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HomeMy WebLinkAbout2/3/2022 DMCC Board of Directors Meeting - PresentationDMC Corporation Board of Directors Meeting THURSDAY, February 3, 2022 Annual Report to the Minnesota State Legislature © 2022 DMC Annual Report to the Legislature •Joint report by the City of Rochester and DMC Corporation •Required to be submitted by Feb. 15 each year •Submitted to: •Chairs and ranking minority members of the legislative committees and divisions with jurisdiction over local and state government operations, economic development, and taxes •Commissioners of revenue and employment and economic development •Chair of the Olmsted County Board of Commissioners •State law outlines required report elements Required Elements of the Report •Development plan and any proposed changes to the plan •Progress of projects •Actual costs and financing sources of projects completed by the DMCC, City, County, and Mayo Clinic •Estimated costs and financing sources for projects to be started in the next two years by the DMCC, City, County, and Mayo Clinic •Debt service schedules for all City debt issued for DMC projects Report Highlights •5-year update completed in 2020 •DMC investments in: •Transpo rtation •Public space •Streets and sewers •Affordable housing •Programmatic initiatives: •Business recruitment •Business Forward •WMBE •COVID-19 recovery Report Highlights (Continued) •Certified 2020 private investment of $144M •Cumulative private investment (through 2020*) by Mayo Clinic and others in DMC initiative exceeds $1B •State of Minnesota DMC investment through 2021 totals $68M •City of Rochester DMC investment totals $73M •Olmsted County investment totals $14M *2021 private investment will be reported in March 2022 Annual Report to the Minnesota State Legislature © 2022 DMC DMC Metrics Describing Progress Toward DMC Goals •February: 30,000 New Jobs Construction workforce development strategies supported by the Bloomberg Global Mayor’s Challenge award •May: $5.6B in private investment An overview of Mayo Clinic’s five-year capital plan •September: $7-8B in new tax revenue Case studies in how in-fill development can create tax capacity •November: Highest-quality Experience Discussion of the metrics and indicators DMC monitors to evaluate the efficacy of experience improvement strategies 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. 1 What did we learn from co-design? •Culture Clash •Opportunity Awareness •Knowledge / Skills Training 1st Session •Culture Clash •Flexibility •Mentorship •Familial support is critical •Building Trust •Industry DEI competency building Second Session 4 Opportunity Awareness •Navigation •Network / Information Sharing •Access to Networks •Early and consistent exposure Knowledge / Skills Training •Navigation •Network / Information Sharing •Access to Networks •Expectation Management Solution Development What is the sustainable design and career pathway solution? 5 Construction Site Experience Stakeholder Mentor Pairing Weekly Group Evaluation Continuous Improvement Contractor Readiness Assessment and Training Mentor Development and On-going Participant Support Encourage others to follow! BIPOC Women Workforce Readiness Training Step 1: Get ready to work together Step 2: Build, learn and apply together Step 3: Broaden representation in trades and opportunities to lead Step 4: Encourage new workers and businesses to follow What are the benefits of this approach? 6 For Contractors… •Find new employees •Help City meets its Targeted Business Goals •Diversity, Equity and Inclusion Competency Building and Training •Mentorship support in inclusivity efforts For the BIPOC Community… •Pursue or find a well- paying career in a safe and welcoming workspace •Receive technical and financial support •Mentorship support to explore and establish career or business •Consider new business or entrepreneurship opportunities For the broader community… •Broaden representation in design and career industries •Replicable model for other projects and communities •Meet the community’s targeted business and workforce goals •Community wealth- building Sustainable Design and Career Pathway Cohorts K-12: Early and Consistent Career Exposure Post -secondary Education Cohort(s) Design and Construction Industry Cohort(s) How will the community benefit? Short-Term Outcomes Long-term Outcomes 1.68 BIPOC Women employed, enrolled in training, or open business within 1 year 2.5-6 Industry Employers are retaining BIPOC women employees and double their women employees within 3 years 3.Enrollment of BIPOC women in training programs have doubled within 3 years 4.~30 co-creators remain engaged in project past their cohort 1.BIPOC women represent 13% of labor participation 2.Employers recognized for inclusive hiring practices triples 3.BIPOC women enrollment in post-secondary training is tripled 4.Co-creation and co-design is adopted across City departments 5.Co-creation processes involve 100+ Rochester residents per year Mobility 2 DMC Development Plan and Integrated Transit Studies Background If we invest in high quality mobility options… •Quality of life will be improved for residents, employees, and visitors. –More pedestrian-friendly streets –More parking for patients and neighborhood residents –Better air quality •Alleviate congestion –Without alternatives, nearly 40% more miles driven projected each day on existing road network •Avoid expensive new parking construction –Estimated to cost nearly $1 Billion 85,000 105,00 0 128,00 0 155,00 0 3 •Key element of achieving mode shift goals necessitated by expected growth. •Mayo Clinic remains committed to development of rapid transit and future downtown employment growth. •Updated DMC Development Plan reaffirms importance of reliable transit. Project Overview Rochester Rapid Transit : Building for Growth CITY POPULATION:55,000 new residents EMPLOYMENT:50,000 new jobs 86,000 110,00 0 120,82 3 165,00 0 Benefits of Bus Rapid Transit BRT improves quality of life in cities in four key ways: −saving travel time vs. conventional bus −reducing greenhouse gases (GHG) and improving air quality −improving traffic safety −increasing physical activity Support directing staff to advance evaluation and design of BRT project enhancements to return to the Board with: a)revised project definition b)revised timeline c)revised project budget d)revised funding strategy Today’s Request 1.Station design and pedestrian connections to stations 2.The alignment at the eastern terminus of the route 3.The potential to add infrastructure needed for the project into the FTA request to share funding Project Components for Discussion 7 Revised Project Definition Enhanced User Experience BRT is an improved transit experience: •Level boarding •Streamlined payment systems •Dedicated travel lanes •Signal priority •Quicker connections Riders will experience High Quality Stations that are: •Accessible •Dry •Comfortable •Safe •Quick St. Mary’s 2nd Street East Terminus slide8slide 9 Revised Project Definition East Terminus Alignment 10 Revised Project Definition East Terminus Alignment •Brings service closer to Slatterly Park and Sunnyside •Increases neighborhood walkshed to service •Serves as a catalyst for Downtown Waterfront Southeast redevelopment area •Bi-directional service is more intuitive for customers •Avoids operations on Broadway Avenue S. •Improved user experience for East Lot commuters slide 11slide slide 13 Revised Project Definition Additional Infrastructure added to FTA scope Revised Timeline Projected Timeline Impact Revised Project Budget + Funding Strategy Budget Revisions •Project Submitted to FTA -$114 Million •The original 2020 FTA submittal: 51-49 split between local and Federal funding (known as an overmatch). •The proposed City/DMC share was $58.7M. •Propose that when we submit final budget: we hold the same local contribution of $58.7M. •Request the additional project costs are from Federal sources. Approximately 40-60 split. •Revised Completion date. Support directing staff to advance evaluation and design of BRT project enhancements to return to the Board with: a)revised project definition b)revised timeline c)revised project budget d)revised funding strategy Today’s Request Discovery Square 2/3/22 What We Cover Today •The original vision •Perspectives from the ground •What is next –transactional and transformational Vision for Discovery Square Business recruitment “The focal point for the new workplace environment to attract the best and brightest” Mixed use neighborhood “Critical to the DMC master plan is the establishment of a strong residential community ” Multi-purpose public space “One of a series of places creating a unique, year-round experience” “Strengthened relationships between Mayo Clinic, the UMR, and other institutional partners”Partnerships and collaborations Perspectives from Discovery Square •Lizzy Haywood –Peoples Food Coop •Chancellor Lori Carrell –University of MN Rochester •Dr. Jim Pipe –Mayo Clinic, in One Discovery Square •Frank Jaskulke -Medical Alley Association •Brent Webb -Mortenson What’s Next -Transactions Business recruitment Kellen Building construction Parking infrastructure construction Discovery Walk construction Phase 3 project request What’s Next -Transformations Affordable and workforce housing Soldiers Field master plan Targeted workforce development –Simulation Lab Targeted entrepreneur support –shared lab space Contribute to the Minnesota ecosystem Heart of the City: Project Update Today’s Discussion •Project Status •Post-occupancy Analysis •Business Forward Strategy Project Update •Timeline –April 2020 to Dec 2021 •Final Punch List –Replacement of inadequate pavers –Catenary light system (summer 2022) •Rededication (May 2022) Post Occupancy Analysis Next Steps Study Design Implement Report Jan 2022 Dec 2022 Methods: •Observation •Mapping •Survey •Interviews •Community Events Business Forward Strategy •What is it? –Stakeholder engagement –Prioritize the businesses' needs •Why? –Unprecedented amount of construction –Community expects improved planning efforts What Did We Learn? •Involve stakeholders through entire process •Create trusted space to share concerns •Construction superintendent that is hands-on and personable •Build and maintain strong relationships with partner organizations Applying Business Forward to Other Projects •Discovery Walk •Downtown Sidewalk Experience Project (Broadway) •Broadway Street Improvement (Phase 2) Site Selection and Corporate Recruitment: 90-day Progress Report Where do projects come from? Current Distribution Industry Average Other –5% Company Direct –40% Location Advisors –20% Proactive Outreach –15% In-Market –20%In-Market –90% All Others –10% •Geographic Focus: San Diego and Imperial Counties (HQ only) •Industry Focus: Healthcare Device & Supplies, Healthcare Services, Healthcare Technology Systems, Pharma & Biotech. •Investment Window: 1/1/2017 –1/1/2022 •Number of Employees:All •Campaign Launch Date: January 3, 2022 (100% virtual) •Targets Identified:507 •Bounce Rate: 22% (114/507) •Lead Conversion Rate: 2.8% (11/393) •Projects Converted: 3 (Project Coast, Project RSF, Project 42) •2nd round of outreach launched the week of January 17, campaign closed January 24 January 2022 San Diego Campaign •Maintain 100% virtual offering in 1Q2022 •February: Major Midwest Markets (virtual) •February: Toronto & Montreal (virtual) •March: Greater Los Angeles (virtual) •March: Southeast (virtual) •Goal to improve conversion rate to 4% •Generate 40 Leads and 10 Project Opportunities •Special “Project Aurora” campaign if/when it announces •National/International geographic focus •Industry target of similar companies Upcoming Lead Generation Plans 1.Expand Lead Generation efforts, improve conversion rates and project starts. 2.Expand Awareness efforts to key customers, further engage Location Advisor community. 3.Refine Business Case, further develop sales collateral. 4.Partner with in-state advocates on Industry Marketing efforts (DEED, Medical Alley, Greater MSP, RAEDI) Next 90 Days