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HomeMy WebLinkAbout9/30/2021 DMCC Board of Directors Meeting - PresentationDMC Corporation Board of Directors Meeting September 30, 2021 ©2 0 2 1 C l i f t o n L a r s o n A l l e n L L 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 C l i f t o n L a r s o n A l l e n L L P Create Opportunities IRS Form 990 •Financial information reconciles to DMCC’s audited financial statements •Part III (page 3) –statement of DMCC’s organizational purpose •Part VI (page 7) –governance •Part VII (page 8) –board members ©2 0 2 1 C l i f t o n L a r s o n A l l e n L L P Create Opportunities IRS Form 990 •Schedule B (page 23) –contributors •Schedule R (page 33) –related organizations •No unrelated business income for 2020 •Filing deadline is November 15, 2021 ©2 0 2 1 C l i f t o n L a r s o n A l l e n L L 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 ©2 0 2 1 C l i f t o n L a r s o n A l l e n L L P Create Opportunities Minnesota Non-profit Corporation Annual Registration •Filed online with Minnesota Secretary of State •In good standing through December 31, 2021 •Annual renewal to be filed (online) for 2022 ©2 0 2 1 C l i f t o n L a r s o n A l l e n L L P Create Opportunities Thank you for engaging us to serve you! Contact Information: Craig Popenhagen, Principal Katherine Lutzke, Senior 507-280-2327 507-280-2314 Craig.popenhagen@claconnect.com katherine.lutzke@claconnect.com DMC Metrics: Targeted Business and Workforce Participation / Bloomberg Mayor’s Challenge Targets and Current Performance Equitable Economic Development 1.Targeted Business and Workforce Participation: Goals and strategies to create construction -related economic opportunity in under-represented communities. City also creating targets. 2.Community Co-Design:Pilot to Business Approach 3.Community Partnerships: Broaden collaboration across public, private and non-profits on equity initiatives 4.Housing:Realize downtown housing targets for affordability and ownership 5.McKnight Vibrant and Equitable Communities Grant: Posted job description for Equitable Development Coordinator Equity in the Built Environment; Establishing Career Pathways for BIPOC Women City of Rochester, MN Mayor’s Challenge Grant Proposal -2021 slide In Rochester, Minn.,40 percent of Black residents live in poverty, and the level of unemployment among BIPOC (Black, Indigenous, and People of Color) women is far higher than among any other demographic group. The city proposes to engage BIPOC women, employers, and labor associations to design pathways for increased participation in Rochester's growing construction industry, by focusing on education, training, hiring, and work culture interventions. Rochester’s idea is important because it focuses on the workforce development and inclusion of a highly underrepresented group. Currently, less than 1% of jobs in the construction industry are filled by BIPOC women, although they make up 13% of the population. 5 Project Timeline March 2021 –Application submitted to Bloomberg Mayor’s Challenge June 2021 –Rochester, MN named Top 50 City out of 630 applications July to October 2021 –Co-Design and Prototyping December 2021 –$1 million award? February 2022 –Full scale implementation slide •Centering community as experts with lived and learned experience •Considering all stakeholders –BIPOC Women and their communities –‘Built Environment’ employers –Educators (k-12, higher education, unions) 7 slide Co-Design as Prototype FOR EXAMPLE… Promising Solutions for Prototyping Community-Designed Plan Stories Perspectives Experiences Launch final prototype Community Experience Intersection of Stakeholder Groups SLIDEBloomberg Mayor’s Challenge Co-Designers 9 Violet Magoma Community Organizer, Construction Trainee Wafa ElKhalifa Sudanese Activist, K-12 Equity Specialist (RPS) Karen Martinez Education Minnesota Lexi Tello Med-City Installation Fatuma Ahmed Pamoja - CoFounder Aaron Benike Benike Construction Chad Wandler RCTC Instructor –FAST Program Nick Wille Carpenters Union Jose Rivas CRW Architecture &Design Group Project Outcomes Themes (14) Industry Prototype Higher Education Prototype K-12 Co-Design Plan Community Partnerships: DMC, Cradle 2 Career, Diversity Council, Med City Installation, Benike Construction, Workforce Development, 3M. For more information; https://www.rochestermn.gov/government/departments/ad ministration/2021-bloomberg-mayors-challenge Thank you! 2022 DMC FUNDING REQUEST September 2021 Today’s Discussion •Proposed 2022 DMC Capital Investments •Proposed 2022 DMC Work Plan •2022 DMC Working Capital Loan Extension Staff and board members prepare recommended funding request May -August 2O21 City Council Action October 2021 DMCC Board Action September 2021 FUNDING REQUEST DEVELOPMENT PROCESS February 2O21 DMC Collaborative Session, priorities discussion EVALUATING DMC CAPITAL INVESTMENT OPPORTUNITIES PROCESS FOR DEVELOPING CIP RECOMMENDATIONS TO DMCC DMC Development Plan Goals DMC Guiding Principles DMC Strategic Priorities Annual Commitments -Visionary Planning -$5.6B of private investment -30,000 jobs -$7.5-$8B new tax revenue -Highest quality experience -Be Bold -Economic Engine -Comprehensive Strategy approach -Market Driven -Dynamic and Accessible -Mobility to support growth -Model for Sustainability -Tech+ Innovation to promote globally -Heart of the City -Development along the Rapid Transit Corridor -Discovery Square -Waterfront -Transportation -Capital Improvement Plan -Workplan and operating budget PROJECTED DMC FUNDING DISTRIBUTION 2020-2024 PROJECTED DMC FUNDING DISTRIBUTION 2020-2024 PUBLIC REALM Outcome: Provide signature public spaces in each DMC sub-district 2022 Budget: $8,450,000 Investments include: •Chateau Theatre Preservation &Activation •Discovery Walk •Planning-design for Downtown Waterfront, Soldiers Field and Saint Marys MOBILITY Outcome: Achieve the mode- shift goals described in the DMC Integrated Transit Studies 2022 Budget: $16,964,647 Investments include: •Rapid Transit •Alternative Commuting Program STRATEGIC DEVELOPMENT Outcome: Targeted public investments necessary to secure extraordinary private investment 2022 Budget: $3,000,000 Possible investments: •Bio-med-tech •Small-and medium-scale redevelopment •Predevelopment Activation •Housing STREETS AND SEWERS Outcome: Build the public infrastructure necessary to support and enable economic growth 2022 Budget: $4,640,625 Investments include: •District Energy •Downtown sidewalk enhancement •Discovery Square street infrastructure FUTURE PLANNING AND DECISION POINTS Phase 2 (through 2024): •South-of-Downtown Waterfront •Sixth Street Bridge •Active Transportation Plan and Infrastructure •Wayfinding •Opportunities associated with Mayo Clinic 5 Year Capital Plan Phases 3 & 4 (2025-2035): •South Broadway Reconstruction •Heart of the City east to Civic Center and west to Gonda Bldg. OPERATIONS Outcome: Support the organizational and programmatic activities necessary to implement the DMC development plan 2022 Budget: $3,275,616 Includes: •DMC Corp. •City of Rochester Administrative Support to DMC Corp. •DMC EDA •DMC Project Management Services provided by City A.Development Planning and Promotion, including: o Implementing the development plan, including soliciting development proposals for development… o Seeking financial support for the DMCC, the City, and projects o Partnering with others…in joint efforts to promote economic development o Administering the planning and development activities required to implement the development plan B.Development Administration, including: o Evaluating and underwriting development proposals o Providing transactional services in connection with approved projects o Facilitate the sale, lease, or other transactions involving land and real property o Assist in applications for federal grants, tax credits, and other sources of funding to aid development C.Marketing, Outreach, and Communications, including: o Comprehensive marketing program to global interests o Developing patient, visitor, and community outreach programs o Preparing and supporting the marketing and promotion of DMC o Preparing and implementing a program for community and public relations DMC EDA RESPONSIBILITIES DEFINED IN MN STATUTE Development Administra�on 18% Development Planning and Promo�on 41% Marke�ng , Outreach, and Communica�ons 29% Opera�ons 12% 2022 WORK PLAN BUDGET USES INCLUDES DMC EDA AND CITY PROJECT MANAGEMENT COSTS 2022 DMC EDA BUDGET SOURCES Mayo Clinic $1,411,390 37% DMC $2,189,629 57% McKnight Founda�on Grants $167,500 4% Program Income $80,000 2% 2022 WORK PLAN HIGHLIGHTS Mobility Bio-med-tech Pre-development Activation Heart of the City Post-Occupancy Analysis 2022 WORK PLAN HIGHLIGHTS Riverfront Development Pre-development Activation Discovery Walk Retail. Dining, Entertainment Community Engagement Staff and board members prepare recommended funding request May -August 2O21 City Council Action October 2021 DMCC Board Action September 2021 FUNDING REQUEST DEVELOPMENT PROCESS February 2O21 DMC Collaborative Session, priorities discussion Discovery Square Economic Development in Discovery Square •One Discovery Square 100% leased. •Two Discovery Square •Construction ahead of schedule, discussions underway with multiple partners on every floor. •Phase 3 project being contemplated •Mayo Clinic Kellen Building under construction •3rd Ave parking structure under construction •Bids received on Discovery Walk “You can feel the growth here.” Prior Direction from DMCC Board •Base project approved with $16.8M budget. •Authorized bidding out Snowmelt and Community Spaces as potential additions to the project. •Consider extension into Soldiers Field as a later project, in conjunction with SF Master Planning Connecting Downtown and Neighborhoods Discovery Walk –Before and After Discovery Walk -Investment in Experience The Village –500 Block The Outside Office –400 Block The Cafe –300 Block Discovery Walk -Investment in Infrastructure Response to Bids –Base Project and Additions Budget Bid Diff Base Project $16.8M $15.6M ($1.2M) Snowmelt $0.9M $0.9M Community Spaces $2.1M $2.1M Total $16.8M $18.6M $1.8M Recommendation from EDA Board and Staff Include the Snowmelt System and Community Spaces with the base project at an incremental cost of $1.8M. The Value of Snowmelt and Community Spaces Community Co-Designers Comparing Heart of the City to Discovery Walk Maintaining the Experience, Reducing the Cost •Fewer pavers, esp no street pavers •Emerging artists, fewer pieces •More landscape area vs hardscape area •Business Forward mitigation needs are lower •No water feature •Smaller snowmelt footprint Recommendation from EDA Board and Staff Include the Snowmelt System and Community Spaces with the base project at an incremental cost of $1.8M. Next Steps •October: City Council consideration •2022: Construction begins •2022: Operations and Maintenance Plan confirmed •2023: Project Completion Mobility Update Today’s Discussion •Station Design and Proximity to Climate Control •Principles of Vehicle Design Key BRT Decisions Made to-date •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 -Oct. 8 Rochester Rapid Transit Route Direct Subway Connections: Update Direct Subway Connections: Update Vehicle Selection Procurement timeline: Spring 2023 RFP for Fall 2023 purchase order Current criteria guiding selection process: •Experience-focused •Equity lens •Electric vehicles •Different •Reliable •Ease •Better than driving •Follow Federal procurement requirements Accessing DMC Funding Request of the DMCC Board Direct staff to prepare a Small Project Capital Strategy for public-private investment and development. Why A Small Project Capital Strategy? •Strategic public-private investments in large projects advance DMC goals and accelerate economic development. •Similar investments in small projects can also advance DMC goals, but in a more accessible and equitable way: •Provide resources to under-served communities, an unrealized source of innovation and investment. •Support small business owners and entrepreneurs to launch and grow businesses. •Responding to community need Background •Since inception, DMC capital has been accessed by projects involving large scale developments and city infrastructure projects. •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. Prior Direction from DMCC Board •From the 2020 Five-Year report, staff directed to focus on: •Supporting existing local businesses •Prioritizing public infrastructure •Reusing excess real estate capacity creatively •Diversifying the economy •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. Allowable Uses of DMC Public Infrastructure Funds •Acquire real property and other assets •Demolish, repair, or rehabilitate buildings •Remediate buildings •Public infrastructure including streetscape improvements, landscaping, façade construction and restoration, wayfinding and signage, and other components of community infrastructure •Parks, cultural, and recreational facilities, facilities to promote tourism and hospitality, conferencing and conventions, broadcast and related multimedia infrastructure; •Site improvement •Prepare land for private development and to sell or lease land •Relocation benefits to occupants of acquired properties •Construct and equip suitable structures on land owned by the city for sale or lease to private development Request of the DMCC Board Direct staff to prepare a Small Project Capital Strategy for public-private investment and development. Potential Next Steps •October: City Council consideration •November 4: DMCC board update •2022: Implementation Project Updates •Project is seeing continued progress towards completion: •Installation of all trees and benches •Installation of A Not So Private Sky •Continued installation of … Ann Hamilton, Song for Water with De Wakpa Taŋka Odowaŋ / Song for the Mississippi River by Dr. Gwen Westerman •Continue installation of Eric Anderson, Wakefield •Opening of First Ave to vehicle traffic •More to come! •Installation of Chuck E. Gagnon, Peace Fountain •Installation of catenary light system Heart of the City Update Photo •Priority 1: Create marketing collateral material to showcase downtown Rochester •Priority 2: Be opportunistic, connect retailers to brokers •Priority 3: Interim uses for vacant properties •Future Considerations •Marketing plan to recruit retailers •Explore retail incubator model Retail Recruitment and Retention •August:City of Rochester solicited proposals from qualified and innovative teams •Sept. 20, 2021: City Council voted to accept a proposal from team led by urban design firm Gamble Associates, along with collaborators SWA Group, NEOO Partners and Omloop •Oct –June 2022: community-driven process to develop a market- supported vision and small area plan for a central waterfront property Riverfront Reimagined •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 •Mayo Clinic, City, DMC, and a to-be- determined private developer will need to collaborate •Developer recruitment process underway West Transit Village Sample illustrative image -Google •Supports grants up to $750,000 for capital projects, require a 2:1 match •DMC partnered with City on $3M application •Letters of support from thirteen stakeholders •Award notification this fall •If awarded, funds will be disbursed in 2022 •Priority to BIPOC applicants and vacant properties DEED Main Street Revitalization Program •City Council approved the TIF and DMC funding support for the project in early April •Project started construction in July 2021 Bryk Project Photo •DMC approved $2M of support to upsize the DES to connect 500,000 SF of future private development •Project will complete 50% design development drawings and budget for Council Q1 2022 District Energy Photo •In March 2021, McKnight awarded the DMC EDA $335,000 through its Climate and Energy and Vibrant and Equitable Communities (VEC) Grant programs •DMC EDA is collaborating with the City of Rochester and Diversity Council to create a governance approach for both programs •Equitable Development Coordinator position, a key element of the VEC grant, is posted McKnight Foundation Grants Climate and Energy Opportunity: •Electric Vehicle Infrastructure Planning •Sustainable Development Community Model •Sustainability and Resiliency Task Force Implementation •Staff Support Vibrant and Equitable Communities Opportunity: •Downtown Affordable Home Ownership •Equitable Engagement Operationalization •Work with entrepreneurship groups to develop further opportunities for disenfranchised McKnight Foundation Grants