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HomeMy WebLinkAboutDMCC Resolution No. 172-2025 (Approving Submission Of A Modification To The Development District To The City Of Rochester (West Transit Corridor))DESTINATION MEDICAL CENTER CORPORATION RESOLUTION NO. 172-2025 A RESOLUTION APPROVING SUBMISSION OF A MODIFICATION TO THE DEVELOPMENT DISTRICT TO THE CITY OF ROCHESTER (WEST TRANSIT CORRIDOR) The following Resolution was offered by Randy Schubring, seconded by Douglas Baker, Jr. BACKGROUND RECITALS A. A critical component of 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 the Link Bus Rapid Transit (the “BRT”) running down 2nd Street. B. To implement these goals, the DMCC has reached significant approvals concerning mobility and transportation. By Resolutions 87- and 89-2019, the DMCC adopted a local preferred alternative for the route alignment and transit mode for the downtown bus rapid transit project now known as the Link Bus Rapid Transit (“LINK”). The DMCC has consistently emphasized the importance of a transit village destination anchoring LINK at its terminus. In Resolution 79-2019, the DMCC approved the location of mobility hubs and park and ride facilities, on the western end of the route now known as the West Transit Village. By Resolution 100-2020, the DMCC approved a boundary modification to adjust the development district, the geographic area in the City of Rochester (the “City”) identified in the Development Plan in which public infrastructure projects are implemented (the “Development District”) to include the route and transit village location for Phase 1 of the locally preferred alternative. By Resolution 104-2020, the DMCC approved an application for funding to the Federal Transit Agency Small Starts Program for the LINK project. C. Staff of the City and the Destination Medical Center Economic Development Agency (“EDA”) now request certain modifications to the Development District, set forth in Exhibit A attached hereto (the “Development District Modifications”), in order to implement components of the LINK and West Transit Village projects, including, (i) permanent and temporary easements for construction of LINK infrastructure, (ii) public infrastructure improvements supporting the development of the West Transit Village, and (iii) a non-contiguous district located at the City’s Public Works Transit Operation Center to permit for the construction of a LINK vehicle maintenance facility. D. Pursuant to Minnesota Statutes Section 469.43, subdivision 5, as part of the Development Plan, the DMCC and the City may “create and define the boundaries of the medical center development districts and subdistricts at any place or places within the [C]ity. Projects may be undertaken within defined medical center development districts consistent with the [D]evelopment [P]lan.” 2 E. The DMCC may modify the Development District through a modification of the Development Plan at any time. Pursuant to Minnesota Statutes Section 469.43, subdivision 4, a modification or update must be adopted by the DMCC upon the notice and after the public hearing and findings required for the original adoption of the Development Plan, including submission of the modified Development Plan to the City for approval. The City must act on the proposed modification to the Development Plan within sixty (60) days following its submission by the DMCC. F. Staff of the City and the EDA now request the DMCC approve the submission of the of the Development District Modifications to the City. RESOLUTION NOW THEREFORE, BE IT RESOLVED by the DMCC Board of Directors that the Development District Modifications, dated as of May 16, 2025, and on file with the DMCC is hereby submitted to the City for its review and action within sixty (60) days pursuant to Minnesota Statutes Section 469.43, subdivision 2. BE IT FURTHER RESOLVED that the DMCC Chair and Vice Chair are authorized: 1. To make copies of the Development District Modifications available to the public at the DMCC and City offices during normal business hours, on the DMCC’s website, on the City’s website, and as otherwise appropriate. 2. To determine the date, time, and place to hold the public hearing for testimony from the public concerning the Development District Modifications. 3. To take such actions as are necessary and appropriate to effectuate the submission of the Development District Modifications and the timely progression of the approval process, all in accordance with the requirements of Minnesota Statutes Section 469.43. BE IT FURTHER RESOLVED, that the Chair or the Treasurer of the DMCC is hereby authorized and directed to transmit this Resolution to the City and to take such actions as are necessary or convenient to effectuate the approvals of this Resolution. 31603915v3 The question was on the adoption of the Resolution and there were YEAS and NAYS,as follows: BOARD OF DIRECTORS Destination Medical Center Corporation YEA OTHER Douglas M.Baker,Jr. James R.Campbell Kim Norton Randy Schubring Mark Thein Pamela Wheelock Paul D.Williams TED on May 22,2025. ATTEST:------------am el a Wheelock,Chair Destination Medical Center Corporation RESOLUTION A 7 0 X X X X X X X EXHIBIT A Modifications to the DMC Development District To: DMCC Board of Directors From: DMC EDA Date: May 16, 2025 Request of the board of directors: Consider modifications to the DMC development district, including: modifying the current district boundary to incorporate required permanent and temporary easements for the construction of LINK Bus Rapid Transit (BRT) infrastructure; modifying the current district to incorporate public infrastructure improvements supporting the development of the West Transit Village; and establishing a non- contiguous district at the City of Rochester’s Public Works Transit Operation Center to allow for the construction of a BRT vehicle maintenance facility. Background: The DMC Act states that, as a part of the DMC development plan, the DMCC and City of Rochester may “create and define the boundaries of medical center development districts and subdistricts at any place or places within the city. Projects may be undertaken within defined medical center development districts consistent with the development plan.” This authority has been used three times: 1) To establish the original district in 2015. 2) To modify the district to fully include the parcels redeveloped as the Berkman apartments 3) To modify the district to include the 2nd Street SW right-of-way and Mayo West Lot as a requirement for BRT and West Transit Village development. Modifying the DMC development district requires following a process prescribed in state law: 1) The DMCC must formally submit the proposed modification to the City 2) The City must act on the modification within 60 days following its submission by the DMCC. 3) Following that, the DMCC must hold a public hearing on the modification. 4) At least 60 days before the hearing, copies of the modification must be made available to the public at the DMCC and City offices, on the DMCC’s and City’s websites and as otherwise determined appropriate by DMCC. 5) At least 10 days before the hearing, the DMCC must publish notice of the hearing. 6) Finally, the DMCC must hold the public hearing and adopt an approval resolution. Three modifications are recommended by City staff and the DMC EDA: 1) Incorporate a set of temporary and public easements required to facilitate the development of LINK BRT infrastructure. 2) Incorporate property adjacent to the Mayo West Lot to allow for public infrastructure improvements necessary to support the development of the West Transit Village. 3) Establish a non-contiguous district at the City of Rochester’s Public Works Transit Operation Center to allow for the construction of a BRT vehicle maintenance facility. All costs associated with these modifications and capital improvements are funded through the approved Link BRT project budget. Each proposed modification is explained in greater detail below: 1) Incorporate a set of temporary and public easements required to facilitate the development of LINK BRT infrastructure. a. A temporary easement for the grading and installation of sidewalk, bike trail improvements and local bus route station installation at 130 23rd Avenue SW as described: A temporary easement for construction purposes over, under, across and through part of the following described property in the amount of $1003.2 in DMC Funds: Lot 2, Block 1, SHOREWOOD RETAIL REPLAT, in the City of Rochester, Olmsted County, Minnesota. Said temporary easement being the North 2.00 feet of the South 12.00 feet of said Lot 2. b. A temporary easement for the grading and installation of sidewalk, bike trail improvements and bus route station installation at 1907 and 1923 2nd Street SW as described: A temporary easement for construction purposes over, under, across and through part of property in the amount of $8,572.80 in DMC Funds as described: A temporary easement for construction purposes over, under, across and through part of the following described property: Lots 12, 13 and 14, Block 12 WEST ZUMBRO ADDITION, in the City of Rochester, Olmsted County, Minnesota, said temporary easement being the South 3.00 feet of the East 35.00 feet of said Lot 12 A temporary easement for construction purposes over, under, across and through part of the following described property: Lots 9, 10 and 11, Block 12 WEST ZUMBRO ADDITION, in the City of Rochester, Olmsted County, Minnesota. Said temporary easement being the South 3.00 feet of said Lots 9, 10 and 11. c. A temporary easement for the grading and installation of sidewalk, bike trail improvements and local bus route station installation at 1833 2nd St SW as described: A temporary easement for construction purposes over, under, across and through part of the property in the amount of $775.2 in DMC Funds as described: A temporary easement for construction purposes over, under, across and through part of the following described property: Lot 14, Block 11, WEST ZUMBRO ADDITION, in the City of Rochester, Olmsted County, Minnesota, and that part of the South Half of vacated alley adjacent thereto. Said temporary easement being the South 2.00 feet of said Lot 14. d. A temporary easement for the grading and installation of sidewalk, bike trail improvements, road guideway improvements at 1902 2nd St SW as described in the easement document. e. A temporary easement for construction purposes over, under, across and through part of the property in the amount of $4,423.2 in DMC Fund as described: A temporary easement for construction purposes over, under, across and through part of the following described property: Lots 1 and 2, Block 2, HIGHLAND ADDITION, in the City of Rochester, Olmsted County, Minnesota. Said temporary easement being the North 2.00 feet of the East 55.00 feet of said Lot 1. f. A temporary easement at 1741 2nd St SW for construction purposes over, under, across and through part of the following described property in the amount of $4,332 in DMC Funds: Lots 11 and 12, Block 10, WEST ZUMBRO ADDITION, in the City of Rochester, Olmsted County, Minnesota, except that part thereof which lies southerly of Line 1 described here: Commencing at the south quarter corner of said Section 34; thence run westerly on an assumed azimuth of 269 degrees 50 minutes 38 seconds along the south line of said section for 425.00 feet to the point of beginning of Line 1 to be described; thence on an azimuth of 359 degrees 50 minutes 38 seconds for 50.00 feet; thence on an azimuth of 89 degrees 50 minutes 38 seconds for 10.41 feet; thence on an azimuth of 82 degrees 56 minutes 50 seconds for 208.20 feet; thence on an azimuth of 89 degrees 50 minutes 38 seconds for 101.99 feet; thence on an azimuth of 359 degrees 09 minutes 02 seconds for 88.51 feet and there terminating. Said temporary easement being the South 6.00 feet of the East 40.00 feet of said described property. g. A temporary easement at 1804 2nd Street SW for construction purposes over, under, across and through part of the following described property in the amount of $1,459.2 in DMC Funds: i. A part of the Northwest Quarter of Section 3, Township 106 North, Range 14 West described as follows: Commencing at a point on the north line of the Northwest Quarter of Section 2, Township 106 North, Range 14 West, Olmsted County, Minnesota, 21 rods West of the northeast corner of said Northwest Quarter; thence South parallel with the east line of said Northwest Quarter, 19 rods; thence West parallel with the north line of said Northwest Quarter, 8 8/19 rods; thence North parallel with the east line of said Northwest Quarter, 19 rods to the north line of said Northwest Quarter; thence East along the north line of said Northwest Quarter 8 8/19 rods to the place of beginning. ii. Said tract also described as that part of the Northwest Quarter of Section 3, Township 106 North, Range 14 West, Olmsted County, Minnesota described as follows: Commencing at the northeast corner of said Northwest Quarter; thence westerly on an assumed azimuth from north 270 degrees 00 minutes 00 seconds along the north line of said Northwest Quarter 354 .50 feet to the point of beginning; thence southerly 179 degrees 34 minutes 53 seconds azimuth parallel with the east line of the Northwest Quarter 313.50 feet; thence westerly 270 degrees 00 minutes 00 seconds azimuth parallel with the east line of the Northwest Quarter 313 .50 feet; thence westerly 270 degrees 00 minutes 00 seconds azimuth parallel with the north line of said Northwest Quarter 138.95 feet; thence northerly 359 degrees 34 minutes 53 seconds azimuth parallel with said east line of the Northwest Quarter 313.50 feet to the north line of the Northwest Quarter; thence easterly 90 degrees 00 minutes 00 seconds azimuth along said north line 138.95 feet to the point of beginning. Said temporary easement being the East 45.00 feet of the South 2.00 feet of the North 52.00 feet of said described property. h. A temporary easement to 1807 2nd Street SW for construction purposes over, under, across and through part of the following described property in the amount of $22,800 in DMC Funds: The East 99 feet of the North 199.5 feet of the Northwest Quarter of Section 3, Township 106, Range 14, Olmsted County, Minnesota. Said temporary easement being the South 10.00 feet of the North 60.00 feet of said described property. i. A temporary, permanent and drainage utility easement rough part of the following described property in the amount of $22,800 in DMC Funds: Permanent Easement of part of the following described property: Lots 1, 4, 5, 6, 7, 8, 9 and 10 all in Block 3, EAST ROCHESTER ADDITION, according to the plat thereof on file at the County Recorder’s Office, Olmsted County, Minnesota, Except the East 51.00 feet of said Lot 1 and also Except the East 51.00 feet of the South Half of said Lot 4. Being that part of said Lot 1 lying southwesterly of a line run from a point on the west line of said Lot 1 distant 10.00 feet north of the southwest corner of said Lot 1 to a point on the south line of said Lot 1 distant 10.00 feet east of said southwest corner. Except the West 3.00 feet of said Lot 1. Temporary Easement: A temporary easement for construction purposes over, under, across and through part of the following described property: Lots 1, 4, 5, 6, 7, 8, 9 and 10 all in Block 3, EAST ROCHESTER ADDITION, according to the plat thereof on file at the County Recorder’s Office, Olmsted County, Minnesota, Except the East 51.00 feet of said Lot 1 and also Except the East 51.00 feet of the South Half of said Lot 4. Said temporary easement being the South 5.00 feet of the East 34.00 feet of the West 37.00 feet of said Lot 1. Together with a temporary easement for construction purposes over, under, across and through the East 2.00 feet of the West 5.00 feet of the North 35.00 feet of the South 40.00 feet of said Lot 1. Except those parts thereof lying southwesterly of a line run from a point on the west line of said Lot 1 distant 10.00 feet north of the southwest corner of said Lot 1 to a point on the south line of said Lot 1 distant 10.00 feet east of said southwest corner. 4) Incorporate property adjacent to the Mayo West Lot to allow for public infrastructure improvements necessary to support the development of the West Transit Village. If approved, specific improvements at the following parcels will be considered as a part of the annual DMC Capital Improvement Plan (CIP): Land Parcel 743342079777 Owner: CITY OF ROCHESTER Description: 4.80 AC SECT-33 TWP-107 RANGE-014 CITY LANDS 107-14-33 TH PT SE1/4 DES AS FOL: COMNECOR SE1/4; TH N89°52'42"W 1257.50FT; TH S00°53'11"E 1206.75FT; TH N89°52'42"W 1306.76FT TO A POINT 66FT E OF W LN SE1/4; TH S01°39'14"E 160.06FT; TH S89°52'42"E 1304.54FT; TH N00°53'11"W 160.01FT TO THE POB SEC 33 107-14 Private Road Parcel 743343052200 Owner: MAYO FOUNDATION Description: 1.16 Ac SECT-33 TWP 107 Range 014 City Lands 107-14-33 TH PT SE ¼ DES AS Follows at NECOR SD SE1/4 Thence W Al North Line SD SE 14 1257.50FT, Thence SWLY parallel with E line SD SE ¼ 1206.25FT, Thence 1206.60FT to a pt 66ft East of West Line SD SE1/4, Thence S parallel with SD W line 244.03 to pt of beginning. Then continuing S parallel with SD west line 373.69ft to centerline of CSAH No 34 as dedicated in Wimbledon Hills, Thence Westerly 68.18ft Al A curve to W Line SD SE1/4, Then North Al SD West Line 390.77ft, Thence East 66ft to PT of Beg Section 33-107-14, as recorded in the County of Olmsted recorders office. 5) Establish a non-contiguous district at the City of Rochester’s Public Works Transit Operation Center to allow for the construction of a BRT vehicle maintenance facility for estimated $5,452,000 of which $2,486,112 will be DMC Funds. Approvals, milestones, and decision points: 1) March 2015: Rochester City Council approves establishment of DMC development district. 2) April 2015: DMCC board of directors approves establishment of DMC development district. 3) December 2016: Rochester City Council approves first DMC development district modification, incorporating the entirety of the site redeveloped as the Berkman apartments. 4) February 2017: DMCC board of directors approves first DMC development district modification, i incorporating the entirety of the site redeveloped as the Berkman apartments. 5) July 2020: Rochester City Council approves second DMC development district modification, incorporating the 2nd Street SW right-of-way and Mayo West Lot as a requirement for BRT and West Transit Village development. 6) August 2020: DMCC board of directors approves second DMC development district modification, incorporating the 2nd Street SW right-of-way and Mayo West Lot as a requirement for BRT and West Transit Village development. 7) May 2025: DMCC board of directors presented with third DMC development district modification(s) as described above, submits proposed modifications to City for consideration. 8) By July 21, 2025: Rochester City Council considers DMC development district boundary modification. 9) September 25, 2025: Modifications approved by the Rochester City Council may be considered by the DMCC board of directors at a public hearing.