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HomeMy WebLinkAbout2/9/2023 DMCC Board of Directors Meeting - PresentationAnnual Report to the Minnesota State Legislature © 2022 DMC DMC Metrics February 2023 Strategic Plans Create a comprehensive strategic plan Leverage the public investment of $585 million to attract $5B Create approximately 30,000 new jobs Generate approximately $7.5 -$8.0 billion in new net tax revenue Achieve the highest quality patient, companion, visitor, employee, and resident experience DMC Metrics Describing Progress Toward DMC Goals WHY PLAN? To h arness the energy and creativity of the community. To achieve a shared vision.To g uide future investments. DMC GUIDING DOCUMENTS Aligning strategic planning | 2015-2020 DMC Development Plan 5 Year Update Regional + City Strategies Area Plans Updated Market Studies DMC GUIDING DOCUMENTS Aligning strategic planning | 2020-2025 DMC Development Plan 5 Year Update 10 Year Update (2025) Regional + City Strategies Area Plans Updated Market Studies •Foundational Plan | 2015 DMC Development Plan –two years of civic engagement, public hearings, and formal approval •City development is dynamic –new market and community data •DMC incorporates current thinking –Regional + City plans, area plans, market studies •Plans guide future investments DMC METRICS: STRATEGIC PLAN Describing Progress Toward DMC Goals Soldiers Field Update + Action Item Topics to Cover •Solders Field Memorial Park Update •Review Alignment •Action Item Approve resolution: Providing Final Approval for the Expenditure of Funds from the 2023 CIP Budget for the Soldiers Field Project •Education-Recreation Subdistrict (Soldiers Memorial Field Park): Public Realm Planning, Design, and Construction: Up to $10,000,000 to finance a portion of the construction, bid documents, and associated soft costs of the Preferred Alternative Plan Soldiers Field Update DMCC Board Direction •Minimum impact to golf course •More details regarding aquatics •Community-supported plan Alignment DMC •Within DMC District •Consistent with DMC Development Plan •Meets definition of public infrastructure …(6) install, construct, or reconstruct, furnish, and equip parks, cultural, and recreational facilities, facilities to promote tourism and hospitality … Alignment Key Elements + Guiding Principles •Connectivity •Signature Public Space •Equity •Inclusivity •Accessibility •Health •Sustainability Soldiers Field Plan Preferred Concept Alternative Soldiers Field Estimated Timeline Approve Resolution: Providing Final Approval for the Expenditure of Funds from the 2023 CIP Budget for the Soldiers Field Project •Education-Recreation Subdistrict (Soldiers Memorial Field Park): Public Realm Planning, Design, and Construction: Up to $10,000,000 to finance a portion of the construction, bid documents, and associated soft costs of the Preferred Alternative Plan Recommendation to Board: Riverfront Small Area Plan •Take action to authorize $800,000 of financial support to advance the downtown riverfront project. Funds for: •Land acquisition ($450k) •Design/Engineering (up to $350k) •These resources are in the prior approved 2023 CIP Request for Action: Alignment DMC Within DMC District Consistent with DMC Development Plan Meets definition of public infrastructure © 2017 DMC DEVELOMENT PLAN Alignment Authorized Uses of DMC Funds Minnesota Statutes, Section 469.40, subdivision 11, defines “public infrastructure project” as “a project financed in part or in whole with public money in order to support the medical business entity's development plans, as identified in the DMCC development plan” and expressly includes, among other items, the ability to: (1) acquire real property . . . . (3) remediate land and buildings as required to prepare the property for acquisition or development; (4) install, construct, or reconstruct elements of public infrastructure required to support the overall development of the destination medical center development district including, but not limited to, utilities systems and related facilities, utility relocations and replacements . . .streetscape improvements, drainage systems, sewer and water systems, . . .landscaping, . . . and other components of community infrastructure. . . . (6) install, construct, or reconstruct, furnish, and equip parks, cultural, and recreational facilities, facilities to promote tourism and hospitality [and] (7) make related site improvements including, without limitation . . . site improvements to support the destination medical center development district . . . .” Minn. Stat. §469.400, subd.11 (2022). We are here Visionary transformation Expands economic development opportunities and activates the public realm Universal access Support local,diverse small businesses Riverfront as a destination and natural corridor •Land Acquisition: Continue conversations with County regarding Mr. Muffler site •Advance engineering and site data: –Advance flood wall work with Army Corps –Due diligence of Red Owl/Time Theater –East Site:site preparation –Helping to craft RFQ/RFP Prior Approved Steps: »City and County have agreed to sale for $450k »City has consultant proposal for this scope Today: •Take action to authorize $800,000 of financial support to advance the downtown riverfront project. Funds for: •Land acquisition ($450k) •Design/Engineering (up to $350k) •These resources are in the prior approved 2023 CIP Request for Action: LINK Bus Rapid Transit and West Transit Village February 2023 LINK BRT Milestones LINK BRT Milestones LINK BRT Milestones West Transit Village Update Mayo Clinic (property owner) identified a preferred development partner at year-end 2022 Next steps: a.1Q 2023: develop conceptual development site plan and BRT infrastructure plan for the site, in conjunction with Mayo Clinic, DMC and the City of Rochester b.Spring 2023: preliminary plan ready for Risk Workshop with the Federal Transit Administration Downtown Rochester Task Force February 2023 TODAY Background1 Current Work2 Next Steps3 Rochester Ready Downtown Rochester Taskforce TBD Crisis Recovery Resilience Stages of Response to the Pandemic Who: Destination Medical Center, City of Rochester, Mayo Clinic, Rochester Area Economic Development Agency, Inc., Rochester Area Chamber of Commerce, Rochester Downtown Alliance, Diversity Council, Experience Rochester, Olmsted County Actions: COVID-19 hotline, liquor license fee deferrals, outdoor dining accelerating permitting, purchase of jersey barriers for outdoor patios, Keep it Local grants, enhancement of Small Business Development Center services Rochester Ready AccomplishmentsCrisis Who: Destination Medical Center, City of Rochester, Mayo Clinic, Rochester Area Economic Development Agency, Inc., Rochester Area Chamber of Commerce, Rochester Downtown Alliance, Diversity Council, Experience Rochester Key Audience: Downtown Stakeholders -Business Owners -Property Owners -Residents -Community Members Downtown Rochester Task Force Scope Collaborating to create a community-based framework for moving downtown Rochester forward and continue down the path of recovery Create an action plan that identifies recommendations for immediate, short-and long-term actions in response to the impact of the pandemic on downtown Rochester Using an accelerated model A focus on downtown Rochester’s current and future as a strong business district, neighborhood, and destination Action plan will identify organizational responsibilities, timelines, and success measurements Stakeholder Engagement Community working sessions to identify key themes/Issues Stakeholder Engagement Determine action steps and accountability Begin Implementation Feb + Mar April May Building the Action Plan in 90 Days Community Working Sessions Monday, Feb 27 from 6-7 p.m., Fagan Studio and Studio 324 Friday, March 3 from 9-10 a.m., Chateau Theatre Monday, March 6 from 2-3 p.m., Pasquale’s Neighborhood Pizzeria Tuesday, March 14 from 10-11 a.m. (virtual) Next Steps THANK YOU February 2023 AWARENESS AND PERCEPTIONS OF ROCHESTER AS A LIFE SCIENCES DESTINATION 1)Determine baseline awareness 2)Understand market perceptions 3)Quantify expansion decision-drivers OBJECTIVES Why this matters •Organic job growth ≠ 30,000 jobs over 20 years •Job recruitment will be a requirement for success •Effective recruitment needs to be informed by data Audiences Surveyed EXECUTIVES:Decision makers / high-growth / life science / US, Canada, Europe (n=168). SITE SELECTION:Corporate RE / location advisory / tax & incentive / “connectors” (n=153). Research Methodology 1.Local stakeholder listening sessions (4) 2.In-depth interviews (10) 3.Quantitative survey (n=321) 4.Data scrub & analysis Awareness Q10: How much do you know about ………. (n = 153/168) 79% 31% 5% BASELINE AWARENESS TA R G E T POSITIVE FEELINGS TOWARDS MAYO CLINIC (VERY OR SOMEWHAT) Q14: What are feelings toward the Mayo Clinic? (n = 149/166) 96%90% Site Selection Executives 3 KEY TAKEAWAYS: AWARENESS 1)Low level of Rochester/DMC awareness. 2)High level of Mayo Clinic awareness with high positivity. 3)Need to educate audiences on what Mayo means to their business. Consideration 91% 9% No Yes CONSIDERED ROCHESTER, MN ALL AUDIENCES Q20: Have you ever considered the Rochester area for an investment project? (n = 153/168) BIGGEST BARRIERS TO CONSIDERATION Unaware Small MarketTalent Unaware Weather Rural/Remote SITE SELECTION EXECUTIVE 1st 2nd 3rd Q4: Have you ever considered a relocation or expansion for your company? (Select all that apply) (n = 168) ALL (100%) CONSIDERED EXPANSION (82%) CONSIDERED ROCHESTER (7%) 75% “CONSIDERATION GAP” 1.Consideration gap is huge. 2.Lack of awareness is universal. 3.Misperceptions abound. 3 KEY TAKEAWAYS: CONSIDERATION Decision Drivers IMPORTANCE OF LABOR FACTORS Q7: When recommending a community to a life sciences company, how important are the following labor factors?(n=153/168) 82% 67% 54% 52% 37% Talent Pipeline Availability of Scientists Availability of Technicians Availability of Regulatory Costs #1 with Exec & SSC IMPORTANCE OF LOCATION AND COSTS Q7: When recommending a community to a life sciences company, how important are the following labor factors? (n=153/168) 32% 32% 42% 45% 50% Turn-key Lab Space Low Cost Real Estate Competitve Incentives Low Operating Costs Easy Transportation Access #1 with Exec #1 with SSC IMPORTANCE OF COMMUNITY Q9: If you were to ever expand or relocate, how important would the following community factors be to your decision (n=153/168)? 71% 65% 39% Thriving Ecosystem Proximity to Innovation Quality of Life #1 with Exec & SSC 1.Predictable talent pipeline is paramount. 2.High end talent > entry level talent. 3.We need lab space & a thriving ecosystem. 3 KEY TAKEAWAYS: DECISION DRIVERS Awareness and Perception Study Summary STRATEGIC DIRECTIONS BUILD AWARENESS •Rochester as a destination •DMC as a support •Mayo Clinic’s close connection to both BUILD INFRASTRUCTURE •Reduce risk •Speed to market •Make us “bigger” BUILD ECOSYSTEM •Define what is here •Productively engage partners •Improve the product 2023 Progress STRATEGIC PROGRESS: BUILD AWARENESS •2023 Program of Work •New business development focused website being designed and programmed •Enhanced digital marketing, content creation, and story telling in process STRATEGIC PROGRESS: BUILD INFRASTRUCTURE The Wet Lab •Small footprints, shared labs •Short lease terms •Access to shared laboratory equipment and services •Turn -key space options •Available office space 2023 Status •Market demand study underway •Partner identification in process •Capital needed: TBD STRATEGIC PROGRESS: BUILD INFRASTRUCTURE The Maker Lab •Open floor •Shared equipment •Membership-based •3D printers •AR/VR technology •Electronics •Circuit boards •Machinery •Prototyping, MVP STRATEGIC PROGRESS: BUILD INFRASTRUCTURE The Simulation Lab •Flexible simulated healthcare space •Advanced healthcare training •Testing new technologies •AR/VR tech •Live actors and life-like mannequins •Workforce development tool 2023 Status •GRAUC request to legislature •Business and operating model developed •Capital needed: $11.3M STRATEGIC PROGRESS: BUILD ECOSYSTEM •40+ healthcare and life science technology companies •Mayo Clinic •UMR, RCTC, Winona State, GRAUC •Finance, legal, regulatory, compliance, real estate •DMC, RAEDI, Collider, Medical Alley 2023 Status •Needs assessment underway •Three listening sessions convened Industry Economic Development Clinical Settings Research Higher Education Service Providers THANK YOU 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 •DMC investments in: •Transportation •Public Space •Streets and Sewers •Bio-med-tech •Workforce Housing •Program matic initiatives: •Business Recruitment and Marketing •Targeted Business and Workforce Capacity-Building •Community Co-Design Report Highlights (Continued) •Certified 2021 private investment of $155M •Cumulative private investment (through 2021*) by Mayo Clinic and others in DMC initiative exceeds $1.26B •State of Minnesota DMC investment through 2022 totals $97.6M •City of Rochester DMC investment totals $79M •Olmsted County investment totals $16.5M *2022 private investment will be reported in March 2023 Annual Report to the Minnesota State Legislature © 2022 DMC