HomeMy WebLinkAbout2/1/2024 DMCC Board of Directors Meeting - Agenda and Meeting PacketDestination Medical Center Corporation
Board of Directors Meeting
Thursday, February 1, 2024
9:30 A.M.
1
DESTINATION MEDICAL CENTER CORPORATION (DMCC)
SPECIAL BOARD MEETING
Thursday, February 1, 2024
9:30 A.M.
Mayo Civic Center, 30 Civic Center Dr SE, Suite 101, Rochester, MN
To View the Meeting Remotely: https://us02web.zoom.us/j/81741811080
AGENDA
PAGE
I. Call to Order
II. Roll Call
III. Approval of Agenda 1
IV. Approval of Minutes: November 17, 2023 3
V. Public Comment 1
VI. Chair’s Report
VII. Consent Agenda
A. DMCC 2023 Budget: Year to Date Update 5
B. EDA 2023 Budget Encumbrance Request 8
VIII. Annual Report to the Legislature 9
Resolution A: Approving February 15, 2024 Report to the Legislature
IX. EDA Board President Comments
X. Metrics
XI. Discussion Items
A. Minnesota MedTech 3.0 65
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 A.M. on the
meeting day. Written comments may also be submitted to info@dmc.mn.
2
B. Supporting Transformation
1. City of Rochester Report 66
2. DMC Development Plan Update 67
C. Progress on pre-authorized DMC Capital Priorities
1. Discovery Square Med-Tech Infrastructure 70
2. Downtown Property Support 71
3. Riverfront Reimagined 74
XII. Status Reports
A. Business Development and Lead Generation 75
B. Chateau Theatre 76
C. Development along the Rapid Transit Corridor/West Transit Village 78
D. District Energy 80
E. Equitable Economic Development 81
F. Housing 83
G. Mobility/LINK Bus Rapid Transit 85
H. Public Realm Projects
i. Discovery Walk 87
ii. Heart of the City 88
iii. Soldiers Memorial Field 89
I. Project Previews 90
J. Rochester Downtown Task Force
XIII. Meeting Schedule
A. Executive Committee: March 14, 2024 at 1:00 P.M.
B. Next Regular Meeting: May 23, 2024 at 9:30 A.M. (at Hilton Rochester Mayo
Clinic Area, 10 East Center Street)
XIV. Adjournment
DESTINATION MEDICAL CENTER CORPORATION (DMCC)
BOARD MEETING
FRIDAY, NOVEMBER 17, 2023
MINUTES
I.Call to Order. Chair Pamela Wheelock called the meeting to order at 9:30 a.m.
II.Roll Call. James Campbell, Council President Brooke Carlson, R.T. Rybak,
Commissioner Mark Thein, Chair Pamela Wheelock, and Paul Williams were present. Mr.
Campbell participated via interactive technology because he was out of state.
III.Approval of Agenda. Council President Carlson moved to approve the agenda.
Commissioner Thein seconded the motion.
Ayes: Mr. Campbell, Council President Carlson, Mr. Rybak, Commissioner Thein, Chair
Wheelock, and Mr. Williams. Nays: None.
IV.Approval of Minutes: September 28, 2023. Council President Carlson moved to approve
the September 28, 2023 minutes. Mr. Rybak seconded the motion.
Ayes: Mr. Campbell, Council President Carlson, Mr. Rybak, Commissioner Thein, Chair
Wheelock, and Mr. Williams. Nays: None.
V.Public Comment. No public comments were offered.
VI.Chair’s Report. Chair Wheelock noted that the metrics information was included in the
meeting packet. She also noted that, similar to the recent Request for Proposals (RFP)
for audit services, the DMCC will issue an RFP for legal services. Council President
Carlson provided a brief overview of the recent approval of the local option sales tax
referendum. Chair Wheelock also proposed that, after the conclusion of some Board
meetings in 2024, there be an informal opportunity to listen to a speaker and learn more
information on a topic of interest to the DMC initiative.
VII. Consent Agenda.
A.DMCC 2023 Budget: Year to Date Update.
B.Selection of Audit and Tax Service Provider.
Resolution A: Approving the Appointment of CliftonLarsonAllen LLP,
Subject to Successful Negotiation and Execution of Agreement.
C.Amended Regular Meeting Schedule.
Resolution B: Amending the 2024-2025 DMCC Board Regular Meeting Schedule.
Mr. Rybak moved to approve the consent agenda. Commissioner Thein seconded the
motion.
Ayes: Mr. Campbell, Council President Carlson, Mr. Rybak, Commissioner Thein, Chair
Wheelock, and Mr. Williams. Nays: None.
3
VIII. Discussion Items.
A.2025 Development Plan Update. Patrick Seeb, EDA Executive Director, and
Catherine Malmberg, EDA Public Infrastructure & Development Strategy Director,
presented the timeline and process for preparing and approving the 2025 update
to the Development Plan.
B.Discovery Labs. Chris Schad, EDA Business Development Director, and Michael
Flynn, EDA Senior Economic Development Director, provided an update on shared
lab development planning. The Board requested additional information as to the
DMCC’s specific role, as well as capital costs and operating model information.
C.Downtown Riverfront. Cindy Steinhauser, City of Rochester Deputy Administrator,
David Gamble, Gamble Associates Founding Principal, and Ms. Malmberg
presented an update regarding the downtown riverfront small area plan. The
Board discussed connections to nearby amenities, including Mayo Park and
Discovery Walk, the on-going review of watershed scale, potential mixed use
options, and recreational use. The Board expressed interest in learning more
about the City’s proposed bonding request to the State.
D.University of Minnesota Rochester Update. Dr. Lori Carrell, Chancellor of the
University of Minnesota Rochester, provided an update on campus planning and
growth.
IX.Status Reports. The Board discussed the interest rate environment, increased
construction costs, and the impact on investment. Chair Wheelock requested an update
on the West Transit Village. Mr. Campbell noted the recent federal designation of
Minnesota as the MedTech 3.0 hub.
X.Adjournment. Mr. Rybak moved to adjourn the meeting. Council President Carlson
seconded the motion.
Ayes: Mr. Campbell, Council President Carlson, Mr. Rybak, Commissioner Thein, Chair
Wheelock, and Mr. Williams. Nays: None.
1759439.DOCX
4
To: Mark Thein, Treasurer
Kaela Brennan, Attorney
From: Jean McGann, City of Rochester Interim Finance Director
Date: January 24, 2024
RE: December 2023 DMCC Budget Summary – unaudited
The attached budget summary through December 2023 reflects DMCC operating expenditures
totaling $3.1 million of the $3.9 million approved 2023 budget. The remaining amount
unspent represents 22% of the total budget with 0% 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 $11.8 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 $116.2 million.
As 2023 financial information is finalized, there will be adjustments to the financial
information presented.
Please contact me with any questions or concerns.
5
PROJECT PROJECT STATUS
YEAR TO DATE
EXPENSES
PROJECT
BUDGET
LIFE TO DATE
EXPENSES
LIFE TO DATE
ENCUMBRANCE
Administration
C.8601 - City Project Administrative Costs-DMCC (Budget-Current Yr)Annual Budget 665,078 1,096,277 3,386,398
C.8606 - City Staff Costs-DMCC - (Budget-Current Yr)Annual Budget 9,954 443,267
C.8607 - County Staff Costs-DMCC Complete 168,754
C.8629 - Development Plan Update Complete 750,000 154,960
C.8632 - Downtown Changes COVID-19 Complee 250,000 43,524
C.8902 - FestivalAreaStdy&ConceptDesign Complete 84,133
Total Administration 675,032 2,096,277 4,281,037
Econ Development/Public Realm
C.8624 - ChateauTheatreBldgImprov/Purch Nearly Complete 1,086,991 9,951,362 9,730,362 200,998
C.8625 - Heart of the City Nearly Complete 218,018 20,643,209 21,288,263 313,931
C.8633 - Strategic Development Ongoing 13,000,000 2,200,000
C.8634 - Riverfront Reimagined Study 752,001 1,000,000 931,548
C.8904 - Discovery Walk Active Construction 5,938,193 15,720,000 14,584,439 4,121,383
C.8905 - CnstrctSnSwCpBys3AveSWfr2StSW Open 29,606 3,100,000 29,606
Total Econ Development/Public Realm 8,024,809 63,414,571 48,764,218 4,636,312
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 4,800,000 4,800,000
C.7318 - Reconst North Broadway - Active Construction - 4,400,000 4,000,000
C.1037 - Steam Replace/District Energy Active Construction - 2,000,000 731,815 -
C. 4716 Downtown Sidewalk Experience Enhancement Active Construction 562,836 2,900,000 2,131,000
C. 7344 Reconstruct 3rd Avenue NW Between 4th St SW and 5th St SW Active Construction 38,272 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 108,296 1,300,000 280,000
Total Infrastructure 885,509 35,873,083 28,767,203 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 2,170,246 41,885,660 11,587,112
C.8709 - Arrive Rochester Implementatn Ongoing 44,672 300,000 163,437
C.8903 - Dedicated Bike Lanes-3rd/4thAve&CtrSt Complete 2,038,300 1,745,083 -
Total Transit 2,214,918 67,311,731 34,430,959 -
Grand Total 11,800,269 168,695,662 116,243,416 4,664,136
DMCC Projects by Category
Managed by City of Rochester
Through December 2023
6
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7
Destination Medical Center
MEMO
To: Brian Anderson, Assistant Treasurer, DMC Corp.
From: Patrick Seeb, Executive Director, DMC EDA
Date: 01/26/24
RE: Request for 2023 Budget Encumbrance
The 2023 DMC EDA work plan approved by the DMC Corp. board of directors and Rochester City Council
included an objective to “(l)aunch a website housed within www.dmc.mn that includes information on
business development in the DMC district, out-of-market job creators and investors, site selection
professionals, and targeted industry research.” Some revisions were made to the DMC website, but the
project remains a work in progress.
The DMC EDA is requesting that the DMC Corp. board of directors approve a 2023 operating budget
encumbrance of $100,000 to pay for these services. Funds remain available in the 2023 budget to cover
these costs: as of December 31, 2023 DMC EDA operating budget expenses paid by the DMC Corp.
totaled $2,208,005.62, or 84% of the approved $2.623,528.00 2023 budget.
8
Annual Report to the Legislature
To: DMCC Board of Directors
From: DMC EDA
Date: January 26, 2024
Request of the board of directors:
Approve Resolution A, “Authorizing Report to the Legislature Pursuant to Statute”
Overview:
The Minnesota state statutes governing the DMC initiative provide that by February 15 of each year, the
DMCC and the City of Rochester must jointly submit a report to the chairs and ranking minority members
of the legislative committees and divisions with jurisdiction over local and state government operations,
economic development, and taxes, to the Commissioners of Revenue and Employment and Economic
Development, and to Olmsted County.
The report must include the following specific elements:
• the development plan and any proposed changes to the development plan
• progress of projects identified in the DMC development plan
• actual costs and financing sources, including the amount paid with DMC state aid, and required
City and County DMC contributions of projects completed in the previous two years by the DMCC,
City, County, and Mayo Clinic
• estimated costs and financing sources for projects to be started in the next two years by the
DMCC, City, County, and Mayo Clinic
• debt service schedules for all outstanding obligations of the City for debt issued for DMC projects
DMC EDA, DMCC, and City staff have prepared a draft report for DMCC and City Council consideration.
9
A.
DESTINATION MEDICAL CENTER CORPORATION
RESOLUTION NO. __-2024
Authorizing Report to the Legislature Pursuant to Statute
BACKGROUND RECITALS
A. Minnesota Laws, Chapter 143, Article 10 (the “Act”) provides that by February
15 of each year, the Destination Medical Center Corporation (“DMCC”) and the City of
Rochester (the “City”) must jointly submit a report to the chairs and ranking minority members
of the legislative committees and divisions with jurisdiction over local and state government
operations, economic development, and taxes, to the Commissioners of Revenue and
Employment and Economic Development, and to Olmsted County. The DMCC and the City
must also submit the report as provided in Minnesota Statutes, Section 3.195. The report must
include the following specific elements:
(1) the development plan and any proposed changes to the development plan;
(2) progress of projects identified in the development plan;
(3) actual costs and financing sources, including the amount paid with state
aid under section 469.47, and required local contributions of projects
completed in the previous two years by the corporation, city, county, and
the medical business entity;
(4) estimated costs and financing sources for projects to be started in the next
two years by the corporation, city, county, and the medical business entity;
and
(5) debt service schedules for all outstanding obligations of the city for debt
issued for projects identified in the plan.
B. The DMCC and City staff have prepared a draft report, due on February 15, 2024,
and attached as Exhibit 1.
RESOLUTION
NOW, THEREFORE, BE IT RESOLVED, by the Destination Medical Center
Corporation Board of Directors that the Chair or Vice Chair of the DMCC is authorized to
execute and submit the report to the Minnesota Legislature as required by the Act, in form
similar to the report attached here as Exhibit 1, as may be modified through further discussions
with the City, and to take such other actions as are necessary and appropriate to effectuate the
timely submission of the report to the Minnesota Legislature.
1448137.DOCX
10
February , 2024
The Honorable Erin Murphy
Chair, State and Local Government and
Veterans Committee
Minnesota State Senate
3211 Minnesota Senate Building
95 University Ave W
St. Paul, MN 55155
The Honorable Ginny Klevorn
Chair, State and Local Government Finance
and Policy Committee
581 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155-1206
The Honorable Bruce Anderson
State and Local Government and Veterans
Committee
Minnesota State Senate
2209 Minnesota Senate Building
95 University Ave W
St. Paul, MN 55155
The Honorable Jim Nash
State and Local Government Finance and
Policy Committee
349 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155-1206
The Honorable Bobby Joe Champion
Chair, Jobs and Economic Development
Committee
Minnesota State Senate
3401 Minnesota Senate Building
95 University Ave W
St. Paul, MN 55155
The Honorable Hodan Hassan
Chair, Economic Development Finance and
Policy Committee
Minnesota House of Representatives
597 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155-1206
The Honorable Rich Draheim
Jobs and Economic Development Committee
Minnesota State Senate
2225 Minnesota Senate Building
95 University Ave W
St. Paul, MN 55155
The Honorable Jon Koznick
Economic Development Finance and Policy
Committee
Minnesota House of Representatives
281 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155-1206
The Honorable John Marty
Chair, Finance Committee
Minnesota State Senate
3235 Minnesota Senate Building
95 University Ave W
St. Paul, MN 55155
The Honorable Liz Olson
Chair, Ways and Means Committee
Minnesota House of Representatives
479 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155-1206
11
February , 2024
Page 2
The Honorable Eric Pratt
Finance Committee
Minnesota State Senate
2217 Minnesota Senate Building
95 University Ave W
St. Paul, MN 55155
The Honorable Pat Garofalo
Ways and Means Committee
Minnesota House of Representatives
295 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155-1206
The Honorable Ann Rest
Chair, Taxes Committee
Minnesota State Senate
328 Capitol
75 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155
The Honorable Aisha Gomez
Chair, Taxes Committee
Minnesota House of Representatives
453 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155-1206
The Honorable Bill Weber
Taxes Committee
Minnesota State Senate
2211 Minnesota Senate Building
95 University Ave W
St. Paul, MN 55155
The Honorable Greg Davids
Taxes Committee
Minnesota House of Representatives
283 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155-1206
Commissioner Matt Varilek
Minnesota Department of Employment and
Economic Development
Great Northern Building
180 E. 5th Street, Suite 1200
St. Paul, MN 55101
The Honorable Sheila Kiscaden
Chair, Olmsted County
Board of Commissioners
151 4th St SE
Rochester, MN 55904
Commissioner Paul Marquart
Minnesota Department of Revenue
600 North Robert Street
St. Paul, MN 55101
Re: Destination Medical Center - February 15, 2024 Report
Dear Senators, Representatives, Commissioners, and Chairs:
On behalf of the Destination Medical Center Corporation (the “DMCC”) and the
City of Rochester (the “City”), we are pleased to submit the enclosed annual report on the
progress of the Destination Medical Center (“DMC”) initiative, in accordance with
Minnesota Statutes, Sections 469.40 – 469.47 (the “Act”).
The Act requires that this report include five elements: (1) the DMC development
plan and any proposed changes; (2) progress of projects; (3) costs and financing sources,
including State funding and required local contributions, for recent projects; (4) estimated
costs and financing sources for future projects; and (5) debt service schedules for all
outstanding obligations of the City for debt issued for DMC projects. We discuss each of
these elements in the report. Below, we provide a summary of DMC’s 2023 milestones,
as well as a brief background of Minnesota’s largest economic development initiative.
12
February , 2024
Page 3
Destination Medical Center: 2023 Milestones
The DMC public-private partnership continued to flourish in 2023, ten years after
the Legislature enacted this historic economic development initiative. Two highlights of
the year deserve particular attention in the mission to position Rochester, Minnesota as
the world’s premier destination for health and wellness. First, Mayo Clinic announced a
momentous investment in the Bold. Forward. Unbound. in Rochester initiative. Second,
qualified private investments from 2013 through 2022 neared $1.5 billion.
Mayo Clinic announced a $5 billion expansion in its Rochester campus, the largest
investment in Mayo’s 160-year history and the largest investment in Minnesota history.
Mayo plans to add five new buildings with 2.4 million square feet of space, with a focus
on integrating in-person and virtual visits and shading the traditional lines between
inpatient and outpatient care and between in-person and digital health care. The project
features two new clinical buildings at the center of campus, located in the heart of the
DMC development district. Skyways and tunnels will connect the new facilities with
existing buildings, as well as downtown retail, housing, higher education facilities, and
other multi-purpose community assets.
The success of the DMC initiative through 2023 helped to build the foundation to
support Mayo Clinic’s new multi-billion-dollar investment. Mayo Clinic’s Bold. Forward.
Unbound. in Rochester initiative will expand its clinical, research, and education facilities
in Rochester and critically advance the DMC initiative.
As to private investment certifications, in 2023, we certified to the Minnesota
Department of Employment and Economic Development (“DEED”) a total of
$199,088,689.42 for the year ending December 31, 2022, which includes
$172,632,461.06 in Mayo Clinic investments and $26,456,228.36 in other private
investments. The cumulative total of Mayo Clinic and other private investments through
2022 is $1,461,132,648.74. In addition, as to transportation, the City certified City and
County transit contributions of $9,081,280.13 for 2022, qualifying for the maximum
disbursement of State transit aid of $7,500,000.
In addition to these certified investments, there are many other projects proposed
or under construction, the majority of which are private investments with no direct DMC
public assistance. A map of the DMC development district and key public and private
projects is attached as Exhibit A to the report. A summary of significant projects is
attached as Exhibit B to the report.
Destination Medical Center: Background
The Act established a unique public-private partnership to lead this historic
economic development initiative. The law also required private investment to lead the
public investment: it required $200 million in private expenditures before any State
funding occurred. This threshold was surpassed in 2017, and more than $1.46 billion of
private funding has been certified through 2022.
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February , 2024
Page 4
The Act further established the partnership between the DMCC, the City, Mayo
Clinic, and Olmsted County. The DMCC Board of Directors is appointed by the Governor,
the City, the County, and Mayo Clinic. Key funding and strategy decisions require
approval by both the DMCC and the City Council. Specifically, the Act required the
preparation and joint approval of a development plan (the “Development Plan”), which
serves as the strategic framework for DMC’s business and economic development
strategy. It includes land use, transportation and infrastructure planning, market
research, funding priorities, business and economic development, and market strategies.
After City approval, the DMCC adopted the Development Plan on April 23, 2015. The
Development Plan must be updated not less than every five years. The Five-Year Update
was approved by the City and by the DMCC in 2020. The Ten-Year Update is underway
and is scheduled for approval in May of 2025.
The benefits of the DMC initiative may be measured in other ways. From the end
of 2015 through the first quarter of 2023, Mayo Clinic alone added approximately 6,500
employees in Rochester. Hundreds of housing units and tens of thousands of square feet
of bio-med-tech space have been developed, and hundreds of community members have
been engaged in the visioning and design of DMC public investments. Mayo Clinic’s Bold.
Forward. Unbound. in Rochester. will lead transformational progress on all fronts.
For more information, including viewing the DMC Development Plan, public
meeting materials, project updates, investor and developer information, and market
research, visit www.dmc.mn. The City’s website, www.rochestermn.gov, also provides
information on the DMC initiative.
Thank you for your consideration of this annual report. On behalf of both the
DMCC and the City, we welcome your comments or questions. We look forward to
continued progress on the Destination Medical Center initiative in 2024.
DRAFT DRAFT
Pamela Wheelock, Chair Kim Norton, Mayor
Destination Medical Center Corporation City of Rochester
Enclosures
cc: Legislative Reference Library
1760137-7.DOCX
14
Capital Improvement Plan (CIP)
City of Rochester: 507.328.2900
City of Rochester
DMC Corporation
201 4th St. SE
Rochester, MN 55904
rochestermn.gov
dmc.mn
REPORT Destination Medical Center Corporation
& City of Rochester
ANNUAL
February 15, 2024
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01
Discovery Walk
Heart of the City-Phase One
02-04
Riverfront Reimagined
05
Bryk on Broadway
Soldiers Field Memorial Park
TABLE OF
CONTENTS
Mobility
Capital Improvement Plan (CIP)
Statutory Element Three- Actual Costs and Financing
Statutory Element Four- Estimated Cost for Future Projects
Statutory Element Five- Debt Service Schedule
Exhibit A- Map of DMC Development District
Exhibit B- Summary of Major Projects
Projects without DMCC Funding
Exhibit C- Annual Certification of Mayo Clinic and others
Exhibit D- Annual Certification of City Expenditures
Exhibit E- DEED Certifications
Exhibit F- City Debt Service Schedule
Summary of Five Statutory Elements
Statutory Element One-Development Plan
Statutory Element Two- Progress of Projects
06
07
08
09
10
11
12-13
14-15
16-18
19
20-21
22-25
26-27
28-39
40-42
43-46
47-48
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ONE
The Development Plan and any
proposed changes to the
Development Plan.
THREE
Actual costs and financing
sources, including the amount
paid under Minnesota Statutes
Section 469.47, and required
local contributions of projects
completed in the previous two
years by the DMCC, the City,
Olmsted County and Mayo Clinic.
FIVE
Debt service schedules for all
outstanding obligations of the
City for debt issued for projects
identified in the plan.
TWO
Progress of projects
identified in the
Development Plan.
FOUR
Estimated costs and
financing sources for
projects to be started in
the next two years by the
DMCC, City, Olmsted
County, and Mayo Clinic.
01
Minnesota Statutes, Section 469.43, subd. 8
requires that five elements be included in
this annual report.
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ONE
The Development
Plan and any
proposed
changes to the
Development
Plan.
FIRST
AMENDMENT
SECOND
AMENDMENT
TEN YEAR
UPDATE
2016 2020 2020 2025
Modification
made to the
DMC Develop-
ment District.
FIVE
YEAR UPDATE
The update can be found at
https://dmc.mn/investors-
and-developers/
Report expected
to be presented
for approval in
May 2025
2015
INITIAL
ADOPTION
April 15, 2015.
Development
Plan adopted.
02
Modification
made to the
DMC Develop-
ment District.
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03
Development Plan.
One of the primary goals of the Act was the adoption of a Development
Plan. In September 2013, the DMCC established specific goals and objectives
for the Development Plan: to create a comprehensive strategic plan, and
over the life of the project, to stimulate over $5 billion in private investment
that will be supported by $585 million in public funds, create 35,000-45,000
new jobs, generate $7.5 billion to $8.5 billion in net new tax revenue, and
achieve the highest quality patient, visitor, any resident experience..
The Development Plan is the strategic framework for the DMC initiative,
establishing a comprehensive business and economic development strate-
gy. It includes land use, transportation and infrastructure planning, market
research, funding priorities, business and economic development, and
market strategies. Upon making the findings set forth in the Act, including
finding that the City had approved the Development Plan, the DMCC adopt-
ed the Development Plan on April 23, 2015. The Act requires that the Develop-
ment Plan be updated not less than every five years. The Five-Year Update
was approved by the City and by the DMCC in 2020. The Ten-Year Update is
underway and is scheduled for approval in May of 2025. DR
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Development Plan cont.
Private Investment Leads Public Investment.
The Act required that private investment lead the
way for this private-public model of partnership. The
required private investment of $200,000,000 before
state funding would begin under the Act was met in
2017. The graph below depicts the cumulative private
investment, in millions of dollars, since 2013.
2013
200
400
600
800
1,000
1,200
1,400
1,600
2014 2015 2016 2017 2018 2019 2020 2021 2022
0
CUMULATIVE INVESTMENT IN MILLIONS
04
DRAFT
20
Progress of projects
identified in the
Development Plan.
According to the Act, a public infrastruc-
ture project must be approved by the DMCC
before it is proposed to the City. The DMCC
must review the project proposal for consis-
tency with the Development Plan.
Since the adoption of the Development
Plan on April 23, 2015, a number of projects
have been approved by the DMCC and the
City. A map of the DMC Development
District and key projects is included as
Exhibit A. A summary of major approved
projects in the DMC Development District
is attached as Exhibit B.
We wish to highlight the progress in 2023
of certain approved projects:
Discovery Walk
Heart of the City Phase One
Riverfront Reimagined
Bryk on Broadway
Soldiers Field Memorial Park
Mobility
Capital Improvement Plan
05
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DISCOVERY WALK
Discovery Walk is a four-block linear parkway along 2nd Avenue SW. It is planned to
connect Annenberg Plaza to Soldiers Field Memorial Park and function as an extension of
the Heart of the City public realm project. Discovery Walk is designed to feel like a park and
to promote health, wellness, and innovation. It will also serve as a catalyst for future private
development in Discovery Square. Construction advanced significantly in 2023, including
the pedestrian ramp located in the 300 block, pedestrian lighting art, and the snow melt
system. Completion is anticipated in spring 2024.
THE BIG DIG: A family friendly event hosted to
bring excitement about the project. Sept 2022
06
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HEART OF THE CITY PHASE ONE
07
The first phase of this
project was renovating the
east elements of Peace
Plaza and surrounding
areas. It was unveiled in
2023. The public realm proj-
ect features universal
design elements, sustain-
ability, integrated art and
improved infrastructure,
and a catenary lighting
system. This project has
stimulated new and
expanded commercial and
retail businesses in the area
and won the 2023 Award of
Excellence in Urban Design
from the American Society
of Landscape Architects.
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RIVERFRONT REIMAGINED
Following the City-initiated Downtown Waterfront S.E. Small Area Plan study
for a 60+ acre area located southeast of the downtown core on the Zumbro River,
the City continues to lead development of this future mixed-use neighborhood.
In July 2022, the City adopted the Riverfront Small Area Plan as a preferred
plan to guide the transformation of the redevelopment area as a “front door” to
the river and gateway into downtown. In August of 2022, the City was awarded a
federal RAISE grant in the amount of $19.9 million for the Sixth Street Bridge
crossing the Zumbro River. In 2023, the project advanced with site preparation,
flood wall work with the Army Corps of Engineers, further design, and interim
site activation.
East and West side renderings of Riverfront Area.
08
Downtown Waterfront Southeast
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The Bryk on Broadway, located at 401 Broadway Ave N.,
opened in 2023 as a mixed-use, mixed-income apartment
building with rents at varying levels. Of the 180 workforce
housing apartments, 54 units are income-restricted to those
at or below 50% of the area median income, 18 units to
those at or below 60% of the area median income, and 108
units to those at or below 80% of the area median income.
Rendering of BRYK on Broadway
09
BRYK ON BROADWAY
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(“Soldiers Field”) contains 150 acres of
memorials and active recreation space,
including 4,000 feet of riverfront. The north-
ern portion lies within the DMC Development
District and is featured in the Development
Plan as an anchor of the Education and
Recreation Subdistrict.
This project also maximizes connections to
other key features of the DMC Development
District: Discovery Walk will connect the
Heart of the City to Soldiers Field and the
Sixth Street Bridge will link Soldiers Field to
the downtown waterfront area.
The public realm improvements within the
district feature an aquatics center, with lap
pool, bath house, wading pool, and outdoor
seating, new basketball courts, adding a trail
through the northeast corner of the park,
nature play area, community shelter, public
restrooms, and new public parking.
Importantly, this project combines federal,
State, City, and DMC funding sources to rein-
vigorate this public asset. Project improve-
ments are well underway and construction is
expected to conclude in 2024.
SOLDIERS
FIELD
MEMORIAL
PARK
Soldiers Field Concept
10
Education &
Recreation
Subdistrict
Shelter &
Nature
Play
Trail
Connection
Aquatics
Lap &
wading
pools,
splash
pad &
lazy
river
Bathhouse
& pump
house
plaza,
trail, art,
landscaping,
overlook
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Progress continued on the approxi-
mately three-mile bus rapid transit project
known as “LINK.” This project has applied
for the Federal Transit Administration (FTA)
Small Starts funding process. In 2022, the
City and Mayo Clinic entered a twenty-year
operating agreement in which Mayo Clinic
will cover the annual local match for oper-
ating costs and all riders may use the
system without paying fares. In 2023,
design work was nearly completed, and
state and federal environmental reviews
concluded. With the significant progress in
project planning and qualifying expendi-
tures, the City certified, and the Minnesota
Department of Employment and Econom-
ic Development (DEED) approved,
$9,081,280.13 in City and County transit
contributions for 2022, qualifying for the
State’s disbursement of $7,500,00 as the
annual maximum of state transit aid.
MOBILITY
A critical component of the Link
experience is the future develop-
ment of the West Transit Village
at the western terminus at
Second Street SW. The vision for
the West Transit Village extends
far beyond parking, with the
potential uses of mixed income
housing, retail, and childcare.
In 2023, Mayo Clinic selected a
team of development partners to
prepare design options for a
final site plan.
Service early in the morning to late at night.
Service every 5 minutes during rush hours & 10 minutes other times.
Fare-free servicefor all riders.
Fully electric busfleet withon-routechargers.
Stations with shelter, heating, light, and real-time signage.
11
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24
CAPITAL IMPROVEMENT PLAN (CIP)
In addition to these projects, the DMCC and the City have approved a Capital Improvement Plan (“CIP”)
for public infrastructure projects for 2024. Projects identified in the CIP are categorized as follows:
Public Realm, Mobility, Strategic Redevelopment, and Streets and Sewers.
Chateau Theatre
Improvements and
Assets Preservation
Downtown
Waterfront: Riverfront
Pre-development
St. Mary’s Place:
Public Realm Design
and Construction
PUBLIC REALM
LINK Bus Rapid Transit,
including Second
Street Reconstruction
and Streetscape
MOBILITY STRATEGICREDEVELOPMENT STREETS ANDSEWERS
Sixth Street Bridge,
Sixth Street SE,
Waterfront
Connectivity
District Energy
Conversion to
geothermal well heat
pumps
Sanitary Sewer
Capacity Bypass on
Third Avenue SW
12
Bio-med tech
Workforce housing
Downtown property
support
DR
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The DMC-funded projects above reflect only a portion of the number and type
of public and private development projects in the DMC district. Early strategic
DMC investments in public infrastructure and commercial and residential proj-
ects successfully established Rochester as a destination for investment and
development. Other projects, which are now proceeding without the need for
public DMC support, include workforce and market-rate housing, extended stay
hotels for patients and companions, renovations to historic properties,
world-class medical care and research facilities, co- working space, small
business improvements, and more.
In addition to these transformative capital investments, the City and the DMC
EDA have successfully secured economic revitalization, sustainability, workforce,
and equitable community-building grants, including through DEED’s Main Street
Economic Revitalization Program, Bloomberg Philanthropies Global Mayors
Challenge, and the McKnight Foundation. These grant awards, secured by the
DMCC’s partners, support and augment the advancement of DMC priorities.
13
DMC public realm projects continue to benefit from community co-design.
This process recruits those most impacted by a project to assist in reaching
previously underrepresented communities and perspectives. In the fall of 2023,
the DMC EDA trained a third cohort of community co-design leaders, resulting
in over 44 community leaders trained to advocate for co-design efforts within
their organizations.
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THREE
Actual Cost and
Financing
Sources.
Actual costs and financing sources, including the amount paid under Minnesota Statutes, Section
469.47 and required local contributions of projects completed in the previous two years by the DMCC,
the City, Olmsted County, and Mayo. The Act requires that an annual certification of private investment
by Mayo Clinic and other private investors be made to DEED by April 1 of each year, and DEED must
certify that $200,000,000 of private investment has been made before any state funding may be paid.
This threshold was met and exceeded in 2017. The cumulative total amount of certified Mayo Clinic and
other private investments to date is $1,461,132,648.74.
14
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In compliance with Minnesota Statutes, Section 469.47, attached is the annual certification of Mayo
Clinic and other private investment that was submitted to DEED on March 28, 2023 (Exhibit C).
The annual certification of City expenditures, which was submitted to DEED on March 22, 2023 is
also attached (Exhibit D). DEED conducted its own audit process of the certified expenditures and then
approved the expenditures. The DEED certifications, dated June 16, 2023, are attached (Exhibit E).
In addition, please note the following information:
15
Through December 31, 2023,
Olmsted County has contributed
$19,500,000.
Actual costs paid by the City from
commencement through December
31, 2023 have totaled $64,810,418.21,
based on year-end unaudited costs.
The funding source was initially City
internal borrowing, which is being
repaid, along with the costs for new
projects and initiatives, by the City’s
0.25% DMC sales tax. The City has
also issued capital debt for a new
parking ramp in the district. Just as the
Mayo Clinic investments and other
private investments have
underscored the commitment to DMC,
so too have the City contributions.
The 2024 combined operating and
capital improvements budget for
the DMC totals $39,565,314 a portion
of which (approximately $8 million)
is being paid for with funding other
than state funds. Of this amount
$3,718,569 will be provided by Olmst-
ed County from its 0.25% sales tax.
The remaining amount is to be provid-
ed by the City of Rochester from a
variety of City funding sources, includ-
ing its 0.25% DMC sales tax. In
addition, Mayo Clinic has pledged
financial and in-kind funding to the
DMC EDA in the amount of $1,531,700.
Through December 31, 2023,
General State Infrastructure Aid in the
amount of $127,591,189.36 has been
received. State Transit Aid in the
amount of$7,500,000 has been
received through December 31, 2023.
$39,565,314
$127,591,189.36
$19,500,00
$64,810,418.21
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FOUR
Estimated Costs
and Financing
Sources for
Projects to be
started in the
next two years
by the DMCC,
City, Olmsted
County, and
Mayo Clinic.
The Development Plan sets forth a framework and examples
of projects that may be considered for funding in the next
several years. Each project will be approved on an individual
basis. See also the report response to statutory elements “2”
and “3”.
16
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Rendering of planned new Mayo Clinic facilities in downtown Rochester
BOLD. FORWARD. UNBOUND. IN ROCHESTER
Project complete by 2030
$5 billion investment
$500 million in sustaining projects
2.4 million square feet of new space
First buildings open in 2029
$600M
Rochester
2023
Permit
Valuation
$646M
St. Croix
Bridge
$1 B
US Bank
Stadium
$2.6 B
2024 State
of MN
Bonding
Bill
$2.7 B
SW Light
Rail
$3.2 B
MSP
Airport
Expansion
$5 B
Mayo
BOLD
FORWARD
UNBOUND
IN ROCHESTER
Comparative Investments within Minnesota
Highlights of the project:
17
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18
DMC CAPITAL PLAN
DESCRIPTION
PUBLIC REALM
MOBILITY
STRATEGIC DEVELOPMENT
STREETS AND SEWERS
OPERATIONS
DESCRIPTION
DESCRIPTION
DESCRIPTION
DESCRIPTION
Chateau Theatre Improvements and asset Preservation
Downtown Waterfront-Pre-Riverfront Development
St. Marys Place:Public RealmDesign and Construction
Rapid Transit, including SecondStreet Reconstruction andStreetscape
DMC Corp.
DMC Administrative Supportby City of Rochester
DMC EDA
City DMC Project Management
DMC Development Plan Update
2024 DMC FUNDING SOURCE
PHASE 2 (2020-2024)DMC FUNDING
STATE GSIA
STATE GSIA
STATE GSIA
STATE GSIA
STATE GSIA
STATE GSIA
STATE GSIA
STATE GSIA
DMC COUNTY TRANSIT AID
DMC COUNTY TRANSIT AID
CITY
CITY
CITY
CITY
Strategic Redevelopment (Bio-med-tech, workforcehousing, downtown propertysupport
Streets: Sixth Street Bridge SE,Waterfront Connectivity
District Energy
Sewer: Construct Sanitary SewerCapacity Bypass on 3rd Ave SW from2nd St SW to 4th St SW
PROPOSED 2024DMC FUNDING
$1,000,000
$1,000,000
$500,000
Subtotal $2,500,000
$3,718,569
Subtotal $9,296,423
$5,577,854
$10,000,000
Subtotal $10,000,000
$4,000,000
$7,200,000
$1,500,00
Subtotal $12,700,000
$218,930
$100,000
$2,842,507
Subtotal $5,068,891
$1,157,454
$750,000
2024 DMCFUNDING TOTAL
$39,565,314
2024 DMC GSIA:2024 City DMC Aid:
2024 County DMC Transit Aid:
2024 State DMC Transit Aid:
$25,200,000
$5,068,891
$3,718,569
$5,577,854
Phase 2Subtotal
Phase 2TargetRange
Phase 2Subtotal
Phase 2TargetRange
Phase 2Subtotal
Phase 2TargetRange
Phase 2Subtotal
Phase 2TargetRange
Phase 2Subtotal
Phase 2TargetRange
$50,670,000 $35-50M
$60,057,083 $60-75M
$30,300,000 $20-45M
$34,477,223 $35-50M
$20,214,543 $15-20M
$195,718,847 $200,000,000
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FIVE
Debt service
schedules for all
outstanding
obligations of
the City for debt
issued for
projects
identified in
the plan.
The debt service schedule is attached as Exhibit F.
19
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EX
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MAP OF DMC DEVELOPMENT
DISTRICT AND KEY PROJECTS
20
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MAP OF DMC DEVELOPMENT
DISTRICT AND KEY PROJECTS
A
EXHIBIT
21
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34
SUMMARY OF
MAJOR
PROJECTS
EXHIBIT
22
B
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TWO DISCOVERY
SQUARE
Located at 209 5th St
SW, this expansion of
the DMC bio-medical,
research, and technolo-
gy innovation campus is
a 125,000 square foot
bioscience building. It
features tech-forward
tenant spaces designed
with flexible lab capacity
and leading-edge tech-
nology. Construction
was completed in 2022.
HYATT HOUSE
The Hyatt House
project is located in the
“Central Station” subdis-
trict as described in the
Development Plan.
Approved in 2018, the
$44 million project
includes an eight-story,
172- room extended-stay
hotel, and is providing
approximately 257
construction jobs and
while creating 38 per-
manent jobs. This
project was completed
in 2021.
This phase of the project is a renovation of the east
side of Peace Plaza and surrounding areas.
The construction of this transformative project, which
includes improved safety, accessibility, universal design
elements, sustainability, integrated art, and improved
infrastructure, is largely completed, with a catenary
lighting system installed in late 2023.
HEART OF THE CITY PHASE 1- PEACE PLAZA
HOTEL INDIGO
RENOVATIONS
The Hotel Indigo
involved the renovation
of an existing 172- room
Holiday Inn, located in
the “Downtown Water-
front” subdistrict as
described in the Devel-
opment Plan. Approved
in 2018, the $42 million
redevelopment includ-
ed the addition of
33,000 square feet to
the existing 114,500
square feet and provid-
ed approximately 111
construction jobs and
28 new permanent jobs.
Opening of the new
hotel and restaurant
occurred in 2020.
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EXHIBIT
THE BERKMAN
The Berkman Apart-
ments (formerly known
as the “Alatus Project”)
is located on 2nd
Street SW in the “Saint
Marys” subdistrict as
described in the Devel-
opment Plan. Approved
in 2016, this mixed- use
project involved the
construction of an
approximately
350,000 square foot,
thirteen-level commer-
cial and residential
complex. It includes 350
market-rate rental units,
created an estimated
235 construction jobs
and eight permanent
jobs, and generated a
total of $115 million in
private investment. The
Berkman was
completed in 2020.
HILTON MAYO
The Hilton Rochester
Mayo Clinic Area
(formerly known as the
“Broadway at Center”
project) is located in the
“Downtown Waterfront”
subdistrict as described
in the Development
Plan. Approved in 2015,
this 371,000 square foot
mixed-use project
includes a 264-room
hotel, restaurants, retail
space, a skyway connec-
tion, and a five-level
public parking ramp
with 540 public spaces
and 90 private spaces.
The restaurants and
hotel opened in 2019.
BRYK ON
BROADWAY
This Bryk on Broad-
way is located at 401
Broadway Ave N. It is a
mixed-use, mixed-in-
come apartment build-
ing consisting of 180
workforce housing
apartments, providing
rent at varying levels.
Construction was
completed in 2023.
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HEART OF THE CITY PHASE 1- PEACE PLAZA
WELLS FARGO
RENOVATION
This project is a
renovation of a 92,000
square foot existing
building, located in the
“Heart of the City” sub-
district as described in
the Development Plan.
Approved in 2018, this
project is a catalyst for
the public realm in
the Heart of the City
subdistrict and includes
connections to the
street and pedestrian
skyway. The renovation
has made approximate-
ly 23,000 additional
square feet of
commercial or office
space available. The
project created an esti-
mated 30 construction
jobs and provided 115
permanent jobs. This
project was completed
in 2020.
ONE DISCOVERY
SQUARE
One Discovery Square
(formerly known as
Discovery Square Phase
One) is on First Avenue
SW in the “Discovery
Square” subdistrict as
described in the Develop-
ment Plan. Approved in
2017, this approximately
$35 million bio-science
building will be a center of
innovation and is housing
companies whose mission
is to accelerate bioscience
and technology discover-
ies to market. The four
story, 89,000 square foot
building includes office,
collaborative, and retail
space. As noted above,
this project is the first
phase of achieving a key
component of the Devel-
opment Plan: providing
jobs in the bio-science
sector. One Discovery
Square was completed in
2019 and is approximately
100 percent leased
THE MAVEN
ON BROADWAY
The Maven on Broad-
way (formerly known as
Urban on First) is locat-
ed south of 4th Street
SW between 1 st Avenue
SW and Broadway
Avenue and is in the
“Discovery Square”
subdistrict as described
in the Development
Plan. Approved in 2017,
this approximately $38
million mixed use proj-
ect includes a six-story
building with 156
market rate rental units,
parking, and street level
commercial and retail
space for a total of
238,700 square feet. The
Maven on Broadway
was completed in 2019.
25
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PROJECTS
WITHOUT
DMCC
FUNDING
ASSISTANCE
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CONLEY MAASS BUILDING
This project involved the renovation of a
historic building into a restaurant space
and leased space for high tech
companies. The renovation was
completed in 2016.
1ST AVENUE FLATS
This is a 68-unit affordable housing
building, and all of the units are
income-restricted to persons at or
below 60% of the area median income.
The building
opened in 2017.
FLATS ON 4TH
This project is a six-story mixed use
development consisting of 92 rental
apartment units, with 19 of the units
affordable to persons at 50% of the area
median income, and 2,300 square feet
of ground floor retail space. The build-
ing opened in 2018.
RESIDENCE AT DISCOVERY
SQUARE
The Residence at Discovery Square is a
six-story, mixed use development con-
sisting of 143 rental apartment units,
with 20% of the units affordable to
persons at 60% of the area median
income, and 15,400 square feet of
commercial/retail space. It opened in
2019.
HUE APARTMENTS
The Hue Apartments is a six-story,
mixed use development consisting
of 50 rental apartment units and 2,000
square feet of commercial/retail space.
The Hue Apartments opened in 2020.
TOWNEPLACE SUITES
BY MARRIOT
TownePlace Suites by Marriot consists
of a 110-unit hotel with two levels of
underground parking. The hotel
opened in 2021.
LOFTS AT MAYO PARK
The Lofts at Mayo Park is a five-story,
29-unit market rate rental apartment
project, which opened in 2017.
501 ON FIRST
501 on First is a five-story, mixed use
development consisting of 84 rental
apartment units and 21,000 square feet
of commercial/retail spaces. It opened
in 2018.
EVEN HOTELS AND
STAYBRIDGE SUITES
This is a 246-unit dual-branded hotel,
which opened in 2021.
UNIVERSITY OF MINNESOTA
ROCHESTER STUDENT
HOUSING
In September 2023, the University of
Minnesota Rochester opened a new 400-per-
son-capacity student housing development at
150 Broadway Ave. South in the heart of down-
town Rochester. The project, created via the
renovation of the former DoubleTree Hotel on
Broadway Avenue South, included approxi-
mately $8 million in improvements.
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EX
H
I
B
I
T C
ANNUAL CERTIFICATION
OF MAYO CLINIC AND
OTHER PRIVATE
INVESTMENTS
28
As to private investment certifications, in 2023, we certified to the Minnesota
Department of Employment and Economic Development (“DEED”) a total of
$199,088,689.42 for the year ending December 31, 2022, which includes
$172,632,461.06 in Mayo Clinic investments and $26,456,228.36 in other private
investments. The cumulative total of Mayo Clinic and other private investments
through 2022 is $1,461,132,648.74.
$199,088,689.42$172,632,461.06$26,456,226.36
Private Investments Total Investment
PRIVATE INVESTMENT
CERTIFICATIONS
IN 2023
Mayo Clinic InvestmentsDR
A
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44
29
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A
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45
A
30
DR
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46
AATTACHMENT
ONE
ATTACHMENT 1-1 31
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47
32
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48
33
DR
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49
ATTACHMENT TWO
34
DR
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50
a
35
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51
36
DR
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52
37
DR
A
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53
ATTACHMENT
THREE
38
DR
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54
39
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55
EX
H
I
B
I
T
D
ANNUAL
CERTIFICATION
OF CITY EXPENDITURES.
$60,915,015.66
Total Expenditures
CITY OF ROCHESTER’S
CERTIFIED
EXPENDITURES
JUNE 2013 THROUGH
DECEMBER 2022
40
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41
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57
42
DR
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DEED
CERTIFICATIONS
EX
H
I
B
I
TE
43
DR
A
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T
59
44
DR
A
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60
45
DR
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61
46
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EXHIBIT
CITY DEBT
SERVICE SCHEDULE
47
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A
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T
63
35
Post-Sale
$21,265,000
General Obligation Tax Increment Revenue Bonds, Series 2017B (Parking Ramp Project)
DEBT SERVICE SCHEDULE
Series 2017B GO TIF Parki /SINGLE PURPOSE/10/16/2017
ROCHESTER, MINNESOTA
SIGNIFICANT DATES
Dated Date...........................................................................................................................................................................11/16/2017
Delivery Date....................................................................................................................................................................... 11/16/2017
First Ccoupon Date................................................................................................................................................................8/01/2018
Yield Statistics
Bond Year Dollars................................................................................................................................................................$254,390.21
Aaverage Life.........................................................................................................................................................................11.963 Years
Aaverage Coupon.................................................................................................................................................................. 3.2177754%
Net Interest Cost (NIC).........................................................................................................................................................2.7176241%
True Interest Cost (TIC)....................................................................................................................................................... 2.6417803%
Bond Yield for Arbitrage Purposes.......................................................................................................................................2.6130470%
All Inclusive Cost (AIC)........................................................................................................................................................ 2.6889724%
IRS Form 8038
Net Interest Cost.................................................................................................................................................................. 2.6154299%
Weighted Average Maturity..................................................................................................................................................11.612 Years
----8102/10/20
48.936,04548.936,045--8102/10/80
02/01/2019 550,000.00 5.000%381,628.13 931,628.13
31.878,76331.878,763--9102/10/80
02/01/2020 735,000.00 5.000%367,878.13 1,102,878.13
31.305,94331.305,943--0202/10/80
02/01/2021 775,000.00 5.000%349,503.13 1,124,503.13
31.821,03331.821,033--1202/10/80
02/01/2022 815,000.00 5.000%330,128.13 1,145,128.13
31.357,90331.357,903--2202/10/80
02/01/2023 855,000.00 5.000%309,753.13 1,164,753.13
31.873,88231.873,882--3202/10/80
02/01/2024 895,000.00 5.000%288,378.13 1,183,378.13
31.300,66231.300,662--4202/10/80
02/01/2025 940,000.00 5.000%266,003.13 1,206,003.13
31.305,24231.305,242--5202/10/80
02/01/2026 990,000.00 5.000%242,503.13 1,232,503.13
31.357,71231.357,712--6202/10/80
02/01/2027 1,035,000.00 5.000%217,753.13 1,252,753.13
31.878,19131.878,191--7202/10/80
02/01/2028 1,090,000.00 2.000%191,878.13 1,281,878.13
31.879,08131.879,081--8202/10/80
02/01/2029 1,110,000.00 2.250%180,978.13 1,290,978.13
36.094,86136.094,861--9202/10/80
02/01/2030 1,135,000.00 3.000%168,490.63 1,303,490.63
36.564,15136.564,151--0302/10/80
02/01/2031 1,170,000.00 2.750%151,465.63 1,321,465.63
31.873,53131.873,531--1302/10/80
02/01/2032 1,200,000.00 2.750%135,378.13 1,335,378.13
31.878,81131.878,811--2302/10/80
02/01/2033 1,235,000.00 2.875%118,878.13 1,353,878.13
00.521,10100.521,101--3302/10/80
02/01/2034 1,270,000.00 2.875%101,125.00 1,371,125.00
57.868,2857.868,28--4302/10/80
02/01/2035 1,305,000.00 3.000%82,868.75 1,387,868.75
57.392,3657.392,36--5302/10/80
02/01/2036 1,345,000.00 3.000%63,293.75 1,408,293.75
57.811,3457.811,34--6302/10/80
02/01/2037 1,385,000.00 3.000%43,118.75 1,428,118.75
57.343,2257.343,22--7302/10/80
02/01/2038 1,430,000.00 3.125%22,343.75 1,452,343.75
74.507,054,92$74.507,581,8$-00.000,562,12$latoT
DATE PRINCIPAL COUPON INTEREST TOTAL P+I
48
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A
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Minnesota MedTech 3.0 (MMT3.0) Grant Application
To: DMCC Board of Directors
From: DMC EDA
Date: January 26, 2024
Request of the board of directors:
Acknowledge that DMC is a partnering organization within the MMT3.0 consortium, and as such will meaningfully
contribute to the MMT3.0 grant application project plan.
Background
• What is MMT3.0?
o A strategy to grow Minnesota’s global market share in the medical technology industry by building an
ecosystem that is even more connected, more strategic, and “smarter” through the incorporation of cutting-
edge technologies, such as artificial intelligence, machine learning, and data science.
o Grow the ecosystem to develop Smart MedTech products that are patient-ready, embraced by providers, and
market-ready with an accelerated timeline.
o Doing so will attract Smart MedTech businesses from the region and the world, bringing their technology to the
doorstep of the largest and smartest medical device ecosystem in the world.
• The U.S. Economic Development Administration posted a notice of funding opportunity (NOFO) for the 31 federally
recognized Regional Tech Hubs, as authorized by the 2022 CHIPS and Science Act.
o Aims to invest in regions across the country in key technology areas.
o Requires deep collaboration among industry, higher education, government, economic development, and
workforce/labor organizations.
o Designates U.S. regions with global leadership potential, which makes them eligible for federal programming
and access to federal funding.
• The grant opportunity is for $40-70M over 2-5 years for each of 5-10 regional tech hubs.
• The MMT3.0 strategy and the grant team are built around our rich history in medical devices.
o Led by GREATER MSP, the MN coalition includes 140+ individuals from ~30 organizations, including Mayo Clinic,
Destination Medical Center, University of MN, Medtronic, Allina Health, Boston Scientific, Fogarty Innovation,
gener8tor, HealthPartners, Medical Alley Association, Minnesota State Universities, Shakopee Mdewakanton
Sioux Community, Office of Governor Tim Walz, and many more.
DMC role in Grant Preparation
• Co-leading one of the five project streams, which involves engagement across all project streams and participants.
• Coordinating connections across multiple Mayo Clinic entities for their engagement in the initiative.
DMC Contributions to Grant Deliverables (examples)
• The MMT3.0 ecosystem becomes additive to the value proposition for our already-existing DMC lead generation
activities. Thus, DMC EDA will be positioned to bring Smart MedTech businesses into the Minnesota (including
Rochester) ecosystem.
• Coordinate and convene Rochester-based MMT3.0-related ecosystem meetings, conferences, and workshops as
needed.
• Contribute to developing and executing workforce development strategies.
Next Steps and Timelines
• Write first draft of project application by February 6.
• Three rounds of reviews, edits, and design by February 26.
• Submit grant February 28.
City of Rochester: Preparing for Transformation
To: DMCC Board of Directors
From: DMC EDA Staff
Date: January 26, 2024
Request of the board of directors:
Learn about the City of Rochester’s efforts to advance its organizational designs, succession planning, and resourcing to
meet this transformational moment in Rochester’s history. Discuss how DMC can strengthen its collaboration, aligning
and optimizing resources.
Background:
On January 17, 2024, the Rochester City Council held the first of at least two discussions regarding the transformative
impacts of projects across the city. As examples, these projects include the renewal of the local option sales tax and
associated community investments, Mayo Clinic’s Bold. Forward. Unbound. in Rochester program, and Link rapid transit.
Because the City of Rochester is a key DMC stakeholder and the entity with responsibilities for DMC public infrastructure
project delivery and fiscal management, shared understanding of City capabilities and needs will be necessary to
effectively enable and leverage these public and private projects.
The City staff narrative that informed the City Council discussion is below:
“The City of Rochester is experiencing significant transformation. This transformation results from several factors,
including our success in pursuing state and federal funding to support the City Council's strategic priorities. The City has
received significant State and Federal Funding for these priorities including funding for the $143 million Link Rapid
Transit project, the $29.9 million 6th Street Neighborhood & Riverfront improvements, and the $20 million Soldiers Field
renovation. Further, the Legislature and Rochester voters entrusted the City with a $205 Million extension of the Local
Sales Tax. This will provide investment in a new Regional Sports and Recreation Complex, Street Reconstruction, Flood
Control and Water Quality improvements, and Economic Vitality focused on housing. Finally, the state has invested
bonding dollars toward a Regional Parks and Forestry Maintenance Facility, jumpstarted a North Broadway Park and
Ride (built with a Federal Grant of $7.4 million) and we continue to leverage access to Inflation Reduction Act funds to
continue to expand sustainability in our downtown building energy transition. These successes, coupled with Mayo
Clinic’s announcement to invest $5 billion as part of their Bold. Forward. Unbound initiative, will present a once-in-a-
lifetime opportunity for Rochester.
As the City, along with partner organizations, begins to understand the challenges and opportunities associated with this
unprecedented growth, we want to review with the City Council our current organizational landscape, succession
planning, and the teammates and resources needed to 1) secure resources for projects, 2) deliver projects, and 3) meet
future service needs. This conversation will be coordinated over two study sessions on January 17 and February 12,
2024.”
66
DMC Development Plan Update
To: DMCC Board of Directors
From: DMC EDA
Date: January 26, 2024
Request of the board of directors:
Support or direction on current planning process, including identifying data needs to ensure informed
decision making.
Overview:
In accordance with the DMC Act, the DMC EDA will prepare an updated DMC Development Plan for DMCC
and Rochester City Council consideration in 2025. The update will ensure that the plan meets legislative
requirements and stakeholder expectations.
The DMC Act requires that the DMC development plan:
•Provides an outline for the development of the City as a destination medical center, and the Plan is
sufficiently complete, including the identification of planned and anticipated projects, to indicate its
relationship to definite State and local objectives;
•Affords maximum opportunity, consistent with the needs of the City, County, and State, for the
development of the City by private enterprise as a destination medical center;
•Conforms to the general plan for the development of the City and is consistent with the city
Comprehensive Plan;
•Includes strategic planning consistent with a destination medical center in the core areas of:
o commercial research and technology
o learning environment
o hospitality and convention
o sports and recreation
o livable communities, including mixed-use urban development and neighborhood residential
development, retail/dining/entertainment, health and wellness, and transportation
•Estimates short- and long-range fiscal and economic impacts
•Provides a framework to identify and prioritize short- and long-term public investment and public
infrastructure project development and to facilitate private investment and development, including
the criteria and process for evaluating and underwriting development proposals
•Includes land use planning; transportation and transit planning; operational planning required to
support the medical center development district; and ongoing market research plans
Additionally, as the 2020 DMC plan update did, this update can:
•Reflect the progress to-date against agreed-upon DMC goals
•Incorporate and/or complement other plans and strategies which may impact DMC
•Address community priorities
•Create opportunity to share and reaffirm DMC’s primary mission, vision, and purpose
67
Next Steps:
As the DMC initiative approaches the half-way (ten year) point of implementation, this update presents
an opportunity to comprehensively update the development plan.
Build out necessary data set to establish baseline assumptions and inform future decision making.
Identify existing plans or planning processes by others to avoid duplication of efforts.
Timeline:
Proposed update deadlines and approval dates are noted below. If this general schedule is agreed upon
by the DMCC, the majority of plan update work will occur from June 2024 to January 2025, with staff
updates at each regular board meeting.
Budget:
The approved 2024 DMC Capital Plan includes $750,000 to support the DMC plan update.
Affirm plan update
scope, requirements
Nov. ‘23 Feb. ‘24 May ‘24 Jan.-Feb. ‘25 May ‘25
Determine data needs
to ensure informed
decision-making;
identify existing
planning by others to
avoid duplication
Joint meeting:
DMCC, DMC-EDA,
City Council, County
Board
EDA recommends,
DMCC receives plan;
sets date for public
hearing; public
comment period
City Council considers
plan; DMCC public
hearing and plan
consideration
Update preparation,
regular meeting updates
68
DRAFT Table of Contents:
1) Executive Summary
a. Mission, Goals, and Vision
b. Governance Model
c. Guiding Principles of Development Plan
d. Market Overview
e. DMC Investment Priorities and Success Metrics
2) Significant Development Considerations
a. Mayo Clinic “Bold. Forward. Unbound.”
b. Post-COVID 19 Impacts on Downtown (Retail, workforce)
c. Major Project Construction Impacts (LINK BRT, UMR, etc.)
d. Macroeconomic Impacts on Real Estate Investment and Development (capital access, interest rates, workforce, supply chain, etc.)
e. District Energy
3) Market Trends and Demand Forecasts (through 2029 and 2035)
a. Health (sq ft)
b. Bio-Med-Tech (sq ft)
c. Office (sq ft)
d. Hotel (rooms)
e. Residential (units)
f. Retail / Dining / Entertainment (sq ft)
4) Economic and Fiscal Impacts
a. Impact of DMC investments, 2015-2024
i. Jobs
ii. Taxes
iii. Private Development and Investment
1. Growth (units, keys, sq ft)
2. Investment ($$$, Mayo and non-Mayo)
iv. Experience
b. Estimated impacts of DMC plan implementation, 2025-2029
i. Jobs
ii. Taxes
iii. Private Development and Investment
1. Growth (units, keys, sq ft)
2. Investment ($$$, Mayo and non-Mayo)
5) Plan Implementation Factors
a. Business Recruitment and Lead Generation
b. City for Health
c. Communications
d. Community Engagement and Experience
e. Equitable Economic Development
f. Historic Preservation
g. Mobility Strategies
h. Public Art and Design
i. Sustainability
j. Targeted Workforce and Business Participation
k. Workforce Development
6) 2025-2029 DMC Capital Plan
a. Overview of the DMC Financial Model
b. Planned and Anticipated Public Infrastructure Projects (Streets, Sewers, Energy, Mobility, Public Realm, etc.)
c. Strategic Private Development
i. Private Investment Priorities
ii. Process to Apply for Funding
iii. Evaluation Criteria for Projects
iv. DMC Development District Investment and Development Opportunities
d. Operations Model
e. Comprehensive Investment Framework (Sources and Uses)
69
Discovery Square Med-Tech Infrastructure
To: DMCC Board of Directors
From: DMC EDA
Date: January 26, 2024
Request of the board of directors:
Provide guidance on potential DMC support for Shared Wet Lab, the first of the three Med-Tech Infrastructure projects
in Discovery Square.
Background
• This is infrastructure that fosters healthcare technology innovation, supports workforce development, and broadens
the employment base.
• Objectives of this infrastructure:
o Attract early-stage companies and the follow-on economic impacts.
o Be a resource for businesses already in the Discovery Square ecosystem.
o Be an environment for advanced workforce training and education.
• Includes three specific types of infrastructure:
o Maker Lab – light manufacturing space for the design and development of medical devices.
o Sim Lab – simulated healthcare space for workforce development and medical device validation.
o Shared Wet Lab – laboratory space with a shared equipment model for life sciences technologies.
Status
• Maker Lab
o Exploring funding and partnership opportunities.
• Simulation Lab
o Led by Greater Rochester Advocates for Universities and Colleges (GRAUC), in collaboration with numerous
organizations, including DMC.
o Secured $500K appropriation in 2023, launching pilot in 2024, location TBD.
o Seeking ~$11M to design & develop space, acquire technology, hire staff for permanent operation.
o Included in City bonding request.
• Shared Wet Lab
o Discussions underway with potential operator and Mayo Clinic around operating agreement and the business
model.
70
Downtown Property Support
To: DMCC Board of Directors
From: DMC EDA Staff
Date: January 26, 2024
Request of the board of directors:
Discuss a downtown property support strategy intended to advance economic vitality, downtown vibrancy, property
preservation, and other board priorities. Direct staff to prepare and propose program parameters and goals for
consideration at a future DMCC board meeting.
Background:
Since 2020, the DMCC board of directors has engaged in discussions and directed staff to evaluate opportunities to
identify eligible DMC investments in downtown properties. These discussions and directions to staff included:
I. November 2020: DMCC board approval of the 2020 Update to the DMC Development Plan
II. September 2021: DMCC board discussion of DMC funding application, direction to staff to provide further
updates
III. October 2021: DMC EDA is awarded funding through DEED’s Main Street Economic Revitalization Program
IV. May 2023: DMC EDA report on outcomes of DEED Main Street Economic Revitalization Program
V. September 2023: DMCC board approval of 2024 DMC Capital Improvement Program, including the
possibility of downtown property support
VI. January 2024: Rochester City Council designation of downtown historic landmark district
More detail on each of these decision points is provided below:
I. November 2020 Update to the DMC Development Plan
The approved 2020 update to the DMC Development Plan prioritized:
1. Supporting existing local businesses
2. Prioritizing public infrastructure
3. Creatively reusing excess real estate capacity
4. Diversifying the economy
5. Proactively supporting development
Additionally, the updated plan included an analysis of the City of Rochester’s tax capacity, demonstrating
that downtown is a substantial contributor to city economic and tax generation activity (the DMC
development district is approximately one percent of the city’s geographic area but accounts for
approximately fourteen percent of city tax capacity).
71
II. September 2021 Board Discussion and Direction to Staff
In September 2021, the DMC EDA proposed an initiative to the DMCC board to support downtown
properties. The proposal was presented by the DMC EDA, in part, in recognition of the fact that DMC capital
has only been approved for projects involving large-scale development and infrastructure. The DMC EDA
was evaluating mechanisms for DMC capital to be made accessible for small- and medium-scale
development projects. Contemporary discussions with DMCC legal counsel indicated that DMC “public
infrastructure” funds could be directed to properties, subject to the uses allowable under state law (and
specifically, the ability to direct funds to “demolish, repair, and rehabilitate buildings”).
III. October 2021 DEED Main Street Economic Revitalization Program grant award
In October 2021, the DMC EDA became a partner organization in the administrations of DEED’s Main Street
Economic Revitalization Program, providing the funding opportunity necessary to evaluate the need for and
interest in a downtown property revitalization effort. Given the awarding of these funds to the DMC EDA,
the DMCC board suspended further discussion of the use of DMC funds for small- and medium-scale
downtown property revitalization.
IV. May 2023 report to DMCC board regarding outcomes of DEED Main Street Economic Revitalization Program
By May 2023, the DMC EDA had allocated the $3 million provided through the Main Street grant program:
1. 54 total awards
$23,000 median project award
13 awards to Black, Indigenous, and People of Color (BIPOC) applicants (24%)
16 awards to non-BIPOC women-led applicants (30%)
2. Variety of projects
31 retail and dining projects
13 office, technical and mixed use projects
5 non-profit projects
5 housing and lodging projects
22 previously unoccupied project sites (41%)
3. 270 permanent jobs created (estimated)
V. September 2023 DMCC approval of 2024 Capital Improvement Plan
In September 2023, the DMCC board of directors approved the 2024 Capital Improvement Plan (CIP) that
noted, as a possible use of funds, downtown property support. Additionally, the DMC EDA and community
partners convened the Downtown Rochester Task Force. The task force produced four findings, two of
which are noted below and relevant to this work:
1. Address Barriers to doing Business Downtown:
Simplify, improve, streamline policies and processes
Decrease costs of conducting business downtown
2. Support Downtown Growth:
Recruit new businesses
Retain small businesses
Understand new market demand
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VI. January 2024 Rochester City Council designation of downtown historic landmark district
In January 2024, the Rochester City Council designated a downtown historic landmark district. The district
includes thirty-two properties.
The designation of this district provides an opportunity to evaluate these properties as a part of a general
class rather than on a case-by-case basis. The designation could serve as an additional consideration in
board and City Council funding decisions (similar to the way the board has emphasized its interest in
supporting the development of workforce housing and bio-med-tech infrastructure). Also, preserving these
properties could contribute to the economic success of the DMC development district and enhance the
patient, visitor, resident, and employee experience.
Next Steps:
If directed by the DMCC board of directors the DMC EDA, in collaboration with the DMCC legal counsel, the City of
Rochester, and other stakeholders, would conduct further due diligence regarding a downtown property support
program, including program parameters, funding application process, and goals. The results of this work would be
presented at a future board meeting.
73
Riverfront Reimagined
To: DMCC Board of Directors
From: DMC EDA
Date: January 26, 2024
Request of the board of directors:
No action requested.
Background:
The Riverfront Small Area Plan consists of two sites with a total of approximately 5.5 acres. The first site is a 2.5
acre study area located southeast of the downtown core and bounded by 4th St SE to the south, S Broadway to
the west, 2nd St SE to the south, and 3rd Ave SE to the east. The 3-acre parking lot and attached parcel north of
4th Street SE and east of 3rd Ave SE will also be included in the study. The site is located at the intersection of
the Arts and Culture District and Main Street Mixed-Use District in the Rochester Downtown Master Plan, and it
is located in the Waterfront Sub-District of the DMC Development Plan.
Gamble Associates was selected in 2021 to lead the creation of a new vision for the Riverfront Small Area Plan.
That work was completed in 2022. Gamble Associates is currently working on a second scope of work that
includes:
•Interim activation (in partnership with the Rochester Downtown Alliance and other organizations),
Complete
•Advance flood wall work with the Army Corps of Engineers, Complete
•Due diligence analysis of former Red Owl and Time Theater buildings, Complete
•Continue discussions with Olmsted County regarding the county-owned portion of the site, Complete
•East site preparation, In-progress
•Prepare developer RFQ/RFP, In-progress
Progress:
The City and DMC have continued to work closely with Gamble Associates to complete all work associated with
the current scope of work. including:
•Finalizing a draft RFQ structure to select a partner to develop the property.
o A date to release the RFQ is still being determined.
•The purchase of Mr. Muffler site is now complete and Olmsted County plans to vacate the building in
the spring of 2024. Site prep will begin in the summer of 2024.
•City team members are preparing for a Spring/Summer 2024 interim activation implementation
including adding lighting, consolidated garbage, art, and programming.
The City of Rochester has submitted a request for Minnesota State bonding support for this property, a total
estimated cost of $52.9M. The City has indicated this is its priority bonding request. The project includes design,
engineering, further environmental analysis, site remediation and preparation, limited demolition, and
construction of public realm improvements, including trail improvements, tree planting, public wayfinding,
public amenities, and related infrastructure for the reuse of properties.
The City and DMC staff will present more details about this request at the Q1 2024 DMCC board meeting.
74
Business Development and Lead Generation
To: DMCC Board of Directors
From: DMC EDA
Date: January 26, 2024
Request of the board of directors:
No action requested.
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.
2024 Business Development Program
•Building Awareness
Addi�on of two staff members to allow for increased ac�vity, and improved process.
•Business Development Manager: responsibili�es include out-of-market lead
genera�on, networking with key decision influencers, and suppor�ng DMC’s
Ecosystem building work.
•Data, Research, and Analytics Coordinator: responsibili�es include
improving lead genera�on processes, CRM and repor�ng management, and
suppor�ng DMC’s Ecosystem building work.
Digital marke�ng ini�a�ve to allow for “always on” awareness building.
•Overhaul of DMC’s BD-focused website
•Refinement of DMC pitch materials
•Crea�on of DMC sales collateral
•Development of DMC communica�ons strategy and processes
•Building Ecosystem
Launch an ecosystem mapping and gap analysis research project.
Begin ecosystem programming ac�vi�es in late 2024.
•Building Infrastructure
Develop turn-key real estate solu�on in response to 2022 research findings.
Begin scoping workforce development infrastructure opportuni�es for future
investment requests.
Q1 2024 Program Ac�vi�es
•Events
o Phacili�ate Advanced Therapies Week (January): co-exhibit with Mayo Clinic CRB
o Lead Genera�on Campaigns (February, March): Southern California and Northern
California
•Ini�a�ves
o Launch the 2024 digital marke�ng ini�a�ve (January 11-12)
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Chateau Theatre
To: DMCC Board of Directors
From: DMC EDA
Date: January 26, 2024
Request of the board of directors:
No action requested.
Background:
To-date, the DMCC and City Council have approved approximately $7.7 million in DMC funding for the purchase,
maintenance and operation of Chateau Theatre. The DMCC and City Council approved an additional $1 million for HVAC
upgrades in 2024.
The City of Rochester also secured a U.S. Economic Development Administration tourism grant to support restroom
renovations.
Chateau Theatre
- Facility Update:
o The restroom renovations are now complete.
o The HVAC is in the process of getting installed, a temporary system is in place.
- The historic Chateau Theatre is open daily for guests to explore the space and shop at Threshold Art’s art
boutique. The Chateau holds many events for the community and visitors as well.
- Please see the enclosed 2023 activation summary.
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.
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14,033
4,892
4,958
1,606
2,680
Daily Walk-in
9.5%
Rehearsal
5.7%
Public Event - Ticketed
17.6%
Private Rental
17.4%
Public Event - Free
49.8%
2023 Attendance Tracking | 28,169 guests
2023 Milestones
• 292 Days of activation• 45 Free public events• 28 Ticketed public events• 39 Private events• 82 Rehearsals• 98 Days open to the public without specific programming
• 28,169 Visitors
• Restroom renovations complete
• A/V system purchased/installation being finalized
• HVAC replacement in progress
• Successful alley parklet installation (de-installed for winter)
Historic Chateau TheatreHistoric Chateau Theatre
15 1st Street SW, Rochester, MN 55902
507-218-7214 | yourchateau.org77
West Transit Village
To: DMCC Board of Directors
From: DMC EDA
Date: January 26, 2024
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.
The conceptual site plan (work-in-progress):
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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 preferred site plan has now
been agreed upon and is advancing into more detailed design development.
The next steps include:
- Mayo Clinic and developer to establish base conditions of the site transaction and move towards a
codified agreement, targeting fall 2024 to sign development agreement
- 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 (anticipated
2Q or 3Q 2024)
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District Energy/Thermal Energy Networks
To: DMCC Board of Directors
From: DMC EDA
Date: January 26, 2024
Request of the board of directors:
No action requested; update regarding DMC district energy system investment to advance DMC carbon emission reduction
goals.
Project Updates:
1. The City of Rochester is convening stakeholders and consultants to develop the business plan that will be support
the desired outcomes of the District Energy system, as well as entering into conversations with Mayo Clinic about
the possibility of connecting the Mayo system with the City system for greater overall efficiency of the system due
to large heating loads that are currently exhausted as waste heat by Mayo.
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 +
geothermal district energy system.
3. Rochester will be hosting the Thermal Energy Network Symposium March 12-14, which will convene leaders in
geothermal energy systems and highlight the leading role of the City of Rochester and DMC in developing this
downtown system
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
• 2023: Rochester City Hall installs first downtown geothermal wells
• March 2024: Rochester hosting national thermal energy network symposium
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.
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Equitable Economic Development
To: DMCC Board of Directors
From: DMC EDA
Date: January 26, 2024
Request of the board of directors:
No action requested.
Workplan Update:
1.Community Co-Design Updates:
a.We started the third cohort of Community Co-design Facilitator Training in December,2023. The
participants who are receiving this training are from the following organizations: United Way of
Olmsted County, Olmsted County, Cradle 2 Career, Rochester Public Schools, IMAA, Mayo Clinic, and
NAACP. The training is 25 hours total over the next four months. The graduation or cohort 3 will be in
May 2024.
b.We offered the Community Co-design Leadership Training in October 2023. This was the third cohort
where we trained a total of 24 community and organization leaders from City of Rochester, Rochester
Public Schools, Olmsted County, Mayo Clinic, Three Rivers Community Action, Rochester Art Center,
and many other organizations. The total number of community leaders who received the training so
far is 68.
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 will be presenting the Equity Series on the second Wednesdays of every month
beginning January 2024. The 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.
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Update: Goodenough Consulting will provide the DMC EDA staff with the final report on the Diversity,
Equity, and Inclusion assessment on the 24th of January. The report will include an assessment of the
HR practices, Stakeholder Dialogues, Environment Scan, and Anonymous Feedback. On March 5th,
2024, Goodenough Consulting will begin the Diversity, Equity, and Inclusion professional training for
the DMC EDA staff.
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.
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.
viii.ACHLA
c.Black History Traveling Museum: The Rochester Black Legacy exhibit is a traveling museum to honor
local and regional black history. Andre Crockett Sr. and Nicole Asong Nfonoyim-Hara are the
organizers for this exhibition. The City of Rochester, Olmsted County, and DMC Eda partnered to host
the kickoff of the traveling museum in the City Hall early February 2024 to honor the observation of
Black History Month.
4.Affordable Housing Updates:
a.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.
b.Real Estate Summit: We began the preparation for the Real Estate Summit we will host on April 24th,
2024 in partnership with ULI. We are working on including BIPOC communities and emerging
developers to have inclusive attendance of the event.
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Housing
To: DMCC Board of Directors
From: DMC EDA
Date: January 26, 2024
Request of the board of directors:
No action requested.
Workplan Update:
To meet the downtown housing demands outlined in the background section of this update, the DMC EDA has developed a housing
strategy within the 2024 workplan, we are working collaboratively with City, County, non-profit and private development partners to
develop an implementation toolkit to begin rolling out.
Background:
The downtown housing market demand for market rate units, affordable and subsidized units, and senior housing units by 2030
totals 3,972 housing units needed by 2030 (22% of county-wide housing market demand).
The last housing project to be delivered in the DMC District was Bryk, 180 units that opened in March 2023. Several other
multifamily housing projects have been floated but none have yet committed to breaking ground. It is typically 18 months from
when a project breaks ground to units being open and available for move-in. Therefore, we can anticipate it will be 18-24 months at
the earliest that any new units of housing will open in the District. If no project can commit to breaking ground in 2024, then that
timeline gets pushed out another 12 months.
At the same time, we are in a very different point in the market cycle than any time previously since DMC was established, and since
2019 the costs of construction and interest rate environment has shifted significantly:
Fulfilling the DMC Vision, Mission, and/or Goals:
To support the economic growth and new jobs that will be generated within the DMC District, there must be sufficient housing
opportunities at a wide range of price points. Denser development in the downtown core also supports the DMC and City GHG
reduction goals and mobility strategies as well, and highly efficient from a tax perspective.
Current Status:
In collaboration with City and other partners, a public facing presentation (for DMCC Q1 meeting and City Council Feb. 26 study
session) is being developed to surface and showcase the housing data and current costs, as well as proposed new tools for
consideration. We are at a unique moment where the market is facing stronger headwinds than ever before (during DMC’s
existence) while the community will also be experiencing unprecedented growth and construction activity in the next 5 years.
Therefore staff will posit some new opportunities in order to spur more housing construction.
83
Next Steps:
Communication
Digital and Print Communication Strategies:
• Create digital campaigns on the DMC website and social media platforms to ensure visibility to DMC’s housing priority.
• Create a housing prospectus that outlines the DMC’s development process, Rochester community housing funding
resources, sustainability goals, and equity in the built environment goals.
• Update the current development application.
Engagement
Share market needs and recruit developers to deliver the various housing products needed within downtown.
Community Housing Partnerships
Collaborate with public and private partners to realize the downtown and community-wide outcomes:
• Rochester Housing Coalition Leadership Council Member.
• Collaborate with Rochester financial institutions to research the opportunity to create a coalition for community
reinvestment act to secure additional funding for Rochester community housing needs.
Housing Data Analysis:
• Analyze promising housing approaches:
• Cooperative Housing.
• Rent to Ownership Models.
• Accessory Dwelling Units.
• Prefabricated construction methods.
• Assess current vacant office spaces and hotels.
• IRA related opportunities.
• Research Development & Housing Grants to Identify Additional Funding Sources
84
Mobility
To: DMCC Board of Directors
From: DMC EDA
Date: January 26, 2024
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.
Bus Procurement
− Estimated RFP Closing Date: Wednesday, January 24, 2024
− Estimated Interview Dates: Week of February 5, 2024
− Estimated Council Approval of RFP: March 2024
Right of Way (ROW) / Land Acquisition
− Request to begin ROW / Land Acquisition negotiations: January 22, 2024 City Council Meeting
− Initial Offers sent to property owners following Council approval
− Negotiation with Property Owners: January 2024 thru March 2024
− Closing & Recording of Properties: August 2024
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.
85
Current Status:
Next Steps:
86
Discovery Walk
To: DMCC Board of Directors
From: DMC EDA
Date: January 26, 2024
Request of the board of directors:
No action requested.
Background:
Discovery Walk is a linear parkway along 2nd Avenue SW in downtown Rochester that will serve
pedestrians as well as vehicle access.
Discovery Walk will connect Heart of the City to Soldiers Memorial Field and will create a high amenity
pedestrian experience while also maintaining flexibility for bike and vehicular access, civic events, and
future development.
Updates:
• Construction is anticipated to be complete in spring 2024, including final planting, road striping,
site element placement, and installation of the climate accommodating structures.
• Pedestrian lighting art and the snowmelt system is installed and will be operational this winter.
• The 200 block of 2nd Ave. SW is closed to vehicular through-traffic but open for Mayo Clinic’s
blood donor center.
Fulfilling the DMC Mission, Vision, and/or Goals:
Discovery Square is a new address for the future of bio-medical, research and technology innovation and
a keystone to the DMC economic development strategy. The sub-district borrows from Mayo Clinic’s
integrated care model to create an integrated district founded in the principles of translational
medicine.
Work plan or capital improvement budget implications:
Completion of Discovery Walk has been budgeted for within the DMC CIP.
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Heart of the City
To: DMC EDA Board of Directors
From: DMC EDA
Date: January 26, 2024
Request of the board of directors:
No action requested.
Background:
Heart of the City Phase 1:
- Construction Update:
o Catenary lighting system poles were installed in early October 2023
o Catenary lights are anticipated to be installed in spring 2024.
- Paver Performance Update:
o A formal review of the performance of different paver sections is now complete
Some pavers have shifted due to unknown underground issues
A workgroup including designers, engineers, and city staff is in place to address findings in the
report
- Raiser Letter Art Pavers:
o Concerns have been raised by community members regarding their experience related to the raised
letter pavers within the Peace Plaza (Art Installation).
o DMC is working closely with city colleagues to develop a strategy to review concerns and developing a
plan to address them.
Fulfilling the DMC Vision, Mission, and/or Goals:
Heart of the City subdistrict is a long-standing priority for the DMCC 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, is 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.
88
Soldiers Memorial Field
To: DMCC Board of Directors
From: DMC EDA
Date: January 26, 2024
Request of the board of directors:
No action requested.
Project Update:
Construction activities continue at Soldiers Field Memorial Park. The construction team has mobilized for winter
conditions. The aquatics area is progressing as scheduled. The tile work has started on the new 50-meter lap pool, and
the concrete foundations for the water slides have been poured. The exterior walls of the new mechanical building are
in place, which will house the pumps, filters, and chemicals for the new aquatics center.
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.
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
apprved past
Soldiers Field
Master Plan
2022
Park Board approval
of short-term
Soldiers Field
Master Plan
2023
Construction begins
2024
Substantive
completion
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Private Development Previews
To: DMCC Board of Directors
From: DMC EDA
Date: January 26, 2024
Request of the board of directors:
No action requested.
Background:
While all private development projects submitted to DMC must meet the “but for” test, DMC EDA staff evaluates
each submitted project against the priorities set by the Board before developing a recommendation for the Board.
Below is a summary of Board priorities as staff understand them:
•Geographic priorities: Heart of the City, Discovery Square, TOD corridor
•Product Type: Preferencing med-tech and workforce housing development
•Prioritize projects most likely to achieve DMC goals: private investment, job creation, tax base growth
•Validate market demand; support first-in-market opportunities
•Meet or exceed Sustainability targets
•Contribution to City of Health experience goals
Areas of focus adopted as part of the Phase 2 development update (Nov. 2020 adoption):
•Economic diversification
•Housing affordability
•Mainstreet innovation
•Local entrepreneurs
•Local minority and women-owned business capacity
Below is a summary of the active conversations underway with private developers within the DMC District.
Inclusion on this list does not mean that these projects will ultimately apply for DMC funding, but rather is included
to give you an overview of what kinds of projects are currently being contemplated within the district that may
come forward in the future for a funding request.
HOUSING
Civic Center North Lot
In fall 2021, The City of Rochester issued an RFP to developers for the
parking lot across from the Civic Center. The City elected to enter exclusive
negotiations with Sherman Associates as the preferred development
partner, and are in the midst of those negotiations. Potential alignment
with the District Energy system under development in downtown is also
being explored with this project.
Due to the current interest rate environment and continued high costs of
construction, the project gap on this project has grown significantly. City
and DMC EDA staff are working closely with the developer to scenario plan
what options are possible to keep this project advancing forward. Staff
anticipates advancing this project for consideration by this Board in 2024.
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Gerrard 2nd Street
Proposing a mid-to-large apartment building (~150 units) with ground floor
commercial space on 2nd Street near 6th. A smaller (4-6 unit) building
planned as affordable for-sale units, and a mid-block pedestrian path are
also part of the project.
This project is currently waiting for market conditions to improve before
proceeding (specifically lower interest rates). In the meantime, First
Homes received an Economic Development and Housing Challenge Grant
in the amount of $502,000 for the Gerrard Condos (the smaller building
referenced above).
West Transit Village (WTV) The western terminus of the LINK Rapid Transit line is envisioned as a
transit village that will accommodate several hundred units of housing and
amenity retail in addition to the transit and parking infrastructure needed
on the site. Mayo Clinic is in active negotiations with Kraus Anderson as
their developer partner and has refined the project vision to two options
that include +/- 300 units of housing, retail, parking and public realm.
It is expected that this project will come before the Board for action in
2024.
CityWalk Apartments
This is an approximately 140-unit market rate apartment building on the
south side of 2nd Avenue and 6th Street. They have received Main Street
grant funding.
YMCA Development
Redevelopment of the downtown YMCA site into approximately 215 units
of multifamily housing including some ground floor live-work spaces.
Thoughtful integration of the project into the adjacent Soldier’s Field and
the approach to affordability levels are main topics of discussion.
Demolition is currently underway on the existing building and permits are
filed and proceeding, so our expectation is that construction will
commence at the conclusion of demolition.
HOSPITALITY
Olmsted Bank Building
14 units of residential on top of an adaptive reuse of the existing bank
building for a restaurant/cafe use on the ground floor. Opportunity to
show potential of adaptive reuse above an existing building and
revitalization of a central location that can leverage existing parking
infrastructure.
The project was awarded $200,000 in Main Street Grant funds and then
received additional Main Street grant funds. However it is likely this
project site will be put up for sale.
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Post Office
The Post Office building on Broadway is owned by a Utah-based hospitality
developer with local ties.
Owners of the building are proposing a 140-key boutique hotel for longer-
term travelers. The developer is interested in sustainability and
considering a flag that aligns with this environmental approach.
This project has submitted a TIF application to the City of Rochester.
However, currently interest rate environment has added additional project
costs and widened the gap for feasibility, so the project is under continued
review for possible solutions. There are several hurdles the developer has
outlined (access to a long-term parking agreement, TIF) that need to be
crossed for this project to proceed.
Fulfilling the DMC Vision, Mission, and/or Goals:
DMC aims to support private investment that is in line with the overall mission of the DMC Initiative. The 20-year
goal is to attract more than $2.1B of non-Mayo private investment.
Approvals, milestones, and decision points:
As projects further develop their plans we will continue to update the Board and if an application for funding is
submitted the formal review process will begin. Currently Discovery Square 3 is an active application under review.
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Rochester Downtown Task Force
Grow Downtown Together Workgroup
To: DMCC Board of Directors
From: DMC EDA
Date: January 26, 2024
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.
DMC took the lead in focusing on growth strategies related to task force priorities. DMC developed the
“Grow Downtown Together” strategy that focuses on strengthening the demand drivers of downtown
which include workforce, education, downtown housing, cultural anchors (Mayo Civic Center, Art
Center, Civic Theatre, Chateau Theatre), and catalytic retail
This work leads to the most impactful work DMC and downtown stakeholders can do together:
attracting people downtown.
DMC EDA staff are gathering information and exploring tools to support this work, including developing
strategies to manage data related to available space downtown, determining demand drivers and
identifying specialized recruitment services.
Progress:
-Mayo Clinic
o Team members from Bold. Forward. Unbound. and DMC meet regularly to align
strategies and are actively building work plans
-University of Minnesota Rochester
o Members of the DMC team have continued to attend community sessions and meet
with UMR Campus and Climate Action Plan (CCAP) planning team
-Improved communications
o Feedback out of the working sessions with downtown business stakeholders asked for
clearer communications to better understand topics impacting the downtown
o With the Rochester Downtown Alliance taking the lead, task force members are now
sending a bi-monthly update to downtown stakeholders
-City Permit Improvements
o Council approval of simplifications to business licensing 12/11/24
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