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HomeMy WebLinkAbout5/25/2023 DMCC Board of Directors Meeting - Agenda and Meeting Packet Destination Medical Center Corporation Board of Directors Meeting Thursday, May 25, 2023 9:30 A.M. 1 DESTINATION MEDICAL CENTER CORPORATION (DMCC) BOARD MEETING Thursday, May 25, 2023 9:30 A.M. Remote Viewing: https://us02web.zoom.us/j/83645342068 AGENDA PAGE I. Call to Order II. Roll Call III. Approval of Agenda 1 IV. Approval of Minutes: February 9, 2023 3 V. Public Comment VI. Chair’s Report VII. Election of Officers and Appointments A. Election by Board: 1. Chair 2. Vice Chair 3. Treasurer B. Appointment by Chair: 1. Secretary 2. Assistant Treasurer VIII. Consent Agenda A. April 1 Report to DEED Resolution A: Ratifying and Confirming the April 1, 2023 Certification to DEED Pursuant to Statute 7 B. Revisions to Bryk on Broadway Apartments Project Resolution B: Ratifying and Confirming Revisions to the Bryk on Broadway Apartments Project 23 C. DMCC 2023 Budget Year-to-Date Update 29 D. 2022 Capital Improvement Plan (CIP) True-Up and Update 33 E. Resolution C: Commending Dale Martinson, Assistant Treasurer 35 F. DMCC Data Practices Act Policy 37 2 IX. DMCC Audit for Year Ending December 31, 2022 51 (Presenter: Craig Popenhagen, CliftonLarsonAllen) X. EDA Board President Comments XI. DMC Metrics XII. Discussion Items (City of Rochester, EDA) A. Discovery Square (Marketing/Lead Generation and Shared Lab Infrastructure) 89 B. District Energy (Potential Expansion of Downtown System) 93 C. West Transit Village (Development Concepts) 94 D. Rochester Downtown Task Force (Action Plan and Next Steps) 95 XIII. 2024 DMC Work Plan and Budget: Priorities/Points of Emphasis 97 XIV. Status Reports 99 A. Disadvantaged Business Enterprise Utilization B. Downtown Riverfront C. Heart of the City D. Main Street Program E. McKnight Grants F. Mobility G. Private Development H. Equitable Economic Development I. BIPOC Home Ownership J. Soldiers Field Memorial Park XV. Meeting Schedule A. Next Regular Meeting: September 28, 2023 at 9:30 A.M. XVI. Adjournment 1466551-7.DOCX DESTINATION MEDICAL CENTER CORPORATION (DMCC) SPECIAL BOARD MEETING Thursday, February 9, 2023 9:30 A.M. MINUTES I.Call to Order. Chair Pamela Wheelock called the meeting to order at 9:30 a.m. II.Roll Call. Doug Baker, James Campbell, Council President Brooke Carlson, Mayor Kim Norton, R.T. Rybak, Commissioner Mark Thein, Pamela Wheelock, and Paul Williams were present. Mr. Baker and Mr. Campbell participated via interactive technology because they were out of state. III.Approval of Agenda. Commissioner Thein moved approval of the agenda. Mayor Norton seconded the motion. Ayes: Mr. Baker, Mr. Campbell, Council President Carlson, Mayor Norton, Mr. Rybak, Commissioner Thein, Chair Wheelock, and Mr. Williams. Nays: None. IV.Approval of Minutes: November 10, 2022. Mr. Williams moved approval of the minutes. Mayor Norton seconded the motion. Ayes: Mr. Baker, Mr. Campbell, Council President Carlson, Mayor Norton, Mr. Rybak, Commissioner Thein, Chair Wheelock, and Mr. Williams. Nays: None. V.Public Comment. No public comments were offered. VI.Chair’s Report. Chair Wheelock described the meeting discussion items and invited meeting attendees to join the collaborative work session of the DMCC, EDA, City of Rochester, and Olmsted County following the Board meeting. VII.Consent Agenda. A. DMCC 2022 Budget: Year to Date Update. Mayor Norton moved approval of the consent agenda. Council President Carlson seconded the motion. Ayes: Mr. Baker, Mr. Campbell, Council President Carlson, Mayor Norton, Mr. Rybak, Commissioner Thein, Chair Wheelock, and Mr. Williams. Nays: None. VIII.Annual Report to the Legislature. Patrick Seeb, EDA Executive Director, noted that State GSIA funds exceeded City and County DMC funds. Mayor Norton noted that this marks the first year of reaching the maximum State GSIA level. Resolution A: Approving February 15, 2023 Report to the Legislature. Council President Carlson moved approval of the Resolution. Mr. Rybak seconded the motion. Ayes: Mr. Baker, Mr. Campbell, Council President Carlson, Mayor Norton, Mr. Rybak, Commissioner Thein, Chair Wheelock, and Mr. Williams. Nays: None. 3 IX.EDA Board President Comments. Dr. Clark Otley, President of the EDA Board of Directors, noted three recent appointments to the EDA Board and described meeting action and discussion items. X.Metrics: Plan Updates. Mr. Seeb and Catherine Malmberg, EDA Director of Public Infrastructure and Development Strategy, discussed the continued implementation of the Development Plan. Recent planning efforts include refining the community co-design, adoption of the City of Rochester’s Unified Development Code, and the completion of recent market studies. XI.Requests for Action. A. Resolution B: Providing Final Approval for the Expenditure of Funds from the 2023 CIP Budget for the Soldiers Field Project. Chair Wheelock noted that after additional community engagement and collaboration, this item is returning for Board consideration. Jamie Rothe, EDA Director of Community Engagement and Experience, and Mike Nigbur, City of Rochester Parks and Forestry Division Head, presented the project update. Ms. Rothe described the proposed project’s alignment with DMC objectives and community needs. Mr. Nigbur described the proposed park improvements and construction timeline. Council President Carlson moved approval of the Resolution. Mayor Norton seconded the motion. Ayes: Mr. Baker, Mr. Campbell, Council President Carlson, Mayor Norton, Mr. Rybak, Commissioner Thein, Chair Wheelock, and Mr. Williams. Nays: None. B. Resolution C: Providing Final Approval for the Expenditure of Funds from the 2023 CIP Budget for the Riverfront Redevelopment Project. Mr. Seeb, Ms. Malmberg, and Cindy Steinhauser, City of Rochester Deputy Administrator, provided the project update. Mr. Rybak and Chair Wheelock encouraged additional recreational uses of the Zumbro River and adjacent waterfront. Council President Carlson moved approval of the Resolution. Commissioner Thein seconded the motion. Ayes: Mr. Baker, Mr. Campbell, Council President Carlson, Mayor Norton, Mr. Rybak, Commissioner Thein, Chair Wheelock, and Mr. Williams. Nays: None. XII.Discussions (City of Rochester, EDA). A. LINK Bus Rapid Transit and West Transit Village. Ms. Malmberg and Ms. Steinhauser provided rapid transit implementation updates, including plan design and planning for West Transit Village development. They noted that the Board is expected to discuss vehicle design elements at the next meeting. B. Downtown Vibrancy Task Force. Ms. Rothe described the ongoing work and next steps to assist in downtown economic and experience recovery. Downtown stakeholders are providing input to help determine action steps. 4 XIII.EDA Work Plan Implementation. Business Development Market Research. Mike Flynn, EDA Senior Director of Economic Development, and Chris Schad, EDA Director of Business Development, reviewed recent business development research. The research of baseline awareness of the Rochester market, market perceptions, and known business expansion/relocation decision-drivers will inform strategies to build market awareness, support a regional life sciences ecosystem, and make infrastructure investment decisions. Mr. Schad noted that the results of a lab space market demand study will be shared at the May 2023 Board meeting. XIV.Informational Items. A. District Energy. Chair Wheelock requested that staff provide a district energy update at an upcoming Board meeting. XV.Adjournment. Mayor Norton moved to adjourn the meeting. Council President Carlson seconded the motion. Ayes: Mr. Baker, Mr. Campbell, Council President Carlson, Mayor Norton, Mr. Rybak, Commissioner Thein, Chair Wheelock, and Mr. Williams. Nays: None. 5 6 A. DESTINATION MEDICAL CENTER CORPORATION RESOLUTION NO. ___-2023 Ratifying and Confirming the April 1, 2023 Certification to DEED Pursuant to Statute BACKGROUND RECITALS A.Minnesota Statutes, Section 469.47 provides that by April 1 of each year, the medical business entity (Mayo Clinic) must certify to the Commissioner of the Department of Employment and Economic Development (“DEED”) the amount of expenditures made by Mayo Clinic in the preceding year. For expenditures made by an individual or entity other than Mayo Clinic, the Destination Medical Center Corporation (“DMCC”) must compile the information on the expenditures and may certify the amount to DEED. On March 23, 2023, pursuant to Resolution No. EC-8-2023, the Executive Committee of the DMCC Board authorized the Chair or Vice Chair of the DMCC to execute and submit the certification to DEED (the “April 1 Certification”), and to modify the report as necessary upon subsequent discussions with Mayo Clinic or the City of Rochester (the “City”). B.The April 1 Certification is attached as Exhibit A. RESOLUTION NOW, THEREFORE, BE IT RESOLVED, that the Destination Medical Center Corporation Board of Directors ratifies and confirms the action of its Executive Committee and the April 1 Certification and its submittal to the Minnesota Department of Employment and Economic Development as required by Minnesota Statutes, Section 469.47, and authorizes the Chair, Vice Chair, or Treasurer to make such other modifications, and to take such other actions as are necessary and appropriate to effectuate the submission of the certification to DEED. 1463898-2 7 EXHIBIT A 8 DESTINATION MEDICAL CENTER CORPORATION 201 4th St. SE. Rochester, Minnesota 55904 March 28, 2023 VIA ELECTRONIC AND U.S. MAIL Kevin McKinnon Interim Commissioner Minnesota Department of Employment and Economic Development 1St National Bank Building 332 Minnesota Street, Suite F-200 Saint Paul MN 55101 Dear Commissioner McKinnon: On behalf of the Destination Medical Center Corporation ("DMCC") and Mayo Clinic, I am pleased to forward the following materials for the April 1, 2023 certification, pursuant to Minnesota Statutes Section 469.47, Subdivision 2. The expenditures set forth here are the investments that have been made by Mayo Clinic and by other private individuals or entities to advance the Destination Medical Center initiative. 1. DMCC Certification: I enclose the DMCC Certification of Expenditures made by an individual or entity, other than Mayo Clinic, for the period ending on December 31, 2022 ("Attachment 1 "). The City of Rochester, Minnesota assisted with the compilation of this report. The amount of 2022 investments set forth in this report is $26,456,228.36. 2. Mayo Clinic Certification: I enclose correspondence and accompanying materials from Christina Zorn, J.D., Chief Administrative Officer, Mayo Clinic, dated March 16, 2023 ("Attachment 2"). Mayo Clinic is certifying expenditures for the period of January 1, 2022 through December 31, 2022 in the amount of $172,632,461.06. 3. Summary of Investments: The summary page, entitled "Certification of Expenditures, Destination Medical Center" is enclosed, setting forth total cumulative expenditures through December 31, 2022, in the amount of $1,461,132,648.74 ("Attachment 3"). EXHIBIT A 9 Commissioner Steve Grove March 28, 2023 Page 2 would like to emphasize that Mayo Clinic invested the highest-ever annual amount in 2022 through the Destination Medical Center. initiative, signaling its strong leadership in this public-private partnership. In addition, these private investments were made in 2022 despite the ongoing challenges of the COVID-19 pandemic. It is truly remarkable that the cumulative private investments in the Destination Medical Center total nearly $1.5 billion. Thank you for your consideration, and please do not hesitate to contact either DMCC or Mayo Clinic if you need further information. We look forward to continuing to work with the State of Minnesota, City of Rochester, Olmsted County, Mayo Clinic, and our other partners on the Destination Medical Center initiative. Sincerely, Pamela Wheelock ~~.~ Chair Destination Medical Center Corporation Enclosures cc: Destination Medical Center Corporation Board of Directors Christina Zorn, J.D., Mayo Clinic Jeremy LaCroix 1458578-3. DOC 10 ATTACHMENT 1 11 Building Permits within the DMC Boundary (Does not include Mayo Projects) Completed  Year Projects  2018 250,000$  2020 392,588$  2021 4,100,399$  2022 1,213,854$  TOTAL 5,956,841$               2022 Destination Medical Center ‐ Partially Completed Projects Tracking 2021 2022 Project Address Total Building  Permit Value  To Date Partial Completed Work  Bryk Apartments 401 N Broadway 25,000,000.00$ 4,500,612.64$ 20,499,387.36$                   TOTAL 26,456,228.36$           $77$&+0(17 ATTACHMENT    12 2016 2017 2018 Project Address  Partial Completed  Work Claimed Permit Number Value Completion  Date Permit Number Value Completion  Date Total Permits Balance Claimed Balance Claimed  1st Avenue Flats 400 NW 1 Avenue 4,976,244.00$            R16‐0024MFB 622,000.00$          R16‐0008MFB 8,097,735.57$        6/26/2017 8,719,735.57$        3,743,491.57$        ‐$  Lofts at Mayo Park 123 SE 6 Avenue 6,347,552.97$            R15‐0079MFB 794,323.00$          3/6/2017 R16‐0011MFB 6,105,677.00$        8/17/2017 6,900,000.00$        552,447.03$           ‐$  501 on First 501 SW 1 Avenue 12,534,186.96$          R15‐0053MFB 1,555,125.00$      9/2/2016 R15‐0058MFB 11,422,057.75$      1/28/2018 12,977,182.75$     ‐$ 442,995.79$              Flats on 4th (Buckeye) 412 SE 3 Avenue 8,906,937.40$            R15‐0107MFB 2,400,000.00$      12/6/2018 R16‐0009MFB 10,682,292.00$      2/12/2018 13,082,292.00$     ‐$ 4,175,354.60$           TOTAL for 2016 32,764,921.33$      41,679,210.32$  4,295,938.60$    4,618,350.39$        Dollar amount finaled in 2016 1,555,125.00$               Dollar amount submitted for partial work in 2016 31,209,796.33$       TOTAL for 2017 4,295,938.60$         TOTAL for 2018 4,618,350.39$         2017 2018 Project Address  Partial Completed  Work Claimed Permit Number Value Completion  Date Permit Number Value Completion  Date Permit Number Value Completion Date Total Permits Balance  Claimed  Broadway @ Center 10 East Center Street 33,866,963.98$          R15‐0081CB 1,000,000.00$      12/6/2018 R15‐0384CB 45,000,000.00$      TCO 4/1/19 R15‐0447CB 38,282,463.00$     7/25/2019 84,282,463.00$          50,415,499.02$           Discovery Square 202 4th Street SW 2,965,073.30$            R17‐0384CB 1,750,000.00$      11/13/2018 R17‐0454CB 1,290,000.00$        11/13/2018 R17‐0492CB 12,969,000.00$     7/10/2019 16,009,000.00$          13,043,926.70$           TOTAL for 2017 36,832,037.28$      100,291,463.00$     63,459,425.72$       TOTAL for 2018 63,459,425.72$       2018 2019 2020 Project Address  Partial Completed  Work Claimed Permit Number Value Completion  Date Permit Number Value Completion  Date Permit Number Value Completion Date Total Permits Balance Claimed Balance Claimed Ronald McDonald House 850 2nd Street SW 4,872,363.01$            R18‐0048CB 10,126,000.00$    11/4/2019 10,126,000.00$          5,253,636.99$            ‐$  Hotel Indigo (Holiday Inn) 220 South Broadway 1,156,333.15$            R18‐0294CB 500,000.00$          4/19/2021 R18‐0389CB 5,000,000.00$        10/22/2020 R18‐0454CB 5,000,000.00$        10/27/2020 10,500,000.00$          9,343,666.85$            ‐$  Residence @ Dis. Sq. 511 3rd Ave. SW 9,820,880.09$            R17‐0143MFB 1,750,000.00$      8/30/2019 R17‐0141MFB 17,250,000.00$      4/7/2020 19,000,000.00$          9,179,119.91$            ‐$  Urban on First 429 South Broadway 12,455,954.00$          R18‐0003MFB 2,428,958.00$      11/19/2019 R18‐0015MFB 28,380,000.00$      11/19/2019 30,808,958.00$          18,353,004.00$          ‐$  Berkman (Alatus)217 & 301 14th Ave SW 25,936,546.00$          R17‐0157MFB 4,900,000.00$      7/15/2020 R18‐0011MFB 86,237,507.00$      7/15/2020 R18‐0037MFB 2,178,293.00$        7/14/2020 93,315,800.00$       59,063,337.00$          8,315,917.00$        TOTAL for 2018 54,242,076.25$      101,192,764.75$     TOTAL for 2019 101,192,764.75$     TOTAL for 2020 8,315,917.00$         2019 2020 2021 Project Address  Partial Completed  Work Claimed Permit Number Value Completion  Date Permit Number Value Completion  Date Permit Number Value Completion Date Total Permits Balance Counted Balance Counted Ryan/Wells Fargo 21 1st SW 5,250,000.00$        R19‐0029CB 5,250,000.00$      3/27/2020 5,250,000.00$         ‐$  Hyatt House (Civic on First) 315 1st Ave. NW 6,940,448.00$            R18‐0467CB 3,710,000.00$      2/18/2021 R19‐0003D 63,000.00$              R19‐0078CB 28,480,475.00$     2/4/2022 32,253,475.00$          24,151,076.04$          1,161,950.96$           Eleven02 101 11th Ave. SW 4,159,810.90$            R19‐0206CB 6,750,000.00$      2/16/2022 R19‐0235CB 22,940,975.00$      4/26/2021 29,690,975.00$          24,377,346.96$          1,153,817.14$           TOTAL for 2019 16,350,258.90$      48,528,423.00$      2,315,768.10$        TOTAL for 2020 48,528,423.00$       TOTAL for 2021 2,315,768.10$         2020 2021 Project Address  Partial Completed  Work Claimed Permit Number Value Completion  Date Permit Number Value Completion  Date Permit Number Value Completion Date Total Permits Balance Counted Two Discovery Square 415 2 Ave SW 5,553,179.85$        R20‐0243CB 7,500,000.00$   12/15/2021 R20‐0281CB 2,200,000.00$     12/15/2021 R20‐0312CB 10,461,480.00$  3/2/2022 20,161,480.00$       14,608,300.15$       TOTAL for 2020 5,553,179.85$         TOTAL for 2021 14,608,300.15$       2021 2022 Project Address  Partial Completed  Work Claimed Permit Number Value Completion  Date Permit Number Value Completion  Date Total Permits Balance Counted Bryk Apartments 401 N Broadway Ave 4,500,612.64$        R21‐0031MFB 1,000,000.00$   8/18/2022 R21‐0038MFB 24,000,000.00$   25,000,000.00$  20,499,387.36$   TOTAL for 2021 4,500,612.64$         TOTAL for 2022 20,499,387.36$         Based on the Application and Certificate for Payment for the project, the total contract price for the development is $33,894,231 2021 Destination Medial Center ‐ Partially Completed Projects Tracking 2021 2020 Destination Medial Center ‐ Partially Completed Projects Tracking 2020 2018 Destination Medial Center ‐ Partially Completed Projects Tracking 2018 2019 Destination Medial Center ‐ Partially Completed Projects Tracking 2017 2016 Destination Medial Center ‐ Partially Completed Projects Tracking 2017 Destination Medial Center ‐ Partially Completed Projects Tracking 2017 ATTACHMENT     13 Permit Type Permit Number Permit Date Parcel ID Address Amount Description Owner Permit Status Date Commercial Bldg R18‐0141CB 7/31/2018 017883 7 SW 2 ST $250,000 New restaurant within an existing space.Yong Hao Liu Finaled 12/9/2022 Commercial Bldg R20‐0225CB 10/26/20 82430 206 BROADWAY AVE S $254,588 Tenant build‐out Cornerstone Management Services Finaled 02/11/22 Commercial Bldg R20‐0153CB 07/02/20 17926 21 1 ST SW $100,000 Interior remodel of existing office. (Wendland‐Utz Law)Chris Wendland C of C Issued 04/27/22 Sign R20‐0120S 12/04/20 17926 21 1 ST SW $38,000 Wall signs for Wells Fargo [lit]none given Finaled 10/21/22 Commercial Bldg R21‐0047CB 3/2/2021 83795 202 SW 4 ST $1,900,000 Tenant fit‐up of offices, conference rooms and lab spaces.  (Discovery Square)Paul Stalboerger CO Issued 3/22/2022 Commercial Bldg R21‐0097CB 4/7/2021 79185 318 SW 1 AVE $1,661,399 Remodeling of the second floor of 318 Commons ‐ offices and collaboration spaces.GH HOLDINGS LLC C of C Issued 4/22/2022 Commercial Bldg R21‐0326CB 9/16/2021 84934 311 NW 1 AVE $52,000 Fit‐up of commercial space to accommodate new salon ARTIKA CIVIC CENTER HOTEL JV LLC C of C Issued 2/22/2022 Commercial Bldg R21‐0442CB 12/15/2021 17773 20 SW 3 ST $25,000 Interior finishes for Mezza Cafe Sammi, Lawernce Finaled 9/16/2022 Commercial Bldg R21‐0443CB 12/15/2021 18097 223 N BROADWAY AVE $230,000 Tenant improvement for a new office space for Ironton IRONTON LLC C of C Issued 7/22/2022 Commercial Bldg R21‐0058MFB 12/3/2021 12780 621 SW 1 ST $120,000 Renovating the following units in Uptown Landings Apartments: G2, 103, 104, 203, 205 & 306 UPTOWN LANDING HOLDINGS LLC Finaled 12/16/2022 Commercial Bldg R21‐0059MFB 12/3/2021 9449 625 SW 3 ST $112,000 Renovations for Uptown Terrace Apartments in the following units: 2, 3, 8, 9, and 15 UPTOWN TERRACE HOLDINGS LLC Finaled 10/21/2022 Commercial Bldg R22‐0045CB 2/1/2022 83795 202 SW 4 ST $20,000 Tenant fit‐up of a conference room for Thermo Fisher Scientific at Discovery Square Thermo Fisher C of C Issued 8/4/2022 Commercial Bldg R22‐0059CB 2/9/2022 81808 212 N BROADWAY AVE $83,490 Tenant fit‐up for Queen Center Interiors by J Curry SKIATHOS LLC C of O Issued 7/6/2022 Commercial Bldg R22‐0060CB 2/10/2022 56916 1125 SW 2 ST $67,000 Replacing small amount of insulation and drywall.  Flooring in eight rooms, laundry room and maintenance offi CARPENTER AND TORGERSON SSMR LLC Finaled 2/23/2022 Commercial Bldg R22‐0146CB 3/31/2022 78774 221 SW 1 AVE $46,000 Addition of doors to Bio Business 6 Sean Williams Finaled 10/18/2022 Commercial Bldg R22‐0214CB 5/20/2022 79921 426 SE 3 AVE $619,300 Interior remodel of existing space into a warming/day shelter. (The Landing)Dan Fifield C of O Issued 11/10/2022 Commercial Bldg R22‐0235CB 6/8/2022 83133 601 SW 2 ST $200,000 Towne Place Suites remodel of existing bar into Spyhouse Coffee Roasters coffee shop TPS ROCHESTER I LLC C of O Issued 11/22/2022 Commercial Bldg R22‐0268CB 7/7/2022 25728 27 SE 9 ST $99,256 Re‐roof at Soldiers Field Plaza TRCH PLAZA LLP Finaled 9/20/2022 Commercial Bldg R22‐0364CB 9/26/2022 18097 223 N BROADWAY AVE $78,808 Roof replacement for 223 Building IRONTON LLC Finaled 12/2/2022 ATTACHMENT    14 ATTACHMENT 2 15 200 First Street SW Rochester, Minnesota 55905 507-284-2511 March 16, 2023 Kevin McKinnon Interim Commissioner Minnesota Department of Employment and Economic Development 1st National Bank Building 332 Minnesota Street, Suite E-200 Saint Paul, MN, 55101-1351 Dear Interim Commissioner McKinnon: Attached with this letter is Mayo Clinic’s certification of qualified expenditures of the medical business entity for the Destination Medical Center (DMC) initiative from January 1, 2022, to December 31, 2022. The amount of qualified investment is approximately $172.6 million. This figure represents Mayo Clinic’s largest-ever annual investment and is a strong signal of our commitment to further solidify Rochester, Olmsted County and the state of Minnesota as a global destination medical center. In 2022, major projects included the ongoing construction of the Anna-Maria and Stephen Kellen Building in downtown Rochester’s Discovery Square and the expansion of the Mayo Clinic Proton Beam Therapy Program. Through 2022, our cumulative DMC investment totaled more than $934.7 million. A significant share of these investments would not be possible without the community infrastructure investments enabled by the unique public resources of the DMC initiative. Looking back on 2022, I am grateful for our hard-working staff in Minnesota and across the globe, who have put the needs of the patient first and sustained Mayo Clinic as a beacon of hope and healing. Last year, our Mayo Clinic teams served about 1.4 million patients from nearly 130 countries. In recognition of staff excellence, Mayo Clinic made unprecedented investments in our employees in 2022. Additionally, we remained focused on addressing pressing needs in our community, forging innovative partnerships to tackle social determinants of health, and strengthening the health and vibrancy of the DMC district that surrounds our downtown campus. Looking ahead, we are confident that Mayo Clinic’s Bold. Forward. strategy has positioned us to lead the transformation of health care, including the transformation of physical health care infrastructure through the construction of new physical spaces in downtown Rochester. Through thoughtful, connected physical and digital frameworks, Mayo Clinic has the potential to make health care better integrated and more seamless for our patients. The DMC initiative is an integral partner in achieving this goal and facilitating and supporting the future of health care. Together, I trust these examples demonstrate Mayo Clinic’s dedication to our patients, our staff, and the places where we live and work. We look forward to maintaining our ongoing DMC partnership with the city of Rochester, Olmsted County and the state of Minnesota. Thank you, Christina Zorn, J.D. Chief Administrative Officer Mayo Clinic $77$&+0(17 ATTACHMENT 16 Approval Date Project/Req Number Project/Equipment Name 2013 - 2021 Expenditures Reported Prior Years Expenditures not previously reported 2022 Expenditures Total Expeditures reported for 2022 Total Spent as of December 31st 2022 02/18/11 7R100580 Mary Brigh East Expansion 2,065,139.65$ -$ -$ -$ 2,065,139.65$ 11/09/12 7R110910 Dermatology Remodel 9,123,648.24$ -$ -$ -$ 9,123,648.24$ 11/09/12 7R121480 Sports Medicine Center 5,666,939.49$ -$ -$ -$ 5,666,939.49$ 07/03/13 7R121370 2915 Warehouse Infrastructure 693,219.52$ -$ -$ -$ 693,219.52$ 07/10/13 7R130470 Core 200 SMH Operating Room Renovation 1,411,411.46$ -$ -$ -$ 1,411,411.46$ 07/10/13 7R100320 Anatomic Pathology Office Remodel 476,041.94$ -$ -$ -$ 476,041.94$ 07/10/13 7R121490 Psychiatry and Psychology Master Plan, Phase 1A - Generose Main 1,213,985.91$ -$ -$ -$ 1,213,985.91$ 07/11/13 7R120570 Development Remodel 2,679,274.32$ -$ -$ -$ 2,679,274.32$ 08/01/13 7R130980/7R130981 Bed Tower Modernization MB east 44,118,257.74$ -$ -$ -$ 44,118,257.74$ 08/01/13 7R130990/7R130991 Domitilla 3 Modernization 7,762,425.78$ -$ -$ -$ 7,762,425.78$ 08/14/13 7R130650 Remodeling laboratory space on Guggenheim 5.265,065.75$ -$ -$ -$ 265,065.75$ 08/29/13 7R130810 Saint Marys Hospital Chiller Addition 4,631,632.46$ -$ -$ -$ 4,631,632.46$ 09/25/13 7R130180 Institute Hills Chiller Replacement 441,903.16$ -$ -$ -$ 441,903.16$ 11/06/13 7R130820 Radiation Oncology Room "E" Linear Accelerator Replacement 188,793.94$ -$ -$ -$ 188,793.94$ 12/11/13 7R110200 DLMP Phlebotomy Remodel 1,615,648.60$ -$ -$ -$ 1,615,648.60$ 02/05/14 7R120870 Mary Brigh Electrical Upgrades (Phase 3)2,002,781.62$ -$ -$ -$ 2,002,781.62$ 02/21/14 7R121420 SDSC Expansion Construction Only 21,500,990.14$ -$ -$ -$ 21,500,990.14$ 02/26/14 7R121080 Creation of the consolidated freezer and BAP facility at the 2915 Warehouse 4,006,693.46$ -$ -$ -$ 4,006,693.46$ 02/26/14 7R130690 Remodeling of multiple laboratories on Guggenheim 8 774,090.58$ -$ -$ -$ 774,090.58$ 03/19/14 7R131440 Four Operating Rooms Off Core 700 3,082,756.73$ -$ -$ -$ 3,082,756.73$ 04/23/14 7R131300 Remodeling within the Metabolomics Core on Alfred 5 616,212.48$ -$ -$ -$ 616,212.48$ 2Q2014 R2007523 / 7R131300 Thermo TSQ Triple Quadrapole MS (assets 147506 & 145344)596,292.00$ -$ -$ -$ 596,292.00$ 04/23/14 7R131420 Remodeling within Opus 1 to accommodate space for a new CT machine.480,162.90$ -$ -$ -$ 480,162.90$ 04/30/14 7R131270 Employee and Community Health Southeast Clinic 4,326,200.60$ -$ -$ -$ 4,326,200.60$ 04/30/14 7R120690 Cardiac Catheterization Procedure Room 103 Remodel - Saint Marys, Mary Brig 412,584.91$ -$ -$ -$ 412,584.91$ 06/04/14 7R140130 Gonda 5, 5th PET/CT Installation & Uptake 301,874.69$ -$ -$ -$ 301,874.69$ 06/18/14 7R140540 Executive, Development and International Program Expansion - Mayo East 5 1,389,522.23$ -$ -$ -$ 1,389,522.23$ 07/02/14 7R131400 DOM 3/4 Infrastructure Revisions for Remodeling 2,109,759.78$ -$ -$ -$ 2,109,759.78$ 07/23/14 7R130760 Clinical Genome Sequencing, Lab Expansion 296,600.82$ -$ -$ -$ 296,600.82$ 08/14/14 CPC2010723 / 7R130820 Varian Medical Systems (asset 145374)3,334,879.00$ -$ -$ -$ 3,334,879.00$ 08/20/14 7R140480 CMCT and Prev. Med. Relocation Gonda 18 to Mayo East 17 358,383.16$ -$ -$ -$ 358,383.16$ 03/04/15 7R140790 Cancer Center Station Eisenberg 4-3 892,147.20$ -$ -$ -$ 892,147.20$ 03/18/15 7R140780 CT Simulator I Replacement Charlton S-259, S-261 191,170.81$ -$ -$ -$ 191,170.81$ 11/13/14 CPC2010473/7R140780 CT Scanner - 5yr (Asset 162815)687,812.80$ -$ -$ -$ 687,812.80$ 04/29/15 7R150070 Charlton 2 Incremental 3T Body Scanner 749,773.48$ -$ -$ -$ 749,773.48$ 04/29/15 CPC2015146/7R150070 3T Siemens Skyra MRI (assest 166875, 167065-167082)1,637,261.00$ -$ -$ -$ 1,637,261.00$ 05/13/15 7R150080 SMC, Mary Brigh Main NH, MR-MCR 1.5T Replacement Scanner 448,573.83$ -$ -$ -$ 448,573.83$ 05/13/15 CPC2015438/7R150080 GE; 1.5T Optima MR450W (assest 165084, 165346-165359)1,130,292.00$ -$ -$ -$ 1,130,292.00$ 05/13/15 7R150090 SMC, Mary Brigh Main NH, MR-MCR 1.5T Replacement Scanner 595,824.88$ -$ -$ -$ 595,824.88$ 05/13/15 CPC2015436/7R150090 DISCOVERY MRI Mary Brigh (assets 169437,171643, 171651, 171661-171672 1,513,704.55$ -$ -$ -$ 1,513,704.55$ 07/22/15 7R130230 Renovation Mary Brigh Main, PACU - Phase 4 2,059,423.01$ -$ -$ -$ 2,059,423.01$ 05/14/15 7R140390 SMH Mary Brigh East Corridor Relocation 4,918,632.07$ -$ -$ -$ 4,918,632.07$ 02/25/15 7R140970 Dr. Lee Diamond Reactor Lab Remodel on Med Sci SL 226,408.57$ -$ -$ -$ 226,408.57$ 7/23/2014 7R131280 MR-RO-CN-1-MR/PET installation 781,558.09$ -$ -$ -$ 781,558.09$ 3rd qtr 2014 CPC2007008/7R131280 GE; DISCOVERY MR750 PET (Assets 149876, ,150145-150157, 150668-15067 3,698,538.02$ -$ -$ -$ 3,698,538.02$ 8/20/2014 7R140140 CT Scanner Replacements (3L, 3Z & 4J) - somatom - CH 2 561,057.62$ -$ -$ -$ 561,057.62$ 3rd qtr 2014 CPC2010196/7R140140 Somatom Force CT (Asset 157628)1,831,372.00$ -$ -$ -$ 1,831,372.00$ 12/11/2014 7R140770 Linear Acc Replace Rm "C"185,937.00$ -$ -$ -$ 185,937.00$ 08/14/14 CPC2010723/7R140770 VARATHON MEDICAL; TRUE BEAM (Asset 162800)2,895,908.00$ -$ -$ -$ 2,895,908.00$ 08/14/14 CPC2010184/7R140770 SIEMENS; CT EDGE (Asset 163463)856,459.02$ -$ -$ -$ 856,459.02$ 08/14/14 CPC2010189/7R140770 SIEMENS; SOMATOM DEFINITION (Asset 164325)862,578.20$ -$ -$ -$ 862,578.20$ 10/9/2014 7R140160 Incremental MRI Body Scanner 603,049.87$ -$ -$ -$ 603,049.87$ 08/14/14 CPC2010068/7R140160 SIEMENS; SKYRA 3TMRI (Asset 157191, 157322-157339)1,859,239.00$ -$ -$ -$ 1,859,239.00$ 12/12/2013 7R121290 GO3 Build 2 CT Bays 656,293.35$ -$ -$ -$ 656,293.35$ 11/13/14 CPC2010188/7R121290 SIEMENS; SOMATOM FORCE CT (Asset 149843)1,750,000.00$ -$ -$ -$ 1,750,000.00$ 05/08/14 CPC2008778/7R120690 PHILIPS; XPER FD20 (Assets 147302, 147339, 147392)1,649,213.30$ -$ -$ -$ 1,649,213.30$ 1/9/2015 7R140090 Neurology Renovation, Mayo 8 4,989,615.93$ -$ -$ -$ 4,989,615.93$ 8/21/2014 7R140220 Mayo 8 - Lobby Remodel 1,137,290.91$ -$ -$ -$ 1,137,290.91$ 4/28/2015 7R140700 Vascular OR Core 801 SMH 1,059,949.88$ -$ -$ -$ 1,059,949.88$ 5/30/2014 7R140170 Rad Vascular Imaging Ste 90 144,461.29$ -$ -$ -$ 144,461.29$ 5/8/2014 CPC2008468/7R140170 SIEMENS MEDICAL; ARTIS ZEE (Asset 146871,146872)985,408.00$ -$ -$ -$ 985,408.00$ 2/4/2014 7R130050 CT MBM Incremental Interventional CT 1,268,114.01$ -$ -$ -$ 1,268,114.01$ 8/1/2013 CPC2002220/7R130050 SIEMENS; DEFINITION EDGE CT (Asset 148622, 148623)1,315,697.00$ -$ -$ -$ 1,315,697.00$ 10/15/2014 7R140150 CH N Neuro Scanner CN l-119C 561,796.54$ -$ -$ -$ 561,796.54$ 8/14/2014 CPC2010082/7R140150 SIEMENS; PRISMA 3T MRI and Accessories (Asset 157677, 157935-157946) 2,241,875.00$ -$ -$ -$ 2,241,875.00$ USPS Building Purchase (Asset 156757, 156758)2,185,017.25$ -$ -$ -$ 2,185,017.25$ 12/11/14 Land for Ronald McDonald House (Asset 147588, 147589)1,000,203.16$ -$ -$ -$ 1,000,203.16$ 8/14/2014 CPC2007616/7R140130 GE; DISCOVERY 710 PET Scanner (Asset 148389)2,103,046.58$ -$ -$ -$ 2,103,046.58$ 2/17/2016 7R151530 Fixed Wing Building 533,262.51$ -$ -$ -$ 533,262.51$ 5/25/2016 7R151390 Hematopathology Consolidation, Hilton Building 7th Floor 2,018,886.34$ -$ -$ -$ 2,018,886.34$ 6/29/2016 7R150870 Vacate Ei 7-1/7-2 Dermatology Phototherapy Phototherapy Relocation 439,830.58$ -$ -$ -$ 439,830.58$ 8/31/2016 7R160520 Relocation of Respiratory Care Unit 1,184,489.68$ -$ -$ -$ 1,184,489.68$ 3/31/2016 7R151490 Linen Service Depot-3939 Building 1,882,309.32$ -$ -$ -$ 1,882,309.32$ 6/30/2016 7R150740 Media On Demand Replacement Project 699,440.19$ -$ -$ -$ 699,440.19$ 7/8/2016 7R151570 Temporal Bone Lab remodel (original $600K)126,259.12$ -$ -$ -$ 126,259.12$ 4/27/2016 7R150760 Dr. Misra Laboratory, Gugg 6 314,232.69$ -$ -$ -$ 314,232.69$ 6/8/2016 7R160650 Lab Remodel Gugg 17 and 18 507,816.33$ -$ -$ -$ 507,816.33$ 9/14/2016 7R160340 Space assignment for Dr. Burns and Dr. Scarisbrick surgery – Guggenheim 6 372,474.03$ -$ -$ -$ 372,474.03$ 9/28/2016 7R151450 Guggenheim 13 Space Remodel 286,997.78$ -$ -$ -$ 286,997.78$ 6/30/2016 7R140810 Charlton Desk R Lobby Remodel 397,223.24$ -$ -$ -$ 397,223.24$ 11/1/2015 7R151060, 7R15106E Jacobson Building Operating Rooms 23,568,520.11$ -$ -$ -$ 23,568,520.11$ 2/17/2016 7R150100 Charlton 1 PET/CT (DRX- 1 Replacement) E-3006 132,948.22$ -$ -$ -$ 132,948.22$ 2/11/2016 CPC2021826/7R150100 GE - Discovery PET/CT 710 (Asset 178322)1,500,726.20$ -$ -$ -$ 1,500,726.20$ May 2016 7R150010 Gastroenterology & Hepatology Renovation 7,362,527.52$ -$ -$ -$ 7,362,527.52$ 9/29/2016 CPC2026475/7R150010 Stryker Sales Corporation - Alfred 6 Integration (Assets 180598-180603)1,126,322.95$ -$ -$ -$ 1,126,322.95$ 9/29/2016 CPC2026506/7R150010 Philips Fluoroscopy (Assets 181122-181123)1,335,625.38$ -$ -$ -$ 1,335,625.38$ Aug 2016 7R160670 7T MRI Scanner 1,916,246.30$ -$ -$ -$ 1,916,246.30$ 2/1/2014 7R140100 SMH Campus Radiology Consolidation 23,568,544.51$ -$ -$ -$ 23,568,544.51$ 11/1/2015 7R150830 Mary Brigh East Tower Additional Floors 17,320,752.84$ -$ -$ -$ 17,320,752.84$ 11/1/2015 7R150670 & 7R150671 Eisenberg 7-1 and 7-2 6,312,270.07$ -$ -$ -$ 6,312,270.07$ 12/1/2015 7R150970 Pre Post Expansion on Gonda 2 Gonda 2-467 266,028.69$ -$ -$ -$ 266,028.69$ 11/19/2015 7R131510 Franklin Heating Station Chiller #4 Replacement 2,286,167.61$ -$ -$ -$ 2,286,167.61$ 11/4/2015 7R141050 Mary Brigh 4, Room 106 Heart Rhythm Services Remodeling 538,995.91$ -$ -$ -$ 538,995.91$ 5/5/2016 CPC2023942/7R141050 Siemens - Fluoroscopy 106 (Asset 172294)1,508,299.00$ -$ -$ -$ 1,508,299.00$ 11/4/2015 7R141060 Mary Brigh 4, Room 111 Heart Rhythm for Equipment Replacement 217,834.13$ -$ -$ -$ 217,834.13$ 8/11/2016 CPC2024041/7R141060 Siemens - Siemens fluoroscopy room 111 (Asset 179164)801,942.00$ -$ -$ -$ 801,942.00$ 11/4/2015 7R150850 Charlton North MR-MCR NU 3T Replacement Scanner 354,930.50$ -$ -$ -$ 354,930.50$ CPC2019384/5/7R150850 MAGNETOM Prisma 3T (asset 173601)2,184,842.00$ -$ -$ -$ 2,184,842.00$ 11/4/2015 7R150840 Charlton North MR-MCR NT 1.5 Replacement Scanner 587,509.18$ -$ -$ -$ 587,509.18$ CPC2019387/7R150840 SIEMENS; 1.5T OPEN 70CM (assets 169436,171642,171650,171652-171660) 1,188,732.00$ -$ -$ -$ 1,188,732.00$ 5/1/2015 7R141150 Research Biplane Angiography System Replacement 78,970.28$ -$ -$ -$ 78,970.28$ 5/1/2015 R2017007/7R141150 SIEMENS; ARTIS ZEE BIPLANE (asset 165045-165046)1,158,442.00$ -$ -$ -$ 1,158,442.00$ 41st Street Professional Complex 9,831,862.38$ -$ -$ -$ 9,831,862.38$ May-16 7R160100, 7R160101, 7R160102, 7R160103 Precision Medicine Initiative 8,392,748.33$ -$ -$ -$ 8,392,748.33$ 2Q16 R2025131/7R160100 Motoman (Asset 184543)4,031,557.00$ -$ -$ -$ 4,031,557.00$ 2Q16 R2025134/7R160100 Autogen (Assets 175437-175447)2,023,074.27$ -$ -$ -$ 2,023,074.27$ 2Q16 R2025138/7R160100 Hamilton Star (Assets 171685, 172326)440,763.20$ -$ -$ -$ 440,763.20$ 2Q16 R2025143/7R160100 Hamilton Bios Freezer (Asset 186447)5,127,252.84$ -$ -$ -$ 5,127,252.84$ Permitted Expenditures from July 1, 2013 to December 31, 2022 ATTACHMENT 2 - 2 17 Approval Date Project/Req Number Project/Equipment Name 2013 - 2021 Expenditures Reported Prior Years Expenditures not previously reported 2022 Expenditures Total Expeditures reported for 2022 Total Spent as of December 31st 2022 Permitted Expenditures from July 1, 2013 to December 31, 2022 2Q16 R2025249/7R160100 PerkinElmer Spectrophotometer (Asset 169459)39,920.00$ -$ -$ -$ 39,920.00$ 3Q16 R2026730/7R160100 Hamilton Robotic Upgrades 45,951.00$ -$ -$ -$ 45,951.00$ 3Q16 R2026898/7R160100 Hamilton Star (Asset 179090)235,653.10$ -$ -$ -$ 235,653.10$ 4Q16 R2027700/7R160100 Hamilton Tube Handler - REQ# 2027700 34,358.20$ -$ -$ -$ 34,358.20$ 1Q17 R2030177/7R160100 Hamilton Capper/Decapper Motoman Line (Asset 183593)77,010.00$ -$ -$ -$ 77,010.00$ 2Q17 R2031170/7R160100 Hamilton Star EasyBlood Liquid Handler (Assets 181647-181649)776,489.90$ -$ -$ -$ 776,489.90$ 3Q16 R2026141/7R160100 Verso M2 - (Asset 179334)729,256.34$ -$ -$ -$ 729,256.34$ 4Q16 R2027695/7R160100 Hamilton EasyBlood Units (Assets 176522-176524)721,818.90$ -$ -$ -$ 721,818.90$ 1Q17 R2029764/7R160100 Hamilton Bios PMI #3 (PO 20028966)4,030,363.09$ -$ -$ -$ 4,030,363.09$ 1Q18 R2035655/7R160100 Hamilton Freezer Bios HL20 (PO 20031301)2,509,226.94$ -$ -$ -$ 2,509,226.94$ 11/1/2015 7R150570, 7R15057A-7R15057D Mary Brigh East Operating Rooms 727,108.67$ -$ -$ -$ 727,108.67$ 8/11/2016 CPC2025789/7R15057B Siemens - Artis Zeeog Card. Thorax (Asset 180570)1,466,062.00$ -$ -$ -$ 1,466,062.00$ 8/11/2016 CPC2026999/7R150570A GE - Discovery IGS 740 (Asset 179172)1,363,946.45$ -$ -$ -$ 1,363,946.45$ 12/1/2015 7R151460 Gonda 14 Radiographic Room DR Conversion E15-3011 RAD-MCR-GO14-R 112,034.00$ -$ -$ -$ 112,034.00$ 12/1/2015 7R151470 Gonda 14-158 Duo DR Replacement, E15-3014 RAD-MCR-GO14-158 154,034.23$ -$ -$ -$ 154,034.23$ 12/1/2015 7R150980 West Pre/Post Remodel, Mary Brigh Main 2,022,954.79$ -$ -$ -$ 2,022,954.79$ 8/19/2015 7R150650 Radiology - Charlton 1, VG6 Replacement E15-3003 138,704.91$ -$ -$ -$ 138,704.91$ 8/19/2015 CPC2015772/7R150650 GE; DISCOVERY 670 PRO 948,408.45$ -$ -$ -$ 948,408.45$ 9/21/2016 7R160970 Cardiovascular Diseases Patient Appointment Coordinator 200,409.53$ -$ -$ -$ 200,409.53$ 12/21/2016 7R151630 Reproductive Endocrinology and Infertility Relocation 2,378,634.23$ -$ -$ -$ 2,378,634.23$ 12/21/2016 7R160540 Remodel Mary Brigh 6 to increase Medical ICU capacity 1,954,174.55$ -$ -$ -$ 1,954,174.55$ 12/31/2016 7R151000 Mayo Building – Substation MA-E-5 Replacement 612,251.93$ -$ -$ -$ 612,251.93$ 5/25/2016 7R151380 Pharmacokinetics Core Relocation 469,019.61$ -$ -$ -$ 469,019.61$ 6/14/2017 7R151560 & 7R170130 Remodel Baldwin 1 for ISP / Baldwin 1 Entry Vestibule Replacement 4,186,165.25$ -$ -$ -$ 4,186,165.25$ 3/15/2017 7R151400 Mycology/TB Expansion Hilton 8 3,256,953.15$ -$ -$ -$ 3,256,953.15$ 3/15/2017 7R160790 CMIL/NIL Relocation and Expansion, Hilton 7 1,511,410.88$ -$ -$ -$ 1,511,410.88$ 9/6/2017 7R151290 Human Cellular Therapy N2 Tank Storage Facility 491,016.90$ -$ -$ -$ 491,016.90$ 9/6/2017 7R160160 Conversion of OR 609 from Hybrid OR to Coventional OR 496,613.67$ -$ -$ -$ 496,613.67$ 9/6/2017 7R170260 Gonda 2 Decontamination Space Remodeling 285,911.99$ -$ -$ -$ 285,911.99$ 9/30/2017 7R170730 Eisenberg AHU S-55 Replacement to Support REI Practice Relocation 803,858.23$ -$ -$ -$ 803,858.23$ 2/2/2017 7R161520 41st Street.4,892,701.70$ -$ -$ -$ 4,892,701.70$ 8/10/2016 7R160940 Guggenheim 15-02 integration of core facility and laboratory program\368,357.82$ -$ -$ -$ 368,357.82$ 3/8/2017 7R160110 Aging Center Space Remodel, Guggenheim 7 551,139.89$ -$ -$ -$ 551,139.89$ 6/22/2016 7R160750 Stabile 11 Lab construction - Revzin 314,372.07$ -$ -$ -$ 314,372.07$ 12/7/2016 7R161510 Installation of Open MRI System, Opus 1 590,676.24$ -$ -$ -$ 590,676.24$ 1/11/2017 7R170020 Lab renovation ST 11, CRM recruit, Dr. Quinn Peterson 121,165.35$ -$ -$ -$ 121,165.35$ 10/5/2016 7R160980 Saint Marys Campus Complex Intervention Unit 2,237,613.54$ -$ -$ -$ 2,237,613.54$ 1/4/2017 7R160290 & 7R160280 E16-3005 MR MCR-GO3 1.5 MR Scanner #1 1,276,416.38$ -$ -$ -$ 1,276,416.38$ 11/10/2016 CPC2026320/7R160280 Siemens - MAGNETOM Aera (Asset 182886; 182863-182881)1,688,565.00$ -$ -$ -$ 1,688,565.00$ 3/30/2017 7R161300 RMC S-8 AHU Replacement 599,281.36$ -$ -$ -$ 599,281.36$ 12/7/2016 7R140380 SMOP/Radiology Desk 3,571,641.14$ -$ -$ -$ 3,571,641.14$ 5/25/2016 7R151430 Mary Brigh Main SMC Radiology Hybrid Procedural Suite - MR Suite 2,180,505.45$ -$ -$ -$ 2,180,505.45$ 5/5/2016 CPC2023488/7R151430 Philips - Ingenia 1.5T Omega HP R5 Q1 (Asset 183632; 183885-183897)1,474,847.09$ -$ -$ -$ 1,474,847.09$ 10/1/2018 7R110520 SMH Bulk Medical Gas Systems Replacement 977,452.73$ -$ -$ -$ 977,452.73$ 10/1/2018 7R140180 Mary Brigh Main WestEntrance Upgrades 1,136,995.31$ -$ -$ -$ 1,136,995.31$ 7/24/2018 7R140240 Neurology EEG/Epilepsy Remodel - DO 2 & JO 2 1,149,596.73$ -$ -$ -$ 1,149,596.73$ 6/13/2018 7R150600 Gugg 13 Remodel 484,303.51$ -$ -$ -$ 484,303.51$ 11/28/2018 7R151140 Plummer Library Renovations Phase 3&4 433,105.21$ -$ -$ -$ 433,105.21$ 5/3/2018 7R151420/CPC2036523 Philips Healthcare (Asset 196890)423,890.40$ -$ -$ -$ 423,890.40$ 2/22/2018 7R160610 Office of Information Security Consolidation 1,117,001.99$ -$ -$ -$ 1,117,001.99$ 6/30/2018 7R160730 Brackenridge Education Room Build out 526,051.76$ -$ -$ -$ 526,051.76$ 11/6/2018 7R161270 USP 800 Haszardous Drug Handling Remodel 1,045,577.42$ -$ -$ -$ 1,045,577.42$ 7/1/2018 7R161450 SMC Chilled Water Distribution Loop 934,150.96$ -$ -$ -$ 934,150.96$ 10/1/2018 7R161501 Joseph Bldg Scope A Centralized Infrastructure 3,276,910.54$ -$ -$ -$ 3,276,910.54$ 3/1/2018 7R170050 RMC S-5 Air Handling Unit Replacement 952,822.05$ -$ -$ -$ 952,822.05$ 3/14/2018 7R170110 Tissue Typing Lab Pre-DNA Extraction Contamination Control 353,779.74$ -$ -$ -$ 353,779.74$ 5/24/2017 7R170450 Retrofitting Med Sci 5 large animal facility; DCM Phase I 637,314.97$ -$ -$ -$ 637,314.97$ 2/22/2018 7R170480 Consolidation/Relocation of Revenue Cycle 2,129,432.35$ -$ -$ -$ 2,129,432.35$ 6/13/2018 7R170500 Gonda 15 Conversation of Family Waiting Room to Pre/Post Space 587,084.72$ -$ -$ -$ 587,084.72$ 6/27/2018 7R170800 GU 5-Chakraborty lab construction, remodel west bay of GU 5 848,596.35$ -$ -$ -$ 848,596.35$ 3/14/2018 7R170900 SMC OR 604,608, and 600 Decontamination Room Remodel, MB 1 1,118,164.67$ -$ -$ -$ 1,118,164.67$ 3/14/2018 7R180140 E-18-3009 NM-MCR-CH1-R-PET/CT DRX2 159,572.79$ -$ -$ -$ 159,572.79$ 6/13/2018 7R180150 SC18-3002 RAD-MCR-MAE4-I-Thoracic Reading Rooms 253,593.73$ -$ -$ -$ 253,593.73$ 7/1/2018 7R180440 Medical Sciences 3 (Dr. A. Pandey and Proteomics Core)231,534.87$ -$ -$ -$ 231,534.87$ 10/1/2018 R2050798 / 7R180440 190235)13,362.24$ -$ -$ -$ 13,362.24$ 10/1/2018 R2050806 / 7R180440 192318)12,000.00$ -$ -$ -$ 12,000.00$ 10/1/2018 R2050567 / 7R180440 190958-190960, 192300)1,308,079.83$ -$ -$ -$ 1,308,079.83$ 10/1/2018 R2049967 / 7R180440 189861,190212,190906,193852)57,209.39$ -$ -$ -$ 57,209.39$ 10/1/2018 R2050783 / 7R180440 Pandey VWR shaker--REQ#--R2050783 (PO 20033611) (Asset 190242)6,893.59$ -$ -$ -$ 6,893.59$ 10/1/2018 R2050789 / 7R180440 Pandey Nikon scope--REQ#--R2050789 (PO 20033602) (Asset 190249)18,799.83$ -$ -$ -$ 18,799.83$ 2/1/2018 8R170470 Centralized Distribution of Utilities 41st Street 4,944,173.53$ -$ -$ -$ 4,944,173.53$ 12/31/2016 7R151620 Hilton Substation Replacement 2,479,367.29$ -$ -$ -$ 2,479,367.29$ 11/15/2017 7R170850 E17-3006 CT-MCR-GO3-R-3V Scanner 59,889.05$ -$ -$ -$ 59,889.05$ 11/15/2017 CPC2030830/7R170850 Siemens Somation Force (Asset 185457)1,930,400.00$ -$ -$ -$ 1,930,400.00$ 3/15/2017 7R140260 Psychiatry & Psychology Master Plan Phase II 1,482,321.51$ -$ -$ -$ 1,482,321.51$ 3/16/2017 7R160140 Upgrade of Medium Voltage Switch Center 1,034,828.91$ -$ -$ -$ 1,034,828.91$ 6/14/2017 7R160370 Mary Brigh Kitchen Replacement East Tower Ground Level 1,646,319.22$ -$ -$ -$ 1,646,319.22$ 3/15/2017 7R160390 E16-3010 MCR-DT-I-Incremental Downtown CT Scanner #1 1,726,161.72$ -$ -$ -$ 1,726,161.72$ 3/15/2017 CPC160390/7R160390 Siemens; Somatom Force CT (Asset 188881)2,084,921.00$ -$ -$ -$ 2,084,921.00$ 6/14/2017 7R160430 E16-3009 RAD-MCR-GO14 Radiographic Room DR Conversion 308,593.62$ -$ -$ -$ 308,593.62$ 6/14/2017 7R160640 Paitent Lifts for Mary Brigh PCU 5C & 5F 829,680.46$ -$ -$ -$ 829,680.46$ 9/6/2017 7R160910 Mary Brigh Shell Space Fit-Up (NICU & PICU)411,886.88$ -$ -$ -$ 411,886.88$ 3/15/2017 7R160950 Antibody/Protein Immunology & Cinical Immunoassay Lab Relocation 3,644,272.87$ -$ -$ -$ 3,644,272.87$ 11/15/2017 7R161180 Saint Marys Dialysis Unit 3,452,808.69$ -$ -$ -$ 3,452,808.69$ 11/15/2017 7R161200 E17-3005 MR-MCR-MBM-R-MR29 Replacement 780,175.64$ -$ -$ -$ 780,175.64$ 11/15/2017 CPC2032958/7R161200 GE; Signa Artist 1.5T (Assets 188037-188049)990,208.00$ -$ -$ -$ 990,208.00$ 11/15/2017 7R161280 Enhanced Critical Care Expansion 171,586.57$ -$ -$ -$ 171,586.57$ 10/26/2016 7R161350 Lowe, and C-SiG 280,649.20$ -$ -$ -$ 280,649.20$ 11/8/2017 7R170040 Gonda 19 space remodel 267,061.02$ -$ -$ -$ 267,061.02$ 12/31/2017 7R170080 SMC Mary Brigh Surgical Services AHU Replacement 2,047,419.63$ -$ -$ -$ 2,047,419.63$ 1Q17 7R160310,7R16031E Mary Brigh 3rd Floor OR Rooms Fit Out 24,543,539.46$ -$ -$ -$ 24,543,539.46$ 9/27/2017 7R160230 Research PET/CT Charlton 6 2,291,819.29$ -$ -$ -$ 2,291,819.29$ R2050020 / 7R160230 Biograph Vision 600 (asset 192309)2,015,000.00$ -$ -$ -$ 2,015,000.00$ 4/11/2019 7R181000 REO Makeup and Export Water Tank 831,767.94$ -$ -$ -$ 831,767.94$ 4/11/2019 ROBB18C0010 Global Business Solutions Consolidation 353,569.35$ -$ -$ -$ 353,569.35$ 3/13/2019 7R180860 RST SMC/RMC Visitior Cafeteria 20,786.96$ -$ -$ -$ 20,786.96$ 2/1/2019 7R170210 Mail Order Pharmacy Relocation 7,545,680.99$ -$ -$ -$ 7,545,680.99$ 4Q2019 CPC2034616, CPC2049576, CPC2049796, CPC2049797 / 7R170210 Pharmacy Automation - Innovation (Asset 195397)2,722,535.76$ -$ -$ -$ 2,722,535.76$ 2Q17 7R161540,7R170920,7R170922- 7R170924, 7R17092E Discovery Square 11,153,447.00$ -$ 128,846.00$ 128,846.00$ 11,282,293.00$ 1Q17 7R161010,7R161020,7R161030, 7R161031,7R161040-7R161042, 7R161050,7R161060,7R161070, 7R161080,7R161090,7R161100, 7R161110,7R161120-7R161123, 7R161130,8R160740 SMC Modernization and Growth 126,681,705.86$ -$ 4,796,690.21$ 4,796,690.21$ 131,478,396.07$ 5/8/2019 7R160701 Sports Medicine Relocaton to DAHLC 4 1,059,766.35$ -$ -$ -$ 1,059,766.35$ ATTACHMENT 2 - 3 18 Approval Date Project/Req Number Project/Equipment Name 2013 - 2021 Expenditures Reported Prior Years Expenditures not previously reported 2022 Expenditures Total Expeditures reported for 2022 Total Spent as of December 31st 2022 Permitted Expenditures from July 1, 2013 to December 31, 2022 2/14/2019 7R170400 / ROAW19C0010 Archives Warehouse Tissue Registry Expansion 6,247,409.20$ -$ 41,510.43$ 41,510.43$ 6,288,919.63$ 1/16/2019 7R170540 Redesign of Jacobson Locker Room 186,270.76$ -$ -$ -$ 186,270.76$ 10/24/2018 7R170820 Remodel of GIH Research Space GU 17, Phase 1 1,287,712.21$ -$ -$ -$ 1,287,712.21$ 5/30/2019 7R180100 SMH River Room 861,050.41$ -$ -$ -$ 861,050.41$ 10/2/2019 7R180120 RST E18-3008 MR-MCR-GO3-I-3T MR Scanner 851,472.87$ -$ -$ -$ 851,472.87$ 3/2/2018 R2036200 / 7R180140 Discovery MI 25CM (Asset 189900)2,697,744.00$ -$ -$ -$ 2,697,744.00$ 9/19/2018 7R180160 Radiology Office Space and 3D Lab on Joseph 6 3,470,339.73$ -$ -$ -$ 3,470,339.73$ 7/27/2018 7R180200 SMC Decontamination Remodel Equipment and Replacement 1,285,541.44$ -$ -$ -$ 1,285,541.44$ 6/26/2019 7R180240 RST Impact Lab Expansion CAR-T Cell Initiative 5,291,397.02$ -$ 431,498.77$ 431,498.77$ 5,722,895.79$ 11/13/2019 7R180310 0068-18 E18-3021-RAD-MCR-MSH-MMB-R-RAD DR Conversion 413,802.12$ -$ -$ -$ 413,802.12$ 8/15/2018 7R180360 Eisenberg Dumbwaiter Replaceme 2,639,381.76$ -$ 103,875.91$ 103,875.91$ 2,743,257.67$ 9/30/2019 7R180450 Administrative Drop In Center 799,099.21$ -$ -$ -$ 799,099.21$ 10/9/2019 7R180480 Dr. Pipe Lab-DiscSq1 849,865.92$ -$ -$ -$ 849,865.92$ 10/18/2018 7R180610 Mayo Clinic Food Service, RMC 531,733.01$ -$ -$ -$ 531,733.01$ 12/10/2018 7R180690 3D Metal Printer for Div of Engineering 720,429.73$ -$ -$ -$ 720,429.73$ 2/14/2019 7R180750 41st Street Complex Employee Cafeteria 5,716,239.14$ -$ -$ -$ 5,716,239.14$ 3Q2019 7R180900 RMC Eisenberg AHU-S62 Replacement 1,020,508.13$ -$ -$ -$ 1,020,508.13$ 2Q2019 ROFF19C0010 41st St Complex Infrastructure Upgrades- Phase 3 2,050,934.06$ -$ -$ -$ 2,050,934.06$ 3Q2019 ROJO18C0020 Joseph 1 Northwest Local Infrastructure-SMC River Room Expansion 110,586.26$ -$ -$ -$ 110,586.26$ 8/28/2019 ROJO19C0010 0050-19 RST Creation of New MED 13 Hospital Service 5,028,032.77$ -$ -$ -$ 5,028,032.77$ 2/14/2019 ROMA18C0020 Mayo 11 Remodel 7,283,353.56$ -$ -$ -$ 7,283,353.56$ 6/26/2019 ROMB19C0030 RST SMC Sterile Processing Renovations 702,992.55$ -$ -$ -$ 702,992.55$ 6/26/2019 ROOP19C0010 Opus MRI install 153,097.45$ -$ -$ -$ 153,097.45$ 6/26/2019 R2064500/ROOP19C0010 3T GE Signa MRI (Assets 200174-200180; 200183)1,506,529.08$ -$ -$ -$ 1,506,529.08$ 6/13/2019 ROXX18C0020 Healthcare Technology Management Expansion at 1937 Building 261,827.59$ -$ -$ -$ 261,827.59$ 10/2/2019 ROXX19E0180 RST Practice Optimization Acceleration 240,840.07$ -$ -$ -$ 240,840.07$ 8/27/2018 7R151420 E17-3007 DE-MCR-CT-MBM-I-MP Hybrid Suite Phase 2 1,292,174.34$ -$ -$ -$ 1,292,174.34$ 5/3/2018 CPC2033104 / 7R151420 PHILIPS; AZURION 7 M20 (Asset 192750)1,259,678.14$ -$ -$ -$ 1,259,678.14$ 6/28/2018 7R170290 Human Cellular Therapy Expansion 2,040,947.48$ -$ 612,005.50$ 612,005.50$ 2,652,952.98$ 12/6/2018 7R180260 Revenue cycle consolidation / relocation 3,978,716.31$ -$ -$ -$ 3,978,716.31$ 8/12/2019 ROSI19C0010-ROSI19C0016 Subway Refresh Project 19,932,021.22$ -$ 236,289.11$ 236,289.11$ 20,168,310.33$ 10/2/2019 R2047012 / 7R180120 GE; SIGNA PREMIER 3T (Assets 197210; 197272-197290)2,635,208.68$ -$ -$ -$ 2,635,208.68$ 9/30/2019 7R170280 Remodel Mayo W15 Lobby and Reception 1,031,244.21$ -$ 219,628.79$ 219,628.79$ 1,250,873.00$ 11/01/19 7R170590 Block 6 Parking Ramp Disco Square 5,903,900.72$ -$ 26,639,493.99$ 26,639,493.99$ 32,543,394.71$ 07/17/19 7R170750 Saint Marys Hopsital Shared Procedural/Simulation/Techology 2,215,197.16$ -$ 2,540.38$ 2,540.38$ 2,217,737.54$ 12/10/2020 7R170980 RMC Surgical Remodel Phase 2 of 5 16,066,278.27$ -$ 1,435,513.28$ 1,435,513.28$ 17,501,791.55$ 09/19/18 7R180180 Patient Lift Installations Mary Brigh 6D 285,286.53$ -$ 230,261.09$ 230,261.09$ 515,547.62$ 12/18/19 7R180280 Gonda 9 GIH Endoscopy Remodel 2,019,408.83$ -$ 99,964.16$ 99,964.16$ 2,119,372.99$ 9/29/2021 7R180300 E18-3004 CT-MCR-ETM-I-MP-HPS-Phase 3 236,152.39$ -$ 2,234,701.13$ 2,234,701.13$ 2,470,853.52$ 3/31/2020 7R180420 2018 Nurse Call System Replacement 249,939.30$ -$ 21,892.54$ 21,892.54$ 271,831.84$ 6/23/2021 7R180590/ROJO18C0030 CV Echo/Stress Consolidation with Renovation on Joseph 4 Infrastructure 1,326,880.38$ -$ 3,518,560.87$ 3,518,560.87$ 4,845,441.25$ 06/26/19 7R180970 E19-3007 MR-CMR-NCL-I 3T 714,188.30$ -$ -$ -$ 714,188.30$ 06/26/19 CPC2053403 / 7R180970 SIEMENS; MAGNETOM VIDA ( Assets 203494-203498; 203501)2,303,782.00$ -$ -$ -$ 2,303,782.00$ 04/10/19 7R180980 E19-3004 MR-MCR-CNL-R-NP MR Scanner 517,723.41$ -$ -$ -$ 517,723.41$ 04/10/19 CPC2051426 / 7R180980 GE; SIGNA PREMIER 3T (Assets 206384,207102,207104,207105,207107,2071 2,350,807.00$ -$ -$ -$ 2,350,807.00$ 9/30/2020 8R141000 Saint Marys Campus Peace Garden Landscaping 642,252.16$ -$ 771,810.79$ 771,810.79$ 1,414,062.95$ 12/16/20 ROEI20C0150 EI 07 Eisenberg 7-4 Remodel 2,506,985.90$ -$ 458,904.27$ 458,904.27$ 2,965,890.17$ 12/18/19 ROFF19C0020 FF 01 Comprehensive Occupational Recovery and Care Coordinat 541,495.56$ -$ 923,405.27$ 923,405.27$ 1,464,900.83$ 12/04/19 ROGE19C0010 GE Inpatient Units Safety Updates and Renovation 4,333,697.20$ -$ (147,513.06)$ (147,513.06)$ 4,186,184.14$ 03/11/20 ROGE20C0010 GE 03 Generose 3W and 3E Safety and Renovations 3,378,648.54$ -$ 246,081.77$ 246,081.77$ 3,624,730.31$ 12/18/19 ROGO19C0020 GO 12 Center for Aesthetic Medicine and Surgery 1,504,070.61$ -$ (2,217.26)$ (2,217.26)$ 1,501,853.35$ 02/26/20 ROGO19C0050 GO 03 SC19-3003 MR-MCR-GO3-I-Patient Prep Remodel 1,617,248.56$ -$ 42,766.62$ 42,766.62$ 1,660,015.18$ 12/16/20 ROGO19C0090 GO 06 Exam Buildout 4,053,387.93$ -$ 399,567.87$ 399,567.87$ 4,452,955.80$ 08/26/20 ROGO19C0100 GO Increase in Capacity for Chemo Chairs 1,141,177.19$ -$ 1,191,380.44$ 1,191,380.44$ 2,332,557.63$ 1/13/2021 ROGO20C0060 GO 12 Medivator Redesign 286,810.17$ -$ 14,035.29$ 14,035.29$ 300,845.46$ 10/02/19 ROJO18C0010 JO Relocation of Occupants to Consolidate Echo Stress 90,903.83$ -$ 5,266.41$ 5,266.41$ 96,170.24$ 11/27/19 ROMB19C0010 MB 01 Frozen Section Laboratory Remodel 1,732,769.00$ -$ 1,300,550.01$ 1,300,550.01$ 3,033,319.01$ 12/07/20 ROMB19C0020 MB MN SC19-3002 DE-MCR-MBM-R-MP Reading Rooms 657,674.41$ -$ -$ -$ 657,674.41$ 10/14/20 ROMB19C0090/ROMB19C0100 MB Core 500 West OR Renovation - North and South 3,206,421.56$ -$ 97,631.96$ 97,631.96$ 3,304,053.52$ 3/31/2020 ROSI19C0020 SI 04 Conferencing Center Refurbish 3,386,764.63$ -$ -$ -$ 3,386,764.63$ 06/26/19 ROXX19C0050 E19-3005 CT-MCR-DT#1-I-CT Scanner 616,162.47$ -$ 14,874.24$ 14,874.24$ 631,036.71$ 06/26/19 CPC2064304 / ROXX19C0050 SIEMENS; SOMATOM DEFINITION (Asset 205102)1,979,199.00$ -$ -$ -$ 1,979,199.00$ 1/19/2021 ROXX19C0270 Outpatient Hematology & CAR-T Move to Charlton-Eisenberg 3,532,441.80$ -$ 725,615.17$ 725,615.17$ 4,258,056.97$ 4/7/2021 ROET20C0010 E21-3005 VNI-MCR-ETMN-R-Angio Rm 6 95,204.45$ -$ 6,120.78$ 6,120.78$ 101,325.23$ 4/7/2021 CPC2073663 / ROET20C0010 SIEMENS; ARTIS Q (Asset 209373)921,342.00$ -$ -$ -$ 921,342.00$ 12/16/20 ROGO20C0290 GO 15 Pain Procedure Room Fluoro Equipment Replacement 159,397.28$ -$ 41,845.33$ 41,845.33$ 201,242.61$ 6/9/2021 ROJB20C0010 JB Shell Space to an Incremental OR 192,553.63$ -$ 475,247.13$ 475,247.13$ 667,800.76$ 1/13/2021 ROSU20C0020 RST SDSC Office to Lab Conversion 2,236,842.53$ -$ 1,393,045.00$ 1,393,045.00$ 3,629,887.53$ 7/15/2021 ROOP20C0010 OP SL Opus and Kellen Utility 259,951.11$ -$ 8,551,706.97$ 8,551,706.97$ 8,811,658.08$ 5/1/2019 ROXX19C0140 Kellen Building 7,690,903.86$ -$ 43,604,890.30$ 43,604,890.30$ 51,295,794.16$ 12/18/2019 7R180030 General Care Pediatric Unit Pl -$ 365,749.64$ 332,920.70$ 698,670.34$ 698,670.34$ 1/6/2022 ROBA20C0010 E21-3009 Rad-MCR-BA-SL-137-&13 -$ 35,001.13$ 774,291.49$ 809,292.62$ 809,292.62$ 10/13/2021 ROCH20C0030 CH E21-X-CH-R-Varian-Ethos Lin -$ 49,845.82$ 303,929.39$ 353,775.21$ 353,775.21$ 10/13/2021 ROCH20C0040 CH E20-X-CH-R-Siemens-CT Scann -$ 14,111.35$ 250,145.89$ 264,257.24$ 264,257.24$ 9/15/2021 RODO20C0010 DO Domitilla Cart Washer -$ 29,131.24$ 372,672.25$ 401,803.49$ 401,803.49$ 10/13/2021 ROEI19C0020 EI Expanded Space for Home Dia -$ 99,353.52$ 66,562.55$ 165,916.07$ 165,916.07$ 5/12/2022 ROEI21C0030 E22-3032 NM-MCR-EI-I-Theranost -$ -$ 1,232,495.36$ 1,232,495.36$ 1,232,495.36$ 5/10/2022 ROFF20C0180 FF ECH Northwest Clinic Phase -$ -$ 884,252.84$ 884,252.84$ 884,252.84$ 7/7/2021 ROFR20C0020 FR GT Francis Staff Cafe & By -$ 106,862.43$ 1,427,385.65$ 1,534,248.08$ 1,534,248.08$ 3/24/2021 ROFR20C0030 FR 03 Lift Installation Peds E -$ 23,537.50$ 338,804.00$ 362,341.50$ 362,341.50$ 3/24/2021 ROGO20C0030 GO 10 Remodel Chemo Pharmacy f -$ 174,658.51$ 377,705.37$ 552,363.88$ 552,363.88$ 9/29/2021 ROGO21C0040 GO Remodel Oncology Team Space -$ 33,404.75$ 618,182.31$ 651,587.06$ 651,587.06$ 5/5/2022 ROGO21C0080 E22-3004 MR-MCR-GO3-R-NY Repla -$ -$ 97,070.00$ 97,070.00$ 97,070.00$ 12/18/2019 ROHA18C0010 HA 05 Data Center Cooling Equi -$ 708,405.28$ 2,566.61$ 710,971.89$ 710,971.89$ 5/19/2021 ROHI20C0020 HI 05 CGSL Expansion on Hilton -$ 76,519.00$ 1,191,417.02$ 1,267,936.02$ 1,267,936.02$ 9/15/2021 ROMA19C0030 MA 04 Remodel Finish Updates o -$ 11,484.80$ 129,595.36$ 141,080.16$ 141,080.16$ 9/15/2021 ROMA20C0010 MA 04 Remodel of Instrumentati -$ 23,200.00$ 244,519.42$ 267,719.42$ 267,719.42$ 8/25/2021 ROMA20C0250 MA 17 International Exam Room -$ -$ 1,055,262.05$ 1,055,262.05$ 1,055,262.05$ 6/16/2022 ROMA22C0010 E22-3012 CT-MCR-MA3-42W-I-CT S -$ -$ 335,834.54$ 335,834.54$ 335,834.54$ 9/15/2021 ROMB20C0020 MB SMC Core 400 West OR Renova -$ 202,378.73$ 2,009,245.95$ 2,211,624.68$ 2,211,624.68$ 7/14/2021 ROMB20C0270 MB Nursing Simulation and Skil -$ 152,266.08$ 1,650,252.09$ 1,802,518.17$ 1,802,518.17$ 11/24/2021 ROMB20C0300 MB SMC IORT -$ 11,605.46$ 367,026.19$ 378,631.65$ 378,631.65$ 9/14/2022 ROMB22C0030 MB Procedure Room Remodel 108 -$ -$ 51,819.10$ 51,819.10$ 51,819.10$ 1/20/2022 RONT21C0010 NT Nassef Tower Kitchen Remode -$ 35,684.48$ 270,487.85$ 306,172.33$ 306,172.33$ 8/4/2021 ROSI21C0010 Siebens 4 Food Services Server -$ 56,697.81$ 1,116,601.37$ 1,173,299.18$ 1,173,299.18$ 11/10/2021 ROXX19C0160 Language Services Space -$ 6,976.50$ 480,394.43$ 487,370.93$ 487,370.93$ 8/11/2021 ROXX19C0180 Palliative Medicine Outpatient -$ 1,102.07$ 184,021.74$ 185,123.81$ 185,123.81$ 3/23/2022 ROXX20C0020 Mayo Clinic Blood Donor Progra -$ 18,450.70$ 268,199.24$ 286,649.94$ 286,649.94$ 6/23/2021 ROXX20C0240 Gonda 6 Echo-Exam, Mayo 6 Core -$ 134,013.42$ 2,727,164.22$ 2,861,177.64$ 2,861,177.64$ 3/24/2021 ROXX20C0270 Brace Shop Relocation from EI -$ 189,821.02$ 5,258.58$ 195,079.60$ 195,079.60$ 8/13/2021 ROXX21C0180 Relocation of Loading Dock for -$ 290,448.60$ 12,441,283.76$ 12,731,732.36$ 12,731,732.36$ 8/13/2021 ROXX21C0200 Utility Tunnel Extension, Pede -$ -$ 13,333,688.59$ 13,333,688.59$ 13,333,688.59$ ROXX21C0230 Mayo Clinic Store - Rochester -$ 1,262.00$ 1,367,538.09$ 1,368,800.09$ 1,368,800.09$ 6/15/2022 ROXX21C0340 IHF Infrastructure Phase 1 -$ 32,523.70$ 124,288.31$ 156,812.01$ 156,812.01$ 12/18/2019 ROGO19C0030 GO 15 Incremental Procedure Room -$ 502,646.76$ 12,238.30$ 514,885.06$ 514,885.06$ 12/18/2019 7R140980 SDSC Employee Cafeteria -$ 2,471,774.77$ 2,448,084.27$ 4,919,859.04$ 4,919,859.04$ 6/26/2019 7R170990 Allergy Procedural Area (L-15) Revnovation -$ 833,370.01$ 76,813.43$ 910,183.44$ 910,183.44$ 10/02/219 7R180490 Outpatient Eisenberg Pharmacy Relocation -$ 696,617.65$ 28,376.08$ 724,993.73$ 724,993.73$ 6/27/2019 ROCH19C0010 CH 01 E19-3008 NM-MCR-CH1-265J-I-PET CT6 and Uptake Space -$ 205,103.94$ -$ 205,103.94$ 205,103.94$ ATTACHMENT 2 - 4 19 Approval Date Project/Req Number Project/Equipment Name 2013 - 2021 Expenditures Reported Prior Years Expenditures not previously reported 2022 Expenditures Total Expeditures reported for 2022 Total Spent as of December 31st 2022 Permitted Expenditures from July 1, 2013 to December 31, 2022 1/30/2020 ROGO19C0080 GO Food Services Catering Area Remodeling -$ 29,400.00$ 306,430.01$ 335,830.01$ 335,830.01$ 9/18/2019 ROHI18C0010 HI Deionized Water Distribution -$ 2,750,516.63$ 309,670.37$ 3,060,187.00$ 3,060,187.00$ 6/26/2019 ROJO19C0030 Jo Infrastructure 2019 Scope B -$ 574.80$ 1,026,789.91$ 1,027,364.71$ 1,027,364.71$ 11/27/2019 ROMB19C0060 MB 07 Patient Lift Installation for MB 7BG -$ 17,450.79$ 526,725.86$ 544,176.65$ 544,176.65$ 3/11/2020 ROMB19C0110 MB Gamma Knife Upgrade -$ 290,258.75$ -$ 290,258.75$ 290,258.75$ ROMB20C0070 MB 5D-E CONVERTING TO NICU -$ 2,813,613.24$ -$ 2,813,613.24$ 2,813,613.24$ 4/25/2019 ROPP19C0010 PP SMC Essential Power Controls -$ 1,503,810.37$ 266,859.35$ 1,770,669.72$ 1,770,669.72$ 3/27/2019 ROXX18E0050 Exterior LED Lighting Energy Efficiency Improvement - Expens -$ 524,128.68$ 23,060.75$ 547,189.43$ 547,189.43$ 12/18/2019 ROXX19C0040 IV Transfusion Specialty Team Space -$ 610,050.37$ 1,281.89$ 611,332.26$ 611,332.26$ 7/7/2021 ROHI20C0020/CPC2082275 NovaSeq -$ -$ 792,850.00$ 792,850.00$ 792,850.00$ 6/16/2022 ROMA22C0010/CPC2080913 CT-MCR-MA3-42W-I-CT Scanner and Inj -$ -$ 1,000,000.00$ 1,000,000.00$ 1,000,000.00$ 5/12/2022 ROEI21C0030/CPC2080017 NM-MCR-EI-I-Theranostics Treatment Center- Phase 2 - Equipment -$ -$ 1,248,423.99$ 1,248,423.99$ 1,248,423.99$ 4/14/2022 ROBA20C0010/CPC2073540 RAD-MCR-MA16-R-Siemens Peds Fluoro Rm -$ -$ 499,797.00$ 499,797.00$ 499,797.00$ 1/20/2022 RONT21C0010/CPC2078573 Rapids Food Service -$ -$ 210,072.77$ 210,072.77$ 210,072.77$ 1/6/2022 ROBA20C0010/CPC2073358 RAD-MCR-BA-SL-137-&138 R-Rad Rm DR Conv (2) -$ -$ 343,005.00$ 343,005.00$ 343,005.00$ 3/3/2022 ROCH20C0030/CPC2078959 Varian -$ -$ 77,000.01$ 77,000.01$ 77,000.01$ 762,070,188.98$ 16,133,812.30$ 156,498,648.76$ 172,632,461.06$ 934,702,650.04$ ATTACHMENT 2 - 5 20 ATTACHMENT 3 21 ATTACHMENT 3 Certification of Expenditure Destination Medical Center For Calendar Year 2022 Due to Commissioner of Employment and Economic Development (DEED) by April 1, 2023 The Medical Business Entity and the Destination Medical Center Corporation (DMCC) Board of Directors (assisted by the City of Rochester) hereby submit to the Department of Employment and Economic Development (DEED) the following report for expenditures that relate to the Destination Medical Center (DMC) Development for the calendar year 2022, and the certifications required to support the documentation under the City of Rochester Commissioner of Employment and Economic Development State Infrastructure Aid Agreement. Expenditures Reported this Year Total Expenditures Reported This Year by Medical Business Entity' Total Expenditures Reported This Year for other Private Entities'~2 TOTAL Expenditures This Year All Expenditures claimed since June 30, 2013 Previous Years Expenditures (cumu~ative) TOTAL Expenditures This Years (from Box 3) All Claimed Expenditures as of 12/31 /22 (Box a plus Box 5) Qualified Expenditures claimed in 2022 (Box s minus $200,000,000) State Aid Qualified for This Year (local government match also required) General State Infrastructure Aid Qualified for (Box ~ mu~tip~ied by .025) State Tt'anSlt Ald Qu811f12d f01' (Box 7 multiplied by .0075 and then multiplied by .6) $172,632,461.06 ~ $26,456,228.36 2 $199,088,689.4 3 $1,262,043,959.32 4 $199,088,689.42 5 $1,461,132,648.74 6 1,261,132,648.7 ~ $34,681,147.84 8 $5,675,096.92 9 By providing my signature below, I am hereby certifying that, to the best of my knowledge, the information stated herein is accurate, true, and complies with the provisions of Minnesota Statutes Section 467.47 and the approved methodology as outlined in the City of Rochester Commissioner of Employment and Economic Development State Infrastructure Aid Agreement. For Expenditures By the Medical Business Entity: ~ {„,;r~ _ ~f r ~. Mayo Clinic Chief Financial Officer For all other Expenditures: 3-20-23 Date 1 ~C a~ a~ ~ ~~ Destination Medical Center Corporation Date Expenditures need to be after June 30, 2013 2Other Private Entities' certification of expenses may be certified retroactively in 2014 after the Destination Medical Center District and Development Plan are adopted. 3This figure is based solely upon project building permit costs. Minn. Stat. § 469.47, subd 1(d) permits additional expenditures, and discussion is underway as to how to document such additional expenditures, which may result in adjustments. Form Revised 03/2023 ATTACHMENT 3 - 1 22 B. DESTINATION MEDICAL CENTER CORPORATION RESOLUTION NO. ___-2023 Ratifying and Confirming Revisions to Bryk on Broadway Apartments Project BACKGROUND RECITALS A. In Resolution 113-2021, the Destination Medical Center Corporation (“DMCC”) approved the Bryk on Broadway Apartments Project, which included a range of housing choices affordable according to adjusted median income (AMI) determinations (the “Project”) as a public infrastructure project. In Resolution 51-2017, the DMCC provided that the DMCC Board of Directors or the DMCC Executive Committee may reconsider prior approval of a project. B. The Project requested a temporary revision in income eligibility due to difficulty in renting units at the 80% AMI level. By correspondence dated March 17, 2023, the City of Rochester (the “City”) and the Destination Medical Center Economic Development Agency (the “EDA”) considered the Project, the requested revisions, and current market conditions and recommended that the DMCC Executive Committee approve certain revisions given the timing needs of the Project. C. On March 23, 2023, pursuant to Resolution No. EC-9-2023, the Executive Committee of the DMCC Board approved modifications to the development assistance agreement and related documents regarding the Project, with certain conditions. The Executive Committee Resolution EC-9-2023 is attached as Exhibit 1. RESOLUTION NOW, THEREFORE, BE IT RESOLVED, that the Destination Medical Center Corporation Board of Directors ratifies and confirms the action of its Executive Committee and the approval of Resolution EC-9-2023 and authorizes the Chair or Treasurer to take such other actions as are necessary and appropriate to effectuate the submission of the findings and approvals of that Resolution. 1463947-3 23 EXHIBIT 1 24 •One-half of the Project's 80% AMI units (54 units) would be available to prospective tenants with income up to 110% or less of current AMI until October 1, 2023. Starting October 1, 2023, absent further approvals, any of these units that are or become vacant shall automatically convert to income eligibility of 80% AMI. •The remaining 80% AMI units (54 units) would remain limited to income of 80% AMI or less. •Any unit that has two or more unrelated adult occupants and at least as many bedrooms as occupants will be deemed eligible for 80% AMI if either (A) each unrelated adult occupant's income does not exceed 80% AMI or (B) the combined income of the unrelated adult occupants does not exceed 80% of AMI multiplied by the number of adult unrelated occupants. •Rent for all of the Project's initially designated 80% AMI units shall remain equal to or less than 30% of 80% of AMI. RESOLUTION NOW, THEREFORE, BE IT RESOLVED, by the Executive Committee of the Destination Medical Center Corporation, that it approves, contingent upon approval by the City, the request of the City and the EDA as set forth in Exhibit A to modify the development assistance agreement and related documents: (1)to permit up to one-half of the Project's 80% AMI units to be available to tenants with income up to 110% or less of current AMI until October 1, 2023. Starting October 1, 2023, absent further approvals, any of these units that are or become vacant shall automatically convert to income eligibility of 80% AMI; and (2)to deem unrelated adult occupants eligible for 80% AMI if either (A) each unrelated adult occupant's income does not exceed 80% AMI or (B) the combined income of the unrelated adult occupants does not exceed 80% of AMI multiplied by the number of adult unrelated occupants. The Executive Committee finds that these revisions are consistent with the Development Plan. BE IT FURTHER RESOLVED, that these approvals are expressly contingent upon (1) the Project's remaining 80% AMI units (54 units) continuing to be limited to income of 80% AMI or less; and (2) rent for all of the Project's initially designated 80% AMI units shall remain equal to or less than 30% of 80% of AMI. BE IT FURTHER RESOLVED, that DMCC Resolution No. 51-2017 is incorporated fully herein by reference. BE IT FURTHER RESOLVED, that City and EDA staff are requested to provide updates with respect the Project. 25 BE IT FURTHER RESOLVED, that the Chair or the Treasurer of the DMCC is authorized to take such actions as are necessary and appropriate to effectuate the findings and approvals of this Resolution. The question was on the adoption of the Resolution and there were 4 YEAS and 0 NAYS, as follows: EXECUTIVE COMMITTEE Destination Medical Center Corporation Kim Norton Mark Thein Pamela Wheelock Paul Williams YEA _x_ _x_ _x_ _x_ RESOLUTION PTED on March 23, 2023. NAY ATTEST: -----1--���...:......__:_/4__.:t��· UL--___!_):...._'t�_:___z.._-_ { Pamela Wheelock, Chair Destination Medical Center Corporation 1456267-9 OTHER 26 Bryk on Broadway Apartments Project DMC Economic Development Agency and City of Rochester Administration  March 17, 2023  STATEMENT OF RECOMMENDATION:  Adopt a resolution authorizing the City to amend the Developer Assistance Agreement (DAA) with Bryk Apartments  Rochester, LLC that would adjust the income eligibility requirements for a portion of the units within the building.  Based on our discussions with the developer, we support amending the Development Agreement to include the following:  1.Allow half of the units (54 units) restricted to 80% AMI to be rented by persons or families whose income is 110% or less of the area median income until October 1, 2023. The rents for these units will remain at 80% AMI levels. Starting October 1, 2023, these units would convert to 80% Units for the remainder of the Qualified Project Period (30 years). Part of the timeline will be to meet with the developer leading into October 2023 to understand how this change has impacted leasing opportunities in the building. Any future change past October 1st, would be brought back to the decision‐making bodies for consideration. 2.In situations where two or more unrelated adult occupants and at least as many bedrooms as occupants are living together, allow for each occupant’s income will be looked at separately in determining if they meet the 80% area median income restriction. PROJECT SUMMARY:  On March 23, 2021, the DMCC Board approved a Resolution (Resolution 113‐2021) between the DMCC Board and the Bryk Apartments  Rochester, LLC to provide up to $2.2M of public infrastructure funding to support the project. The project consists of a 6‐story, 180‐ unit workforce residential apartment building with approximately 7,260 square feet of commercial/retail space, underground and  surface parking, and indoor and outdoor community spaces.  The project is located along North Broadway Avenue between Civic Center  Drive NW and 5th Street NW.  The project provides the following mix of units:  30% of the units (54 units) are affordable at 50% area median income and rents.  Current income limits put the income limits at $39,050 for a 1‐person family (max rent $976), and $55,750 for a 4‐person family (max rent $1,394). 10% of the units (18 units) are affordable at 60% area median income and rents.  Current income limits put the income limits at $46,850 for a 1‐person family (max rent $1,171), and $66,990 for a 4‐person family (max rent $1,673). 60% of the units (108 units) are affordable at 80% area median income and rents.  Current income limits put the income limits at $62,450 for a 1‐person family (max rent $1,561), and $89,200 for a 4‐person family (max rent $2,230). When the project was shared with the DMCC Board in 2021, the Bryk project was presented to the DMCC Board along with its  community benefits which still remain in place. These community benefits are included below.  Mixed Income Workforce Housing: There remain different income levels within the building, allowing for people to remain in the building if they make more money each year and providing a diversity of units at different income levels that more closely match the income makeup of Rochester. Neighborhood Stabilization and Revitalization: Investment in a proximate downtown area and prominent intersection with housing at various affordability levels  Designed to meet Sustainability Performance Goals: The project is tracking to receive Green Communities Certification Transit Corridor Density: The Bryk project is located along a primary transit corridor as identified in the City’s comprehensive plan and provides 180 housing units along this corridor Walkability to downtown and employment: The project is located along the transit corridor, proximate to the bike trail, and 6 blocks away from downtown, a major employment center As outlined above, there are many community benefits to the project that remain for the occupants and City of Rochester. It is a great  multifamily housing project and with this change, we anticipate the project’s leasing success.  The project is nearing completion and the developer has started the lease‐up phase. According to the developer, they have had initial  success filling the units restricted to the 50% and 60% Area Median Income (AMI) levels.  However, they have needed to turn ~40  (;+,%,7$ 27 individuals away from the units restricted to the 80% AMI level since their incomes are slightly above the 80% AMI level. Income limits  are established by the Department of Housing and Urban Development (HUD) on an annual basis. The updated 2023 Income Limits  report has been delayed, causing the developer to rely on 2022 Income Limits to meet the AMI requirements. The developer’s goal  with targeting 80% AMI levels is to provide workforce housing for Rochester’s large population of residency program students, nurses,  and other service industry positions. Based on current income verifications, those positions earn over the 2022 HUD income restrictions  for 80% AMI. This is causing a gap in the developer’s ability to lease units between 60% and 80% AMI levels.  The Bryk is a unique housing product type by targeting 80% AMI levels. Typically, affordable housing projects include a mixture of  market rate and 60% or below units. A reason for this is there are no Property Tax breaks for housing units above 60% AMI. Therefore,  even though the Bryk is required per the DAA to provide rents at 80% AMI, they are taxed at the full market rate for those units. This  coupled with the escalating costs of construction and interest rates has made it very difficult for the developer.  With the slower than expected lease up of the 80% units, in addition to the increase in costs, staff recommend adjusting the income  limits for 54 of the 108 units priced at 80% AMI rents.  Increasing the rent eligibility for 54 of the units will help the build leasing process  and fill the building, while also providing financial relief to the developer. Through this income change, the pool of potential eligible  renters will increase by about 15% or close to 14,000 workers using average wage data provided by the Minnesota Department of  Employment and Economic Development (MN DEED). Please note that this recommendation will not alter the rental rate of the units, but only broaden the income eligibility of potential  renters for 54 of the 180 units in the building. There are no recommended changes to the 50% and 60% AMI rental units.  28 To: Mark Thein, Treasurer Kaela Brennan, Attorney From: Dale Martinson, Assistant Treasurer Date: May 15, 2023 RE: April 2023 DMCC Budget Summary The attached budget summary through April of 2023 reflects DMCC operating expenditures totaling $801,575 of the $3.9 million approved 2023 budget. The remaining amount unspent represents 80% of the total budget with two thirds, or 67%, of the year remaining. An additional December DMC EDA payment application was received in May and amounting to $30,020 of April expense that will soon be paid. You will note that we have now included the “City Project Management Budget” to this operating statement as they act as additional agents of the DMCC. The second and third pages of this summary provides a listing of DMCC authorized capital projects managed by the City of Rochester, and categorized by program budget type. Approximately $1.4 million has been spent so far on these projects so far in 2023 with the majority spent on the Riverfront Reimagined, District Energy, and Rapid Transit projects. Total life-to-date expenditures on these projects is approximately $106.2 million. Please feel free to contact me with any questions or concerns. 29 Destination Medical Center Corporation Financial Budget Summary April 30, 2023 2023 Current Month April 2023 Amount Percent Approved Budget April 2023 Year To Date Remaining Remaining DMCC Corporation: Rents and Leases 34,017 18,383 15,634 46% Professional Services 172,300 1,528 1,647 170,653 99% Travel/Training 6,000 6,000 100% Insurance and Bonds 20,000 7,358 Interest / Other Administrative 3 12 Subtotal DMCC 232,317 1,532 27,400 192,286 83% Third Party Costs - DMC EDA Employee Services 1,289,172 97,668 325,208 963,964 75% Operating Expenses 70,974 14,706 43,725 27,249 38% Operational Costs - Contracted 1,189 (1,189) Economic Development Outreach & Support 691,472 15,358 76,840 614,632 89% Professional Services 517,410 36,696 86,886 430,524 83% Miscellaneous Expenses 54,500 54,500 100% Subtotal EDA 2,623,528 164,428 533,848 2,089,680 80% Third Party Costs - City of Rochester Project Management Budget Employee Services 995,277 64,813 238,635 756,642 76% Contractual Maint and Repair 38,760 48 38,712 100% Expert and Professional Services 8,160 191 7,969 98% Travel/Training/Memberships 13,414 67 678 12,736 95% Operations Expenses 12,990 64 775 12,215 94% Miscellaneous/Other 11,568 11,568 100% Subtotal City Project Management 1,080,169 64,945 240,327 839,842 78% Total DMCC Operations 2023 3,936,014 230,905 801,575 3,134,439 80% Note: An additional payment request received in May that included April DMC EDA charges of $30,020 DMCC Working Capital Note: $1,000 EDA Working Capital Note: $100,000 30 PROJECT PROJECT STATUS YEAR TO DATE EXPENSES PROJECT BUDGET LIFE TO DATE EXPENSES LIFE TO DATE ENCUMBRANCE Administration C.8601 - City Project Administrative Costs-DMCC (Budget-Current Yr)Annual Budget 240,327 1,080,169 2,895,490 C.8606 - City Staff Costs-DMCC - (Budget-Current Yr)Annual Budget 3,140 437,618 C.8607 - County Staff Costs-DMCC Complete 168,754 C.8629 - Development Plan Update Complete 750,000 154,960 C.8632 - Downtown Changes COVID-19 Complee 250,000 43,524 C.8902 - FestivalAreaStdy&ConceptDesign Complete 84,133 Total Administration 243,467 2,080,169 3,784,479 Econ Development/Public Realm C.8624 - ChateauTheatreBldgImprov/Purch Nearly Complete 79,567 9,067,145 8,846,145 C.8625 - Heart of the City Nearly Complete - 20,515,638 21,160,692 564,608 C.8633 - Strategic Development Ongoing 10,000,000 2,200,000 C.8634 - Riverfront Reimagined Study 463,150 1,000,000 642,697 C.8904 - Discovery Walk Active Construction 27,205 15,720,000 9,149,175 7,947,616 Total Econ Development/Public Realm 569,922 56,302,783 41,998,709 8,512,224 Infrastructure C.8611 - San. Sewer 12th Ave from 2nd St NW to 2nd St SW Post Construction - 6,260,294 6,109,559 103,505 C.8612 - West Zmbro San Sewer Lift Line from CookPk to Civic C Drive Complete 950,000 46,592 Combined w/8611 C.8626 - San. Sewer Upsize 1st Ave & 3rd Ave SE on 4th / Govt Cntr Siphon Complete 8,500,000 8,635,287 C.7326 - Reconst 4th St SW from 1st Ave to 6th Ave Complete 2,205,789 2,205,789 C.7319 - Reconst 7th Ave NW from 2nd St NwW to 4st NW Warranty 1,611 1,532,000 1,531,800 C.7318 - Reconst North Broadway -Active Construction - 4,400,000 4,400,000 Full Allocation Share C.1037 - Steam Replace/District Energy Active Construction 232,836 13,000,000 2,024,479 5,155,433 C. 4716 Downtown Sidewalk Experience Enhancement Active Construction - 800,000 800,000 Allocation Share C. 7344 Reconstruct 3rd Avenue NW Between 4th St SW and 5th St SW Design 4,779 368,434 372,076 56,319 C.7830 1st Street NW San Sewer Diversion from 1st Ave to Broadway Post Construction - 1,371,000 1,391,200 Allocation Share C.7919 6th Street Bridge over Zumbro River Design - 280,000 279,588 Total Infrastructure 239,226 39,667,517 27,796,371 5,315,257 DMCC Projects by Category Managed by City of Rochester Through April 2023 31 PROJECT PROJECT STATUS YEAR TO DATE EXPENSES PROJECT BUDGET LIFE TO DATE EXPENSES LIFE TO DATE ENCUMBRANCE DMCC Projects by Category Managed by City of Rochester Through April 2023 Transit C.8614 - DMCTransit&InfrastrctrPgrmMgmt Complete 3,956,739 1,874,219 C.8617 - Broadway @ Center Parking Ramp Complete 10,500,000 10,500,000 C.8618 - SharedParkngStudy&PrgmDevlpmnt Complete 2,061,854 1,874,219 C.8620 - City Loop Plan Complete 1,209,938 968,732 C.8621 - Transit Circulator Study Complete 2,241,532 1,780,877 C.8623 - DMCC Street Use Study Complete 3,117,708 2,885,882 C.8628 - Downtown Circulator Project Complete 269,941 C.8706 - DMCTransitCirculatorTODPlnStdy Complete 829,414 C.8707 - Rapid Transit Projects Design 383,908 24,136,647 9,800,774 C.8709 - Arrive Rochester Implementatn Ongoing 7,956 130,000 126,721 C.8903 - Dedicated Bike Lanes-3rd/4thAve&CtrSt Complete 2,038,300 1,745,083 - Total Transit 391,864 49,392,718 32,655,862 - Grand Total 1,444,479 147,443,187 106,235,420 13,827,481 32 DMC Capital Plan Reconciliation To: DMCC Board of Directors From: DMC EDA Date: May 19, 2023 Request of the board of directors: No action requested. Background: DMC EDA and City staff have reviewed the project budgets approved in the DMC Capital Improvement Program. Staff reconciled expenses and identified approved projects that have not fully expended their allocated budgets. In some cases, project costs were lower than budgeted. In others, annual changes to the DMC capital improvement program, DMC Corp. board priorities, or less-than-favorable project bids resulted in projects being postponed, redefined, or cancelled. The reconciled balance of project budgets is presented in the table below: Project Description City DMC Funds GSIA County DMC Aid Actual Release of Funds City of Rochester Administrative costs for DMC Project 838,616 - - 649,221 189,395 Contributions to DMC Corp for DMCC & EDA expenses 2,437,000 - - 2,041,623 395,377 San. Sewer Upsize 1st Ave & 3rd Ave SE 2,500,000 5,500,000 - 6,662,993 1,337,007 1st St NW San. Sewer Diversion < 1st Ave NW > Broadway - 1,479,000 - 1,400,032 78,968 Arrive Rochester Implementation - Service Fees 180,000 - - 39,400 140,600 ITS Study Repayment 1,600,000 - - - 1,600,000 7,555,616 6,979,000 - 10,793,269 3,741,347 33 34 C. DESTINATION MEDICAL CENTER CORPORATION RESOLUTION NO. ____-2023 Commending Dale Martinson and Expressing Gratitude and Appreciation for His Service to the Destination Medical Center Corporation BACKGROUND RECITALS WHEREAS, the Destination Medical Center Corporation (“DMCC”) was established by law in 2013 to exercise oversight, adopt plans, and approve projects as part of an initiative by the State of Minnesota to make Mayo Clinic, and the City of Rochester, Minnesota (the “City”), a destination medical center; and WHEREAS, since its inception, the DMCC has worked closely with the City to accomplish the goals of the law; and WHEREAS, Dale Martinson has served as the Director of Finance and Information Technology for the City, as well as the Assistant Treasurer for the DMCC, and has been an integral partner in the close cooperation between the DMCC and the City; and WHEREAS, Mr. Martinson offered a unique perspective to the DMCC, by virtue of his 29 years of public service to the City, which enhanced the expertise he offered to the DMCC, including directing the City’s role as fiscal agent of the DMCC, creating the working capital loan framework among the City, the DMCC, and the Destination Medical Center Economic Development Agency, establishing appropriate approvals of expenditures of public funds, and overseeing financial reports and information; and WHEREAS, Mr. Martinson has been instrumental in the formation and governance of the destination medical center initiative since its inception and extraordinarily helpful to the DMCC; and WHEREAS, Mr. Martinson has been unwavering in his stewardship of the City and in his commitment to the citizens of Rochester, as well as in his service to the DMCC and the destination medical center initiative. NOW, THEREFORE, BE IT RESOLVED, by the Destination Medical Center Corporation Board of Directors, that it commends Dale Martinson for his service to the City of Rochester, his work to advance the destination medical center initiative, and his cooperation with the Board. 35 BE IT FURTHER RESOLVED, that the Board expresses its gratitude and appreciation to Mr. Martinson for his willingness to share his significant expertise and experience with the DMCC in its goal to make Rochester, Minnesota, America’s City for Health. 1463060-5.DOCX 36 1 DESTINATION MEDICAL CENTER CORPORATION DATA PRACTICES POLICY Guide for Members of the Public Requesting Information This document is required by Minnesota Statutes, Sections 13.025 and 13.03. 37 2 Right to Access Public Data The Data Practices Act (Minnesota Statutes, Chapter 13) presumes that all government data are public unless a state or federal law specifically classifies them differently. Government data is a term that means all data collected, created, received, maintained, or disseminated by any government entity regardless of its physical form, storage media, or conditions of use. The Data Practices Act also provides that the Destination Medical Center Corporation (DMCC) must keep all government data in a way that makes it easy for you, as a member of the public, to access public data. You have the right to look at (inspect), free of charge, all public data that we keep. You also have the right to get copies of public data. The Data Practices Act allows us to charge for copies. You have the right to look at public data, free of charge, before deciding to request copies. How to Request Data To look at (inspect) data or request copies of data that DMCC keeps, make a written request. Make your written request for data to the appropriate individual listed in the Data Practices Contacts document on page 4. You may make your written request for data by fax, mail, email, or in person, using the data request form on page 6. If you choose not to use the data request form, your written request should: •State that you, as a member of the public, are making a request for data under the Data Practices Act, Minnesota Statutes, Chapter 13; •State whether you would like to look at the data, get copies of the data, or both; and •Provide a clear description of the data you would like to inspect or have copied. You are not required to identify yourself or explain the reason for your data request. However, depending on how you want us to process your request (if, for example, you want us to mail you copies of data, you need to provide us with an address or P.O. Box), we may need some information about you. Please keep in mind that if we do not understand your request and have no way to contact you, we cannot respond to your request. How We Respond to a Data Request Upon receiving your request, we will review it. •We may ask you to clarify what data you are requesting. •If we do not have the data, we will notify you in writing as soon as reasonably possible. •If we have the data, but we are not allowed to give it to you, we will notify you in writing as soon as reasonably possible and identify the law that prevents us from providing the data. •If we have the data, and the data are public, we will respond to your request appropriately and promptly, within a reasonable amount of time by doing one of the following: o Arrange a date, time, and place to inspect data at our offices, for free, if your request is to look at the data, or o Provide you with copies of the data as soon as reasonably possible. You may choose to pick up your copies, or we will mail or email them to you. Information about copy 38 charges is on page 5. We also will arrange for you to pre-pay for the copies. If you want us to send you copies, you will need to provide us with an address or email address. We will provide electronic copies (such as email or CD-ROM) upon request, if we keep the data in that format and we can reasonably make a copy. •Response time may be affected by the size and/or complexity of your request, and also by the number of requests you make in a given period of time. •Following our response, if you do not make arrangements within 10 business days to inspect the data or pay for the copies, we will conclude that you no longer want the data and will consider your request closed. •If you do not understand some of the data (technical terminology, abbreviations, or acronyms), please tell the person who provided the data to you. We will give you an explanation if you ask. The Data Practices Act does not require us to create or collect new data in response to a data request, or to provide data in a specific form or arrangement if we do not keep the data in that form or arrangement. For example, if the data you request are on paper only, we are not required to create electronic documents to respond to your request. If we agree to create data in response to your request, we will work with you on the details of your request, including cost and response time. We are also not required to respond to questions that are not about your data requests, or requests for government data. Requests for Summary Data Summary data are statistical records or reports that are prepared by removing identifying information about individuals from entirely private or confidential data. The preparation of summary data is not a means to gain access to private or confidential data. DMCC will prepare summary data if you make your request in writing and pre-pay for the cost of creating the data. Upon receiving your written request (you may use the data request form on page 6) we will respond within ten business days with the data or details of when the data will be ready and how much we will charge you. 39 Data Practices Contacts Responsible Authority Kaela Brennan General Counsel Destination Medical Center Corporation c/o McGrann Shea 800 Nicollet Mall, Suite 2600 Minneapolis, MN 55402 Phone: 612-338-2525 Email: kmb@mcgrannshea.com Data Practices Compliance Official Pamela Wheelock Chair Destination Medical Center Corporation c/o City Clerk City of Rochester 201 4th Street SE Rochester, MN 55904 Email: pamela.wheelock@dmccorporation.org 40 Copy Costs – Members of the Public Minnesota Statutes, Section 13.03, subdivision 3(c) allows us to charge for copies. You must pay for the copies before we will give them to you. For 100 or Fewer Paper Copies - 25 Cents per Page 100 or fewer pages of black and white, letter, or legal-size paper copies cost 25¢ for a one-sided copy, or 50¢ for a two-sided copy. Most Other Types of Copies - Actual Cost The charge for most other types of copies, when a charge is not set by statute or rule, is the actual cost of searching for and retrieving the data and making the copies, or electronically sending the data. In determining the actual cost of making copies, we include staff or consultant time, the cost of the materials onto which we are copying the data (paper, CD, DVD, etc.), and mailing costs (if any). If your request is for copies of data that we cannot copy ourselves, such as photographs, we will charge you the actual cost we must pay an outside vendor for the copies. The cost of time to search for data, retrieve data, and make copies is determined according to the applicable hourly rate. If, based on your request, we find it necessary for a higher-paid person to search for and retrieve the data, we will calculate search and retrieval charges at the higher salary/wage. 41 Data Request Form – Public Data Minnesota Government Data Practices Act A.COMPLETED BY REQUESTER Request date: The public data I am requesting (Describe the data you are requesting as specifically as possible. Use additional pages, if needed): I am requesting access to data in the following way:  Inspection  Copies  Both inspection and copies Minn. Stat. § 13.03, subd. 3 authorizes us to charge fees to recover costs to provide copies of data, including costs associated with searching, compiling, copying, mailing, or otherwise transmitting data. Prepayment is required before receiving copies of data. We do not charge for inspection of data. Contact information (optional)** Name: Phone number: Email address: Address: We will respond to your request as soon as reasonably possible. ** You do not have to provide any contact information. However, if you want us to mail/email you copies of data, we will need some type of contact information. We also need contact information if we do not understand your request. We will not work on your request until we can clarify it with you. B.COMPLETED BY DMCC INFORMATION CLASSIFIED AS: □Public □Non-Public □Private □Protected Non-Public □Confidential ACTION: □Approved □Approved in Part (explain below) □Denied (explain – include statute) REMARKS OR BASIS FOR DENIAL, INCLUDING STATE STATUTE: COPY CHARGES: □None □___ Pages x 25¢ per page (per side) = $__________ □Employee Time (only charge if over 100 pg)= $__________ (15 min minimum) □Other Charges: _______________________ = $__________ □Special Rate: (attach explanation)= $__________ Total Charges: $__________ AUTHORIZED SIGNATURE: DATE: 42 DESTINATION MEDICAL CENTER CORPORATION DATA PRACTICES POLICY Guide for Requests for Data About You and Your Rights as a Data Subject Minnesota Statutes, Sections 13.025 and 13.03 require this policy. 43 Data about You Under the Data Practices Act (Minnesota Statutes, Chapter 13), “government data” means all data collected, created, received, maintained, or disseminated by any government entity regardless of its physical form, storage media, or conditions of use. When you can be identified in government data, you are the “data subject” of that data. The Data Practices Act gives you, as a data subject, certain rights. This policy explains your rights as a data subject, and tells you how to request data about you, your minor child, or someone for whom you are the legal guardian. Classification of Data about You The DMCC may collect and keep data about you only when we have a legal purpose to have the data. We must also keep all government data in a way that makes it easy for you to access data about you. The Data Practices Act presumes that all government data are public unless a state or federal law specifically classifies them differently. Data about you are classified by state law as public, private, or confidential. See below for some examples. Public data: We must give public data to anyone who asks. It does not matter who is asking for the data or why. The following is an example of public data: If you are an employee of a government entity, the fact that you work for the entity, your job title, and terms and conditions of employment relationship is public. Private data: We cannot give private data to the general public. We can share your private data with you, with someone who has your permission, with government entity staff whose job requires or permits them to see the data, and with others as permitted by law or court order. The following are examples of private data about you that we might have: Social security numbers are private data. Confidential data: Confidential data have the most protection. Neither the public nor you may access confidential data - even when the confidential data are about you. We can share confidential data about you with government entity staff who have a work assignment to see the data, and to others as permitted by law or court order. The following is an example of confidential data about you: If you register a complaint with a government entity concerning violations of state laws or local ordinances concerning the use of real property, your identity is confidential. Classifying Data Not About Individuals Nonpublic Data and Protected Nonpublic Data: As to data that does not pertain to individuals, the statutes refer to nonpublic data and protected nonpublic data. Nonpublic data is defined as data not on individuals made by statute or federal law applicable to the data: (a) not accessible to the public; and (b) accessible to the subject, if any, of the data. Protected nonpublic data is defined as data not on individuals made by statute or federal law applicable to the data (a) not public and (b) not accessible to the subject of the data. Your Rights under the Data Practices Act As a data subject, you have the following rights: 44 Access to Your Data You have the right to look at (inspect), free of charge, public and private data that we keep about you. You also have the right to get copies of public and private data about you. The Data Practices Act allows us to charge for copies. You have the right to look at data, free of charge, before deciding to request copies. Also, if you ask, we will tell you whether we keep data about you and whether the data are public, private, or confidential. As a parent, you have the right to look at and get copies of public and private data about your minor children (under the age of 18). As a legally appointed guardian, you have the right to look at and get copies of public and private data about an individual for whom you are appointed guardian. Minors have the right to ask us not to give data about them to their parent or guardian. If you are a minor, we will tell you that you have this right. We will ask you to put your request in writing and to include the reasons that we should deny your parents access to the data. We will make the final decision about your request based on your best interests. When We Collect Data from You When we ask you to provide data about yourself that are not public, we must give you a notice called a Tennessen warning. The notice controls what we do with the data that we collect from you. Usually, we can use and release the data only in the ways described in the notice. We will ask for your written permission if we need to use or release private data about you in a different way, or if you ask us to release the data to another person. This permission is called informed consent. If you want us to release data to another person, we must use the consent form that we provide. Protecting Your Data The Data Practices Act requires us to protect your data. We have established appropriate safeguards to ensure that your data are safe. In the unfortunate event that we determine a security breach has occurred and an unauthorized person has gained access to your data, we will notify you as required by law. When your Data are Inaccurate and/or Incomplete You have the right to challenge the accuracy and/or completeness of public and private data about you. You also have the right to appeal our decision. If you are a minor, your parent or guardian has the right to challenge data about you. How to Make a Request for Your Data To look at data, or request copies of data that DMCC keeps about you, your minor children, or an individual for whom you have been appointed legal guardian, make a written request. Make your request for data to the Responsible Authority listed in the Data Practices Contacts document on page 5. You may make your written request by mail, fax, or email, using the data request form on page 8. We recommend using this form. 45 If you do not choose to use the data request form, your request should: •State that you are making a request as a data subject, for data about you (or your child, or person for whom you are the legal guardian), under the Government Data Practices Act (Minnesota Statutes, Chapter 13). •Include whether you would like to inspect the data, have copies of the data, or both. •Provide a clear description of the data you would like to inspect or have copied. •Provide proof that you are the data subject or data subject’s parent/legal guardian. DMCC requires proof of your identity before we can respond to your request for data. If you are requesting data about your minor child, you must show proof that you are the minor’s parent. If you are a legal guardian, you must show legal documentation of your guardianship. Please see the Standards for Verifying Identity on page 7. If you do not provide proof that you are the data subject (or authorized to receive the data), we cannot respond to your request. How We Respond to a Data Request Upon receiving your request, we will review it. •We may ask you to clarify what data you are requesting. •We will ask you to confirm your identity as the data subject or as a person authorized to receive the data. •If we have the data, but the data are confidential or not public data about someone else, we will notify you within 10 business days and identify the law that prevents us from providing the data. •If we have the data, and the data are public or private data about you, we will respond to your request within 10 business days by doing one of the following: o Arrange a date, time, and place to inspect data in our offices, for free, or o Provide you with a copy of the data within 10 business days. Information about copying costs is on page 5. We also will arrange for you to prepay for the copies. You may choose to pick up your copies, or we will mail or fax them to you. We will provide electronic copies (such as email or CD-ROM) upon request if we keep the data in electronic format. •Following our response, if you do not make arrangements within 10 business days to inspect the data or pay for the copies, we will conclude that you no longer want the data and will consider your request closed. •After we have provided you with your requested data, we do not have to show you the same data again for 6 months unless there is a dispute about the data or we collect or create new data about you. If you do not understand some of the data (technical terminology, abbreviations, or acronyms), please let us know. We will give you an explanation if you ask. The Data Practices Act does not require us to create or collect new data in response to a data request, or to provide data in a specific form or arrangement if we do not keep the data in that form or arrangement. For example, if the data you request are on paper only, we are not required to create electronic documents to respond to your request. If we agree to create data in response to your request, we will work with you on the details of your request, including cost and response 46 time. In addition, we are not required to respond to questions that are not about your data requests, or that are not requests for government data. Data Practices Contacts Responsible Authority Kaela Brennan General Counsel Destination Medical Center Corporation c/o McGrann Shea 800 Nicollet Mall, Suite 2600 Minneapolis, MN 55402 Phone: 612-338-2525 Email: kmb@mcgrannshea.com Data Practices Compliance Official Pamela Wheelock Chair Destination Medical Center Corporation c/o City Clerk City of Rochester 201 4th Street SE Rochester, MN 55904 Email: pamela.wheelock@dmccorporation.org Copy Costs – Data Subjects The DMCC charges data subjects for copies of government data. These charges are authorized under Minnesota Statutes, Section 13.04, subdivision 3. You must pay for the copies before we will give them to you. Actual Cost of Making the Copies We will charge the actual cost of making copies for data about you. In determining the actual cost, we include the staff or consultant time to create and send the copies, the cost of the materials onto which we are copying the data (paper, CD, DVD, etc.), and mailing costs such as postage (if any). If your request is for copies of data that we cannot copy ourselves, such as photographs, we will charge you the actual cost we must pay an outside vendor for the copies. The cost of time to make copies is determined according to the applicable hourly rate. 47 Data Request Form – Data Subject Request date: Contact information: Data Subject Name: Parent/Guardian Name (if applicable): Phone number: Email address: To request data as a data subject, you must verify your identity. See reverse for acceptable forms of identification. The data I am requesting (Describe the data you are requesting as specifically as possible): I am requesting access to data in the following way:  Inspection  Copies  Both inspection and copies Minn. Stat. § 13.04, subd. 3 authorizes us to charge fees to recover costs to provide copies of data, including costs associated with copying, mailing, or otherwise transmitting data. Prepayment is required before receiving copies of data. We do not charge for inspection of data. We will respond to your request within 10 business days. To Be Completed By Staff Member Responding to Data Request: Identity Confirmed: INFORMATION CLASSIFIED AS: □Public □Non-Public □Private □Protected Non-Public □Confidential ACTION: □Approved □Approved in Part (explain below) □Denied (explain – include statute) REMARKS OR BASIS FOR DENIAL, INCLUDING STATE STATUTE: COPY CHARGES: □ None □ ___ Pages x 25¢ per page (per side)= $__________ □Hourly Rate Time (to create and send the copies ) (15 min minimum) = $__________ □ Other Charges (mailing, paper, CD, DVD)= $__________ □ Special Rate: (attach explanation)= $__________ Total Charges: $__________ Staff Name: Date: 48 Standards for Verifying Identity The following constitute proof of identity: •An adult individual must provide a valid photo ID, such as o a driver’s license o a state-issued ID o a tribal ID o a military ID o a passport o the foreign equivalent of any of the above •A minor individual must provide a valid photo ID, such as o a driver’s license o a state-issued ID (including a school/student ID) o a tribal ID o a military ID o a passport o the foreign equivalent of any of the above •The parent or guardian of a minor must provide a valid photo ID and either o a certified copy of the minor’s birth certificate or o a certified copy of documents that establish the parent or guardian’s relationship to the child, such as ▪a court order relating to divorce, separation, custody, foster care ▪a foster care contract ▪an affidavit of parentage •The legal guardian for an individual must provide a valid photo ID and a certified copy of appropriate documentation of formal or informal appointment as guardian, such as o court order(s) o valid power of attorney Note: Individuals who do not inspect data or pick up copies of data in person may be required to provide either notarized or certified copies of the documents that are required or an affidavit of ID. 49 50 Board of Directors Destination Medical Center Corporation Rochester, Minnesota We have audited the financial statements of the governmental activities and the general fund of Destination Medical Center Corporation (the Corporation) as of and for the year ended December 31, 2022, and have issued our report thereon dated May 12, 2023. We have previously communicated to you information about our responsibilities under auditing standards generally accepted in the United States of America and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit in our engagement agreement dated May 11, 2023. Professional standards also require that we communicate to you the following information related to our audit. Significant audit findings or issues Qualitative aspects of accounting practices Accounting policies Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the Corporation are described in Note 1 to the financial statements. As described in Note 1 , the Corporation changed accounting policies related to leases by adopting Statement of Governmental Accounting Standards Board (GASB Statement) No. 87, Leases, in 2022. There was no material impact on the Corporation’s financial position and results of operations as a result of the adoption of this accounting standard. We noted no transactions entered into by the Corporation during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates There were no accounting estimates affecting the financial statements which were particularly sensitive or required substantial judgments by management. Financial statement disclosures Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. There were no particularly sensitive financial statement disclosures. The financial statement disclosures are neutral, consistent, and clear. Significant unusual transactions We identified no significant unusual transactions. Difficulties encountered in performing the audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Uncorrected misstatements Professional standards require us to accumulate all misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. 51 Board of Directors Destination Medical Center Corporation Page 2 Management did not identify and we did not notify them of any uncorrected financial statement misstatements. Corrected misstatements Management did not identify and we did not notify them of any financial statement misstatements detected as a result of audit procedures. Disagreements with management For purposes of this communication, a disagreement with management is a disagreement on a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report. No such disagreements arose during our audit. Management representations We have requested certain representations from management that are included in the management representation letter dated May 12, 2023. Management consultations with other independent accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the Corporation’s financial statements or a determination of the type of auditors’ opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Significant issues discussed with management prior to engagement We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to engagement as the Corporation’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our engagement. Required supplementary information With respect to the required supplementary information (RSI) accompanying the financial statements, we made certain inquiries of management about the methods of preparing the RSI, including whether the RSI has been measured and presented in accordance with prescribed guidelines, whether the methods of measurement and preparation have been changed from the prior period and the reasons for any such changes, and whether there were any significant assumptions or interpretations underlying the measurement or presentation of the RSI. We compared the RSI for consistency with management’s responses to the foregoing inquiries, the basic financial statements, and other knowledge obtained during the audit of the basic financial statements. Because these limited procedures do not provide sufficient evidence, we did not express an opinion or provide any assurance on the RSI. 52 Board of Directors Destination Medical Center Corporation Page 3 Other information included in annual reports Other information (financial or nonfinancial information other than the financial statements and our auditors’ report thereon) is being included in your annual report and is comprised of the listing of the board of directors. Our responsibility for other information included in your annual report does not extend beyond the financial information identified in our opinion on the financial statements. We have no responsibility for determining whether such other information is properly stated and do not have an obligation to perform any procedures to corroborate other information contained in your annual report. We are required by professional standards to read the other information included in your annual report and consider whether a material inconsistency exists between the other information and the financial statements because the credibility of the financial statements and our auditors’ report thereon may be undermined by material inconsistencies between the audited financial statements and other information. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Our auditors’ report on the financial statements includes a separate section, “Other Information,” which states we do not express an opinion or any form of assurance on the other information included in the annual report. We did not identify any material inconsistencies between the other information and the audited financial statements. * * * This communication is intended solely for the information and use of the board of directors and management of the Corporation and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Rochester, Minnesota May 12, 2023 53 DESTINATION MEDICAL CENTER CORPORATION (A COMPONENT UNIT OF THE CITY OF ROCHESTER, MINNESOTA) FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2022 54 55 DESTINATION MEDICAL CENTER CORPORATION ROCHESTER, MINNESOTA TABLE OF CONTENTS YEAR ENDED DECEMBER 31, 2022 INTRODUCTORY SECTION  BOARD OF DIRECTORS (UNAUDITED)  SECTION I – FINANCIAL SECTION  INDEPENDENT AUDITORS’ REPORT 1  FINANCIAL STATEMENTS  STATEMENT OF GOVERNMENTAL FUND BALANCE SHEET AND NET POSITION 4  GOVERNMENTAL FUND REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE AND STATEMENT OF ACTIVITIES 5  NOTES TO FINANCIAL STATEMENTS 6  REQUIRED SUPPLEMENTARY INFORMATION  STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – GENERAL FUND 12  SECTION II – COMPLIANCE LETTERS  INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 13  INDEPENDENT AUDITORS’ REPORT ON MINNESOTA LEGAL COMPLIANCE 15  56 57 DESTINATION MEDICAL CENTER CORPORATION ROCHESTER, MINNESOTA BOARD OF DIRECTORS (UNAUDITED) AS OF DECEMBER 31, 2022 BOARD OF DIRECTORS (UNAUDITED) Pamela Wheelock Chair Kim Norton Vice Chair Paul Williams Secretary Mark Thein Treasurer James Campbell Director R.T Rybak Director Brooke Carlson Director Doug M. Baker Director 58 59 SECTION I – FINANCIAL SECTION 60 (This page intentionally left blank) 61 (1) INDEPENDENT AUDITORS’ REPORT Board of Directors Destination Medical Center Corporation Rochester, Minnesota Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities and the general fund of the Destination Medical Center Corporation (the Corporation), a component unit of the City of Rochester, Minnesota, as of and for the year ended December 31, 2022, and the related notes to the financial statements, which collectively comprise the Corporation’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and the general fund of the Corporation, as of December 31, 2022, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Corporation, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Corporation’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 62 Board of Directors Destination Medical Center Corporation (2) Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore, is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Corporation’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Corporation’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the budgetary comparison information be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. 63 Board of Directors Destination Medical Center Corporation (3) We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Management has omitted the Management’s Discussion and Analysis that accounting principles generally accepted in the United States of America requires to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Other Information Management is responsible for the other information included in the annual report. The other information comprises the listing of the board of directors but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 12, 2023, on our consideration of the Corporation’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Corporation’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Corporation’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Rochester, Minnesota May 12, 2023 64 (This page intentionally left blank) 65 DESTINATION MEDICAL CENTER CORPORATION ROCHESTER, MINNESOTA STATEMENT OF GOVERNMENTAL FUND BALANCE SHEET AND NET POSITION DECEMBER 31, 2022 See accompanying Notes to Financial Statements. (4) General Statement of Fund Adjustments Net Position ASSETS Cash 2,181$ -$ 2,181$ Advances to DMC EDA 100,000 - 100,000 Due from Other Governments 168,490 - 168,490 Prepaids 61,307 - 61,307 Total Assets 331,978$ - 331,978 LIABILITIES Accounts Payable 169,671$ - 169,671 Due to Other Governments 101,000 - 101,000 Unearned Revenue 61,307 - 61,307 Total Liabilities 331,978 - 331,978 FUND BALANCE/NET POSITION Fund Balance: Nonspendable 61,307 (61,307) - Unassigned (61,307) 61,307 - Total Fund Balance - - - Total Liabilities and Fund Balance 331,978$ Net Position: Unrestricted - - Total Net Position -$ -$ 66 DESTINATION MEDICAL CENTER CORPORATION ROCHESTER, MINNESOTA GENERAL FUND REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE AND STATEMENT OF ACTIVITIES YEAR ENDED DECEMBER 31, 2022 See accompanying Notes to Financial Statements. (5) General Statement of Fund Adjustments Activities PROGRAM REVENUES Intergovernmental: Local Government 2,009,253$ -$ 2,009,253$ Contributions and Donations - - - Total Program Revenues 2,009,253 - 2,009,253 EXPENDITURES/EXPENSES Economic Development: Building Rent 22,973 - 22,973 Legal Consultants 107,351 - 107,351 Other Professional Services 8,487 - 8,487 Travel and Training 491 - 491 Insurance 13,128 - 13,128 Program Costs 1,856,836 - 1,856,836 Total Expenditures/Expenses 2,009,266 - 2,009,266 Net Program Revenues (13) - (13) GENERAL REVENUES Investment Earnings 13 - 13 Total General Revenues 13 - 13 Change in Fund Balance/Net Position - - - FUND BALANCE/NET POSITION Beginning of Year - - - End of Year -$ -$ -$ 67 DESTINATION MEDICAL CENTER CORPORATION ROCHESTER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022 (6) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Destination Medical Center Corporation (the Corporation) is a component unit of the City of Rochester, Minnesota, and was incorporated on July 23, 2013. The Corporation was established by the City of Rochester, Minnesota pursuant to Minnesota Statutes Section 469.41 as a Minnesota nonprofit corporation. The Corporation was established to benefit the city, and more broadly, Olmsted County and the state of Minnesota by researching, preparing, and implementing a master development plan, including facilitating public infrastructure projects and a variety of development and redevelopment projects, all to promote and provide for the establishment of the city, the County, and the state as a world destination medical center. The Corporation is governed by a board of directors consisting of eight directors. The composition of the board of directors includes the Mayor of the City of Rochester or the Mayor’s designee, the City of Rochester Council President or the President’s designee, the Chair or another member of the County Board of Olmsted County, a representative of Mayo Clinic, and four directors appointed by the Governor of Minnesota. Basis of Presentation The financial statements of the Corporation have been prepared in conformity with accounting principles generally accepted in the United States of America. (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The GASB pronouncements are recognized as generally accepted accounting principles in the United States of America for state and local governments. Financial Reporting Entity The Corporation was established to oversee the planning and implementation of the Destination Medical Center initiative. The Corporation works with the City of Rochester, Minnesota and the Destination Medical Center Economic Development Agency to prepare and adopt a development plan. Component units are legally separate entities for which the Corporation (primary government) is financially accountable, or for which the exclusion of the component unit would render the financial statements of the primary government misleading. The criteria used to determine if the primary government is financially accountable for a component unit include whether or not the primary government appoints the voting majority of the potential component unit’s governing body, is able to impose its will on the potential component unit, is in a relationship of financial benefit or burden with the potential component unit or is fiscally depended upon by the potential component unit. Based on these criteria, there are no organizations considered to be component units of the Corporation. 68 DESTINATION MEDICAL CENTER CORPORATION ROCHESTER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022 (7) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Basic Financial Statement Presentation The General Fund of the Corporation meets the definition of a Special-Purpose government and is involved in only one program, as specified in Minnesota Statutes, Sections 469.40 - 469.47. Accordingly, the Corporation is allowed to combine its government-wide statements with the fund statements. At December 31, 2022, and for the year then ended, there were no reconciling items between the two types of statements. The government-wide financial statements (i.e., the statement of net position and the statement of activities) display information about the reporting government as a whole. These statements include all financial activities of the Corporation. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Other items not properly included among program revenues are reported instead as general revenues. Measurement Focus and Basis of Accounting The accounting and financial reporting treatment applied is determined by its measurement focus and basis of accounting. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Grants and similar items are recognized when all eligibility requirements imposed by the provider have been met. Government fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this basis of accounting, transactions are recorded in the following manner: 1. Revenue Recognition – Revenue is recognized when it becomes measurable and available. “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. State revenue is recognized in the year to which it applies according to Minnesota Statutes and U.S. generally accepted accounting principles. 2. Recording of Expenditures – Expenditures are generally recorded when a liability is incurred. However, expenditures are recorded as prepaid for approved disbursements in advance of the year in which the item is to be used. 69 DESTINATION MEDICAL CENTER CORPORATION ROCHESTER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022 (8) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Budgets and Budgetary Accounting The Corporation adopts an annual budget, which is adopted on a basis consistent with U.S. generally accepted accounting principles (GAAP). Reported budget amounts represent the original adopted budget as amended by the board. Assets, Liabilities, and Fund Balance/Net Position Cash Cash consist of deposits in a checking account and a repurchase agreement account for any available deposits at the end of the business day. Advances Advances consist of monies advanced to the Destination Medical Center Economic Development Agency to fund operational expenses. Due from Other Governments Due from other governments consists of program costs receivable from the City of Rochester, Minnesota. Prepaids Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepayments. Prepaid items are expensed during the periods benefited. Unearned Revenues Unearned revenue is prepaid insurance and unspent dollars that were advanced to the Destination Medical Center Economic Development Agency. Fund Balance In the fund financial statements, governmental funds report fund balances as nonspendable, restricted, committed, assigned, or unassigned. The Corporation currently only reports nonspendable and unassigned fund balance. Restricted fund balances are constrained by outside parties (statute, grantors, bond agreements, etc.). Committed fund balance represents constraints on spending that the Corporation imposes upon itself by high-level formal action prior to the close of the fiscal period. The board of directors authorizes all assigned fund balances and their intended uses. Unassigned fund balances are considered remaining amounts. 70 DESTINATION MEDICAL CENTER CORPORATION ROCHESTER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022 (9) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Assets, Liabilities, and Fund Balance/Net Position (Continued) Fund Balance (Continued) When an expenditure is incurred for which both restricted and unrestricted fund balance is available, it is the Corporation’s policy to use restricted fund balance first, then unrestricted fund balance. When an expenditure is incurred for purposes for which committed, assigned, and unassigned cash fund balance is available, it is the Corporation’s policy to use committed first, then assigned and finally unassigned fund balance. Revenues Intergovernmental revenues are reported under the legal and contractual requirements of the individual programs. Generally, grant revenues are recognized when the corresponding expenditures are incurred. The intergovernmental revenues are entirely provided by the City of Rochester, Minnesota. Investment income is recognized when earned, since it is measurable and available. Expenditures Expenditure recognition in the general fund includes only amounts represented by current liabilities. Noncurrent liabilities are not recognized as governmental fund type expenditures or fund liabilities. Net Position Net position represents the difference between assets and liabilities in the government- wide financial statements. Net position is reported as restricted in the government-wide financial statements when there are limitations imposed on their use through external restrictions imposed by creditors, grantors, laws, or regulations of other governments. NOTE 2 DEPOSITS AND INVESTMENTS A. Deposits In accordance with Minnesota Statutes, the Corporation maintains deposits at depository banks as authorized by the Corporation’s board of directors. Custodial Credit Risk – Custodial credit risk is the risk that in the event of a bank failure, the Corporation’s deposits may not be returned in full. The Corporation’s deposit policy for custodial credit risk follows Minnesota Statutes for deposits. Minnesota Statutes require that all deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or corporate surety bonds. 71 DESTINATION MEDICAL CENTER CORPORATION ROCHESTER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022 (10) NOTE 2 DEPOSITS AND INVESTMENTS (CONTINUED) A. Deposits (Continued) The Corporation’s deposits in banks at December 31, 2022 were entirely covered by federal depository insurance or by surety bonds and collateral in accordance with Minnesota Statutes. B. Investments The Corporation may also invest idle funds as authorized by Minnesota Statutes as follows:  Direct obligations or obligations guaranteed by the United States or its agencies.  Shares of investment companies registered under the Federal Investment Company Act of 1940 and received the highest credit rating, is rated in one of the two highest rating categories by a statistical rating agency, and all of the investments have a final maturity of 13 months or less.  General obligations rated “A” or better; revenue obligations rated “AA” or better.  General obligations of the Minnesota Housing Finance Agency rated “A” or better.  BANKER’S acceptances of United States banks eligible for purchase by the Federal Reserve System.  Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of highest quality category by a least two nationally recognized rating agencies and maturing in 270 days or less.  Guaranteed investment contracts guaranteed by United States commercial banks or domestic branches of foreign banks or United States insurance companies if similar debt obligations of the issuer or the collateral pledged by the issuer is in the top two rating categories.  Repurchase or reverse purchase agreement and securities lending agreements financial institutions qualified as a “depository” by the government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers. The Corporation’s investments consisted of a repurchase agreement with Wells Fargo Bank, N.A. having a balance of $2,181 at December 31, 2022. The securities sold to the Corporation include U.S. Agency Bonds with an AAA rating. The repurchase agreement bears interest at .01% and matures overnight. As such, the repurchase agreement is presented as a cash and investments in the financial statements. Interest Rate Risk – This is the risk that arises because potential purchasers of debt securities will not agree to pay face value for those securities if interest rates subsequently increase. The Corporation’s investment policy limits investments to a maturity of one year, or lesser period that coincides with expected disbursements by the Corporation. Operating reserves may be invested in securities with a maximum maturity of up to three years. 72 DESTINATION MEDICAL CENTER CORPORATION ROCHESTER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022 (11) NOTE 2 DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments (Continued) Custodial Credit Risk – Investments – For an investment, this is the risk that, in the event of a failure by the counterparty, the Corporation will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The Corporation follows state statutes which require that investment balances be fully collateralized. As of December 31, 2022, the securities underlying the repurchase agreement are held by the counterparty in the Corporation’s name. At December 31, 2022, the Corporation had the following deposits and investments: Repurchase Agreement - Wells Fargo Bank, N.A.2,181$ Total Cash and Investments 2,181$ NOTE 3 RISK MANAGEMENT The Corporation is exposed to various risks of loss related to torts, theft of assets, or errors and omissions. The Corporation purchases commercial insurance coverage for such risks. There has been no significant reduction in insurance coverage from the previous year in any of the Corporation’s policies. In addition, there have been no settlements in excess of the Corporation’s insurance coverage in any of the prior three fiscal years. NOTE 4 RELATED ORGANIZATION The Destination Medical Center Economic Development Agency (DMC EDA), a related Minnesota nonprofit corporation, was established by the Mayo Clinic pursuant to Minnesota Statutes Section 469.43. The Corporation does not have a voting majority of the board of directors of DMC EDA, which is considered a stand-alone entity apart from the Corporation and thus, is excluded from the Corporation’s financial statements. Separate financial statements are issued for the DMC EDA. NOTE 5 CONTINGENT LIABILITIES AND COMMITMENTS The Corporation receives financial assistance from state and local governmental agencies. The disbursement of funds received under these programs generally require compliance with the terms and conditions specified in the agreements and are subject to audit by the funding agencies, regulators, and other oversight agencies. Any disallowed claims resulting from such audits could become a liability of the Corporation. Management is not aware of any disallowed claims at this time. 73 REQUIRED SUPPLEMENTARY INFORMATION 74 (This page intentionally left blank) 75 DESTINATION MEDICAL CENTER CORPORATION ROCHESTER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – GENERAL FUND YEAR ENDED DECEMBER 31, 2022 (12) Actual Over (Under) Original Final Amounts Final Budget REVENUES Intergovernmental: Local Government 2,436,317$ 2,436,317$ 2,009,253$ (427,064)$ Investment Earnings - - 13 13 Total Revenues 2,436,317 2,436,317 2,009,266 (427,051) EXPENDITURES Current: Building Rent 38,588 38,588 22,973 (15,615) Legal Consultants 160,000 160,000 107,351 (52,649) Other Professional Services 22,100 22,100 8,487 (13,613) Travel and Training 6,000 6,000 491 (5,509) Insurance 20,000 20,000 13,128 (6,872) Program Costs 2,189,629 2,189,629 1,856,836 (332,793) Total Expenditures 2,436,317 2,436,317 2,009,266 (427,051) EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES -$ -$ - -$ FUND BALANCE Beginning of Year - End of Year -$ Budgeted Amounts 76 (This page intentionally left blank) 77 SECTION II – COMPLIANCE LETTERS 78 (This page intentionally left blank) 79 (13) INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Directors Destination Medical Center Corporation Rochester, Minnesota We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and the general fund of the Destination Medical Center Corporation (the Corporation), a component unit of the City of Rochester, Minnesota, as of and for the year ended December 31, 2022, and the related notes to the financial statements, which collectively comprise the Corporation’s basic financial statements, and have issued our report thereon dated May 12, 2023. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Corporation’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Corporation’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Corporation’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Corporation’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. 80 Board of Directors Destination Medical Center Corporation (14) Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Corporation’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Corporation’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Corporation’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Rochester, Minnesota May 12, 2023 81 (15) INDEPENDENT AUDITORS’ REPORT ON MINNESOTA LEGAL COMPLIANCE Board of Directors Destination Medical Center Corporation Rochester, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities and the general fund of the Destination Medical Center Corporation (the Corporation), as of and for the year ended December 31, 2022, and the related notes to the financial statements, which collectively comprise the Corporation’s basic financial statements, and have issued our report thereon dated May 12, 2023. In connection with our audit, nothing came to our attention that caused us to believe that the Corporation failed to comply with the provisions of the depositories of public funds and public investments, conflicts of interest, claims and disbursements, and miscellaneous provisions sections of the Minnesota Legal Compliance Audit Guide for Other Political Subdivisions, promulgated by the State Auditor pursuant to Minn. Stat. § 6.65, insofar as they relate to accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the Corporation's noncompliance with the above-referenced provisions, insofar as they relate to accounting matters. The purpose of this report is solely to describe the scope of our testing of compliance relating to the provisions of the Minnesota Legal Compliance Audit Guide for Other Political Subdivisions and the results of that testing, and not to provide an opinion on compliance. Accordingly, this report is not suitable for any other purpose. CliftonLarsonAllen LLP Rochester, Minnesota May 12, 2023 82 ©2023 CliftonLarsonAllen LLP. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor. Audit Results for Year Ended December 31, 2022 Destination Medical Center Corporation ©2023 CliftonLarsonAllen LLP 2 Agenda •Financial Statements •Audit Results •Required Communications 83 ©2023 CliftonLarsonAllen LLP 3 Financial Statements •Prepared based on Governmental Accounting Standards Board pronouncements •Single program entity—present expenditures by type (natural classification) •Component unit o DMCC is a component unit of (included in) City of Rochester’s financial statements o DMC EDA is not a component unit of DMCC o Will evaluate component unit reporting annually ©2023 CliftonLarsonAllen LLP 44 Financial Statements : Assets & Liabilities $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 2018 2019 2020 2021 2022 Assets Liabilities 84 ©2023 CliftonLarsonAllen LLP 55 Financial Statements : Revenues & Expenditures $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2018 2019 2020 2021 2022 Revenues Expenditures ©2023 CliftonLarsonAllen LLP 6 Audit Results •Financial statements – clean opinion •Internal controls – no findings •Minnesota legal compliance – no findings 85 ©2023 CliftonLarsonAllen LLP 7 Required Communications •Audit provides reasonable, but not absolute assurance •Accounting policies o Described in Note 1 to the financial statements o No impact from new accounting standard for leases •Audit adjustments – none •No disagreement or difficulties with management ©2023 CliftonLarsonAllen LLP 8 Items to Complete •Federal and state tax filings 86 CLAconnect.com CPAs | CONSULTANTS | WEALTH ADVISORS ©2023 CliftonLarsonAllen LLP. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor. Craig Popenhagen, CPA PrincipalLuke Greden, CPA Manager 2689 Commerce Drive NW, Suite 201 Rochester, MN 55901 Direct (507) 280-2325 Luke.greden@claconnect.com Craig Popenhagen, CPA Principal 2689 Commerce Drive NW, Suite 201 Rochester, MN 55901 Direct (507) 280-2327 Craig.popenhagen@claconnect.com 87 88 Business Development, Lead Generation, & Discovery Square To: DMCC Board of Directors From: DMC EDA Date: May 19, 2023 Request of the board of directors: No action requested. 1.Build Awareness - Rochester as a business destination, DMC as a catalyst for investment, and Mayo Clinic’s close connection to both. •Industry Outreach i.Concluded 1.Phacilitate Advanced Therapies Network, January 2023 2.Arab Health (DEED), February 2023 3.San Francisco lead generation event, March 2023 4.Builder Owner & Manager Association Medical Office event, April 2023 5.Design of Medical Devices conference, April 2023 6.SelectUSA Investment Summit (DEED), May 2023 ii. Upcoming 1.International Society of Cellular Therapies conference, May 2023 2.Western Europe lead generation event, May 2023 3.BIO International, June 2023 4.New York lead generation event, July 2023 •“Connector” Outreach i.Concluded 1.Site Selector’s Guild Annual Meeting (DEED), March 2023 2.Minneapolis site selector outreach, March 2023 •In-Market Hosting i.Concluded 1.France Ambassador and trade officials, January 2023 2.Victoria Trade & Investment (Australia), February 2023 3.Platform Accelerate Cohort 3 launch, March 2023 4.Chicago International Trade Commissioners’ Association (CITCA), April 2023 5.Netherlands Trade Mission, April 2023 •Digital Outreach i.BD website progress ii.San Francisco lead generation (181 companies) iii.GoToMarket Global – UK Life Sciences 89 2.Build Infrastructure - Reduces company risk, increases speed-to-market, and allows Rochester to compete with larger markets. •Facility Logix Shared Lab Study (see separate one-pager for details) •BioLabs market visits, December 2022, March 2023, and May 2023 •Protolab visit, March 2023 •Emerald Cloud Lab visit, March 2023 •Portal Innovations lab visit, April 2023 3.Build the Ecosystem - Identifying partners, engaging them in productive ways to improve the “product” we market to the world. •Healthcare Technology listening sessions (3), February 2023 •Local ED stakeholder listening session (ongoing), March 2023 •“Doing Business in Germany” education session (scheduled), June 2023 •Facilitated meetings with Australian and Netherlands trade officials •Chamber After Hours in Two Discovery Square 90 Discovery Square—Shared Lab Infrastructure To: DMCC Board of Directors From: DMC EDA Date: May 19, 2023 Request of the board of directors: Discussion and/or direction to staff regarding development of shared lab infrastructure Background Study - Market Analysis and Demand • In partnership with Mortenson, contracted with Facility Logix to conduct this study. • Objectives: o Assess the local and regional markets for lab space demand. o Explore the current state of, and make recommendations for, improving the health of Rochester’s innovation ecosystem. o Provide a market assessment of Rochester, MN, for a multi-tenant lab facility (MTLF) on the Discovery Square campus. • Deliverables o Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis. o Recommendations to ensure optimal positioning with respect to its value proposition, market competition, and the ability to achieve desired economic development objectives. SWOT Analysis Outcomes • Strengths o The Mayo Clinic knowledge base draws collaborators from clinical research institutions and private sector internationally. o The regional strength in life sciences, with significant concentration of healthcare companies. o The long-term state investment in Rochester through DMC for infrastructure. • Weaknesses o Rochester not adjacent to denser population centers seen as necessary for workforce development. o Lack of critical mass of four-year degree programs for a talent pipeline. • Opportunities o Development of affordable, flexible, lab space to support early-stage life science companies. o Deepen commitments to entrepreneurship and innovation by incentivizing, facilitating, and educating inventors. o Address the challenge of creating a qualified workforce for startups with more four-year degree options. • Threats o The lack of talent/workforce in the community, in particular research scientists, programmers, and engineers, as well as the lack of C-suite experience. o The dearth of practical lab space options and a lack of savvy/sophistication in the laboratory real estate market (including design, engineering, development/construction) Facility Logix recommendations • Offer affordable, ready-to-go wet and dry lab space in Discovery Square. o Almost every interviewee focused on the need for affordable, ready to go lab space with short- term/flexible lease option, next to Mayo. • Incentivize innovation & entrepreneurship at Mayo Clinic and build ecosystem awareness. o Translate Mayo Clinic’s healthy volume of invention into a thriving innovation ecosystem. • Simplify Mayo access/navigation for collaborators. 91 o Provide way-finding support for early-stage companies to access Mayo Clinic opportunities. • Increase the local talent base by adding local four-year degrees and young talent recruitment programs. o Focus on life sciences, engineering, and digital skills that complement existing programs. Next Steps • Establish relationship with Lab operator • Confirm roles and responsibilities for partner organizations • Design and construct space • Pre-launch marketing • Business Recruitment • Launch operations Operator DMC Mayo Clinic Mortenson Pre-Launch Space design Capital for construction Space construction Fund-raising Business programming Business recruitment Launch and Ongoing Operations Daily operations and property mgt Business support services Business recruitment Events and programming Fund-raising Investment capital 92 District Energy To: DMCC Board of Directors From: DMC EDA Date: May 19, 2023 Request of the board of directors: Discussion and/or direction to staff regarding DMC district energy system investment to advance DMCC goals for carbon emissions reductions. Project Updates: 1.The City of Rochester is preparing to install heating and cooling equipment in their downtown facilities to replace an aging steam system. The City is considering leveraging the Inflation Reduction Act and other incentive programs to install a highly efficient and scalable geothermal heat pump system to heat and cool its facilities. 2.With its downtown location, proximity to infill redevelopment sites and other factors, the City and DMC EDA have been partnering for a period of years to leverage the City investment in its facilities to create an electrified district energy system. 3.A district energy system is a connected set of buildings through hot and chilled water pipes that achieve higher levels of efficiency by moving and sharing heat across a set of facilities. This creates efficiencies because heat can be moved from one facility where it isn’t needed to one that has a heating need for example. 4.To create the District Energy system and install the heating hot water and chilled water pipes, the project will require additional DMC public infrastructure, beyond the $2M already authorized. We believe this may be in the range of ~$5M. Background: In 2015, DMCC adopted the DMC Development Plan, where the principles of sustainability planning are interwoven throughout, through an integrated mix of medium-to-high density uses, integrated live-work environments and green/park space features throughout the downtown. Subsequent action by the DMCC board further reinforces its commitment energy, environmental sustainability and the evaluation and strategic pursuit of district energy systems (DES): •2015: DMC Sustainability Goals Adoption within DMC Development Plan •2015: Sustainable Energy Options Report Accepted by DMCC •2016: District Energy System Resolution Passed by DMCC •2019: EIC Strategic Energy Project Plan Approval by DMCC Recognizing the role that a downtown district energy system could have on realizing its energy consumption and carbon footprint reduction goals, DMCC authorized $2 million in the 2021 and 2022 Capital Improvement Program, building off prior investment in preliminary engineering studies in 2019 and 2020. Since 2007, the City of Rochester has made substantial gains toward meeting its climate goals and is on track to achieve a 50% reduction community-wide by 2030. That said, more focus is needed to achieve a 100% reduction by 2050. Electrification of heating systems for homes and buildings and electrifying car and truck fleets are critical to achieving this next stage of reduction. District Energy helps achieve this goal by connecting buildings to the system that already has an electrified heating and cooling source, allows this to happen at scale, and at the pace of private development. The more who connect, the lower the utility rate and efficiency of the system. The DMC EDA and City staff leading this project believe this will also help attract private developers to our market aligned with the sustainability approach, and goal of realizing additional housing affordability for rent and ownership in the downtown. 93 West Transit Village To: DMCC Board of Directors From: DMC EDA Date: May 19, 2023 Request of the board of directors: Discussion and/or direction to staff regarding future public infrastructure investment to achieve DMCC goals for West Transit Village Background: The DMC 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. To realize this ambitious vision, Mayo Clinic, the City of Rochester, DMC and a private developer need to collaborate. The parties have agreed to a public-private partnership approach but are also mindful of the FTA transportation funding schedule for the transit elements of the site as well. Fulfilling the DMC Vision, Mission, and/or Goals: The DMC goal of mode shift for transportation requires a significant portion of commuting trips downtown to shift away from Single Occupant Vehicle (SOV) trips and towards other modes including Bus Rapid Transit. The West Transit Village is a key element of enabling the BRT to function well and provide an experience befitting the goal of DMC vision of a world class destination. Approvals, milestones, and decision points: Real estate advisory firm NTH was retained by DMC EDA and Mayo Clinic to assist in positioning the Mayo Clinic West Lot on 2nd Street SW for future development as the “West Transit Village” and to take advantage of the BRT line being developed along 2nd Street SW. Through that RFP process Mayo has selected a team of Kraus Anderson, Aeon, and Perkins + Will as the preferred development partner. Currently, Mayo, the development partner, City staff and EDA staff are participating in a series of design charettes to develop an agreed-upon final development site plan and BRT infrastructure plan for the site by June 1. This will allow the WTV site design and infrastructure to be incorporated into the ongoing FTA process. The next steps include: - Continued refinement of the potential site plan configurations under discussion - Mayo Clinic and developer to establish base conditions of the site transaction and move towards a codified agreement, targeting fall 2023 for documentation 94 Downtown Rochester Task Force To: DMCC Board of Directors From: DMC EDA Date: May 19, 2023 Request of the board of directors: Discussion and/or direction to staff regarding role of DMC in advancing certain recommendations from the work of the Downtown Rochester Task Force. Background: The pandemic interrupted many aspects of our lives – changing how and where people work, shop, and conduct other activities. In many cases, downtowns will not return to how they were before the pandemic. Downtown Rochester, like almost all cities, has suffered because of these disruptions and long-term changes. While several new businesses have opened and many have pivoted, more can be done to help during recovery. The Downtown Rochester Task Force was established to help accelerate Rochester’s path forward and build a more resilient downtown for the future. The goal of the Task Force is to collectively create a community-based action plan that identifies (1) immediate and short-term recommendations while considering long-term needs, (2) responsible organizations/partners, and (3) timelines. Process: The Task Force intentionally took a collaborative approach to build the action plan. A 90-day outline guides the work and includes three phases: •Phase 1 (February – March): Stakeholder engagement to build consensus on key themes/issues. •Phase 2 (March – April): Determine immediate and short-term action steps and accountability. •Phase 3 (May): Implement immediate and short-term action recommendations. Four public working sessions, included in Phase 1, were held with the downtown stakeholder community to gather feedback. An external facilitator managed the community sessions. All information gathered during these sessions was reviewed and organized into four larger themes. The themes were shared with the community as a checkpoint and an opportunity to provide additional feedback. After community members review the themes, they are asked to complete a short survey. The Task Force used these themes in the second phase to begin to identify immediate and short-term recommendations from the community’s phase one input. Three public working sessions were held to gain additional input from the community. What We Learned: Our stakeholders believe in a downtown that is vibrant, active, safe, and welcoming. Where there are always things to do and see, it is a place to visit, heal, work, live, learn, and play. It is the heartbeat of our city. Downtown should offer a variety of experiences for a variety of users. 95 Four Themes with Sub-themes: Downtown Promotion, Activation, and Programming: -Strengthen promotion, marketing, and communications -Activate downtown in a variety of ways Access to Downtown: -Develop new public parking strategies -Improve wayfinding -Address safety concerns -Mitigate the impact of construction Barriers to doing Business Downtown: -Simplify policies and processes – improve and streamline -Decrease costs of conducting business downtown Downtown Growth: -Recruitment of new businesses -Retention of small businesses -Understand new market demands Next steps: The Task Force recently wrapped up phase two of community engagement sessions to gather input and feedback related to the recommended action items. The development of the action plan, prioritizing immediate and short-term recommendations and taking into consideration long-term needs, is a result of community working sessions held earlier this year. 96 2024 DMC EDA Workplan and Budget Development To: DMCC Board of Directors From: DMC EDA Date: May 19, 2023 Request of the board of directors: Consider proposed CIP priorities and assign 2-3 board members to advise staff in the development of the 2024 DMC Workplan and Budget. Background, Process, and Timeline: Each year, the DMC Corporation must submit a funding request to the City of Rochester. The funding request includes a proposed: •Capital Improvement Program (with five-year projections) •DMCC operating budget •EDA workplan and operating budget •Operating budget for the City of Rochester’s DMC Project Management team •Requests for the extension of the DMCC and EDA working capital loans The funding request is developed within a set of parameters defined in the update to the DMC Development plan (completed in 2020), describing DMC investment priorities and likely available funding for the 5 year period of 2020-2024: During Q2, DMC EDA and City staff will work with DMC EDA and DMCC board members to prepare a funding request for consideration by the DMC EDA board (September 2023), DMC Corp. board (September 2023), and Rochester City Council (October 2023). DMCC-Approved Guiding Principles: •Enable Opportunity: New jobs, new investment, and tax base growth are critical to a vibrant city. •Be Extraordinary: Make investments befitting a global destination medical center, the state’s largest-ever economic development partnership, and an increasingly diverse community. Framework (2020-2024) Actual (2020-2024) Public Realm $35-$50M $40.2M Mobility $60-$75M $59.8M Strategic Redevelopment $20-$45M $23.3M Streets and Sewers $35-50M $44.9M Operations $15-$20M $19.2M TOTAL $200M +/-$187.4M 97 29 • Incorporate Innovation: Encourage projects to focus on cutting edge business sectors, innovative collaborative processes, novel business models, new materials, new technologies, etc. • Be Sustainable: Always consider the financial, environmental, social, and other long-term effects of proposed capital projects. • Fulfill The Vision: Sustain Rochester and Mayo Clinic as a destination medical center and “economic engine” that benefits the residents of Rochester, Olmsted County, and Minnesota. Current and Emerging Initiatives for Discussion: • Discovery Square innovation district -Marketing/Business Development -Discovery Labs -3 Discovery Square • Downtown Vitalization -Downtown Rochester Task Force -Mainstreet Grant Program -Historic Preservation District -Commercial Space Reuse • Public Realm and Infrastructure -Downtown Riverfront -West Transit Village • Sustainability Initiatives -District Energy • Opportunities associated with Mayo Clinic growth Next Steps: • May-August 2023: Staff and board members prepare the 2024 DMC Workplan and Budget • September 28, 2023 DMCC Board approval • October 2023: Rochester City Council approval 98 Disadvantaged Business Enterprise Barriers Study Summary To: DMCC Board of Directors From: DMC EDA Date: May 19, 2023 Request of the board of directors: No ac�on requested. Project Goal: To understand the current ecosystem, challenges, and the barriers of key stakeholders, so that DMC and the City of Rochester can increase par�cipa�on of Small, Minority/BIPOC, Women and Disadvantaged businesses in its projects. Scope of Work: •Iden�fy the unique barriers of construc�on-related small, disadvantaged businesses from start- up through growth stages to bid on City of Rochester/Des�na�on Medical Center (DMC) public infrastructure projects. •Inves�gate the City of Rochester's bidding, bonding, and insurance policies along with any other barriers iden�fied by MaKee Company •Review best prac�ces from across Minnesota or United States that could be used to address the iden�fied obstacles. •Provide recommenda�ons to help the City and DMC EDA to plan next steps for reducing exis�ng barriers for locally owned DBEs/TGBs. Project Methodology: 1.DBE Assessment 2.Listening Sessions 3.Interviews 4.Research & Analyze 5.Review & Compare Disadvantaged Business Enterprise (DBE) Barriers: •Procurement Training •Centralized Portal for Businesses, Public & Private Sectors •Industry Specific Training •Difficulty Naviga�ng the System •Prequalifica�on Requirement & Union Affilia�ons with Primes DMC/City of Rochester Barriers 1.Centralized Pla�orm 2.Industry Training 3.Centralized Procurement 4.Data Capture 5.Bonding & Insurance 6.Contract Language 99 GENERAL CONTRACTOR BARRIERS 1.Prequalifica�ons 2.Shortage Of DBEs 3.Construc�on Specific Training 4.Central Database Capacity Builders Barriers 1.Resources Not Used 2.Finding Firms 3.Industry Training 4.Diversity Representa�on Recommenda�ons: 1.Data Gathering & Parsing: The City could develop a program or mechanism to collect data on contrac�ng and par�cipa�on as a means to measure contract/project values, awarded and rejected recipient demographics, and how such line items connect to overall spend dollars of the City, etc. 2.Equity Procurement Team: The City should consider crea�ng a department that focuses en�rely on growing its Diversity, Equity, Inclusion and Belonging (DEIB) procurement, contrac�ng, workforce, and compliance. 3.Small Business Portal: The City could develop an online portal exclusively focused on small businesses. The system will be unique because it should have a capacity ve�ng mechanism for DBEs and small businesses. The portal could promote local Rochester business, designa�ng that business with an emblem or insignia with “Buy Rochester First”. Lastly, the portal should not just be a directory, but a way to showcase the DBEs by their capability and capacity. 4.Modify City Website: The City could enhance its website by adding a procurement Services page inclusive of all departments and the Small Business Online Portal. 5.Inten�onal Contrac�ng Pathways: The City could design specific contrac�ng mechanisms using the MN Statute guidelines. Crea�on of these sheltered market programs could help DMC/City in crea�ng a pathway to help build capability and capaci�es of DBE firms. 6.Increase Knowledge & City Exper�se: The City could put a training program in place to assist department heads, project managers, and buyers understand procurement and contrac�ng of small businesses. Meanwhile, support training for prime contractors to find, support and contract with small, locally-owned DBEs. Finally, develop business trainings with small DBE construc�on firms to provide training on business management ac�vi�es, pu�ng together compe��ve bids, and con�nuing to build inten�onal communica�ons. Next Steps: In the remainder of 2023 and in prepara�on of our workplan for 2024, DMC EDA staff will coordinate with the City on elements that the DMC EDA can support to act on these recommenda�ons and findings from the DBE analysis. Examples include suppor�ng the development of a small business portal to access real-�me informa�on on projects, opportuni�es, and business training opportuni�es for local DBE construc�on firms and assis�ng in the training ac�vi�es for local prime and small construc�on-related DBEs. 100 Riverfront To: DMCC Board of Directors From: DMC EDA Date: May 19, 2023 Request of the board of directors: No action requested. Background: In July 2021, the City of Rochester, in partnership with the DMC EDA, issued a request for proposals to create a Small Area Plan for the redevelopment of two sites along a portion of the Zumbro River downtown riverfront. Gamble Associates, an architecture, urban design, and planning firm, was selected to create the small area plan. On July 18, 2022 the Rochester City Council unanimously approved adoption of the Riverfront Small Area Plan into the City’s Planning 2 Succeed (P2S) Comprehensive plan. The redevelopment site is located in the Waterfront Sub-District of the DMC Development District described in the DMC Development Plan. Currently, the use of these riverfront sites is primarily public parking, including surface lots and a four-story parking garage. In contrast, the City-approved plan includes approximately two-and-a-half acres of public space and sites for 500,000-700,000 square feet of potential in-fill development. The plan identified a series of next steps: 1. Conduct Interim Activation in partnership with the Rochester Downtown Alliance 2. Advance flood wall work with the Army Corps of Engineers 3. Complete due diligence analysis of Red Owl/Time Theater building 4. Site acquisition from Olmsted County (Mr. Muffler site) 5. Site preparation 6. RFQ/RFP preparation On September 22, 2022, DMC EDA and City of Rochester staff presented the proposed 2023 DMC Funding Request to the DMC Corporation at its regular public meeting. The presentation included two elements related to the riverfront development: 1) An overview of the Riverfront small area plan, including an outline of next steps 2) 2023 Capital Improvement Program (“DMC CIP”) allocation for riverfront planning and design (up to $1,000,000) The funding request, including the budgets noted above, was approved by the DMC Corp. Board. Illustration of Riverfront area: 101 Fulfilling the DMC Vision, Mission, and/or Goals: DMC EDA Staff are working in collaboration with the City staff and the consultant team, led by Gamble Associates, with a continued focus on the community-driven vision for the Riverfront. Current Status: The approved plan identified a series of next steps that were listed above, below is the current status of each: 1. Conduct Interim Activation in partnership with the Rochester Downtown Alliance: concept planning underway 2. Advance flood wall work with the Army Corps of Engineers: series of engineering meetings has commenced 3. Complete due diligence analysis of Red Owl/Time Theater building: conditions assessment underway 4. Site acquisition from Olmsted County (Mr. Muffler site): City completed the site acquisition 5. Site preparation: analysis underway 6. RFQ/RFP preparation: stakeholder meetings and visioning has commenced Next Steps: The completion of all of the above in 2024. 102 Heart of the City To: DMCC Board of Directors From: DMC EDA Date: May 19, 2023 Request of the board of directors: No Action Requested Updates: Heart of the City Phase 1 The first phase of Destination Medical Center’s Heart of the City public realm project was a renovation of the east side of Peace Plaza and surrounding areas. Project Update Activation: Rochester Downtown Alliance (RDA) has kicked off its summer programming and activation downtown including the Peace Plaza. Music, a mobile art cart, enhanced seating, a mobile game cart, and exercise classes are already activating the plaza. DMC has partnered with the RDA again this year to support the Start-up Event Grant which encourages local community groups to create events downtown. Post-occupancy Analysis - Gehl, an urban design and research consultancy, led onsite post-occupancy analysis, in September 2022 - Final report completed, November 2022 - Additional data gathering will occur this summer, focusing on daytime, weeknight, and weekend hours - Update to be provided at 2023 Q3 DMCC board meeting Items to be completed: - Catenary lighting system pole refabrication Chateau Theatre Update The Chateau Theatre continues to be an anchor in the Heart of the City Sub-district and downtown Rochester. The theatre has hosted plays, meetings, art exhibits, concerts, family programming, and many partners across the community. Multiple improvement projects were recently completed for the Chateau this year including adding a new ADA restroom and improved sound and lighting. Future improvements include updating non-ADA bathrooms and improvements to the HVAC system. HVAC system in design and will be out for bid in the coming weeks. Fulfilling the DMC Vision, Mission, and/or Goals: Heart of the City subdistrict is a long-standing priority for the DMC Corp. board. It is home to many hotels, restaurants, entertainment venues, and medical facilities, many of which have been undergoing reinvestment. Transformation of the public realm, Peace Plaza, will be an asset to the downtown core, improve the patient, visitor and resident experience, and help spur future investment. Work plan or capital improvement budget implications: This project is funded via state GSIA funds generated through the DMC initiative, approved by both DMCC and Rochester City Council. 103 Approvals, milestones, and decision points: 2016 Heart of City redesign commenced 2018 Schematic design approved, CIP authorized 2019 Construction documents completed and bidding initiated 2020 Contracts awarded. Request for additional spending. 2023 Completion 104 Main Street Economic Revitalization Program Grant To: DMCC Board of Directors From: DMC EDA Date: May 19, 2023 Request of the board of directors: No action requested. Background • DMC awarded $3M by DEED for capital improvement projects in the DMC district. • Began taking applications in March 2022, made final awards in April 2023 Final Round 1 Status • 54 awards, median project award = $23K • 13 BIPOC awardees (24%) • 16 non-BIPOC women-led awardees (30%) • Project types: o Retail and Dining: 31 o Office, technical and mixed use: 13 o Non-profit: 5 o Housing and lodging: 5 • 22 project sites were unoccupied (41%) • Approx 270 permanent jobs created Round 1 Lessons Learned o The extent to which small businesses embrace significant financial risk is inspiring. o Clear, concise and timely communication is critical. o Patience is necessary - most are scrambling to assemble their capital stack. o Building trust with minority communities is critical, and difficult. o Assembling the 70% match is particularly challenging for BIPOC applicants. Round 1 Range of Awards 18 12 8 6 8 2 0 5 10 15 20 105 106 McKnight Grant Update To: DMCC Board of Directors From: DMC EDA Date: May 19, 2023 Request of the board of directors: No action requested. Project Update: • The DMC EDA was invited to apply for another round of Climate and Energy funding for 2023- 2025. Last week, the DMC EDA staff learned that McKnight has awarded $225,000 over two years for sustainability efforts at the DMC and City of Rochester. Background: • The McKnight Foundation has supported the DMC EDA’s sustainability activities since 2017 in the sum of $150,000 over two-year periods. • In 2019, the Foundation, increased their commitment to the EDA’s sustainability programs by supporting its efforts for another two years, through 2021 in the sum of $185,000 over two years. • Toward the end of 2020 and early 2021, the City of Rochester and DMC EDA finalized another application for McKnight funding through their Climate & Energy Program, and through their Vibrant and Equitable Communities Program. o The Climate & Energy Program invited the DMC EDA to apply again for a $185,000 grant over a two-year period. The DMC EDA prepared an application in collaboration with the City of Rochester. This funding will help support the following initiatives: • Electric Vehicle Infrastructure Community Plan • Active Commuter Resource Center: Community Co-Design • Sustainability and Resiliency Downtown Demonstration Development • Sustainability and Resiliency Action Plan Implementation • Staff Support o In collaboration with the City of Rochester, Diversity Council, the DMC EDA prepared an application for the Vibrant and Equitable Communities Program in the sum of $154,000 over a 12-18 month period. This funding will help support the hire of an Equitable Development Coordinator within the DMC EDA to work on the following initiatives: • Accelerate Economic Mobility: Within this objective, the Coordinator will support local initiatives that foster economic equity and inclusion and advance ownership opportunities. This work is critically important to promote the myriad of projects and initiatives within the City, foster connections, and as possible develop strategies to form a coordinated approach and strategy to entrepreneurship. • Cultivate a Fair and Just Housing System: Over the past year, an extensive housing analysis has shown there is a considerable need for affordable housing within the DMC District and throughout the region at varied rental and price points. The DMCC and the City of Rochester have identified affordable housing as a strategic objective. With the results of the recent market demand studies in hand, the Coordinator will 107 research housing development models that foster ownership opportunities for BIPOC communities and identify partners to deliver on the vision. • Strengthen Democratic Participation: Based on the success of piloted equitable community engagement approaches coined community co-design, the Coordinator will work to operationalize this process into DMC infrastructure projects in 2021 and beyond. Fulfilling the DMC Mission, Vision, and/or Goals: Energy and sustainability is a key piece of the DMC principles, development plan and goals for the project. The DMC EDA team is working to implement a range of projects, programs, and initiatives to realize the ambitious goals included in the DMC Development Plan across a range of impacts including community health, workplace health, energy, greenhouse gases, water consumption, waste, and transportation. Work plan or capital improvement budget implications: The current DMC work plan describes a variety of initiatives supported by the McKnight Foundation, DMC 2022 operating and CIP funds. The McKnight funds would help to support the work plan objectives outlined above. Approvals, milestones, and decision points: The DMC EDA team is currently working to apply for additional funds from 2023-25 to support our sustainability and equitable development programs. This new funding cycle would start in March 2023. 108 Mobility To: DMCC Board of Directors From: DMC EDA Date: May 19, 2023 Request of the board of directors: No action requested. Background: A multi-modal mobility strategy for the DMC has been developed that includes the implementation of a Rapid Transit Circulator, which is the current focus of DMC’s mobility infrastructure investments. Recent LINK BRT Milestones: - Design advancing to 90% completion by Fall 2023 - Procurement process training completed Upcoming BRT Milestones: - Complete key state and Federal environmental reviews and risk assessments (mid-2023) - Finalize vehicle design and place order (4Q 2023) Vehicle Design Considerations: Goals: • High amenity to provide a unique experience. • Futuristic and innovative visual features. • Experience equal to or better than driving. Areas of Influence: Exterior: • Link Brand will be used. • Shape of bus o Contemporary • Glass o Significant greenhouse (glass) • 2 sets of double doors (similar to light rail operations) Interior: • Seating o Capacity and configuration to be determined, inclusive to seating and standing space. o Materials, TBD • Flipped shelves for holding carry-on items, medical equipment, personal bags • Distributed heating and air conditioning • Bike rack inside bus • Biofilters and air flow distribution Technology: • Wi-Fi provided 109 • In seat charging • Route information and announcement display Safety: • Automated wheelchair securement • Driver barrier • Ride comfort and stability Fulfilling the DMC Vision, Mission, and/or Goals: DMC EDA Staff are working in collaboration with the City staff and the consultant team, SRF, with a continued focus on the goal of creating a world-class experience that centers equity of access and foregrounds BRT as a desirable consumer choice. Current Status: See above milestones. Next Steps: See above milestones. 110 Private Development To: DMCC Board of Directors From: DMC EDA Date: May 19, 2023 Request of the board of directors: No action requested. Background: While all private development projects submitted to DMC must meet the “but for” test, DMC EDA staff evaluates each submitted project against the priorities set by the Board before developing a recommendation for the Board. Below is a summary of Board priorities as staff understand them: •Geographic priorities: Heart of the City, Discovery Square, TOD corridor •Product Type: Preferencing med-tech and workforce housing development •Prioritize projects most likely to achieve DMC goals: private investment, job creation, tax base growth •Validate market demand; support first-in-market opportunities •Meet or exceed Sustainability targets •Contribution to City of Health experience goals Areas of focus adopted as part of the Phase 2 development update (Nov. 2020 adoption): •Economic diversification •Housing affordability •Main Street innovation •Local entrepreneurs •Local minority- and women-owned business capacity Below is a summary of the active conversations underway with private developers within the DMC District. Inclusion on this list does not mean that these projects will ultimately apply for DMC funding, but rather is included to give you an overview of what kinds of projects are currently being contemplated within the district that may come forward in the future for a funding request. HOUSING Civic Center North Lot In fall 2021, The City of Rochester issued a RFP to developers for the parking lot across from the Civic Center. The City elected to enter exclusive negotiations with Sherman Associates as the preferred development partner, and are in the midst of those negotiations. Potential alignment with the District Energy system under development in downtown is also being explored with this project. Staff is participating in the review process and may potentially support use of funds for this project. West Transit Village (WTV) The western terminus of the LINK Rapid Transit line is envisioned as a transit village that will accommodate several hundred units of housing and amenity retail in addition to the transit and parking infrastructure needed on the site. Mayo Clinic is in active negotiations with their selected developer partner and has refined the project vision to two options that 111 include +/- 300 units of housing, retail, parking and public realm. CityWalk Apartments This is an approximately 140-unit market rate apartment building on the south side of 2nd Avenue and 6th Street. They have received Main Street grant funding. YMCA Development Redevelopment of the downtown YMCA site into approximately 215 units of multifamily housing including some ground floor live-work spaces. Thoughtful integration of the project into the adjacent Soldier’s Field and the approach to affordability levels are main topics of discussion. HOSPITALITY Olmsted Bank Building 14 units of residential on top of an adaptive reuse of the existing bank building for a restaurant/cafe use on the ground floor. Opportunity to show potential of adaptive reuse above an existing building and revitalization of a central location that can leverage existing parking infrastructure. The project was awarded $300,000 in Main Street Grant funds and is in conversations regarding a second application. Post Office The Post Office building on Broadway is owned by a Utah-based hospitality developer with local ties. Owners of the building are proposing a 140-key boutique hotel for longer- term travelers. The developer is interested in sustainability and considering a flag that aligns with this environmental approach. This project has submitted a TIF application to the City of Rochester and has an active application into the Main Street grant program. Post Bulletin Site A hospitality-centered team last shared a concept with a hotel, a high rise senior residential tower and workforce housing. OFFICE/LAB Three Discovery Square An application has been submitted for Mortenson’s DS3 project that proposes a 7-story speculative building that is half lab space half CGMP space (clean manufacturing). DMC EDA staff is in early review of the submitted materials along with City staff. Mortenson has commissioned HR&A to do a complete economic impact analysis of DS1, DS2 and DS3 that is being refined, as well as signed its first lease in Discovery Square 2 with NRI and Mayo. Mortenson is seeking to hit 50% leased in 2DS before moving forward with 3 DS. Fulfilling the DMC Vision, Mission, and/or Goals: 112 DMC aims to support private investment that is in line with the overall mission of the DMC Initiative. The 20-year goal is to attract more than $2.1B of non-Mayo private investment. Approvals, milestones, and decision points: As projects further develop their plans we will continue to update the Board and if an application for funding is submitted the formal review process will begin. Currently Discovery Square 3 is an active application under review. 113 114 Equitable Economic Development To: DMCC Board of Directors From: DMC EDA Date: May 19, 2023 Request of the board of directors: No action requested. Workplan Update: Based on the direction of the DMCC Board, the DMC EDA has endeavored to pursue DMC economic development goals in an equitable and inclusive manner. Below, the EDA has described recent efforts to advance equitable economic development strategies. 1. Community Co-Design Updates: a. Community and Individual Capacity Building: On May 4th, we celebrated the graduation of the first cohort of community co-design facilitators. The graduates completed a 25-hour training that started in January 2023 and ended in April 2023. The training provided the 7 community members with the tools and the resources to be able to facilitate co-design projects in Rochester. Our graduates are: Julie Ruzek Executive Director Cradle 2 Career Claudia Tabini Community Partnerships Director Cradle 2 Career Fatuma Ahmed Co-Founder Pamoja Women Khadija Ali Co-Founder Pamoja Women Shaylene Baumbach Health Promotion Manager Olmsted County Public Health Derrick Fritz Community Health Assessment & Planning Coordinator Olmsted County Public Health Lida Casper Coordinator of Community Partnership Rochester Public Schools b. We completed the 2nd cohort of community co-design leadership training. We trained 44 community leaders from the City of Rochester, Olmsted County, Rochester Public Schools, and other organizations to learn about co-design and how to lead co-design efforts within their organizations. We will offer our 3rd training cohort in October 2023. c. We launched the community co-design bi-monthly meetings to inform the community about co- design efforts, projects, reports, and all the resources to ensure the success of community co-design. All the information related to community co-design can be found in the Rochester co-design page on the DMC website. 2. Equity Alliance Updates: a. Equity Connect: DMC, City of Rochester, and Olmsted County will be hosting the Equity Connect group in Rochester for a day of learning about how diversity, equity, and inclusion efforts are advanced in Rochester through collaboration and partnership. The Equity Connect group includes DEI 115 practitioners and leaders in municipalities in Edina, Richfield, Bloomington, New Brighton, St. Louis Park, Roseville, Ramsey County, and St. Paul. b.Equity Series: Both recent and historical events reveal the need for continued work on issues of diversity, equity, and inclusion in Rochester MN. The City of Rochester and Destination Medical Center formed the Equity Alliance to accelerate equitable change and impact disparities through reparations, restoration, and reformation based on radical collaboration. This summer, the equity alliance will launch the Equity Series. This series will be an opportunity to introduce diversity, equity, and inclusion best practices, build sustainable DEI community strategies, and build advocacy and allyship within the Rochester community. 3.Affordable Housing Updates: a.Emerging & BIPOC Developer Assistance Program: we continue to meet with organizations in the region to learn and understand their progress in developing assistance programs for their emerging and BIPOC developers. Since the last DMCC Board meeting, we started discussions with the City of Rochester and the Coalition for Rochester Area Housing on creating BIPOC/Emerging Developer assistance program and pre-development assistance fund. b.Emerging & BIPOC Developer Expo: DMC and the Coalition for Rochester Area Housing attended the Emerging & BIPOC Developer Expo hosted by the Greater Minnesota Housing Fund in St. Paul in April 2023. DMC and GMHF will partner to host a similar expo in Rochester this fall to create an opportunity for BIPOC & emerging developers to network and build relationships with community organizations to advance equitable development efforts. c.BIPOC Home Ownership Co-design Project: The Coalition for Rochester Area Housing, City of Rochester, and DMC concluded the BIPOC Home Ownership Co-design project. The co-design process was created to identify the barriers, evaluate opportunities, and identify funding recommendations to eliminate the barriers for new home ownership. A summary of the report is attached to the DMCC board packet. d.Disadvantaged Business Enterprise Barriers Study: This study was completed to understand the current eco-system, challenges, and the barriers of key stakeholders, so that DMC and the City of Rochester can increase participation of Small, Minority/BIPOC, Women and Disadvantaged businesses in its projects. A summary of the study is attached to the DMCC board packet. 116 BIPOC Home Ownership Community Co-design Project Summary To: DMCC Board of Directors From: DMC EDA Date: May 19, 2023 Request of the board of directors: No ac�on requested. Project Objec�ves: Olmsted County has one of the Na�on’s largest home ownership dispari�es with 77% White households compared to 22% for Black/African American households. The goal of the project is to partner with the BIPOC community directly impacted by the inequitable housing systems to: • Iden�fy barriers to home ownership. • Evaluate opportuni�es to improve BIPOC community outcomes • Iden�fy funding, policy, and process recommenda�ons to eliminate barriers for home ownership for BIPOC community members Project Process: A co-design process follows an itera�ve approach consis�ng of design studios, sprints, and individual co- designer conversa�ons throughout. Ten community co-designers from local communi�es with diverse racial, cultural, and religious backgrounds par�cipated in the project. Themes Iden�fied: • Educa�on • Naviga�on • Belonging • Safety & Security • Structural Racial Barriers • Mentorship • Representa�on Cri�cal Stakeholders Iden�fied: • Financial/Lending Ins�tu�ons • Realtors • Community Housing Support Stakeholders • Developers/Builders • BIPOC Community Co-designer Recommenda�ons: • Educa�on before, during, and a�er home ownership process. • Diversity, Equity, and Inclusion (DEI) assessments and implementa�on of recommenda�ons. • Stakeholder workforce diversifica�on. • Crea�on of home ownership mentor network. • Inten�onal rela�onship development with diverse BIPOC communi�es. 117 • Organiza�onal communica�on improvement through transla�on and technology. • Evalua�on of policies and products through an equity lens. In the upcoming months and development of our 2024 workplan, we will work with our partners at the Housing Coali�on and Funders Leadership Collabora�ve to stand up programs and mentorship programs to act on the recommenda�ons of the co-designers. Future workplan requests will incorporate objec�ves and the funding needed to curb these local inequi�es in collabora�on with our housing partners. 118 Soldiers Field Memorial Park To: DMCC Board From: DMC EDA Staff Date: May 19, 2023 Request of the Board of Directors: No Action Requested Background: Soldiers Field Memorial Park is 150 acres in size with 4,000 feet of riverfront. It is currently comprised of memorials, active recreation space, an 18-hole golf course, aquatic amenities, a track and field facility (with winter skating), tennis courts, a baseball field, playgrounds, hockey rinks in winter, and trails. In 2022, the City of Rochester updated the Soldiers Field Memorial Park master plan, with plans to improve the aquatics features, add sport courts, and enhance the trails, playgrounds, and shelters. The update split the proposed park improvements into short- and long-term park plans. It is anticipated construction to begin in spring 2023. Project Update: •January 17, 2023 – Park Board acknowledges the Alternative Plan as the preferred plan •January 23, 2023 – City Council acknowledges the Alternative Plan as the preferred plan •February 09, 2023 – DMCC approval of use of Capital Improvement Project budget •April 17, 2023 – Rochester City Council approval to go to bid DMC EDA and DMCC Actions: •February 2023, DMCC Approval of Capital Improvement Budget, 10M Work plan or capital improvement budget implications: Included in the 2023 Capital Improvement Budget, 10M Approvals, milestones, and decision points: 2014 City Council apprvoedpast Soldiers Field Master Plan 2022 Request by City Council to update Master Plan Oct 2022 Park Board approval of short-term Soldiers Field Master Plan TBD City Council Approval of Master Plan 2023 Anticipated construction to begin Spring 2023 (2024 completion) 119