HomeMy WebLinkAboutResolution No. 147-25 -Resolution - Civic Center North Apartment Project GSIA
RESOLUTION
Authorization Approving Expenditure of Destination Medical Center (DMC)
Strategic Redevelopment Funds in Support of the Civic Center North (Sherman)
Project
WHEREAS, the Development Plan adopted by the Destination Medical Center
Corporation (DMCC) on April 23, 2015, as amended, (the “Development Plan”).The
Development Plan identified a desired housing mix that includes affordable and workforce
units, as well as market-rate housing. The Five-Year Update to the Development Plan,
adopted by the DMCC on November 19, 2020 in Resolution No. 109-2020, further
emphasized the need for housing, particularly with a range of income accessibility,
workforce housing, and housing near public transit. The DMCC has determined that
affordable and workforce housing within the Development District forms a necessary
component of workforce development to support the overall economic development goals
and strategies; and
WHEREAS, The Civic Center North Project represents a significant opportunity to
advance mixed-income housing within the Downtown Waterfront subdistrict. Importantly,
increasing the residential base in the riverfront area will directly support the growth of
additional retail, dining, and neighborhood services. A greater number of downtown
residents creates the foot traffic and customer demand necessary to sustain and attract
small businesses, reinforcing the City’s goals for a walkable, mixed-use urban core. This
type of housing investment strengthens the economic ecosystem of downtown and
improves the long-term viability of the surrounding commercial and public spaces; and
WHEREAS, In May 2024, the DMC Corporation Board and the City Council approved up
to $3 million in General State Infrastructure Aid (GSIA) funding to support the project.
However, following a pause in the City’s Thermal Energy Network (TEN) planning efforts,
Sherman Associates modified the building design to remove the connection to that
system. These changes prompted the applicant to resubmit a request for DMC funding;
and
WHEREAS, Sherman Associates Development has submitted updated materials that
reflect a refined vision for the project, one that remains closely aligned with the goals of
the Destination Medical Center (DMC) initiative and the City of Rochester. Expanding
access to affordable senior housing in well- connected, mixed-income environments
continues to be a top priority for both entities, particularly in areas with strong transit
access and proximity to services; and
WHEREAS, the DMCC Board approved the use of DMC Strategic Redevelopment Funds
in support of the Civic Center North (Sherman) Project at their May 22, 2025, DMCC
meeting in the amount of $500,000 and up to $13,500,000 in Tax Increment Financing to
support the proposed Civic Center North (Sherman) Project; and
WHEREAS, the City of Rochester is recommending to the Rochester Common Council
to approve the $500,000 in DMC CIP Strategic Redevelopment fund and authorize up to
$13,500,000 in Tax Increment Financing to support the Civic Center North (Sherman)
Project.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Rochester,
MN, that the Council authorized the use of $500,000 from the DMC CIP Strategic
Redevelopment fund and up to $13,500,000 in Tax Increment Financing to the proposed
Civic Center North (Sherman) 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)