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9/28/2023 DMCC Board of Directors Meeting - Agenda and Meeting Notice
Destination Medical Center Corporation Board of Directors Meeting Thursday, September 28, 2023 9:30 A.M. 1 DESTINATION MEDICAL CENTER CORPORATION (DMCC) SPECIAL BOARD MEETING Thursday, September 28, 2023, 9:30 A.M. Two Discovery Square, 415 2nd Ave. SW, Rochester, MN To View the Meeting Remotely: https://www.youtube.com/@DestinationMedicalCenter AGENDA PAGE I. Call to Order II. Roll Call III. Approval of Agenda 1 IV. Approval of Minutes: May 25, 2023 3 V. Public Comment 1 VI. Chair’s Report VII. Consent Agenda A. DMCC Insurance: League of Minnesota Cities 7 Insurance Trust (LMCIT) Waiver: Motion: Elect not to waive statutory tort limits B. Request for Proposals: Professional Audit Services 2023-2025 9 Motion: Confirm and ratify RFP C. 2024-2025 Regular Meeting Schedule 33 Resolution A: Approving the 2024-2025 Regular Meeting Schedule D. DMCC 2023 Budget: Year to Date Update 39 VIII. DMCC Form 990; Minnesota Annual Charitable Organization Report 43 (Presenter: Craig Popenhagen, CliftonLarsonAllen) Resolution B: Approving the 2023 State of Minnesota 97 Charitable Organization Report and 2022 Form 990 IX. Metrics 1 For public comments, please indicate that you wish to speak either in-person at the meeting, through the chat feature on the web link, or by emailing info@dmc.mn by 9:00 AM on September 28th. Written comments may also be submitted to info@dmc.mn. 2 X. EDA Board President Comments XI.2024 DMC Work Plan and Budget A.Capital Improvement Plan 99 B.2024 EDA & City Staff Workplan and Budget 131 C.2024 DMCC Budget 141 D.Working Capital Loan 143 Resolution C: Approving the 2024 DMCC Funding Request and 163 the Extension of Working Capital Loan and Authorizing Transmittal to the City 165 167 168 169 170 171 173 175 176 177 178 180 181 XII.Status Reports A.Business Development and Lead Generation B.Communications Strategy C.DEED Main Street Economic Revitalization Program D.Discovery Square E.District Energy F.Downtown Riverfront G.Equitable Economic Development H.Heart of the City I.Housing J.Mobility K.Rochester Downtown Task Force L.Soldiers Field Memorial Park M.West Transit Village XIII.Meeting Schedule A.Next Regular Meeting: November 17, 2023, at 9:30 A.M. XIV.Adjournment DESTINATION MEDICAL CENTER CORPORATION (DMCC) BOARD MEETING Thursday, May 25, 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, and Chair Pamela Wheelock were present. III.Approval of Agenda. Mayor Norton moved to approve the agenda, revised to remove Resolution C from the consent agenda. Council President Carlson seconded the motion. Ayes (7), Nays (0). Motion approved. IV.Approval of Minutes: February 9, 2023. Mr. Baker moved to approve the February 9, 2023 minutes. Commissioner Thein seconded the motion. Ayes (7), Nays (0). Motion approved. V.Public Comment. Al Lun, Rocester resident, described the value of metrics and requested updates to website dashboards. Erin Sexton, Director of Enterprise Community Engagement at Mayo Clinic, discussed the 2023 legislative session, affirmed Mayo Clinic’s support for nurses, and noted on-going discussions for strategic investment in the DMC Development District. D’Angelo Tines, owner/operator of Popus Gourmet Popcorn, discussed the positive impacts of his grant award from the Main Street Economic Revitalization Program. VI.Chair’s Report. Chair Wheelock described several Board agenda items, including the DMCC audit and 2024 budget and work plan priorities discussion. VII.Election of Officers and Appointments. A. Election by Board. DMCC Counsel Brennan opened the floor for officer nominations. Mr. Campbell nominated Pamela Wheelock for Chair, Mayor Norton for Vice Chair, and Commissioner Thein as Treasurer. No other nominations were presented. Ayes (7), Nays (0). Motion approved. B. Appointment by Chair. Chair Wheelock appointed Paul Williams to the office of Board Secretary and Dale Martinson to the office of Assistant Treasurer. She reserved appointment of this office following Mr. Martinson’s expected retirement. VIII.Resolution C: Commending Dale Martinson, Assistant Treasurer. Mayor Norton expressed appreciation for Mr. Martinson’s dedication and hard work. She moved approval of Resolution C. Council President Carlson seconded the motion. Ayes (7), Nays (0). Motion approved. 3 IX.Consent Agenda. A. April 1 Report to DEED. Resolution A: Ratifying and Confirming the April 1, 2023 Certification to DEED Pursuant to Statute. B. Revisions to Bryk on Broadway Apartments Project. Resolution B: Ratifying and Confirming Revisions to the Bryk on Broadway Apartments Project. C. DMCC 2023 Budget Year-to-Date Update. D.2022 Capital Improvement Plan (CIP) True-Up and Update. E. DMCC Data Practices Act Policy. Commissioner Thein moved approval of the consent agenda. Mayor Norton seconded the motion. Ayes (7), Nays (0). Motion approved. X.DMCC Audit for Year Ending December 31, 2022. Craig Popenhagen, CliftonLarsonAllen, presented the audited financial statements. He noted the highest level of assurance; no audit findings, internal controls, or Minnesota legal compliance findings were reported. Mayor Norton moved to accept the financial statements and audit results. Mr. Baker seconded the motion. Ayes (7), Nays (0). Motion approved. XI.EDA Board President Comments. Dr. Clark Otley, DMC EDA President, described the ongoing administration of the Main Street grant program. XII.DMC Metrics. Catherine Malmberg, DMC EDA Director of Public Infrastructure and Development Strategy, presented a private investment update. She explained previous investment by Mayo Clinic and other private investment, current market demand drivers, and existing market challenges. XIII.Discussion Items (City of Rochester, EDA). A. Discovery Square (Marketing/Lead Generation and Shared Lab Infrastructure). Michael Flynn, DMC EDA Senior Director of Economic Development, described current business recruitment priorities, work plan progress to-date, and maturing statewide partnerships. He also highlighted site visits to Rochester. Chris Schad, DMC EDA Director of Business Development, outlined a plan for “Discovery Labs,” shared, low-cost, short-term lab space. B. District Energy (Potential Expansion of Downtown System). Kevin Bright, DMC EDA Director of Housing and Sustainability, provided an update on progress towards 2050 climate goals. He also described project staging and financing progress for the proposed downtown district energy system. C. West Transit Village (Development Concepts). Ms. Malmberg discussed progress toward the development of the West Transit Village, including Mayo Clinic’s convening of a development team and multiple concepts for the overall site plan. 4 D.Rochester Downtown Task Force (Action Plan and Next Steps). Jamie Rothe, DMC EDA Director of Community Engagement and Experience, Ryan Parsons, President of the Rochester Area Chamber of Commerce, and Kathleen Harrington, Interim Executive Director of the Rochester Downtown Alliance, described the Task Force findings and action plan. XIV.2024 DMC Work Plan and Budget: Priorities/Points of Emphasis. Patrick Seeb, DMC EDA Executive Director, described the budget and work plan preparation timeline and priorities. XV.Adjournment. Mr. Baker moved to adjourn. Mayor Norton seconded the motion. Ayes (7), Nays (0). Motion approved. 1748791-3.DOCX 5 6 LIABILITY COVERAGE – WAIVER FORM Members who obtain liability coverage through the League of Minnesota Cities Insurance Trust (LMCIT) must complete and return this form to LMCIT before the member’s effective date of coverage. Return completed form to your underwriter or email to pstech@lmc.org. The decision to waive or not waive the statutory tort limits must be made annually by the member’s governing body, in consultation with its attorney if necessary. Members who obtain liability coverage from LMCIT must decide whether to waive the statutory tort liability limits to the extent of the coverage purchased. The decision has the following effects: •If the member does not waive the statutory tort limits, an individual claimant could recover no more than $500,000 on any claim to which the statutory tort limits apply. The total all claimants could recover for a single occurrence to which the statutory tort limits apply would be limited to $1,500,000. These statutory tort limits would apply regardless of whether the member purchases the optional LMCIT excess liability coverage. •If the member waives the statutory tort limits and does not purchase excess liability coverage, a single claimant could recover up to $2,000,000 for a single occurrence (under the waive option, the tort cap liability limits are only waived to the extent of the member’s liability coverage limits, and the LMCIT per occurrence limit is $2,000,000). The total all claimants could recover for a single occurrence to which the statutory tort limits apply would also be limited to $2,000,000, regardless of the number of claimants. •If the member waives the statutory tort limits and purchases excess liability coverage, a single claimant could potentially recover an amount up to the limit of the coverage purchased. The total all claimants could recover for a single occurrence to which the statutory tort limits apply would also be limited to the amount of coverage purchased, regardless of the number of claimants. Claims to which the statutory municipal tort limits do not apply are not affected by this decision. 7 2 LMCIT Member Name: __________________________________________________________________________ Check one: o The member DOES NOT WAIVE the monetary limits on municipal tort liability established by Minn. Stat. § 466.04. o The member WAIVES the monetary limits on municipal tort liability established by Minn. Stat. § 466.04, to the extent of the limits of the liability coverage obtained from LMCIT. Date of member’s governing body meeting: _____________________________________________ Signature: Position: ________________________________ Destination Medical Center Corporation Chair 4 September 28, 2022 8 DESTINATION MEDICAL CENTER CORPORATION AND DESTINATION MEDICAL CENTER ECONOMIC DEVELOPMENT AGENCY REQUEST FOR PROPOSALS FOR PROFESSIONAL AUDITING SERVICES For Audit Years 2023 through 2025 September 21, 2023 c/o McGrann Shea Carnival Straughn & Lamb, Chartered 800 Nicollet Mall, Suite 2600 Minneapolis, Minnesota 55402 9 i DESTINATION MEDICAL CENTER CORPORATION AND DESTINATION MEDICAL CENTER ECONOMIC DEVELOPMENT AGENCY REQUEST FOR PROPOSALS TABLE OF CONTENTS I.INTRODUCTION ...............................................................................................................1 A.General Summary of Proposal Request ...................................................................1 B.Term of Engagement ................................................................................................2 C.Subcontracting .........................................................................................................2 II.NATURE OF SERVICES REQUIRED ..............................................................................2 A.General .....................................................................................................................2 B.Scope of Work to be Performed ...............................................................................2 C.Auditing Standards to Be Followed .........................................................................3 D.Reports to be Issued .................................................................................................3 E.Presentation to the DMCC and EDA .......................................................................4 F.Additional Accounting Services ..............................................................................4 G.Working Paper Retention and Access to Working Papers .......................................4 III.DESCRIPTION OF THE CORPORATIONS .....................................................................5 A.Name and Telephone Number of Contact Persons/Organizational Chart ...............5 B.Background Information ..........................................................................................5 C.Finance Operations ..................................................................................................6 IV.TIME REQUIREMENTS ....................................................................................................6 A.Proposal Calendar ....................................................................................................6 B.Audit Timelines for 2024, 2025, 2026 (Audit Years 2023, 2024, 2025) .................7 1. Detailed Audit Plan Required ......................................................................7 2. Fieldwork for Audit .....................................................................................7 3.Final Audit Reports ......................................................................................7 4.Approximate 2023 Transaction Volumes ....................................................7 C.Tax Filings. ..............................................................................................................8 V.ASSISTANCE TO BE PROVIDED TO THE AUDITOR AND REPORT PREPARATION ..................................................................................................................8 A.DMCC, EDA and City Finance Department and Clerical Assistance .....................8 B.Work Area, Telephones, Photocopying and FAX Machines ...................................8 C.Report Preparation ...................................................................................................9 VI.PROPOSAL REQUIREMENTS .........................................................................................9 A.General Requirements ..............................................................................................9 1.Inquiries .......................................................................................................9 2.Submission of Proposals ..............................................................................9 10 ii B. Technical Proposal .................................................................................................10 1. General Requirements ................................................................................10 2. Independence .............................................................................................11 3. License to Practice in Minnesota ...............................................................11 4. Firm Qualifications and Experience ..........................................................11 5. Partner, Supervisory and Staff Qualifications and Experience ..................12 6. Prior Engagements with the DMCC or EDA .............................................13 7. Similar Engagements with Government Entities .......................................13 8. Specific Audit Approach............................................................................13 9. Identification of Anticipated Potential Audit Problems .............................14 10. Report Format ............................................................................................14 C. Sealed Dollar Cost Proposal ..................................................................................14 1. Costs for Each Audit ..................................................................................14 2. Rates by Partner, Specialist, Supervisory and Staff Level Times Hours Anticipated for each ........................................................................15 3. Out-of-Pocket Expenses Included in the Total All-inclusive Maximum Price and Reimbursement Rates ...............................................15 4. Rates for Additional Professional Services ................................................15 5. Manner of Payment ....................................................................................15 VII. EVALUATION PROCEDURES.......................................................................................15 A. Review Committee .................................................................................................15 B. Review of Proposals ..............................................................................................15 C. Oral Presentations ..................................................................................................16 D. Final Selection .......................................................................................................16 E. Right to Reject Proposals .......................................................................................16 VIII. APPENDICES ...................................................................................................................16 A. DMCC/EDA Accounts and Flow of Funds ...........................................................16 B. Proposer Guarantees ..............................................................................................16 C. Proposer Warranties ...............................................................................................16 D. Format for Cost Proposal and Schedule of Professional Fees and Expenses ........16 CONTRACT TERMS AND CONDITIONS ................................................................................16 11 1 DESTINATION MEDICAL CENTER CORPORATION AND DESTINATION MEDICAL CENTER ECONOMIC DEVELOPMENT AGENCY REQUEST FOR PROPOSALS I.INTRODUCTION A.General Summary of Proposal Request The Destination Medical Center Corporation (“DMCC”) and the Destination Medical Center Economic Development Agency (“EDA”) are requesting proposals from qualified certified public accounting firms to audit their respective financial statements for the fiscal year ending December 31, 2023, with the option of auditing their respective financial statements for each of the two (2) subsequent fiscal years. This initial three (3) year term may be extended for an additional two (2) years. These audits are to be performed in accordance with generally accepted auditing standards and the standards set forth for financial audits promulgated by the Governmental Accounting Standards Board (“GASB”). The 2022 DMCC Financial Statements and Audit Report are available at https://dmc.mn/wp- content/uploads/2023/09/Signed-Final-Report-and-Financial-Statements- Electronic-copy.pdf. There is no expressed or implied obligation for the DMCC or the EDA to reimburse responding firms for any expenses incurred in preparing proposals in response to this request. To be considered, an electronic copy of a proposal must be received by Kaela Brennan at McGrann Shea Carnival Straughn & Lamb, Chartered, kmb@mcgrannshea.com by 4:00 p.m. on October 12, 2023. The DMCC reserves the right to reject any or all proposals submitted. An audit proposal review committee consisting of representatives of the DMCC and EDA will evaluate proposals submitted. During the evaluation process, the review committee and the DMCC reserve the right, where it may serve the DMCC’s best interest, to request additional information or clarifications from proposers, or to allow corrections of errors or omissions. At the discretion of the DMCC or the review committee, firms submitting proposals may be requested to make oral presentations as part of the evaluation process. The DMCC reserves the right to retain all proposals submitted and to use any ideas in a proposal regardless of whether that proposal is selected. Submission of a proposal indicates acceptance by the firm of the conditions contained in this Request for Proposals, unless clearly and specifically noted in the proposal 12 2 submitted and confirmed in the contract between the DMCC and the firm selected. It is anticipated the selection of a firm will be completed by November 17, 2023. Following the notification of the selected firm it is expected a contract will be executed between both parties on or before December 20, 2023. B. Term of Engagement A three (3) year contract is contemplated, subject to the annual review and recommendation of the review committee, the satisfactory negotiation of terms (including a price acceptable to the DMCC, the EDA and the selected firm), and the annual availability of an appropriation. An additional two (2) year extension may be added to the initial term. C. Subcontracting If any subcontracting is to be done, that fact, and the name of the proposed subcontracting firms, must be clearly identified in the proposal. Following the award of the audit contract, no additional subcontracting will be allowed without the express prior written consent of the DMCC. II. NATURE OF SERVICES REQUIRED A. General The DMCC and the EDA are soliciting the services of qualified certified public accounting firms to audit their respective financial statements for the fiscal year ending December 31, 2023, with the option to audit the DMCC’s financial statements and the EDA’s financial statements for each of the two subsequent fiscal years. These audits are to be performed in accordance with the provisions contained in this Request for Proposals. The RFP fee structure requires completion of individual audit costs for the DMCC and the EDA. The intention of the DMCC and the EDA is for one qualified certified public accounting firm to perform both audits. To be considered, the proposal must include a cost proposal for the DMCC and the EDA, separately, as indicated in Exhibit D. B. Scope of Work to be Performed The DMCC and the EDA desire the auditor to express an opinion on the presentation of their respective financial statements and schedules in conformity with generally accepted accounting principles. The 2022 DMCC Financial Statements and Audit Report are available at https://dmc.mn/wp- content/uploads/2023/09/Signed-Final-Report-and-Financial-Statements- Electronic-copy.pdf. The auditor is not required to audit the supporting schedules in the comprehensive annual financial report. However, the auditor is to provide 13 3 an “in-relation-to” opinion supporting schedules based on the auditing procedures applied during the audit of the basic financial statements and schedules. The auditor is not required to audit the introductory or statistical section of the report. In the event that federal financial assistance occurs, the auditor is not required to audit the schedule of federal financial assistance. However, the auditor is to provide an “in-relation to” report on that schedule based on the auditing procedures applied during the audit of the financial statements. C. Auditing Standards to Be Followed To meet the requirements of this Request for Proposals, the audit shall be performed in accordance with generally accepted auditing standards as set forth by the American Institute of Certified Public Accountants, the standards for financial audits set forth by the Governmental Accounting Standards Board (“GASB”), and the provisions of the U.S. Office of Management and Budget (“OMB”) Circular A-133, Audits of States, Local Governments And Non-Profit Organizations. D. Reports to be Issued Following the completion of the audit of the fiscal year’s financial statements, the auditor shall issue the following reports for each of the DMCC and the EDA individually: 1. A report on the fair presentation of the financial statements in conformity with generally accepted accounting principles. 2. A report on compliance and internal control over financial reporting based on and audit of the financial statements. In the required report[s]on internal controls, the auditor shall communicate any reportable conditions found during the audit. A reportable condition shall be defined as a significant deficiency in the design or operation of the internal control structure, which could adversely affect the organization’s ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. Reportable conditions that are also material weaknesses shall be identified as such in the report. Non-reportable conditions discovered by the auditors shall be reported in a separate letter to management, which shall be referred to in the report on compliance and internal controls. The report on compliance and internal controls shall include all material instances of noncompliance. All material instances of noncompliance shall be reported in a separate management letter, which shall be referred to in the report on compliance and internal controls 14 4 Irregularities and illegal acts: Auditors shall be required to make an immediate, written report of all irregularities and illegal acts or indications of illegal acts of which they become aware to the DMCC Board of Directors and its General Counsel. E. Presentation to the DMCC and EDA A summary of the audit results shall be presented to the DMCC. For the EDA’s individual audit, a summary of the audit results shall be presented to the EDA. In addition to relating general financial condition and significant changes from the prior year, auditors shall assure that both the DMCC and EDA are informed of each of the following: 1. The auditor’s responsibility under generally accepted auditing standards 2. Significant accounting policies 3. Management judgments and accounting estimates 4. Significant audit adjustments 5. Other information in documents containing audited financial statements 6. Disagreements with management 7. Management consultation with other accountants 8. Major issues discussed with management prior to retention 9. Difficulties encountered in performing the audit 10. Discussion of results for the current and at least the previous three years. F. Additional Accounting Services The City of Rochester, Minnesota (the “City”) currently anticipates it may prepare one or more official statements in connection with the sale of debt securities that will contain the general purpose financial statements and the auditor’s report thereon. The auditor shall be required, if requested by the fiscal advisor and/or the underwriter, to issue a “consent and citation of expertise” as the auditor and any necessary “comfort letters.” Throughout any given year, various issues may arise that require the expertise of an accounting firm, including assistance with or preparation of 1) Form 990, or other tax counsel and tax filing assistance; 2) an Annual Charitable Organizations Report as required by the Attorney General of the State of Minnesota; and 3) a procedures audit related to an annual certification of qualified expenditures to the Minnesota Department of Employment and Economic Development (“DEED”). The auditor will also prepare and submit all necessary IRS and Minnesota tax forms for the DMCC and EDA respectively. These inquiries and tasks would be billed at a proposed hourly rate as noted in Appendix D. G. Working Paper Retention and Access to Working Papers All working papers and reports must be retained, at the auditor’s expense, for a minimum of six (6) years, unless the firm is notified in writing by the DMCC or the EDA of the need to extend the retention period. The auditor will be required 15 5 to make working papers available, upon request, to the following parties or their designees: Destination Medical Center Corporation Destination Medical Center Economic Development Agency City of Rochester, Minnesota State of Minnesota Legislative Auditor’s Office State of Minnesota, Office of the State Auditor U.S. General Accounting Office (GAO) In addition, the firm shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance. III. DESCRIPTION OF THE CORPORATIONS A. Name and Telephone Number of Contact Persons/Organizational Chart 1. The auditor’s principal contact with the DMCC will be Kaela Brennan, (612) 338-2525, kmb@mcgrannshea.com, who will coordinate the assistance to be provided by the DMCC to the auditor. 2. For the EDA’s individual audit, the auditor’s principal contact with the EDA will be Patrick Seeb, Executive Director, (507) 216-9720, patrickseeb@dmceda.org, who will coordinate the assistance to be provided by the EDA to the auditor. B. Background Information In 2013, the Minnesota Legislature enacted Minnesota Statutes, Sections 469.40 - .47 (the “Act,”), an initiative to secure Minnesota's status as a global destination medical center highlighting the Mayo Clinic (the “DMC Initiative”). The Act directed the City of Rochester, Minnesota (the “City”) to establish the DMCC as a Minnesota non-profit corporation. Under the Act, the State of Minnesota authorized up to Five Hundred Eighty-Five Million Dollars ($585,000,000) of public funding and incentives for public infrastructure projects to support private investment by the Mayo Clinic and other private developers in the City. At least $200,000,000 in qualified private expenditures must be certified before the state infrastructure aid may be disbursed. The City must make a local matching contribution of $128,000,000 of the costs of public infrastructure projects. The DMCC serves as the governing body charged with overseeing the planning and implementation of the DMC Initiative. The DMC Initiative creates a process to consider and approve private and public projects within the development district to establish a premier destination medical center for the benefit of the City, and more broadly, Olmsted County, and the State of Minnesota. The 16 6 DMCC must prepare and adopt a master development plan to govern the DMC Initiative and must approve public and private projects. The City duly created the DMCC as a Minnesota non-profit corporation in July, 2013. The DMCC is closely related to the City, Olmsted County, and the State of Minnesota, in that each of these government entities appointed individuals to the DMCC Board of Directors; each government entity is expected to provide funding to support the DMC Initiative; the DMCC must work with the City in preparing and adopting the Development Plan, which the City must also approve; and the City must provide financial and administrative support to the DMCC. The City serves as the fiscal agent of the DMCC. For the period 2013 to date, the City has provided all funding of the DMCC. The City also serves as Assistant Treasurer to the DMCC. By statute, Mayo Clinic was required to establish and appoint the Destination Medical Center Economic Development Agency (the “EDA”) as a private corporation. The Act required the DMCC to engage the EDA to assist in preparing the development plan and to perform certain enumerated services. The DMCC reviews and approves the EDA budget and work plan on an annual basis. The DMCC also revises and approves the EDA expenses on a monthly basis. In addition to the annual budget process, the City and DMCC have entered into a working capital loan agreement to provide working capital to the DMCC. The DMCC, in turn, has entered into a working capital loan agreement with the EDA, to provide working capital to the EDA. The City and the State Auditor have the right to audit the financial records of the DMCC and the EDA. In addition, the DMCC must arrange an annual external audit and provide the results to the City. C. Finance Operations The DMCC has appointed Aaron Parrish, Deputy City Administrator for the City of Rochester, to act as Interim Assistant Treasurer of the DMCC. The City provides accounting, purchasing, and information systems service to the DMCC. The City maintains its financial data utilizing Oracle/JD Edwards EnterpriseOne financial software. The EDA uses Quick Books financial software to provide appropriate accounting schedules and reports. IV. TIME REQUIREMENTS A. Proposal Calendar The following is a list of key dates up to and including the date proposals are due to be submitted: Request for proposals issued September 21, 2023 Last day for proposals due to the DMCC October 12, 2023 17 7 Possible interviews October 25-27, 2023 DMCC approves award for contract November 17, 2023 Selected firm notified November 17, 2023 Completed contract signed by December 20, 2023 B. Audit Timelines for 2024, 2025, 2026 (Audit Years 2023, 2024, 2025) 1. Detailed Audit Plan Required The auditor shall provide to the DMCC and EDA a detailed audit plan by January 15 of each year. The detailed audit plan must include dates of entrance conferences, progress conferences, draft reports and exit conferences, along with a list of all schedules to be prepared by the DMCC or the EDA and the dates these schedules are required in order to meet the required timelines. 2. Fieldwork for Audit The auditor shall complete all fieldwork by March 15. 3. Final Audit Reports The auditor shall have the audit opinion and recommendations to management available to review by the DMCC and EDA by May 15. 4. Approximate 2023 Transaction Volumes For reference for 2023 Audit Year: transaction volumes for the DMCC and EDA are in the approximate ranges set forth below: a. DMCC transaction volume in 2022: i. One (1) bank account ii. Fifty Four (54) checks written iii. Twenty Nine (29) receipts received iv. No accounts receivable v. Seventy Four (74) accounts payable voucher documents vi. No employees vii. No fixed assets The 2022 DMCC Financial Statements and Audit Report are available at https://dmc.mn/wp-content/uploads/2023/09/Signed- Final-Report-and-Financial-Statements-Electronic-copy.pdf 18 8 b. EDA transaction volume in 2022: i. Eighty (80) cash/revenue deposits to bank account ii. Three Hundred Fifty Eight (358) check disbursements for expenses iii. One (1) account receivable (from DMCC) iv. Four (4) bank accounts v. Thirty (30) vendors in accounts payable vi. Twelve (12) employees vii. Twenty (20) fixed assets. C. Tax Filings. The required federal and Minnesota tax filings must be timely filed. V. ASSISTANCE TO BE PROVIDED TO THE AUDITOR AND REPORT PREPARATION A. DMCC, EDA and City Finance Department and Clerical Assistance The DMCC, EDA, and City finance department staff and responsible management personnel will be available during the audits to assist the firm by providing required schedules and reports, supplementary information, documentation and explanations. The auditor will prepare the consolidated statements or annual reports and assist in the review and finalization of this report. B. Work Area, Telephones, Photocopying and FAX Machines On behalf of the DMCC, the City will provide the auditor with reasonable work space, table, and chairs. The auditor will also be provided with access to the telephone, photocopying facilities, and FAX machines subject to long distance charges. On-line access to the DMCC or EDA’s accounting records will be provided to the auditing firm during onsite field work activities via a networked personal computer. On behalf of the EDA, the EDA will provide the auditor with reasonable work space, table, and chairs. The auditor will also be provided with access to the telephone, photocopying facilities, and FAX machines subject to long distance charges. On-line access to the EDA’s accounting records will be provided to the auditing firm during onsite field work activities via a networked personal computer. 19 9 C. Report Preparation The DMCC and the EDA expect that, due to limited staff, the selected audit firm shall prepare the consolidated statements or annual reports. In addition, preparation, editing and printing of all audit reports outlined in Section II.D. shall be the responsibility of the auditor. VI. PROPOSAL REQUIREMENTS A. General Requirements 1. Inquiries Inquiries concerning the Request for Proposals and the subject of the Request for Proposals must be made to: Kaela Brennan kmb@mcgrannshea.com or Kaela Brennan McGrann Shea Carnival Straughn & Lamb, Chartered 800 Nicollet Mall, Suite 2600 Minneapolis, MN 55402 612-338-2525 To assure consistent information shared with all proposers, all questions regarding this proposal should be directed only to Kaela Brennan. 2. Submission of Proposals The following material is required to be received by October 12, 2023, at 4:00 p.m. for a proposing firm to be considered: a. An electronic copy of the proposal to include the following: i. Title Page Title page showing the request for proposals subject; the firm’s name; the name, address and telephone number of the contact person; and the date of the proposal. ii. Table of Contents iii. Letter of Transmittal A signed letter of transmittal briefly stating the proposer’s understanding of the work to be done, the commitment to 20 10 perform the work within the time period, a statement why the firm believes it is best qualified to perform the engagement and a statement that the proposal is a firm and irrevocable offer for fiscal years 2023-2025. Provide the names of the person(s) who will be authorized to make representations for the proposer, their titles, addresses and telephone numbers. iv. Detailed Proposal The detailed proposal should follow the order set forth in Section VI B of this request for proposals. v. Executed copies of Proposer’s Guarantees and Proposer Warranties, attached to this request for proposal (Appendix B and Appendix C). b. In addition, proposers should submit an electronic copy of a dollar cost proposal in a separate attachment marked as follows: SEALED DOLLAR COST PROPOSAL TO THE DMCC AND EDA FOR PROFESSIONAL AUDITING SERVICES 2023 – 2025 c. The cost proposal should list separately the costs attributable to the DMCC audit and the costs attributable to the EDA audit. Please note: in order to be considered by the review committee, the proposer must prepare a cost proposal for each of the DMCC and the EDA. d. Proposers should send the completed proposal consisting of an email with two (2) separate attachments, clearly marked as the “Technical Proposal” and the “Sealed Dollar Cost Proposal” to the following address: Kaela Brennan kmb@mcgrannshea.com B. Technical Proposal 1. General Requirements The purpose of the Technical Proposal is to demonstrate the qualifications, competence and capacity of the firms seeking to undertake an independent 21 11 audit of the DMCC and the EDA in conformity with the requirements of this Request for Proposals. As such, the substance of proposals will carry more weight than their form or manner of presentation. The Technical Proposal should demonstrate the qualifications of the firm and of the particular staff to be assigned to this engagement. It should also specify an audit approach that will meet the request for proposals requirements. THERE SHOULD BE NO DOLLAR UNITS OR TOTAL COSTS INCLUDED IN THE TECHNICAL PROPOSAL DOCUMENT. The Technical Proposal should address all the points outlined in the RFP (excluding any cost information which should only be included in the sealed dollar cost proposal). The proposal should be prepared simply and economically, providing a straightforward, concise description of the proposer’s capabilities to satisfy the requirements of the RFP. While additional information may be presented, the following subjects, items 2 through 10, should be followed. They represent the criteria against which the proposal will be evaluated. 2. Independence The firm should provide an affirmative statement that it is independent of the DMCC and the EDA as defined by generally accepted auditing standards and the Governmental Accounting Standards Board. The firm should also list and describe the firm’s (or proposed subcontractors, if used) professional relationships involving the DMCC or the EDA, together with a statement explaining why such relationships do not constitute a conflict of interest relative to performing the proposed audit. In addition, the firm shall give the DMCC written notice of any professional relationships entered into during the period of this agreement. 3. License to Practice in Minnesota An affirmative statement should be included that the firm and all assigned key professional staff are properly licensed to practice in Minnesota. 4. Firm Qualifications and Experience The proposer should state the size of the firm, the size of the firm’s audit staff, the location of the office from which the work on this engagement is to be performed and the number and nature of the professional staff to be employed in this engagement on a full-time basis and the number and nature of the staff to be so employed on a part-time basis. 22 12 If the proposer is a joint venture or consortium, the qualifications of each firm comprising the joint venture or consortium should be separately identified and the firm that is to serve as the principal auditor should be noted, if applicable. The firm is also required to submit a copy of the report on its most recent external quality control review. The firm shall also provide information on the results of any federal or state desk reviews or field reviews of its audits during the past three (3) years. In addition, the firm shall provide information on the circumstances and status of any disciplinary action taken or pending against the firm during the past three (3) years with state regulatory bodies or professional organizations. 5. Partner, Supervisory, and Staff Qualifications and Experience Identify the principal supervisory and management staff, including engagement partners, managers, other supervisors, and specialists, who would be assigned to the engagement. Indicate whether each such person is registered or licensed to practice as a certified public accountant in Minnesota. Provide information on the government experience of each person, including information on relevant continuing professional education for the past three (3) years and membership in professional organizations relevant to the performance of this audit. Provide as much information as possible regarding the number, qualifications, experience, and training, including relevant continuing professional education, of the specific staff to be assigned to this engagement. Indicate how the quality of staff over the term of the agreement will be assured. Engagement partners, managers, other supervisory staff and specialists may be changed if those personnel leave the firm, are promoted or are assigned to another office. These personnel may also be changed for other reasons with the express prior written permission of the DMCC. However, in either case, the DMCC retains the right to approve or reject replacements. Consultants and firm specialists mentioned in response to this request for proposal can only be changed with the express prior written permission of the DMCC, which retains the right to approve or reject replacements. Other audit personnel may be changed at the discretion of the proposer provided that replacements have substantially the same or better qualifications or experience. 23 13 6. Prior Engagements with the DMCC or EDA List separately all engagements within the last three years, ranked on the basis of total staff hours, for the DMCC or EDA by type of engagement (i.e., audit, management advisory services, other). Indicate the scope of work, date, engagement partners, total hours, the location of the firm’s office from which the engagement was performed, and the name and telephone number of the principal client contact. 7. Similar Engagements with Government Entities For the firm’s office that will be assigned responsibility for the audit, list the most significant engagements (maximum - 5) performed in the last two (2) years for governmental entities, including the City of Rochester, that are similar to the engagement described in this request for proposal. These engagements should be ranked on the basis of total staff hours. Indicate the scope of work, date, engagement partners, total hours, and the name and telephone number of the principal client contact. 8. Specific Audit Approach The proposal should set forth a work plan, including an explanation of the audit methodology to be followed, to perform the services required in Section II of this RFP. In developing the work plan, reference should be made to such sources of information as DMCC’s budget and related materials, the EDA’s budget and related materials, organizational charts, manuals and programs, and financial and other management information systems. Proposers will be required to provide the following information on their audit approach: a. Proposed segmentation of the engagement b. Level of staff and number of hours to be assigned to each proposed segment of the engagement NO DOLLARS SHOULD BE INCLUDED IN THE TECHNICAL PROPOSAL c. Sample size and the extent to which statistical sampling is to be used in the engagement d. Extent of use of EDP software in the engagement e. Type and extent of analytical procedures to be used in the engagement 24 14 f. Approach to be taken to gain and document an understanding of the DMCC’s and EDA’s respective internal control structures g. Approach to be taken in determining laws and regulations that will be subject to audit test work h. Approach to be taken in drawing audit samples for purposes of tests of compliance 9. Identification of Anticipated Potential Audit Problems The proposal should identify and describe any anticipated potential audit problems, the firm’s approach to resolving these problems and any special assistance that will be requested from the DMCC, the EDA or the City. 10. Report Format The proposal should include sample formats for required reports. C. Sealed Dollar Cost Proposal 1. Costs for Each Audit The sealed dollar cost proposal should contain all pricing information relative to performing the individual audits for the DMCC and EDA as described in this Request for Proposal. The maximum price to be bid for each entity is to contain all direct and indirect costs, including all out-of- pocket expenses from initial field work through and including final audit reports, management letter, and presentation to the DMCC and EDA. For any given option listed in Appendix D, please itemize the proposed costs for each segment of that option, resulting in the Grand Total. Neither the DMCC or the EDA will be responsible for expenses incurred in preparing and submitting the technical proposal or the sealed dollar cost proposal. Such costs should not be included in the proposal. The first page of the sealed dollar cost proposal should include the following: a. Name of Firm b. Certification that the person signing the proposal is entitled to represent the firm, empowered to submit the proposal, and authorized to sign a contract with the DMCC. c. A total cost for each audit for the 2023-2025 engagements, broken down as noted on Appendix D. 25 15 2. Rates by Partner, Specialist, Supervisory and Staff Level Times Hours Anticipated for each The cost proposal should include a schedule of professional fees and expenses, presented in the format provided in the attachment (Appendix D) that supports the total all-inclusive maximum price for the first year of the audit. Any additional costs to address items listed in section II.F. – Additional Accounting Services, of this Request for Proposal should be disclosed as separate components of the total all- inclusive maximum price by completing Appendix D. 3. Out-of-Pocket Expenses Included in the Total All-inclusive Maximum Price and Reimbursement Rates 4. Rates for Additional Professional Services If it should become necessary for either the DMCC or the EDA to request the auditor to render any additional services to either supplement the services requested in this RFP or to perform additional work as a result of the specific recommendations included in any report issued on this engagement, then such additional work shall be performed only if agreed to between the DMCC or the EDA and the firm and shall be performed at the same rates set forth in the schedule of fees and expenses included in the sealed dollar cost bid. 5. Manner of Payment The auditor must bill the DMCC and the EDA separately, and each will be responsible for its own payments. Progress payments will be made on the basis of hours of work completed during the course of the engagement and out-of-pocket expenses incurred in accordance with the firm’s dollar cost bid proposal. Interim billing shall cover a period of not less than a calendar month VII. EVALUATION PROCEDURES A. Review Committee A review committee comprised of representatives of the DMCC, EDA and the City finance department staff will evaluate proposals submitted. B. Review of Proposals The review committee will use a point formula during the review process to score proposals. Each member of the selection committee will first score each proposal based on mandatory elements, technical qualifications, and price. The review committee will then convene to review and discuss these evaluations and to combine the individual scores to arrive at a composite score for each firm. Firms 26 16 with an unacceptably low technical score will be eliminated from further consideration. NOTE: Cost will not be the primary factor in the selection of an audit firm. C. Oral Presentations During the evaluation process, the review committee may, at its discretion, request any one or all firms to make oral presentations. Such presentations will provide firms with an opportunity to answer any questions the review committee may have on a firm’s proposal. Not all firms may be asked to make such oral presentations. D. Final Selection The DMCC will make the final selection of a firm following a recommendation of the review committee. It is anticipated that a firm will be selected by November 17, 2023. Following notification of the firm selected, it is expected a contract will be executed between both parties on or before December 20, 2023. E. Right to Reject Proposals Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposal unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the DMCC and the firm selected. The DMCC reserves the right without prejudice to reject any or all proposals. VIII. APPENDICES A. DMCC/EDA Accounts and Flow of Funds B. Proposer Guarantees C. Proposer Warranties D. Format for Cost Proposal and Schedule of Professional Fees and Expenses CONTRACT TERMS AND CONDITIONS No reimbursement will be made by the DMCC or the EDA for any costs incurred prior to the award of a contract as a result of this solicitation. The following clauses will be included in any contract between the DMCC and the Firm that has been chosen to provide the services described herein and in the Firm’s proposal. Insurance: During the term of the contract, the Firm shall maintain the following minimum insurance coverage: 27 17 A. Comprehensive General Liability Insurance: Bodily injury in the amount of at least $1,000,000 per individual and $1,000,000 for injuries or death arising out of each occurrence. Property damage liability in the amount of $1,000,000 for each occurrence. B. Automobile Liability Insurance: At least $300,000 per individual and $1,000,000 per occurrence for any injuries, including death, arising out of each occurrence, and property damage coverage of $1,000,000 for each occurrence. C. Worker’s Compensation Insurance as required by Minnesota Statutes, Section 176.181, subd 2. D. Professional Liability Insurance in the amount of $1,000,000 during the term of the contract. Certificates of Insurance must be filed with the DMCC and the EDA before any work under the contract may commence. The DMCC and the EDA shall be named as an additional insureds on the general liability insurance policies. All such certificates shall state that the insurance company shall give the DMCC and the EDA thirty (30) days written notice of cancellation, non- renewal or any material change to the policy. Rights of Use: The Firm shall agree that the DMCC and the EDA will own and have the right to use, reproduce, and apply as it desires, any data, reports, analyses and materials which are collected or developed by the Firm or anyone acting on behalf of the Firm as a result of this contract. Indemnification: The Firm shall defend, indemnify, and hold harmless the DMCC, the EDA, and their respective officials, agents, and employees from and against all claims, damages, losses and expenses, including attorney’s fees arising out of or resulting from the Firm’s (including its officials, agents) performance of the duties required under the contract, provided that any such claim, damage, loss, or expense is attributable to bodily injury, sickness, disease, death, or to the injury to or the destruction of property, including a loss of use resulting there from, and is caused in whole or in part by any negligent act or omission or misconduct of the Firm. Independent Contractor: It is agreed that nothing herein contained is intended or should be construed in any manner as creating or establishing the relationship of co-partners between the parties hereto or as constituting the Firm’s as the agents, representatives, or employees of the DMCC or the EDA for any purpose or in any manner whatsoever. The Firm and its staff are to be and shall remain an independent contractor with respect to all services performed under this contract. The Firm represents that it has, or will secure at its own expense, all personnel required in performing services under this contract. Any and all personnel of the Firm or other persons, while engaged in the performance of any work or services required by the Firm under this contract, shall have no contractual relationship with the DMCC or the EDA and shall not be considered employees of the DMCC, the EDA, and any and all claims that may arise under the Workers’ Compensation 28 18 Act of the State of Minnesota on behalf of said personnel or other persons while so engaged, and any and all claims whatsoever on behalf of any such person or personnel arising out of employment or alleged employment including, without limitation, claims of discrimination against the Firm, its officers, agents, contractors, or employees shall in no way be the responsibility of the DMCC or the EDA; and the Firm shall defend, indemnify, and hold the DMCC, the EDA, their respective officers, agents and employees harmless from any and all such claims regardless of any determination of any pertinent tribunal, agency, board, commission or court. Such personnel or other persons shall not require nor be entitled to any compensation, rights or benefits of any kind whatsoever from the DMCC or the EDA, including, without limitation, tenure rights, medical and hospital care, sick and vacation leave, Workers’ Compensation, Unemployment Compensation, disability, severance pay and PERA. Non-Discrimination: During the performance of this contract, the Firm will not discriminate against any employee or applicant for employment because of race, color, creed, religion, ancestry, national origin, sex, sexual orientation, disability, age, marital status, or status with regard to public assistance. The Firm will take affirmative action to insure that all employment practices are free of such discrimination. Such employment practices include, but are not limited to, the following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The Firm agrees to post in places that are available to employees and applicants for employment, notices that set forth the provisions of this nondiscrimination clause. The notices shall inform all persons that any complaints regarding Firm compliance with the nondiscrimination clause may be reported to the DMCC. Human Rights: The Firm agrees to comply with the Minnesota State Human Rights Act, Minnesota Statutes, Section 363. ADA: The Firm agrees to comply with the Americans with Disabilities Act Section 504 of the Rehabilitation Act of 1973 and not discriminate on the basis of disability in the admission or access to, or treatment of employment in its services, programs, or activities. The Firm agrees to hold harmless and indemnify the DMCC and EDA from costs, including but not limited to damages, attorney’s fees, and staff time, in any action or proceeding brought alleging a violation of ADA and/or Section 504 caused by the Firm. Sublet/Assign: The contract shall not be assignable except with the written consent of the DMCC. Sub-Contractor Payment: The Firm agrees that it must pay any subcontractor within ten days of the prime firm’s receipt of payment from the DMCC or the EDA for undisputed services provided by the subcontractor. 29 19 The Firm agrees that it must pay interest of 1-1/2 percent per month or any part of a month to the subcontractor on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10. For an unpaid balance of less than $100, the prime firm shall pay the actual penalty due to the subcontractor. A subcontractor who prevails in a civil action to collect interest penalties from a prime contractor must be awarded its costs and disbursements, including attorney’s fees, incurred in bringing this action. Data Practices: The Firm will comply with all applicable provisions of the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13. Audit: All books, records, documents, and accounting procedures of the Firm, relevant to the contract, are subject to examination by the DMCC and either the legislative or state auditor as appropriate, pursuant to Minnesota Statutes, Section 16C.05, subd. 5. Laws: The Firm will comply with all applicable local, state, and federal laws, rules and regulations in the performance of the duties of the contract. The Firm will comply with and be governed by all laws of the State of Minnesota. Termination: The contract may be terminated for any reason upon giving thirty (30) days’ advance written notice to the other party. The DMCC reserves the right to cancel this contract at any time in the event of default or violation by the Firm of any provision of the contract. The DMCC may take whatever action at law or in equity that may appear necessary or desirable to collect damages arising from a default or violation or to enforce performance of the contract. 30 A-1 APPENDIX A 31 B-1 APPENDIX B PROPOSER GUARANTEES 1. The proposer certifies it can and will provide and make available, as a minimum, all services set forth in Section II, Nature of Services Required. Signature of Official: Name (typed): Title: Firm: Date: 32 C-1 APPENDIX C PROPOSER WARRANTIES A. Proposer warrants that it is willing and able to comply with State of Minnesota laws with respect to foreign (non-state of Minnesota) corporations. B. Proposer warrants that it is willing and able to obtain an errors and omissions insurance policy providing a prudent amount of coverage for the willful or negligent acts, or omissions of any officers, employees or agents thereof. C. Proposer warrants that it will not delegate or subcontract its responsibilities under an agreement without the prior written permission of the Destination Medical Center Corporation. D. Proposer warrants that all information provided by it in connection with this proposal is true and accurate. Signature of Official: Name (typed): Title: Firm: Date: 33 D-1 APPENDIX D Destination Medical Center Corporation (“DMCC”) And Destination Medical Center Economic Development Agency (“EDA”) Request for Proposal for Professional Auditing Services For services described in Section II, A-G of the RFP *NOTE: PLEASE COMPLETE BOTH PAGES OF THIS APPENDIX D I. PROPOSAL TO DMCC Audit Year: 2023 2024 2025 Service Provided: DMCC general audit costs DMCC tax preparation and filing costs DMCC Annual Charitable Organizations Report DMCC procedures audit for DEED Grand Total Year: 2024 2025 2026 Quoted Hourly Rate Quoted Hourly Rate Quoted Hourly Rate Service provided by: Partners/Principals __________ __________ __________ Managers __________ __________ __________ Supervisory Staff __________ __________ __________ Staff __________ __________ __________ Other (specify) __________ __________ __________ Quoted Daily Rate Quoted Daily Rate Quoted Daily Rate Out-of-Pocket Expenses: Meals (per employee) __________ __________ __________ Lodging (per employee) __________ __________ __________ Transportation (per trip) __________ __________ __________ Other (specify) __________ __________ __________ 34 D-2 II. PROPOSAL TO EDA Audit Year: 2023 2024 2025 Service Provided: EDA general audit costs EDA tax preparation and filing costs Grand Total Year: 2024 2025 2026 Quoted Hourly Rate Quoted Hourly Rate Quoted Hourly Rate Service provided by: Partners/Principals __________ __________ __________ Managers __________ __________ __________ Supervisory Staff __________ __________ __________ Staff __________ __________ __________ Other (specify) __________ __________ __________ Quoted Daily Rate Quoted Daily Rate Quoted Daily Rate Out-of-Pocket Expenses: Meals (per employee) __________ __________ __________ Lodging (per employee) __________ __________ __________ Transportation (per trip) __________ __________ __________ Other (specify) __________ __________ __________ 1748132-6.DOCX 35 36 A. DESTINATION MEDICAL CENTER CORPORATION RESOLUTION NO. -2023 Approving the 2024-2025 DMCC Board Regular Meeting Schedule BACKGROUND RECITALS The Minnesota Open Meeting Law provides that a schedule of the regular meetings of a public body shall be kept on file at its primary office. If a public body decides to hold a regular meeting at a time or place different from the time or place stated in its schedule of regular meetings, it shall give the same notice of the meeting that is provided for a special meeting. RESOLUTION NOW, THEREFORE, BE IT RESOLVED, by the Destination Medical Center Corporation (“DMCC”) Board of Directors that the schedule of regular meetings for 2024 is set forth below. The meetings will begin at 9:30 a.m., and the location will be at the Mayo Civic Center. The Secretary is directed to post the schedule on the website and to post notification by such other means as he determines necessary and appropriate. Date Time 2024 Thursday, February 1, 2024 9:30 a.m. Thursday, May 23, 2024 9:30 a.m. Thursday, September 26, 2024 9:30 a.m. Thursday, December 5, 2024 9:30 a.m. 2025 Thursday, February 6, 2025 9:30 a.m. Thursday, May 22, 2025 9:30 a.m. Thursday, September 25, 2025 9:30 a.m. Thursday, December 4, 2025 9:30 a.m. 1747327-5 37 38 To: Mark Thein, Treasurer Kaela Brennan, Attorney From: Jean McGann, City of Rochester Interim Finance Director Date: September 18, 2023 RE: August 2023 DMCC Budget Summary – unaudited The attached budget summary through August 2023 reflects DMCC operating expenditures totaling $2,043,709 of the $3.9 million approved 2023 budget. The remaining amount unspent represents 48% of the total budget with 25% of the year remaining. The second page of this summary provides a listing of DMCC authorized capital projects managed by the City of Rochester and categorized by program budgets. Approximately $6.3 million has been spent on these projects in 2023 with the majority spent on Discovery Walk and Rapid Transit activity. Total life-to-date expenditures on all projects is approximately $108.2 million. Please feel free to contact me with any questions or concerns. 39 40 Destination Medical Center Corporation Financial Budget Summary April 30, 2023 2023 Current Month August 2023 Amount Percent Approved Budget August 2023 Year To Date Remaining Remaining DMCC Corporation: Rents and Leases 34,017 22,681 11,336 33% Professional Services 172,300 113 70,206 102,094 59% Travel/Training 6,000 1,566 4,434 74% Insurance and Bonds 20,000 7,358 Interest / Other Administrative 4 26 Subtotal DMCC 232,317 117 101,836 117,865 51% Third Party Costs - DMC EDA Employee Services 1,289,172 91,895 753,192 535,980 42% Operating Expenses 70,974 15,970 164,451 (93,477) -132% Operational Costs - Contracted 1,189 (1,189) Economic Development Outreach & Support 691,472 21,625 192,327 499,145 72% Professional Services 517,410 14,270 210,553 306,857 59% Miscellaneous Expenses 54,500 54,500 100% Subtotal EDA 2,623,528 143,760 1,321,712 1,301,816 50% Third Party Costs - City of Rochester Project Management Budget Employee Services 995,277 74,182 569,712 425,565 43% Contractual Maint and Repair 38,760 705 753 38,007 98% Expert and Professional Services 8,160 14,710 18,859 (10,699) -131% Travel/Training/Memberships 13,414 1,398 4,144 9,270 69% Operations Expenses 12,990 12,608 12,608 382 3% Miscellaneous/Other 11,568 7,639 14,085 (2,517) -22% Subtotal City Project Management 1,080,169 111,242 620,161 460,008 43% Total DMCC Operations 2023 3,936,014 255,119 2,043,709 1,892,305 48% Note: An additional payment request received in September that included August DMC EDA charges of $8,476. DMCC Working Capital Note: $1,000 EDA Working Capital Note: $100,000 41 PROJECT PROJECT STATUS YEAR TO DATE EXPENSES PROJECT BUDGET LIFE TO DATE EXPENSES LIFE TO DATE ENCUMBRANCE Notes Administration C.8601 - City Project Administrative Costs-DMCC (Budget-Current Yr) Annual Budget 423,998 1,096,277 3,145,318 C.8606 - City Staff Costs-DMCC - (Budget-Current Yr)Annual Budget 8,912 442,225 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 Complete 250,000 43,524 C.8902 - FestivalAreaStdy&ConceptDesign Complete 84,133 Total Administration 432,910 2,096,277 4,038,914 Econ Development/Public Realm C.8624 - ChateauTheatreBldgImprov/Purch Nearly Complete 321,655 9,186,027 8,965,027 C.8625 - Heart of the City Nearly Complete 13,201 20,593,371 21,238,425 513,033 C.8633 - Strategic Development Ongoing 13,000,000 2,200,000 C.8634 - Riverfront Reimagined Study 652,551 1,000,000 832,098 C.8904 - Discovery Walk Active Construction 3,567,500 15,720,000 12,213,745 5,278,633 Total Econ Development/Public Realm 4,554,907 59,499,398 45,449,295 5,791,666 Infrastructure C.8611 - San. Sewer 12th Ave from 2nd St NW to 2nd St SW Post Construction 174,155 6,260,294 6,163,981 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 8,000,000 6,662,993 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 1,949 1,532,000 1,532,138 C.7318 - Reconst North Broadway - Active Construction - 4,400,000 4,000,000 1 C.1037 - Steam Replace/District Energy Active Construction - 2,000,000 731,815 - 2 C. 4716 Downtown Sidewalk Experience Enhancement Active Construction 52,785 2,900,000 2,131,000 3 C. 7344 Reconstruct 3rd Avenue NW Between 4th St SW and 5th St SW Active Construction 35,367 1,578,000 345,000 27,824 C.7830 1st Street NW San Sewer Diversion from 1st Ave to Broadway Warranty - 1,479,000 1,400,032 C.7919 6th Street Bridge over Zumbro River Design - 280,000 279,588 Total Infrastructure 264,257 31,585,083 25,498,929 27,824 Transit C.8614 - DMCTransit&InfrastrctrPgrmMgmt Complete 3,956,739 1,826,262 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 983,476 24,136,647 10,400,342 C.8709 - Arrive Rochester Implementatn Ongoing 25,806 300,000 144,571 C.8903 - Dedicated Bike Lanes-3rd/4thAve&CtrSt Complete 2,038,300 1,745,083 - - Total Transit 1,009,282 49,562,718 33,225,323 - - Grand Total 6,261,355 142,743,476 108,212,461 5,819,490 - Notes 1. $4,000,000 of the $4,400,000 has been transferred to date 3. Budget amount varies from April report. Budget amount taken from Capital Improvement Program (CIP). 2. DMCC has not approved any expenditures for this project to date. The budget indicated on this report varies from the April report. Budget number was taken from the Capital Improvement Program. DMCC Projects by Category Managed by City of Rochester Through August 2023 42 22634004-01-22 DRAFT CLIFTONLARSONALLEN LLP 2689 COMMERCE DRIVE NW, SUITE 201 ROCHESTER, MN 55901 DESTINATION MEDICAL CENTER CORPORATION 201 4TH STREET SE, 204 ROCHESTER, MN 55904 !559047! 43 DRAFTCLIENT'S COPY Caution: Forms printed from within Adobe Acrobat products may not meet IRS or state taxing agency specifications. When using Acrobat, select the "Actual Size" in the Adobe "Print" dialog. 13210918 131839 A343438 2022.04020 DESTINATION MEDICAL CENTE A3434381 44 DRAFT September 18, 2023 Destination Medical Center Corporation 201 4th Street SE 204 Rochester, MN 55904 Destination Medical Center Corporation: Enclosed is the organization's 2022 Exempt Organization return. Specific filing instructions are as follows. FORM 990 RETURN: This return has qualified for electronic filing. After you have reviewed the return for completeness and accuracy, please sign, date and return Form 8879-TE to our office. We will transmit the return electronically to the IRS and no further action is required. Please return Form 8879-TE to us as soon as possible, but no later than by November 15, 2023 the filing deadline. In addition, tax-exempt organizations must make available for public inspection a copy of their annual returns for the preceding three years and exemption application, if applicable. An organization generally must furnish filings to anyone who requests them in person or in writing. An exempt organization may meet this requirement by posting all the documents on its website or at another organizations site as part of a database of similar materials. Specific requirements must be met to meet this exception. MINNESOTA ANNUAL REPORT: The Minnesota Annual Report should be mailed on or before November 15, 2023 to: Minnesota Attorney Generals Office Charities Division 445 Minnesota Street, Suite 1200 St. Paul, MN 55101-2130 Enclose a check or money order for $25, payable to State of Minnesota. Include the organization's Federal Employer Identification Number and 2022 Annual Report on the remittance. The report should be signed and dated by the authorized individual(s). Please include the following items with your MN Charities Annual Report submission: - Copy of the Form 990 plus all schedules - Copy of the Audited Financial Statements - Full listing of the board of directors including names, titles, addresses, and compensation paid to each - $25 registration fee The documents can be mailed to the address listed above, or send via email to: charity.registration@ag.state.mn.us. You may pay the $25 registration fee via check, or credit card. If you would like to pay via credit card you may do so at: www.ag.state.mn.us/Charity/CharFees.aspx. 45 DRAFT A few final reminders relating to your tax return filings: There are substantial penalties for failure to properly disclose and report foreign financial accounts and foreign activity. Please make sure you have informed us of any foreign financial accounts or foreign activity so that we have the necessary information to complete any required disclosures or filings. Be sure to review the returns prior to signing as you have final responsibility for all information included in the returns. Please contact us if you have any questions or concerns. We recommend you keep a paper or electronic copy of your tax returns permanently. Supporting documentation should be kept for a minimum of seven years based on IRS guidance. CLA exists to create opportunities – for our clients, our people, and our communities. We value our relationship with you and thank you for your trust and confidence in allowing us to serve you. If we can assist you in making strategic, informed decisions in areas of tax or beyond, please contact us as questions arise throughout the year. Sincerely, CliftonLarsonAllen LLP 46 DRAFT DESTINATION MEDICAL CENTER CORPORATION FORM 990 INCOME TAX RETURN FOR YEAR ENDED DECEMBER 31, 2022 47 OMB No. 1545-0047 Form For calendar year 2022, or fiscal year beginning , 2022, and ending , 20 Department of the Treasury Internal Revenue Service Signature of officer or person subject to tax 202521 12-16-22 EIN or SSN Enter five numbers, butdo not enter all zerosERO firm name Do not enter all zeros Do not send to the IRS. Keep for your records. Go to www.irs.gov/Form8879TE for the latest information. 1a, 2a, 3a, 4a, 5a, 6a, 7a, 8a, 9a, 10a 1b, 2b, 3b, 4b, 5b, 6b, 7b, 8b, 9b, 10b, Do not 1a 2a 3a 4a 5a 6a 7a 8a 9a 10a Form 990 Form 990-EZ Form 1120-POL b Total revenue, 1b 2b 3b 4b 5b 6b 7b 8b 9b 10b b Total revenue, b Total tax Form 990-PF Form 8868 b Tax based on investment income b Balance due Form 990-T b Total tax Form 4720 b Total tax Form 5227 b FMV of assets at end of tax year Form 5330 b Tax due Form 8038-CP b Amount of credit payment requested (a) (b)(c) PIN: check one box only ERO's EFIN/PIN. Pub. 4163, For Privacy Act and Paperwork Reduction Act Notice, see instructions. e-file Name of filer Name and title of officer or person subject to tax ~~~~ ~~~~~~~~~~~~~~~~~~~~ Date ERO's signature Date Form (2022) Check the box for the return for which you are using this Form 8879-TE and enter the applicable amount, if any, from the return. Form 8038-CP and Form 5330 filers may enter dollars and cents. For all other forms, enter whole dollars only. If you check the box on line or below, and the amount on that line for the return being filed with this form was blank, then leave line or whichever is applicable, blank (do not enter -0-). But, if you entered -0- on the return, then enter -0- on the applicable line below. complete more than one line in Part I. check here check here check here ~~~if any (Form 990, Part VIII, column (A), line 12) ~~~~~~ ~if any (Form 990-EZ, line 9) ~~~~~~~~~~~~~~~ (Form 1120-POL, line 22) ~~~~~~~~~~~~~~~~~~~ check here check here ~(Form 990-PF, Part V, line 5) ~~(Form 8868, line 3c) check here~~(Form 990-T, Part III, line 4) ~~~~~~~~~~~~~~~~~~ check here ~~(Form 4720, Part III, line 1)~ check here ~~ (Form 5227, Item D) check here ~~ (Form 5330, Part II, line 19) check here (Form 8038-CP, Part III, line 22) Under penalties of perjury, I declare that I am an officer of the above entity or I am a person subject to tax with respect to (name of entity), (EIN)and that I have examined a copy of the 2022 electronic return and accompanying schedules and statements, and, to the best of my knowledge and belief, they are true, correct, andcomplete. I further declare that the amount in Part I above is the amount shown on the copy of the electronic return. I consent to allow myintermediate service provider, transmitter, or electronic return originator (ERO) to send the return to the IRS and to receive from the IRS anacknowledgement of receipt or reason for rejection of the transmission, the reason for any delay in processing the return or refund, and the dateof any refund. If applicable, I authorize the U.S. Treasury and its designated Financial Agent to initiate an electronic funds withdrawal (direct debit)entry to the financial institution account indicated in the tax preparation software for payment of the federal taxes owed on this return, and thefinancial institution to debit the entry to this account. To revoke a payment, I must contact the U.S. Treasury Financial Agent at 1-888-353-4537 nolater than 2 business days prior to the payment (settlement) date. I also authorize the financial institutions involved in the processing of the electronicpayment of taxes to receive confidential information necessary to answer inquiries and resolve issues related to the payment. I have selected apersonal identification number (PIN) as my signature for the electronic return and, if applicable, the consent to electronic funds withdrawal. I authorize to enter my PIN as my signature on the tax year 2022 electronically filed return. If I have indicated within this return that a copy of the return is being filed with a state agency(ies) regulating charities as part of the IRS Fed/State program, I also authorize the aforementioned ERO to enter my PIN on the return's disclosure consent screen. As an officer or person subject to tax with respect to the entity, I will enter my PIN as my signature on the tax year 2022 electronically filed return. If I have indicated within this return that a copy of the return is being filed with a state agency(ies) regulating charities as part of the IRS Fed/State program, I will enter my PIN on the return's disclosure consent screen. Enter your six-digit electronic filing identification number (EFIN) followed by your five-digit self-selected PIN. I certify that the above numeric entry is my PIN, which is my signature on the 2022 electronically filed return indicated above. I confirm that I am submitting this return in accordance with the requirements of Modernized e-File (MeF) Information for Authorized IRS Providers for Business Returns. LHA Part I Type of Return and Return Information Part II Declaration and Signature Authorization of Officer or Person Subject to Tax Part III Certification and Authentication ERO Must Retain This Form - See Instructions Do Not Submit This Form to the IRS Unless Requested To Do So 8879-TE IRS e-file Signature Authorizationfor a Tax Exempt Entity8879-TE 2022 DRAFT DESTIN?TION KEDIC?J CENTER CORPOR?TION 24+273715/ 0,..7,044.V V CJIDTONJ?RSON?JJEN JJP ((((( THIS IS NOT ? DIJE?BJE COPY ((((( 60702 TRE?SURER (((( THIS IS NOT ? DIJE?BJE COPY (((( 2/5/06/1/07 .7-/6-01 K?RI THEIN CR?IE POPENH?EEN V /10/.7/6 /1/617 ?121216 0.00..2.0. DESTIN?TION KEDIC?J CENTE ?121216/ 48 Department of the Treasury Internal Revenue Service File by the due date for filing your return. See instructions. 223841 04-01-22 | File a separate application for each return. | Go to www.irs.gov/Form8868 for the latest information. Electronic filing (e-file). Type or print Application Is For Return Code Application Is For Return Code 1 2 3a b c 3a 3b 3c $ $ $ Balance due. Caution: For Privacy Act and Paperwork Reduction Act Notice, see instructions.8868 www.irs.gov/e-file-providers/e-file-for-charities-and-non-profits. Form (Rev. January 2022)OMB No. 1545-0047 You can electronically file Form 8868 to request a 6-month automatic extension of time to file any of the forms listed below with the exception of Form 8870, Information Return for Transfers Associated With Certain Personal Benefit Contracts, for which an extension request must be sent to the IRS in paper format (see instructions). For more details on the electronic filing of this form, visit All corporations required to file an income tax return other than Form 990-T (including 1120-C filers), partnerships, REMICs, and trusts must use Form 7004 to request an extension of time to file income tax returns. Name of exempt organization or other filer, see instructions.Taxpayer identification number (TIN) Number, street, and room or suite no. If a P.O. box, see instructions. City, town or post office, state, and ZIP code. For a foreign address, see instructions. Enter the Return Code for the return that this application is for (file a separate application for each return) Form 990 or Form 990-EZ Form 4720 (individual) Form 990-PF 01 03 04 05 06 07 Form 1041-A 08 09 10 11 12 Form 4720 (other than individual) Form 5227 Form 6069 Form 8870 Form 990-T (sec. 401(a) or 408(a) trust) Form 990-T (trust other than above) Form 990-T (corporation) ¥ The books are in the care of | Telephone No. |Fax No. | ¥ If the organization does not have an office or place of business in the United States, check this box ~~~~~~~~~~~~~~~~~ | ¥ If this is for a Group Return, enter the organization's four digit Group Exemption Number (GEN) . If this is for the whole group, check this box . If it is for part of the group, check this box and attach a list with the names and TINs of all members the extension is for. || I request an automatic 6-month extension of time until , to file the exempt organization return for the organization named above. The extension is for the organization's return for: | | calendar year or tax year beginning , and ending . If the tax year entered in line 1 is for less than 12 months, check reason:Initial return Final return Change in accounting period If this application is for Forms 990-PF, 990-T, 4720, or 6069, enter the tentative tax, less any nonrefundable credits. See instructions. If this application is for Forms 990-PF, 990-T, 4720, or 6069, enter any refundable credits and estimated tax payments made. Include any prior year overpayment allowed as a credit. Subtract line 3b from line 3a. Include your payment with this form, if required, by using EFTPS (Electronic Federal Tax Payment System). See instructions. If you are going to make an electronic funds withdrawal (direct debit) with this Form 8868, see Form 8453-TE and Form 8879-TE for payment instructions. LHA Form (Rev. 1-2022) Automatic 6-Month Extension of Time. Only submit original (no copies needed). 8868 Application for Automatic Extension of Time To File an Exempt Organization Return DRAFT 2022 DESTINATION MEDICAL CENTER CORPORATION JOY HARRIS V 0. 0. 0. (507)328-2850 201 4TH STREET SE, 204 ROCHESTER, MN 55904 46-4959371 NOVEMBER 15, 2023 201 4TH STREET SE ROOM 204 - ROCHESTER, MN 55904 0 1 1 13210918 131839 A343438 2022.04020 DESTINATION MEDICAL CENTE A3434381 49 Check if self-employed Department of the TreasuryInternal Revenue Service Check ifapplicable: Addresschange Namechange Initialreturn Finalreturn/termin-ated Gross receipts $ Amendedreturn Applica-tionpending Are all subordinates included? 232001 12-13-22 OMB No. 1545-0047 Beginning of Current Year Paid Preparer Use Only Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except private foundations) Do not enter social security numbers on this form as it may be made public.Open to Public InspectionGo to www.irs.gov/Form990 for instructions and the latest information. A For the 2022 calendar year, or tax year beginning and ending B C D Employer identification number E G H(a) H(b) H(c) F Yes No Yes No I J K Website: L M 1 2 3 4 5 6 7 3 4 5 6 7a 7b a b Ac t i v i t i e s & G o v e r n a n c e Prior Year Current Year 8 9 10 11 12 13 14 15 16 17 18 19 Re v e n u e a bEx p e n s e s End of Year 20 21 22 Sign Here Yes No For Paperwork Reduction Act Notice, see the separate instructions. (or P.O. box if mail is not delivered to street address) Room/suite )501(c)(3) 501(c) ((insert no.) 4947(a)(1) or 527 Corporation Trust Association Other Form of organization:Year of formation:State of legal domicile: Ne t A s s e t s o r Fu n d B a l a n c e s Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than officer) is based on all information of which preparer has any knowledge. Signature of officer Date Type or print name and title Date PTINPrint/Type preparer's name Preparer's signature Firm's name Firm's EIN Firm's address Phone no. Form Name of organization Doing business as Number and street Telephone number City or town, state or province, country, and ZIP or foreign postal code Is this a group return for subordinates?Name and address of principal officer:~~ If "No," attach a list. See instructions Group exemption number Tax-exempt status: Briefly describe the organization's mission or most significant activities: Check this box if the organization discontinued its operations or disposed of more than 25% of its net assets. Number of voting members of the governing body (Part VI, line 1a) Number of independent voting members of the governing body (Part VI, line 1b) Total number of individuals employed in calendar year 2022 (Part V, line 2a) ~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~ Total number of volunteers (estimate if necessary) Total unrelated business revenue from Part VIII, column (C), line 12 Net unrelated business taxable income from Form 990-T, Part I, line 11 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~ Contributions and grants (Part VIII, line 1h) ~~~~~~~~~~~~~~~~~~~~~ Program service revenue (Part VIII, line 2g) ~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~Investment income (Part VIII, column (A), lines 3, 4, and 7d) Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)~~~~~~~~ Total revenue - add lines 8 through 11 (must equal Part VIII, column (A), line 12) Grants and similar amounts paid (Part IX, column (A), lines 1-3) Benefits paid to or for members (Part IX, column (A), line 4) Salaries, other compensation, employee benefits (Part IX, column (A), lines 5-10) ~~~~~~~~~~~ ~~~~~~~~~~~~~ ~~~ Professional fundraising fees (Part IX, column (A), line 11e) Total fundraising expenses (Part IX, column (D), line 25) ~~~~~~~~~~~~~~ Other expenses (Part IX, column (A), lines 11a-11d, 11f-24e) Total expenses. Add lines 13-17 (must equal Part IX, column (A), line 25) Revenue less expenses. Subtract line 18 from line 12 ~~~~~~~~~~~~~ ~~~~~~~ Total assets (Part X, line 16) Total liabilities (Part X, line 26) Net assets or fund balances. Subtract line 21 from line 20 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~ May the IRS discuss this return with the preparer shown above? See instructions LHA Form (2022) Part I Summary Signature BlockPart II 990 Return of Organization Exempt From Income Tax990 2022 DPAFR DESTINATION MEDICAL CENTER CORPORATION 46-4959371 507-328-2850201 4TF STREET SE 204 2,009,266. ROCFESTER, MN 55904 VMARI TFEIN UUU.DMC.MN V 2013 MN PLANNING $ IMPLEMENTATION OF 8 8 0 8 0. 0. 2,009,253. 0. 13. 0. 2,053,572. 2,009,266. 0. 0. 0. 0. 0. 2,009,266. 2,053,572. 2,009,266. 0.0. 379,838. 331,978. 379,838. 331,978. 0.0. MARI TFEIN, TREASSRER P01587689CRAIG POPENFAGEN 41-0746749CLIFTONLARSONALLEN LLP 2689 COMMERCE DRITE NU, SSITE 201 ROCFESTER, MN 55901 507-280-2300 V SAME AS C ABOTE DESTINATION MEDICAL CENTER DETELOPMENT IN DOUNTOUN ROCFESTER, MN. V 2,053,572. 0. 0. 0. 0. 0. 0. 0. 2,053,572. CRAIG POPENFAGEN 09/18/23 50 Code:Expenses $including grants of $Revenue $ Code:Expenses $including grants of $Revenue $ Code:Expenses $including grants of $Revenue $ Expenses $including grants of $Revenue $ 232002 12-13-22 1 2 3 4 Yes No Yes No 4a 4b 4c 4d 4e Form 990 (2022)Page Check if Schedule O contains a response or note to any line in this Part III Briefly describe the organization's mission: Did the organization undertake any significant program services during the year which were not listed on the prior Form 990 or 990-EZ? If "Yes," describe these new services on Schedule O. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization cease conducting, or make significant changes in how it conducts, any program services? If "Yes," describe these changes on Schedule O. ~~~~~~ Describe the organization's program service accomplishments for each of its three largest program services, as measured by expenses. Section 501(c)(3) and 501(c)(4) organizations are required to report the amount of grants and allocations to others, the total expenses, and revenue, if any, for each program service reported. () () () () () () () () () Other program services (Describe on Schedule O.) () () Total program service expenses Form (2022) 2 Statement of Program Service AccomplishmentsPart III 990 DRAFT UITH K?YO CJINIC ?T ITS HE?RT, THE DESTIN?TION KEDIC?J CENTER (DKC) V V INITI?TITE UIJJ BE THE C?T?JYST TO POSITION ROCHESTER, KINNESOT? ?S /,634,6//..... IN DEPTH STUDY OD INDR?STRUCTURE, PJ?NNINE, ?ND DETEJOPKENT DESTIN?TION KEDIC?J CENTER CORPOR?TION 24+273715/ THE UORJD%S PREKIER DESTIN?TION CENTER DOR HE?JTH ?ND UEJJNESS9 ?TTR?CTINE PEOPJE, INTESTKENT, ?ND JOBS TO ?KERIC?%S CITY DOR HE?JTH OTERSIEHT, PREP?R?TION ?ND IKPJEKENT?TION OD THE DETEJOPKENT PJ?N + ?N OPPORTUNITIES, ?ND DR?KEUORI TO SUPPORT THE DETEJOPKENT OD ROCHESTER ?S ? DESTIN?TION KEDIC?J CENTER. /,634,6//. V 1 /10/.7/6 /1/617 ?121216 0.00..2.0. DESTIN?TION KEDIC?J CENTE ?121216/ 51 232003 12-13-22 Yes No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 1 2 3 4 5 6 7 8 9 10 Section 501(c)(3) organizations. a b c d e f a b 11a 11b 11c 11d 11e 11f 12a 12b 13 14a 14b 15 16 17 18 19 20a 20b 21 a b 20 21 a b If "Yes," complete Schedule A Schedule B, Schedule of Contributors If "Yes," complete Schedule C, Part I If "Yes," complete Schedule C, Part II If "Yes," complete Schedule C, Part III If "Yes," complete Schedule D, Part I If "Yes," complete Schedule D, Part II If "Yes," complete Schedule D, Part III If "Yes," complete Schedule D, Part IV If "Yes," complete Schedule D, Part V If "Yes," complete Schedule D, Part VI If "Yes," complete Schedule D, Part VII If "Yes," complete Schedule D, Part VIII If "Yes," complete Schedule D, Part IX If "Yes," complete Schedule D, Part X If "Yes," complete Schedule D, Part X If "Yes," complete Schedule D, Parts XI and XII If "Yes," and if the organization answered "No" to line 12a, then completing Schedule D, Parts XI and XII is optional If "Yes," complete Schedule E If "Yes," complete Schedule F, Parts I and IV If "Yes," complete Schedule F, Parts II and IV If "Yes," complete Schedule F, Parts III and IV If "Yes," complete Schedule G, Part I. If "Yes," complete Schedule G, Part II If "Yes," complete Schedule G, Part III If "Yes," complete Schedule H If "Yes," complete Schedule I, Parts I and II Form 990 (2022)Page Is the organization described in section 501(c)(3) or 4947(a)(1) (other than a private foundation)? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Is the organization required to complete ? See instructions Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to candidates for public office? ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization engage in lobbying activities, or have a section 501(h) election in effect during the tax year? Is the organization a section 501(c)(4), 501(c)(5), or 501(c)(6) organization that receives membership dues, assessments, or similar amounts as defined in Rev. Proc. 98-19? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~ Did the organization maintain any donor advised funds or any similar funds or accounts for which donors have the right to provide advice on the distribution or investment of amounts in such funds or accounts? Did the organization receive or hold a conservation easement, including easements to preserve open space, the environment, historic land areas, or historic structures? Did the organization maintain collections of works of art, historical treasures, or other similar assets? ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization report an amount in Part X, line 21, for escrow or custodial account liability, serve as a custodian for amounts not listed in Part X; or provide credit counseling, debt management, credit repair, or debt negotiation services? Did the organization, directly or through a related organization, hold assets in donor-restricted endowments or in quasi endowments? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ If the organization's answer to any of the following questions is "Yes," then complete Schedule D, Parts VI, VII, VIII, IX, or X, as applicable. Did the organization report an amount for land, buildings, and equipment in Part X, line 10? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization report an amount for investments - other securities in Part X, line 12, that is 5% or more of its total assets reported in Part X, line 16? Did the organization report an amount for investments - program related in Part X, line 13, that is 5% or more of its total assets reported in Part X, line 16? ~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization report an amount for other assets in Part X, line 15, that is 5% or more of its total assets reported in Part X, line 16? Did the organization report an amount for other liabilities in Part X, line 25? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~ Did the organization's separate or consolidated financial statements for the tax year include a footnote that addresses the organization's liability for uncertain tax positions under FIN 48 (ASC 740)? Did the organization obtain separate, independent audited financial statements for the tax year? ~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Was the organization included in consolidated, independent audited financial statements for the tax year? ~~~~~ Is the organization a school described in section 170(b)(1)(A)(ii)? Did the organization maintain an office, employees, or agents outside of the United States? ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~ Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraising, business, investment, and program service activities outside the United States, or aggregate foreign investments valued at $100,000 or more? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or other assistance to or for any foreign organization? Did the organization report on Part IX, column (A), line 3, more than $5,000 of aggregate grants or other assistance to or for foreign individuals? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization report a total of more than $15,000 of expenses for professional fundraising services on Part IX, column (A), lines 6 and 11e? See instructions ~~~~~~~~~~~~~~~~~~~~ Did the organization report more than $15,000 total of fundraising event gross income and contributions on Part VIII, lines 1c and 8a? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization report more than $15,000 of gross income from gaming activities on Part VIII, line 9a? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization operate one or more hospital facilities? ~~~~~~~~~~~~~~~~~ If "Yes" to line 20a, did the organization attach a copy of its audited financial statements to this return?~~~~~~~~~~ Did the organization report more than $5,000 of grants or other assistance to any domestic organization or domestic government on Part IX, column (A), line 1? ~~~~~~~~~~~~~~ Form (2022) 3 Part IV Checklist of Required Schedules 990 DRAFT V V V V V V V V V V V V V V V V V V V V V V V V V V V V DESTIN?TION KEDIC?J CENTER CORPOR?TION 24+273715/ 2 /10/.7/6 /1/617 ?121216 0.00..2.0. DESTIN?TION KEDIC?J CENTE ?121216/ 52 232004 12-13-22 Yes No 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 22 23 24a 24b 24c 24d 25a 25b 26 27 28a 28b 28c 29 30 31 32 33 34 35a 35b 36 37 38 a b c d a b Section 501(c)(3), 501(c)(4), and 501(c)(29) organizations. a b c a b Section 501(c)(3) organizations. Note: Yes No 1a b c 1a 1b 1c (continued) If "Yes," complete Schedule I, Parts I and III If "Yes," complete Schedule J If "Yes," answer lines 24b through 24d and complete Schedule K. If "No," go to line 25a If "Yes," complete Schedule L, Part I If "Yes," complete Schedule L, Part I If "Yes," complete Schedule L, Part II If "Yes," complete Schedule L, Part III If "Yes," complete Schedule L, Part IV If "Yes," complete Schedule L, Part IV If "Yes," complete Schedule L, Part IV If "Yes," complete Schedule M If "Yes," complete Schedule M If "Yes," complete Schedule N, Part I If "Yes," complete Schedule N, Part II If "Yes," complete Schedule R, Part I If "Yes," complete Schedule R, Part II, III, or IV, and Part V, line 1 If "Yes," complete Schedule R, Part V, line 2 If "Yes," complete Schedule R, Part V, line 2 If "Yes," complete Schedule R, Part VI Form 990 (2022)Page Did the organization report more than $5,000 of grants or other assistance to or for domestic individuals on Part IX, column (A), line 2? ~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization answer "Yes" to Part VII, Section A, line 3, 4, or 5, about compensation of the organization's current and former officers, directors, trustees, key employees, and highest compensated employees? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than $100,000 as of the last day of the year, that was issued after December 31, 2002? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception? Did the organization maintain an escrow account other than a refunding escrow at any time during the year to defease any tax-exempt bonds? Did the organization act as an "on behalf of" issuer for bonds outstanding at any time during the year? ~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~ Did the organization engage in an excess benefit transaction with a disqualified person during the year? Is the organization aware that it engaged in an excess benefit transaction with a disqualified person in a prior year, and that the transaction has not been reported on any of the organization's prior Forms 990 or 990-EZ? ~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization report any amount on Part X, line 5 or 22, for receivables from or payables to any current or former officer, director, trustee, key employee, creator or founder, substantial contributor, or 35% controlled entity or family member of any of these persons?~~~~~~~~~~~~~ Did the organization provide a grant or other assistance to any current or former officer, director, trustee, key employee, creator or founder, substantial contributor or employee thereof, a grant selection committee member, or to a 35% controlled entity (including an employee thereof) or family member of any of these persons? ~~~ Was the organization a party to a business transaction with one of the following parties (see the Schedule L, Part IV, instructions for applicable filing thresholds, conditions, and exceptions): A current or former officer, director, trustee, key employee, creator or founder, or substantial contributor? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ A family member of any individual described in line 28a? A 35% controlled entity of one or more individuals and/or organizations described in line 28a or 28b? ~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization receive more than $25,000 in non-cash contributions? Did the organization receive contributions of art, historical treasures, or other similar assets, or qualified conservation contributions? ~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization liquidate, terminate, or dissolve and cease operations? Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets? ~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization own 100% of an entity disregarded as separate from the organization under Regulations sections 301.7701-2 and 301.7701-3? Was the organization related to any tax-exempt or taxable entity? ~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization have a controlled entity within the meaning of section 512(b)(13)? If "Yes" to line 35a, did the organization receive any payment from or engage in any transaction with a controlled entity within the meaning of section 512(b)(13)? ~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~ Did the organization make any transfers to an exempt non-charitable related organization? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization conduct more than 5% of its activities through an entity that is not a related organization and that is treated as a partnership for federal income tax purposes? ~~~~~~~~ Did the organization complete Schedule O and provide explanations on Schedule O for Part VI, lines 11b and 19? All Form 990 filers are required to complete Schedule O Check if Schedule O contains a response or note to any line in this Part V Enter the number reported in box 3 of Form 1096. Enter -0- if not applicable ~~~~~~~~~~~ Enter the number of Forms W-2G included on line 1a. Enter -0- if not applicable ~~~~~~~~~~ Did the organization comply with backup withholding rules for reportable payments to vendors and reportable gaming (gambling) winnings to prize winners? Form (2022) 4 Part IV Checklist of Required Schedules Part V Statements Regarding Other IRS Filings and Tax Compliance 990 DRAFT V V V V V V V V V V V V DESTIN?TION KEDIC?J CENTER CORPOR?TION 24+273715/ 0 . V V V V V V V V 3 /10/.7/6 /1/617 ?121216 0.00..2.0. DESTIN?TION KEDIC?J CENTE ?121216/ 53 232005 12-13-22 Yes No 2 3 4 5 6 7 a b 2a 2b 3a 3b 4a 5a 5b 5c 6a 6b 7a 7b 7c 7e 7f 7g 7h 8 9a 9b a b a b a b c a b Organizations that may receive deductible contributions under section 170(c). a b c d e f g h 7d 8 9 10 11 12 13 14 15 16 17 Sponsoring organizations maintaining donor advised funds. Sponsoring organizations maintaining donor advised funds. a b Section 501(c)(7) organizations. a b 10a 10b Section 501(c)(12) organizations. a b 11a 11b a b Section 4947(a)(1) non-exempt charitable trusts. 12a 12b Section 501(c)(29) qualified nonprofit health insurance issuers. Note: a b c a b 13a 13b 13c 14a 14b 15 16 17 Section 501(c)(21) organizations. ~~~~~~~~~~~~~~~~~~~ (continued) If "No" to line 3b, provide an explanation on Schedule O If "No," provide an explanation on Schedule O Did the organization receive a payment in excess of $75 made partly as a contribution and partly for goods and services provided to the payor? Form (2022) Form 990 (2022)Page Enter the number of employees reported on Form W-3, Transmittal of Wage and Tax Statements, filed for the calendar year ending with or within the year covered by this return ~~~~~~~~~~ If at least one is reported on line 2a, did the organization file all required federal employment tax returns?~~~~~~~~~~ Did the organization have unrelated business gross income of $1,000 or more during the year? If "Yes," has it filed a Form 990-T for this year? ~~~~~~~~~~~~~~ ~~~~~~~~~~ At any time during the calendar year, did the organization have an interest in, or a signature or other authority over, a financial account in a foreign country (such as a bank account, securities account, or other financial account)?~~~~~~~ If "Yes," enter the name of the foreign country See instructions for filing requirements for FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR). Was the organization a party to a prohibited tax shelter transaction at any time during the tax year? Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction? ~~~~~~~~~~~~ ~~~~~~~~~ If "Yes" to line 5a or 5b, did the organization file Form 8886-T?~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Does the organization have annual gross receipts that are normally greater than $100,000, and did the organization solicit any contributions that were not tax deductible as charitable contributions? If "Yes," did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible? ~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ If "Yes," did the organization notify the donor of the value of the goods or services provided? Did the organization sell, exchange, or otherwise dispose of tangible personal property for which it was required to file Form 8282? ~~~~~~~~~~~~~~~ If "Yes," indicate the number of Forms 8282 filed during the year Did the organization receive any funds, directly or indirectly, to pay premiums on a personal benefit contract? ~~~~~~~~~~~~~~~~ ~~~~~~~ ~~~~~~~~~Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract? If the organization received a contribution of qualified intellectual property, did the organization file Form 8899 as required? If the organization received a contribution of cars, boats, airplanes, or other vehicles, did the organization file a Form 1098-C? ~ Did a donor advised fund maintained by the sponsoring organization have excess business holdings at any time during the year?~~~~~~~~~~~~~~~~~~~ Did the sponsoring organization make any taxable distributions under section 4966? Did the sponsoring organization make a distribution to a donor, donor advisor, or related person? ~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~ Enter: Initiation fees and capital contributions included on Part VIII, line 12 Gross receipts, included on Form 990, Part VIII, line 12, for public use of club facilities ~~~~~~~~~~~~~~~ ~~~~~~ Enter: Gross income from members or shareholders Gross income from other sources. (Do not net amounts due or paid to other sources against amounts due or received from them.) ~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Is the organization filing Form 990 in lieu of Form 1041? If "Yes," enter the amount of tax-exempt interest received or accrued during the year Is the organization licensed to issue qualified health plans in more than one state? See the instructions for additional information the organization must report on Schedule O. ~~~~~~~~~~~~~~~~~~~~~ Enter the amount of reserves the organization is required to maintain by the states in which the organization is licensed to issue qualified health plans Enter the amount of reserves on hand ~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization receive any payments for indoor tanning services during the tax year? If "Yes," has it filed a Form 720 to report these payments? ~~~~~~~~~~~~~~~~ ~~~~~~~~~ Is the organization subject to the section 4960 tax on payment(s) of more than $1,000,000 in remuneration or excess parachute payment(s) during the year? If "Yes," see the instructions and file Form 4720, Schedule N. Is the organization an educational institution subject to the section 4968 excise tax on net investment income? If "Yes," complete Form 4720, Schedule O. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~ Did the trust, or any disqualified or other person engage in any activities that would result in the imposition of an excise tax under section 4951, 4952 or 4953? If "Yes," complete Form 6069. 5 Part V Statements Regarding Other IRS Filings and Tax Compliance 990 DRAFT V V V V V V V V V V V . DESTIN?TION KEDIC?J CENTER CORPOR?TION 24+273715/ V 4 /10/.7/6 /1/617 ?121216 0.00..2.0. DESTIN?TION KEDIC?J CENTE ?121216/ 54 232006 12-13-22 Yes No 1a 1b 1 2 3 4 5 6 7 8 9 a b 2 3 4 5 6 7a 7b 8a 8b 9 a b a b Yes No 10 11 a b 10a 10b 11a 12a 12b 12c 13 14 15a 15b 16a 16b a b 12a b c 13 14 15 a b 16a b 17 18 19 20 For each "Yes" response to lines 2 through 7b below, and for a "No" response to line 8a, 8b, or 10b below, describe the circumstances, processes, or changes on Schedule O. See instructions. If "Yes," provide the names and addresses on Schedule O (This Section B requests information about policies not required by the Internal Revenue Code.) If "No," go to line 13 If "Yes," describe on Schedule O how this was done (explain on Schedule O) If there are material differences in voting rights among members of the governing body, or if the governing body delegated broad authority to an executive committee or similar committee, explain on Schedule O. Did the organization contemporaneously document the meetings held or written actions undertaken during the year by the following: Were officers, directors, or trustees, and key employees required to disclose annually interests that could give rise to conflicts? Form (2022) Form 990 (2022)Page Check if Schedule O contains a response or note to any line in this Part VI Enter the number of voting members of the governing body at the end of the tax year Enter the number of voting members included on line 1a, above, who are independent ~~~~~~ ~~~~~~ Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other officer, director, trustee, or key employee?~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization delegate control over management duties customarily performed by or under the direct supervision of officers, directors, trustees, or key employees to a management company or other person?~~~~~~~~~~~~~~~ Did the organization make any significant changes to its governing documents since the prior Form 990 was filed? Did the organization become aware during the year of a significant diversion of the organization's assets? Did the organization have members or stockholders? ~~~~~ ~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization have members, stockholders, or other persons who had the power to elect or appoint one or more members of the governing body? Are any governance decisions of the organization reserved to (or subject to approval by) members, stockholders, or persons other than the governing body? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ The governing body? Each committee with authority to act on behalf of the governing body? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~ Is there any officer, director, trustee, or key employee listed in Part VII, Section A, who cannot be reached at the organization's mailing address? Did the organization have local chapters, branches, or affiliates? If "Yes," did the organization have written policies and procedures governing the activities of such chapters, affiliates, and branches to ensure their operations are consistent with the organization's exempt purposes? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~ Has the organization provided a complete copy of this Form 990 to all members of its governing body before filing the form? Describe on Schedule O the process, if any, used by the organization to review this Form 990. Did the organization have a written conflict of interest policy? ~~~~~~~~~~~~~~~~~~~~~ ~~~~~~ Did the organization regularly and consistently monitor and enforce compliance with the policy? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization have a written whistleblower policy? Did the organization have a written document retention and destruction policy? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~ Did the process for determining compensation of the following persons include a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision? The organization's CEO, Executive Director, or top management official Other officers or key employees of the organization If "Yes" to line 15a or 15b, describe the process on Schedule O. See instructions. ~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization invest in, contribute assets to, or participate in a joint venture or similar arrangement with a taxable entity during the year? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ If "Yes," did the organization follow a written policy or procedure requiring the organization to evaluate its participation in joint venture arrangements under applicable federal tax law, and take steps to safeguard the organization's exempt status with respect to such arrangements? List the states with which a copy of this Form 990 is required to be filed Section 6104 requires an organization to make its Forms 1023 (1024 or 1024-A, if applicable), 990, and 990-T (section 501(c)(3)s only) available for public inspection. Indicate how you made these available. Check all that apply. Own website Another's website Upon request Other Describe on Schedule O whether (and if so, how) the organization made its governing documents, conflict of interest policy, and financial statements available to the public during the tax year. State the name, address, and telephone number of the person who possesses the organization's books and records 6 Part VI Governance, Management, and Disclosure. Section A. Governing Body and Management Section B. Policies Section C. Disclosure 990 DRAFT 6 6 V V V V V V V V V V V V V V V V V V V V JOY H?RRIS + (3.5)106+063. 0./ 2TH STREET SE ROOK 0.2, ROCHESTER, KN 337.2 DESTIN?TION KEDIC?J CENTER CORPOR?TION 24+273715/ V KN V 5 /10/.7/6 /1/617 ?121216 0.00..2.0. DESTIN?TION KEDIC?J CENTE ?121216/ 55 In d i v i d u a l t r u s t e e o r d i r e c t o r In s t i t u t i o n a l t r u s t e e Of f i c e r Ke y e m p l o y e e Hi g h e s t c o m p e n s a t e d em p l o y e e Fo r m e r (do not check more than one box, unless person is both an officer and a director/trustee) 232007 12-13-22 current Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees 1a current current former former directors or trustees (A)(B)(C)(D)(E)(F) Form 990 (2022)Page Check if Schedule O contains a response or note to any line in this Part VII Complete this table for all persons required to be listed. Report compensation for the calendar year ending with or within the organization's tax year. ¥ List all of the organization's officers, directors, trustees (whether individuals or organizations), regardless of amount of compensation. Enter -0- in columns (D), (E), and (F) if no compensation was paid. ¥ List all of the organization's key employees, if any. See the instructions for definition of "key employee." ¥ List the organization's five highest compensated employees (other than an officer, director, trustee, or key employee) who received reportable compensation (box 5 of Form W-2, box 6 of Form 1099-MISC, and/or box 1 of Form 1099-NEC) of more than $100,000 from the organization and any related organizations. ¥ List all of the organization's officers, key employees, and highest compensated employees who received more than $100,000 ofreportable compensation from the organization and any related organizations. ¥ List all of the organization's that received, in the capacity as a former director or trustee of the organization, more than $10,000 of reportable compensation from the organization and any related organizations. See the instructions for the order in which to list the persons above. Check this box if neither the organization nor any related organization compensated any current officer, director, or trustee. PositionName and title Average hours per week (list any hours for related organizations below line) Reportable compensation from the organization (W-2/1099-MISC/ 1099-NEC) Reportable compensation from related organizations (W-2/1099-MISC/ 1099-NEC) Estimated amount of other compensation from the organization and related organizations Form (2022) 7 Part VII Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors 990 DPAFR V 3$0(/$ :+((/2(. (+$.5 ..0 125721 0$5. 7+(.1 3$8/ :.//.$06 -$0(6 ($03%(// 57 5<%$. )28, 0 %$.(5 %522.( ($5/621 9.(( (+$.5 75($685(5 6((5(7$5< ).5((725 ).5((725 ).5((725 ).5((725 6.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 V V V V V V V V V V V V 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. DESTINATION MEDICAL CENTER CORPORATION 46-4959371 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8 13210918 131839 A343438 2022.04020 DESTINATION MEDICAL CENTE A3434381 56 Fo r m e r In d i v i d u a l t r u s t e e o r d i r e c t o r In s t i t u t i o n a l t r u s t e e Of f i c e r Hi g h e s t c o m p e n s a t e d em p l o y e e Ke y e m p l o y e e (do not check more than one box, unless person is both an officer and a director/trustee) 232008 12-13-22 Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (B)(C)(A)(D)(E)(F) 1b c d Subtotal Total from continuation sheets to Part VII, Section A Total (add lines 1b and 1c) 2 Yes No 3 4 5 former 3 4 5 Section B. Independent Contractors 1 (A)(B)(C) 2 (continued) If "Yes," complete Schedule J for such individual If "Yes," complete Schedule J for such individual If "Yes," complete Schedule J for such person Page Form 990 (2022) PositionAverage hours per week (list any hours for related organizations below line) Name and title Reportable compensation from the organization (W-2/1099-MISC/ 1099-NEC) Reportable compensation from related organizations (W-2/1099-MISC/ 1099-NEC) Estimated amount of other compensation from the organization and related organizations ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~ ~ Total number of individuals (including but not limited to those listed above) who received more than $100,000 of reportable compensation from the organization Did the organization list any officer, director, trustee, key employee, or highest compensated employee on line 1a? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? ~~~~~~~~~~~~~ Did any person listed on line 1a receive or accrue compensation from any unrelated organization or individual for services rendered to the organization? Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization. Report compensation for the calendar year ending with or within the organization's tax year. Name and business address Description of services Compensation Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 of compensation from the organization Form (2022) 8 Part VII 990 DPAFR0.0.0. 0.0.0. 195 SOSTF BROADUAW, ROCFESTER, MN 55905 800 NICOLLET MALL, SSITE 2600, MINNEAPOLIS, 0 2 0.0.0. DESTINATION MEDICAL CENTER CORPORATION V V V 46-4959371 DESTINATION MEDICAL CNETER ECONOMIC DETELOP MCGRANN SFEA CARNITAL STRASGFN $ LAMB, CFTD PREPARATION DETELOPMENT PLAN LEGAL SERTICES 1,840,763. 106,351. 9 13210918 131839 A343438 2022.04020 DESTINATION MEDICAL CENTE A3434381 57 Noncash contributions included in lines 1a-1f 232009 12-13-22 Business Code Business Code Total revenue. (A)(B)(C)(D) 1 a b c d e f 1 1 1 1 1 1 1 a b c d e f ggCo n t r i b u t i o n s , G i f t s , G r a n t s an d O t h e r S i m i l a r A m o u n t s h Total. a b c d e f g 2 Pr o g r a m S e r v i c e Re v e n u e Total. 3 4 5 6 a b c d 6a 6b 6c 7 a 7a 7b 7c b c d a b c 8 8a 8b 9 a b c 9a 9b 10 a b c 10a 10b Ot h e r R e v e n u e 11 a b c d e Mi s c e l l a n e o u s Re v e n u e Total. 12 Revenue excluded from tax undersections 512 - 514 All other contributions, gifts, grants, and similar amounts not included above Gross amount from sales of assets other than inventory cost or other basis and sales expenses Gross income from fundraising events See instructions Form (2022) Page Form 990 (2022) Check if Schedule O contains a response or note to any line in this Part VIII Total revenue Related or exempt function revenue Unrelated business revenue Federated campaigns Membership dues ~~~~~ ~~~~~~~ Fundraising events Related organizations ~~~~~~~ ~~~~~ Government grants (contributions) ~ $ Add lines 1a-1f All other program service revenue ~~~~~ Add lines 2a-2f Investment income (including dividends, interest, and other similar amounts) Income from investment of tax-exempt bond proceeds ~~~~~~~~~~~~~~~~~~ Royalties (i) Real (ii) Personal Gross rents Less: rental expenses Rental income or (loss) Net rental income or (loss) ~~~~~ ~ (i) Securities (ii) Other Less: Gain or (loss) ~~~ ~~~~~ Net gain or (loss) (not including $of contributions reported on line 1c). See Part IV, line 18 ~~~~~~~~~~~~ Less: direct expenses ~~~~~~~~ Net income or (loss) from fundraising events Gross income from gaming activities. See Part IV, line 19 ~~~~~~~~~~~~ Less: direct expenses Net income or (loss) from gaming activities ~~~~~~~~ Gross sales of inventory, less returns and allowances ~~~~~~~~~~~~ Less: cost of goods sold Net income or (loss) from sales of inventory ~~~~~~~ All other revenue ~~~~~~~~~~~~~ Add lines 11a-11d 9 Part VIII Statement of Revenue 990 DRAFT 2,009,251. 2,009,251. 2,009,244.0.0. 11. BESRGNARGMN KEBGCAJ CENRER CMRPMRARGMN 24-2959171 11.11. 10 11210918 111819 A121218 2022.02020 BESRGNARGMN KEBGCAJ CENRE A1212181 58 if following SOP 98-2 (ASC 958-720) 232010 12-13-22 Total functional expenses. Joint costs. (A)(B)(C)(D) 1 2 3 4 5 6 7 8 9 10 11 a b c d e f g 12 13 14 15 16 17 18 19 20 21 22 23 24 a b c d e 25 26 Section 501(c)(3) and 501(c)(4) organizations must complete all columns. All other organizations must complete column (A). Grants and other assistance to domestic organizations and domestic governments. See Part IV, line 21 Compensation not included above to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) Professional fundraising services. See Part IV, line 17 (If line 11g amount exceeds 10% of line 25, column (A), amount, list line 11g expenses on Sch O.) Other expenses. Itemize expenses not covered above. (List miscellaneous expenses on line 24e. Ifline 24e amount exceeds 10% of line 25, column (A),amount, list line 24e expenses on Schedule O.) Add lines 1 through 24e Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation. Check here Form 990 (2022)Page Check if Schedule O contains a response or note to any line in this Part IX Total expenses Program service expenses Management andgeneral expenses Fundraisingexpenses ~ Grants and other assistance to domestic individuals. See Part IV, line 22 ~~~~~~~ Grants and other assistance to foreign organizations, foreign governments, and foreign individuals. See Part IV, lines 15 and 16 ~~~ Benefits paid to or for members ~~~~~~~ Compensation of current officers, directors, trustees, and key employees ~~~~~~~~ ~~~ Other salaries and wages ~~~~~~~~~~ Other employee benefits ~~~~~~~~~~ Payroll taxes ~~~~~~~~~~~~~~~~ Fees for services (nonemployees): Management Legal Accounting Lobbying ~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~ Investment management fees Other. ~~~~~~~~ Advertising and promotion Office expenses Information technology Royalties ~~~~~~~~~ ~~~~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~ Occupancy ~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~Travel Payments of travel or entertainment expenses for any federal, state, or local public officials ~ Conferences, conventions, and meetings ~~ Interest Payments to affiliates ~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~ Depreciation, depletion, and amortization Insurance ~~ ~~~~~~~~~~~~~~~~~ All other expenses Form (2022) Do not include amounts reported on lines 6b, 7b, 8b, 9b, and 10b of Part VIII. 10 Statement of Functional ExpensesPart IX 990 DRAFT/.5,13/. 3,653. 0,415. 00,751. 27/. 1,.07. /1,/06. /,631,560. 0,..7,044. /.5,13/. 3,653. 0,415. 00,751. 27/. 1,.07. /1,/06. /,631,560. /,634,6//. /30,233... PROER?K COSTS DESTIN?TION KEDIC?J CENTER CORPOR?TION 24+273715/ // /10/.7/6 /1/617 ?121216 0.00..2.0. DESTIN?TION KEDIC?J CENTE ?121216/ 59 232011 12-13-22 (A)(B) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 1 2 3 4 5 6 7 8 9 10c 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 a b 10a 10b As s e t s Total assets. Li a b i l i t i e s Total liabilities. Organizations that follow FASB ASC 958, check here and complete lines 27, 28, 32, and 33. 27 28 Organizations that do not follow FASB ASC 958, check here and complete lines 29 through 33. 29 30 31 32 33 Ne t A s s e t s o r F u n d B a l a n c e s Form 990 (2022)Page Check if Schedule O contains a response or note to any line in this Part X Beginning of year End of year Cash - non-interest-bearing Savings and temporary cash investments Pledges and grants receivable, net ~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~ Accounts receivable, net ~~~~~~~~~~~~~~~~~~~~~~~~~~ Loans and other receivables from any current or former officer, director, trustee, key employee, creator or founder, substantial contributor, or 35% controlled entity or family member of any of these persons ~~~~~~~~~ Loans and other receivables from other disqualified persons (as defined under section 4958(f)(1)), and persons described in section 4958(c)(3)(B)~~ Notes and loans receivable, net Inventories for sale or use Prepaid expenses and deferred charges ~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~ Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D Less: accumulated depreciation ~~~ ~~~~~~ Investments - publicly traded securities Investments - other securities. See Part IV, line 11 Investments - program-related. See Part IV, line 11 Intangible assets ~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Other assets. See Part IV, line 11 ~~~~~~~~~~~~~~~~~~~~~~ Add lines 1 through 15 (must equal line 33) Accounts payable and accrued expenses Grants payable Deferred revenue ~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Tax-exempt bond liabilities Escrow or custodial account liability. Complete Part IV of Schedule D ~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~ Loans and other payables to any current or former officer, director, trustee, key employee, creator or founder, substantial contributor, or 35% controlled entity or family member of any of these persons ~~~~~~~~~ Secured mortgages and notes payable to unrelated third parties ~~~~~~ Unsecured notes and loans payable to unrelated third parties ~~~~~~~~ Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Add lines 17 through 25 Net assets without donor restrictions Net assets with donor restrictions ~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~ Capital stock or trust principal, or current funds Paid-in or capital surplus, or land, building, or equipment fund Retained earnings, endowment, accumulated income, or other funds ~~~~~~~~~~~~~~~ ~~~~~~~~ ~~~~ Total net assets or fund balances ~~~~~~~~~~~~~~~~~~~~~~ Total liabilities and net assets/fund balances Form (2022) 11 Balance SheetPart X 990 DRAFT 56,715.4/,1.5. 075,366.046,27.. 157,616.11/,756. 1,1/1.0,/6/. 002,7././47,45/. 56,715.4/,1.5. 54,...././,.... 157,616.11/,756. V .... 157,616.11/,756. 24+273715/DESTIN?TION KEDIC?J CENTER CORPOR?TION /0 /10/.7/6 /1/617 ?121216 0.00..2.0. DESTIN?TION KEDIC?J CENTE ?121216/ 60 232012 12-13-22 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 Yes No 1 2 3 a b c 2a 2b 2c a b 3a 3b Form 990 (2022)Page Check if Schedule O contains a response or note to any line in this Part XI Total revenue (must equal Part VIII, column (A), line 12) Total expenses (must equal Part IX, column (A), line 25) Revenue less expenses. Subtract line 2 from line 1 Net assets or fund balances at beginning of year (must equal Part X, line 32, column (A)) ~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~ Net unrealized gains (losses) on investments Donated services and use of facilities Investment expenses Prior period adjustments ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Other changes in net assets or fund balances (explain on Schedule O) Net assets or fund balances at end of year. Combine lines 3 through 9 (must equal Part X, line 32, column (B)) ~~~~~~~~~~~~~~~~~~ Check if Schedule O contains a response or note to any line in this Part XII Accounting method used to prepare the Form 990: Cash Accrual Other If the organization changed its method of accounting from a prior year or checked "Other," explain on Schedule O. Were the organization's financial statements compiled or reviewed by an independent accountant?~~~~~~~~~~~~ If "Yes," check a box below to indicate whether the financial statements for the year were compiled or reviewed on a separate basis, consolidated basis, or both: Separate basis Consolidated basis Both consolidated and separate basis Were the organization's financial statements audited by an independent accountant?~~~~~~~~~~~~~~~~~~~ If "Yes," check a box below to indicate whether the financial statements for the year were audited on a separate basis, consolidated basis, or both: Separate basis Consolidated basis Both consolidated and separate basis If "Yes" to line 2a or 2b, does the organization have a committee that assumes responsibility for oversight of the audit, review, or compilation of its financial statements and selection of an independent accountant?~~~~~~~~~~~~~~~ If the organization changed either its oversight process or selection process during the tax year, explain on Schedule O. As a result of a federal award, was the organization required to undergo an audit or audits as set forth in the Uniform Guidance, 2 C.F.R. Part 200, Subpart F? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ If "Yes," did the organization undergo the required audit or audits? If the organization did not undergo the required audit or audits, explain why on Schedule O and describe any steps taken to undergo such audits Form (2022) 12 Part XI Reconciliation of Net Assets Part XII Financial Statements and Reporting 990 DRAFTV DESTIN?TION KEDIC?J CENTER CORPOR?TION 24+273715/ 0,..7,044. 0,..7,044. .. .. .. .. V V V V V V /1 /10/.7/6 /1/617 ?121216 0.00..2.0. DESTIN?TION KEDIC?J CENTE ?121216/ 61 (iv) Is the organization listedin your governing document? OMB No. 1545-0047 Department of the Treasury Internal Revenue Service 232021 12-09-22 (i)(iii)(v)(vi)(ii) Name of supported organization Type of organization (described on lines 1-10 above (see instructions)) Amount of monetary support (see instructions) Amount of other support (see instructions) EIN (Form 990)Complete if the organization is a section 501(c)(3) organization or a section 4947(a)(1) nonexempt charitable trust. Attach to Form 990 or Form 990-EZ. Go to www.irs.gov/Form990 for instructions and the latest information. Open to Public Inspection Name of the organization Employer identification number 1 2 3 4 5 6 7 8 9 10 11 12 section 170(b)(1)(A)(i). section 170(b)(1)(A)(ii). section 170(b)(1)(A)(iii). section 170(b)(1)(A)(iii). section 170(b)(1)(A)(iv). section 170(b)(1)(A)(v). section 170(b)(1)(A)(vi). section 170(b)(1)(A)(vi). section 170(b)(1)(A)(ix) section 509(a)(2). section 509(a)(4). section 509(a)(1) section 509(a)(2) section 509(a)(3). a b c d e f g Type I. You must complete Part IV, Sections A and B. Type II. You must complete Part IV, Sections A and C. Type III functionally integrated. You must complete Part IV, Sections A, D, and E. Type III non-functionally integrated. You must complete Part IV, Sections A and D, and Part V. Yes No Total For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.Schedule A (Form 990) 2022 (All organizations must complete this part.) See instructions. The organization is not a private foundation because it is: (For lines 1 through 12, check only one box.) A church, convention of churches, or association of churches described in A school described in (Attach Schedule E (Form 990).) A hospital or a cooperative hospital service organization described in A medical research organization operated in conjunction with a hospital described in Enter the hospital's name, city, and state: An organization operated for the benefit of a college or university owned or operated by a governmental unit described in (Complete Part II.) A federal, state, or local government or governmental unit described in An organization that normally receives a substantial part of its support from a governmental unit or from the general public described in (Complete Part II.) A community trust described in (Complete Part II.) An agricultural research organization described in operated in conjunction with a land-grant college or university or a non-land-grant college of agriculture (see instructions). Enter the name, city, and state of the college or university: An organization that normally receives (1) more than 33 1/3% of its support from contributions, membership fees, and gross receipts from activities related to its exempt functions, subject to certain exceptions; and (2) no more than 33 1/3% of its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses acquired by the organization after June 30, 1975. See (Complete Part III.) An organization organized and operated exclusively to test for public safety. See An organization organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the purposes of one or more publicly supported organizations described in or . See Check the box on lines 12a through 12d that describes the type of supporting organization and complete lines 12e, 12f, and 12g. A supporting organization operated, supervised, or controlled by its supported organization(s), typically by giving the supported organization(s) the power to regularly appoint or elect a majority of the directors or trustees of the supporting organization. A supporting organization supervised or controlled in connection with its supported organization(s), by having control or management of the supporting organization vested in the same persons that control or manage the supported organization(s). A supporting organization operated in connection with, and functionally integrated with, its supported organization(s) (see instructions). A supporting organization operated in connection with its supported organization(s) that is not functionally integrated. The organization generally must satisfy a distribution requirement and an attentiveness requirement (see instructions). Check this box if the organization received a written determination from the IRS that it is a Type I, Type II, Type III functionally integrated, or Type III non-functionally integrated supporting organization. Enter the number of supported organizations ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Provide the following information about the supported organization(s). LHA SCHEDULE A Part I Reason for Public Charity Status. Public Charity Status and Public Support 2022 DPAFR V 46-4959371DESTINATION MEDICAL CENTER CORPORATION 62 Subtract line 5 from line 4. 232022 12-09-22 Calendar year (or fiscal year beginning in) Calendar year (or fiscal year beginning in) 2 (a) (b) (c) (d) (e) (f) 1 2 3 4 5 Total. 6 Public support. (a) (b) (c) (d) (e) (f) 7 8 9 10 11 12 13 Total support. 12 First 5 years. stop here 14 15 14 15 16 17 18 a b a b 33 1/3% support test - 2022. stop here. 33 1/3% support test - 2021. stop here. 10% -facts-and-circumstances test - 2022. stop here. 10% -facts-and-circumstances test - 2021. stop here. Private foundation. Schedule A (Form 990) 2022 Add lines 7 through 10 Schedule A (Form 990) 2022 Page (Complete only if you checked the box on line 5, 7, or 8 of Part I or if the organization failed to qualify under Part III. If the organization fails to qualify under the tests listed below, please complete Part III.) 2018 2019 2020 2021 2022 Total Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.")~~ Tax revenues levied for the organ- ization's benefit and either paid to or expended on its behalf ~~~~ The value of services or facilities furnished by a governmental unit to the organization without charge ~ Add lines 1 through 3 ~~~ The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included on line 1 that exceeds 2% of the amount shown on line 11, column (f)~~~~~~~~~~~~ 2018 2019 2020 2021 2022 Total Amounts from line 4 ~~~~~~~ Gross income from interest, dividends, payments received on securities loans, rents, royalties, and income from similar sources ~ Net income from unrelated business activities, whether or not the business is regularly carried on ~ Other income. Do not include gain or loss from the sale of capital assets (Explain in Part VI.) ~~~~ Gross receipts from related activities, etc. (see instructions) ~~~~~~~~~~~~~~~~~~~~~~~ If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a section 501(c)(3) organization, check this box and ~~~~~~~~~~~Public support percentage for 2022 (line 6, column (f), divided by line 11, column (f)) Public support percentage from 2021 Schedule A, Part II, line 14 % %~~~~~~~~~~~~~~~~~~~~~ If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this box and The organization qualifies as a publicly supported organization ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ If the organization did not check a box on line 13 or 16a, and line 15 is 33 1/3% or more, check this box and The organization qualifies as a publicly supported organization ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ If the organization did not check a box on line 13, 16a, or 16b, and line 14 is 10% or more, and if the organization meets the facts-and-circumstances test, check this box and Explain in Part VI how the organization meets the facts-and-circumstances test. The organization qualifies as a publicly supported organization ~~~~~~~~~~~~~~~~~ If the organization did not check a box on line 13, 16a, 16b, or 17a, and line 15 is 10% or more, and if the organization meets the facts-and-circumstances test, check this box and Explain in Part VI how the organization meets the facts-and-circumstances test. The organization qualifies as a publicly supported organization ~~~~~~~~~~~ If the organization did not check a box on line 13, 16a, 16b, 17a, or 17b, check this box and see instructions Part II Support Schedule for Organizations Described in Sections 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi) Section A. Public Support Section B. Total Support Section C. Computation of Public Support Percentage DRAFT 036/433. 036/433. 05..501. 05..501. 0127455. 0.31350. 0..7031.//47266.. 0127455. 0.31350. 0..7031.//47266.. //47266.. 036/433. 05..501. 0127455. 0.31350. 0..7031.//47266.. /2. /2./1. 2/. //47270/. /..... /..... V DESTIN?TION KEDIC?J CENTER CORPOR?TION 24+273715/ /3 /10/.7/6 /1/617 ?121216 0.00..2.0. DESTIN?TION KEDIC?J CENTE ?121216/ 63 (Subtract line 7c from line 6.) Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year (Add lines 9, 10c, 11, and 12.) 232023 12-09-22 Calendar year (or fiscal year beginning in) Calendar year (or fiscal year beginning in) Total support. 3 (a) (b) (c) (d) (e) (f) 1 2 3 4 5 6 7 Total. a b c 8 Public support. (a) (b) (c) (d) (e) (f) 9 10a b c 11 12 13 14 First 5 years. stop here 15 16 15 16 17 18 19 20 2022 2021 17 18 a b 33 1/3% support tests - 2022. stop here. 33 1/3% support tests - 2021. stop here. Private foundation. Schedule A (Form 990) 2022 Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975 Schedule A (Form 990) 2022 Page (Complete only if you checked the box on line 10 of Part I or if the organization failed to qualify under Part II. If the organization fails to qualify under the tests listed below, please complete Part II.) 2018 2019 2020 2021 2022 Total Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.")~~ Gross receipts from admissions, merchandise sold or services per- formed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose Gross receipts from activities that are not an unrelated trade or bus- iness under section 513 ~~~~~ Tax revenues levied for the organ- ization's benefit and either paid to or expended on its behalf ~~~~ The value of services or facilities furnished by a governmental unit to the organization without charge ~ ~~~ Add lines 1 through 5 Amounts included on lines 1, 2, and 3 received from disqualified persons ~~~~~~ Add lines 7a and 7b ~~~~~~~ 2018 2019 2020 2021 2022 Total Amounts from line 6 ~~~~~~~ Gross income from interest, dividends, payments received on securities loans, rents, royalties, and income from similar sources ~ ~~~~ Add lines 10a and 10b ~~~~~~ Net income from unrelated businessactivities not included on line 10b, whether or not the business is regularly carried on ~~~~~~~ Other income. Do not include gainor loss from the sale of capital assets (Explain in Part VI.)~~~~ If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a section 501(c)(3) organization, check this box and Public support percentage for 2022 (line 8, column (f), divided by line 13, column (f)) Public support percentage from 2021 Schedule A, Part III, line 15 ~~~~~~~~~~~% % Investment income percentage for (line 10c, column (f), divided by line 13, column (f)) Investment income percentage from Schedule A, Part III, line 17 ~~~~~~~~% %~~~~~~~~~~~~~~~~~~ If the organization did not check the box on line 14, and line 15 is more than 33 1/3%, and line 17 is not more than 33 1/3%, check this box and The organization qualifies as a publicly supported organization ~~~~~~~~~~~~ If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33 1/3%, and line 18 is not more than 33 1/3%, check this box and The organization qualifies as a publicly supported organization ~~~~~~ If the organization did not check a box on line 14, 19a, or 19b, check this box and see instructions Part III Support Schedule for Organizations Described in Section 509(a)(2) Section A. Public Support Section B. Total Support Section C. Computation of Public Support Percentage Section D. Computation of Investment Income Percentage DPAFR DESTINATION MEDICAL CENTER CORPORATION 46-4959371 16 13210918 131839 A343438 2022.04020 DESTINATION MEDICAL CENTE A3434381 64 232024 12-09-22 4 Yes No 1 2 3 4 5 6 7 8 9 10 Part VI 1 2 3a 3b 3c 4a 4b 4c 5a 5b 5c 6 7 8 9a 9b 9c 10a 10b Part VI a b c a b c a b c a b c a b Part VI Part VI Part VI Part VI Part VI, Type I or Type II only. Substitutions only. Part VI. Part VI. Part VI. Part VI. Schedule A (Form 990) 2022 If "No," describe in how the supported organizations are designated. If designated by class or purpose, describe the designation. If historic and continuing relationship, explain. If "Yes," explain in how the organization determined that the supported organization was described in section 509(a)(1) or (2). If "Yes," answer lines 3b and 3c below. If "Yes," describe in when and how the organization made the determination. If "Yes," explain in what controls the organization put in place to ensure such use. If "Yes," and if you checked box 12a or 12b in Part I, answer lines 4b and 4c below. If "Yes," describe in how the organization had such control and discretion despite being controlled or supervised by or in connection with its supported organizations. If "Yes," explain in what controls the organization used to ensure that all support to the foreign supported organization was used exclusively for section 170(c)(2)(B) purposes. If "Yes," answer lines 5b and 5c below (if applicable). Also, provide detail in including (i) the names and EIN numbers of the supported organizations added, substituted, or removed; (ii) the reasons for each such action; (iii) the authority under the organization's organizing document authorizing such action; and (iv) how the action was accomplished (such as by amendment to the organizing document). If "Yes," provide detail in If "Yes," complete Part I of Schedule L (Form 990). If "Yes," complete Part I of Schedule L (Form 990). If "Yes," provide detail in If "Yes," provide detail in If "Yes," provide detail in If "Yes," answer line 10b below. (Use Schedule C, Form 4720, to determine whether the organization had excess business holdings.) Schedule A (Form 990) 2022 Page (Complete only if you checked a box on line 12 of Part I. If you checked box 12a, Part I, complete Sections A and B. If you checked box 12b, Part I, complete Sections A and C. If you checked box 12c, Part I, complete Sections A, D, and E. If you checked box 12d, Part I, complete Sections A and D, and complete Part V.) Are all of the organization's supported organizations listed by name in the organization's governing documents? Did the organization have any supported organization that does not have an IRS determination of status under section 509(a)(1) or (2)? Did the organization have a supported organization described in section 501(c)(4), (5), or (6)? Did the organization confirm that each supported organization qualified under section 501(c)(4), (5), or (6) and satisfied the public support tests under section 509(a)(2)? Did the organization ensure that all support to such organizations was used exclusively for section 170(c)(2)(B) purposes? Was any supported organization not organized in the United States ("foreign supported organization")? Did the organization have ultimate control and discretion in deciding whether to make grants to the foreign supported organization? Did the organization support any foreign supported organization that does not have an IRS determination under sections 501(c)(3) and 509(a)(1) or (2)? Did the organization add, substitute, or remove any supported organizations during the tax year? Was any added or substituted supported organization part of a class already designated in the organization's organizing document? Was the substitution the result of an event beyond the organization's control? Did the organization provide support (whether in the form of grants or the provision of services or facilities) to anyone other than (i) its supported organizations, (ii) individuals that are part of the charitable class benefited by one or more of its supported organizations, or (iii) other supporting organizations that also support or benefit one or more of the filing organization's supported organizations? Did the organization provide a grant, loan, compensation, or other similar payment to a substantial contributor (as defined in section 4958(c)(3)(C)), a family member of a substantial contributor, or a 35% controlled entity with regard to a substantial contributor? Did the organization make a loan to a disqualified person (as defined in section 4958) not described on line 7? Was the organization controlled directly or indirectly at any time during the tax year by one or more disqualified persons, as defined in section 4946 (other than foundation managers and organizations described in section 509(a)(1) or (2))? Did one or more disqualified persons (as defined on line 9a) hold a controlling interest in any entity in which the supporting organization had an interest? Did a disqualified person (as defined on line 9a) have an ownership interest in, or derive any personal benefit from, assets in which the supporting organization also had an interest? Was the organization subject to the excess business holdings rules of section 4943 because of section 4943(f) (regarding certain Type II supporting organizations, and all Type III non-functionally integrated supporting organizations)? Did the organization have any excess business holdings in the tax year? Part IV Supporting Organizations Section A. All Supporting Organizations DRAFT DESTINATION MEDICAL CENTER CORPORATION 46-4959371 17 13210918 131839 A343438 2022.04020 DESTINATION MEDICAL CENTE A3434381 65 232025 12-09-22 5 Yes No 11 a b c 11a 11b 11cPart VI. Yes No 1 2 Part VI 1 2 Part VI Yes No 1 Part VI 1 Yes No 1 2 3 1 2 3 Part VI Part VI 1 2 3 (see instructions). a b c line 2 line 3 Part VI Answer lines 2a and 2b below.Yes No a b a b Part VI identify those supported organizations and explain 2a 2b 3a 3b Part VI Answer lines 3a and 3b below. Part VI. Part VI Schedule A (Form 990) 2022 If "Yes" to line 11a, 11b, or 11c, provide detail in If "No," describe in how the supported organization(s) effectively operated, supervised, or controlled the organization's activities. If the organization had more than one supported organization, describe how the powers to appoint and/or remove officers, directors, or trustees were allocated among the supported organizations and what conditions or restrictions, if any, applied to such powers during the tax year. If "Yes," explain in how providing such benefit carried out the purposes of the supported organization(s) that operated, supervised, or controlled the supporting organization. If "No," describe in how control or management of the supporting organization was vested in the same persons that controlled or managed the supported organization(s). If "No," explain in how the organization maintained a close and continuous working relationship with the supported organization(s). If "Yes," describe in the role the organization's supported organizations played in this regard. Check the box next to the method that the organization used to satisfy the Integral Part Test during the year Complete below. Complete below. Describe in how you supported a governmental entity (see instructions). If "Yes," then in how these activities directly furthered their exempt purposes, how the organization was responsive to those supported organizations, and how the organization determined that these activities constituted substantially all of its activities. If "Yes," explain in the reasons for the organization's position that its supported organization(s) would have engaged in these activities but for the organization's involvement. If "Yes" or "No" provide details in If "Yes," describe in the role played by the organization in this regard. Schedule A (Form 990) 2022 Page Has the organization accepted a gift or contribution from any of the following persons? A person who directly or indirectly controls, either alone or together with persons described on lines 11b and 11c below, the governing body of a supported organization? A family member of a person described on line 11a above? A 35% controlled entity of a person described on line 11a or 11b above? Did the governing body, members of the governing body, officers acting in their official capacity, or membership of one or more supported organizations have the power to regularly appoint or elect at least a majority of the organization's officers, directors, or trustees at all times during the tax year? Did the organization operate for the benefit of any supported organization other than the supported organization(s) that operated, supervised, or controlled the supporting organization? Were a majority of the organization's directors or trustees during the tax year also a majority of the directors or trustees of each of the organization's supported organization(s)? Did the organization provide to each of its supported organizations, by the last day of the fifth month of the organization's tax year, (i) a written notice describing the type and amount of support provided during the prior tax year, (ii) a copy of the Form 990 that was most recently filed as of the date of notification, and (iii) copies of the organization's governing documents in effect on the date of notification, to the extent not previously provided? Were any of the organization's officers, directors, or trustees either (i) appointed or elected by the supported organization(s) or (ii) serving on the governing body of a supported organization? By reason of the relationship described on line 2, above, did the organization's supported organizations have a significant voice in the organization's investment policies and in directing the use of the organization's income or assets at all times during the tax year? The organization satisfied the Activities Test. The organization is the parent of each of its supported organizations. The organization supported a governmental entity. Activities Test. Did substantially all of the organization's activities during the tax year directly further the exempt purposes of the supported organization(s) to which the organization was responsive? Did the activities described on line 2a, above, constitute activities that, but for the organization's involvement, one or more of the organization's supported organization(s) would have been engaged in? Parent of Supported Organizations. Did the organization have the power to regularly appoint or elect a majority of the officers, directors, or trustees of each of the supported organizations? Did the organization exercise a substantial degree of direction over the policies, programs, and activities of each of its supported organizations? (continued)Part IV Supporting Organizations Section B. Type I Supporting Organizations Section C. Type II Supporting Organizations Section D. All Type III Supporting Organizations Section E. Type III Functionally Integrated Supporting Organizations DRAFT DESTINATION MEDICAL CENTER CORPORATION 46-4959371 18 13210918 131839 A343438 2022.04020 DESTINATION MEDICAL CENTE A3434381 66 232026 12-09-22 6 1 Part VI See instructions. Section A - Adjusted Net Income 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8Adjusted Net Income Section B - Minimum Asset Amount 1 2 3 4 5 6 7 8 a b c d e 1a 1b 1c 1d 2 3 4 5 6 7 8 Total Discount Part VI Minimum Asset Amount Section C - Distributable Amount 1 2 3 4 5 6 7 1 2 3 4 5 6 Distributable Amount. Schedule A (Form 990) 2022 explain in explain in detail in Schedule A (Form 990) 2022 Page Check here if the organization satisfied the Integral Part Test as a qualifying trust on Nov. 20, 1970 (). All other Type III non-functionally integrated supporting organizations must complete Sections A through E. (B) Current Year (optional)(A) Prior Year Net short-term capital gain Recoveries of prior-year distributions Other gross income (see instructions) Add lines 1 through 3. Depreciation and depletion Portion of operating expenses paid or incurred for production or collection of gross income or for management, conservation, or maintenance of property held for production of income (see instructions) Other expenses (see instructions) (subtract lines 5, 6, and 7 from line 4) (B) Current Year (optional)(A) Prior Year Aggregate fair market value of all non-exempt-use assets (see instructions for short tax year or assets held for part of year): Average monthly value of securities Average monthly cash balances Fair market value of other non-exempt-use assets (add lines 1a, 1b, and 1c) claimed for blockage or other factors ( ): Acquisition indebtedness applicable to non-exempt-use assets Subtract line 2 from line 1d. Cash deemed held for exempt use. Enter 0.015 of line 3 (for greater amount, see instructions). Net value of non-exempt-use assets (subtract line 4 from line 3) Multiply line 5 by 0.035. Recoveries of prior-year distributions (add line 7 to line 6) Current Year Adjusted net income for prior year (from Section A, line 8, column A) Enter 0.85 of line 1. Minimum asset amount for prior year (from Section B, line 8, column A) Enter greater of line 2 or line 3. Income tax imposed in prior year Subtract line 5 from line 4, unless subject to emergency temporary reduction (see instructions). Check here if the current year is the organization's first as a non-functionally integrated Type III supporting organization (see instructions). Part V Type III Non-Functionally Integrated 509(a)(3) Supporting Organizations DRAFT DESTINATION MEDICAL CENTER CORPORATION 46-4959371 19 13210918 131839 A343438 2022.04020 DESTINATION MEDICAL CENTE A3434381 67 232027 12-09-22 7 Section D - Distributions Current Year 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 Part VI Part VI Total annual distributions. Part VI (i) Excess Distributions (ii) Underdistributions Pre-2022 (iii) Distributable Amount for 2022Section E - Distribution Allocations 1 2 3 4 5 6 7 8 Part VI a b c d e f g h i j Total a b c Part VI. Part VI Excess distributions carryover to 2023. a b c d e Schedule A (Form 990) 2022 provide details in describe in provide details in explain in explain in explain in Schedule A (Form 990) 2022 Page Amounts paid to supported organizations to accomplish exempt purposes Amounts paid to perform activity that directly furthers exempt purposes of supported organizations, in excess of income from activity Administrative expenses paid to accomplish exempt purposes of supported organizations Amounts paid to acquire exempt-use assets Qualified set-aside amounts (prior IRS approval required - ) Other distributions ( ). See instructions. Add lines 1 through 6. Distributions to attentive supported organizations to which the organization is responsive ( ). See instructions. Distributable amount for 2022 from Section C, line 6 Line 8 amount divided by line 9 amount (see instructions) Distributable amount for 2022 from Section C, line 6 Underdistributions, if any, for years prior to 2022 (reason- able cause required - ). See instructions. Excess distributions carryover, if any, to 2022 From 2017 From 2018 From 2019 From 2020 From 2021 of lines 3a through 3e Applied to underdistributions of prior years Applied to 2022 distributable amount Carryover from 2017 not applied (see instructions) Remainder. Subtract lines 3g, 3h, and 3i from line 3f. Distributions for 2022 from Section D, line 7:$ Applied to underdistributions of prior years Applied to 2022 distributable amount Remainder. Subtract lines 4a and 4b from line 4. Remaining underdistributions for years prior to 2022, if any. Subtract lines 3g and 4a from line 2. For result greater than zero, See instructions. Remaining underdistributions for 2022. Subtract lines 3h and 4b from line 1. For result greater than zero, . See instructions. Add lines 3j and 4c. Breakdown of line 7: Excess from 2018 Excess from 2019 Excess from 2020 Excess from 2021 Excess from 2022 (continued) Part V Type III Non-Functionally Integrated 509(a)(3) Supporting Organizations DRAFT DESTINATION MEDICAL CENTER CORPORATION 46-4959371 20 13210918 131839 A343438 2022.04020 DESTINATION MEDICAL CENTE A3434381 68 232028 12-09-22 8 Schedule A (Form 990) 2022 Schedule A (Form 990) 2022 Page Provide the explanations required by Part II, line 10; Part II, line 17a or 17b; Part III, line 12; Part IV, Section A, lines 1, 2, 3b, 3c, 4b, 4c, 5a, 6, 9a, 9b, 9c, 11a, 11b, and 11c; Part IV, Section B, lines 1 and 2; Part IV, Section C, line 1; Part IV, Section D, lines 2 and 3; Part IV, Section E, lines 1c, 2a, 2b, 3a, and 3b; Part V, line 1; Part V, Section B, line 1e; Part V, Section D, lines 5, 6, and 8; and Part V, Section E, lines 2, 5, and 6. Also complete this part for any additional information. (See instructions.) Part VI Supplemental Information. DRAFT DESTINATION MEDICAL CENTER CORPORATION 46-4959371 21 13210918 131839 A343438 2022.04020 DESTINATION MEDICAL CENTE A3434381 69 Department of the Treasury Internal Revenue Service 223451 11-15-22 For Paperwork Reduction Act Notice, see the instructions for Form 990, 990-EZ, or 990-PF.Schedule B (Form 990) (2022) OMB No. 1545-0047 (Form 990)Attach to Form 990 or Form 990-PF. Go to www.irs.gov/Form990 for the latest information. Employer identification number Organization type Filers of:Section: not General Rule Special Rule. Note: General Rule Special Rules (1) (2) General Rule Caution: must exclusively exclusively nonexclusively Name of the organization (check one): Form 990 or 990-EZ 501(c)( ) (enter number) organization 4947(a)(1) nonexempt charitable trust treated as a private foundation 527 political organization Form 990-PF 501(c)(3) exempt private foundation 4947(a)(1) nonexempt charitable trust treated as a private foundation 501(c)(3) taxable private foundation Check if your organization is covered by the or a Only a section 501(c)(7), (8), or (10) organization can check boxes for both the General Rule and a Special Rule. See instructions. For an organization filing Form 990, 990-EZ, or 990-PF that received, during the year, contributions totaling $5,000 or more (in money or property) from any one contributor. Complete Parts I and II. See instructions for determining a contributor's total contributions. For an organization described in section 501(c)(3) filing Form 990 or 990-EZ that met the 33 1/3% support test of the regulations under sections 509(a)(1) and 170(b)(1)(A)(vi), that checked Schedule A (Form 990), Part II, line 13, 16a, or 16b, and that received from any one contributor, during the year, total contributions of the greater of $5,000; or 2% of the amount on (i) Form 990, Part VIII, line 1h; or (ii) Form 990-EZ, line 1. Complete Parts I and II. For an organization described in section 501(c)(7), (8), or (10) filing Form 990 or 990-EZ that received from any one contributor, during the year, total contributions of more than $1,000 exclusively for religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals. Complete Parts I (entering "N/A" in column (b) instead of the contributor name and address), II, and III. For an organization described in section 501(c)(7), (8), or (10) filing Form 990 or 990-EZ that received from any one contributor, during the year, contributions for religious, charitable, etc., purposes, but no such contributions totaled more than $1,000. If this box is checked, enter here the total contributions that were received during the year for an religious, charitable, etc., purpose. Don't complete any of the parts unless the applies to this organization because it received religious, charitable, etc., contributions totaling $5,000 or more during the year ~~~~~~~~~~~~~~~~~ $ An organization that isn't covered by the General Rule and/or the Special Rules doesn't file Schedule B (Form 990), but it answer "No" on Part IV, line 2, of its Form 990; or check the box on line H of its Form 990-EZ or on its Form 990-PF, Part I, line 2, to certify that it doesn't meet the filing requirements of Schedule B (Form 990). LHA Schedule B Schedule of Contributors 2022 DRAFT BESRGNARGMN KEBGCAJ CENRER CMRPMRARGMN 24-2959171 V 1 V 70 223452 11-15-22 Schedule B (Form 990) (2022) Employer identification number (a) No. (b) Name, address, and ZIP + 4 (c) Total contributions (d) Type of contribution Person Payroll Noncash (a) No. (b) Name, address, and ZIP + 4 (c) Total contributions (d) Type of contribution Person Payroll Noncash (a) No. (b) Name, address, and ZIP + 4 (c) Total contributions (d) Type of contribution Person Payroll Noncash (a) No. (b) Name, address, and ZIP + 4 (c) Total contributions (d) Type of contribution Person Payroll Noncash (a) No. (b) Name, address, and ZIP + 4 (c) Total contributions (d) Type of contribution Person Payroll Noncash (a) No. (b) Name, address, and ZIP + 4 (c) Total contributions (d) Type of contribution Person Payroll Noncash Schedule B (Form 990) (2022)Page Name of organization (see instructions). Use duplicate copies of Part I if additional space is needed. $ (Complete Part II for noncash contributions.) $ (Complete Part II for noncash contributions.) $ (Complete Part II for noncash contributions.) $ (Complete Part II for noncash contributions.) $ (Complete Part II for noncash contributions.) $ (Complete Part II for noncash contributions.) 2 Part I Contributors DRAFT 1 V 2,009,251. CGRY MF RMCFESRER 201 2RF SRREER SE RMCFESRER, KN 55902 BESRGNARGMN KEBGCAJ CENRER CMRPMRARGMN 24-2959171 21 11210918 111819 A121218 2022.02020 BESRGNARGMN KEBGCAJ CENRE A1212181 71 223453 11-15-22 Schedule B (Form 990) (2022) Employer identification number (a) No. from Part I (c) FMV (or estimate)(b) Description of noncash property given (d) Date received (a) No. from Part I (c) FMV (or estimate)(b) Description of noncash property given (d) Date received (a) No. from Part I (c) FMV (or estimate)(b) Description of noncash property given (d) Date received (a) No. from Part I (c) FMV (or estimate)(b) Description of noncash property given (d) Date received (a) No. from Part I (c) FMV (or estimate)(b) Description of noncash property given (d) Date received (a) No. from Part I (c) FMV (or estimate)(b) Description of noncash property given (d) Date received Schedule B (Form 990) (2022)Page Name of organization (see instructions). Use duplicate copies of Part II if additional space is needed. (See instructions.) $ (See instructions.) $ (See instructions.) $ (See instructions.) $ (See instructions.) $ (See instructions.) $ 3 Part II Noncash Property DRAFT BESRGNARGMN KEBGCAJ CENRER CMRPMRARGMN 24-2959171 22 11210918 111819 A121218 2022.02020 BESRGNARGMN KEBGCAJ CENRE A1212181 72 completing Part III, enter the total of exclusively religious, charitable, etc., contributions of for the year. (Enter this info. once.) 223454 11-15-22 Exclusively religious, charitable, etc., contributions to organizations described in section 501(c)(7), (8), or (10) that total more than $1,000 for the year from any one contributor.(a) (e) and $1,000 or less Schedule B (Form 990) (2022) Complete columns through the following line entry. For organizations Employer identification number (a) No.fromPart I (b) Purpose of gift (c) Use of gift (d) Description of how gift is held (e) Transfer of gift Transferee's name, address, and ZIP + 4 Relationship of transferor to transferee (a) No.fromPart I (b) Purpose of gift (c) Use of gift (d) Description of how gift is held (e) Transfer of gift Transferee's name, address, and ZIP + 4 Relationship of transferor to transferee (a) No.fromPart I (b) Purpose of gift (c) Use of gift (d) Description of how gift is held (e) Transfer of gift Transferee's name, address, and ZIP + 4 Relationship of transferor to transferee (a) No.fromPart I (b) Purpose of gift (c) Use of gift (d) Description of how gift is held (e) Transfer of gift Transferee's name, address, and ZIP + 4 Relationship of transferor to transferee Schedule B (Form 990) (2022)Page Name of organization $ Use duplicate copies of Part III if additional space is needed. 4 Part III DRAFT BESRGNARGMN KEBGCAJ CENRER CMRPMRARGMN 24-2959171 25 11210918 111819 A121218 2022.02020 BESRGNARGMN KEBGCAJ CENRE A1212181 73 Department of the Treasury Internal Revenue Service 232051 09-01-22 OMB No. 1545-0047 Held at the End of the Tax Year Complete if the organization answered "Yes" on Form 990,Part IV, line 6, 7, 8, 9, 10, 11a, 11b, 11c, 11d, 11e, 11f, 12a, or 12b. Attach to Form 990.Go to www.irs.gov/Form990 for instructions and the latest information. (Form 990) Open to PublicInspection Name of the organization Employer identification number (a) (b) 1 2 3 4 5 6 Yes No Yes No 1 2 3 4 5 6 7 8 9 a b c d 2a 2b 2c 2d Yes No Yes No 1 2 a b (i) (ii) a b For Paperwork Reduction Act Notice, see the Instructions for Form 990.Schedule D (Form 990) 2022 Complete if the organization answered "Yes" on Form 990, Part IV, line 6. Donor advised funds Funds and other accounts Total number at end of year Aggregate value of contributions to (during year) Aggregate value of grants from (during year) Aggregate value at end of year ~~~~~~~~~~~~~~~ ~~~~ ~~~~~~ ~~~~~~~~~~~~~ Did the organization inform all donors and donor advisors in writing that the assets held in donor advised funds are the organization's property, subject to the organization's exclusive legal control?~~~~~~~~~~~~~~~~~~ Did the organization inform all grantees, donors, and donor advisors in writing that grant funds can be used only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purpose conferring impermissible private benefit? Complete if the organization answered "Yes" on Form 990, Part IV, line 7. Purpose(s) of conservation easements held by the organization (check all that apply). Preservation of land for public use (for example, recreation or education) Protection of natural habitat Preservation of open space Preservation of a historically important land area Preservation of a certified historic structure Complete lines 2a through 2d if the organization held a qualified conservation contribution in the form of a conservation easement on the last day of the tax year. Total number of conservation easements Total acreage restricted by conservation easements ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~ Number of conservation easements on a certified historic structure included in (a) Number of conservation easements included in (c) acquired after July 25,2006, and not on a historic structure listed in the National Register ~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during the tax year Number of states where property subject to conservation easement is located Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations, and enforcement of the conservation easements it holds?~~~~~~~~~~~~~~~~~~~~~~~~~ Staff and volunteer hours devoted to monitoring, inspecting, handling of violations, and enforcing conservation easements during the year Amount of expenses incurred in monitoring, inspecting, handling of violations, and enforcing conservation easements during the year Does each conservation easement reported on line 2(d) above satisfy the requirements of section 170(h)(4)(B)(i) and section 170(h)(4)(B)(ii)? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ In Part XIII, describe how the organization reports conservation easements in its revenue and expense statement and balance sheet, and include, if applicable, the text of the footnote to the organization's financial statements that describes the organization's accounting for conservation easements. Complete if the organization answered "Yes" on Form 990, Part IV, line 8. If the organization elected, as permitted under FASB ASC 958, not to report in its revenue statement and balance sheet works of art, historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service, provide in Part XIII the text of the footnote to its financial statements that describes these items. If the organization elected, as permitted under FASB ASC 958, to report in its revenue statement and balance sheet works of art, historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service, provide the following amounts relating to these items: Revenue included on Form 990, Part VIII, line 1 Assets included in Form 990, Part X ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ $ $~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ If the organization received or held works of art, historical treasures, or other similar assets for financial gain, provide the following amounts required to be reported under FASB ASC 958 relating to these items: Revenue included on Form 990, Part VIII, line 1 Assets included in Form 990, Part X ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ $ $ LHA Part I Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Part II Conservation Easements. Part III Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets. SCHEDULE D Supplemental Financial Statements 2022 DRAFT BEQTINATION MEBICAJ CENTEP COPNOPATION 44-4757171 04 11010716 111617 A141416 0000.04000 BEQTINATION MEBICAJ CENTE A1414161 74 232052 09-01-22 3 4 5 a b c d e Yes No 1 2 a b c d e f a b Yes No 1c 1d 1e 1f Yes No (a) (b) (c) (d) (e) 1 2 3 4 a b c d e f g a b c a b Yes No (i) (ii) 3a(i) 3a(ii) 3b (a) (b) (c) (d) 1a b c d e Total. Schedule D (Form 990) 2022 (continued) (Column (d) must equal Form 990, Part X, column (B), line 10c.) Two years back Three years back Four years back Schedule D (Form 990) 2022 Page Using the organization's acquisition, accession, and other records, check any of the following that make significant use of its collection items (check all that apply): Public exhibition Scholarly research Preservation for future generations Loan or exchange program Other Provide a description of the organization's collections and explain how they further the organization's exempt purpose in Part XIII. During the year, did the organization solicit or receive donations of art, historical treasures, or other similar assets to be sold to raise funds rather than to be maintained as part of the organization's collection? Complete if the organization answered "Yes" on Form 990, Part IV, line 9, or reported an amount on Form 990, Part X, line 21. Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets not included on Form 990, Part X? If "Yes," explain the arrangement in Part XIII and complete the following table: ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Amount Beginning balance Additions during the year Distributions during the year Ending balance ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization include an amount on Form 990, Part X, line 21, for escrow or custodial account liability? If "Yes," explain the arrangement in Part XIII. Check here if the explanation has been provided on Part XIII ~~~~~ Complete if the organization answered "Yes" on Form 990, Part IV, line 10. Current year Prior year Beginning of year balance Contributions Net investment earnings, gains, and losses Grants or scholarships ~~~~~~~ ~~~~~~~~~~~~~~ ~~~~~~~~~ Other expenditures for facilities and programs Administrative expenses End of year balance ~~~~~~~~~~~~~ ~~~~~~~~ ~~~~~~~~~~ Provide the estimated percentage of the current year end balance (line 1g, column (a)) held as: Board designated or quasi-endowment Permanent endowment Term endowment The percentages on lines 2a, 2b, and 2c should equal 100%. % % % Are there endowment funds not in the possession of the organization that are held and administered for the organization by: Unrelated organizations Related organizations ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ If "Yes" on line 3a(ii), are the related organizations listed as required on Schedule R? Describe in Part XIII the intended uses of the organization's endowment funds. ~~~~~~~~~~~~~~~~~~~~ Complete if the organization answered "Yes" on Form 990, Part IV, line 11a. See Form 990, Part X, line 10. Description of property Cost or other basis (investment) Cost or other basis (other) Accumulated depreciation Book value Land Buildings Leasehold improvements ~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~ Equipment Other ~~~~~~~~~~~~~~~~~ Add lines 1a through 1e. 2 Part III Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets Part IV Escrow and Custodial Arrangements. Part V Endowment Funds. Part VI Land, Buildings, and Equipment. DRAFT 0. DESTINATION MEDICAL CENTER CORPORATION 46-4959371 27 13210918 131839 A343438 2022.04020 DESTINATION MEDICAL CENTE A3434381 75 (including name of security) 232053 09-01-22 Total. Total. (a) (b) (c) (1) (2) (3) (a) (b) (c) (1) (2) (3) (4) (5) (6) (7) (8) (9) (a) (b) (1) (2) (3) (4) (5) (6) (7) (8) (9) Total. (a) (b) 1. Total. 2. Schedule D (Form 990) 2022 (Column (b) must equal Form 990, Part X, col. (B) line 15.) (Column (b) must equal Form 990, Part X, col. (B) line 25.) Description of security or category (Col. (b) must equal Form 990, Part X, col. (B) line 12.) (Col. (b) must equal Form 990, Part X, col. (B) line 13.) Schedule D (Form 990) 2022 Page Complete if the organization answered "Yes" on Form 990, Part IV, line 11b. See Form 990, Part X, line 12. Book value Method of valuation: Cost or end-of-year market value Financial derivatives Closely held equity interests Other ~~~~~~~~~~~~~~~ ~~~~~~~~~~~ (A) (B) (C) (D) (E) (F) (G) (H) Complete if the organization answered "Yes" on Form 990, Part IV, line 11c. See Form 990, Part X, line 13. Description of investment Book value Method of valuation: Cost or end-of-year market value Complete if the organization answered "Yes" on Form 990, Part IV, line 11d. See Form 990, Part X, line 15. Description Book value Complete if the organization answered "Yes" on Form 990, Part IV, line 11e or 11f. See Form 990, Part X, line 25. Description of liability Book value (1) (2) (3) (4) (5) (6) (7) (8) (9) Federal income taxes Liability for uncertain tax positions. In Part XIII, provide the text of the footnote to the organization's financial statements that reports the organization's liability for uncertain tax positions under FASB ASC 740. Check here if the text of the footnote has been provided in Part XIII 3 Part VII Investments - Other Securities. Part VIII Investments - Program Related. Part IX Other Assets. Part X Other Liabilities. DRAFT DESTIN?TION KEDIC?J CENTER CORPOR?TION ?DT?NCE TO DKC ED? DUE DROK OTHER EOTERNKENTS DUE TO OTHER EOTERNKENTS 24+273715/ /..,.... /46,27.. 046,27.. /./,.... /./,.... 06 /10/.7/6 /1/617 ?121216 0.00..2.0. DESTIN?TION KEDIC?J CENTE ?121216/ 76 232054 09-01-22 1 2 3 4 5 1 a b c d e 2a 2b 2c 2d 2a 2d 2e 32e 1 a b c 4a 4b 4a 4b 3 4c. 4c 5 1 2 3 4 5 1 a b c d e 2a 2b 2c 2d 2a 2d 2e 1 2e 3 a b c 4a 4b 4a 4b 3 4c. 4c 5 Schedule D (Form 990) 2022 (This must equal Form 990, Part I, line 12.) (This must equal Form 990, Part I, line 18.) Schedule D (Form 990) 2022 Page Complete if the organization answered "Yes" on Form 990, Part IV, line 12a. Total revenue, gains, and other support per audited financial statements Amounts included on line 1 but not on Form 990, Part VIII, line 12: ~~~~~~~~~~~~~~~~~~~ Net unrealized gains (losses) on investments Donated services and use of facilities Recoveries of prior year grants Other (Describe in Part XIII.) ~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~ Add lines through ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Subtract line from line ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Amounts included on Form 990, Part VIII, line 12, but not on line 1: Investment expenses not included on Form 990, Part VIII, line 7b Other (Describe in Part XIII.) ~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~ Add lines and Total revenue. Add lines and ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Complete if the organization answered "Yes" on Form 990, Part IV, line 12a. Total expenses and losses per audited financial statements Amounts included on line 1 but not on Form 990, Part IX, line 25: ~~~~~~~~~~~~~~~~~~~~~~~~~~ Donated services and use of facilities Prior year adjustments Other losses Other (Describe in Part XIII.) ~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~ Add lines through Subtract line from line ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Amounts included on Form 990, Part IX, line 25, but not on line 1: Investment expenses not included on Form 990, Part VIII, line 7b Other (Describe in Part XIII.) ~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~ Add lines and Total expenses. Add lines and ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Provide the descriptions required for Part II, lines 3, 5, and 9; Part III, lines 1a and 4; Part IV, lines 1b and 2b; Part V, line 4; Part X, line 2; Part XI, lines 2d and 4b; and Part XII, lines 2d and 4b. Also complete this part to provide any additional information. 4 Part XI Reconciliation of Revenue per Audited Financial Statements With Revenue per Return. Part XII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return. Part XIII Supplemental Information.DRAFT 2,009,266. 0. 2,009,266. 0. 2,009,266. 2,009,266. 0. 2,009,266. 0. 2,009,266. DESTINATION MEDICAL CENTER CORPORATION 46-4959371 29 13210918 131839 A343438 2022.04020 DESTINATION MEDICAL CENTE A3434381 77 OMB No. 1545-0047 Department of the Treasury Internal Revenue Service 232211 10-28-22 Complete to provide information for responses to specific questions onForm 990 or 990-EZ or to provide any additional information. Attach to Form 990 or Form 990-EZ.Go to www.irs.gov/Form990 for the latest information. Open to Public Inspection Employer identification number For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.Schedule O (Form 990) 2022 Name of the organization LHA (Form 990) SCHEDULE O Supplemental Information to Form 990 or 990-EZ 2022 DRAFT FORM 990, PART III, LINE 1, DESCRIPTION OF ORGANIZATION MISSION: AND SUPPORTING THE ECONOMIC GROWTH OF MINNESOTA AND ITS BIOSCIENCES SECTOR. FORM 990, PART VI, SECTION A, LINE 1A: THE EVECUTIVE COMMITTEE IS COMPRISED OF THE CHAIR, TREASURER, AND SUCH OTHER PERSONS, IF ANY, ELECTED BY THE BOARD OF DIRECTORS. THE MARJORITY OF THE MEMBERS OF THE EVECUTIVE COMMITTEE SHALL BE DIRECTORS. THE EVECUTIVE COMMITTEE SHALL ACT ONLY DURING INTERVALS BETWEEN MEETINGS OF THE BOARD OF DIRECTORS AND SHALL AT ALL TIMES BE SUBJECT TO THE CONTROL AND DIRECTION OF THE BOARD OF DIRECTIONS. DURING SUCH INTERVALS AND SUBJECT TO SUCH CONTROL AND DIRECTION, THE EVECUTIVE COMMITTEE SHALL HAVE AND MAY EVERCISE ALL OF THE AUTHORITY AND POWERS OF THE BOARD OF DIRECTORS IN THE MANAGEMENT OF THE AFFAIRS OF THE ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 7A: THE GOVERNING DOCUMENTS PROVIDE THAT THE FILING ORGANIZATION'S BOARD OF DIRECTORS ARE APPOINTED AS FOLLOWS: "THE MAYOR OF ROCHESTER, MN (OR DESIGNEE) SUBJECT TO APPROVAL BY THE CITY COUNCIL. "THE CITY COUNCIL PRESIDENT, (OR DESIGNEE) SUBJECT TO APPROVAL BY THE CITY COUNCIL. "THE CHAIR OR ANOTHER MEMBER OF THE COUNTY BOARD OF OLMSTED COUNTY, APPOINTED BY THE COUNTY BOARD. "A REPRESENTATIVE OF MAYO CLINIC APPOINTED BY MAYO CLINIC "FOUR DIRECTORS APPOINTED BY THE GOVERNOR OF MINNESOTA, SUBJECT TO DESTINATION MEDICAL CENTER CORPORATION 46-4959371 30 13210918 131839 A343438 2022.04020 DESTINATION MEDICAL CENTE A3434381 78 232212 10-28-22 2 Employer identification number Schedule O (Form 990) 2022 Schedule O (Form 990) 2022 Page Name of the organization DRAFT CONFIRMATION BY THE MINNESOTA SENATE. FORM 990, PART VI, SECTION A, LINE 7B: THE GOVERNING DOCUMENTS PROVIDE THAT THE FILING ORGANIZATION CAN AMEND THE ARTICLES OF INCORPORATION SUBJECT TO APPROVAL BY THE CITY OF ROCHESTER, MINNESOTA. THE CITY OF ROCHESTER, MINNESOTA ALSO HAS RIGHTS AND POWERS OF APPROVAL RELATED TO THE FILING ORGANIZATION'S ANNUAL BUDGET/FUNDING REOUEST AND INCURRENCE OF LONG-TERM DEBT. FORM 990, PART VI, SECTION B, LINE 11B: THE 990 WILL BE PRESENTED AT A BOARD MEETING PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C: THE DMCC HAS A WRITTEN CONFLICT OF INTEREST POLICY. IN ADDITION, THE DMCC DIRECTORS ARE PUBLIC OFFICIALS UNDER MINNESOTA STATUTES SECTION 10A.01, SUBD. 35. SEE MINN. STAT. SECTION 469.41, SUBD. 10. PUBLIC OFFICIALS ARE SUBJECT TO STATUTORY CONFLICT OF INTEREST REOUIREMENTS. MINN. STAT. SECTION 10A.07. FORM 990, PART VI, SECTION C, LINE 19: THE DESTINATION MEDICAL CENTER CORPORATION IS SUBJECT TO THE MINNESOTA GOVERNMENT DATA PRACTICES ACT AND OPEN MEETING LAW, AND THEREFORE MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE UPON REOUEST. FORM 990, PART VII, LINE 2C: DESTINATION MEDICAL CENTER CORPORATION 46-4959371 THE CORPORATION'S BOARD OF DIRECTORS ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND THE SELECTION OF 31 13210918 131839 A343438 2022.04020 DESTINATION MEDICAL CENTE A3434381 79 232212 10-28-22 2 Employer identification number Schedule O (Form 990) 2022 Schedule O (Form 990) 2022 Page Name of the organization DRAFT ITS INDEPENDENT ACCOUNTANT. DESTINATION MEDICAL CENTER CORPORATION 46-4959371 32 13210918 131839 A343438 2022.04020 DESTINATION MEDICAL CENTE A3434381 80 OMB No. 1545-0047 Department of the TreasuryInternal Revenue Service Section 512(b)(13) controlled entity? 232161 09-14-22 SCHEDULE R (Form 990)Complete if the organization answered "Yes" on Form 990, Part IV, line 33, 34, 35b, 36, or 37. Attach to Form 990. Open to PublicInspectionGo to www.irs.gov/Form990 for instructions and the latest information. Employer identification number Part I Identification of Disregarded Entities. (a)(b)(c)(d)(e)(f) Identification of Related Tax-Exempt Organizations. Part II (a)(b)(c)(d)(e)(f)(g) Yes No For Paperwork Reduction Act Notice, see the Instructions for Form 990.Schedule R (Form 990) 2022 Name of the organization Complete if the organization answered "Yes" on Form 990, Part IV, line 33. Name, address, and EIN (if applicable) of disregarded entity Primary activity Legal domicile (state or foreign country) Total income End-of-year assets Direct controlling entity Complete if the organization answered "Yes" on Form 990, Part IV, line 34, because it had one or more related tax-exemptorganizations during the tax year. Name, address, and EIN of related organization Primary activity Legal domicile (state or foreign country) Exempt Code section Public charity status (if section 501(c)(3)) Direct controlling entity LHA Related Organizations and Unrelated Partnerships 2022 DRAFT DESTINATION MEDICAL CENTER CORPORATION )*89.3&9.43 2*).(&1 (*39*7 *(4342.( 897**9 8: 74(-*89*7 23 )*;*1452*39 &,*3(< 89 574;.)* 8*7;.(*8 94 9-* )2((2.33*849&3& 46-4959371 ( 1.3* V 33 81 Disproportionate allocations? Legal domicile (state or foreign country) General or managing partner? Section512(b)(13)controlledentity? Legal domicile (state or foreign country) 232162 09-14-22 2 Identification of Related Organizations Taxable as a Partnership. Part III (a)(b)(c)(d)(e)(f)(g)(h)(i)(j) (k) Yes No Yes No Identification of Related Organizations Taxable as a Corporation or Trust. Part IV (a)(b)(c)(d)(e)(f)(g)(h) (i) Yes No Schedule R (Form 990) 2022 Predominant income(related, unrelated,excluded from tax undersections 512-514) Schedule R (Form 990) 2022 Page Complete if the organization answered "Yes" on Form 990, Part IV, line 34, because it had one or more relatedorganizations treated as a partnership during the tax year. Name, address, and EINof related organization Primary activity Direct controllingentity Share of totalincome Share ofend-of-yearassets Code V-UBIamount in box20 of ScheduleK-1 (Form 1065) Percentageownership Complete if the organization answered "Yes" on Form 990, Part IV, line 34, because it had one or more relatedorganizations treated as a corporation or trust during the tax year. Name, address, and EINof related organization Primary activity Direct controllingentity Type of entity(C corp, S corp,or trust) Share of totalincome Share ofend-of-yearassets PercentageownershipDPAFR DESTINATION MEDICAL CENTER CORPORATION 46-4959371 34 82 232163 09-14-22 3 Part V Transactions With Related Organizations. Note:Yes No 1 a b c d e f g h i j k l m n o p q r s (i) (ii) (iii) (iv) 1a 1b 1c 1d 1e 1f 1g 1h 1i 1j 1k 1l 1m 1n 1o 1p 1q 1r 1s 2 (a)(b)(c)(d) (1) (2) (3) (4) (5) (6) Schedule R (Form 990) 2022 Schedule R (Form 990) 2022 Page Complete if the organization answered "Yes" on Form 990, Part IV, line 34, 35b, or 36. Complete line 1 if any entity is listed in Parts II, III, or IV of this schedule. During the tax year, did the organization engage in any of the following transactions with one or more related organizations listed in Parts II-IV? Receipt of interest, annuities, royalties, or rent from a controlled entity ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Gift, grant, or capital contribution to related organization(s) Gift, grant, or capital contribution from related organization(s) Loans or loan guarantees to or for related organization(s) Loans or loan guarantees by related organization(s) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Dividends from related organization(s) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Sale of assets to related organization(s) Purchase of assets from related organization(s) Exchange of assets with related organization(s) Lease of facilities, equipment, or other assets to related organization(s) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Lease of facilities, equipment, or other assets from related organization(s) Performance of services or membership or fundraising solicitations for related organization(s) Performance of services or membership or fundraising solicitations by related organization(s) Sharing of facilities, equipment, mailing lists, or other assets with related organization(s) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Sharing of paid employees with related organization(s) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Reimbursement paid to related organization(s) for expenses Reimbursement paid by related organization(s) for expenses ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Other transfer of cash or property to related organization(s) Other transfer of cash or property from related organization(s) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ If the answer to any of the above is "Yes," see the instructions for information on who must complete this line, including covered relationships and transaction thresholds. Name of related organization Transaction type (a-s) Amount involved Method of determining amount involved DRAFT V V V V V V V V V V V V V V V V V V 46-4959371DESTINATION MEDICAL CENTER CORPORATION V 35 83 Are allpartners sec.501(c)(3)orgs.? Dispropor- tionate allocations? General or managing partner? 232164 09-14-22 Yes No Yes No Yes N 4 Part VI Unrelated Organizations Taxable as a Partnership. (a)(b)(c)(d)(e)(f)(g)(h) (i) (j) (k) o Schedule R (Form 990) 2022 Predominant income(related, unrelated,excluded from tax undersections 512-514) Code V-UBIamount in box 20of Schedule K-1(Form 1065) Schedule R (Form 990) 2022 Page Complete if the organization answered "Yes" on Form 990, Part IV, line 37. Provide the following information for each entity taxed as a partnership through which the organization conducted more than five percent of its activities (measured by total assets or gross revenue) that was not a related organization. See instructions regarding exclusion for certain investment partnerships. Name, address, and EIN of entity Primary activity Legal domicile (state or foreign country) Share of total income Share of end-of-year assets Percentage ownership DPAFR 46-4959371DESTINATION MEDICAL CENTER CORPORATION 36 84 232165 09-14-22 5 Schedule R (Form 990) 2022 Schedule R (Form 990) 2022 Page Provide additional information for responses to questions on Schedule R. See instructions. Part VII Supplemental Information DRAFT DESTINATION MEDICAL CENTER CORPORATION 46-4959371 37 13210918 131839 A343438 2022.04020 DESTINATION MEDICAL CENTE A3434381 85 285471 04-01-22 C2 Website Address: Legal Name of Organization Federal EIN:Fiscal Year-End: Mailing Address:Physical Address: www.ag.state.mn.us/charity Minnesota Attorney General's Office Charities Division 445 Minnesota Street, Suite 1200 St. Paul, MN 55101-2130 (Pursuant to Minn. Stat. ch. 309) mm/dd/yyyy Did the organization's fiscal year-end change? Yes No Contact Person Contact Person Street Address Street Address City, State, and ZIP Code City, State, and ZIP Code Phone Number Phone Number Email Address Email Address 1. 2. 3. 4. 5. 6. 7. Organization's website: List all of the organization's alternate and former names (attach list if more space is needed). Alternate Former Alternate Former List all names under which the organization solicits contributions (attach list if more space is needed). Is the organization incorporated pursuant to Minn. Stat. ch. 317A?Yes No Total amount of contributions the organization received from Minnesota donors:$ Has the organization's tax-exempt status with the IRS changed? Yes No If yes, attach explanation. Has the organization significantly changed its purpose(s) or program(s)? Yes No If yes, attach explanation. Mail To: SECTION A: Organization Information STATE OF MINNESOTA CHARITABLE ORGANIZATION ANNUAL REPORT FORM DRAFT V DESTINATION MEDICAL CENTER CORPORATION 46-4959371 12312022 MARK THEIN MARK THEIN 201 4TH STREET SE, NO. 204 201 4TH STREET SE, NO. 204 ROCHESTER, MN 55904 ROCHESTER, MN 55904 507-328-2850 MARK.THEIN>OLMSTEDCOUNTY.GOV MARK.THEIN>OLMSTEDCOUNTY.GOV WWW.DMC.MN DESTINATION MEDICAL CENTER CORPORATION V V 2,009,253. V 1 13210918 131839 A343438 2022.04020 DESTINATION MEDICAL CENTE A3434381 86 285472 04-01-22 C2 Note: Name and title Compensation*Other compensation See 8. 9. 10. 11. Has the organization been denied the right to solicit contributions by any court or government agency? Yes No If yes, attach explanation. Does the organization use the services of a professional fundraiser (outside solicitor or consultant) to solicit contributions in Minnesota? Yes No If yes, provide the following information for each (attach list if more space is needed): Name of Professional Fundraiser Compensation Street Address City, State, and ZIP Code Is the organization a food shelf? Yes No If yes, is the organization required to file an audit? Yes, audit attached No An organization that has total revenue of more than $750,000 is required to file an audit prepared in accordance with generally accepted accounting principles by an independent CPA or LPA. The value of donated food to a nonprofit food shelf may be excluded from the total revenue if the food is donated for subsequent distribution at no charge and is not resold. Do any directors, officers, or employees of the organization or its related organization(s) receive total compensation* of more than $100,000? Yes No If yes, provide the following information for the five highest paid individuals: *Compensation is defined as the total amount reported on Form W-2 (Box 5) or Form 1099-MISC (Box 7) issued by the organization and its related organizations to the individual. Minn. Stat. ¤ 309.53, subd. 3(i) and Minn. Stat. ¤ 317A.011 for definitions. CHARITABLE ORGANIZATION ANNUAL REPORT FORM (Continued) DRAFT V V V V 2 13210918 131839 A343438 2022.04020 DESTINATION MEDICAL CENTE A3434381 87 285473 04-01-22 C2 5.$5 9 10 14 18 9. 10. $ $ 14.$ 18.$ $ This section must be completed by organizations that file an IRS Form 990-EZ, 990-PF, or 990-N. Organizations that file an IRS Form 990 may skip Section B and go directly to Section C. 1. 2. 3. 4. Contributions Received $ $ $ $ 1 2 3 4 6 7 8 11 12 13 15 16 17 Government Grants Program Service Revenue Other Revenue 6. 7. 8. Program Expenses $ $ $ Management & General Expenses Fund-raising Expenses (Line 5 minus Line 9) 11. 12. 13. Cash $ $ $ Land, Buildings & Equipment Other Assets 15. 16. 17. Accounts Payable $ $ $ Grants Payable Other Liabilities (Line 14 minus Line 18) TOTAL INCOME TOTAL EXPENSES EXCESS or DEFICIT TOTAL ASSETS TOTAL LIABILITIES CHARITABLE ORGANIZATION ANNUAL REPORT FORM (Continued) SECTION B: Financial Information INCOME EXPENSES ASSETS LIABILITIES FUND BALANCE/NET WORTH DRAFT 3 13210918 131839 A343438 2022.04020 DESTINATION MEDICAL CENTE A3434381 88 285474 04-01-22 Total functional expenses. C2 (A)(B)(C)(D) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. a. b. c. d. e. f. g. a. b. c. d. Joint costs. Grants and other assistance to individuals in the U.S. Compensation not included above, to disqualified persons (as defined under section 4958(f)(1) and persons described in section 4958(c)(3)(B) (include section 401(k) and section 403(b) employer contributions) Add lines 1 through 24d This expense statement must be prepared in accordance with generally accepted accounting principles. Each column must be completed, and Columns B, C, and D must equal Column A. The amount on Line 25, Column A must match Line 17 of IRS Form 990-EZ or Line 26 of IRS Form 990-PF. Total expenses Program service expenses Management andgeneral expenses Fundraisingexpenses Grants and other assistance to governments and organizations in the U.S. Grants and other assistance to governments, organizations, and individuals outside the U.S. Benefits paid to or for members Compensation of current officers, directors, trustees, and key employees Other salaries and wages Pension plan contributions Other employee benefits Payroll taxes Fees for services (non-employees): Management Legal Accounting Lobbying Professional fundraising services Investment management fees Other Advertising and promotion Office expenses Information technology Royalties Occupancy Travel Payments of travel or entertainment expenses for any federal, state, or local public officials Conferences, conventions, and meetings Interest Payments to affiliates Depreciation, depletion, and amortization Insurance Other expenses. Itemize expenses not covered above. Expenses labeled miscellaneous may not exceed 5% of total expenses (Line 25). Check here | if following SOP 98-2. Complete this line only if the organi-zation reported in Column B joint costs from a combined educational campaign andfundraising solicitation CHARITABLE ORGANIZATION ANNUAL REPORT FORM (Continued) Section B (continued): Statement of Functional Expenses DRAFT 2 /10/.7/6 /1/617 ?121216 0.00..2.0. DESTIN?TION KEDIC?J CENTE ?121216/ 89 285475 04-01-22 C2 See The form must be executed pursuant to a resolution of the board of directors, trustees, or managing group and must be signed by two officers of the organization. Minn. Stat. ¤ 309.52, subd. 3. We, the undersigned, state and acknowledge that we are duly constituted officers of this organization, being the (Title) and (Title) respectively, and that we execute this document on behalf of the organization pursuant to the resolution of the (Board of Directors, Trustees, or Managing Group) adopted on the day of , 20 , approving the contents of the document, and do hereby certify that the (Board of Directors, Trustees, or Managing Group) has assumed, and will continue to assume, responsibility for determining matters of policy, and have supervised, and will continue to supervise, the operations and finances of the organization. We further state that the information supplied is true, correct and complete to the best of our knowledge. Name (Print)Name (Print) Signature Signature Title Title Date Date CHARITABLE ORGANIZATION ANNUAL REPORT FORM (Continued) Section C: Board of Directors Signatures and Acknowledgment DRAFT TREASURER CHAIR BOARD OF DIRECTORS BOARD OF DIRECTORS MARK THEIN PAMELA WHEELOCK TREASURER CHAIR 5 13210918 131839 A343438 2022.04020 DESTINATION MEDICAL CENTE A3434381 90 ©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. September 2023 Destination Medical Center Corporation 91 ©2023 CliftonLarsonAllen LLP 2 IRS Form 990 •Financial information reconciles to DMCC’s audited financial statements •Part III (page 3) – statement of DMCC’s organizational purpose •Part VI (page 7) – governance •Part VII (page 8) – board members •Part VIII (page 10) – no unrelated business income 92 ©2023 CliftonLarsonAllen LLP 3 IRS Form 990 •Schedule B (page 23) – contributors •Schedule R (page 33) – related organizations •Filing deadline is November 15, 2023 93 ©2023 CliftonLarsonAllen LLP 4 MN Charitable Organization Annual Report •Filed with Minnesota Attorney General’s Office Charities Division •No changes in tax-exempt status (page 1) •No changes in organizational purpose or programs (page 1) •No changes in ability to solicit contributions (page 2) •No compensation paid in excess of $100,000 (page 2) •Filing deadline November 15, 2023 94 ©2023 CliftonLarsonAllen LLP 5 Minnesota Non-profit Corporation Annual Renewal •Filed online with Minnesota Secretary of State •In good standing through December 31, 2023 •Annual renewal to be filed (online) for 2024 95 ©2023 CliftonLarsonAllen LLP 6 Thank you for engaging us to serve you! Contact Information: Craig Popenhagen, Principal Katherine Lutzke, Director 507-280-2327 507-280-2314 Craig.popenhagen@claconnect.com katherine.lutzke@claconnect.com 96 B. DESTINATION MEDICAL CENTER CORPORATION RESOLUTION NO. -2023 Approving the 2023 State of Minnesota Charitable Organization Annual Report and 2022 Form 990 BACKGROUND RECITALS A. On behalf of the Destination Medical Center Corporation (“DMCC”), CliftonLarsonAllen (“CLA”) prepared the 2023 State of Minnesota Charitable Organization Annual Report (the “Annual Report”) and 2022 Form 990 (the “Form 990”) and is recommending that the DMCC approve both items. B. The Annual Report and Form 990 were presented to the DMCC on September 28, 2023, and are on file with the DMCC. RESOLUTION NOW, THEREFORE, BE IT RESOLVED, by the Destination Medical Center Corporation, that the 2023 State of Minnesota Charitable Organization Annual Report and 2022 Form 990 are approved. BE IT FURTHER RESOLVED, that the Board authorizes the Chair or Treasurer to take any action or make any amendments necessary and to file the Annual Report and Form 990. 1747330-2.DOCX 97 98 DESCRIPTION 2024 DMC FUNDING SOURCE PROPOSED 2024 DMC FUNDING 1 Chateau Theatre: Improvements and Asset Preservation DMC GSIA $1,000,000 2 Downtown Waterfront: Riverfront Pre-development DMC GSIA $1,000,000 3 St Marys Place: Public Realm Design and Construction DMC GSIA $500,000 2024 Subtotal Phase 2 Subtotal (2020-2024)Phase 2 Target Range $2,500,000 $50,670,000 $35-50M DESCRIPTION 2024 DMC FUNDING SOURCE PROPOSED 2024 DMC FUNDING DMC County Transit Aid $3,718,569 DMC State Transit Aid $5,577,854 2024 Subtotal Phase 2 Subtotal (2020-2024)Phase 2 Target Range $9,296,423 $60,057,083 $60-75M DESCRIPTION 2024 DMC FUNDING SOURCE PROPOSED 2024 DMC FUNDING 5 Strategic Redevelopment (Bio-med-tech, workforce housing, downtown property support)DMC GSIA $10,000,000 2024 Subtotal Phase 2 Subtotal (2020-2024)Phase 2 Target Range $10,000,000 $30,300,000 $20-45M DESCRIPTION 2024 DMC FUNDING SOURCE PROPOSED 2024 DMC FUNDING 6 Streets: Sixth Street Bridge, Sixth Street S.E., Waterfront Connectivity DMC GSIA $4,000,000 7 District Energy DMC GSIA $7,200,000 8 Sewer: Construct sanitary sewer capacity bypass on 3rd Ave SW from 2nd St SW to 4th St SW DMC GSIA $1,500,000 2024 Subtotal Phase 2 Subtotal (2020-2024)Phase 2 Target Range $12,700,000 $34,477,223 $35-50M DESCRIPTION 2024 DMC FUNDING SOURCE PROPOSED 2024 DMC FUNDING 9 DMC Corp.City DMC Aid $218,930 10 DMC administrative support by City of Rochester City DMC Aid $100,000 11 DMC EDA City DMC Aid $2,842,507 12 City DMC Project Management City DMC Aid $1,157,454 13 DMC Development Plan Update DMC GSIA $750,000 2024 Subtotal Phase 2 Subtotal (2020-2024)Phase 2 Target Range $5,068,891 $20,214,541 $15-20M 2024 DMC Funding Total Phase 2 Total (2020-2024)Phase 2 Target Range $39,565,314 $195,718,847 $200,000,000 2024 DMC GSIA:$25,200,000 2024 City DMC Aid:$5,068,891 2024 County DMC Transit Aid:$3,718,569 2024 State DMC Transit Aid:$5,577,854 2024 DMC Total:$39,565,314 DMC CAPITAL IMPROVEMENT PLAN 4 PHASE 2 (2020-2024) DMC FUNDING PHASE 2 (2020-2024) DMC FUNDING PHASE 2 (2020-2024) DMC FUNDING Public Realm Mobility Streets and Sewers Strategic Redevelopment Operations PHASE 2 (2020-2024) DMC FUNDING PHASE 2 (2020-2024) DMC FUNDING Rapid Transit, including Second Street Reconstruction & Streetscape 99 100 Department: Division: Contact Person: Location: Project Category: Department Priority: Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan There are aspects of the building that need repair or enhancement in order to maintain and utilize the existing asset. Destination Medical Center - Chateau Theatre City Administration 216 NA Chateau restroom renovations are ongoing. Major upgrades to the HVAC system are planned for 2023ͲϮϬϮϰ. Fiscal Responsibility & Sustainability 8600 8613 Chateau Theatre Improvements Economic Vibrancy and Growth Management, Quality Services for Quality Living City Administration Not Applicable 2024 Noloan L Schild Destination Medical Center 5 101 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 1,000,000 2026 2027 20282025 Implementation 1,000,000 2024 0 Existing 2,400,000 1,000,000 01,000,000 300,000 1,000,000 300,000 2029 2,400,000 100,000 202920272025 2,400,000 N/A 2024 2,400,000 2028 1,000,000 100,0001,000,000 0 1,000,000 300,000 HVAC related improvements are likely to decrease the operating utilities costs of the facility. Other improvements are likely have minimal impact on operating costs. Potentially some of the improvements may marginally decrease operating costs. 1 0 0 0 100,000 0100,000 0 State DMC Funds 300,000 0 2026 102 Department: Division: Contact Person: Location: Project Category: Department Priority: Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan Enhance the downtown experience for citizens, visitors and businesses by creating an inviting, exciting and accessible riverfront area. Destination Medical Center Public Works 283 All To physically and socially connect the community to the riverfront to become a destination and better connect our downtown trail system. This includes efforts to evolve and enhance the riverfront areas in and near the downtown area which would include connectivity to downtown, development along the riverfront as well as amenities and activities. 2024 Pre-development infrastructure will include public realm improvements and other strategies. Fiscal Responsibility & Sustainability, Social Equity 8600 Riverfront Redevelopment Economic Vibrancy and Growth Management Destination Medical Center CIP (BU 8600) Not Applicable 2024 Noloan L Schild Destination Medical Center 0 103 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 0 1,000,000 2026 2027 20282025 Construction Architect/Design 1,000,000 2024 0 0 New 43,000,000 22,000,000 0 01,000,000 20,000,000 0 22,000,000 10,000,000 10,000,000 2029 42,000,000 1,000,000 0 0 202920272025 21,000,000 22,000,000 The riverfront efforts would be in alignment with both the DMC and City development plans. 2024 43,000,000 2028 22,000,000 0 0 0 11,000,000 11,000,000 0 1,000,000 20,000,000 Team will determine options for funding annual operating costs when an estimate is available during project planning and design. Operating costs must be considered at the time the funds are being considered for investing in a related project. 100 0 0 0 0 0 0 00 0 State Funds State DMC Funds 20,000,000 0 0 2026 104 Department: Division: Contact Person: Location: Project Category: Department Priority: Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan To achieve the vision and goals set forth in the Destination Medical Center (DMC) Development Plan. The DMC Development Plan included a vision of creating a signature public realm space for each sub-district. This project will be the signature public realm space for the St. Marys sub-disctrict. Destination Medical Center City Administration 219 NA Located on 2nd street SW, St. Marys Place establishes a civic square and monumental gateway at one of the primary entry points to Rochester. The plan incorporates a circulator that connects the St. Marys campus to the downtown. It also embraces its relationship to the surrounding neighborhoods creating a town square that connects Kutzky Park to St. Marys Park and the Historic Pill Hill neighborhood. These funds are meant to advance the schematic design set for the project that was initiated in 2016-2017 with design starting in 2023 and construction to begin in 2024. Fiscal Responsibility & Sustainability, Social Equity St. Marys Place Public Realm Economic Vibrancy and Growth Management City Administration Not Applicable 2024 Noloan L Schild Destination Medical Center 0 105 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 0 500,000 2026 2027 20282025 Construction Architect/Design 500,000 2024 0 Existing 4,000,000 0 0500,000 3,500,000 0 0 3,500,000 2029 3,500,000 500,000 0 202920272025 4,000,000 DMC projects support the DMC Development Plan and take into consideration other City plans such as the comprehensive plan, bicycle master plan, park master plan, etc. 2024 4,000,000 2028 0 0 00 0 500,000 3,500,000 As part of the design and implementation operations and maintenance costs will be considered and the City and DMC teams will evaluate what sources are most appropriate to pay for any annual increase in operating costs. 50 0 0 0 0 0 0 00 0 State DMC Funds 3,500,000 0 0 2026 106 Department: Division: Contact Person: Location: Project Category: Department Priority: Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan Implementation of the circulator route was a top priority of the Integrated Transit Studies. The circulator route is intended to develop a cost-effective transitway that increases transit use among corridor residents, commuters, businesses, patients, students, and visitors. Also, to catalyze and support housing and economic development along the corridor. Last, to support healthy, active communities and encourage sustainability. Destination Medical Center City Administration 234 Ward 2, Ward 4 The Rochester Downtown Transit Circulator will provide high quality downtown public transportation service for residents, commuters, businesses, patients, students, and visitors that will support the City of Rochester and Destination Medical Center (DMC) district transportation, economic development, and livability goals and substantially increase public transportation use downtown. Environmental Stewardship, Fiscal Responsibility & Sustainability, Public Safety, Social Equity 8600 J8707 Rapid Transit Implementation Economic Vibrancy and Growth Management, Quality Services for Quality Living City Administration Not Applicable 2024 Noloan L Schild Destination Medical Center 0 107 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 500,000 500,000 34,121,423 2026 2027 20282025 Architect/Design Project Management Construction 35,121,423 2024 0 0 0 0 0 0 New 114,656,047 4,948,292 7,053,895 0 0 0 0 0 024,700,000 750,000 500,000 500,000 71,480,729 7,053,895 0 0 7,422,437 0 0 60,110,000 2029 1,000,000 1,100,000 750,000 3,718,569 5,577,854 225,000 150,000 0 202920272025 11,488,419 17,232,628 225,000 150,000 84,810,000 DMC projects support the DMC Development Plan and take into consideration other City plans such as the comprehensive plan, bicycle master plan, park master plan, etc. 2024 114,656,047 2028 0 100,000 6,953,895 0 0 0 0 0 2,821,558 4,232,337 0 0 0 0 0 35,121,423 72,480,729 Annual operating costs are planned to be covered by federal funding and/or rider fees. This annual operating cost estimate starts with the current hourly operating rate paid by RPT to First Transit. This hourly rate has been escalated by 30% to account for inflation and changes to contract. Then service was expanded from 5am to midnight. 50 112,556,047 0 0 0 0 0 0 0 0 00 4,228,311 Special Assessment Bonds Transit Aid County DMC Transit Aid State DMC Operating Transfer – From Sewer Utility Water Utility Federal Funds 72,480,729 0 0 0 2026 108 Department: Division: Contact Person: Location: Project Category: Department Priority: Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan Some redevelopment opportunities are not known in advance and therefore, these funds would be available if/when a valuable opportunity arises to allow the City and DMC to invest in the community. The funds would be used in accordance with the approved expenditures outlined in the DMC legislation and strategically used to invest in the downtown area or areas that arise which would advance the DMCC Board's stated priorities such as such as bio-med-tech, workforce housing, and downtown property support. Actual use of any of this funding requires additional, specific authorization by the DMCC and City Council. Destination Medical Center City Administration 288 NA Strategic Redevelopment would include any opportunity for redevelopment within the DMC boundaries that the DMCC and City of Rochester see as valuable to their collaborative long term goals and strategic plans. Compassion, Environmental Stewardship, Fiscal Responsibility & Sustainability, Public Safety, Social Equity 8600 8633 Strategic Redevelopment Economic Vibrancy and Growth Management Destination Medical Center CIP (BU 8600) Not Applicable 2024 Noloan L Schild Destination Medical Center 10 109 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 10,000,000 2026 2027 20282025 Implementation 10,000,000 2024 3,000,000 New 25,000,000 3,000,000 3,000,00010,000,000 3,000,000 3,000,000 3,000,000 2029 25,000,000 3,000,000 202920272025 25,000,000 Would invest in projects/opportunities that are in alignment with the strategic plans of both the DMC and City of Rochester. 2024 25,000,000 2028 3,000,000 3,000,0003,000,000 3,000,000 10,000,000 3,000,000 Any increase in operating costs would have to be projected & considered at the time funds were being considered to be expended on a redevelopment opportunity. Any increase in operating costs would have to be projected & considered at the time funds were being considered to be expended on a redevelopment opportunity. 50 3,000,000 3,000,000 3,000,000 3,000,000 3,000,0003,000,000 0 State DMC Funds 3,000,000 3,000,000 2026 110 Department: Division: Contact Person: Location: Project Category: Department Priority: Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan As part of the approved 2021 Downtown Waterfront SE Small Area Plan, a series of public realm improvements were identified to create a cohesive, connected, and activated redevelopment district. These public real improvement projects not only provide access and connections to the district, they also elevate the overall experience, enhance the natural systems on a degraded site, and provide confidence that the Destination Medical Center and the City of Rochester are committed to redeveloping the site and improving adjacent neighborhoods. Broadway and 6th Street SE City Administration 353 Ward 2, Ward 4 Construction of a 6th Street Bridge to connect East and West portions of 6th Street across the Zumbro River is a key component to realizing the vision in the approved Downtown Waterfront Small Area Plan. This project will complete the street and trail network assisting in enhanced connections between downtown Rochester, neighborhoods to the Southeast and all nearby amenities. The project will include enhanced pedestrian and biking mobility with Complete Streets and new/improved trails and provide equitable transportation access to all residents. It will also decrease vehicle miles traveled and reduce greenhouse gas emissions. The project's planned river improvements include modification of the flood control system through a combination of wide stairways, ramps and terraces to bring people to an enhanced waterfront trail and closer proximity to the river; thereby leveraging the Zumbro River. regional and local destination. Environmental Stewardship, Public Safety, Social Equity 6th Street Bridge, 6th Street & Waterfront Connectivity Economic Vibrancy and Growth Management Destination Medical Center CIP (BU 8600) Submitted - Approved 2024 Noloan L Schild Destination Medical Center 0 111 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 1,500,000 2,500,000 2026 2027 20282025 Construction Architect/Design 4,000,000 2024 0 0 New 28,200,000 1,300,000 0 00 22,400,000 500,000 1,300,000 5,000,000 17,900,000 2029 25,200,000 3,000,000 4,000,000 0 202920272025 10,300,000 17,900,000 A pedestrian bridge connection is supported by the Rochester Downtown Mobility Plan. The project was foreseen within the DMC Development Plan. The Transit-Oriented Development (TOD) Station Area Planning Study supports the development of a 6th Street Bridge to be supportive of increased ridership onto Downtown Rapid Transit. 2024 28,200,000 2028 1,300,000 0 0 0 1,300,000 0 0 4,000,000 22,900,000 The annual operating costs will need to be estimated during the design of the project and will be dependent upon different aspects of the project. The team will then be able to consider how to pay for any increases. The annual operating costs will need to be estimated during the design of the project and will be dependent upon different aspects of the project. The team will then be able to consider how to pay for any increases. 50 0 0 0 0 0 0 00 0 State DMC Funds Federal Funds 22,900,000 0 0 2026 112 Department: Division: Contact Person: Location: Project Category: Department Priority: Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan District energy will replace less efficient systems and reduce our carbon footprint. A system such as this would reduce cost and ongoing operations and maintenance fees, while providing an efficient, reliable, and carbon-free heating and cooling source by 2030. The concept could also work to improve aesthetics, provide more building space for programming instead of mechanical equipment, reduce air pollution and emissions in Rochester, and the DES technology allows for further optimization with renewable systems and other operational practices. Additionally, the noted government buildings are currently heated & cooled by the Olmsted County waste to energy facility and related steam lines. Due to cost to operate and maintain the steam lines the county has opted to decommission these lines by October 2023 and therefore the city government buildings need an alternative heating and cooling system in place by that time. Destination Medical Center Public Works 286 NA This project would add heating and cooling capacity to areas in the downtown Destination Medical Center district. Equipment evaluated for this concept can create both heating and cooling energy simultaneously and in a very efficient manner. Downtown government buildings (Library, City Hall, Mayo Civic Center, Civic Theater and Art Center) will be the first facilities to be heated and cooled by this system. Future private facilities or developments could also be served by the system. Environmental Stewardship, Fiscal Responsibility & Sustainability Downtown District Energy System Economic Vibrancy and Growth Management, Quality Services for Quality Living Destination Medical Center CIP (BU 8600) Not Applicable 2024 Noloan L Schild Destination Medical Center 0 113 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 7,200,000 2026 2027 20282025 Construction 7,200,000 2024 0 New 7,200,000 0 07,200,000 0 0 0 2029 7,200,000 0 202920272025 7,200,000 The project would be in alignment with long term strategies and the development plans of both the DMC and City of Rochester. 2024 7,200,000 2028 0 00 0 7,200,000 0 Operating costs and cost recovery shall be projected and considered as part of the implementation of this project. Operating costs and cost recovery shall be projected and considered as part of the implementation of this project. 50 0 0 0 0 00 0 State DMC Funds 0 0 2026 114 Department: Division: Contact Person: Location: Project Category: Department Priority: Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan This project is driven by the need to support Destination Medical Center (DMC) growth in the downtown core. Added benefits include the removal of a sanitary siphon that is requiring additional maintenance due to the DMC growth. Destination Medical Center City Administration 225 NA This relief project diverts flows from 2nd Street SW to 4th Street SW along 3rd Avenue SW to provide added capacity to the trunk sewers to the north of 2nd Street SW. Conceptual design is complete. Construction is planned for 2024. Fiscal Responsibility & Sustainability 3rd Ave SW Sewer Capacity Bypass Economic Vibrancy and Growth Management City Administration Not Applicable 2024 Noloan L Schild Destination Medical Center 0 115 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 0 3,000,000 2026 2027 20282025 Architect/Design Construction 3,000,000 2024 0 0 Existing 3,000,000 0 0 01,500,000 0 0 0 0 0 2029 0 3,000,000 1,500,000 0 202920272025 1,500,000 1,500,000 DMC projects support the DMC Development Plan and take into consideration other City plans such as the comprehensive plan, bicycle master plan, park master plan, etc. 2024 3,000,000 2028 0 0 0 0 0 0 0 3,000,000 0 This project replaces existing infrastructure and therefore minimally impacts operating costs. Initially, this will actually decrease maintenance costs currently being incurred on the older infrastructure. 100 0 0 0 0 0 0 00 0 Operating Transfer – From Sewer Utility State DMC Funds 0 0 0 2026 116 Department: Division: Contact Person: Location: Project Category: Department Priority: Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan To support the efforts of the DMCC on Destination Medical Center (DMC) activities. Destination Medical Center City Administration 210 NA Contributions to the Destination Medical Center Corporation (DMCC) for DMCC expenses. Fiscal Responsibility & Sustainability 8600 8602 Destination Medical Center Corporation Expenses Economic Vibrancy and Growth Management City Administration Not Applicable 2024 Noloan L Schild Destination Medical Center 0 117 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 238,125 2026 2027 20282025 Overhead 238,125 2024 2ϰϭ,6ϱϴ Existing 1,521,078 250,180 Ϯϰϳ,6ϵϵϮϭϴ,ϵϯϬ 244,078 250,180 2Ϯϰ,ϰϬϯ 2029 1,521,078 256,434 202920272025 ϭ,ϯϵϴ,ϰ6ϳ DMC projects support the DMC Development Plan and take into consideration other City plans such as the comprehensive plan, bicycle master plan, park master plan, etc. 2024 1,521,078 2028 250,180 2ϯϱ,ϳ6ϰ2ϯϬ,Ϭϭϯ 269,416 238,125 244,078 The amount being budgeted for 202ϰ is a decrease from the prior year (202ϯ). 1 262,845 269,416 269,416 256,434 262,845256,434 0 Sales Tax DMC 244,078 262,845 2026 118 Department: Division: Contact Person: Location: Project Category: Department Priority: Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan There are a variety of expenditures that arise in the project process and these funds are available to cover the more minor items that would be considered administrative to carrying out a DMC project. Destination Medical Center City Administration 213 NA This budget item represents the administrative costs that may be incurred by the City of Rochester in the administration of Destination Medical Center (DMC) projects. Fiscal Responsibility & Sustainability 8600 8601 Administrative Costs for Destination Medical Center Projects Economic Vibrancy and Growth Management City Administration Not Applicable 2024 Noloan L Schild Destination Medical Center 4 119 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 100,000 2026 2027 20282025 Overhead 100,000 2024 100,000 Existing 600,000 100,000 100,000100,000 100,000 100,000 100,000 2029 600,000 100,000 202920272025 600,000 DMC projects support the DMC Development Plan and take into consideration other City plans such as the comprehensive plan, bicycle master plan, park master plan, etc. 2024 600,000 2028 100,000 100,000100,000 100,000 100,000 100,000 The administrative budget being presented for 202ϰ is equal to the prior year (202ϯ). 1 100,000 100,000 100,000 100,000 100,000100,000 0 Sales Tax DMC 100,000 100,000 2026 120 Department: Division: Contact Person: Location: Project Category: Department Priority: Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan To support the efforts of the DMC EDA on DMC activities and approved 2021 work plan objectives. Destination Medical Center City Administration 211 NA Contributions to the Destination Medical Center (DMC) Economic Development Authority (EDA) for expenses incurred to implement the work plan of the Destination Medical Center Corporation (DMCC). Fiscal Responsibility & Sustainability 8600 8602 Destination Medical Center Corporation EDA Expenses Economic Vibrancy and Growth Management City Administration Not Applicable 2024 Noloan L Schild Destination Medical Center 0 121 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 2,842,507 2026 2027 20282025 Overhead 2,842,507 2024 3,137,862 Existing 18,157,453 2,986,409 3,216,0362,842,507 2,913,570 2,986,409 2,913,570 2029 18,157,453 3,061,069 202920272025 18,157,453 DMC projects support the DMC Development Plan and take into consideration other City plans such as the comprehensive plan, bicycle master plan, park master plan, etc. 2024 18,157,453 2028 2,986,409 3,061,0692,986,409 3,216,036 2,842,507 2,913,570 The amount being budgeted for in 202ϰ is approximately $Ϯϭϵ,ϬϬϬ higher than the prior year (202Ϯ) budget amount. 1 3,137,862 3,216,036 3,216,036 3,061,069 3,137,8623,061,069 0 Sales Tax DMC 2,913,570 3,137,862 2026 122 Department: Division: Contact Person: Location: Project Category: Department Priority: Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan Formal project management is necessary on DMC projects to help ensure various aspects of the projects that include, but are not limited to program administration, construction administration, planning, analysis, contract management, compliance, milestone monitoring and budget monitoring. Destination Medical Center City Administration 212 NA This budget amount will cover the salary and benefits associated to the City's Project Management team that is dedicated to Destination Medical Center (DMC) project delivery. This replaces funds previously expended for contracted services with a consulting firm. Fiscal Responsibility & Sustainability 8600 8614 City DMC Project Management Economic Vibrancy and Growth Management City Administration Not Applicable 2024 Noloan L Schild Destination Medical Center 0 123 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 1,157,454 2026 2027 20282025 Project Management 1,157,454 2024 1,310,862 Existing 7,555,804 1,247,698 1,343,6341,157,454 1,217,266 1,247,698 1,217,266 2029 7,555,804 1,278,890 202920272025 7,555,804 DMC projects support the DMC Development Plan and take into consideration other City plans such as the comprehensive plan, bicycle master plan, park master plan, etc. 2024 7,555,804 2028 1,247,698 1,278,8901,247,698 1,343,634 1,157,454 1,217,266 The amount being budgeted for 2024 is an increase from the prior year (2023) of approximately $161,177. 1 1,310,862 1,343,634 1,343,634 1,278,890 1,310,8621,278,890 0 Sales Tax DMC 1,217,266 1,310,862 2026 124 Department: Division: Contact Person: Location: Project Category: Department Priority: Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan The update of the DMC Development Plan is required every 5 years by legislation and will be informed by data and information that has evolved since the original plan was adopted and/or the most recent update was performed. Examples of updates to the plan include fiscal and economic impact analysis, organizational capacity, etc. Destination Medical Center City Administration 214 NA This project will be to update the Destination Medical Center (DMC) Development Plan. Environmental Stewardship, Fiscal Responsibility & Sustainability, Social Equity 8600 Destination Medical Center Development Plan Update Economic Vibrancy and Growth Management Destination Medical Center CIP (BU 8600) Not Applicable 2024 Noloan L Schild Destination Medical Center 0 125 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 750,000 2026 2027 20282025 Consulting or Study 750,000 2024 0 Existing 1,050,000 0 0750,000 300,000 0 300,000 2029 1,050,000 0 202920272025 1,050,000 DMC projects support the DMC Development Plan and take into consideration other City plans such as the comprehensive plan, bicycle master plan, park master plan, etc. 2024 1,050,000 2028 0 00 0 750,000 300,000 A revision of the development plan will not create an increase or decrease in general operating costs. 5 0 0 0 0 00 0 State DMC Funds 300,000 0 2026 126 Department: Division: Contact Person: Location: Project Category: Department Priority: Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan There is a City Council Resolution to provide the payment/payback of $1,200,000 annually, starting in 2018, to pay back the Flood Control Reserves in the amount of $7,200,000. Destination Medical Center City Administration 217 NA These funds represent Destination Medical Center's (DMC) repayment of a loan from the City of Rochester's Flood Control Reserves that were used to initiate efforts in the beginning years of DMC. Fiscal Responsibility & Sustainability 8600 8605 Repayment to Flood Control Economic Vibrancy and Growth Management City Administration Not Applicable 2024 Noloan L Schild Destination Medical Center 6 127 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 1,200,000 2026 2027 20282025 Overhead 1,200,000 2024 0 Existing 1,200,000 0 01,200,000 0 0 0 2029 1,200,000 0 202920272025 1,200,000 DMC projects support the DMC Development Plan and take into consideration other City plans such as the comprehensive plan, bicycle master plan, park master plan, etc. 2024 1,200,000 2028 0 00 0 1,200,000 0 The majority of the work performed utilizing the funds was related to 1) the Chateau Theatre purchase and 2) consulting related to various aspects of the DMC Development Plan. Operating cost impacts were marginal. 2 0 0 0 0 00 0 Sales Tax DMC 0 0 2026 128 Department: Division: Contact Person: Location: Project Category: Department Priority: Ward: Project Description: Project Number: CIP Business Unit: What is the grant status for the project?: Foundation Principles Supported: Strategic Priorities Supported: Purpose, Justification & Benefits: Capital Improvement Plan Will enhance mobility for citizens, visitors, workers, etc. commuting to areas within the Destination Medical Center. Destination Medical Center City Administration 284 NA The details of this transportation related project have not yet been determined, but the project and these funds represent a phase two project implementation in relation to the Integrated Transit Studies. Funding years and amounts will continue to evolve as the development of a phase II plan is finalized. Phase 2 of the transit plan will explore the extension of the Rapid Transit system to the southeast portion of the city. Environmental Stewardship, Fiscal Responsibility & Sustainability, Public Safety, Social Equity ITS Implementation Phase II Economic Vibrancy and Growth Management, Quality Services for Quality Living Destination Medical Center CIP (BU 8600) Not Applicable 2024 Noloan L Schild Destination Medical Center 17 129 Anticipated Funding Source Funding Request Row Total: Major Expense Category Project Cost Breakdown Row Total: Describe how operating cost increases/Decreases and include details such as personnel costs, materials, contracts, energy savings, etc.: Describe how this project implements recommendations from other plans adopted by the City and related groups: Project Cost Breakdown: Department Funding Request: If new infrastructure, discuss how the department will pay for the increased annual operating costs: Total Current 6 Yrs Is this request for new or existing infrastructure: What is the expected useful life of the project/improvement (in years): What is the estimated annual operating cost increase (Decrease) for this project ($): Operations & Capital Asset Maintenance: Total Current 6 Yrs 0 2026 2027 20282025 Implementation 0 2024 0 0 New 8,500,000 1,000,000 0 00 0 1,000,000 0 0 2029 8,500,000 0 7,500,000 202920272025 5,100,000 3,400,000 DMC projects support the DMC Development Plan and take into consideration other City plans such as the comprehensive plan, bicycle master plan, park master plan, etc. 2024 8,500,000 2028 1,000,000 4,500,000 3,000,000 600,000 400,000 0 0 0 Operating costs and cost recovery shall be projected and considered as part of the development of the phase II plan and implementation strategy. Operating costs and cost recovery shall be projected and considered as part of the development of the phase II plan and implementation strategy. 75 0 0 0 7,500,000 07,500,000 0 Transit Aid State DMC Transit Aid County DMC 0 0 2026 130 1 Destination Medical Center Economic Development Agency & City of Rochester DMC Project Management Team 2024 Workplan 131 Table of Contents 1. EXECUTIVE SUMMARY 2. CITY OF ROCHESTER DMC PROJECT MANAGEMENT RESPONSIBILITIES 3. DMC EDA STATUTORY ROLE AND RESPONSIBILITIES 4. DMC CAPITAL AND OPERATING BUDGET PRINCIPLES 5. 2024 WORKPLAN OUTCOMES 6. 2024 DMC EDA AND PROJECT MANAGEMENT TEAM BUDGETS 1. Executive Summary In 2024, the Destination Medical Center (“DMC”) initiative will focus on advancing the strategic development priorities affirmed by the Destination Medical Center Corporation Board of Directors and the City of Rochester Common Council in order to achieve the goals of the DMC initiative. Additionally, the DMC EDA will work with our stakeholders to produce the 2025 update to the DMC development plan. DMC GOALS a) Create a comprehensive strategic plan with a compelling vision that harnesses the energy and creativity of the entire community b) Leverage the public investment to attract more than $5 billion in private investment to Rochester and the region c) Create approximately 35,000 – 45,000 new jobs, with workforce development strategies that support that growth d) Generate approximately $7.5 - $8.0 billion in new net tax revenue over 35 years e) Achieve the highest quality patient, companion, visitor, employee, and resident experience, now and in the future 2024 STRATEGIC DEVELOPMENT PRIORITIES a) Heart of the City b) Discovery Square c) Mobility d) Riverfront Development e) Rapid-Transit-Oriented Development Additionally, the DMC EDA and City of Rochester DMC project management team have incorporated significant business development and recruitment, marketing/awareness, equitable economic development, experience, and community engagement initiatives into the workplan in order to support these strategic priorities. 2. City of Rochester DMC Project Management Team Responsibilities In January 2019, the Destination Medical Center Corporation approved a proposal to assign new and existing DMC- related project management responsibilities to DMC-dedicated City of Rochester staff. For example, the City of Rochester DMC Project Management team supports the DMC initiative in these areas: a) Project delivery b) Targeted business and workforce development and utilization c) LINK rapid transit development d) Subdistrict public project construction management, including Riverfront and Discovery Walk 132 3 3. DMC EDA Statutory Role and Responsibilities The DMC EDA assists the Destination Medical Center Corporation (“DMCC”) and the City of Rochester (“City”) in implementing the development planning and promotion, development services, and marketing, outreach and communication activities required to achieve the goals of the DMC development plan. The DMC legislation identified several key responsibilities of the DMC EDA in addition to its role as an advisory agency to the DMCC and City: a) Drafting and implementing the development plan, including soliciting and evaluating proposals for development and evaluating and making recommendations to the DMCC and the City regarding those proposals b) Seeking financial support for the DMCC, the City, and projects c) Partnering with other development agencies and organizations, the city, and the county in joint efforts to promote economic development and establish a destination medical center d) Supporting and administering the planning and development activities required to implement the development plan e) Developing and updating the criteria for evaluating and underwriting development proposals f) Providing transactional services in connection with approved projects g) Working with the corporation to acquire and facilitate the sale, lease, or other transactions involving land and real property h) Assisting the DMCC or City and others in applications for federal grants, tax credits, and other sources of funding to aid both private and public development i) Facilitating private investment through development of a comprehensive marketing program to global interests j) Developing patient, visitor, and community outreach programs k) Preparing and supporting the marketing and promotion of DMC l) Preparing and implementing a program for community and public relations 133 4 4. DMC Capital and Operating Budget Principles Capital Improvement Program Principles a) Enable Opportunity New jobs, new investment, and tax base growth are critical to a vibrant city. b) Be Extraordinary Make investments befitting a global destination medical center, the state’s largest-ever economic development partnership, and an increasingly diverse community. c) Incorporate Innovation Encourage projects to focus on cutting edge business sectors, innovative collaborative processes, novel business models, new materials, new technologies, etc. d) Be Sustainable Always consider the financial, environmental, social, and other long-term effects of proposed capital projects. e) 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. DMC EDA and City of Rochester DMC Project Management Team Operating Budget Principles a) Fulfill responsibilities assigned to the DMC EDA by Minnesota Statutes 469.40-469.47 b) Achieve DMC Goals and successfully implement the DMC Development Plan c) Advance strategic development priorities d) Achieve annual work plan outcomes e) Incorporate complementary planning and implementation activities assigned to the City of Rochester DMC Project Management Team 5. 2024 Workplan Outcomes The DMC workplan is primarily organized around five categories of DMC investment: Mobility; Public Realm; Private Investment; Streets and Sewers; and Plan Implementation. These categories are also used to organize the DMC Capital Improvement Program. MOBILITY 2035 Goal Phase 2 (2025) Goal 2024 Outcome Create 35,000- 45,000 new jobs Achieve the highest quality patient, visitor, and community member experience Reduce drive-alone mode share from 71% to 58% Metrics: Continue mode-shift data-gathering, reporting, and community engagement LINK Rapid Transit: Advance transit village and station development; meet state and federal approval milestones; advance planning for integration into existing City and Mayo Clinic transit networks Mode shift: Expand active transportation strategies and enact programs to expand alternative commuting 134 5 PUBLIC REALM 2035 Goal Phase 2 (2025) Goal 2024 Outcome Attract more than $5 billion in private investment Achieve the highest quality patient, visitor, and community member experience Demonstrate the economic and experience value of the Heart of the City public space investment by the following measures: a)Increase pedestrian traffic in the Peace Plaza area by 50% b)Businesses report increased revenue c)Visitors and community members report they are more likely to visit downtown Heart of the City: Partner with community organizations to promote diverse and inclusive uses of Heart of the City Chateau Theatre: Support the execution of the activation strategy and ongoing capital maintenance Discovery Walk construction completed, activities take place regularly with increased involvement by under- represented community members, new development is being considered Discovery Walk: Implement Business Forward and community engagement strategies, activate newly opened Discovery Walk Discovery Walk: Complete construction, including: Grand Opening Commemoration; Promoting understanding of a new downtown community space; Engage to ensure a diverse use of Discovery Walk Demonstrate the value of public realm/infrastructure investments Rapid Transit: Develop community-supported station area public realm concepts and neighborhood connections West Transit Village: Support for development partner and establish stakeholder-supported site development and public infrastructure plan Education/Recreation: Promote Soldiers Memorial Field Park investment through programming and marketing partnerships Downtown Riverfront: Pre-development infrastructure and site preparation TRANSFORMATIVE PRIVATE DEVELOPMENT 2035 Goal Phase 2 (2025) Goal 2024 Outcome Attract more than $5 billion in private investment Develop 330,000 SF of Bio-Med-Tech space Discovery Square: Three Discovery Square construction underway Discovery Square: Advance workforce development Simulation Lab plan and funding strategy Discovery Square: Advance multi-purpose Maker Space plan and funding strategy Discovery Square: Advance multi-purpose Shared Lab space plan and funding strategy Attract more than $5 billion in private investment Achieve the highest quality patient, visitor, and community member experience More than $1 billion of new private development, consistent with development plan, underway Small capital projects: Develop plan to provide funds for strategic investment in small capital projects, for launch in 2024 Pre-development Site Activation: Interim use of one pre- development site Retail: Support community partner(s) in launching retail incubator 135 6 PLAN IMPLEMENTATION: MARKETING AND BUSINESS DEVELOPMENT 2035 Goal Phase 2 (2025) Goal 2024 Outcome Attract more than $5 billion in private investment More than $1 billion of new private development underway Awareness Building (In-market): Grow relationships with key in- market partners at Mayo Clinic and DEED. Support events and activities with the potential to expose Rochester to industry leaders, site selectors, and the venture capital community. Awareness Building (Site Selection): Attend, exhibit, present, and network with key Site Selection, Real Estate, and Incentive Consultants from around the world. Present Rochester and DMC as a preferred business destination at least 1x per quarter. Awareness Building (Industry): Attend, exhibit, present, and network with key decision makers from targeted life science businesses around the world. Present Rochester and DMC as a preferred business destination at least 1x per month. Create 35,000-45,000 new jobs Develop 330,000 SF of Bio-Med-Tech space Ecosystem Building (Industry): Work with partners to define Rochester's Life Sciences ecosystem, assess ecosystem business needs, and begin building supportive programming Lead Generation: Generate a minimum of 150 direct leads through targeted outreach efforts; Conduct 6-8 lead generation campaigns focused on specific domestic and international markets, or specific industry niches within life science and medical technology. Awareness Building (Print+Digital): Develop enhanced marketing collateral to be delivered via digital means (DMC website, LinkedIn) and physical collateral (printed profiles, brochures, direct mail) that is based in solid economic data, relevant market comparisons, and compelling visual elements Awareness Building (Digital): Streamline user experience on www.dmc.mn, including adding content and removing outdated or unnecessary information TRANSFORMATIVE PRIVATE DEVELOPMENT 2035 Goal Phase 2 (2025) Goal 2024 Outcome Attract more than $5 billion in private investment Develop 330,000 SF of Bio-Med-Tech space Discovery Square: Three Discovery Square construction underway Discovery Square: Advance workforce development Simulation Lab plan and funding strategy Discovery Square: Advance multi-purpose Maker Space plan and funding strategy Discovery Square: Advance multi-purpose Shared Lab space plan and funding strategy Attract more than $5 billion in private investment Achieve the highest quality patient, visitor, and community member experience More than $1 billion of new private development, consistent with development plan, underway Small capital projects: Develop plan to provide funds for strategic investment in small capital projects, for launch in 2024 Pre-development Site Activation: Interim use of one pre- development site Retail: Support community partner(s) in launching retail incubator 136 7 PLAN IMPLEMENTATION: ENERGY AND SUSTAINABILITY 2035 Goal Phase 2 (2025) Goal 2024 Outcome Attract more than $5 billion in private investment Achieve the highest quality patient, visitor, and community member experience Reduce the emissions associated with the new construction and existing buildings sector Metrics: Benchmarking program includes 153 buildings, including buildings in DMC district Best Practices: Engage in at least 2 national conferences, and 10 local and regional meetings Metrics: Develop an accurate Air Quality visualization platform downtown to enhance community understanding Progress toward DMC and Rochester GHG, energy and sustainability goals across sectors Energy Reduction: Complete 9 projects identified in Phase 1 of Strategic Energy Project Plan and begin work on Phase 2 projects Emissions Reduction: Reduce emissions from transit and building sector PLAN IMPLEMENTATION: HEALTH AND EQUITY IN ECONOMIC DEVELOPMENT 2035 Goal Phase 2 (2025) Goal 2024 Outcome Achieve the highest quality patient, visitor, and community member experience Apply health in design process to 10 infrastructure projects Equitable Economic Development: Build a co-design understanding across the community, train 14 facilitators, and local leadership on its elements Attract more than $5 billion in private investment Achieve the highest quality patient, visitor, and community member experience More than $1 billion of new private development underway Equitable Economic Development: Co-host 2 events in Rochester that support minority owned businesses and BIPOC/Emerging Developers in the DMC district Equitable Economic Development: Create implementation plan for DEI assessment recommendations, convene 6 meetings the Equity Alliance, offer 6 equity series in 2024 PLAN IMPLEMENTATION: TARGETED BUSINESS AND WORKFORCE DEVELOPMENT 2035 Goal Phase 2 (2025) Goal 2024 Outcome Ensure compliance with specific requirements of the DMC Act a)Women Workforce Participation: 7% b)Minority Workforce Participation: 15% c)Targeted Business Goal: 7% d)Heavy Construction Targeted Business Goal: 4% Targeted Business and Workforce Utilization: Operationalize Prevailing Wage and Workforce Utilization on DMC Projects Targeted Business and Workforce Participation: Create a plan to improve workforce opportunities within DMC district to reach targeted business and workforce participation goals & diversify workforce and business participation Targeted Business and Workforce Utilization: Improve Targeted Business contracting performance results against DMC targets Targeted Business and Workforce Utilization: Improve Workforce participation (People of Color and Women) performance results 137 8 PLAN IMPLEMENTATION: COMMUNITY ENGAGEMENT 2035 Goal Phase 2 (2025) Goal 2024 Outcome Build a community of stakeholders that see themselves in the DMC vision Community reports higher understanding of the DMC initiative and its importance to the local community Targeted Marketing: Increase local awareness of DMC projects and initiatives Community Engagement: Manage business and community relationships with key stakeholders and audiences through strategic partnerships, presentations, and other means PLAN IMPLEMENTATION: EXPERIENCE 2035 Goal Phase 2 (2025) Goal 2024 Outcome Achieve the highest quality patient, companion, visitor, employee, and resident experience Experience Improvement: Strategic downtown partners report improved outcomes related to Downtown Task Force Action Plan Experience Improvement: Downtown stakeholders report increased experience improvement 6. 2024 DMC EDA AND PROJECT MANAGEMENT TEAM BUDGETS The budget, developed to achieve the strategic development objectives and outcomes identified in the workplan, has been prepared by DMC EDA and DMC City of Rochester Project Management teams with the advice of DMC Corporation and DMC EDA board members and City of Rochester administrative leaders. • The 2024 DMC EDA funding request to the Destination Medical Center Corporation of $2,842,507. The proposed budget includes new investments in DMC’s business recruitment and lead generation strategies. • 2024 DMC EDA funding contributed by Mayo Clinic towards the operational, project, and program expenses of the DMC EDA totals $1,531,700. • The 2024 DMC City of Rochester Project Management team funding request to the Destination Medical Center Corporation is $1,157,454. • DMC-funded costs noted above are accounted for in the 2024 Capital Plan. 138 2023 DMC Funding 2024 DMC Funding 2023 Mayo Clinic Funding 2024 Mayo Clinic Funding YOY Funding Change (%) Staff 1Payroll $1,088,746 $1,471,393 $500,000 $500,000 19.4% 2 Benefits $185,026 $220,709 16.2% 3 Payroll Expenses $7,000 $7,000 0.0% 4 Transit Subsidy $8,400 $15,600 46.2% 5 Reimbursements SUBTOTAL $1,289,172 $1,714,702 $500,000 $500,000 19.2% Agency Operations 6 Rent and Utilities $1,236 $1,279 $140,000 $140,000 0.0% 7 Equipment Rentals and Furniture 8 Office Supplies and Consumables $10,000 $10,000 0.0% 9 Room Rental 10 Postage and Shipping $1,500 $1,500 0.0% 11 Website Drafting and Hosting $19,200 $19,620 2.1% 12 IT Hardware, Software, and Support $35,173 $34,720 -1.3% 13 Miscellaneous Costs $3,865 $6,960 $14,015 $8,000 -19.5% SUBTOTAL $70,974 $64,079 $154,015 $158,000 -1.3% Economic Development 14 Print and Collateral $60,000 $45,000 -33.3% 15 Outreach and Local Events $30,000 $47,000 $46,000 $75,000 37.7% 16 Subscriptions and Memberships $8,052 $10,676 $420 20.6% 17 Conferences, Meetings, Travel, and Participation $139,320 $83,100 $20,955 $156,900 33.2% 18 Economic Development Programming $514,100 $395,050 $257,000 $509,800 14.8% SUBTOTAL $691,472 $535,826 $384,375 $786,700 18.7% Professional Services 19 Legal $40,000 $30,000 -33.3% 20 Website Management and CRM $14,000 $3,600 $165,000 -4872.2% 21 Marketing, Communications, and Advertising $385,000 $310,000 $55,000 -41.9% 22 Strategic Public Relations $62,000 $62,000 0.0% 23 Contracted Support Staff $48,000 $91,000 $25,000 -24.7% 24 Financial Reporting Services $78,410 $76,300 -2.8% SUBTOTAL $517,410 $467,900 $373,000 $87,000 -60.5% Miscellaneous 25 Insurance and Taxes $54,500 $60,000 9.2% 26 Contingency SUBTOTAL $54,500 $60,000 9.2% TOTAL $2,623,528 $2,842,507 $1,411,390 $1,531,700 7.8% 2024 DMC EDA Operating Budget 139 2023 2024 YOY Change (%) Staff Costs Employee Services 995,277$ 1,032,543$ 3.7% Subtotal 995,277$ 1,032,543$ 3.7% Operational Costs Rents and Leases 2,500$ 500$ ‐80.0% Adv, Publishing, & Printing 7,778$ 7,778$ 0.0% Contractual Mtce & Repair 38,760$ 38,760$ 0.0% Expert & Professional Services 8,160$ 8,160$ 0.0% Communications 612$ 4,356$ 611.8% Travel/Training/Business Meals 8,237$ 12,547$ 52.3% Subscriptions/Bks/Memberships 5,177$ 5,650$ 9.1% Insurance and Bonds 27,398$ Materials and Supplies 2,100$ 2,800$ 33.3% Other Charges 11,568$ 16,962$ 46.6% Miscellaneous ‐$ Professional Development ‐$ Office ‐$ Information ‐$ Subtotal 84,892$ 124,911$ 47.1% TOTAL 1,080,169$ 1,157,454$ 7.2% 2024 City of Rochester DMC Project Management Budget 140 DRAFT DMCC Corporation 2024 Budget Worksheet Revised 9/18/2023 Proposed 2019 2020 2021 2022 2022 2023 2023 2024 Account Description Actual Actual Actual Budget Actual Budget Actual 6/30 Budget DMC Corporation Revenues 1,161,491 Interest Earned 6 Building Rent 34,017 8,190 2,546 38,588 22,973 34,017 22,681 36,607 Rents and Leases 34,017 8,190 2,546 38,588 22,973 34,017 22,681 36,607 Audit Services 3,150 3,300 4,500 4,500 4,550 4,600 2,100 6,000 Legal Consultants 146,785 148,749 132,323 160,000 107,351 150,000 67,843 (*) 140,000 Accounting Consultants 1,100 1,150 1,300 2,600 1,325 2,700 - 4,000 Other Expert & Professnl Srvc 10,418 7,865 15,771 15,000 2,612 15,000 1,876 15,000 Expert & Professional Services 161,452 161,064 153,894 182,100 115,837 172,300 71,819 165,000 Travel and training 322 153 146 5,000 491 5,000 5,000 Business meal expenses - - 1,000 1,000 1,000 Travel/Training/Business Meals 322 153 146 6,000 491 6,000 - 6,000 Comprehensive Liability Ins 13,607 14,055 13,596 20,000 13,128 20,000 7,358 11,323 Insurance - Misc others Insurance and Bonds 13,607 14,055 13,596 20,000 13,128 20,000 7,358 11,323 Contractual Services Contractual Services Professional & Contracted Srvcs 209,398 183,462 170,182 246,688 152,430 232,317 101,858 218,930 Other Supplies Supplies Materials and Supplies - Interest 20 5 9 30 19 Other Charges 25 25 25 Other Charges 45 30 34 0 30 0 19 Expenditures 209,443 183,493 170,216 246,688 152,460 232,317 101,877 218,930 Other Financing Uses DMC EDA Corporation - Net Revs - Exps 1,052,444 2,129,448 1,883,356 2,190,000 1,853,782 745,097 City Support: City DMCC Project Management 402,178 593,285 738,646 671,461 174,170 DMCC Administrative Support by City 18,887 100,000 28,041 5,929 Keep It Local Grants - COVID-19 Response 51,078 Total DMCC & EDA Expenditures 1,261,887 2,766,197 2,665,744 3,275,334 2,705,744 232,317 1,027,072 (*) This amount reflects fees from January - May 2023 of $63,272.60 plus $2,219.57 for June and $2,351.32 for July. 1745196-4.xlsx Page 1 of 1 DRAFT141 142 EXHIBIT A DMCC REQUEST FOR EXTENSION OF WORKING CAPITAL LOAN FOR 2024 To: City of Rochester, Minnesota (the “City”) 1. The undersigned authorized representative (the “Representative”) of the Destination Medical Center Corporation (“DMCC”) hereby authorizes and requests an extension of the Term of the Working Capital Loan Agreement (DMCC-City), dated April 30, 2015, as amended, by and between the City and the DMCC (the “Agreement”) and renewals of the DMCC Note and the EDA Note, in the amount and on the date specified below, in order to pay certain DMCC Eligible Expenses and to provide the EDA Tranche to pay certain EDA Eligible Expenses, pursuant to the terms and conditions of the Agreement. Capitalized terms not otherwise defined herein shall have the meanings given them in the Agreement. 2. The Representative certifies that (i) attached as Attachment 1 is a true and correct annual reconciliation of the DMCC Tranche Advances made through July 31, 2023 and the DMCC Eligible Expenses paid from such Advances, as required by Section 2.6 of the Agreement; (ii) each item for which the DMCC sought payment in Attachment 1 was a DMCC Eligible Expense; and (iii) the Advances received by the DMCC have not exceeded the limitations set out in Section 2.4(a) of the Agreement. 3. The Representative further certifies that attached as Attachment 2 is a true and correct copy of the EDA Request for Extension of the Working Capital Loan for 2024. 4. The DMCC hereby requests an extension of the Agreement Term and renewals of the DMCC Note and the EDA Note, in the amount of $1,000.00 as the DMCC Tranche Advance and in the amount of $100,000.00 as the EDA Tranche Advance, as such amounts may be adjusted by the City pursuant to Section 2.8(c) of the Agreement, for payment of DMCC Eligible Expenses and, as to the EDA Tranche, for payment of EDA Eligible Expenses. 5. The Representative further certifies that no portion of the amount requested in paragraph 4 above constitutes a DMCC Excess Request under Section 2.3 of the Agreement. 6. The Representative further certifies that this statement and all exhibits and attachments hereto, and documents furnished in connection herewith, shall be conclusive evidence of the facts and statements set forth herein and shall constitute full warrant, protection, and authority to the City for its actions taken pursuant hereto. Dated: ________________, 2023 Authorized DMCC Representative 1747324.DOCX 143 ATTACHMENT 1: RECONCILIATION OF DMCC TRANCHE ADVANCES Through July 31, 2023 144 DMCC Bank Account Beginning Bank Balance DMCC Bank Charges Adjustments - bank fees returned Adjustments - change in amount Interest Earnings EDA Funding Requested Actual Funded Checks Difference Ending Bank Balance Reconciling Items Interest Bank Fees Net Ending Bank Balance Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 3,418.00 895.04 898.36 1,000.00 1,000.00 4,000.00 3,875.14 7,125.40 1,001.28 1,000.17 1,000.46 1,001.03 104.96 101.64 99.22 106.95 101.59 101.30 105.98 102.87 112.09 114.27 114.56 112.48 0.31 1.75 1.99 0.35 1.38 4.21 2.97 182,223.73 137,024.29 270,117.73 100,925.97 113,020.45 169,491.52 220,595.40 157,763.47 105,953.76 170,650.09 158,864.30 241,601.59 179,805.73 137,129.25 270,318.59 101,032.92 116,122.04 172,631.44 226,824.89 175,668.67 107,089.39 176,166.03 158,975.22 245,927.21 3,163.79 2,875.00 23,928.44 1,025.00 5,402.76 4,215.08 (2,418.00) 104.96 200.86 106.95 3,101.59 (23.87) 3,354.49 (6,023.24) 110.63 113.18 110.92 110.54 895.04 898.36 1,000.00 1,000.00 4,000.00 3,875.14 7,125.40 1,001.28 1,000.17 1,000.46 1,001.03 1,002.06 - - - - - - - - - - - - - - - - - - - - - - - - 895.04 898.36 1,000.00 1,000.00 4,000.00 3,875.14 7,125.40 1,001.28 1,000.17 1,000.46 1,001.03 1,002.06 895.04 898.36 1,000.00 1,000.00 4,000.00 3,875.14 7,125.40 1,001.28 1,000.17 1,000.46 1,001.03 1,002.06 0.00 0.00 0.00 (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) 2022 ATTACHMENT 1 DMCC Working Capital Loan Account Reconciliation 2022 - 2023 A1-1 145 DMCC Bank Account Beginning Bank Balance DMCC Bank Charges Adjustments - bank fees returned Adjustments - change in amount Interest Earnings EDA Funding Requested Actual Funded Checks Difference Ending Bank Balance Reconciling Items Interest Bank Fees Net Ending Bank Balance Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1,002.06 3,183.45 1,003.42 1,000.96 1,001.71 1,004.48 134,000.39 1,003.12 1,003.12 1,003.12 1,003.12 1,003.12 113.79 118.90 110.91 114.67 114.45 113.92 113.15 1,293.00 3.24 4.91 4.64 3.92 5.05 4.87 16.47 187,944.61 126,146.94 201,229.07 164,428.41 225,818.79 116,442.38 372,526.04 194,343.55 133,632.28 201,332.88 170,278.58 232,328.34 249,547.34 243,921.07 5,400.00 9,551.38 5,738.67 6,397.38 4,295.62 998.94 (2,066.04) 103.81 111.50 112.17 133,104.96 (132,900.59) - - - - - 3,183.45 1,003.42 1,000.96 1,001.71 1,004.48 134,000.39 1,003.12 1,003.12 1,003.12 1,003.12 1,003.12 1,003.12 - - - - - - - - - - - - - - - - - - - - - - - 3,183.45 1,003.42 1,000.96 1,001.71 1,004.48 134,000.39 1,003.12 1,003.12 1,003.12 1,003.12 1,003.12 1,003.12 3,183.45 1,003.42 1,000.96 1,001.71 1,004.48 134,000.39 1,003.12 (0.00) (0.00) (0.00) (0.00) (0.00) - (0.00) 1,003.12 1,003.12 1,003.12 1,003.12 1,003.12 2023 A1-2 146 ATTACHMENT 2: EDA REQUEST FOR EXTENSION OF THE WORKING CAPITAL LOAN FOR 2024 147 ATTACHMENT 2 A2-1 148 A2-2 149 DMC EDA Operating Account Reconciliation of Bank Balance to Advance Total Bank Balance Date:7/31/2022 Balance per Bank:123,134.82$ Add: Advance in transit for expense cleared bank or expenses not yet requested- Receivable: Payroll Payroll -$ Mitel BlueCross BlueShield 8,609.54$ 7/21/2022 Check cleared 319.00$ 5/17/2022 Less: Advance for expenses not cleared: Misc CCC (155.82)$ remaining credit card credit CCC 37.00$ min pmt CCC (6,213.59)$ Cash Flow (20,000.00)$ Outstanding checks (129.22)$ Allison Bowman Outstanding checks (102.52)$ Smith Schafer Outstanding checks (901.76)$ Data Smart Outstanding checks (919.05)$ Data Smart Outstanding checks (232.47)$ Arnold's Outstanding checks (89.42)$ Aon Outstanding checks (3,356.51)$ Mike Flynn Advance Total reconciled 100,000.00$ A2-3 150 DMC EDA Operating Account Reconciliation of Bank Balance to Advance Total Bank Balance Date:8/31/2022 Balance per Bank:124,794.04$ Add: Advance in transit for expense cleared bank or expenses not yet requested- Receivable: Payroll -$ Mitel 531.10$ 8/22/2022 BlueCross BlueShield -$ Less: Advance for expenses not cleared: Misc CCC (155.82)$ remaining credit card credit CCC 26.00$ min pmt CCC (3,573.10)$ 7/6 credit card Cash Flow (20,000.00)$ Outstanding checks (129.22)$ Allison Bowman Outstanding checks (1,493.00)$ Kevin Bright Advance Total reconciled 100,000.00$ A2-4 151 A2-5 152 DMC EDA Operating Account Reconciliation of Bank Balance to Advance Total Bank Balance Date:10/31/2022 Balance per Bank:75,904.79$ Add: Advance in transit for expense cleared bank or expenses not yet requested- Payable:(1,000.00)$ Grant admin Payroll 10/28 75.00$ 230.76$ 11,733.63$ 29,301.82$ 4,584.67$ 45,925.88$ (5,308.52)$ 10/28 payroll Mitel 555.93$ 10/19/2022 BlueCross BlueShield 12,672.96$ 10/24/2022 Checks cleared not yet requested 73.37$ 9/27/2022 Checks cleared not yet requested 103.79$ 9/27/2022 Less: Advance for expenses not cleared: Misc CCC (155.82)$ remaining credit card credit CCC 74.00$ min cc payment CCC (3,573.10)$ 7/6 credit card CCC (2,133.43)$ 8/4 credit card CCC (2,369.84)$ 9/6 credit card Cash Flow (20,000.00)$ Outstanding checks (429.42)$ Aon Outstanding checks (340.59)$ Squeegee Squad Advance Total reconciled 100,000.00$ A2-6 153 DMC EDA Operating Account Reconciliation of Bank Balance to Advance Total Bank Balance Date:11/30/2022 Balance per Bank:62,604.07$ Add: Advance in transit for expense cleared bank or expenses not yet requested- Payable:Grant admin - Payroll 11/25 75.00$ 230.76$ 11,709.78$ 29,159.60$ 4,584.67$ 45,759.81$ (5,308.51)$ 11/25 payroll Mitel 561.18$ 11/22/2022 BlueCross BlueShield 11,349.52$ 11/22/2022 Checks cleared not yet requested 131.65$ Amazon 138.13 - 6.48 Checks cleared not yet requested 21.40$ Amazon 11/22 Less: Advance for expenses not cleared: Misc CCC (155.82)$ remaining credit card credit CCC 74.00$ min cc payment CCC 21.00$ min cc payment Fidelity (4,584.67)$ Over requested Amazon (141.59)$ Over requested Outstanding checks (3,242.01)$ Patrick Outstanding checks (1,641.58)$ Kevin Outstanding checks (5,473.35)$ Mike Outstanding checks 24.90$ Transfer from events / ER not approved Advance Total reconciled 100,000.00$ A2-7 154 DMC EDA Operating Account Reconciliation of Bank Balance to Advance Total Bank Balance Date:12/31/2022 Balance per Bank:49,920.56$ Add: Advance in transit for expense cleared bank or expenses not yet requested- Payable:Grant admin - Payroll 12/23 75.00$ 230.76$ 13,598.73$ 32,180.44$ 2,262.03$ 48,346.96$ (5,588.22)$ 12/23 payroll Mitel 561.18$ 12/22/2022 BlueCross BlueShield 11,491.42$ 12/21/2022 Checks cleared not yet requested 11.88$ Amazon 12/21/22 Checks cleared not yet requested 21.60$ Amazon 12/20/22 Checks cleared not yet requested 4.70$ Amazon 12/22/22 Less: Advance for expenses not cleared: Misc CCC (155.82)$ remaining credit card credit CCC 74.00$ min cc payment CCC 21.00$ min cc payment CCC 17.00$ min cc payment Fidelity (4,584.67)$ Over requested Amazon (141.59)$ Over requested Advance Total reconciled 100,000.00$ A2-8 155 DMC EDA Operating Account Reconciliation of Bank Balance to Advance Total Bank Balance Date:1/31/2023 Balance per Bank:100,508.72$ Add: Advance in transit for expense cleared bank or expenses not yet requested- Payable:Grant admin - Payroll -$ 12/23 payroll Mitel 561.18$ 1/23/2023 BlueCross BlueShield 10,167.78$ 1/23/2023 Less: Advance for expenses not cleared: Misc CCC (155.82)$ remaining credit card credit CCC 74.00$ min cc payment CCC 21.00$ min cc payment CCC 17.00$ min cc payment CCC 58.00$ min cc payment Credit Card (5,207.55)$ 10/5 stmt Credit Card (1,311.75)$ 11/3 stmt Credit Card (1,530.08)$ 12/5 stmt Uncleared check (102.52)$ Smith Schafer Uncleared check (1,466.94)$ Data Smart Uncleared check (89.39)$ Aon Uncleared check (1,543.63)$ Patrick Seeb Advance Total reconciled 100,000.00$ A2-9 156 DMC EDA Operating Account Reconciliation of Bank Balance to Advance Total Bank Balance Date:2/28/2023 Balance per Bank:50,713.11$ Add: Advance in transit for expense cleared bank or expenses not yet requested- Payable:Grant admin - Payroll 2/17 221.15$ 230.76$ 14,709.10$ 29,707.26$ 6,208.51$ 51,076.78$ (5,597.29)$ 2/17 payroll Mitel 561.18$ 2/21/2023 BlueCross BlueShield 10,829.60$ 2/21/2023 Amazon 90.18$ 2/14 - 2/22 EFT's Lincoln Life 404.88$ 2/2/2023 Less: Advance for expenses not cleared: Misc CCC (155.82)$ remaining credit card credit CCC 74.00$ min cc payment CCC 21.00$ min cc payment CCC 17.00$ min cc payment CCC 58.00$ min cc payment Credit Card (5,207.55)$ 10/5 stmt Credit Card (1,311.75)$ 11/3 stmt Credit Card (1,530.08)$ 12/5 stmt Refund (43.24)$ Amazon 2/27 Advance Total reconciled 100,000.00$ A2-10 157 DMC EDA Operating Account Reconciliation of Bank Balance to Advance Total Bank Balance Date:3/31/2023 Balance per Bank:55,015.05$ Add: Advance in transit for expense cleared bank or expenses not yet requested- Payable:Grant admin - Payroll 3/31 221.15$ 230.76$ 15,242.33$ 31,016.18$ 46,710.42$ (4,948.89)$ 3/31 payroll Mitel 561.18$ 3/22/2023 BlueCross BlueShield 10,829.60$ 3/21/2023 Checks cleared 65.00$ #5531 Checks cleared 30.72$ Amazon Less: Advance for expenses not cleared: Misc CCC (155.82)$ remaining credit card credit CCC 74.00$ min cc payment CCC 21.00$ min cc payment CCC 17.00$ min cc payment CCC 58.00$ min cc payment CCC 10.00$ min cc payment Credit Card (5,207.55)$ 10/5 stmt Credit Card (1,311.75)$ 11/3 stmt Credit Card (1,530.08)$ 12/5 stmt Outstanding check (237.88)$ C to Shining C Advance Total reconciled 100,000.00$ A2-11 158 DMC EDA Operating Account Reconciliation of Bank Balance to Advance Total Bank Balance Date:4/30/2023 Balance per Bank:88,854.14$ Add: Advance in transit for expense cleared bank or expenses not yet requested- Payable:Grant admin - Payroll 4/28 230.76$ 15,493.00$ 221.15$ 31,597.79$ 47,542.70$ 4/28 payroll Mitel 556.34$ 4/20/2023 BlueCross BlueShield 10,829.60$ 4/21/2023 Checks cleared 65.00$ #5531 Checks cleared 2,443.10$ Nationwide Checks cleared 1,129.00$ The Hartford Checks cleared 345.28$ Amazon 4/18 Checks cleared 7.56$ Amazon 4/26 Checks cleared 59.43$ Amazon 4/25 Checks cleared 23.78$ Amazon 4/24 Less: Advance for expenses not cleared: Misc CCC (155.82)$ remaining credit card credit Transfer (50,000.00)$ cash flow Outstanding check (1,315.89)$ Data Smart 4/1 invoices Outstanding check (384.22)$ Mike Flynn ER 4/10 Advance Total reconciled 100,000.00$ A2-12 159 DMC EDA Operating Account Reconciliation of Bank Balance to Advance Total Bank Balance Date:5/31/2023 Balance per Bank:96,581.04$ Add: Advance in transit for expense cleared bank or expenses not yet requested- Payable:Grant admin - Payroll 5/26 221.15$ 230.76$ 15,528.20$ 31,672.25$ 6,017.71$ 53,670.07$ (5,595.16)$ 5/26 payroll Mitel 556.34$ 5/22/2023 BlueCross BlueShield 10,829.60$ 5/23/2023 Checks cleared 65.00$ #5531 Checks cleared 345.28$ Amazon 4/18 Checks cleared 784.25$ Amazon 5/31 Checks cleared 21.51$ Amazon 5/26 Checks cleared 17.05$ Amazon 5/16 Checks cleared 43.24$ Amazon 5/15 Checks cleared 40.08$ Amazon 5/23 Less: Advance for expenses not cleared: Misc CCC (155.82)$ remaining credit card credit CCC 10.00$ min pmt Transfer (50,000.00)$ cash flow Outstanding check (2,764.75)$ Data Smart #5537 Outstanding check (297.34)$ C to Shining C Outstanding check (121.10)$ Squeegee Squad Outstanding check (4,029.29)$ PS ER Advance Total reconciled 100,000.00$ A2-13 160 DMC EDA Operating Account Reconciliation of Bank Balance to Advance Total Bank Balance Date:6/30/2023 Balance per Bank:23,360.07$ Add: Advance in transit for expense cleared bank or expenses not yet requested- Payroll 6/9 221.15$ 230.76$ 15,748.67$ 31,917.65$ 6,208.51$ 54,326.74$ (5,720.15)$ 6/9 payroll Payable:(1,000.00)$ Grant admin - June Payroll 6/23 221.15$ 230.76$ 15,349.35$ 31,064.37$ 6,208.51$ 53,074.14$ (5,588.22)$ 6/23 payroll Mitel 556.34$ 5/22/2023 BlueCross BlueShield 10,829.60$ 5/23/2023 Mitel 556.34$ 6/20/2023 BlueCross BlueShield 10,829.60$ 6/21/2023 Checks cleared 65.00$ #5531 Checks cleared 345.28$ Amazon 4/18 Checks cleared 17.05$ Amazon 5/16 Checks cleared 43.24$ Amazon 5/15 Checks cleared 396.66$ Lincoln National Checks cleared 4,588.04$ #5548 Checks cleared 1,720.34$ #5550 Checks cleared 1,592.69$ #5551 Checks cleared 153.06$ Amazon 6/21 Less: Advance for expenses not cleared: Misc CCC (155.82)$ remaining credit card credit CCC 10.00$ min pmt Transfer (50,000.00)$ cash flow Advance Total reconciled 100,000.00$ A2-14 161 DMC EDA Operating Account Reconciliation of Bank Balance to Advance Total Bank Balance Date:7/31/2023 Balance per Bank:117,354.26$ Add: Advance in transit for expense cleared bank or expenses not yet requested- Payroll -$ Payable: Mitel 556.43$ 6/20/2023 BlueCross BlueShield 10,829.60$ 7/21/2023 Checks cleared 65.00$ #5531 Checks cleared 345.28$ Amazon 4/18 Checks cleared 153.06$ Amazon 6/21 Receivable 849.47$ Due from Events account Less: Advance for expenses not cleared: Misc CCC (155.82)$ remaining credit card credit CCC 10.00$ min pmt CCC 32.00$ min pmt Payable:(39.28)$ Additional due to Mike due to ER change Transfer (50,000.00)$ cash flow Transfer 20,000.00$ cash flow Advance Total reconciled 100,000.00$ A2-15 162 C. DESTINATION MEDICAL CENTER CORPORATION RESOLUTION NO. -2023 Approving the 2024 DMCC Funding Request and the Extension of Working Capital Loan and Authorizing Transmittal to the City of Rochester BACKGROUND RECITALS WHEREAS, the Destination Medical Center Corporation (“DMCC”) must adopt an annual Funding Request and Five Year Capital Plan. The DMCC Funding Request includes the DMCC annual budget, the Destination Medical Center Economic Development Agency (“EDA”) annual budget and work plan, and support costs incurred by the City of Rochester; and WHEREAS, on February 26, 2015, the DMCC adopted Resolution No. 26-2015, approving the form of and authorizing the Chair and Treasurer to execute, amend, and take other actions to implement the working capital loan documents to provide for advance funding of DMCC and EDA operations (collectively, the “Loan Documents”); and WHEREAS, the DMCC has completed the required annual reconciliation of the advances to the DMCC and the DMCC eligible expenses and has prepared a DMCC Request for Extension of the Working Capital Loan for 2024 in the amount of $1000, as such amount may be adjusted by the City pursuant to Section 2.8(c) of the Working Capital Loan Agreement (DMCC-City) effective April 1, 2014, as amended; and WHEREAS, the EDA has submitted an EDA Request for Extension of the Working Capital Loan for 2024, requesting that the Loan Documents be extended for 2024 in the amount of $100,000, as such amount may be adjusted by the City pursuant to Section 2.8(c) of the Working Capital Loan Agreement (DMCC-EDA), effective April 1, 2014, as amended, and has provided the required annual reconciliation of advances and eligible expenses paid from such advances; and WHEREAS, the DMCC and EDA Requests for Extension of the Working Capital Loan for 2024 are attached as Exhibit A. RESOLUTION NOW, THEREFORE, BE IT RESOLVED, by the Destination Medical Center Board of Directors that the 2024 DMCC Funding Request, and the Five Year Capital Plan, each on file with the DMCC, are approved. Further, the DMCC hereby approves the projects set forth in the first year of the Five Year Capital Plan as public infrastructure projects within the meaning of Minnesota Statutes Section 469.40, Subdivision 11, and consistent with the Development Plan, adopted on April 23, 2015, as amended; provided that (1) final approval of each of the capital projects will be subject to a later specific approval by the DMCC upon final determination of scope, costs, and availability of funds; (2) for the Chateau Theatre project, further detail and information regarding future capital needs, potential funding sources, anticipated uses, operating and business model, and expected operating duration will be necessary before consideration of any 163 2 additional funding after the 2024 CIP; and (3) staff is directed to provide an annual reconciliation of budget amounts and expenditures for each of the capital projects. BE IT FURTHER RESOLVED, that the EDA Request for Extension of the Working Capital Loan for 2024, and the DMCC Request for Extension of the Working Capital Loan for 2024, attached as Exhibit A and on file with the DMCC, are approved. BE IT FURTHER RESOLVED, that the Chair and Treasurer are hereby authorized and directed to transmit this Resolution to the City of Rochester and to take such actions as are necessary or convenient to effectuate the 2024 DMCC Funding Request, the Five Year Capital Plan, and the extension of the Loan Documents, including, but not limited to, the authority to execute, deliver, and perform, in the name of and on behalf of the DMCC, the DMCC Request for Extension of the Working Capital Loan for 2024 and the Loan Documents to which the DMCC is a party, with such modifications, additions, deletions, or other changes as the Chair and Treasurer may deem necessary or appropriate to accomplish the requested extension, all which may be performed without further action of this Board. 1747331-4 164 Business Development and Lead Generation To: DMCC Board of Directors From: DMC EDA Date: September 22, 2023 Request of the board: No action requested. 2022-23 Awareness & Percep�on Study Key Findings •Survey of 300+ life science company execu�ves and investment “influencers.” 1.Baseline awareness of Rochester as a poten�al business investment loca�on is low (31%). 2.82% of high-growth life science companies have considered an expansion, but only 7% included Rochester as a poten�al loca�on during that process. 3.The #1 reason cited for not considering Rochester for investment by all audiences was “Unaware of Opportuni�es.” 4.Talent pipeline, thriving ecosystem, turn-key lab space, and easy transporta�on access are the most important decision drivers for investment decisions. 2023 DMC Business Development Strategy •Build Awareness of Rochester as a business des�na�on, DMC as an economic development ini�a�ve, and Mayo Clinic’s close connec�on to both. •Build Infrastructure to reduce business risk in Rochester, decrease speed-to-market, and make our Rochester “bigger.” •Build Ecosystem in the life science community by defining the partners we have, engaging those partners in se�ng a comprehensive ecosystem strategy, and u�lizing their knowledge and experience to make our product beter. Business Development focus will shi� over �me as priori�es evolve. •Heavy Awareness Building currently, shi�ing to Ecosystem Building in later years. •Building Infrastructure tends to be project specific and in response to ecosystem needs. 2023 Business Development Program of Work •Heavy focus on Building Awareness 21 completed/in-process/planned outreach ac�vi�es. •Total atendance of 150k+ from all events Four individual Lead Gen campaigns •San Francisco, Paris, Tier 2 life science markets, NYC* •100+ poten�al leads from all campaigns once completed 80+ Influencer visits No FAM (familiariza�on) tours in 2023 •Minimal Ecosystem ac�vity •Infrastructure Building focused on shared lab research and engagement. 165 2024 Business Development Proposed Budget •Con�nue heavy focus on Awareness Building Increase investments across the en�re program. •Industry Marke�ng +60% •Influencer Marke�ng +42% •Direct Lead Genera�on +74% •In-market Promo�on +72% Addi�on of two staff members to allow for increased ac�vity, and improved process. •Business Development Manager •Business Development Coordinator Addi�onal spending in Marke�ng and Research •Improved web, collateral, communica�ons, and adver�sing •Growing Ecosystem Building Program Focused on defining, analyzing, and engaging the local life sciences industry Will require excellent coordina�on with local partners Building toward expanded programming and budget requests in 2025 •Building Infrastructure focused on Shared Lab opera�on Developing turn-key real estate in response to 2022 research findings Makes our market operate “bigger” in response to 2022 research findings Design, opera�ng partner, financial models, and partner agreements to be completed in 2024 166 DMC Communications Strategy To: DMCC Board of Directors From: DMC EDA Date: September 22, 2023 Request of the board of directors: No action requested. Background: Padilla was retained as a partner to research, create, and develop strategies for implementing a results-driven communications plan to reach and influence targeted local audiences. The plan will do the following: •Improve understanding of and appreciation or DMC efforts among key local stakeholders – business leaders, community leaders, government officials, and other decision makers •Encourage engagement by those in and around Rochester and create local partner-ambassadors to help champion DMC’s efforts •Reignite relationships and connections paused during the pandemic to navigate our new reality – and opportunities - together Recent Milestones: •Immersion and discovery •Peer/competitive landscape review •Cultural/social context assessment Milestones: •Padilla and DMC will prioritize and confirm priority audiences and gather existing knowledge of their current awareness, understanding attitudes, drivers, barriers, and other beliefs around the DMC initiative. •Padilla and DMC will host a messaging workshop to determine how to evolve the narrative around DMC, including key messages and proof points. Draft messaging will be integrated into the quantitative study for testing. The session is scheduled for May 16. •Padilla will design and execute a quantitative study issued to priority audience segments (approximately 500)in the Rochester area to gather information per the research objective above. Fulfilling the DMC Vision, Mission, and/or Goals: DMC EDA Staff are working in collaboration with the consultant team, Padilla, with a continued focus on the goal of increasing awareness of the DMC initiative and the strategic and economic benefits of continued relationships with Mayo Clinic and developing relationships with other stakeholders. Current Status: See above milestones. Next Steps: Phase 3 – Shape and Build •Refreshed messaging and stakeholder mapping •Content strategy •Channel strategy for how we’ll reach key stakeholders •Social media strategy 167 DEED Main Street Economic Revitalization Program Grant To: DMCC Board of Directors From: DMC EDA Date: September 22, 2023 Request of the board of directors: No action requested. Final Round 2 Status •17 awards •Average project award = $55,800, median award $20,000 •7 BIPOC awardees (41%) •2 non-BIPOC women-led awardees (12%) •Project types: o Retail and Dining: 12 o Office, technical and mixed use: 3 o Non-profit: 1 o Housing and lodging: 1 •None of the project sites were unoccupied. •Approx 80 permanent jobs created. Final Round 1 AND 2 Outcomes •$3.9M awarded to 71 awards •Average project award = $54,900, median award $20,500 •20 BIPOC awardees (28%) •18 non-BIPOC women-led awardees (25%) •Project types: o Retail and Dining: 43 o Office, technical and mixed use: 16 o Non-profit: 6 o Housing and lodging: 6 •22 project sites were unoccupied (31%) •Approx 350 permanent jobs created. 168 Discovery Square – Shared Lab Project To: DMCC Board of Directors From: DMC EDA Date: Sept 22, 2023 Request of the board of directors: No action requested. Background •What it is: Community infrastructure of shared laboratory space for life sciences startups for technology, workforce, and economic development •Objectives of this infrastructure: o Attract early-stage companies and the follow-on economic impacts. o Advanced training for workforce development. o Be a resource for businesses and the community. •Market analysis and demand study (reported previously), identified the following opportunities: o Development of affordable, flexible, wet lab space to support early-stage science companies. o Create a positive economic impact in Rochester by deepening commitments to entrepreneurship and innovation by incentivizing, facilitating, and educating inventors to create more high-value companies. o Consider developing space and equipment for prototyping and 3D printing, expose it to external opportunities to enhance patient care, and support the needs of early-stage companies. o Address the challenge of creating a qualified workforce for startups with more four-year degree options specializing in programs that complement existing higher education programs. Status •Potential operating partners identified o Reciprocal site visits completed, draft proposals in hand from both, decision matrix developed and completed by both groups. Next Steps •Select operating partner, finalize operating agreements, develop timeline for launch, secure funding. This matrix represents where financial investments are most likely to be needed and how the Project collaborators will need to finance the project. 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 169 District Energy To: DMCC Board of Directors From: DMC EDA Date: September 22, 2023 Request of the board of directors: Update regarding DMC district energy system investment to advance DMCC goals for carbon emissions reductions. Project Updates: 1.The City of Rochester is installing heating and cooling equipment in their downtown facilities to replace an aging steam system. The City is preparing to leverage 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. This budget of $7.2 million is in the 2024 DMC CIP budget request. 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. 170 Downtown Riverfront To: DMCC Board of Directors From: DMC EDA Date: September 22, 2023 Request of the board of directors: No action requested. Background: This City-owned site has the potential to be both a “front door” that faces the river, as well as a gateway into downtown. Located at the intersection of the Rochester Arts and Culture District and the main street Mixed-Use District as outlined in the Downtown Master Plan, and in the Destination Medical Center (DMC) development district. The set of community-driven principles and concept small area plan was approved by the Rochester City Council in summer 2022. Riverfront Small Area Plan Principles: -Leverage the riverfront as a destination and natural corridor that better connects the trail system to downtown -Support local, diverse businesses and programming that grow entrepreneurial endeavors -Ensure universal access to streetscapes, skyways, subways, buildings, and the riverway -Strive for balance; polarizing issues are not helpful. Seek balance of: o Open space + development o New construction + historic preservation o Public + private space o Flood protection + river access o East + West sites -Forge a new identity for the riverfront that expands economic development opportunities and activates the public realm. 171 Key Site Design Elements: To create a bold vision for future use of the Riverfront Small Area Plan site, it will be essential to leverage both the east and west sites together. The east-side focus being higher density and the west-side focused on civic and community engagement. Fulfilling the DMC Vision, Mission, and/or Goals: DMC EDA staff worked in collaboration with City staff to select the consultant team, and DMC staff will continue to participate through the planning and development process. DMC is particularly focused on the public realm experience and linkages between this site and the rest of the district. Approvals, milestones, and decision points: When the 2023 CIP was presented for Board approval in fall 2022, the next steps required to advance riverfront planning were adopted. The current status is shown below: Steps adopted in 2023 CIP Current Status Interim activation (in partnership with the Rochester Downtown Alliance and other organizations) Menu of activation options has been developed and a budget has been developed Advance flood wall work with Army Corps of Engineers Multiple meetings with the Army Corps have led to greater understanding of site needs and constraints Due diligence analysis of former Red Owl and Time Theater buildings Building condition assessment and cost estimation are being finalized Continue discussions with Olmsted County regarding county-owned portion of the site Site has been purchased from the County for $450,000 East site preparation Site survey, Geotech information is being finalized Prepare developer RFQ/RFP Concept plans and a draft RFQ structure are being finalized The City of Rochester has submitted State bonding support for four separate projects on this property, total estimated costs shown below: -West Site Open space: $20 million -Ramp demolition and skyway rebuild: $9.75 million - Reuse of Red Owl building and building addition: $17.75 million -Riverwalk improvements: $5.4 million Total: $52.9 Million The 2024 DMC CIP budget request for the Riverfront is to support the commencement of design work should any of the State bonding requests listed above get selected in 2024. State bonding requires a minimum 50% local match. DMC EDA recommendation is that the Riverfront infrastructure proposals outlined above be further developed and return to DMCC Board with more complete information and updates on legislative bonding process in 1Q2024 and 2Q2024 meetings in advance of the 2025 budget process. Multiple funding scenarios should be prepared for those discussions. 172 Equitable Economic Development To: DMCC Board of Directors From: DMC EDA Date: September 22, 2023 Request of the board of directors: No action requested. Workplan Update: 1.Community Co-Design Updates: a.On June 22nd, we began the second cohort of community co-design facilitator training. The anticipated graduation for this cohort is in October 2023. The participants will complete a 25-hour training to facilitate community co-design projects in our community. In this cohort, we are training participants from Rochester Public Schools, Rochester Area Foundation, Olmsted County Department of Health, and other organizations. We will offer a 3rd cohort for the facilitator training in December 2023. b.We will begin our 3rd cohort of Community Co-design Leadership Training in October 2023. In this 5- hour training, we trained 44 community leaders so far 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. c.We are continuing with 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 Series: We launched two episodes of the Equity Series in July and August. The first episode offered an overview of Community Wealth Building and how important it is to have anchor organizations. The second episode shared an overview of diversity, equity, and inclusion assessments for organizations. 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.DEI Best Practices: a.Goodenough Consulting DEI Partnership: In July, DMC EDA formed a partnership with Goodenough Consulting to complete the following items: i.DMC EDA Diversity, Equity, and Inclusion Assessment- 2023 ii.Provide a report and recommendations-2023. iii.Asist in creating DEI implementation plan-2024. iv.Provide DEI training and consultation for DMC EDA staff-2024. 173 b.Community Connections and Capacity Building: We are continuing to work with grass root organizations and BIPOC led nonprofits to build relationships with the communities they work with. Through the RDA Start-Up Grant, we assisted organizations like Pamoja Women to launch their first African Cultural celebration to promote business owned by African women. We established monthly check-ins with the following organizations to build trust with BIPOC and unrepresented communities and provide resources and capacity building opportunities: i.NAACP ii.Community Mobilization Resource Coalition iii.Cradle 2 Career iv.Pamoja Women v.Rochester Downtown Mosque vi.Sports Mentorship Academy/Andre Crockett vii.Rochester Public Schools. 4.Affordable Housing Updates: a.Emerging & BIPOC Developer Expo: October 5th, DMC EDA and Greater Minnesota Housing Fund will host the Emerging/BIPOC Developer Expo in Rochester, MN in Two Discovery. The event will attract local and regional BIPOC/Emerging developers who are interested in learning more about the financial resources available in our community. It will be a networking opportunity between the developers, local Rochester organizations, and regional organization to build capacity and provide resources for BIPOC and Emerging developers. b.Housing Developers Monthly Check-ins: We are continuing our monthly check-ins with 10 developers who are interested in the Rochester community. We provide the developers monthly updates about the following sites: Riverfront, West Transit, and Kmart. We will continue to provide DMC district site opportunities and City of Rochester opportunities to housing developers, and emerging/BIPOC developers. 174 Heart of the City To: DMCC Board of Directors From: DMC EDA Date: September 22, 2023 Request of the board of directors: No action requested Background: Heart of the City Phase 1 The first phase of Destination Medical Center’s Heart of the City public realm project is a renovation of the east side of Peace Plaza and surrounding areas. The new design will create active, engaging experiences for residents, visitors, and patients in the heart of downtown Rochester. The project broke ground in April 2020. -Project Update: o Catenary lighting system installation planned for Fall 2023 -Post-occupancy analysis, summer data gathering: o A second set of data was gathered and analyzed by Gehl in July 2023 o A report of findings and recommendations will be available in the fall of 2023 Chateau Theatre On July 27, Threshold Arts held a One Year recognition event to highlight the community partners, activation, and achievements at the Chateau. Over a dozen organizations have held community events at the historic building with over 22,000 visitors in the first year. An ADA and family restroom was added to the front of the building while a complete restroom renovation, funded by a federal grant, is bringing up the main restrooms to meet current standards. The renovation is to be completed later this fall. 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. 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 Anticipated completion 175 Housing To: DMCC Board of Directors From: DMC EDA Date: September 22, 2023 Request of the board of directors: No Action Requested Background: The downtown housing market demand for market rate units, affordable and subsidized units, and senior housing units by 2030 are summarized below. In previous board packets, a full summary and explanation of the data and its sources were included. 1,213 affordable and subsidized units at varying levels of affordability 674 units at 30% AMI or below 224 units at 30% to 50% AMI o Progress: Bryk Contribution = 54 units at 50% AMI 315 units at 50% to 80% AMI o Progress: Bryk Contribution = 126 total units 18 units at 60% AMI 108 units at 80% AMI 1,840 market rate units of varying type and affordability 1,472 market rate rental 236 multifamily for sale 132 single family for sale 919 senior housing units of varying type and affordability Active adult ownership: 147 units Active adult market rate rental: 248 units Active adult affordable: 180 units Active adult subsidized: 9 units Independent Living: 128 units Assisted Living: 125 units Memory Care: 82 units Total: 3,972 housing units needed by 2030 (22% of county-wide housing market demand) 176 Mobility To: DMCC Board of Directors From: DMC EDA Date: September 22, 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 in Fall 2023 -Procurement process training completed -SHPO found No Adverse Effect for existing design Upcoming BRT Milestones: -Complete key state and Federal environmental reviews and risk assessments (2023) -Finalize vehicle design and place order (4Q 2023) Vehicle Design: Goals: -High amenity to provide a unique experience. -Futuristic and innovative visual features. -Experience equal to or better than driving. Areas of influence: -Exterior design -Interior layout, materials, amenities, air quality -Technology utilization -Safety features 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. 177 Rochester Downtown Task Force: Grow Downtown To: DMCC Board of Directors From: DMC EDA Date: September 22, 2023 Request of the board of directors: No action requested. Background: In early 2023, the Downtown Rochester Task Force was established to help accelerate Rochester’s path forward and build a more resilient downtown. 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 associated with each recommended action item. Out of the action plan, both DMC EDA and DMCC boards supported DMC staff leading the Grow Downtown action plan items. These items have been incorporated into immediate workplan strategies and tactics as well as informing 2024 workplan strategies and tactics. The newly created DMC Grow Downtown Together strategy focuses on strengthening the demand drivers of downtown (the entities that are destination-worthy and can only find them in downtown Rochester) which include: -Mayo Clinic -University of Minnesota Rochester -Downtown Housing -Cultural Anchors o Mayo Civic Center o Art Center o Civic Theatre o Chateau Theatre -Catalytic Retail To do this, DMC has convened a small initial workgroup of downtown stakeholders to build a collective strategy to grow downtown together. The first meeting was held in August. Participants shared concerns, opportunities, and areas of prioritization. With the help of the workgroup, DMC staff created a set of strategies and tactics to support this work. -Define common goals related to the growth of downtown -Build an understanding and document what is currently being done to support these goals -Gather and track relevant data -Identify resource gaps restricting success -Determine tools and resources needed -Develop programs to support the identified goals and outcomes -Track and measure progress This work will create the pathway to the most impactful work DMC and downtown stakeholders can do together-- attracting people downtown. 178 Immediate next steps include: - Determining the technical support needed to support the DMC Grow Downtown Together strategy -Continue to engage with current demand drivers to determine how to support and strengthen their growth in downtown a.UMR i.Attend master planning activities b.Mayo Clinic i.Bold. Forward. Unbound. 179 Soldiers Field Memorial Park To: DMCC Board of Directors From: DMC EDA Date: September 22, 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. Project improvements underway include a new aquatics area with a lazy river, 3 waterslides, 50-meter lap pool, a renovated bathhouse, a shallow pool, and a splash pad. Additional improvements also include an inclusive playground and shelter at Roy Sutherland Park (east side), new basketball courts, and a SW trail connection. Project Update: Project improvements are well underway with the majority of updates currently under construction. The pool was closed for the 2023 summer season. A “Big Dig” community event is planned for October 7, 2023. Work plan or capital improvement budget implications: Included in the 2023 Capital Improvement Budget: $10,000,000. In 2020, Rochester voters approved a referendum for park investment, with $7M allocated towards Soldiers Field Memorial Park. In 2022, the City of Rochester Parks & Recreation Department was awarded a Federal Land and Water Conservation Fund (LWCF) grant for the redevelopment of the recreation facilities at Soldiers Field Memorial Park. Additional funding is approved by the Destination Medical Center (DMC) Board, with a total budget of $18.5 Million. 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 (2024 completion) 180 West Transit Village To: DMCC Board of Directors From: DMC EDA Staff Date: September 22, 2023 Request of the board of directors: No action requested. 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. Mayo, the development partner, City staff and EDA staff are participating in a series of design charettes to develop a preferred final development site plan and BRT infrastructure plan for the site. The next steps include: -Mayo Clinic to evaluate and commit to advance the preferred option -Mayo Clinic and developer to establish base conditions of the site transaction and move towards a codified agreement, targeting fall 2023 for documentation -Further advancement of the site design to provide conceptual pricing and definition of the needed infrastructure components of the site -Return to DMC Board with a request for support of needed infrastructure components 181