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HomeMy WebLinkAbout3/23/2023 DMCC Executive Committee Meeting - Presentation (DEED Report)2022 Private Investment Report March 2023 To Minnesota Department of Employment and Economic Development (DEED) TODAY Overview 1 Mayo Clinic Investments 2 Non-Mayo Private Investments3 Authorization of Report to DEED4 DEED Annual Report By April 1 of each year, the DMC Corporation and Mayo Clinic are required to submit to DEED a report of all qualifying investments (construction costs) in the preceding year. DEED certifies the investments, which releases state aid. State aid supports public infrastructure projects in the DMC District, which allows for additional investment to enhance the community experience. Why do we submit an annual report to DEED? DMC ANNUAL STATE AID FORMULA FUNDING FORMULA: Certified Private Investment x 2.75% = State funding for public infrastructure in the DMC district in Rochester, MN Submitted to and Certified by DEED State funding provides many community benefits: Mayo Clinic Capital Investment (Rochester, MN) Non-Mayo Private Investment (DMC District) Total Private Investment Mayo Clinic 2022 Investments Highlights ✓$172.6M invested in Rochester in 2022 ✓Largest annual investment ✓$934.1M invested since the approval of DMC legislation ✓Variety of investments across Mayo Clinic’s campus MAYO CLINIC Investments St. Marys Patient Care Kellen Building Science and Research East Logistics Building Infrastructure MAYO CLINIC Investments Discovery Ramp Infrastructure MAYO CLINIC Future Investments Proton Beam Expansion Patient Care •279 permits in 2022 •Approx. $446M in direct economic impact for the Rochester area economy •Rochester Area Builders (RAB) performed 87% of that work •When the work performed by Mayo Clinic staff is removed from the total, RAB members completed 99% of the construction work Mayo Clinic 2022 Investments Impact on Construction Jobs Non-Mayo Private 2022 Investments Highlights ✓Investments in reuse ✓Investments in new ✓Investments across sectors NON-MAYO PRIVATE Investments Interiors by J.Curry Reuse Uptown Landings Apts. Reuse NON-MAYO PRIVATE Investments Bryk Apartments New Spyhouse Coffee Roasters New NON-MAYO PRIVATE Investments Thermo Fisher Scientific Across Sectors Mezza9 Café + Desserts Across Sectors ANNUAL INVESTMENT CUMULATIVE INVESTMENT •Cumulative overall investment of nearly 1.5 billion •Mayo Clinic’s largest-ever annual investment in the DMC economic development partnership •Met formula requirements to receive maximum annual state aid •2022 total investment above the 8-year average •Investment is trending upward after the world pandemic •Monitoring non-Mayo private investment 2022 Report to DEED Summary Rochester continues to head in the right direction Discussion + Authorization of Report to DEED