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HomeMy WebLinkAbout9/30/2021 DMCC Board of Directors Meeting - Agenda and Meeting Packet Destination Medical Center Corporation Board of Directors Meeting Thursday, September 30, 2021 9:30 A.M. 1 DESTINATION MEDICAL CENTER CORPORATION (DMCC) BOARD MEETING Thursday, September 30, 2021 9:30 A.M. PLEASE NOTE: THE MAYO CIVIC CENTER REQUIRES FACE COVERINGS https://www.mayociviccenter.com To View the Meeting Remotely: https://video.ibm.com/channel/destination-medical-center AGENDA PAGE I. Call to Order II. Roll Call III. Approval of Agenda 1 IV. Approval of Minutes: May 20, 2021 3 V. Public Comment VI. Chair’s Report VII. Consent Agenda A. DMCC Insurance: League of Minnesota Cities Insurance Trust (LMCIT) Waiver: Motion: Elect not to waive statutory tort limits 7 B. 2022 Regular Meeting Schedule Resolution A: Approving the 2022 Regular Meeting Schedule 9 C. DMCC 2021 Budget: Year to Date Update 11 VIII. DMCC Form 990; Minnesota Annual Charitable Organization Report (Presenter: Craig Popenhagen, CliftonLarsonAllen) Resolution B: Approving the 2021 State of Minnesota Charitable Organization Report and 2020 Form 990 15 IX. Metrics 2 X. 2022 DMCC Funding Request 65 A. Capital Improvement Plan 66 B. 2022 EDA & City Staff Workplan and Budget 101 C. 2022 DMCC Budget 109 D. Working Capital Loan Resolution C: Approving the 2022 DMCC Funding Request and Authorizing Transmittal 111 XI. Project Discussion (City of Rochester, EDA) A. Discovery Square 133 Resolution D: Providing Final Approval for the Expenditure of Funds from the 2021 and 2022 CIP Budget for the Discovery Walk Project 135 B. Mobility 137 C. Accessing DMC Funding 139 XII. Project Updates (EDA) A. Heart of the City 141 B. Downtown Retail Recruitment Strategy C. Riverfront Reimagined 144 D. Rapid Transit Corridor Development 147 E. DEED Main Street Grant Application 148 F. Bryk Project 149 G. District Energy 151 H. McKnight Foundation Grants 153 I. Active Private Development Discussions 155 XIII. Meeting Schedule A. Next Regular Meeting: November 4, 2021 at 9:30 A.M. XIV. Adjournment   DESTINATION MEDICAL CENTER CORPORATION (DMCC) BOARD MEETING Thursday, May 20, 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, Michael Dougherty, Pamela Wheelock, and Council President Brooke Carlson were present. III. Approval of Agenda. Commissioner Bier moved approval of the agenda. Ms. Wheelock seconded. Ayes: Commissioner Bier, Mr. Campbell, Council President Carlson, Mr. Dougherty, Mayor Norton, Chair Rybak, Ms. Wheelock, Mr. Williams. Nays: None. IV. Approval of Minutes: March 23, 2021. Mr. Campbell moved approval of the Minutes. Commissioner Bier seconded. Ayes: Commissioner Bier, Mr. Campbell, Council President Carlson, Mr. Dougherty, 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 the recent election of Dr. Clark Otley to the office of EDA board president and thanked outgoing EDA board president Jeff Bolton for his term of service. VII. Election and Appointment of Officers. Chair Rybak opened the floor for Board officer nominations, while also noting that the Board Chair must be chosen from among the Board’s state appointees and that the Secretary and Assistant Treasurer are positions appointed by the Chair. Ms. Wheelock nominated R.T. Rybak for Chair, Mayor Kim Norton for Vice Chair, and Commissioner Jim Bier as Treasurer. Council President Carlson seconded the nomination. Ayes: Commissioner Bier, Mr. Campbell, Council President Carlson, Mr. Dougherty, Mayor Norton, Chair Rybak, Ms. Wheelock, Mr. Williams. Nays: None. 3 Chair Rybak appointed Ms. Wheelock to the office of Board Secretary and Dale Martinson, City of Rochester Finance Director, to the office of Assistant Board Treasurer. VIII. DMC Metrics. Patrick Seeb, EDA Executive Director, presented an update on local COVID-19 vaccination strategies, noting that widespread vaccinations were a key economic and community recovery milestone in the economic impact analysis the EDA produced in mid-2020. Rochester and Olmsted County vaccination rates exceed statewide averages. The EDA and community partners are monitoring other recovery metrics, including office and hotel occupancy rates, sales tax revenue, and visitation. Proactive recovery strategies include downtown programming, retail space activation, hybrid conference hosting, and the repurposing of commercial office space. IX. Consent Agenda. A. Resolution A: Authorizing an Extension to an Agreement with Risk Management Resources, Inc. Ms. Wheelock moved approval of Resolution A. Mayor Norton seconded. Ayes: Commissioner Bier, Mr. Campbell, Council President Carlson, Mr. Dougherty, Mayor Norton, Chair Rybak, Ms. Wheelock, Mr. Williams. Nays: None. B. DMCC 2021 Budget Year-to-Date Update. Ms. Wheelock moved to receive and file the 2021 Year-to-Date Update. Mr. Williams seconded. Ms. Wheelock asked EDA, DMCC, and City staff to refine the report of DMC expenditures so that the Board may clearly understand how the various projects and expenses relate to approved DMC budgets, priorities, and projects. Other formatting improvements were suggested, including the possibility of seeing projects grouped by type (sewer, streets, etc.) and by time period (current approved project, possible future project, delayed project, etc.). Ayes: Commissioner Bier, Mr. Campbell, Council President Carlson, Mr. Dougherty, Mayor Norton, Chair Rybak, Ms. Wheelock, Mr. Williams. Nays: None. X. DMCC Audit for Year Ending December 31, 2020. Craig Popenhagen of CliftonLarsonAllen presented the audited financial statements. No internal control or Minnesota legal compliance findings were reported and there were no audit findings or disagreements with management. Commissioner Bier noted that he conducted an exit interview with the auditing firm and moved approval. Ms. Wheelock seconded. Ayes: Commissioner Bier, Mr. Campbell, Council President Carlson, Mr. Dougherty, Mayor Norton, Chair Rybak, Ms. Wheelock, Mr. Williams. Nays: None. 4 XI. Project Approvals A. South of Downtown Waterfront Small Area Plan. Cindy Steinhauser, City of Rochester Deputy Administrator, provided a brief overview of the plan, which was presented in greater detail at the March 2021 DMCC Board meeting and recently unanimously accepted by the Rochester City Council. Mr. Campbell moved to receive and file the plan. Mr. Dougherty seconded. Ayes: Commissioner Bier, Mr. Campbell, Council President Carlson, Mr. Dougherty, Mayor Norton, Chair Rybak, Ms. Wheelock, Mr. Williams. Nays: None. XII. Project Updates. A. Heart of the City. Jamie Rothe, EDA Experience and Engagement Director, provided several construction updates, noting that several portions of the redesigned public space are open for pedestrian and vehicle use. Ms. Rothe also noted that the principles of the “Business Forward” strategy used during construction are being applied to Discovery Walk, the reconstruction of North Broadway Avenue, and first phase of the Rochester rapid transit project. EDA staff are currently working through final project details and developing an “inaugural year” strategy that invites community members and stakeholders to visit and engage with the Heart of the City public space. B. Discovery Square. Chris Schad, EDA Business Development Director, provided updates on economic and public space development, including the full leasing of One Discovery Square and the announcement of the expansion of Mayo Clinic’s Kellen research building. Construction sequencing for Discovery Walk was reviewed with the Board, with staff noting that the project will now last only two construction seasons (spring 2022-late 2023), instead of three construction seasons. Construction bids are expected to be requested in September, 2021. C. Transportation. Catherine Malmberg, EDA Interim Economic Development Director, previewed upcoming key decisions related to the first phase of the rapid transit project, including the finalization of the operating agreement, station design, and the west transit village concept. Chair Rybak expressed a desire to include private developers and investors in the transit village development process to ensure housing, retail and other amenities are financed and developed. XIII. 2022 DMCC Funding Request: Priorities, Process and Timeline. Dr. Otley and Mr. Seeb introduced this discussion topic, noting that the DMCC Board is being asked to affirm DMC budget priorities and identify Board volunteers to advise staff during the drafting of the 2022 budget and work plan. Ms. Malmberg continued the report, reviewing the uses of DMC funding allowed in state statutes, the responsibilities of the EDA, and the forecasted availability and allocation of DMC funds through 2024. Mayor Norton asked staff to confirm the source of the $250,000 approved for 2020 COVID- 19 recovery and resiliency efforts. Ms. Malmberg also reviewed DMC goals, guiding 5 principles, agreed-upon priorities, key DMC partners and stakeholders, and the components of the annual funding request. Ms. Wheelock, Mayor Norton, and Council President Carlson volunteered to advise staff. Chair Rybak invited other Board members to participate as their schedules allow. Mr. Williams emphasized the need to engage the community in budget and prioritization decisions. XIV. EDA Updates. A. Downtown Retail Recruitment Strategy. Mr. Seeb and Mr. Schad described the process and plan to create a strategy intended to fill downtown storefronts with a sustainable mix of businesses. The plan includes efforts to secure interim and long-term uses for available space. Chair Rybak suggested that local entrepreneurs could benefit from the availability of local business grants; Ms. Wheelock noted that the DMCC Board ought to understand the role of other stakeholders, including the City of Rochester, in supporting local business. B. McKnight Grant. Kevin Bright, EDA Energy and Sustainability Director, reported that the EDA received $335,000 to support equitable community development and sustainability efforts. Ms. Wheelock noted that she was not involved in the decision to award these grants during her tenure as interim President of the McKnight Foundation. XV. Adjournment. Chair Rybak adjourned the meeting. 1370010-3.DOCX 6 LIABILITY COVERAGE – WAIVER FORM Members who obtain liability coverage through the League of Minnesota Cities Insurance Trust (LMCIT) must complete and return this form to LMCIT before the member’s effective date of coverage. Return completed form to your underwriter or email to pstech@lmc.org. The decision to waive or not waive the statutory tort limits must be made annually by the member’s governing body, in consultation with its attorney if necessary. Members who obtain liability coverage from LMCIT must decide whether to waive the statutory tort liability limits to the extent of the coverage purchased. The decision has the following effects: • If the member does not waive the statutory tort limits, an individual claimant could recover no more than $500,000 on any claim to which the statutory tort limits apply. The total all claimants could recover for a single occurrence to which the statutory tort limits apply would be limited to $1,500,000. These statutory tort limits would apply regardless of whether the member purchases the optional LMCIT excess liability coverage. • If the member waives the statutory tort limits and does not purchase excess liability coverage, a single claimant could recover up to $2,000,000 for a single occurrence (under the waive option, the tort cap liability limits are only waived to the extent of the member’s liability coverage limits, and the LMCIT per occurrence limit is $2,000,000). The total all claimants could recover for a single occurrence to which the statutory tort limits apply would also be limited to $2,000,000, regardless of the number of claimants. • If the member waives the statutory tort limits and purchases excess liability coverage, a single claimant could potentially recover an amount up to the limit of the coverage purchased. The total all claimants could recover for a single occurrence to which the statutory tort limits apply would also be limited to the amount of coverage purchased, regardless of the number of claimants. Claims to which the statutory municipal tort limits do not apply are not affected by this decision. 7 2 LMCIT Member Name: __________________________________________________________________________ Check one: o The member DOES NOT WAIVE the monetary limits on municipal tort liability established by Minn. Stat. § 466.04. o The member WAIVES the monetary limits on municipal tort liability established by Minn. Stat. § 466.04, to the extent of the limits of the liability coverage obtained from LMCIT. Date of member’s governing body meeting: _____________________________________________ Signature: Position: ________________________________ 8 A. DESTINATION MEDICAL CENTER CORPORATION RESOLUTION NO. ___-2021 Approving the 2022 DMCC Board Regular Meeting Schedule BACKGROUND RECITALS The Minnesota Open Meeting Law provides that a schedule of the regular meetings of a public body shall be kept on file at its primary office. If a public body decides to hold a regular meeting at a time or place different from the time or place stated in its schedule of regular meetings, it shall give the same notice of the meeting that is provided for a special meeting. RESOLUTION NOW, THEREFORE, BE IT RESOLVED, by the Destination Medical Center Corporation (“DMCC”) Board of Directors that the schedule of regular meetings for 2022 is set forth below. The meetings will begin at 9:30 a.m., and the location will be at the Mayo Civic Center. The Secretary is directed to post the 2022 schedule on the website and to post notification by such other means as she determines necessary and appropriate. Date Time Location Thursday, February 3, 2022 9:30 a.m. Mayo Civic Center Thursday, May 26, 2022 9:30 a.m. Mayo Civic Center Thursday, September 22, 2022 9:30 a.m. Mayo Civic Center Thursday, November 10, 2022 9:30 a.m. Mayo Civic Center 1366380-3.DOCX 9 10 TO: Jim Bier, Treasurer Kathleen Lamb, Attorney FR: Dale Martinson, Assistant Treasurer Date: September 22, 2021 RE: August 2021 DMCC Budget Summary The attached budget summary of activity through August of 2021 reflects total year-to-date DMCC operating expenditures of $ 1,180,959 of the $2.5 million approved 2021 budget. The remaining amount unspent represents 53% of the total budget with four months, or 33% of the year remaining. An additional payment request totaling $148,248 has been submitted by the DMC EDA in September, but not yet paid. The second and third pages of this summary provides a listing of DMCC authorized projects managed by the City of Rochester. This part of the report is still a “work in progress”, but based upon prior board comments, we have tried to categorize the project spend in accordance with program budgets, improve wording of project titles, and consolidate some of the small project spend. Approximately $14.5 million has been spent on these projects through April of this year with the majority spent on Heart of the City construction and Discovery Walk and Rapid Transit design work. Total life-to-date expenditures on these projects is just over $79.1 million. Please feel free to contact me with any questions or concerns. 11 Destination Medical Center Corporation Financial Budget Summary August 31, 2021 2021 Approved Current Month August 2021 Amount Percent Approved Budget August 2021 Year To Date Remaining Remaining General Administrative Expenses 42,750 1,601 1,605 41,145 96% Professional Services 206,000 16,518 83,293 122,707 60% Insurance and Bonds 20,000 12,025 7,975 40% - - - Subtotal DMCC 268,750 18,119 96,923 171,827 64% Third Party Costs - DMC EDA Payroll, Staff, Administration & Benefits-EDA 997,931 50,389 533,921 464,010 46% Operating Expenses 77,884 3,520 61,717 16,167 21% Operational Costs - Contracted 1,324 13,003 (13,003) Economic Development Outreach & Support 533,161 2,538 60,368 472,793 89% Professional Services 567,800 17,268 365,341 202,459 36% Miscellaneous Expenses 59,000 - 49,686 9,314 16% Subtotal EDA 2,235,776 75,039 1,084,036 1,151,740 52% Total DMCC 2021 2,504,526 93,158 1,180,959 1,323,567 53% Note: DMCC Working Capital Note 1,000 We received an additional DMC EDA pay request for August 2021 activity of $143,248 in September EDA Working Capital Note 75,000 12 PROJECT YEAR TO DATE EXPENSES PROJECT BUDGET LIFE TO DATE EXPENSES LIFE TO DATE ENCUMBRANCES Administration C.8601 - City Project Administrative Costs-DMCC (Budget-Current Yr)292,416 696,215 1,748,990 C.8606 - City Staff Costs-DMCC - (Budget-Current Yr)12,205 100,000 398,590 C.8607 - County Staff Costs-DMCC 168,754 C.8629 - Development Plan Update 6,145 750,000 154,960 C.8632 - Downtown Changes COVID-19 250,000 43,524 C.8902 - FestivalAreaStdy&ConceptDesign 84,133 Total Administration 310,767 1,546,215 2,471,294 Econ Development/Public Realm C.8624 - ChateauTheatreBldgImprov/Purch 69,631 8,802,937 8,525,337 - C.8625 - Heart of the City 4,058,136 17,648,940 17,467,534 2,417,639 C.8633 - Strategic Development 2,210,750 7,000,000 2,210,750 C.8904 - Discovery Walk 1,133,102 7,000,000 2,003,867 369,766 Total Econ Development/Public Realm 7,471,619 40,451,877 30,207,487 2,787,405 Infrastructure C.8611 - San. Sewer 12th Ave from 2nd St NW to 2nd St SW 1,106,127 2,850,000 2,380,991 4,258,744 C.8612 - West Zmbro San Sewer Lift Line from CookPk to Civic C Drive 50,000 46,592 C.8626 - San. Sewer Upsize 1st Ave & 3rd Ave SE on 4th / Govt Cntr Siphon 14,099 8,500,000 8,633,020 C.7326 - Reconst 4th St SW from 1st Ave to 6th Ave 2,205,789 2,205,789 C.7319 - Reconst 7th Ave NW from 2nd St NwW to 4st NW 1,107,000 1,107,000 C.7318 - Reconst North Broadway -2,500,000 4,400,000 2,900,000 C.7830 1st Street NW San Sewer Diversion from 1st Ave to Broadway 20,200 1,371,000 1,391,200 Total Infrastructure 3,640,426 20,483,789 18,664,592 4,258,744 DMCC Projects by Category Managed by City of Rochester Through August 2021 13 PROJECT YEAR TO DATE EXPENSES PROJECT BUDGET LIFE TO DATE EXPENSES LIFE TO DATE ENCUMBRANCES DMCC Projects by Category Managed by City of Rochester Through August 2021 Transit C.8614 - DMCTransit&InfrastrctrPgrmMgmt 3,956,739 1,826,262 C.8617 - Broadway @ Center Parking Ramp 10,500,000 10,500,000 C.8618 - SharedParkngStudy&PrgmDevlpmnt 2,061,854 1,874,219 C.8620 - City Loop Plan 1,209,938 968,732 C.8621 - Transit Circulator Study 2,241,532 1,780,877 C.8623 - DMCC Street Use Study 3,117,708 2,885,882 C.8628 - Downtown Circulator Project 269,941 C.8706 - DMCTransitCirculatorTODPlnStdy 829,414 C.8707 - Rapid Transit Projects 2,910,561 5,452,000 5,061,681 49,750 C.8709 - Arrive Rochester Implementatn 37,890 60,000 60,829 C.8903 - Dedicated Bike Lanes-3rd/4thAve&CtrSt 116,779 1,742,002 4,636 Total Transit 3,065,230 28,599,771 27,799,838 54,386 Grand Total 14,488,042 91,081,652 79,143,212 7,100,535 14 B. DESTINATION MEDICAL CENTER CORPORATION RESOLUTION NO. ___-2021 Approving the 2021 State of Minnesota Charitable Organization Annual Report and 2020 Form 990 BACKGROUND RECITALS A. On behalf of the Destination Medical Center Corporation (“DMCC”), CliftonLarsonAllen (“CLA”) prepared the 2021 State of Minnesota Charitable Organization Annual Report (the “Annual Report”) and 2020 Form 990 (the “Form 990”) and is recommending that the DMCC approve both items. B. The Annual Report and Form 990 were presented to the DMCC on September 30, 2021, and are on file with the DMCC. RESOLUTION NOW, THEREFORE, BE IT RESOLVED, by the Destination Medical Center Corporation, that the 2021 State of Minnesota Charitable Organization Annual Report and 2020 Form 990 are approved. BE IT FURTHER RESOLVED, that the Board authorizes the Chair or Treasurer to take any action or make any amendments necessary and to file the Annual Report and Form 990. 1366379-2.DOCX 15 16 9/24/2021 ©2 0 2 1  Cl i f t o n L a r s o n A l l e n  LL P WEALTH ADVISORY | OUTSOURCING  AUDIT, TAX, AND CONSULTING Investment advisory services are offered through CliftonLarsonAllen Wealth  Advisors, LLC, an SEC‐registered investment advisor 1 Destination Medical Center Corporation September 2021 ©2 0 2 1  Cl i f t o n L a r s o n A l l e n  LL P Create Opportunities IRS Form 990 •Financial information reconciles to DMCC’s audited financial statements •Part III (page 3) – statement of DMCC’s organizational purpose •Part VI (page 7) – governance •Part VII (page 8) –board members 1 2 17 9/24/2021 ©2 0 2 1  Cl i f t o n L a r s o n A l l e n  LL P Create Opportunities IRS Form 990 •Schedule B (page 23) – contributors •Schedule R (page 33) – related organizations •No unrelated business income for 2020 •Filing deadline is November 15, 2021 ©2 0 2 1  Cl i f t o n L a r s o n A l l e n  LL P Create Opportunities MN Charitable Organization Annual Report •Filed with Minnesota Attorney General’s Office Charities Division •No changes in tax‐exempt status (page 1) •No changes in organizational purpose or programs (page 1) •No changes in ability to solicit contributions (page 2) •No compensation paid in excess of $100,000 (page 2) •Filing deadline November 15, 2021 3 4 18 9/24/2021 ©2 0 2 1  Cl i f t o n L a r s o n A l l e n  LL P Create Opportunities Minnesota Non-profit Corporation Annual Registration •Filed online with Minnesota Secretary of State •In good standing through December 31, 2021 •Annual renewal to be filed (online) for 2022 ©2 0 2 1  Cl i f t o n L a r s o n A l l e n  LL P Create Opportunities Thank you for engaging us to serve you! Contact Information: Craig Popenhagen, Principal Katherine Lutzke, Senior 507‐280‐2327 507‐280‐2314 Craig.popenhagen@claconnect.com katherine.lutzke@claconnect.com 5 6 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 2022 DMC Funding Request To: DMC Corp. Board of Directors From: DMC EDA Date: September 24, 2021 Request of the board of directors: •Approve the 2022 DMC funding request Background: Each year, the DMC Corp. must submit a funding request to the City of Rochester. The funding request includes a proposed: •Capital Improvement Program with five-year projections, including capital and operating costs •Workplan for the DMC EDA and City DMC project management team •Request for the extension of the DMC Corp. and DMC EDA working capital loans From May-August 2021, members of the DMC EDA and DMC Corp. boards volunteered to advise DMC EDA and City staff in the creation of the funding request. Following its formal review, the DMC EDA board of directors recommends the approval of the 2022 DMC Funding Request. Next Steps: •October 2021: Rochester City Council considers 2022 DMCC funding request 65 DESCRIPTION 2022 DMC FUNDING SOURCE PROPOSED 2022 DMC FUNDING PROJECTED 2023 DMC FUNDING PROJECTED 2024 DMC FUNDING eart of the City: Construction DMC GSIA $600,000 hateau Theatre: Improvements and Asset Preservation DMC GSIA $350,000 $1,000,000 $100,000 Discovery Walk: Construction DMC GSIA $7,000,000 $1,720,000 ducation‐Recreation Subdistrict (Soldiers Memorial Field Park): Public Realm Planning and Design DMC GSIA $500,000 $4,500,000 Downtown Waterfront: Riverfront Planning and Design DMC GSIA $5,000,000 eart of the City: Public Realm connection to the Mayo Civic Center $1,200,000 t Marys Place: Public Realm Design and Construction DMC GSIA $300,000 $3,000,000 2022 Subtotal 2023 Subtotal 2024 Subtotal Phase 2 Subtotal (2020‐2024) Phase 2 Target Ra $8,450,000 $12,520,000 $4,300,000 $51,270,000 $35‐50M DESCRIPTION 2022 DMC FUNDING SOURCE PROPOSED 2022 DMC FUNDING PROJECTED 2023 DMC FUNDING PROJECTED 2024 DMC FUNDING ransportation Management: Arrive Rochester TMA Implementation City DMC Aid $180,000 $180,000 $180,000 DMC GSIA $2,040,277 $1,953,000 $1,780,463 DMC County Transit Aid $4,155,534 $4,542,581 $3,368,588 DMC State Transit Aid $10,388,836 $11,356,451 $8,421,470 apid Transit: Phase II Planning City DMC Aid $200,000 $300,000 2022 Subtotal 2023 Subtotal 2024 Subtotal Phase 2 Subtotal (2020‐2024) Phase 2 Target Ra $16,964,647 $18,332,032 $14,750,521 $65,841,200 $60‐75M DESCRIPTION 2022 DMC FUNDING SOURCE PROPOSED 2022 DMC FUNDING PROJECTED 2023 DMC FUNDING PROJECTED 2024 DMC FUNDING rivate Project Infrastructure DMC GSIA $3,000,000 $3,000,000 $3,000,000 2022 Subtotal 2023 Subtotal 2024 Subtotal Phase 2 Subtotal (2020‐2024) Phase 2 Target Ra $3,000,000 $3,000,000 $3,000,000 $23,300,000 $20‐45M DESCRIPTION 2022 DMC FUNDING SOURCE PROPOSED 2022 DMC FUNDING PROJECTED 2023 DMC FUNDING PROJECTED 2024 DMC FUNDING nergy and Sustainability: District Energy System DMC GSIA $1,800,000 ewer: Construct sanitary sewer capacity bypass on 3rd Ave SW from 2nd St SW to 4th St SW $50,000 $1,500,000 treets: Discovery Square roadway improvements, utility replacements, upgrades and relocations for water and electric DMC GSIA $789,000 idewalks: Downtown sidewalk experience enhancement:  ADA improvements, increase public realm space & aesthetic integration DMC GSIA $2,051,625 2022 Subtotal 2023 Subtotal 2024 Subtotal Phase 2 Subtotal (2020‐2024) Phase 2 Target Ra $4,640,625 $50,000 $1,500,000 $22,277,223 $35‐50M DESCRIPTION 2022 DMC FUNDING SOURCE PROPOSED 2022 DMC FUNDING PROJECTED 2023 DMC FUNDING PROJECTED 2024 DMC FUNDING DMC Corp.City DMC Aid $247,000 $253,000 $259,000 DMC administrative support by City of Rochester City DMC Aid $100,000 $100,000 $100,000 DMC EDA City DMC Aid $2,190,000 $2,244,750 $2,300,870 ity DMC Project Management City DMC Aid $738,616 $757,081 $776,008 2022 Subtotal 2023 Subtotal 2024 Subtotal Phase 2 Subtotal (2020‐2024) Phase 2 Target Ra $3,275,616 $3,354,831 $3,435,878 $17,984,237 $15‐20M 2022 DMC Funding Total 2023 DMC Funding Total 2024 DMC Funding Total Phase 2 Total (2020‐2024) Phase 2 Target Ra $36,330,888 $37,256,863 $26,986,399 $180,672,660 $200,000,000 PHASE 2 (2020‐2024) DMC FUNDING PHASE 2 (2020‐2024) DMC FUNDING PHASE 2 (2020‐2024) DMC FUNDING Public Realm Mobility Streets and Sewers Strategic Redevelopment Operations apid Transit: Second Street Reconstruction & Streetscape PHASE 2 (2020‐2024) DMC FUNDING PHASE 2 (2020‐2024) DMC FUNDING 66 Department: Division: Contact Person: Location: Project Category: Department Priority:Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan To achieve the vision and goals set forth in the Destination Medical Center (DMC) Development Plan. A stated objective within the DMC Development Plan is to construct a signature public realm space for each sub-district. This budget will be used to complete the construction of the first phase of this sub-district's signature public realm space. Destination Medical Center City Administration 215 NA The heart of the downtown, this sub-district creates a true center of the city, a cross-roads where Mayo Clinic, commercial, hospitality, retail and residential meet. The Heart of the City is connected by a primary spine which extends and enhances the Peace Plaza to create active experiences and engaging gateways to the other districts downtown. The project budget included here is intended for the completion of phase one construction of the public realm project located in the Heart of the City sub-district. Fiscal Responsibility & Sustainability, Social Equity 8600 8625 Heart of the City Enhance Quality of Life, Manage Growth and Development Destination Medical Center CIP (BU 8600) Not Applicable 2022 Noloan L Schild Destination Medical Center 9 67 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 600,000 2024 2025 20262023 Construction 600,000 2022 0 New 600,000 0 0600,000 0 0 0 2027 600,000 0 202720252023 600,000 DMC projects support the DMC Development Plan and take into consideration other City plans such as the comprehensive plan, bicycle master plan, park master plan, etc. 2022 600,000 2026 0 00 0 600,000 0 The increase in operating costs will depend on the final design and amenities installed. The estimates for these elements are being considered as part of the project design and construction. 50 0 0 0 0 00 0 State DMC Funds 0 0 2024 68 Department: Division: Contact Person: Location: Project Category: Department Priority:Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan There are aspects of the building that need repair or enhancement in order to maintain and utilize the existing asset. Destination Medical Center - Chateau Theatre City Administration 216 NA Chateau restroom renovations will be completed in 2022. Major upgrades to the HVAC system are planned for 2023. Fiscal Responsibility & Sustainability 8600 8613 Chateau Theatre Improvements Balance Public Infrastructure Investment City Administration Not Applicable 2022 Noloan L Schild Destination Medical Center 5 69 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 350,000 2024 2025 20262023 Implementation 350,000 2022 100,000 Existing 1,750,000 100,000 100,000350,000 1,000,000 100,000 1,000,000 2027 1,750,000 100,000 202720252023 1,750,000 N/A 2022 1,750,000 2026 100,000 100,000100,000 100,000 350,000 1,000,000 These improvements likely have minimal impact on operating costs. Potentially some of the improvements may marginally decrease operating costs. 1 100,000 100,000 100,000 100,000 100,000100,000 0 Sales Tax DMC 1,000,000 100,000 2024 70 Department: Division: Contact Person: Location: Project Category: Department Priority:Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan To achieve the vision and goals set forth in the Destination Medical Center (DMC) Development Plan. The proposed street design will eliminate curbs allowing for maximum flexibility and multiple uses during each of Minnesota’s four distinct seasons. Depending on the day, the street could have two-way traffic, one-way traffic, or be closed off for a fun and engaging community event. Destination Medical Center City Administration 218 NA Discovery Walk is a traditional public street in the center of downtown Rochester, Minnesota near the world-renowned Mayo Clinic. Extending from the center of downtown Rochester through Discovery Square, south to Soldier's Field and on to Rochester's City Loop, this project reimagines the street as a green parkway serving pedestrians and cyclists alike. The ultimate intent is for this to transform into a place to lunch or work outside over coffee, for families to bring children to fountains in the summer and swings in the winter, and for residents to walk their dogs and engage with neighbors. Fiscal Responsibility & Sustainability, Public Safety, Social Equity Discovery Walk Enhance Quality of Life, Manage Growth and Development City Administration Not Applicable 2022 Noloan L Schild Destination Medical Center 7 71 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 7,000,000 2024 2025 20262023 Construction 7,000,000 2022 0 Existing 8,320,000 0 07,000,000 1,320,000 0 1,ϳ20,000 2027 8,320,000 0 202720252023 8,ϳ20,000 DMC projects support the DMC Development Plan and take into consideration other City plans such as the comprehensive plan, bicycle master plan, park master plan, etc. 2022 8,320,000 2026 0 00 0 7,000,000 1,320,000 The City of Rochester and DMC teams are in the process of evaluating what sources are most appropriate to pay for any annual increase in operating costs. 50 0 0 0 0 00 0 State DMC Funds 1,320,000 0 2024 72 Department: Division: Contact Person: Location: Project Category: Department Priority:Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan A consistent theme expressed during community engagement is that Discovery Walk should not terminate at 6th Street and instead should extend into Soldiers Field to create connectivity to nature and the river. Based on that feedback, we included a design scope for northern Soldiers Field as a part of the phase 2 extension of Discovery Walk. As higher density development continues to occur along the Discovery Walk and throughout the DMC district, access to quality public open space becomes essential to meet Council priorities for equitable housing and development. Discovery Walk phase 2 plays a vital role in linking future development opportunities east of Broadway via an envisioned 6th Street Bridge. Additionally, Discovery Walk Phase 2 further enhances the network of DMC sub-districts, transit locations, and future riverfront improvements. Destination Medical Center City Administration 336 NA Phase 2 of Discovery Walk will extend the project into Soldiers Field to the Zumbro River and east down to 6th Street to Broadway. This extension of the project will make a physical connection to the urban core of downtown to the park amenities of Soldiers Field and the natural features of the Zumbro River. This future integration, in addition to a proposed 6th Street bridge, will enhance access to the Slatterly Park and Sunnyside neighborhoods southeast of downtown; it will also further integrate DMC sub-districts like the UMR and Recreations District and the Downtown Waterfront District. Public Safety, Social Equity Discovery Walk - Phase 2 Enhance Quality of Life, Manage Growth and Development City Administration Not Applicable 2022 Noloan L Schild Destination Medical Center 8 73 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 500,000 0 2024 2025 20262023 Consulting or Study Construction 500,000 2022 0 New 5,000,000 0 0500,000 0 4,500,000 0 4,500,000 2027 500,000 4,500,000 0 202720252023 5,000,000 This would be in alignment with the City's comprehensive plan as well as the master park plan. 2022 5,000,000 2026 0 0 00 0 500,000 4,500,000 Operating costs will be estimated through the design phase of the project. 50 0 0 0 0 0 0 00 0 State DMC Funds 4,500,000 0 0 2024 74 Department: Division: Contact Person: Location: Project Category: Department Priority:Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan Arrive Rochester takes a leadership role in implementing Travel Demand Management efforts. Aim to reduce the number of people driving alone to work in Rochester to ease traffic congestion and improve air quality. This tactic was also identified in the approved Integrated Transit Study plan as a key to ensure the community realizes its mode shift over time. This work will help ensure the investments made in infrastructure are readily understood by the community and ultimately used at the levels intended. Destination Medical Center City Administration 237 NA Provide new programs to make it easier for commuters to travel in carpools, by bus, on foot or by bike. The software is meant to encourage a mode shift among the community. Environmental Stewardship, Fiscal Responsibility & Sustainability Arrive Rochester Enhance Quality of Life, Manage Growth and Development, Balance Public Infrastructure Investment City Administration Not Applicable 2022 Noloan L Schild Destination Medical Center 14 75 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 180,000 2024 2025 20262023 Implementation 180,000 2022 180,000 New 1,080,000 180,000 180,000180,000 180,000 180,000 180,000 2027 1,080,000 180,000 202720252023 1,080,000 DMC projects support the DMC Development Plan and take into consideration other City plans such as the comprehensive plan, bicycle master plan, park master plan, etc. 2022 1,080,000 2026 180,000 180,000180,000 180,000 180,000 180,000 Not applicable as the programs do not generate additional operating costs or reduce any operating costs in general. 100 180,000 180,000 180,000 180,000 180,000180,000 0 Sales Tax DMC 180,000 180,000 2024 76 Department: Division: Contact Person: Location: Project Category: Department Priority:Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan Implementation of the circulator route was a top priority of the Integrated Transit Studies. The circulator route is intended to develop a cost-effective transitway that increases transit use among corridor residents, commuters, businesses, patients, students, and visitors. Also, to catalyze and support housing and economic development along the corridor. Last, to support healthy, active communities and encourage sustainability. Destination Medical Center City Administration 234 Ward 2, Ward 4 The Rochester Downtown Transit Circulator will provide high quality downtown public transportation service for residents, commuters, businesses, patients, students, and visitors that will support the City of Rochester and Destination Medical Center (DMC) district transportation, economic development, and livability goals and substantially increase public transportation use downtown. Environmental Stewardship, Fiscal Responsibility & Sustainability, Public Safety, Social Equity 8600 J8707 Rapid Transit Implementation Enhance Quality of Life, Manage Growth and Development, Balance Public Infrastructure Investment City Administration Not Applicable 2022 Jarrett K Hubbard Destination Medical Center 15 77 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 17,434,647 0 1,200,000 50,000 2024 2025 2026 Construction 2023 Implementation Architect/Design Project Management 18,684,647 2022 0 0 0 0 0 0 0 New 105,218,500 0 41,048,500 0 0 0 0 0 0 02,100,000 15,691,353 30,166,757 25,000,000 100,000 1,000,000 41,048,500 0 4,542,581 11,356,451 0 0 1,953,000 23,939,321 2027 75,868,500 25,900,000 1,400,000 4,155,534 10,388,836 0 0 0 2,040,277 3,694,000 20272025 12,066,703 2023 225,000 750,000 150,000 5,773,740 56,086,300 DMC projects support the DMC Development Plan and take into consideration other City plans such as the comprehensive plan, bicycle master plan, park master plan, etc. 2022 105,218,500 2026 39,048,500 0 900,000 100,000 1,000,000 0 0 3,694,000 0 3,368,588 8,421,470 225,000 750,000 150,000 1,780,463 26,352,979 0 0 18,684,647 0 41,791,353 This annual operating cost estimate starts with the current hourly operating rate paid by RPT to First Transit. This hourly rate has been escalated by 30% to account for inflation and changes to contract. Then service was expanded from 5am to midnight. 50 2,050,000 0 0 0 0 0 3,694,000 0 0 0 03,694,000 4,228,311 Transit Aid County DMC Transit Aid State DMC Operating Transfer – From Sewer Utility Special Assessment Bonds Water Utility State DMC Funds Federal Funds 41,791,353 0 0 0 0 2024 78 Department: Division: Contact Person: Location: Project Category: Department Priority:Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan Will enhance mobility for citizens, visitors, workers, etc. commuting to areas within the Destination Medical Center. Destination Medical Center City Administration 284 NA The details of this transportation related project have not yet been determined, but the project and these funds represent a phase two project implementation in relation to the Integrated Transit Studies. Funding years and amounts will continue to evolve as the development of a phase II plan is finalized. Phase 2 of the transit plan will explore the extension of the Rapid Transit system to the southeast portion of the city. Environmental Stewardship, Fiscal Responsibility & Sustainability, Public Safety, Social Equity ITS Implementation Phase II Enhance Quality of Life, Manage Growth and Development, Balance Public Infrastructure Investment Destination Medical Center CIP (BU 8600) Not Applicable 2022 Noloan L Schild Destination Medical Center 17 79 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 0 200,000 2024 2025 20262023 Implementation Consulting or Study 200,000 2022 0 600,000 400,000 New 9,000,000 0 0 4,500,000 3,000,0000 0 300,000 0 300,000 0 0 2027 8,500,000 500,000 200,000 0 0 202720252023 500,000 5,100,000 3,400,000 DMC projects support the DMC Development Plan and take into consideration other City plans such as the comprehensive plan, bicycle master plan, park master plan, etc. 2022 9,000,000 2026 0 0 0 0 0 0 0 0 7,500,000 200,000 300,000 Operating costs and cost recovery shall be projected and considered as part of the development of the phase II plan and implementation strategy. 75 1,000,000 0 7,500,000 7,500,000 0 0 1,000,0000 0 Sales Tax DMC Transit Aid State DMC Transit Aid County DMC 300,000 1,000,000 0 2024 80 Department: Division: Contact Person: Location: Project Category: Department Priority:Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan Some redevelopment opportunities are not known in advance and therefore, these funds would be available if/when a valuable opportunity arises to allow the City and DMC to invest in the community. The funds would be used in accordance with the approved expenditures outlined in the DMC legislation and strategically used to invest in the downtown area or areas that arise which would advance the DMCC Board's stated priorities such as transit, workforce, affordable housing and a variety of others. Destination Medical Center City Administration 288 NA Strategic Redevelopment would include any opportunity for redevelopment within the DMC boundaries that the DMCC and City of Rochester see as valuable to their collaborative long term goals and strategic plans. Compassion, Environmental Stewardship, Fiscal Responsibility & Sustainability, Public Safety, Social Equity 8600 8633 Strategic Redevelopment Enhance Quality of Life, Foster a Team-Oriented Culture, Manage Growth and Development, Balance Public Infrastructure Investment Destination Medical Center CIP (BU 8600) Not Applicable 2022 Noloan L Schild Destination Medical Center 10 81 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 3,000,000 2024 2025 20262023 Implementation 3,000,000 2022 3,000,000 New 18,000,000 3,000,000 3,000,0003,000,000 3,000,000 3,000,000 3,000,000 2027 18,000,000 3,000,000 202720252023 18,000,000 Would invest in projects/opportunities that are in alignment with the strategic plans of both the DMC and City of Rochester. 2022 18,000,000 2026 3,000,000 3,000,0003,000,000 3,000,000 3,000,000 3,000,000 Any increase in operating costs would have to be projected & considered at the time funds were being considered to be expended on a redevelopment opportunity. 50 3,000,000 3,000,000 3,000,000 3,000,000 3,000,0003,000,000 0 State DMC Funds 3,000,000 3,000,000 2024 82 Department: Division: Contact Person: Location: Project Category: Department Priority:Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan District energy will replace less efficient systems and reduce our carbon footprint. A system such as this would reduce cost and ongoing operations and maintenance fees, while providing an efficient, reliable, and carbon-free heating and cooling source by 2030. The concept could also work to improve aesthetics, provide more building space for programming instead of mechanical equipment, reduce air pollution and emissions in Rochester, and the DES technology allows for further optimization with renewable systems and other operational practices. Additionally, the noted government buildings are currently heated & cooled by the Olmsted County waste to energy facility and related steam lines. Due to cost to operate and maintain the steam lines the county has opted to decommission these lines by October 2023 and therefore the city government buildings need an alternative heating and cooling system in place by that time. Destination Medical Center City Administration 286 NA This project would add heating and cooling capacity to areas in the downtown Destination Medical Center district. Equipment evaluated for this concept can create both heating and cooling energy simultaneously and in a very efficient manner. Downtown government buildings (Library, City Hall, Mayo Civic Center, Civic Theater and Art Center) will be the first facilities to be heated and cooled by this system. Future private facilities or developments could also be served by the system. Environmental Stewardship, Fiscal Responsibility & Sustainability, Public Safety Downtown District Energy System Enhance Quality of Life, Manage Growth and Development, Balance Public Infrastructure Investment Destination Medical Center CIP (BU 8600) Not Applicable 2022 Noloan L Schild Destination Medical Center 11 83 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 14,375,000 2024 2025 20262023 Construction 14,375,000 2022 0 0 0 New 14,375,000 0 0 0 01,800,000 0 0 0 0 0 2027 14,375,000 10,000,000 2,575,000 0 202720252023 10,000,000 2,575,000 1,800,000 The project would be in alignment with long term strategies and the development plans of both the DMC and City of Rochester. 2022 14,375,000 2026 0 0 0 0 0 0 0 0 14,375,000 0 Operating costs and cost recovery shall be projected and considered as part of the implementation of this project. 50 0 0 0 0 00 0 State Funds General Obligation Bonds State DMC Funds 0 0 2024 84 Department: Division: Contact Person: Location: Project Category: Department Priority:Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan Many areas of the sidewalks in downtown are degrading over time, especially surrounding brick inlays that were installed as part of an outdated standard detail used before passage of the ADA. Cracks and brick pop-outs are a safety hazard and generate trip/fall complaints at a much higher rate than other pedestrian facilities. These calls spur repeated temporary maintenance that doesn't solve the underlying performance issues. The reconstruction will include ADA improvements, consideration of increased public realm space, and other aesthetic integration aspects. Broadway Ave, 2nd Street SE, and 3rd Street SW. City Administration 250 Ward 4 The project will focus on replacing aging concrete panels causing tripping hazards mainly along sections of Broadway between 4th Street S and 2nd Street N. Most of these hazards are caused by spalling brick inlays that were installed in the late 1980s. The new design will eliminate the brick inlays and replace the sidewalk panels to meet modern standards, including Americans with Disabilities Act (ADA) accessibility. The project will enhance the downtown pedestrian experience, address inconsistencies in sidewalk aesthetics, offer opportunities to make downtown sidewalks more inviting and allow for creative activation of sidewalk areas. Public Safety 8600 4716 Downtown Sidewalk Experience Enhancement Enhance Quality of Life, Balance Public Infrastructure Investment Destination Medical Center CIP (BU 8600) Not Applicable 2022 Noloan L Schild Destination Medical Center 13 85 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 1,851,625 200,000 2024 2025 20262023 Construction Architect/Design 2,051,625 2022 0 Existing 2,051,625 0 02,051,625 0 0 0 0 2027 1,851,625 200,000 0 202720252023 2,051,625 Maintains and improves walkability of downtown. Addresses a public safety issue. 2022 2,051,625 2026 0 0 00 0 2,051,625 0 Will greatly reduce ongoing temporary maintenance measures and decrease staff time needed to respond to high trip/fall rates. 50 0 0 0 0 0 0 00 0 State DMC Funds 0 0 0 2024 86 Department: Division: Contact Person: Location: Project Category: Department Priority:Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan Sanitary sewer and water main utilities in the area of the Discovery Square Sub-District of Destination Medical Center (DMC) have reached the end of their useful life. Additionally, they should be upgraded to accommodate recent and future redevelopment in the area. Destination Medical Center City Administration 339 All The sanitary sewer and water main utilities in 3rd Avenue SW, 4th Avenue SW, and 5th Street SW will be replaced and upgraded as needed to accommodate recent and future redevelopment in the area. The project will also include reconstruction of the streets and sidewalks in the project area. Construction is currently planned for 2023. Environmental Stewardship, Fiscal Responsibility & Sustainability, Public Safety Block 6 Street Project Enhance Quality of Life, Manage Growth and Development, Balance Public Infrastructure Investment Destination Medical Center CIP (BU 8600) Not Applicable 2022 Noloan L Schild Destination Medical Center 12 87 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 315,000 1,263,000 2024 2025 20262023 Architect/Design Construction 1,578,000 2022 0 0 0 0 0 New 1,578,000 0 0 0 0 0 0 0789,000 0 0 0 0 0 0 0 0 2027 315,000 1,263,000 242,000 118,000 206,000 223,000 0 202720252023 242,000 118,000 206,000 223,000 789,000 Helps support the Destination Medical Center strategic plan. 2022 1,578,000 2026 0 0 0 0 0 0 0 0 0 0 0 0 1,578,000 0 Operating costs should neither increase or decrease with this project. 50 0 0 0 0 0 0 00 0 Project Reserves Operating Transfer – From Storm Water Water Utility Operating Transfer – From Sewer Utility State DMC Funds 0 0 0 2024 88 Department: Division: Contact Person: Location: Project Category: Department Priority:Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan To support the efforts of the DMCC on Destination Medical Center (DMC) activities. Destination Medical Center City Administration 210 NA Contributions to the Destination Medical Center Corporation (DMCC) for DMCC expenses. Fiscal Responsibility & Sustainability 8600 8602 Destination Medical Center Corporation Expenses Foster a Team-Oriented Culture City Administration Not Applicable 2022 Noloan L Schild Destination Medical Center 1 89 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 247,000 2024 2025 20262023 Overhead 247,000 2022 272,000 Existing 1,575,000 259,000 279,000247,000 253,000 259,000 253,000 2027 1,575,000 265,000 202720252023 1,575,000 DMC projects support the DMC Development Plan and take into consideration other City plans such as the comprehensive plan, bicycle master plan, park master plan, etc. 2022 1,575,000 2026 259,000 265,000259,000 279,000 247,000 253,000 The amount being budgeted for 2022 is an increase from the prior year (2021) of approximately $8,000. 1 272,000 279,000 279,000 265,000 272,000265,000 0 Sales Tax DMC 253,000 272,000 2024 90 Department: Division: Contact Person: Location: Project Category: Department Priority:Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan There are a variety of expenditures that arise in the project process and these funds are available to cover the more minor items that would be considered administrative to carrying out a DMC project. Destination Medical Center City Administration 213 NA This budget item represents the administrative costs that may be incurred by the City of Rochester in the administration of Destination Medical Center (DMC) projects. Fiscal Responsibility & Sustainability 8600 8601 Administrative Costs for Destination Medical Center Projects Enhance Quality of Life, Manage Growth and Development City Administration Not Applicable 2022 Noloan L Schild Destination Medical Center 4 91 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 100,000 2024 2025 20262023 Overhead 100,000 2022 100,000 Existing 600,000 100,000 100,000100,000 100,000 100,000 100,000 2027 600,000 100,000 202720252023 600,000 DMC projects support the DMC Development Plan and take into consideration other City plans such as the comprehensive plan, bicycle master plan, park master plan, etc. 2022 600,000 2026 100,000 100,000100,000 100,000 100,000 100,000 The administrative budget being presented for 2022 is equal to the prior year (2021). 1 100,000 100,000 100,000 100,000 100,000100,000 0 Sales Tax DMC 100,000 100,000 2024 92 Department: Division: Contact Person: Location: Project Category: Department Priority:Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan To support the efforts of the DMC EDA on DMC activities and approved 2021 work plan objectives. Destination Medical Center City Administration 211 NA Contributions to the Destination Medical Center (DMC) Economic Development Authority (EDA) for expenses incurred to implement the work plan of the Destination Medical Center Corporation (DMCC). Fiscal Responsibility & Sustainability 8600 8602 Destination Medical Center Corporation EDA Expenses Enhance Quality of Life, Foster a Team-Oriented Culture, Manage Growth and Development, Balance Public Infrastructure Investment City Administration Not Applicable 2022 Noloan L Schild Destination Medical Center 2 93 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 2,190,000 2024 2025 20262023 Overhead 2,190,000 2022 2,417,350 Existing 13,989,140 2,300,870 2,477,7802,190,000 2,244,750 2,300,870 2,244,750 2027 13,989,140 2,358,390 202720252023 13,989,140 DMC projects support the DMC Development Plan and take into consideration other City plans such as the comprehensive plan, bicycle master plan, park master plan, etc. 2022 13,989,140 2026 2,300,870 2,358,3902,300,870 2,477,780 2,190,000 2,244,750 The amount being budgeted for in 2022 is approximately $67,000 higher than the prior year (2021) budget amount. 1 2,417,350 2,477,780 2,477,780 2,358,390 2,417,3502,358,390 0 Sales Tax DMC 2,244,750 2,417,350 2024 94 Department: Division: Contact Person: Location: Project Category: Department Priority:Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan Formal project management is necessary on DMC projects to help ensure various aspects of the projects that include, but are not limited to program administration, construction administration, planning, analysis, contract management, compliance, milestone monitoring and budget monitoring. Destination Medical Center City Administration 212 NA This budget amount will cover the salary and benefits associated to the City's Project Management team that is dedicated to Destination Medical Center (DMC) project delivery. This replaces funds previously expended for contracted services with a consulting firm. Fiscal Responsibility & Sustainability 8600 8614 City DMC Project Management Foster a Team-Oriented Culture, Manage Growth and Development City Administration Not Applicable 2022 Noloan L Schild Destination Medical Center 3 95 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 738,616 2024 2025 20262023 Project Management 738,616 2022 815,294 Existing 4,718,084 776,008 835,676738,616 757,081 776,008 757,081 2027 4,718,084 795,409 202720252023 4,718,084 DMC projects support the DMC Development Plan and take into consideration other City plans such as the comprehensive plan, bicycle master plan, park master plan, etc. 2022 4,718,084 2026 776,008 795,409776,008 835,676 738,616 757,081 The amount being budgeted for 2022 is an decrease from the prior year (2021) of approximately $44,000. 1 815,294 835,676 835,676 795,409 815,294795,409 0 Sales Tax DMC 757,081 815,294 2024 96 Special Assessment Bonds = a Abatement District = ad Olmsted County = c Electric Utility = eu f fb Flood Control Reserves = fr Local Gov't Aid = ga General Obligation Bonds = go Lodging Tax = lt ms os Operating Trfs-fr General Fund = ot Operating Trfs-fr Sewer Utility = ow Operating Trfs-fr General Fund = ox Private Funds = p 2020 Parks Referendum = pr r GO Revenue Bonds = rb Retained Earnings = re State Funds = s Sn/Sewer Avail Chg = sa Sales Tax DMC = sd sm Sales Tax 2013 = st Storm Water Mgmt Chg = sw Tax Levy = t Transit Aid County DMC = tc Traffic Improvement Dist Chg = td Tax Increments = ti Operating Trfs - fr Other Funds = to Transit Aid State DMC = ts Water Availability Chg = wa Water Utility = wu u 2021 Map #Project Description Proj #Total Budget CIP Bdgt Amts 2022 Priority 2023 Priority 2024 Priority 2025 Priority 2026 Priority 2027 Priority Operations 1 Contributions to DMC Corporation for DMCC expenses 8602 5,297,065 268,750 sd 247,000 sd 253,000 sd 259,000 sd 265,000 sd 272,000 sd 279,000 sd 2 Contributions to DMC Corporation for EDA expenses 8602 32,198,639 2,235,776 sd 2,190,000 sd 2,244,750 sd 2,300,870 sd 2,358,390 sd 2,417,350 sd 2,477,780 sd 3 City Project Management expenses 8601 8,674,823 696,215 sd 738,616 sd 757,081 sd 776,008 sd 795,409 sd 815,294 sd 835,676 sd 4 City of Rochester Administrative costs for DMC projects 8601 1,800,000 100,000 sd 100,000 sd 100,000 sd 100,000 sd 100,000 sd 100,000 sd 100,000 sd 5 Development Plan Update 1,250,000 500,000 sm 3,275,616 3,354,831 3,435,878 4,018,799 3,604,644 3,692,456 Public Realm 6 Chateau Theatre Improvements - Renovation of restrooms 2022 plus additional improvements and HVAC upgrades 2023.8624 12,176,802 350,000 sm 1,000,000 sm 100,000 sm 100,000 sm 100,000 sm 100,000 sm 100,000 sd 7 Sales Tax DMC - Repayment of loan from Flood Control Reserves; 7 year repayment starting in 2018.8605 8,400,000 1,200,000 sd 1,200,000 sd 1,200,000 sd 1,200,000 sd 8 Discovery Walk Design and Implementation 8904 18,920,000 7,000,000 sm 1,720,000 sm 7,000,000 sm 9 Discovery Walk Phase 2 - Soldiers Field Park 5,000,000 500,000 sm 4,500,000 sm 10 Riverfront Reimagined 6,000,000 1,000,000 sm 5,000,000 sm 11 Heart of the City 8625 19,871,265 6,000,000 sm 600,000 sm 12 Heart of the City Phase 2 - University Square to Mayo Civic Center 12,000,000 1,200,000 sm 6,000,000 sm 4,800,000 sm 13 St Marys Place Public Realm Implementation 3,300,000 300,000 sm 3,000,000 sm 9,650,000 13,720,000 5,500,000 6,100,000 4,900,000 100,000 Strategic Redevolopment 14 Strategic Redevelopment 8633 25,000,000 7,000,000 sm 3,000,000 sm 3,000,000 sm 3,000,000 sm 3,000,000 sm 3,000,000 sm 3,000,000 sm 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 Streets and Sewers 15 District Energy System Rochester 20,000,000 5,425,000 go 2,575,000 go 200,000 sm 1,800,000 sm 10,000,000 s 16 Block 6 Ramp - Roadway improvements, utility replacements, upgrades and relocations for water and electric. Project reserves will be transferred from J2201. 1,578,000 789,000 sm Project Reserves = State DMC Funds = Unfunded = Destination Medical Center 2022-2027 Capital Improvement Plan Schedule for Six Year Period Federal Funds = Food & Beverage Tax = MN State Aid - Streets = Operating Trfs - fr Storm Water = 97 Special Assessment Bonds = a Abatement District = ad Olmsted County = c Electric Utility = eu f fb Flood Control Reserves = fr Local Gov't Aid = ga General Obligation Bonds = go Lodging Tax = lt ms os Operating Trfs-fr General Fund = ot Operating Trfs-fr Sewer Utility = ow Operating Trfs-fr General Fund = ox Private Funds = p 2020 Parks Referendum = pr r GO Revenue Bonds = rb Retained Earnings = re State Funds = s Sn/Sewer Avail Chg = sa Sales Tax DMC = sd sm Sales Tax 2013 = st Storm Water Mgmt Chg = sw Tax Levy = t Transit Aid County DMC = tc Traffic Improvement Dist Chg = td Tax Increments = ti Operating Trfs - fr Other Funds = to Transit Aid State DMC = ts Water Availability Chg = wa Water Utility = wu u 2021 Map #Project Description Proj #Total Budget CIP Bdgt Amts 2022 Priority 2023 Priority 2024 Priority 2025 Priority 2026 Priority 2027 Priority Project Reserves = State DMC Funds = Unfunded = Destination Medical Center 2022-2027 Capital Improvement Plan Schedule for Six Year Period Federal Funds = Food & Beverage Tax = MN State Aid - Streets = Operating Trfs - fr Storm Water = 118,000 os 223,000 ow 206,000 wu 242,000 r 98 2020 DMC Capital Improvement Plan Budget Reconciliation To: DMC Corp, Board of Directors From: DMC EDA Date: September 24, 2021 Request of the board of directors: • No action requested. Background: DMC EDA and City staff have reviewed the project budgets approved in the 2020 Capital Improvement Program. Staff reconciled 2020 expenses and identified approved projects that have not fully expended their allocated budgets. In some cases, project costs were lower than budgeted. In others, annual changes to the DMC capital improvement program, DMC Corp. board priorities, or less-than-favorable project bids resulted in projects being postponed, redefined, or cancelled. The reconciled balance of project budgets are presented in the table below: Project Number Project Description City DMC Funding DMC GSIA Funding County DMC Transit Aid Funding Actual Expenditures Balance 8629 Development Plan Update $750,000 $140,000 $610,000 8708 Transit Villages 1 & 2 $5,000,000 $29,400 $4,970,600 8709 Arrive Rochester Implementation $510,000 $19,400 $490,600 2091 UMTA New Bus & Equip Acquistion $2,540,000 $2,540,000 7319 Reconstruct 7th Ave NW < 2nd St NW > 4th St NW)$4,800,000 $1,107,000 $3,693,000 Construct San. Sewer Capicity Bypass on 2nd St SE (combined with 7825)$1,136,898 $1,136,898 Transit Circulator Prototyping $250,000 $250,000 District Energy Evaluation & Implementation $100,000 $100,000 Smart City Implementation- Air quality $30,000 $30,000 St. Mary's transit station - 2019 continued design and planning $50,000 $50,000 2020-Provides for the EV charging for electric buses $110,000 $110,000 8601 City of Rochester Administrative costs for DMC Project $760,524 $710,428 $50,096 8602 Contributions to DMC Corp for DMCC & EDA expenses $2,856,647 $2,440,064 $416,583 TOTAL $4,127,171 $12,066,898 $2,700,000 $4,446,292 $14,447,777 99 100 Destination Medical Center Economic Development Agency & City of Rochester DMC Project Management Team 2022 Workplan 101 Table of Contents 1. EXECUTIVE SUMMARY 2. CITY OF ROCHESTER DMC PROJECT MANAGEMENT RESPONSIBILITIES 3. DMC EDA STATUTORY ROLE AND RESPONSIBILITIES 4. DMC CAPITAL AND OPERATING BUDGET PRINCIPLES 5. 2022 WORKPLAN OUTCOMES 6. 2022 DMC EDA AND PROJECT MANAGEMENT TEAM BUDGETS 1. Executive Summary In 2022, the Destination Medical Center (“DMC”) initiative will focus on advancing the strategic development priorities affirmed by the Destination Medical Center Corporation Board of Directors and the City of Rochester Common Council in order to achieve the goals of the DMC initiative. DMC GOALS a) Create a comprehensive strategic plan with a compelling vision that harnesses the energy and creativity of the entire community b) Leverage the public investment to attract more than $5 billion in private investment to Rochester and the region c) Create approximately 35,000 – 45,000 new jobs, with workforce development strategies that support that growth d) Generate approximately $7.5 - $8.0 billion in new net tax revenue over 35 years e) Achieve the highest quality patient, companion, visitor, employee, and resident experience, now and in the future 2022 STRATEGIC DEVELOPMENT PRIORITIES a) Heart of the City b) Discovery Square c) Mobility d) Riverfront Development e) Rapid Transit Oriented Development Additionally, the DMC EDA and City of Rochester DMC project management team have incorporated significant business development, sustainability. marketing, workforce development, health in economic development, experience, and community engagement initiatives into the 2022 workplan in order to support these strategic priorities. The workplan outlines the objectives and defines the resources necessary to advance the 2022 DMC strategic priorities. 2. City of Rochester DMC Project Management Team Responsibilities In January 2019, the Destination Medical Center Corporation approved a proposal to assign new and existing DMC- related project management responsibilities to DMC-dedicated City of Rochester staff. For example, the City of Rochester DMC Project Management team supports the DMC initiative in these areas: a) Project delivery b) Targeted business and workforce development and utilization c) Rapid transit circulator development d) Subdistrict public project construction management, including Heart of the City and Discovery Walk 102 3. DMC EDA Statutory Role and Responsibilities The DMC EDA assists the Destination Medical Center Corporation (“DMCC”) and the City of Rochester (“City”) in implementing the development planning and promotion, development services, and marketing, outreach and communication activities required to achieve the goals of the DMC development plan. The DMC legislation identified several key responsibilities of the DMC EDA in addition to its role as an advisory agency to the DMCC and City: a) Drafting and implementing the development plan, including soliciting and evaluating proposals for development and evaluating and making recommendations to the DMCC and the City regarding those proposals b) Seeking financial support for the DMCC, the City, and projects c) Partnering with other development agencies and organizations, the city, and the county in joint efforts to promote economic development and establish a destination medical center d) Supporting and administering the planning and development activities required to implement the development plan e) Developing and updating the criteria for evaluating and underwriting development proposals f) Providing transactional services in connection with approved projects g) Working with the corporation to acquire and facilitate the sale, lease, or other transactions involving land and real property h) Assisting the DMCC or City and others in applications for federal grants, tax credits, and other sources of funding to aid both private and public development i) Facilitating private investment through development of a comprehensive marketing program to global interests j) Developing patient, visitor, and community outreach programs k) Preparing and supporting the marketing and promotion of DMC l) Preparing and implementing a program for community and public relations 103 4. DMC Capital and Operating Budget Principles Capital Improvement Program Principles a) Pursue projects consistent with DMC Development Plan and current priorities b) Finish projects already approved and underway c) Use “pay-as-you-go” public finance model as a primary financing tool, but consider bonding or loans when appropriate d) Focus on time-sensitive, shovel-ready projects e) Be responsive to community priorities and market demand f) Leverage other sources of funding g) Achieve balance between public realm, public infrastructure, and transportation h) Consider medium- and long-term capital and infrastructure needs prior to committing resources DMC EDA and City of Rochester DMC Project Management Team Operating Budget Principles a) Fulfill responsibilities assigned to the DMC EDA by Minnesota Statutes 469.40-469.47 b) Successfully implement the DMC Development Plan c) Advance strategic development priorities d) Achieve annual work plan outcomes e) Incorporate complementary planning and implementation activities assigned to the City of Rochester DMC Project Management Team 5. 2022 Workplan Outcomes The 2022 DMC workplan is primarily organized around the five major categories of DMC investment: Mobility; Public Realm; Private Investment; Streets and Sewers; and Plan Implementation. These categories are also used to organize the DMC Capital Improvement Program. MOBILITY 2035 Goal Phase 2 (2025) Goal 2022 Outcome Reduce drive- alone mode share to 50% or less Reduce drive-alone mode share from 71% to 58% Rapid transit: Complete environmental analysis; complete 100% design; meet federal review process milestones Metrics: Establish a baseline for workforce mode share and methodology for tracking progress Mode shift: Develop an active commuter plan and enact programs to expand alternative commuting 104 PUBLIC REALM 2035 Goal Phase 2 (2025) Goal 2022 Outcome Attract more than $5 billion in private investment Achieve the highest quality patient, visitor, and community member experience Demonstrate the economic and experience value of the Heart of the City public space investment by the following measures: a) Increase pedestrian traffic in the Peace Plaza area by 50% b) Businesses report increased revenue c) Visitors and community members report they are more likely to visit downtown Heart of the City: Complete Post-Occupancy Evaluation Heart of the City: Develop and execute Activation Strategy Chateau Theatre: Develop and execute Activation Strategy and ongoing capital maintenance Discovery Walk construction completed, activities take place regularly with increased involvement by under- represented community members, new development is being considered Discovery Walk: Complete first phase (400-500 blocks) Discovery Walk: Implement Business Forward and community engagement strategies Public Realm concepts developed for all DMC sub-districts Rapid Transit: Develop community-supported station area public realm concepts and neighborhood connections Saint Marys Place: Incorporate public realm concept into transit station area design Education/Recreation: Convene stakeholders to establish vision for sub-district public realm (Soldiers Field) Downtown Waterfront: Develop community-supported public realm concept PLAN IMPLEMENTATION: MARKETING AND BUSINESS DEVELOPMENT 2035 Goal Phase 2 (2025) Goal 2022 Outcome Attract more than $5 billion in private investment More than $1 billion of new private development underway Targeted Marketing: Continue marketing to target audiences including Digital Health, Entrepreneurs and Retail, Dining and Entertainment Lead Generation: Generate a minimum of 100 business and economic development leads per quarter Media Coverage: Increase earned media coverage by 10% using various communication tactics Retail developments active across all DMC subdistricts Retail strategy implemented in DMC district Retail, Dining, Entertainment (RDE): Implement recruitment and retention strategy, with a focus on innovative approaches to Heart of the City and Discovery Square that support residents, visitors and workers Create 35,000-45,000 new jobs, including 3,230 in bio-med-tech Develop 330,000 SF of Bio-Med-Tech space Discovery Square Business Development: Develop and execute a lead-generation strategy that complements existing lead channels Bio-med-tech Workforce Development: Support partner-led efforts to design innovative clinical training, education and workforce development space 105 TRANSFORMATIVE PRIVATE DEVELOPMENT 2035 Goal Phase 2 (2025) Goal 2022 Outcome Show quantifiable improvements in the availability of housing in DMC District, inclusive of housing type and affordability Housing: Advance one development into approval process 449 units between 30% to 50% AMI 150 units between 30- 50% AMI Housing: Cultivate relationships with five affordable housing developers 630 units between 50% to 80% AMI 210 units between 50- 80% AMI Develop 1.02M SF new Bio- Med-Tech space Develop 330,000 SF of Bio-Med-Tech space Discovery Square: Complete Two Discovery Square core and shell; develop shared multiple-purpose wet lab space Discovery Square: Refresh master plan, including identification of high-potential development initiatives Attract more than $5 billion in private investment Achieve the highest quality patient, visitor, and community member experience More than $1 billion of new private development, consistent with development plan, underway West Transit Village: Secure development partner and establish stakeholder-supported vision Pre-development Activation: Develop and execute an interim- use plan for vacant space and pre-development sites DMC Funding: Revise DMC Funding application process to allow for public infrastructure funding proposals by small and local businesses and property owners PLAN IMPLEMENTATION: ENERGY AND SUSTAINABILITY 2035 Goal Phase 2 (2025) Goal 2022 Outcome a) Reduce energy consumption by 25% below 2012 levels by 2030 b) Reduce potable water consumption below 2012 levels by 2030 c) Reduce total waste generated by 30% below 2012 levels by 2030 d) Reduce drive alone mode share to 50% or less by 2035 e) Reduce DMC-wide emissions per SF by 80% below 2005 levels by 2050 f) Create a sustainability culture in Rochester Reduce the emissions associated with the new construction and existing buildings sector Sustainable Buildings: Benchmarking program includes 153 buildings with 30 in the DMC District Sustainable Development: Advance one new project that models sustainable development Sustainable Development: Update the DMC Sustainable Building Policy Metrics: Monitor progress towards DMC's greenhouse gas, energy, and sustainability goals Progress toward DMC and Rochester GHG, energy and sustainability goals across sectors Emissions Reduction: Complete an Electric Vehicle Charging Infrastructure Plan and downtown charging facility to reduce emissions from transit sector Emissions Reduction: Begin Implementation of Sustainability and Resiliency Task Force (SRTF) plan led by City of Rochester and continue implementation of the Strategic Energy Project Plan 106 PLAN IMPLEMENTATION: HEALTH AND EQUITY IN ECONOMIC DEVELOPMENT 2035 Goal Phase 2 (2025) Goal 2022 Outcome Show quantifiable improvements in community health measures Apply health in design process to 10 infrastructure projects Equitable Economic Development: Five projects use community co-design process in 2022 Attract more than $5 billion in private investment Achieve the highest quality patient, visitor, and community member experience More than $1 billion of new private development underway Equitable Economic Development: Support the implementation of the Equitable Development work plan Health and Equity in Economic Development: Establish a baseline measure of current activities and identify opportunities for the future PLAN IMPLEMENTATION: TARGETED BUSINESS AND WORKFORCE UTILIZATION 2035 Goal Phase 2 (2025) Goal 2022 Outcome Ensure compliance with specific requirements of the DMC Act a) Women Workforce Participation: 7% b) Minority Workforce Participation: 15% c) Targeted Business Goal: 7% d) Heavy Construction Targeted Business Goal: 4% Targeted Business and Workforce Utilization: Operationalize MBE/WBE program for all DMC projects Targeted Business and Workforce Utilization: Apply MBE/WBE goals to City CIP projects with a total cost of $3 million or more bid in 2022 Metrics: Meet workforce and targeted business targets PLAN IMPLEMENTATION: COMMUNITY ENGAGEMENT 2035 Goal Phase 2 (2025) Goal 2022 Outcome Build a community of stakeholders that see themselves in the DMC vision Community reports higher understanding of the DMC initiative and its importance to the local community Community Engagement: Execute annual local, regional, and state strategies to sustain widespread support for the DMC initiative Metrics: Summarize and report out on best practices and principles used in DMC experience management strategies (prototyping, Business Forward, co-design, etc.) Community Engagement: Manage business and community relationships with key stakeholders and audiences through strategic partnerships, presentations, and other means PLAN IMPLEMENTATION: EXPERIENCE 2035 Goal Phase 2 (2025) Goal 2022 Outcome Achieve the highest quality patient, companion, visitor, employee, and resident experience Metrics: Develop, analyze, and monitor an experience dashboard that is utilized by the DMC EDA and key community partners Experience Improvement: Use experience dashboard measures to create an experience improvement action plan for DMC and key community partners 107 6. 2022 DMC EDA AND PROJECT MANAGEMENT TEAM BUDGETS The budget, developed to achieve the strategic development objectives and outcomes identified in the workplan, has been prepared by DMC EDA and DMC City of Rochester Project Management teams with the advice of DMC Corporation and DMC EDA board members and City of Rochester administrative leaders. The budget includes: • The 2022 DMC EDA funding request to the Destination Medical Center Corporation of $2,189,628, a year-over-year decrease in funding of $46,147 (-2.1%). • 2022 DMC EDA funding contributed by Mayo Clinic towards the operational, project, and program expenses of the DMC EDA totals $1,411,390, a year-over-year increase of $96,420 (+7.5%). • The 2022 DMC City of Rochester Project Management team funding request to the Destination Medical Center Corporation is $738,616, a year-over-year increase in funding of $42,401 (+6.1%). 2022 DMC EDA BUDGET 2022 DMC PROJECT MANAGEMENT TEAM BUDGET 108 DMCC Corporation 2022 Budget Worksheet Proposed 2015 2016 2017 2018 2019 2020 2020 2021 2021 2022 Account Description Actual Actual Actual Actual Actual Budget Actual Budget Actual 7/31 Budget DMC Corporation Revenues -3,602,320 -2,288,340 -2,471,264 (2,581,654) 1,161,491 Interest Earned 6 (14) 6 Building Rent 21,232 18,907 32,558 24,050 34,017 35,000 8,190 36,750 - 38,588$ (2) Rents and Leases 21,232 18,907 32,558 24,050 34,017 35,000 8,190 36,750 - 38,588 Audit Services 2,839 3,000 2,897 3,000 3,150 3,500 3,300 4,000 3,500 4,500 Legal Consultants 324,144 217,195 172,584 160,503 146,785 200,000 148,749 180,000 60,464 (1) 160,000 (3) Accounting Consultants 1,144 1,000 1,800 1,050 1,100 2,000 1,150 2,000 1,000 2,600 Other Expert & Professnl Srvc 13,913 17,333 11,145 7,994 10,418 20,000 7,865 20,000 1,811 15,000 Expert & Professional Services 342,040 238,528 188,426 172,547 161,452 225,500 161,064 206,000 66,775 182,100 Travel and training 976 538 0 272 322 5,000 153 5,000 - 5,000 Business meal expenses 0 35 0 0 1,000 - 1,000 - 1,000 Travel/Training/Business Meals 976 573 0 272 322 6,000 153 6,000 - 6,000 Comprehensive Liability Ins 17,601 15,303 16,136 14,171 13,607 20,000 14,055 20,000 12,025 20,000 Insurance - Misc others Insurance and Bonds 17,601 15,303 16,136 14,171 13,607 20,000 14,055 20,000 12,025 20,000 Contractual Services Contractual Services Professional & Contracted Srvcs 381,850 273,311 237,120 211,040 209,398 286,500 183,462 268,750 78,800 246,688 Other Supplies Supplies Materials and Supplies 0- Interest 54 13 19 27 20 5 4 Other Charges 25 25 25 25 25 Other Charges 54 38 44 52 45 - 30 0 4 0 Expenditures 381,903 273,349 237,164 211,093 209,443 286,500 183,493 268,750 78,804 246,688 Other Financing Uses DMC EDA Corporation - Net Revs - Exps -3,220,416 -2,014,991 2,234,105 2,370,576 1,052,444 2,570,147 2,129,448 2,235,776 1,060,062 City DMCC Project Management 660,524 402,178 696,215 292,416 Keep It Local Grants - COVID-19 Response 51,078 51,078 0 City Support Expenses 00 Total DMCC & EDA 2,471,269 2,581,669 1,261,887 3,568,249 2,766,197 3,200,741 1,431,283 246,688 (1) This amount reflects expenses from January - May, 2021; the amount of fees due or unbilled as of July 31, 2021 is $10,605.87 (2) This amount represents a 5% incresae for 2022 (3) This amount represents an 11% decrease for 2022 1364470.PDF 109 110 C. DESTINATION MEDICAL CENTER CORPORATION RESOLUTION NO. ___-2021 Approving the 2022 DMCC Funding Request and the Extension of Working Capital Loan and Authorizing Transmittal to the City of Rochester BACKGROUND RECITALS WHEREAS, the Destination Medical Center Corporation (“DMCC”) must adopt an annual Funding Request and Five Year Capital Plan. The DMCC Funding Request includes the DMCC annual budget, the Destination Medical Center Economic Development Agency (“EDA”) annual budget and work plan, and support costs incurred by the City of Rochester; and WHEREAS, on February 26, 2015, the DMCC adopted Resolution No. 26-2015, approving the form of and authorizing the Chair and Treasurer to execute, amend, and take other actions to implement the working capital loan documents to provide for advance funding of DMCC and EDA operations (collectively, the “Loan Documents”); and WHEREAS, the DMCC has completed the required annual reconciliation of the advances to the DMCC and the DMCC eligible expenses and has prepared a DMCC Request for Extension of the Working Capital Loan for 2022 in the amount of $1000, as such amount may be adjusted by the City pursuant to Section 2.8(c) of the Working Capital Loan Agreement (DMCC-City) effective April 1, 2014, as amended; and WHEREAS, the EDA has submitted an EDA Request for Extension of the Working Capital Loan for 2022, requesting that the Loan Documents be extended for 2022 in the amount of $100,000, as such amount may be adjusted by the City pursuant to Section 2.8(c) of the Working Capital Loan Agreement (DMCC-EDA), effective April 1, 2014, as amended, and has provided the required annual reconciliation of advances and eligible expenses paid from such advances; and WHEREAS, the DMCC and EDA Requests for Extension of the Working Capital Loan for 2022 are attached as Exhibit A. RESOLUTION NOW, THEREFORE, BE IT RESOLVED, by the Destination Medical Center Board of Directors that the 2022 DMCC Funding Request, and the Five Year Capital Plan, each on file with the DMCC, are approved. Further, the DMCC hereby approves the projects set forth in the first year of the Five Year Capital Plan as public infrastructure projects within the meaning of Minnesota Statutes Section 469.40, Subdivision 11, and consistent with the Development Plan, adopted on April 23, 2015, as amended; provided that 1) final approval of each of the capital projects will be subject to a later specific approval by the DMCC upon final determination of scope, costs and availability of funds; and 2) staff is directed to provide an annual reconciliation of budget amounts and expenditures for each of the capital projects. 111 2 BE IT FURTHER RESOLVED, the EDA Request for Extension of the Working Capital Loan for 2022, and the DMCC Request for Extension of the Working Capital Loan for 2022, attached as Exhibit A and on file with the DMCC, are approved. 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 the 2022 DMCC Funding Request, the Five Year Capital Plan, and the extension of the Loan Documents, including, but not limited to, the authority to execute, deliver, and perform, in the name of and on behalf of the DMCC, the DMCC Request for Extension of the Working Capital Loan for 2022 and the Loan Documents to which the DMCC is a party, with such modifications, additions, deletions, or other changes as the Chair and Treasurer may deem necessary or appropriate to accomplish the requested extension, all which may be performed without further action of this Board. 1366262-2.DOCX 112 EXHIBIT A DMCC REQUEST FOR EXTENSION OF WORKING CAPITAL LOAN FOR 2022 To: City of Rochester, Minnesota (the “City”) 1. The undersigned authorized representative (the “Representative”) of the Destination Medical Center Corporation (“DMCC”) hereby authorizes and requests an extension of the Term of the Working Capital Loan Agreement (DMCC-City), dated April 30, 2015, as amended, by and between the City and the DMCC (the “Agreement”) and renewals of the DMCC Note and the EDA Note, in the amount and on the date specified below, in order to pay certain DMCC Eligible Expenses and to provide the EDA Tranche to pay certain EDA Eligible Expenses, pursuant to the terms and conditions of the Agreement. Capitalized terms not otherwise defined herein shall have the meanings given them in the Agreement. 2. The Representative certifies that (i) attached as Attachment 1 is a true and correct annual reconciliation of the DMCC Tranche Advances made through July 31, 2021 and the DMCC Eligible Expenses paid from such Advances, as required by Section 2.6 of the Agreement; (ii) each item for which the DMCC sought payment in Attachment 1 was a DMCC Eligible Expense; and (iii) the Advances received by the DMCC have not exceeded the limitations set out in Section 2.4(a) of the Agreement. 3. The Representative further certifies that attached as Attachment 2 is a true and correct copy of the EDA Request for Extension of the Working Capital Loan for 2022. 4. The DMCC hereby requests an extension of the Agreement Term and renewals of the DMCC Note and the EDA Note, in the amount of $1,000.00 as the DMCC Tranche Advance and in the amount of $100,000.00 as the EDA Tranche Advance, as such amounts may be adjusted by the City pursuant to Section 2.8(c) of the Agreement, for payment of DMCC Eligible Expenses and, as to the EDA Tranche, for payment of EDA Eligible Expenses. 5. The Representative further certifies that no portion of the amount requested in paragraph 4 above constitutes a DMCC Excess Request under Section 2.3 of the Agreement. 6. The Representative further certifies that this statement and all exhibits and attachments hereto, and documents furnished in connection herewith, shall be conclusive evidence of the facts and statements set forth herein and shall constitute full warrant, protection, and authority to the City for its actions taken pursuant hereto. Dated: ________________, 2021 Authorized DMCC Representative 1366263-2.DOCX 113 ATTACHMENT 1: RECONCILIATION OF DMCC TRANCHE ADVANCES Through July 31, 2021 114 DM C C B a n k A c c o u n t Be g i n n i n g B a n k Ba l a n c e DM C C B a n k C h a r ge s Ad j u s t m e n t s - b a n k f e e s r e t u r n e d Ad j u s t m e n t s - c h a n g e i n am o u n t In t e r e s t E a r n i n g s ED A F u n d i n g R e q u e st e d Ac t u a l F u n d e d Ch e c k s Di f f e r e n c e En d i n g B a n k B a l a n c e Re c o n c i l i n g I t em s In t e r e s t Ba n k F e e s Ne t en d b a n k b a l a n c e di f f e r e n c e Ja n Fe b Ma r Ap r Ma y Ju n Ju l Au g Se p Oc t No v De c 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 89 9 . 1 1 13 2 , 3 7 6 . 2 6 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 41 , 4 3 4 . 7 2 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 10 3 . 7 3 10 0 . 8 9 10 0 . 3 8 10 3 . 2 7 10 5 . 2 5 10 1 . 6 4 10 7 . 3 5 67 , 1 6 8 . 3 7 20 2 , 3 5 9 . 6 6 12 3 , 7 5 7 . 7 1 24 5 , 3 3 9 . 7 0 13 8 , 5 3 2 . 9 9 19 7 , 5 8 3 . 0 2 12 4 , 2 7 4 . 4 4 67 , 2 7 2 . 1 0 20 2 , 3 5 9 . 6 6 25 5 , 3 3 5 . 2 4 11 5 , 3 6 6 . 7 1 13 8 , 6 3 8 . 2 4 24 2 , 6 1 9 . 3 8 83 , 9 4 7 . 0 7 1, 3 0 0 . 0 0 4, 5 0 0 . 0 0 10 3 . 7 3 - 13 1 , 5 7 7 . 5 3 (1 3 1 , 2 7 2 . 9 9 ) 10 5 . 2 5 40 , 5 3 6 . 3 6 (4 0 , 3 2 7 . 3 7 ) - - - - - 1, 0 0 0 . 0 0 89 9 . 1 1 13 2 , 3 7 6 . 2 6 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 41 , 4 3 4 . 7 2 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 - - - - - - - - - - - - - - - - - - - - - - - - 1, 0 0 0 . 0 0 89 9 . 1 1 13 2 , 3 7 6 . 2 6 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 41 , 4 3 4 . 7 2 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 89 9 . 1 1 13 1 , 3 7 6 . 2 6 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 40 , 4 3 4 . 7 2 1, 0 0 0 . 0 0 0. 0 0 0. 0 0 1, 0 0 0 . 0 0 0. 0 0 0. 0 0 1, 0 0 0 . 0 0 0. 0 0 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 20 2 1 AT T A C H M E N T 1 A1 - 1 115 DM C C B a n k A c c o u nt Be g i n n i n g B a nk B a l a n c e DM C C B a n k C h a r g e s Ad j u s t m e n t s - b a n k f e e s r e t u r n e d Ad j u s t m e n t s - c h a n g e in a m o u n t In t e r e s t E a r n i n g s ED A F u n d in g R e q u e s t e d Ac t u a l F u n d e d Ch e c k s Di f f e r e n c e En d i n g B a n k B a l a nc e Re c o n c i l i ng I t e m s In t e r e s t Ba n k F e e s Ne t en d b a n k b a la n c e di f f er e n c e Ja n Fe b Ma r Ap r Ma y Ju n Ju l Au g Se p Oc t No v De c 95 0 . 6 5 1, 5 9 8 . 6 5 1, 0 0 0 . 7 2 1, 0 0 0 . 6 4 1, 0 0 0 . 6 4 12 , 7 5 0 . 32 8, 6 5 0 . 3 2 6, 1 5 0 . 0 0 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 70 , 2 3 3 . 00 1, 0 0 0 . 0 0 10 1 . 5 0 10 3 . 5 7 10 0 . 3 0 10 3 . 5 9 61 . 3 4 82 . 4 1 87 . 6 9 10 5 . 5 7 10 2 . 6 8 99 . 7 1 10 6 . 1 8 99 . 0 9 32 4 95 8 1 0 82 7 0. 0 3 0. 4 0 0. 0 2 - - - - - 93 , 5 3 0 . 81 51 2 , 2 3 8 .2 6 12 5 , 0 3 1 .0 6 19 5 , 1 3 1 .8 9 18 3 , 1 0 4 .8 7 25 6 , 2 4 5 .7 8 14 8 , 8 6 3 .0 7 21 5 , 7 3 7 .9 0 28 5 , 8 3 2 .3 5 14 1 , 1 8 6 .1 5 16 4 , 4 8 7 .5 8 25 5 , 4 1 2 .8 8 93 , 9 5 6 . 28 51 1 , 7 4 3 .5 0 13 4 , 2 7 5 .9 1 19 6 , 0 3 5 .4 8 21 1 , 2 2 5 .5 6 27 3 , 3 4 6 .5 2 15 3 , 4 0 0 .4 4 21 7 , 8 4 3 .4 7 28 5 , 9 3 5 .0 3 15 7 , 3 4 3 .8 6 16 4 , 5 9 3 .7 6 25 4 , 6 8 4 .9 7 9, 1 4 4 . 6 5 80 0 . 0 0 16 , 3 0 9 . 67 21 , 1 1 8 . 33 6, 9 5 0 . 0 0 7, 1 5 0 . 0 0 - 42 , 6 3 5 . 00 69 , 2 3 3 . 00 - 42 5 . 4 7 (4 9 4 . 7 6) 10 0 . 2 0 10 3 . 5 9 11 , 8 1 1 . 02 (4 , 0 1 7 . 59 ) (2 , 4 1 2 . 63 ) (5 , 0 4 4 . 43 ) 10 2 . 6 8 (2 6 , 4 7 7 .2 9 ) (6 9 , 1 2 6 .8 2 ) (7 2 7 . 9 1) 1, 5 9 8 . 6 5 1, 0 0 0 . 7 2 1, 0 0 0 . 6 4 1, 0 0 0 . 6 4 12 , 7 5 0 . 32 8, 6 5 0 . 3 2 6, 1 5 0 . 0 0 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 70 , 2 3 3 . 00 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 - - - - - - - - - - - - - - - - - - - - - - - - 1, 5 9 8 . 6 5 1, 0 0 0 . 7 2 1, 0 0 0 . 6 4 1, 0 0 0 . 6 4 12 , 7 5 0 . 32 8, 6 5 0 . 3 2 6, 1 5 0 . 0 0 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 70 , 2 3 3 . 00 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 1, 5 9 8 . 6 5 1, 0 0 0 . 7 2 1, 0 0 0 . 6 4 1, 0 0 0 . 6 4 12 , 7 5 0 . 32 8, 6 5 0 . 3 2 6, 1 5 0 . 0 0 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 70 , 2 3 3 . 00 1, 0 0 0 . 0 0 1, 0 0 0 . 0 0 (0 . 0 0 ) (0 . 0 0 ) (0 . 0 0 ) (0 . 0 0 ) (0 . 0 0 ) (0 . 0 0 ) (0 . 0 0 ) (0 . 0 0 ) 0. 0 0 - 0. 0 0 0. 0 0 20 2 0 A1 - 2 116 ATTACHMENT 2: EDA REQUEST FOR EXTENSION OF THE WORKING CAPITAL LOAN FOR 2022 117 DESTINATION MEDICAL CENTER ECONOMIC DEVELOPMENT AGENCY Approving the 2022 DMC EDA Funding Request and the Extension of Working Capital Loan BACKGROUND RECITALS WHEREAS, the Destination Medical Center Corporation (“DMCC”) must adopt an annual Funding Request and Five Year Capital Plan. The DMCC Funding Request includes the DMCC annual budget, the Destination Medical Center Economic Development Agency (“EDA”) annual work plan and budget, and support costs incurred by the City of Rochester; and WHEREAS, the EDA has submitted an EDA Request for Extension of the Working Capital Loan, that the Loan Documents be extended for 2022 in the amount of $100,000, as such amount may be adjusted by the City pursuant to Section 2.8(c) of the Agreement, and has provided the required annual reconciliation of advances and eligible expenses paid from such advances. RESOLUTION NOW, THEREFORE, BE IT RESOLVED, by the Destination Medical Center Economic Development Agency Board of Directors that the 2022 EDA Funding Request and the EDA Request for Extension of the Working Capital Loan for 2022, are approved. __________________________________ Clark Otley, M.D. President $77$&+0(17 A2-1 118 EDA REQUEST FOR EXTENSION OF WORKING CAPITAL LOAN FOR 2022 To: Destination Medical Center Corporation City of Rochester, Minnesota 1. The undersigned authorized representative (the “Representative”) of the Destination Medical Center Economic Development Agency (“EDA”) hereby authorizes and requests an extension of the Term of the Working Capital Loan Agreement (DMCC-EDA), dated April 30, 2015, by and between the Destination Medical Center Corporation (“DMCC”) and the EDA (the “Agreement”), and a renewal of the EDA Note, in the amount and on the date specified below, in order to pay certain EDA Eligible Expenses pursuant to the terms and conditions of the Agreement. Capitalized terms not otherwise defined herein shall have the meanings given them in the Agreement. 2. The Representative certifies that (i) attached as Exhibit A is a true and correct annual reconciliation of the Advances made through July 31, 2021 and EDA Eligible Expenses paid from such Advances, as required by Section 2.6 of the Agreement; (ii) each item for which the EDA sought payment in Exhibit A was an EDA Eligible Expense; and (iii) the Advances received by the EDA have not exceeded the limitations set out in Section 2.4(b) of the Agreement. 3. The Representative hereby requests an extension of the Agreement Term and a renewal of the EDA Note through the period December 31, 2021, in the Maximum Aggregate EDA Advances amount of $100,000, as such amount may be adjusted by the City as provided in Section 2.8(c) of the Agreement, for payment of EDA Eligible Expenses pursuant to the terms and conditions of the Agreement. 4. The Representative further certifies that no portion of the amount requested in paragraph 3 above constitutes an EDA Excess Request under Section 2.3 of the Agreement. 5. The Representative further certifies that this statement and all exhibits and attachments hereto, and documents furnished in connection herewith, shall be conclusive evidence of the facts and statements set forth herein and shall constitute full warrant, protection, and authority to the DMCC for its actions taken pursuant hereto. Dated: September 15, 2021 Authorized EDA Representative A2-2 119 DM C E D A Op e r a t i n g A c c o u n t Re c o n c i l i a t i o n o f B a n k B a l a n c e t o A d v a n c e T o t a l Ba n k B a l a n c e D a t e : 8/ 3 1 / 2 0 2 0 Ba l a n c e p e r B a n k 65 , 8 0 4 . 5 8 $ Ad d : Ad v a n c e i n t r a n s i t f o r e x p e n s e c l e a r e d b a n k or e x p e n s e s n o t y e t r e q u e s t e d - Re c e i v a b l e 1, 0 9 4 . 3 0 $ C i t y - p a y r o l l 7 / 1 0 Re c e i v a b l e 1, 0 3 7 . 7 7 $ C i t y - p a y r o l l 7 / 2 4 Re c e i v a b l e 1, 0 5 9 . 3 0 $ C i t y - p a y r o l l 8 / 7 Re c e i v a b l e 1, 0 3 7 . 7 7 $ C i t y - p a y r o l l 8 / 2 1 Pa y r o l l - $ Bl u e C r o s s B l u e S h i e l d 5, 0 1 4 . 0 7 $ 8 / 2 1 / 2 0 2 0 Mi t e l 57 2 . 9 7 $ 8 / 2 1 / 2 0 2 0 Le s s : Ad v a n c e f o r e x p e n s e s n o t c l e a r e d : Mi s c C C C (1 5 5 . 8 2 ) $ r e m a i n i n g c r e d i t c a r d c r e d i t Ou t s t a n d i n g c h e c k (4 6 4 . 9 4 ) $ A r n o l d ' s Ad v a n c e T o t a l r e c o n c i l e d 75 , 0 0 0 . 0 0 $ EX H I B I T A : R E C O N C I L I A T I O N O F E D A A D V A N C E S Th r o u g h J u l y 3 1 , 2 0 2 1 A2 - 3 120 DM C E D A Op e r a t i n g A c c o u n t Re c o n c i l i a t i o n o f B a n k B a l a n c e t o A d v a n c e T o t a l Ba n k B a l a n c e D a t e : 9/ 3 0 / 2 0 2 0 Ba l a n c e p e r B a n k 65 , 2 0 4 . 7 3 $ Ad d : Ad v a n c e i n t r a n s i t f o r e x p e n s e c l e a r e d b a n k or e x p e n s e s n o t y e t r e q u e s t e d - Re c e i v a b l e 1, 0 9 4 . 3 0 $ C i t y - p a y r o l l 7 / 1 0 Re c e i v a b l e 1, 0 3 7 . 7 7 $ C i t y - p a y r o l l 7 / 2 4 Re c e i v a b l e 1, 0 5 9 . 3 0 $ C i t y - p a y r o l l 8 / 7 Re c e i v a b l e 1, 0 3 7 . 7 7 $ C i t y - p a y r o l l 8 / 2 1 Re c e i v a b l e 1, 0 5 9 . 3 0 $ C i t y - p a y r o l l 9 / 4 Re c e i v a b l e 1, 0 3 7 . 7 7 $ C i t y - p a y r o l l 9 / 1 8 Pa y r o l l - $ Bl u e C r o s s B l u e S h i e l d 4, 0 1 1 . 2 5 $ 9 / 2 2 / 2 0 2 0 Mi t e l 57 2 . 9 7 $ 9 / 2 3 / 2 0 2 0 Li n c o l n N a t i o n a l L i f e (9 5 9 . 3 4 ) $ 9 / 2 - r e q u e s t e d t w i c e / a d j u s t n e x t T A R Le s s : Ad v a n c e f o r e x p e n s e s n o t c l e a r e d : Mi s c C C C (1 5 5 . 8 2 ) $ r e m a i n i n g c r e d i t c a r d c r e d i t Ad v a n c e T o t a l r e c o n c i l e d 75 , 0 0 0 . 0 0 $ A2 - 4 121 A2 - 5 122 DM C E D A Op e r a t i n g A c c o u n t Re c o n c i l i a t i o n o f B a n k B a l a n c e t o A d v a n c e T o t a l Ba n k B a l a n c e D a t e : 11 / 3 0 / 2 0 2 0 Ba l a n c e p e r B a n k 32 , 6 0 6 . 3 2 $ Ad d : Ad v a n c e i n t r a n s i t f o r e x p e n s e c l e a r e d b a n k or e x p e n s e s n o t y e t r e q u e s t e d - Re c e i v a b l e 1, 0 9 4 . 3 0 $ Ci t y - p a y r o l l 7 / 1 0 Re c e i v a b l e 1, 0 3 7 . 7 7 $ Ci t y - p a y r o l l 7 / 2 4 Re c e i v a b l e 1, 0 5 9 . 3 0 $ Ci t y - p a y r o l l 8 / 7 Re c e i v a b l e 1, 0 3 7 . 7 7 $ Ci t y - p a y r o l l 8 / 2 1 Re c e i v a b l e 1, 0 5 9 . 3 0 $ Ci t y - p a y r o l l 9 / 4 Re c e i v a b l e 1, 0 3 7 . 7 7 $ Ci t y - p a y r o l l 9 / 1 8 Re c e i v a b l e 1, 0 9 4 . 3 0 $ Ci t y - p a y r o l l 1 0 / 2 Re c e i v a b l e 1, 0 3 7 . 7 7 $ Ci t y - p a y r o l l 1 0 / 1 6 Re c e i v a b l e 94 2 . 5 1 $ Ci t y - p a y r o l l 1 0 / 3 0 Re c e i v a b l e 1, 0 5 9 . 3 0 $ Ci t y - p a y r o l l 1 1 / 1 3 Pa y r o l l 1 1 / 2 5 2, 8 2 6 . 0 7 $ 13 5 . 0 0 $ 24 5 . 7 6 $ 7, 6 1 0 . 8 6 $ 16 , 8 7 6 . 2 0 $ 27 , 6 9 3 . 8 9 $ Bl u e C r o s s B l u e S h i e l d 5, 0 1 4 . 0 7 $ 11 / 2 3 / 2 0 2 0 Mi t e l 57 3 . 2 6 $ 11 / 2 3 / 2 0 2 0 Le s s : Ad v a n c e f o r e x p e n s e s n o t c l e a r e d : Mi s c CC C (1 5 5 . 8 2 ) $ re m a i n i n g c r e d i t c a r d c r e d i t Pa y a b l e (9 5 9 . 3 4 ) $ 10 / 2 L i n c o l n d o u b l e r e q u e s t e d Ou t s t a n d i n g c h e c k (2 3 2 . 4 7 ) $ Ar n o l d s c h e c k 1 1 / 6 Ad v a n c e T o t a l r e c o n c i l e d 75 , 0 0 0 . 0 0 $ A2 - 6 123 DM C E D A Op e r a t i n g A c c o u n t Re c o n c i l i a t i o n o f B a n k B a l a n c e t o A d v a n c e T o t a l Ba n k B a l a n c e D a t e : 12 / 3 1 / 2 0 2 0 Ba l a n c e p e r B a n k : 17 0 , 5 6 1 . 8 4 $ Ad d : Ad v a n c e i n t r a n s i t f o r e x p e n s e c l e a r e d b a n k or e x p e n s e s n o t y e t r e q u e s t e d - Pa y r o l l - $ Bl u e C r o s s B l u e S h i e l d 5, 0 1 4 . 0 7 $ 12 / 2 2 / 2 0 2 0 Mi t e l 57 3 . 2 6 $ 12 / 2 2 / 2 0 2 0 Le s s : Ad v a n c e f o r e x p e n s e s n o t c l e a r e d : Mi s c CC C (1 5 5 . 8 2 ) $ re m a i n i n g c r e d i t c a r d c r e d i t Pa y a b l e (9 5 9 . 3 4 ) $ 10 / 2 L i n c o l n d o u b l e r e q u e s t e d Pa y a b l e (7 0 , 0 3 4 . 0 1 ) $ Mc K n i g h t c h e c k s Pa y a b l e (3 0 , 0 0 0 . 0 0 ) $ ca s h f l o w Ou t s t a n d i n g c h e c k Ad v a n c e T o t a l r e c o n c i l e d 75 , 0 0 0 . 0 0 $ A2 - 7 124 DM C E D A Op e r a t i n g A c c o u n t Re c o n c i l i a t i o n o f B a n k B a l a n c e t o A d v a n c e T o t a l Ba n k B a l a n c e D a t e : 1/ 3 1 / 2 0 2 1 Ba l a n c e p e r B a n k : 33 , 7 6 3 . 3 6 $ Ad d : Ad v a n c e i n t r a n s i t f o r e x p e n s e c l e a r e d b a n k or e x p e n s e s n o t y e t r e q u e s t e d - Re c e i v a b l e 1, 1 2 3 . 7 7 $ C i t y - p a y r o l l 1 / 8 Pa y r o l l 22 5 . 0 0 $ 24 5 . 7 6 $ 10 , 0 9 3 . 0 5 $ 19 , 2 7 2 . 6 6 $ 2, 9 7 0 . 1 5 $ 32 , 8 0 6 . 6 2 $ Bl u e C r o s s B l u e S h i e l d 5, 0 1 4 . 0 7 $ 1 / 2 1 / 2 0 2 1 Mi t e l 57 5 . 4 8 $ 1 / 2 0 / 2 0 2 1 Le s s : Ad v a n c e f o r e x p e n s e s n o t c l e a r e d : Mi s c C C C (1 5 5 . 8 2 ) $ r e m a i n i n g c r e d i t c a r d c r e d i t CC C 34 . 0 0 $ CC C 3, 2 9 7 . 8 6 $ Pa y a b l e (9 5 9 . 3 4 ) $ 1 0 / 2 L i n c o l n d o u b l e r e q u e s t e d Pa y a b l e (5 0 0 . 0 0 ) $ M c K n i g h t c h e c k s Ou t s t a n d i n g c h e c k Ad v a n c e T o t a l r e c o n c i l e d 75 , 0 0 0 . 0 0 $ A2 - 8 125 DM C E D A Op e r a t i n g A c c o u n t Re c o n c i l i a t i o n o f B a n k B a l a n c e t o A d v a n c e T o t a l Ba n k B a l a n c e D a t e : 2/ 2 8 / 2 0 2 1 Ba l a n c e p e r B a n k : 52 , 8 3 6 . 3 7 $ Ad d : Ad v a n c e i n t r a n s i t f o r e x p e n s e c l e a r e d b a n k or e x p e n s e s n o t y e t r e q u e s t e d - Re c e i v a b l e 1, 1 2 3 . 7 7 $ C i t y - p a y r o l l 1 / 8 Re c e i v a b l e 1, 0 6 7 . 1 9 $ C i t y - p a y r o l l 1 / 2 2 Re c e i v a b l e 1, 0 8 8 . 7 7 $ C i t y - p a y r o l l 2 / 5 Re c e i v a b l e Pa y r o l l 22 5 . 0 0 $ 24 5 . 7 6 $ 10 , 0 5 3 . 3 9 $ 19 , 1 6 0 . 2 7 $ 3, 1 1 5 . 1 4 $ 32 , 7 9 9 . 5 6 $ 2 / 1 8 / 2 0 2 1 Pa y r o l l a d j u s t m e n t 92 . 8 5 $ 42 7 . 8 1 $ 52 0 . 6 6 $ 2 / 2 3 / 2 0 2 1 Bl u e C r o s s B l u e S h i e l d 5, 0 1 4 . 0 7 $ 2 / 2 3 / 2 0 2 1 Mi t e l 57 5 . 4 8 $ 2 / 2 2 / 2 0 2 1 Le s s : Ad v a n c e f o r e x p e n s e s n o t c l e a r e d : Mi s c C C C (1 5 5 . 8 2 ) $ r e m a i n i n g c r e d i t c a r d c r e d i t CC C 18 . 0 0 $ 2 / 2 3 / 2 0 2 1 CC C 1, 7 5 0 . 9 6 $ 2 / 2 5 / 2 0 2 1 Pa y a b l e (9 5 9 . 3 4 ) $ 1 0 / 2 L i n c o l n d o u b l e r e q u e s t e d Pa y a b l e (2 0 , 0 0 0 . 0 0 ) $ ca s h f l o w / m o n e y f r o m E v e n t s a c c o u n t Ou t s t a n d i n g c h e c k (4 4 7 . 2 0 ) $ M e d C i t y E l e c t r i c Ou t s t a n d i n g c h e c k (2 3 2 . 4 7 ) $ A r n o l d s Ad v a n c e T o t a l r e c o n c i l e d 75 , 0 0 0 . 0 0 $ A2 - 9 126 DM C E D A Op e r a t i n g A c c o u n t Re c o n c i l i a t i o n o f B a n k B a l a n c e t o A d v a n c e T o t a l Ba n k B a l a n c e D a t e : 3/ 3 1 / 2 0 2 1 Ba l a n c e p e r B a n k : 86 , 7 4 0 . 8 5 $ Ad d : Ad v a n c e i n t r a n s i t f o r e x p e n s e c l e a r e d b a n k or e x p e n s e s n o t y e t r e q u e s t e d - Re c e i v a b l e 1, 1 2 3 . 7 7 $ C i t y - p a y r o l l 1 / 8 Re c e i v a b l e 1, 0 6 7 . 1 9 $ C i t y - p a y r o l l 1 / 2 2 Re c e i v a b l e 1, 0 8 8 . 7 7 $ C i t y - p a y r o l l 2 / 5 Re c e i v a b l e 1, 0 6 7 . 2 0 $ C i t y - p a y r o l l 2 / 1 8 Re c e i v a b l e 1, 0 8 8 . 7 7 $ C i t y - p a y r o l l 3 / 5 Re c e i v a b l e 1, 0 6 7 . 1 9 $ C i t y - p a y r o l l 3 / 1 9 Ch e c k 9, 7 2 1 . 6 1 $ C i t y p a y r o l l t r u e u p - t r a n s f e r f r o m E v e n t s Pa y r o l l 1, 0 3 8 . 8 9 $ 1, 0 3 8 . 8 9 $ 3 / 2 2 / 2 0 2 1 W i r e f e e 26 . 0 0 $ Bl u e C r o s s B l u e S h i e l d 5, 0 1 4 . 0 7 $ 3 / 2 3 / 2 0 2 1 Mi t e l 57 5 . 4 8 $ 3 / 2 2 / 2 0 2 1 Le s s : Ad v a n c e f o r e x p e n s e s n o t c l e a r e d : Mi s c C C C (1 5 5 . 8 2 ) $ r e m a i n i n g c r e d i t c a r d c r e d i t CC C (3 , 4 8 1 . 0 7 ) $ 3 / 4 s t m t CC C Pa y a b l e (9 5 9 . 3 4 ) $ 1 0 / 2 L i n c o l n d o u b l e r e q u e s t e d Pa y a b l e (2 0 , 0 0 0 . 0 0 ) $ ca s h f l o w / m o n e y f r o m E v e n t s a c c o u n t Pa y a b l e (1 0 , 0 0 0 . 0 0 ) $ ca s h f l o w / m o n e y f r o m E v e n t s a c c o u n t Pa y a b l e (2 3 . 5 6 ) $ P a y r o l l c r e d i t Ou t s t a n d i n g c h e c k Ad v a n c e T o t a l r e c o n c i l e d 75 , 0 0 0 . 0 0 $ A2 - 1 0 127 DM C E D A Op e r a t i n g A c c o u n t Re c o n c i l i a t i o n o f B a n k B a l a n c e t o A d v a n c e T o t a l Ba n k B a l a n c e D a t e : 4/ 3 0 / 2 0 2 1 Ba l a n c e p e r B a n k : 33 , 6 5 1 . 2 4 $ Ad d : Ad v a n c e i n t r a n s i t f o r e x p e n s e c l e a r e d b a n k or e x p e n s e s n o t y e t r e q u e s t e d - Re c e i v a b l e 1, 1 2 3 . 7 7 $ Ci t y - p a y r o l l 1 / 8 Re c e i v a b l e 1, 0 6 7 . 1 9 $ Ci t y - p a y r o l l 1 / 2 2 Re c e i v a b l e 1, 0 8 8 . 7 7 $ Ci t y - p a y r o l l 2 / 5 Re c e i v a b l e 1, 0 6 7 . 2 0 $ Ci t y - p a y r o l l 2 / 1 8 Re c e i v a b l e 1, 0 8 8 . 7 7 $ Ci t y - p a y r o l l 3 / 5 Re c e i v a b l e 1, 0 6 7 . 1 9 $ Ci t y - p a y r o l l 3 / 1 9 Re c e i v a b l e 1, 1 2 3 . 7 7 $ Ci t y - p a y r o l l 4 / 2 Re c e i v a b l e 1, 0 6 7 . 1 2 $ Ci t y - p a y r o l l 4 / 1 6 Pa y r o l l 1, 0 3 8 . 8 9 $ 3/ 2 2 / 2 0 2 1 Pa y r o l l 22 5 . 0 0 $ 23 0 . 7 6 $ 10 , 4 9 4 . 8 9 $ 20 , 1 4 0 . 1 8 $ (3 , 8 8 0 . 7 6 ) $ 27 , 2 1 0 . 0 7 $ 4/ 3 0 / 2 0 2 1 Bl u e C r o s s B l u e S h i e l d 5, 0 1 4 . 0 7 $ 4/ 2 1 / 2 0 2 1 Mi t e l 51 9 . 2 9 $ 4/ 2 1 / 2 0 2 1 Ao n 99 7 . 0 0 $ Le s s : Ad v a n c e f o r e x p e n s e s n o t c l e a r e d : Mi s c CC C (1 5 5 . 8 2 ) $ re m a i n i n g c r e d i t c a r d c r e d i t CC C CC C Pa y a b l e (4 3 . 7 5 ) $ Fi d e l i t y Pa y a b l e (8 0 . 5 0 ) $ Le a g u e o f M N C i t i e s Pa y a b l e (1 , 8 4 4 . 2 7 ) $ Ha r l e y s v i l l e Pa y a b l e Ou t s t a n d i n g c h e c k Ad v a n c e T o t a l r e c o n c i l e d 75 , 0 0 0 . 0 0 $ A2 - 1 1 128 DM C E D A Op e r a t i n g A c c o u n t Re c o n c i l i a t i o n o f B a n k B a l a n c e t o A d v a n c e T o t a l Ba n k B a l a n c e D a t e : 5/ 3 1 / 2 0 2 1 Ba l a n c e p e r B a n k : 32 , 5 6 3 . 1 2 $ Ad d : Ad v a n c e i n t r a n s i t f o r e x p e n s e c l e a r e d b a n k or e x p e n s e s n o t y e t r e q u e s t e d - Re c e i v a b l e 1, 1 2 3 . 7 7 $ Ci t y - p a y r o l l 1 / 8 Re c e i v a b l e 1, 0 6 7 . 1 9 $ Ci t y - p a y r o l l 1 / 2 2 Re c e i v a b l e 1, 0 8 8 . 7 7 $ Ci t y - p a y r o l l 2 / 5 Re c e i v a b l e 1, 0 6 7 . 2 0 $ Ci t y - p a y r o l l 2 / 1 8 Re c e i v a b l e 1, 0 8 8 . 7 7 $ Ci t y - p a y r o l l 3 / 5 Re c e i v a b l e 1, 0 6 7 . 1 9 $ Ci t y - p a y r o l l 3 / 1 9 Re c e i v a b l e 1, 1 2 3 . 7 7 $ Ci t y - p a y r o l l 4 / 2 Re c e i v a b l e 1, 0 6 7 . 1 2 $ Ci t y - p a y r o l l 4 / 1 6 Re c e i v a b l e 97 0 . 1 9 $ Ci t y - p a y r o l l 4 / 3 0 Re c e i v a b l e 1, 0 9 6 . 2 6 $ Ci t y - p a y r o l l 5 / 1 4 Re c e i v a b l e Ci t y - p a y r o l l 5 / 2 8 Pa y r o l l Pa y r o l l 22 5 . 0 0 $ 23 0 . 7 6 $ 10 , 2 1 0 . 7 9 $ 19 , 9 1 4 . 1 6 $ (4 , 2 6 1 . 8 2 ) $ 26 , 3 1 8 . 8 9 $ 5/ 2 8 / 2 0 2 1 Mi t e l 51 9 . 2 9 $ 5/ 2 0 / 2 0 2 1 Bl u e C r o s s B l u e S h i e l d 5, 0 1 4 . 0 7 $ 5/ 2 1 / 2 0 2 1 In t u i t 12 6 . 4 9 $ Le s s : Ad v a n c e f o r e x p e n s e s n o t c l e a r e d : Mi s c CC C (1 5 5 . 8 2 ) $ re m a i n i n g c r e d i t c a r d c r e d i t CC C CC C Ou t s t a n d i n g c h e c k (4 3 . 7 5 ) $ Fi d e l i t y Ou t s t a n d i n g c h e c k (1 0 2 . 5 2 ) $ Sm i t h S c h a f e r Ad v a n c e T o t a l r e c o n c i l e d 75 , 0 0 0 . 0 0 $ A2 - 1 2 129 DM C E D A Op e r a t i n g A c c o u n t Re c o n c i l i a t i o n o f B a n k B a l a n c e t o A d v a n c e T o t a l Ba n k B a l a n c e D a t e : 6/ 3 0 / 2 0 2 1 Ba l a n c e p e r B a n k : 29 , 3 6 3 . 2 2 $ Ad d : Ad v a n c e i n t r a n s i t f o r e x p e n s e c l e a r e d b a n k or e x p e n s e s n o t y e t r e q u e s t e d - Re c e i v a b l e 1, 1 2 3 . 7 7 $ Ci t y - p a y r o l l 1 / 8 Re c e i v a b l e 1, 0 6 7 . 1 9 $ Ci t y - p a y r o l l 1 / 2 2 Re c e i v a b l e 1, 0 8 8 . 7 7 $ Ci t y - p a y r o l l 2 / 5 Re c e i v a b l e 1, 0 6 7 . 2 0 $ Ci t y - p a y r o l l 2 / 1 8 Re c e i v a b l e 1, 0 8 8 . 7 7 $ Ci t y - p a y r o l l 3 / 5 Re c e i v a b l e 1, 0 6 7 . 1 9 $ Ci t y - p a y r o l l 3 / 1 9 Re c e i v a b l e 1, 1 2 3 . 7 7 $ Ci t y - p a y r o l l 4 / 2 Re c e i v a b l e 1, 0 6 7 . 1 2 $ Ci t y - p a y r o l l 4 / 1 6 Re c e i v a b l e 97 0 . 1 9 $ Ci t y - p a y r o l l 4 / 3 0 Re c e i v a b l e 1, 0 9 6 . 2 6 $ Ci t y - p a y r o l l 5 / 1 4 Re c e i v a b l e 1, 0 6 5 . 4 6 $ Ci t y - p a y r o l l 5 / 2 8 Re c e i v a b l e 1, 0 8 6 . 9 9 $ Ci t y - p a y r o l l 6 / 1 1 Re c e i v a b l e Ci t y - p a y r o l l 6 / 2 5 Pa y r o l l Pa y r o l l 75 . 0 0 $ 24 5 . 7 6 $ 8, 5 3 8 . 5 2 $ 17 , 1 3 6 . 0 4 $ 2, 7 8 9 . 9 6 $ 28 , 7 8 5 . 2 8 $ Pa y r o l l 6 / 2 8 Mi t e l 51 9 . 2 9 $ 6/ 2 2 / 2 0 2 1 Bl u e C r o s s B l u e S h i e l d 3, 6 4 0 . 3 5 $ 6/ 2 3 / 2 0 2 1 Le s s : Ad v a n c e f o r e x p e n s e s n o t c l e a r e d : Mi s c CC C (1 5 5 . 8 2 ) $ re m a i n i n g c r e d i t c a r d c r e d i t CC C Ou t s t a n d i n g c h e c k (6 5 . 0 0 ) $ Na t i o n w i d e Ad v a n c e T o t a l r e c o n c i l e d 75 , 0 0 0 . 0 0 $ A2 - 1 3 130 DM C E D A Op e r a t i n g A c c o u n t Re c o n c i l i a t i o n o f B a n k B a l a n c e t o A d v a n c e T o t a l Ba n k B a l a n c e D a t e : 7/ 3 1 / 2 0 2 1 Ba l a n c e p e r B a n k : 55 , 5 5 6 . 1 9 $ Ad d : Ad v a n c e i n t r a n s i t f o r e x p e n s e c l e a r e d b a n k or e x p e n s e s n o t y e t r e q u e s t e d - Re c e i v a b l e 1, 1 2 3 . 7 7 $ Ci t y - p a y r o l l 1 / 8 Re c e i v a b l e 1, 0 6 7 . 1 9 $ Ci t y - p a y r o l l 1 / 2 2 Re c e i v a b l e 1, 0 8 8 . 7 7 $ Ci t y - p a y r o l l 2 / 5 Re c e i v a b l e 1, 0 6 7 . 2 0 $ Ci t y - p a y r o l l 2 / 1 8 Re c e i v a b l e 1, 0 8 8 . 7 7 $ Ci t y - p a y r o l l 3 / 5 Re c e i v a b l e 1, 0 6 7 . 1 9 $ Ci t y - p a y r o l l 3 / 1 9 Re c e i v a b l e 1, 1 2 3 . 7 7 $ Ci t y - p a y r o l l 4 / 2 Re c e i v a b l e 1, 0 6 7 . 1 2 $ Ci t y - p a y r o l l 4 / 1 6 Re c e i v a b l e 97 0 . 1 9 $ Ci t y - p a y r o l l 4 / 3 0 Re c e i v a b l e 1, 0 9 6 . 2 6 $ Ci t y - p a y r o l l 5 / 1 4 Re c e i v a b l e 1, 0 6 5 . 4 6 $ Ci t y - p a y r o l l 5 / 2 8 Re c e i v a b l e 1, 0 8 6 . 9 9 $ Ci t y - p a y r o l l 6 / 1 1 Re c e i v a b l e 1, 0 6 5 . 4 5 $ Ci t y - p a y r o l l 6 / 2 5 Re c e i v a b l e 1, 2 1 9 . 1 1 $ Ci t y - p a y r o l l 7 / 9 Re c e i v a b l e 1, 1 6 2 . 5 8 $ Ci t y - p a y r o l l 7 / 2 3 Pa y r o l l Pa y r o l l - $ Mi t e l 51 8 . 7 9 $ 7/ 2 2 / 2 0 2 1 Bl u e C r o s s B l u e S h i e l d 2, 9 5 3 . 4 9 $ 7/ 2 2 / 2 0 2 1 Le s s : Ad v a n c e f o r e x p e n s e s n o t c l e a r e d : Mi s c CC C (1 5 5 . 8 2 ) $ re m a i n i n g c r e d i t c a r d c r e d i t CC C Ou t s t a n d i n g c h e c k (2 3 2 . 4 7 ) $ Ar n o l d s Ad v a n c e T o t a l r e c o n c i l e d 75 , 0 0 0 . 0 0 $ A2 - 1 4 131 132 Discovery Square To: DMC Corp. Board of Directors From: DMC EDA Date: September 24, 2021 Request of the board of directors for Discovery Walk: 1. Set a not-to-exceed total project budget of $18.52M for Discovery Walk. 2. Designate the snowmelt system (Add Alt1) and the Community Space Structures (Add Alt 2) as DMC Public Infrastructure Projects and include them in the Discovery Walk Project. 3. Notes: a. Base project bid package came in at $15.55M, or $1.25M under the original base project budget. b. If approved, construction as planned would commence early 2022 and be completed in 2023. Prior Direction on Discovery Walk from the DMCC Board: • Approved budget = $16.8M, based on 2018 conceptual design documents. • Include Snowmelt and Community Spaces as add alts in the bid package. • Final project scope and budget will be determined after responses to final bids. Other Discovery Square Updates: • Two Discovery Square core and shell should be complete by year end. • Tenant recruitment discussions going well, good prospects for organizations on all floors. • Early discussions under way about a Phase 3 project. • Mayo Clinic Kellen Building construction has begun. • Construction has begun on a 1,200-stall parking structure on the 400 block of 3rd Ave SW, including street level retail space. 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 2020 operating and CIP funds, including the design documentation of Discovery Walk. 133 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 Two Discovery Square construction begins 2021 Discovery Walk RFP 134 D. DESTINATION MEDICAL CENTER CORPORATION RESOLUTION NO. ___-2021 Providing Final Approval for the Expenditure of Funds from the 2021 and 2022 CIP Budget for the Discovery Walk Project BACKGROUND RECITALS A. Extensive planning and effort have been devoted to the 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, with an overall project budget of $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. By Resolution 114-2021, adopted on March 23, 2021, the DMCC approved an expanded scope of the construction bid documents to include add-alternates for a snow-melt system and weather shelters. C. The City has received bid responses for Discovery Walk, and construction is expected to occur in 2022 and 2023. Staff report that the bid responses reflect a base project cost of $15,560,000 (under budget); an add-alternate for the snow melt system cost of $858,000; and an add-alternate for three community spaces (weather-protected outdoor seating), which will be re-bid at an estimated amount of $2,100,000. The total recommended project costs are $18,520,000, an increase of $1,720,000. D. The City and EDA staff now request final approval of the 2021 CIP in the amount of $7,000,000 and final approval of the 2022 Five Year Capital Improvement Plan adopted of even date (the “2022 CIP”) in the amount of $7,000,000 for the construction of Discovery Walk. The 2022 CIP also budgets for construction costs of $1,720,000 for the year 2023. Staff requests approval of the Discovery Walk snow melt system and three community spaces as a public infrastructure project. 135 RESOLUTION NOW THEREFORE, BE IT RESOLVED, by the Destination Medical Center Corporation Board of Directors that the DMCC finds that Discovery Walk addition of a snow melt system and three community spaces is a public infrastructure project within the meaning of Minnesota Statutes, Section 469.40, subdivision 11, which provides for: installing and constructing or reconstructing 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, streetscape improvements, drainage systems, sewer and water systems, subgrade structures and associated improvements, landscaping, and other components of community infrastructure, as well as site improvements. The DMCC approves these additions to the project as consistent with the Development Plan BE IT FURTHER RESOLVED, that the Board approves payment for construction of Discovery Walk in the amount of $7,000,000 for the 2021 CIP and $7,000,000 for the 2022 CIP. BE IT FURTHER RESOLVED, that the Board supports the City in its bid process for this project and requests that the City and EDA staff provide regular updates with respect to Discovery Walk. 1369681-7.DOCX 136 Mobility To: DMC Corp. Board of Directors From: DMC EDA Date: September 24, 2021 Request of the board of directors: • Feedback on Station Design and Proximity to Climate Control • Confirmation on Principles of Vehicle Design Background: A multi-modal mobility strategy for the DMC has been developed that includes the implementation of a Rapid Transit Circulator, which is the current focus of DMC’s mobility infrastructure investments. Since the last Board meeting, the following updates have occurred: - The project received the anticipated Medium-High rating from FTA and was included in the annual Federal budget - The direct connection between the stations and the climate-controlled areas has been improved, particularly with the addition of direct subway connections at St. Marys and 2nd Street / Hilton - West Transit Village (WTV) development partner process has kicked off - Brand Identity finalized - Rapid Transit station prototype open Sept. 13-30 The following two areas are in development and we anticipate Board discussion and goal setting: - Station Design and Proximity to Climate Control - Vehicle Design: procurement will occur in 2023; design preferences outlined by end of 2022 Fulfilling the DMC Vision, Mission, and/or Goals: DMC EDA Staff are working in collaboration with the City staff and external consultant team led by SRF to develop the design of Rochester Rapid Transit. DMC is particularly focused on the end-to-end user experience of transportation across every mode of mobility, with the goal of creating a world-class experience that centers equity of access and foregrounds BRT as a desirable consumer choice. Approvals, milestones, and decision points: 137 138 Accessing DMC Funding To: DMC Corp. Board of Directors From: DMC EDA Date: September 24, 2021 Request of the DMCC Board: Direct the DMC EDA to develop a funding application process for small and medium-sized development projects, for review at the November 2021 DMCC board meeting. Prior Direction from the DMCC Board: •From the Five-Year report issued in 2020, DMCC directed staff to focus on: o Supporting existing local businesses o Prioritizing public infrastructure o Reusing excess real estate capacity creatively o Diversifying the economy o Supporting development proactively •In May 2021 DMCC directed staff to investigate how funding might be made available to small business owners to aid in economic recovery and downtown retail revitalization. Background: •Since inception, DMC capital has accessed by projects involving large scale developments and city infrastructure projects. •To accelerate the economic recovery of the DMC district, we propose to develop a mechanism for DMC capital to be made accessible for small- and medium-scale development projects. •These funds could complement the existing RDA Façade Improvement Grant program and the MN Main Street Economic Revitalization Program grant (should it be funded). Why a Small Project Capital Strategy? •Access to capital is a challenge for small business owners, especially BIPOC and/or new businesses. •Additionally, COVID-19 has meant businesses and building operators need to utilize their space differently. •Provide resources to under-served communities, an unrealized source of innovation and investment. •Support small business owners and entrepreneurs to launch and grow businesses. Status and Next Steps •Secure approval to develop an application program. Approvals, milestones, and decision points: 139 Sept 2021 Secure approval to develop an application process and management program November 2021 Secure approval to launch the program. February 2022 Post RFP, and then disburse first round of funds Sept 2022 Report outcomes from Round 1 projects 140 Heart of the City To: DMC Corp. Board of Directors From: DMC EDA Date: September 24, 2021 Request of the board of directors: • No Action Requested Background: Heart of the City Phase 1 The first phase of Destination Medical Center’s Heart of the City public realm project is a renovation of the east side of Peace Plaza and surrounding areas. The new design creates active, engaging experiences for residents, visitors and patients in the heart of downtown Rochester. Known as Heart of the City Phase 1, it is focused on the redevelopment of three areas in the heart of downtown Rochester: East side of Peace Plaza, 1st Ave. SW between 2nd Street SW and W. Center Street and the adjacent alleys. The updates will provide enhanced safety measures, including curbless streets, and provide greater accessibility for people of all abilities. Movable seating options will allow for a variety of public programming. The addition of more trees as well as interactive art displays and water features will create a family-friendly space to gather in the downtown area. The project broke ground in April 2020 and is expected to finish in Fall 2021. Business Forward Strategy The Heart of the City team continues to use the Business Forward Strategy as a guide while working with the downtown stakeholders to finish construction. Business Forward Strategy principles include: • Access, Safety and Smart Micro-Construction Phasing • Communication • Activation and Programming **These principles are being applied in ways that are mindful of the social-distancing and other safety precautions necessary to avoid COVID-19 transmission. These improvements, plus continual aggressive planning will have a dramatic impact on the final completion dates benefiting the local businesses and community. The team feels that the following dates are achievable with a favorable 1conditions. Project Component Original Schedule New Schedule • Second Street Completion 09/28/2020 08/25/2020 (COMPLETE) • First Avenue South 07/28/2021 07/15/2021(COMPLETE) • First Avenue North 08/20/2021 07/15/2021 (COMPLETE) • Peace Plaza 08/13/2021 LATE FALL Art Update The five major art installations continue to progress as the team prepares for installation. - Iñigo Manglano-Ovalle, A Not So Private Sky: The sculpture was installed on August 11. Community members and downtown stakeholders were invited to a viewing event that afternoon. 141 - Ann Hamilton + Gwen Westerman, Song of the Water: Raised letter granite pavers continue to be placed throughout the project. The project team has continued to work through twp major issues that have the biggest impact on the overall timeline: o There was a 6 month delay prior to the art work being accepted due to alignment of design and integrity goals of the project. The project team has adjusted the installed of the art to have the least amount of impact on the overall timeline. o The project team has come into an issue related to workforce and the impact on the production rate of stone. This is causing some in overall timeline. - Eric Anderson, Wakefield: Team members visited Eric’s studio earlier this month to see the technology work (interpreting data into micro-fog) in person. The mechanical system will installed later this fall once granite pavers are in place. - Chuck E. Gagnon (survived by his wife Arlyn Gagnon), Peace Fountain: The fountain has been restored and will be installed later this fall. The project team is working closely with Arlyn as the sculpture has many ties to the community. - Rafael Lozano-Hemmer, Voice Canopy: The estimated costs related to the Voice Canopy system and actual were large enough that the project team was asked to identify other solutions. A catenary light system designed by the artist that meets the design goals and aligns with the integrity of the project will be installed without voice activation. It is designed to install it at a later date in an additional phase of the project. o The project team is seeing some cost increase in steel and anticipates that the catenary system will be put into place once the plaza work is completed. Inaugural Year + Milestone Activation The goal of the inaugural strategy is to create a welcoming new Peace Plaza environment now and, in the future, focusing on inviting community, downtown workforce, and visitors. - Daily Music Sessions (Sunday through Friday), in partnership with partnership with Rochester Downtown Alliance (RDA) - Welcome Back Downtown, Opening of First Avenue South (July 8) - Delivery and Installation of A Not So Private Sky (Aug 11) Other programming will be added throughout the year. Chateau Theatre The Chateau Theatre is no longer under the management of a St. Paul-based company, Exhibits Development Group (EDG). The City of Rochester and EDG ended their contract early summer. A small working group was formed to evaluate current conditions and lessoned learned. Key takeaways included: - Ongoing maintenance and capital upkeep is required - Local and regional community members feel personally connected to Chateau Theatre - Visitors to Rochester continue to look for experiences/activities during their stay - Dynamic programming is more important that static - Intimate setting is a draw for attendees - Local and regional programming is favored On August 21, 2021 the City of Rochester announced the opening of the request for proposals for a new operator. Deadline for submittals was September 20, 2021. Fulfilling the DMC Vision, Mission, and/or Goals: Heart of the City subdistrict is a long-standing priority for the DMC Corp. board. It is home to many hotels, restaurants, entertainment venues, and medical facilities, many of which have been undergoing reinvestment. Transformation of the public realm, Peace Plaza, will be an asset to the downtown core, improve the patient, visitor and resident experience, and help spur future investment. 142 Work plan or capital improvement budget implications: This project is funded via state GSIA funds generated through the DMC initiative, approved by both DMCC and Rochester City Council. Approvals, milestones, and decision points: 2016 Heart of City redesign commenced 2018 Schematic design approved, CIP authorized 2019 Construction documents completed and bidding initiated 2020 Contracts awarded. Request for additional spending. 2021 Anticipated completion 143 Downtown Retail Recruitment Strategy To: DMC Corp. Board of Directors From: DMC EDA Date: September 24, 2021 Request of the DMCC Board: No Action Requested. Activities: •Priority 1: Deliver collateral material that can be used to market downtown Rochester as a destination for local, regional, and national retail brands. o Status: Document development underway. Analysis of downtown residential profiles completed. Retail gap analysis has been beneficial. o Next steps: Finalize content, review and approvals from stakeholders, final edits, and production by mid-October. Then share with property owners/brokers and stakeholders for referrals and distribution. •Priority 2: Be opportunistic when retailers express interest in the downtown market. o Status: Two national brands have been referred to brokers, discussions under way with both, proposals are being negotiated. o Next steps: Inventory existing space to understand the opportunities, continue to build relationships with local property owners/brokers. •Priority 3: Develop interim uses for vacant properties o Status: In discussions with two local entrepreneurs about interim use for popup retail and popup arts operations. o Next steps: Work with the entrepreneurs and owners/brokers to find a good space fit. Identify other vacant locations that could be “dressed up” with visual merchandising. •Future Considerations o Consider development of a marketing plan to recruit retailers. o Consider how best to fill the missing retail categories uncovered in the gap analysis. o Explore the opportunity of a retail incubator – both space and entrepreneur support services – in the core downtown area. Approvals, milestones, and decision points: April 2021 Retail strategy commissioned October 2021 Marketing collateral completed Nov 2021 Install interim uses for vacant spaces January 2021 Launch retail marketing campaign Feb 2022 Decision on retail incubator 14 Riverfront Reimagined To: DMC Corp. Board of Directors From: DMC EDA Date: September 24, 2021 Request of the board of directors: •No Action Requested. Background: The City of Rochester solicited proposals from qualified and innovative teams to lead a community-driven process to develop a market-supported vision and small area plan for a central waterfront property that links together several civic, cultural and government assets to the heart of downtown Rochester and the Mayo Clinic. On September 20, 2021 City Council voted to accept a proposal from a team led by urban design firm Gamble Associates, along with collaborators SWA Group, NEOO Partners and Omloop. The City-owned site has the potential to be both a “front door” that faces the river, as well as a gateway into downtown. Located at the intersection of the Rochester Arts and Culture District and the main street Mixed-Use District as outlined in the Downtown Master Plan, and in the Destination Medical Center (DMC) district. The City envisions the site as part of the historic cultural triangle that encompasses the Library, Mayo Civic Center, Government Center, and the historic shops at 3rd and Broadway. The future Bus Rapid Transit corridor, now in design, will run east along 2nd Street and west along 4th Street adjacent to the site. The current use of the property is primarily public parking, consisting of a surface parking lot and a four-level parking ramp. On the south end of the site is a vacant building currently under review for Landmark designation under the City’s Historic Preservation Ordinance. Depending on final Landmark designation and direction, the structure may be demolished, or redevelopment of the structure may need to be contemplated within the final plan. An active railroad line, with low volume use, segments a portion of the site. The site is zoned Central Development Core (CDC) and is located within the Downtown Waterfront DMC sub-district. The plan will establish a people-centric place that leverages natural and cultural resources and supports multi- modal connectivity to adjacent areas including the Downtown. that leverages natural and cultural resources and supports multi-modal connectivity to adjacent areas including the Downtown. 14 Fulfilling the DMC Vision, Mission, and/or Goals: DMC EDA staff worked in collaboration with City staff to select the consultant team, and DMC staff will continue to participate through the visioning and design process. DMC is particularly focused on the public realm experience and linkages between this site and the rest of the district. In order to draw greater public and stakeholder awareness to the potential of this site, DMC elected to hold its annual fall meeting on the City-owned waterfront site on September 16, 2021. Approvals, milestones, and decision points: 146 Rapid Transit Corridor Development: West Transit Village (WTV) To: DMC Corp. Board of Directors From: DMC EDA Date: September 24, 2021 Request of the board of directors: •No Action Requested. Background: The DMC vision for the West Transit Village is to provide an authentic place where people want to be and leverage the opportunity to make the BRT journey better than a trip in a private single occupant vehicle. To realize this ambitious vision, Mayo Clinic, City, DMC, and a private developer need to collaborate. The parties have agreed to a public-private partnership approach but are also mindful of the FTA transportation funding schedule for the transit elements of the site as well. Fulfilling the DMC Vision, Mission, and/or Goals: The DMC goal of mode shift for transportation requires a significant portion of commuting trips downtown to shift away from Single Occupant Vehicle (SOV) trips and towards other modes including Bus Rapid Transit. The West Transit Village is a key element of enabling the BRT to function well and provide an experience befitting the goal of DMC vision of a world class destination. 1 DEED Main Street Grant Application To: DMC Corp. Board of Directors From: DMC EDA Staff Date: September 24, 2021 Request of the DMCC Board: No Action Requested. Context: •This Minnesota DEED program funds 501C(3) organizations to fund 30% matching grants up to $750,000 for eligible projects. Funding to be used for capital projects, not operating costs or working capital. •Requires a 2:1 match from public or private sources. •DMC partnered with City on the application. Letters of support from thirteen local stakeholders. •DMC applied for $3M funding on August 31st. o Award notification will be this fall. o If awarded, DMC funds will be disbursed in two tranches in 2022. •Priority will go to BIPOC applicants and to properties that are vacant. •Service Area for the program o East/West Boundary: 3rd Ave SE (east) and 3rd Ave SW (west) o North/South Boundary: 7th St SW (south) to Center St (north) •Program components in the DMC application: o Full Scale Redevelopment, up to three projects o Re-Configuring Existing Space, up to 15 projects o Capital Support for Entrepreneurship Infrastructure, within the redevelopment and/or re- configuration projects Approvals, milestones, and decision points: Aug 2021 Submit application Fall 2021 Award notification Q2 2022 Disburse first round of funds Q4 2022 Disburse second round of funds 2023 Report on results 1 Bryk Project To: DMC Corp. Board of Directors From: DMC EDA Date: September 24, 2021 Action for the board of directors: •No Action Requested •Project Update: Construction has begun on the Bryk site. Background: Site: Land is officially purchased and owned by Bryk Apartments Rochester LLC. The property is located on the NW corner parcel of the intersection between N Broadway and Civic Center Drive. Team: •Project Team: John and Marcia Bouquet & Dirk Erickson (Investors & Developers) Kristina Larson (Operations consultant) Ben Kall (Real Estate Consultant): 30 years of local multi-family experience •Design: ISG Architects •Construction: Kraus Anderson Project Objectives: The project team is planning a mixed-use, mixed- income apartment building consisting of 180 workforce housing apartments and approximately 7,000 sf of commercial space with construction to begin summer of 2021 and be completed by Fall 2022. The project will provide units at varying rent levels as outlined below. For reference, the 2019 Area Median Income (AMI) for Rochester was $73,106. Typically, affordable housing cost is considered to be 30% of gross income. •54 units (30% of total) @ 50% AMI •18 units (10% of total) @ 60% AMI •108 units (60% of total) @ 80% AMI The overall unit count and affordability targets are aiming to provide affordable workforce housing opportunities in the downtown that are a quick commute via bus or bike to the downtown core. N B r o a d w a y 1 DMC/City Priority Alignment: The project aligns with the following DMC and City priorities as follows: •Workforce housing project within the City, Transit-Oriented Development (TOD) and DMC zones. •Revitalizes blighted site •Provides a balanced and sustainable housing stock •Promotes neighborhood stabilization and revitalization in coordination with the North Broadway reconstruction project. •Increase to the city’s tax base. •Commercial space is considering a few possibilities to address food insecurity or childcare needs. Portions of space will be intentionally held at below market rates to promote local small business integration into the project. •Sufficient parking will also be included for the commercial tenants. •Project is being designed to meet City and DMC Sustainable Design Requirements which will also benefit occupants in terms of lowering their monthly utility costs via improved building efficiency Financing: The project is utilizing the following sources of funding: -First Mortgage (project team is meeting with multiple lenders) -Equity (from Development team) -Public Infrastructure funding (City TIF + DMC proposed funding) -DEED ($853,000 clean up grant) -PACE -TIF Loan Funding Application Review Process: •Developer submitted DMC joint application for funding to DMC EDA and City of Rochester; DMC EDA and City staff began professional review of funding application •DMC EDA staff conferred with the DMC EDA board’s informal project review committee, comprised of Jerry Bell and Tom Fisher, and prepared a draft evaluation report, including a funding recommendation •The DMC EDA board reviews the report and issues a project recommendation to the DMCC board •DMC EDA staff, joined by City staff, present the DMC EDA recommendation to the DMCC board •DMCC board makes a determination regarding whether or not to designate development as a DMC project, and the amount of DMC funding to allocate to the project •DMCC board determination is considered by the Rochester City Council, which must agree with the DMCC’s decision for the project to be approved for DMC funding 1 District Energy To: DMC Corp. Board of Directors From: DMC EDA Date: September 24, 2021 Request of the board of directors: •No Action Requested. 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 and asked that the City identify options to reduce the first cost and risk associated with identifying private developments to connect to the system Next Steps: •The Project Team identified a pathway to connect the City buildings and create the initial district energy plant within the Mayo Civic Center using additional space. City Staff will operate the system in its initial stages. •DMC infrastructure funds are being used to upsize the system’s piping connect 500,000 SF of future private developments around the government building sites. As more buildings are brough onto the system, a future DES plant can be placed behind the Civic Center. •Additional planning will be conducted to connect the system to the South of Downtown Waterfront Site Development. •City Staff brought forward a recommendation forward to City Council on May 3rd to move forward 15 with the design of the initial district energy infrastructure which was accepted. •Design of the District Energy System has been underway since the spring and the City has been working to develop the financial approach and various opportunities for the project Approvals, milestones, and decision points: November 2020 CIP Approval of $2M for DES March 2021 Downtown DES Progress Update provided to City Council May 2021 City Council accepted District Energy design funding Late May 2021 Design began for district energy system and financing opportunities evaluated Q1 2022 50% Design development complete. Final project budget brought to Council for approval 15 McKnight Foundation Grants To: DMC Corp. Board of Directors From: DMC EDA Date: September 24, 2021 Request of the DMC EDA board of directors: •No Action Requested •Project Update: o Since the last DMCC Board meeting, a job description for the Equitable Development Coordinator was created in collaboration with our project partners and has been posted on the DMC EDA website. o DMC EDA is collaborating with the key project partners City of Rochester and Diversity Council to create a governance approach across organizations and execute the work plan objectives for the Vibrant and Equitable Communities program. We are working to fill the Equitable Development Coordinator position to participate in the grant’s governance and next steps. Background: •The McKnight Foundation has supported the DMC EDA’s sustainability activities since 2017 in the sum of $150,000 over two years. •In 2019, the Foundation, increased their commitment to the EDA’s sustainability programs by supporting its efforts for another two years, through 2021 in the sum of $185,000 over two years. •Toward the end of 2020 and early 2021, the City of Rochester and DMC EDA finalized another application for McKnight funding through their Climate & Energy Program, and through their Vibrant and Equitable Communities Program. o The Climate & Energy Program invited the DMC EDA to apply again for a $185,000 grant over a two-year period. The DMC EDA prepared an application in collaboration with the City of Rochester. This funding will help support the following initiatives: •Electric Vehicle Infrastructure Community Plan •Active Commuter Resource Center: Community Co-Design •Sustainability and Resiliency Downtown Demonstration Development •Sustainability and Resiliency Action Plan Implementation •Staff Support o In collaboration with the City of Rochester, Diversity Council, the DMC EDA prepared an application for the Vibrant and Equitable Communities Program in the sum of $154,000 over a 12-18 month period. This funding will help support the hire of an Equitable Development Coordinator within the DMC EDA to work on the following initiatives: •Accelerate Economic Mobility: Within this objective, the Coordinator will support local initiatives that foster economic equity and inclusion and advance ownership opportunities. This work is critically important to promote the myriad of projects and initiatives within the City, foster connections, and as possible develop strategies to form a coordinated approach and strategy to entrepreneurship. •Cultivate a Fair and Just Housing System: Over the past year, an extensive housing analysis has shown there is a considerable need for affordable housing within the DMC District and throughout the region at varied rental and price points. The DMCC 15 and the City of Rochester have identified affordable housing as a strategic objective. With the results of the recent market demand studies in hand, the Coordinator will research housing development models that foster ownership opportunities for BIPOC communities and identify partners to deliver on the vision. •Strengthen Democratic Participation: Based on the success of piloted equitable community engagement approaches coined community co-design, the Coordinator will work to operationalize this process into DMC infrastructure projects in 2021 and beyond. Fulfilling the DMC Mission, Vision, and/or Goals: Energy and sustainability is a key piece of the DMC principles, development plan and goals for the project. The DMC EDA team is working to implement a range of projects, programs and initiatives to realize the ambitious goals included in the DMC Development Plan across a range of impacts including community health, workplace health, energy, greenhouse gases, water consumption, waste, and transportation. Work plan or capital improvement budget implications: The current DMC work plan describes a variety of initiatives supported by the McKnight Foundation, DMC 2021 operating and CIP funds. The McKnight funds would help to support the work plan objectives outlined above. Approvals, milestones, and decision points: March 2017 Initial McKnight Grant Approval March 2019 Second round of McKnight Funding Support February 2021 Third fundings round notification to be shared March 2021 Award notification received from McKnight for $335,000 through two grant programs May 2021 Establish grant governance structure among Diversity Council, COR and DMC EDA July 2021 Equitable Development Coordinator position posted 15