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HomeMy WebLinkAboutDMCC Resolution No. 183-2025 (Approving Amendment to Resolution No. 161-2025 in Connection with 2nd Street Public Realm Enhancement) DESTINATION MEDICAL CENTER CORPORATION RESOLUTION NO. 183-2025 A RESOLUTION APPROVING AMENDMENT TO RESOLUTION NO. 161-2025 IN CONNECTION WITH 2ND STREET PUBLIC REALM ENHANCEMENT The following Resolution was offered by Kim Norton, seconded by Mark Thein. BACKGROUND RECITALS A. Pursuant to Resolution No. 161-2025, the Destination Medical Center Corporation (the “DMCC”) approved an allocation of funds in an amount not to exceed $2,372,500 from the Strategic Development Fund (the “Approval”) to support the development of the 2nd Street public real enhancements, as further described in Resolution No. 161-2025 (the “Proposed Project”). B. The Approval set forth various conditions that the Proposed Project must satisfy (the “Project Conditions”), including, without limitation, a requirement that the Approval be contingent upon the commencement of the Proposed Project on or before December 31, 2025 (the “Funding Contingency”). C. Gerrard Corporation has requested an extension of the Funding Contingency until May 31, 2026, contingent upon satisfaction of all of the Project Conditions (the “Request”). D. As originally set forth in Resolution 161-2025, the Proposed Project continues to sufficiently advance the goals of the Development Plan (as defined in Resolution 161-2025). E. The Destination Medical Center Economic Development Agency has recommended approval of the Request based on the summary and recommendation attached as Exhibit A and the DMCC must now act on the request. RESOLUTION NOW, THEREFORE, BE IT RESOLVED, by the DMCC Board of Directors, that the DMCC approves amending the Approval to authorize the Request, subject to compliance with the following conditions: 1. The Approval, as amended pursuant to the Request, remains subject to all requirements set forth in the Project Conditions. 2. The scope of the amendment to the Approval is as set forth in this Resolution. 3. Any further modification to the Approval will be subject to subsequent approval by the DMCC. BE IT FURTHER RESOLVED, that the Chair or the Treasurer of the DMCC is authorized to transmit this Resolution to the City, and to take such actions as are necessary and appropriate to effectuate the findings and approvals of this Resolution. The question was on the adoption of the Resolution and there were 8 YEAS and 0 NAYS, as follows: BOARD OF DIRECTORS Destination Medical Center Corporation YEA NAY OTHER Douglas M. Baker, Jr. X Kristin Beckmann X James R. Campbell X Kim Norton X Randy Schubring X Mark Thein X Pamela Wheelock X Paul D. Williams X RESOLUTION ADOPTED on December 10, 2025. ATTEST: Pamela Wheelock, Chair Destination Medical Center Corporation EXHIBIT A 41265072v2 Destination Medical Center Economic Development Agency 2ND STREET SW PUBLIC REALM ENHANCEMENT (GERRARD) DECEMBER 2025 Requested Board Action Authorize an extension of the $2.3725 million GSIA allocation to this project until May 31, 2026, contingent upon all the same project components as the original approval. Highlights & Key Considerations • DMC funding of $2.3725 million was granted to support a mid-block pedestrian public realm connection and support the land value for the prototype workforce for-sale condominium component of this mixed use project. • The City of Rochester has been negotiating the Development Assistance Agreement (DAA) with the developer and is anticipating bring forward a final version of that agreement to City Council on January 5, 2026. • The DMC approval of this project is contingent on this project commencing before year-end 2025. Background At the February 6, 2025 meeting the DMCC Board (and City Council and its subsequent meeting) voted to authorize the use of $2,372,500 of General State Infrastructure Aid (GSIA) to support this project. The following timeline is what is being pursued in the development agreement: • 4-unit workforce for-sale Condo Project in partnership with First Homes – timely commence construction such that it can be placed in service to comply with First Homes other financing from the state of Minnesota. • Market Rate Apartment building with corner retail space on mid-block passageway – timely commencement of construction such that it can be placed in service by approximately March 31, 2027. • Public Realm – completed by June 1, 2027. The Second Street corridor is a critical E-W connection in the DMC District and will be home to the first major transportation investment with LINK Bus Rapid Transit running down Second Street with high-frequency service. It is anticipated that the transportation investment will have a transformative effect along the corridor and the neighborhoods that fall within the walkshed of the BRT line. Destination Medical Center Economic Development Agency Since at least 2009, there have been City- and community-led plans that call out opportunities to build public realm spaces to better connect neighborhoods to Second Street (see below from 2009 Second Street Corridor study). One of the more significant components of these plans is to create mid-block pedestrian passageways to break up the long “superblocks” that exist along the corridor and bring a more human-scaled dimension back to the street grid. The creation of these mid-block passageways is not possible without the participation of willing landowners. The City of Rochester has identified a developer and landowner that is interested in participating in the creation of this type of public space in conjunction with a plan to develop market rate housing on adjacent parcels also under the same ownership. The creation of these mid- block passageways is not possible without the participation of willing landowners. The City of Rochester has identified a developer and land owner that is interested in participating in the creation of this type of public space in conjunction with a plan to develop market rate housing on adjacent parcels also under the same ownership. Attachments / Exhibits Letter from the project developer requesting an extension.