HomeMy WebLinkAbout11/10/2022 DMCC Board of Directors Meeting - 09.22.2022 Question Responses
Destination Medical Center
To: DMC Corp. Board of Directors
From: Patrick Seeb, Executive Director, DMC EDA
Re: Questions raised by DMCC board directors at the September 22, 2022 board meeting
Dear Chair Wheelock and members of the board:
At the September 22, 2022 DMC Corp. board of directors meeting, EDA staff committed to
providing responses to several questions posed by members of the board. Below, I’ve
paraphrased those questions and provided responses in a question-and-answer format.
Q: Does the City of Rochester have any policies regarding the preservation of naturally-
occurring affordable housing (NOAH) upon its sale or a change in ownership or
tenancy?
A: The preservation of NOAH, including in the event of a change in tenancy or property
ownership, remains a regular topic of discussion for the Coalition for Rochester Area
Housing. There is no specific City policy requiring such preservation in place at this time,
but City of Rochester TIF agreements require developers to ensure that appropriate
relocation benefits are provided to displaced rental unit tenants whose incomes are at
or below the 60% area median income (AMI). Similarly, residents displaced by DMC
projects may also be eligible for DMC-funded relocation benefits.
Q: How has the tax capacity of taxable properties in the DMC development district
changed over time, and how does this change compare to tax capacity changes in the
rest of the City of Rochester?
A: Between 2012—the year before the introduction of DMC’s enabling legislation—and
2021, the tax capacity increase within the DMC district was 111%, outperforming the tax
capacity increase experienced throughout the rest of Rochester (78%). Here is a table
demonstrating that annual change:
DMC District Rochester (minus DMC district)
2012 13,937,681$ 85,522,676$
2013 16,156,992$ 88,286,926$
2014 18,440,508$ 90,958,710$
2015 21,090,491$ 94,557,257$
2016 22,506,460$ 107,020,156$
2017 23,342,006$ 112,686,503$
2018 24,049,484$ 123,206,157$
2019 26,316,943$ 134,247,381$
2020 31,194,559$ 145,975,903$
2021 29,417,295$ 152,357,689$
Annual Tax Capacity
Destination Medical Center
Q: What is the timeline for the Link bus rapid transit-related South Second Street
reconstruction? What efforts will be made to mitigate construction impacts on
adjacent businesses and properties?
A: Scheduled to begin service in 2026, the Link Rapid Transit line will connect the West
Transit Village, Cascade Lake, Mayo Clinic campuses, downtown Rochester, the Mayo
Civic Center, and the Rochester-Olmsted Government Center.
During the construction of Link Rapid Transit, the DMC EDA and City of Rochester will
utilize “Business Forward” principles (namely, to provide for safety, accessibility, and
regular stakeholder communication and input).
For example, during the Heart of the City construction, the application of these
principles resulted in solutions tailored to the needs of adjacent property and business
owners, including:
- Weekly property/business owner conference calls
- Regular updates to the Rochester Downtown Alliance
- Efforts to maintain pedestrian and vehicular access to retail, restaurants, and hotels
- Construction phasing/timing that minimized disruptions to hotel guests and patients
Similar, customized mitigation efforts will be made along the Link Rapid Transit route.
Destination Medical Center
What progress has been made toward the development of the housing types identified in
the 2020 Olmsted County housing needs assessment?
A: The housing needs assessment estimated that more than 3,900 additional units would
be required in downtown Rochester by 2030. Between 2015-2020, approximately 1,150
housing units were added to downtown Rochester. Since the 2020 study, more than 500
additional units, including affordable, student and market-rate housing, are in various
stages of planning and development.
Additional development needs still exist for workforce rental housing in the 30-50% area
median income range, and ownership options for workforce and seniors, especially
affordable home ownership opportunities.