrid system are being studied. Another design element that is being studied is the Level 1
parking area. The energy model currently has this area as open air. Enclosing this parking area is also
being studied, to determine both the cost impact as well as the energy impact.
•The General Contractor is developing a Construction Waste Plan and they will be using Veit as the
waste removal contractor. Veit will sort every dumpster from the site and provide a monthly report on
all items recycled. The waste management pathway identified is Option 1a, which is a waste plan that
diverts 75% of the construction waste from the landfill. This project should be able to pick up
32
DESTINATION MEDICAL CENTER
ECONOMIC DEVELOPMENT AGENCY
additional Green Communities points by recycling all cardboard, metal, and wood. At the end of the
project, it will be possible to calculate total construction waste sent to the incinerator. Based on those
calculations, this project may pick up an additional 2 to 3 points.
•The percent of water reduction is still being calculated. The intent is to use low flow WaterSense
fixtures. Meeting the requirement of a 20% reduction seems likely based on the project’s current
approach.
•The percent irrigation reduction is still being calculated. Given the building footprint, the amount of
outdoor irrigated area is limited. The irrigation system will be efficient, incorporating WaterSense
labeled weather-based irrigation controllers.
•The site for this project was selected based on its proximity to downtown, within walking distance to
services and community resources. This site is also on a bus route in addition to being adjacent to the
City’s network of dedicated bike lanes. The covered parking area of this building will provide the
infrastructure for a select number of future EV charging stations as well as house tenant bike storage.
•Green Communities has been selected as the third-party green building rating system. After multiple
rounds of design and analysis, and according to our standard level of design, construction, and
operation, this project is well above the minimum level of compliance. A snapshot of where we are in
our design relative to the Green Communities checklist is included as part of Exhibit K.
•Ownership has agreed to participate in the City of Rochester’s Voluntary Energy Benchmarking
Program.
•Ownership is also interested in pursuing all utility incentive programs through RPU and MERC.
33
DESTINATION MEDICAL CENTER
ECONOMIC DEVELOPMENT AGENCY
SECTION 3.3 FINANCIAL VIABILITY [Form may vary based on size/scope of project]
Does the project include a plan that is financially viable?
Project Summary (e.g. concepts, detailed program, project team, etc.)
Total Project Budget
Sources of funding, demonstrating a verifiable gap that justifies DMC Funding
Project Operating Pro Forma including an overview of any operations and maintenance funding
that may be required
A Project Plan and/or Market Study supporting the demand/need for the project
Demonstration of financial capacity to support the project
Is the project supported by current market conditions and comprehensive feasibility studies?
Yes. The applicant has shared its data with the DMC EDA staff.
Does the project leverage additional private funds, maximizing the use of DMC Funds?
Yes, the proposed project leverages private funds. Of the total project cost, approximately 68% is lending and 15%
developer equity.
Is the preliminary project finance plan comprehensive and viable based upon Project Team and financial
capacity?
Yes. The financial plan presented is comprehensive and viable but only with the proposed public assistance of $4.4
million.
Is the project inclusive of an Operation and Maintenance pro forma?
Yes. The project proforma accounts for estimates of operating costs and maintenance expenses.
Is there a verifiable gap for funding based upon a reasonable return on private investment?
Yes. The DMC EDA staff have reviewed current market data related to lease rates, occupancy, and expected market
rates of return for projects of this nature there is a financial gap. One key driver of the gap is that this
development will limit rents to 50, 60 and 80% AMI levels rather than maximizing potential rents to the top of the
market.
Is the proposed operating structure sustainable?
Yes, we believe the operating structure is sustainable.
Does the Project impose any financial obligations on the DMC or City for ongoing operational or maintenance
support?
No. The City and DMC would have no on-going responsibilities for operational or maintenance support.
Has the project applicant agreed to execute the DMC Development Agreement?
If awarded TIF and DMC funding the applicant has stated that they will agree to execute the DMC Development
Agreement consistent with all expectations of the City and DMC.
34
DESTINATION MEDICAL CENTER
ECONOMIC DEVELOPMENT AGENCY
SECTION 3.4 CONSISTENCY WITH ADOPTED STRATEGIES, PHASING, AND CAPITAL IMPROVEMENT PLANNING
Is the project consistent with adopted strategies and/or one or more projects for the current implementation phase of the DMC
initiative?
Is the project part of an approved strategy and current focus? Is the project outlined as an approved strategy for the project within the
Development Plan?
The proposed project is consistent with the DMC priority surrounding transit-oriented housing development to support housing at a variety of
price points.
Is the project recommended as a focus for the particular phase of the project in the Development Plan?
The Proposed Project aligns with the needs Olmsted County has identified for various tiers of affordability for housing and is
located within the DMC District.
Is the project consistent with the DMC CIP?
•If public, is the project specifically listed in the DMC---CIP? Or is the project necessary to facilitate a DMC related
strategy?
NA
•If private, is the project otherwise compatible with the planned public improvem ents in the DMC---CIP?
Yes
SECTION 3.5 TARGETED BUSINESS ENTERPRISE STRATEGIES [Form may vary based on size/scope of project]
Does the project include a plan for achieving Local Business, S/M/WBE Project Requirements and other project
requirements, as applicable?
Has the applicant agreed to execute the DMC Development Agreement? (The terms of which are provided in form to all
applicants)?
Yes, the Applicant has agreed to execute the DMC Development Agreement, understanding DMC goals for targeted business, and
S/M/WBE requirements.
35
DESTINATION MEDICAL CENTER
ECONOMIC DEVELOPMENT AGENCY
SECTION 3.6 COMPLIANCE WITH ECONOMIC---FISCAL GOALS AND OBJECTIVES
Does the project include a plan to comply with or support the economic---fiscal goals and objectives of the DMC initiative?
Does the project generate substantial econom ic-fiscal gain based upon job projections?
Yes. The project is anticipated to provide 206 temporary construction jobs and 26 new permanent jobs.
Does the project maximize the opportunity for investment by attracting other private capital?
The project has approximately $6 million dollars in committed private equity as part of the capital stack.
Is the project required (e.g. public works) to continue to seed investment in the DMC District?
The project will add to the overall eligible costs that are certified by DEED each year, increasing the amount of available public
investment.
Does the project support the economic strategies of the project by providing civic/cultural uses and/or public amenities that
support strategic growth in the DMC Development District and/or specific business development and economic development
strategies that are adopted as part of the DMC Development Plan?
The project will add new, diverse income level housing, contribute to the sense of place along the North Broadway corridor and
meet DMC design guidelines. It is designed to meet different income levels for jobs available within downtown Rochester.
SECTION 3.7 OTHER PROJECT POLICY CONSIDERATIONS
Is the project inside the DMC Development District?
Yes.
If the project is not inside the DMC Development District, are they asking for a boundary change?
N/A
Does the project include any distinctive social and/or community benefits that are not specifically required by the DMC Act?
Bryk Apartments is consistent with the DMC vision of a mixed use walkable and transit-oriented downtown, diversifying the
housing options available within the district, densifying the downtown, and leveraging transportation assets. It is being delivered
by a developer with strong ties to Rochester.
36
Discovery Square
To: DMC Corporation Board of Directors
From: DMC Economic Development Agency
Date: March 17, 2021
Request of the DMC Corporation board of directors:
Authorize Discovery Walk construction bid documents to include add-alternatives
Direct DMC EDA and City staff to present findings and recommendation at next regular meeting.
Background:
• Discovery Walk
o Project at 100% completion of Design Documentation for base plan and Add-alternatives of
weather shelters (3) and snowmelt system.
o The three artist projects are being developed and incorporated into the design.
o Project timeline is taking shape. Anticipating an early June ‘21 groundbreaking, with work in the
2021 and 2022 construction seasons, potentially extending into the 2023 season.
o Project team working on value engineering to otherwise align with original budget.
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 with input from the
Stakeholder group. First objective is a groundbreaking series of groundbreaking activities.
o While there is strong support to eventually extend Discovery Walk to the south across 6th St SW
into Soldiers Field Park, those discussions have been deferred to a potential future project.
• 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.
• Two Discovery Square
o Topping off ceremony held March 1st. Construction continues apace, no deviations from
schedule have been reported.
o Tenant recruitment plans and discussions continue with numerous potential tenants.
• One Discovery Square
o Construction is underway for Exact Sciences on the 2nd floor.
o Discussions are underway for the final unoccupied space on the first floor.
• Entrepreneurship activities
o Discussions continue for the start-up initiative – Idea Studio.
37
• 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 on Block 6 immediately west of
One Discovery Square, with approximately 30% for tenants of One Discovery Square and Two
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.
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
begins
2021
Discovery
Walk RFP
38
C.
DESTINATION MEDICAL CENTER CORPORATION
RESOLUTION NO. -2021
Approving an Expanded Scope of Construction Bid Documents
for the Discovery Walk Project
BACKGROUND RECITALS
A.Extensive planning and effort has been devoted to the a four-block linear parkway
project along 2nd Avenue SW (“Discovery Walk”). This significant project, led by the staff of the
City of Rochester (the “City”) and the Destination Medical Center Economic Development
Agency (“EDA”) and their consultants, researched successful community health initiatives, and
pursued schematic design, detailed design, and on-going community engagement.
B.The DMCC has made significant approvals for Discovery Walk. In the 2020 Five
Year Capital Improvement Plan, (the “2020 CIP”) approved by the DMCC on September 26, 2019,
the DMCC preliminarily approved the next steps of the design of Discovery Walk in the amount
of $2,800,000. In the 2021 Five Year Capital Improvement Plan, (the “2021 CIP”), approved by
the DMCC on August 27, 2020, the DMCC preliminarily approved design and implementation of
Discovery Walk in the amount of $7,000,000. The total projected budget for Discovery Walk is
estimated to be $16,800,000. The 2020 CIP and the 2021 CIP declared Discovery Walk to be a
public infrastructure project, consistent with the Development Plan adopted by the DMCC on April
23, 2015, as amended. The DMCC reserved final approval upon final determination of scope,
costs, and availability of funds. By Resolution No. 110-2020, adopted on November 19, 2020, the
DMCC approved the design development drawings for Discovery Walk and authorized proceeding
with construction documents and bids.
C.Staff of the City and the EDA have continued to seek community input and to
evaluate options for Discovery Walk.
D.On March 1, 2021, subject to DMCC approval, the City approved additional funds
of $1,977,745 for Discovery Walk to fund a project contingency according to the City’s
contingency policy, and authorized including a snowmelt system and weather shelters as add-
alternates within the construction bid documents, subject to final approval of the award of
construction bids. The City staff report and request for City Council action is attached as Exhibit
A. The EDA Board on March 12, 2021 approved the add-alternates within the construction bid
documents, and requested review of the responses to the construction bids before considering the
add-alternates or determining a contingency amount.
E.Staff now request that the DMCC approve an expanded scope of the construction
bid documents for Discovery Walk to include add-alternates of a snowmelt system and weather
shelters. The final project and award of any bid for construction will come back to the DMCC
for approval. It is intended that staff will make a recommendation at the next DMCC meeting as
to any amendment to the 2021 CIP due to a contingency, a snowmelt system, or weather shelters.
39
RESOLUTION
NOW THEREFORE, BE IT RESOLVED, by the Destination Medical Center
Corporation Board of Directors that it approves an expanded scope of the construction bid
documents for Discovery Walk to include as add-alternates a snowmelt system and weather
shelters. The final project and award of any bid for construction for Discovery Walk remain
subject to the approval of the DMCC.
BE IT FURTHER RESOLVED, that the Board requests that the City and EDA staff
provide regular updates with respect to Discovery Walk.
BE IT FURTHER RESOLVED, that the Chair and Treasurer are hereby authorized and
directed to transmit this Resolution to the City of Rochester and to take such actions as are
necessary or convenient to effectuate this amendment to the 2021 CIP.
1340362-3.DOCX
40
REQUEST FOR COUNCIL ACTION
DISCOVERY WALK DESIGN APPROVAL AND BUDGET
AMENDMENT
MEETING DATE: ORIGINATING DEPT:
March 1, 2021 City Administration
AGENDA SECTION: PREPARED BY:
Reports and Recommendations Joshua Johnsen
COUNCIL ACTION REQUESTED:
1. Approving the design for Discovery Walk and authorizing a budget amendment of $1,977,745 to fund
project contingency for a total project budget of $18,777,745. (Budget reconciliation conditional on
DMCC Board joint approval.)
2. Approving the addition of snowmelt as an add-alternate with a conditional budget amendment
subject to bid results and DMCC Board approval of budget reconciliation of $2,171,000. (Final approval
of snowmelt to occur as part of the bid award.)
3. Approving the addition of weather shelters as an add-alternate with a conditional budget amendment
subject to bid results and DMCC Board approval of budget reconciliation of $1,089,936. (Final approval
of the weather shelters to occur as part of the bid award.)
4. Approving continued engagement on the connection and improvements to Soldier’s Field as part of
ongoing master planning, the Council’s strategic planning, and future DMC Capital Improvement Plan
prioritization.
COUNCIL PRIORITIES:
Enhance quality of life
Manage growth and development
Balance public infrastructure
POLICY CONSIDERATIONS:
Does the Council want to move forward with the Discovery Walk project including a combination of add-
alternate items, to proceed with the development of construction documents with a plan to go out for
bidding April 2021?
REPORT NARRATIVE:
Discovery Walk is a four-block linear parkway along 2nd Avenue SW that will serve pedestrians as well
as vehicular traffic. This multipurpose public space and streetscape is the first of its kind in Rochester.
The vision for this project is to create a high amenity landscaped street that prioritizes pedestrian
experience, while also replacing utility infrastructure to support future development. The project design
maintains access for bikes and vehicular access, as well as provides flexibility for programming civic
events. This linear public space is a key element of a larger downtown system of pedestrian
connections and multi-modal transportation options. At the northern end of Discovery Walk is the
proposed location for the new Rapid Transit Stations. The alignment of these projects will not only help
support transit-oriented development along the Discovery Walk corridor, but also provide a one-of-a-
kind experience for people entering our downtown. Another recent addition to our downtown transit
H.6EXHIBIT A
41
system is the recently constructed City Loop bike lane project that provides additional micro-mobility
options along 3rd Avenue and intersects Discovery Walk using the reconstructed 4th Street bike
improvements. Discovery Walk will be an experience that links Annenberg Plaza to north and Soldier’s
Field on the south and functions as an extension of Heart of the City public realm. In just a short 10-
minute walk, you can go from an urban downtown experience to the natural amenities of Soldiers Field
Park and recreational facilities - or vice versa.
Social Benefits:
Recent events have revealed the importance of flexible public spaces and integrating resilient design
when reconstructing our public realm. The impacts of Covid-19 have demonstrated the need for
rethinking the idea of private and public spaces to create outdoor retreats for all incomes and all
housing types. Recently, team members from across departments and organization have come
together to review and reconsider the areas primarily reserved for cars and reimagine them as places
for all people to safely socialize, reconnect either individually or socially, in a place that feels
welcoming. The principles identified by our community members incorporated into the design of
Discovery Walk include:
1.Feel like a park
2.Be flexible for access and events
3.Promote health, wellness and innovation
4.Connect Soldiers Field to Heart of the City
5.Provide a unique program and experience
6.Be accessible, safe and inclusive to everyone
7.Support future development
Through engagement with local stakeholders and in partnership with the Community Co-designers and
local artists, the design focus is for adaptive and responsive public space including amenities and
experiences people are seeking. Project elements and key principles were co-developed with
community members from diverse cultural, religious, mobility, mental health, and socio-economic
backgrounds. Project themes and design considerations based on engagement feedback include the
following:
1.Welcoming: public art, cultural representations
2.Accessible: going beyond ADA, consider transportation
3.Safe: lighting, programming, street safety
4.Peaceful: digital-free zones, water features
5.Interactive and adaptable: digital components
6.Diverse: variety of space types
7.Cultural considerations: prayer spaces
8.Multi-generational: infant considerations, cost-free activities
9.Long-term vitality: materials, flexibility, programming
10.Climate considerations: climate control/accommodating
These principles help produce a flexible and multi-functional space for events and coordinated
community celebrations. Future discussions will include residents, the RDA and other community
organizations to help develop activation strategies to create family focused events for everyone to
enjoy. The space is also design to promote more passive programming such as food trucks, interactive
art, and nearby food/retail, as well as places for individual reflection.
Economic Development Tool:
Beyond the positive social impacts listed above, there are also major economic benefits of well-
designed public spaces. This corridor along 2nd Ave has tremendous economic development potential
and we view Discovery Walk as lead investment to attract talent and significantly enhance our tax base.
In 2018, the Olmsted County Assessor’s office conducted an analysis of the underutilized land
surrounding Discovery Walk and estimated that these blocks could support an anticipated
$299,926,900 in new assessed property value. As part of the Transit Oriented Development study, SB
Friedman conducted a market study to identify key areas for growth. In that study, the consultants
H.6
42
identified the Discovery Square area as a critical component to the vitality and future success of the
downtown growth strategy. Since preliminary design concepts, Discovery Walk has been used as a
recruitment tool to attract new development to the Discovery Square sub-district. One Discovery
Square and Two Discovery Square are great examples of developments that utilize Discovery Walk as
marketing tool to attract tenants to Downtown Rochester.
Budget Amendment Request:
The original Discovery Walk project budget was based on preliminary design concepts created in 2018.
At the time the initial budget was established, the City had not adopted the policy that all projects must
include at least a 10% contingency on construction related items. The current cost estimates are based
on 75% construction documents, so we are currently carrying a 12% contingency of $1,977,745 to
cover additional unknowns until we get to 100% CD’s. As a result, we are asking City Council to provide
conditional approval for a budget reconciliation of $1,977,745. This amendment increases the total
base budget to $18,777,745. This recommendation will then go to the next DMCC Board special
meeting on March 25 for authorization.
Snowmelt Add-Alt: Cost Estimated at $2,171,000
Including snowmelt within the public right away offers several community and environmental benefits.
However, there tradeoff to these benefits based on the significant upfront capital costs as well as
considerable ongoing operating costs. In addition to the $2.2 million installation cost, is will cost
approximately $87,500 for annual energy consumption (energy estimate is based on preliminary design
details). City Council could support a conditional budget amendment to proceed with bidding and then
make a final approval when staff brings it back for Bid Award. This allows a decision to be based on
either favorable or unfavorable bid conditions.
A few examples of the benefits that snowmelt provides:
1.Accessibility and Safety - Sidewalks clear of snow and ice provide a more accessible passageway for
people with mobility limitations and wheel assisted devices such as wheelchairs and strollers. This also
makes our sidewalks safer by reducing the chance of ice buildup preventing slip and falls.
2.Environmental Benefits - The snowmelt system contemplated for Discovery Walk would utilize excess
steam from the Franklin Heating station to heat the system. This would cut down on the use of salt in
the winter reducing the amount of chloride runoff into our storm-water system and then into our rivers
and streams.
3.Longevity - Snowmelt reduces the need for maintenance on the sidewalks for snow and ice removal.
Less reliance on corrosive salts also reduces deterioration of the hardscape and increases the health of
surrounding plants and trees.
Weather Structures Add-Alt: Cost Estimated at $1,089,936
Due to the lack of subway and skyway connectivity in this area of downtown, there was considerable
discussion on how we make this corridor comfortable and inviting during Minnesota’s extreme seasons.
The concept proposal is to construct freestanding weather structures that are open and inviting, but
also provide shade and protection from the elements. Weather shelter features include additional
comfort amenities such as built-in heating elements and misting components to provide a cooling effect.
A recent comment provided at a stakeholder meeting was that the project area can feel quite open to
the elements and the weather structures provide a desirable sense of human scale that make the
spaces more inviting to come together or find solitude. City Council could support a conditional budget
amendment to proceed with bidding and then make a final approval when we bring it back for Bid
Award. This allows a decision to be based on either favorable or unfavorable bid conditions.
Soldier’s Field Connection: Cost Estimated at $4,040,310
A consistent theme expressed by the community during engagement was that Discovery Walk should
not terminate at 6th Street, but extend into Soldier’s Field to create a true connection. Based on that
feedback, we included a design scope for northern Soldiers Field within the Discovery Walk project
scope. At this time, we are recommending that we do not proceed with construction as part of the
Discover Walk project. In the meantime, we will continue to advocate for the project and receive
community feedback on the design. We will also continue to work with the DMCC Board and the Parks
Board to find the right time to bring this project forward.
H.6
43
Operation and Maintenance:
An important consideration beyond the upfront capital improvement costs, are the ongoing operation
and maintenance expenses (O&M). Based on early estimates, the O&M could cost around $370,000
annually. This estimate includes a wide range of potential costs from administrative costs, capital
replacements funds, planting replacements and maintenance, etc. Another consideration is the
additional expenses related to energy costs associated with the snowmelt system and weather
structures. Annual expense for electricity and energy for the snowmelt system and portions of the
weather shelters are estimated at around $123,000.
-A recommendation for Operation and Maintenance financing will be presented to the City Council in
conjunction with the authorization to advertise for bids to receive Council approval.
COMMUNITY ENGAGEMENT:
-(2015) DMC Master Plan: Discovery Walk was identified as a crucial infrastructure and public realm
project in the 2015 DMC Master Plan.
-(2017) Schematic Design Charrettes: Community participants met to inform the design and programing
for initial schematic design.
-(2019 - Ongoing) Discovery Walk Stakeholder Meetings: Beginning in May 2019, the DW Project team
has met with many of the area stakeholders to engage in project discussions. The project team
currently facilitates monthly meetings with civic & business leaders & community members.
-(2019) Discovery Walk Experience: As part of the DMC annual meeting, Discovery Walk was
prototyped with temporary art & activities. Volunteers also surveyed participants to receive feedback on
elements that people would like to see integrated into the design.
-(2020 Ongoing) Community Co-Designer Initiative: Initially part of the America’s City for Health
Initiative, a group of community Co-Designers have been engaged in the project providing unique
perspectives from their diverse backgrounds.
-(2020 - Ongoing) Local Community Artist Team: A selection process including 11 local artists took
place to assemble a final team of three local artists to participate in the design of the project and put
their unique touch on it.
-(2020) Discovery Walk - Walk: The Project Team led a walk with community members to experience
Discovery Walk and discuss its potential.
-Links to Engagement Videos:
o <https://dmc.mn/destination-medical-center-creates-equitable-design-process-for-public-
spaces/>
o <https://dmc.mn/envisioning-the-future-of-discovery-walk/>
ALTERNATIVE ACTION(S):
1.The Council could decide not to approve additional DMC funds for the project and direct staff to value
manage the project within original project budget.
2.The Council could decide to proceed with a combination of base project and add-alternates by
recommending additional allocation of DMC funding to be approved by the DMCC Board.
3.The council could decide not to move forward with Discovery Walk at this time.
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
Past engagement and simultaneous decisions by DMCC Board and City Council include:
2015 - DMC Development Plan Adopted including initial vision for Discovery Walk
2017 - Approval for Discovery Walk Schematic Design Phase
2018 - Discovery Walk Schematic Design Phase Approved
2019 - Approval for Discovery Walk to progress to Design Development
2020 - City Council Approval of Scope of Services
2020 - City Council Approval of Owner’s Representative and Cost Estimating Services
2021 - DMCC Board Project Update and Design Approval
2021 -Presentation and feedback from Pedestrian and Bicycle Advisory Committee
2021 - Ongoing City Council and DMCC Board Feedback and Listening Sessions
H.6
44
FISCAL AND RESOURCE IMPACT:
Funding, of $16,800,000 has been included in the DMC Capital Improvement Program for 2020-2023
(J#8904). Budget amendments for the base project and add-alt costs would require further allocated
DMC funding. An identified potential funding source is the use of unallocated DMC Capital
funding/General State Infrastructure Aid (GSIA). Any repurposing of DMC funds is contingent on DMCC
Board approval.
-Base Project contingency and escalation: $1,977,745
-Snow-melt system: $2,171,000
-Weather structures: $1,089,936
-Soldiers Field Connection: $4,040,310
ATTACHMENTS:
2021-03-01-DiscoveryWalkPresentation(2)Reduced
H.6
45
DISCOVER NATURE / DISCOVER INNOVATION / DISCOVER COMMUNITY / DISCOVER PLAY
Knutson
Kimley-Horn
Latent Design
White Space
Community Co-Designers
Artist Team
EZ Fabricating
DISCOVERY WALK
H.6.a
46
PLANNING FOR THE FUTURE BY CREATING A CONNECTED CITY!
DISCOVERY WALK
St. Mary’s Place
Central Station
DiscoverySquare
Annenberg PlazaPeace Plaza
Gonda Building
•Connecting people to the outdoors
•Connecting Mayo and 2nd Street to Soldiers Field
•Connecting people through improved public transportation
•Connecting our community through new pedestrian friendly public spaces
•Connecting our community through a new and improved trail system - City Loop
•Connecting our community to the Zumbro River
Future BRT line
One & Two Discovery Square Buildings
Hilton & Guggenheim Buildings
Heart of the City: Phase 1
Heart of the City: Phase 2
Discovery Walk
City Loop Trail
People’s Food Co-op
Zumbro River
YMCA
Soldiers Field Park
UMR and Recreation
DowntownWaterfront
H.6.a
47
SOLDIERS FIELD
HILTON
BUILDING
FRANKLIN
ENERGY
PLANT
STABILE
BUILDING
ZUMBRO RIVER
1.Feel like a park
2.Be flexible for access + events
3.Promote health + wellness + innovation
4. Connect Soldiers Field, Heart of the City,Mayo Clinic, and 2nd Street
5.Provide a unique program + experience
6.Be accessible and inclusive to everyone
7.Support future development
DISCOVERY WALK WILL...
PROJECT GOALS
DISCOVERY WALK
H.6.a
48
CONNECTING IT ALL IN A 10 MINUTE WALK.
2N
D
A
V
E
SOLDIERS
FIELD
PARK
Gonda
Building
One and Two
Discovery
Square
Soldiers Field Park
Zumbro River
Mayo Clinic and Annenberg Plaza
EXISTING ASSETS PROPOSED ASSETS
One and Two Discovery Square
A welcoming and accessible gateway
A new food truck plaza with outdoor dining
A pedestrian focused street for connecting
Soldiers Field new gardens and public art by local artists
DISCOVERY WALK
H.6.a
49
View of 2nd Ave looking south from 5th St
DISCOVERY WALK HAS A LANDSCAPE THAT CELEBRATES THE LOCAL ECOLOGY
WHILE PROVIDING PLACES TO SIT, DINE, WALK, AND CONNECT WITH EACH OTHER.
DISCOVERY WALK
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DISCOVERY WALK BUILDS UPON INVESTMENT IN A NEW INNOVATION DISTRICT,
PROVIDING A NETWORK OF OUTDOOR WORK AND PLAY SPACES TO SUPPORT
THOSE WHO WORK AND VISIT.
View of 2nd Ave looking north from 5th St
DISCOVERY WALK
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DISCOVERY WALK CREATES A NEW CENTRAL FOOD TRUCK PLAZA FEATURING
LOCAL CUISINE AND UNIQUE OUTDOOR PUBLIC DINING SPACES SURROUNDED BY
GARDENS.
View of 2nd Ave looking north from 4th St
DISCOVERY WALK
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INVESTING IN A NEW NETWORK OF UNDERGROUND SERVICES TO MAKE
THE CITY RUN.
View of 2nd Ave looking south from 2nd St
ELECTRICAL DUCT BANKS
STORMWATER STRUCTURES
SANITARY SEWER
TELECOMMUNICATIONS / FIBER OPTICS
HOT AND CHILLED WATER
ELECTRIC SUPPLY LINES
GAS LINES
SNOW MELT SYSTEM
DISCOVERY WALK
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DISCOVERY WALK I COMMUNITY C0-DESIGNERS
DISCOVERY WALK
•Represent diverse communities
•Develop ideas for inclusive design
•Develop ideas for inclusive programming
•Ensure accessible and welcoming spaces
•Create unique experiences
•Create a sense of cultural belonging
•Create places that encourage health
ROCHESTER IS MODELING A NEW AND INFORMED DESIGN PROCESS BY
COLLABORATING WITH A TALENTED AND KNOWLEDGABLE TEAM OF
LOCAL CO-DESIGNERS.
Communty engagements with the broader community and the stakeholder group have informed the project
since it started in 2017.
DISCOVERY WALK
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Zoe Cinel
Zoe Cinel is an interdisciplinary artist and curator. Her interdisciplinary art practice is relational, participatory, and political and uses art to
help people feel ownership of the public sphere, with the ultimate goal to connect them.
Cinel's background is in industrial design and fine arts, while her most current work focuses on public art, performance, new media, and
deals with issues around global migration, multicultural identity and national borders. She often works collaboratively in her hometown,
Florence, Italy, and in the US, as part of the artist collective CarryOn Homes.
Cinel is used to living life on the virtual edge. “We exist in a world that is augmented constantly by the presence of screens,” she said. “We
don’t even notice them anymore —it’s just something we have to deal with.” To her, screens have become an element of the human urban
landscape and the way people interact. She uses technology to stay in touch with friends and family back in Italy. For her, reclaiming
technology is a community-building tool —and it all infiltrates her practice. Cinel is currently teaching live performance and digital media at
Carleton College. She’s also working on “Can’t Take My Eyes Out of You,” a campy short film about the surveillance of screens, set to the
tune of “Can’t Take My Eyes Off of You.” In the film, instead of having real objects in space, she’s going to real places and putting
augmented-reality objects there —computer screens pop up on tree branches, for example. Eventually, people will be able to go to the
actual locations and view scenes from the movie through the augmented-reality app Aero.
Sophia Chai
Sophia Chai is a Korean-American artist based in Rochester, MN. Chai received her M.F.A. in photography from the University of Illinois at
Chicago and her B.A. in chemistry from the University of Chicago. Before relocating to Rochester in 2017 from Brooklyn, Chai has shown
her work at various venues in New York City, including Trestle Projects, The Bronx Museum of the Arts, The Knockdown Center,A.I.R.
Gallery, and TSA Gallery amongst others. Her last solo show was at 106 Green Gallery in Brooklyn, New York in 2016. Chai is a 2019
recipient of the SEMAC (Southeastern Minnesota Arts Council) grant for advancing artists and a 2019/20 MCAD-Jerome Foundation Fellow
for Early Career Artists.
As a teenager I immigrated to the US from South Korea with my family and having to negotiate different languages and cultural barriers at
that adolescent age has been a significant experience in shaping my identity. The feelings of contradiction, confusion, and ambivalence that
my work can incite can be seen as a metaphor for that unsettling experience. I have always made my work out of a need to communicate
what is not possible in words. What compels me to photography is the interplay, or push and pull, between what one can control vs. the
incidental. While the initial experience for the viewer of my work may be the illusory effect of the photograph, I am more interested in letting
the viewer seeing the process with which how the photographs are made. Moreover, the photographs are enlarged to a size that
approximates the actual scale, thus allowing all the marks of the hand to be visible and palpable.
AYUB HAJI OMAR
I am a multicultural artist with a wide perspective on a lot of matters, from religion to
immigration. I have traveled the world and been all over the place, experiencing different
cultures, customs and ways of life. It really gave me an idea of how people are living outside of
the United States and gave me a sense of where I fit in the world. It added a lot to my
personality and the way I perceive the world and everything around me. It made me more
conscientious, caring, and more confident and aware. Which, by default, changed the way I
make art.
I try to be a voice for those who are being silenced through injustice. I address topics that
people misinterpret. I try to show people that some of their fears are artificial, but some are
strikingly true. As an artist, I try to bridge the gap between the misunderstood and those who try
to understand them.
Zoe Cinel
Originally from Italy, Zoe is an
interdisciplinary artist and curator. Her
interdisciplinary art practice is relational,
participatory, and political and uses art to
help people feel ownership of the public
sphere, with the ultimate goal to connect
them.
Sophia Chai
Shaped by her experience immigrating
to the U.S. from South Korea as a
teenager as well as years in New York,
Sophia’s work often explores these
feelings of contradiction, confusion,
and ambivalence as a metaphor for that
unsettling experience.
Ayub HajiOmar
Ayub is a multicultural artist particularly
influenced by his background and travels.
As an artist, he tries to bridge the gap
between the misunderstood and those
who try to understand them.
LOCAL ARTISTS WITH GLOBAL PERSPECTIVES CREATE INTEGRATED PUBLIC ART.
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Art: PUNCTUATED ASYMPTOTE, by Sophia Chai
ARTIST STATEMENT:
Punctuated Asymptote is an installation of pedestrian lights in bright blue, spanning the entire length of Discovery Walk. All the lights have
different lengths, yet reaching the same height from the sea level, bringing awareness to both social equity and acknowledging the undulating
topography of the Driftless Landscape.
inspiration photo
Bodies in Space by Asuka Goto
DISCOVERY WALK
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Art: POEMS IN THE PARK, by Ayub HajiOmar
ARTIST STATEMENT:
Using language and light, Poems in the Park is a collection of uplifting poems that creates a dialogue with those passing by.
DISCOVERY WALK
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Art: PHOTOSYNTHESIS by Zoe Cinel
ARTIST STATEMENT:
Powered by human interaction, Photosynthesis is a light installation on the 200 block of Discovery Walk. Inspired by the natural phenomenon of
photosynthesis and by grounding practices of breathing, this artwork has the goal to welcome and attract visitors and the community to downtown
Rochester and to connect people with themselves, with others and with the city.
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SEATING: 65 LF
LANDSCAPING: 7,000 SF
PUBLIC SPACE: 2,000 SF
TREES: 39
WEATHER SHELTER AREAS: 0 SF
SEATING: 1,000+ LF
LANDSCAPING: 28,000 SF
PUBLIC SPACE: 30,000 SF
TREES: 300+
WEATHER SHELTER: 2,800 SF
EXISTING PROPOSED
View of existing 2nd Ave looking north View of proposed 2nd Ave looking north
DISCOVERY WALK
THE DISCOVERY WALK TRANSFORMATION WILL PROMOTE WELLNESS, THE LOCAL
ENVIRONMENT, AND OUR UNIQUE COMMUNITY.
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•Glass roof protects from rain andsnow
•Wood screen to provide dappledshade
•Cooling system during the summer
•Heaters during the winter
•Integrated bench seating
•Swings (tethered) for fun!
•Integrated lighting
•Power outlets (work outside!)
DISCOVERY WALK
DISCOVERY WALK PROVIDES A SERIES OF WEATHER SHELTERS THAT EXTEND THE
LENGTH OF TIME PEOPLE WILL WORK, DINE, AND PLAY OUTDOORS TOGETHER.
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CONNECTING DISCOVERY WALK TO SOLDIERS FIELD AND THE ZUMBRO RIVER
THROUGH NEW GARDENS AND LOCAL ART INSTALLATIONS.
View of Soldiers Field Park looking south from 6th St
DISCOVERY WALK
CONCEPTUAL DESIGN
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SNOW MELT SYSTEMS MAKE PUBLIC SPACES SAFE AND SUSTAINABLE
DISCOVERY WALK
• Create safer sidewalkconditions for all & maintainsADA accessible routes
• Reduces salt and chemicalpollution from ending up in theZumbro River
• Sidewalks last longer
• Healthier for plants in thestreetscape
Proposed snow melt in Discovery Walk
Existing snow melt in Rochester
Gonda
One and
Two DS
6th Street
4th Street
2nd Street
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DISCOVERY WALK
POSSIBLE PROJECT INCLUSIONS
Soldiers Field North Connects Discovery
Walk to the Zumbro River
Snow melt in sidewalks create a safer and
environmentally friendly tomorrow
Weather shelters for outdoor work
and play through all seasons
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DISCOVERY WALK TIMELINE
DISCOVERY WALK
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
2020
18 weeks
APPROVALS & PROCESS
50%DD 75%CD
4 wks
to summer 2022
20 weeks
Board Approvals for CDs Council Approval for Bidding
Bid Award
2021
Development & Documentation
2015 - DMC Development Plan adopted
2017 - Approval for Discovery Walk Schematic Design Phase
2018 - Discovery Walk Schematic Design Phase approved
2019 - Approval for Discovery Walk to progress to Design Development - Bidding phases
2020 - Design Development began
Construction Documentation
Bidding
Construction
Communications / Engagement
Cost Estimating
2023
Since 2015 the DMCC Board and City of Rochester have collaborated to create the vision and funding
for Discovery Walk to become a reality.
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DISCOVERY WALK
DISCOVERY WALK - INVESTING IN OUR FUTURE
Requested Council Actions
The request in front of council is to adopt and endorse project final design.
Staff would like direction on the following motions:
Motion #1: Approve the Design for Discovery Walk and authorize a budget amendment of $1,977,745 to fund project contingency for a total project budget of $18,777,745. Budget reconciliation conditional on DMCC Board joint approval.
Motion #2: Approve motion to add snowmelt as an add-alternate with a conditional budget amendment subject to bid results and DMCC Board approval of budget reconciliation of $2,171,000. Final approval of snowmelt to occur as part of the bid award.
Motion #3: Approve motion to add weather shelters as an add-alternate with a conditional budget amendment subject to bid results and DMCC Board approval of budget reconciliation of $1,089,936. Final approval of the weather shelters to occur as part of the bid award.
Motion #4: Motion to support continued engagement on the connection and improvements to Soldier’s Field as part of ongoing master planning, the Council’s strategic planning, and future DMC Capital Improvement Plan prioritization.
Council endorsed budget adjustments are contingent on DMCC Board authorization at a March 25th
Special Meeting.
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South-of-Downtown Waterfront
To: DMC Corporation Board of Directors
From: DMC Economic Development Agency
Date: March 17, 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).
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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
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.
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District Energy Updates
To: DMC Corporation Board of Directors
From: DMC Economic Development Agency
Date: March 17, 2021
Request of the DMC Corporation Board of Directors:
• Understand action taken since 2020 on Downtown District Energy System
• Recognize the next steps for the Downtown District Energy System Project
• Provide guidance on next steps and consideration of additional financial support
Background:
In 2015 DMCC adopted the DMC Development Plan where the principles of sustainability planning are
interwoven throughout, through an integrated mix of medium-to-high density uses, integrated live-work
environments and green/park space features throughout the downtown. Subsequent action by the DMCC
board further reinforces its commitment energy, environmental sustainability and the evaluation and
strategic pursuit of district energy systems (DES):
• 2015: DMC Sustainability Goals Adoption within DMC Development Plan
• 2015: Sustainable Energy Options Report Accepted by DMCC
• 2016: District Energy System Resolution Passed by DMCC
• 2019: EIC Strategic Energy Project Plan Approval by DMCC
Recognizing the role that a downtown district energy system could have on realizing its energy
consumption and carbon footprint reduction goals, DMCC authorized $2 million in the 2021 and 2022
Capital Improvement Program, building off prior investment in preliminary engineering studies in 2019
and 2020.
Current Findings:
• Olmsted County’s Waste to Energy Facility Steam Line will be decommissioned in October 2023
• Olmsted County decided to move forward with a building-based heating and cooling system and
not participate in a district energy opportunity
• RPU has created a business plan for the DES including it is anticipated operating costs and utility
rates to customers
• RPU Board supported an approach to construct, operate and maintain a DES pending City Council
direction
• Rochester City Council in March 2021 had a study session summarizing the work, progress, and
next steps for the DES opportunity
Next Steps:
• The City of Rochester is discussing an extension of the steam line decommission date with
Olmsted County
• The Project Team is conducting further analysis of the DES’ impact and opportunity for current
and potential private development connections
• DMC EDA Staff plan to discuss the potential need to consider additional financial support of the
DES project at the May 20th DMCC Board meeting
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Approvals, milestones, and decision points:
November 2020
CIP Approval of
$2M for DES
March 2021
Downtown DES
Progress Update
May 2021
Downtown DES
Discussion of
Additional
Financial Support
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