HomeMy WebLinkAboutResolution No. 126-25 - Resolution - DMC Funding for Aeon West Transit Village Phase 1
RESOLUTION
Authorization Approving Expenditure of Destination Medical Center (DMC)
Strategic Redevelopment Funds in Support of the West Transit Village Liner
Housing Project
WHEREAS, the Development Plan adopted by the Destination Medical Center
Corporation (DMCC) on April 23, 2015, as amended, (the “Development Plan”) concerned
mobility, transformative transportation strategies, and related development. The
Development Plan highlighted the goal of a mode shift in transportation in which a
significant portion of community trips downtown shift away from single occupant vehicle
trips and towards other Modes, including Link Bus Rapid Transit (BRT); and
WHEREAS, the Aeon West Transit Village Phase 1 project is a keystone component of the
broader West Transit Village vision to transform a strategic site near downtown Rochester into a
mixed-use, transit-oriented, and socially equitable neighborhood. This initiative, being led by the
City of Rochester, DMC, and Mayo Clinic, seeks to create a place that enhances the Link Bus
Rapid Transit (BRT) experience and provides housing that supports community resilience and
aging in; and
WHEREAS, In May 2024, the DMC Corporation Board and the City Council approved
an allocation of up to $3.9 million in GSIA funding in 2024 for the project. In response to
changes in Minnesota Housing's funding criteria and to improve competitiveness of the
project in the pool of requests for 9% Housing Tax Credits through Minnesota Housing’s
2025 Multifamily Consolidated RFP, Aeon has adjusted the project, reducing the unit
count from 95 to 75. Despite this reduction, the project continues to align with DMC
goals and will maintain its key features.
WHEREAS, the DMCC Board approved the use of DMC Strategic Redevelopment Funds
in support of the West Transit Village Liner Housing Project at their May 22, 2025, DMCC
meeting in the amount of $3,900,000; and
WHEREAS, the City of Rochester is recommending to the Rochester Common Council
to approve the $3,900,000 in DMC CIP Strategic Redevelopment fund and authorize up
to $4,900,000 in Tax Increment Financing to support the West Transit Village Liner
Housing Project.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Rochester,
MN, that the Council authorized the use of $3,900,000 from the DMC CIP Strategic
Redevelopment fund and up to $4,900,000 in Tax Increment Financing to the proposed
West Transit Village Liner Housing Project.
PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF
ROCHESTER, MINNESOTA, THIS __________ DAY OF _______________, 2025.
___________________________________
PRESIDENT OF SAID COMMON COUNCIL
ATTEST: __________________________
CITY CLERK
APPROVED THIS _____ DAY OF ______________________, 2025.
___________________________________
MAYOR OF SAID CITY
(Seal of the City of
Rochester, Minnesota)