HomeMy WebLinkAboutDMCC Resolution No. 187-2025 (Approving Amendment to Resolution No. 149-2024 Establishing a Downtown Property Preservation Program to Address Public Infrastructure Projects Within the City of Rochester’s Downtown Commercial Historic District)DESTINATION MEDICAL CENTER CORPORATION
RESOLUTION NO. 187-2025
A RESOLUTION APPROVING AMENDMENT TO RESOLUTION NO. 149-2024
ESTABLISHING A DOWNTOWN PROPERTY PRESERVATION PROGRAM TO
ADDRESS PUBLIC INFRASTRUCTURE PROJECTS WITHIN THE CITY OF
ROCHESTER’S DOWNTOWN COMMERCIAL HISTORIC DISTRICT
The following Resolution was offered by Randy Schubring, seconded by Kim Norton.
BACKGROUND RECITALS
A. Pursuant to Resolution No. 149-2024, the Destination Medical Center Corporation
(the “DMCC”) approved (the “Approval”) the creation of the Downtown Property Preservation
Program (the “Program”) to aid public infrastructure projects within the City of Rochester’s (the
“City”) Commercial Historic District. The Approval set forth various conditions that the Program
must adhere to which were set forth in Exhibit A to Resolution 149-2024 (the “Project
Conditions”).
B. Following the establishment of the Program, the Destination Medical Center
Economic Development Agency (the “EDA”) and the City have further reviewed the Project
Conditions and recommend revisions to the Project Conditions, as set forth on Exhibit A attached
hereto (the “Amended Project Conditions”), to better achieve the intended benefit of the
Program.
C. The EDA requests that the DMCC approve the Amended Project Conditions.
RESOLUTION
NOW, THEREFORE, BE IT RESOLVED, by the DMCC Board of Directors, that the
DMCC approve the Amended Project Conditions based on the following conditions:
1. The scope of approval of the Amended Project Conditions is set forth in the
attached Exhibit A.
2. Any modification to the Amended Project Conditions will be subject to subsequent
approval by the DMCC.
BE IT FURTHER RESOLVED, that the Chair or the Treasurer of the DMCC is
authorized and directed 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.
41202486v1
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
DESTINATION MEDICAL CENTER
ECONOMIC DEVELOPMENT AGENCY
Downtown Commercial Historic District
Year 1 Review
December 2025
CONTEXT
DESCRIPTION OF DOWNTOWN COMMERICAL HISTORIC DISTRICT
Rochester’s Downtown Commercial Historic District is a unique corridor within the Destination Medical Center (DMC)
development area that celebrates the city’s architectural heritage, small-scale urban fabric, and the layered stories of its
growth. The district includes a rich collection of early- to mid-20th-century commercial buildings and upper-story spaces, many
of which are ripe for adaptive reuse.
In 2024, the City of Rochester, Minnesota designated the Downtown Commercial Historic District as a local historic landmark.
This decision followed a public hearing and an updated study that highlighted the area's historical significance. The district
includes about three city blocks, bounded roughly by South Broadway Avenue on the east, 1st Avenue Southwest on the west,
2nd Street Southwest to the north, and 4th Street Southwest to the south. Within this area, there are 33 properties, 28 of
which contribute to the historic character of the district (Figure 1).
Figure 1. Map of Historic District and Contributing Properties
Although the designated area represents only a portion of Rochester’s original commercial core, it contains the most intact
grouping of historic buildings from the district’s period of significance, which spans from 1870 to 1962. Many other historic
buildings were lost in the late 20th and early 21st centuries due to redevelopment. While architectural styles of the buildings
vary greatly, this pattern is by no means distinct to Rochester, and the buildings in the district are united by a physical
development pattern that is typical of Midwestern commercial centers. Characterized by street-facing primary facades, zero lot
line construction, and rectangular block plats, the streetscape reflects a longstanding pattern of civic and commercial
development in Rochester.
DESTINATION MEDICAL CENTER
ECONOMIC DEVELOPMENT AGENCY
This shared historic context and spatial organization are what qualified the area as a cohesive historic district. The district plays
a critical role in the city's identity and economic strategy, offering walkable streetscapes, locally-owned businesses, and human-
scale development. However, many properties within the district face challenges such as deferred maintenance, underutilized
upper stories, and regulatory hurdles. Strategic investment is necessary to activate these spaces for modern use while
preserving their historic integrity.
Heritage Preservation Overlay District
The City’s local designation was enabled by the Heritage Preservation Overlay District in the Unified Development Code (UDC).
The designation is intended to identify and safeguard properties that have historic value to the community and to:
• Encourage the preservation of properties and districts that reflect elements of the City’s cultural, social, economic,
political, visual, or architectural history;
• Enhance the City’s appeal and attraction to residents, visitors, and tourists while promoting its economic viability
through the protection and promotion of its unique character as related to its history and heritage;
• Enhance the visual and aesthetic character, diversity, and interest in the City through attention to historic properties;
• Foster civic pride in the beauty and notable accomplishments of the past;
• Promote the preservation and continued use of historic properties for the education and general welfare of the people
of the City; and
• Promote the environmental benefits of adapting and reusing buildings.
HISTORIC PRESERVATION DISTRICT INTIATIVE
OVERVIEW
As the Rochester City Council considered designating the area as a historic landmark district, policymakers acknowledged the
need for public support to achieve the goals outlined in the UDC. City Council requested that staff from DMC and the City
research best practices and engage historic district building owners and tenants to develop a multi-pronged approach for public
investment. Based on this robust process, staff recommended creating the Historic Preservation District Initiative consisting of
eight focus areas. City Council adopted the initiative in 2024.
The eight focus areas (Figure 2) are intended to be a collective effort across partner organizations including the City, DMC,
Rochester Downtown Alliance (RDA), and others. DMC is considered the lead in two focus areas: Financial and Recruitment and
Retention.
Figure 2. Historic District Preservation Initiative Focus Areas (DMC in green)
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ECONOMIC DEVELOPMENT AGENCY
CURRENT EFFORTS IN FOCUS AREAS
The City, DMC, and RDA are advancing work across multiple focus areas. The focus of this report is on the Financial focus area.
However, more in-depth information about the progress in each area is available through the City and RDA. The following
highlights a few examples of how the organizations are working together to ensure a comprehensive approach.
Mobility, Branding and Marketing
With support from Mayo Clinic, RDA is developing and testing a temporary wayfinding strategy specifically intended to enhance
the Mayo Clinic patient experience by providing intuitive, clearly branded signage that encourages confident exploration of
Downtown Rochester while ensuring a seamless return to the Mayo Clinic campus. The draft maps below illustrate a color-
coded approach to distinguishing between distinct areas of downtown. The Historic District is identified in purple consistently
across the materials in the campaign. This work will continue to be finalized in partnership with Mayo and the City.
Figure 3. Draft Wayfinding Campaign Map
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ECONOMIC DEVELOPMENT AGENCY
Figure 4. Draft Historic District Wayfinding Map
DESTINATION MEDICAL CENTER
ECONOMIC DEVELOPMENT AGENCY
Public Realm
With City Council support, the City of Rochester selected Mend Collective to lead the Public Realm focus area in partnership with
DMC. This initiative will result in a set of recommendations and strategies aimed at creating a cohesive, high-quality public realm
that strengthens the identity and character of the Historic District. The scope may include wayfinding signage, interpretive
historic markers, lighting enhancements, and consistent standards for street furniture. Achievements thus far include a publicly
available website highlighting a “Case for Action” as well as significant community engagement. DMC staff are actively
collaborating with the City as part of the project team.
Retention and Recruitment, Activation
DMC has worked with Krueger Real Estate Advisors on these focus areas. Lee Krueger, based in Minneapolis, brings decades of
experience in commercial real estate, strategic consulting, and placemaking. Since 1985, Krueger has led Krueger Real Estate
Advisors, where he and his team specialize in creative and adaptive real estate solutions, helping clients fill in the final, often
most complex, "puzzle pieces" to advance ambitious development goals.
In 2023 and 2024, Krueger and his team were engaged by DMC to raise awareness of the Rochester market and support the
recruitment of dining, retail, and entertainment tenants within the broader DMC initiative. More recently, focus has shifted to
partnering with DMC and the Rochester Downtown Alliance (RDA) to develop a pop-up retail program located within the Historic
District, aligning economic activation with historic preservation.
FINANCIAL FOCUS AREA: FUNDING PROGRAM OVERVIEW
Historic districts are economic and cultural anchors. When well-maintained and active, they enhance tourism, small business
success, and civic pride. The justification for financial investment is grounded in this as well as the idea that public investment in
historic buildings is a catalyst; every dollar in public incentive often unlocks multiple dollars in private reinvestment and
contributes to outcomes valued by the broader community. The following logic model illustrates how the investment of public
funds into Rochester’s Downtown Commercial Historic District can contribute to achieving these goals.
Table 1. Funding Program Logic Model
Input Activities Outputs Outcomes Impacts
City Investment
• Pre-renovation
Grant (City
• Revolving Loan
DMC Investment:
Infrastructure
Investment Fund
Private
Investment
• Inform property and
business owners about
funding opportunities.
• Review applications and
recommend eligible
projects for funding.
• Fund building projects
that stabilize structures;
adapt structures for
new or on-going uses;
beautify (historically)
exteriors; and provide
economic and
environmental
sustainability.
• Support funded
properties during
projects.
• Information shared
quarterly about
available funding
programs for
downtown
businesses and
property owners.
• Funding distributed
to historic
properties.
• Report provided
annually on
progress toward
program metrics.
• Funded projects
completed.
• Improved quality of
environment in
district with strong
historic integrity.
• Safeguarded
properties with
historic value.
• New uses of
historic buildings.
• Enhanced appeal of
city and downtown
to residents and
visitors.
• Increased civic
pride (residents).
• Increased visitors
and new residents
in DMC district.
• Increased money
spent in district and
downtown.
• Decreased
demolition to
landfill and carbon
footprint from new
construction.
The program developed by the City and DMC is designed to stimulate adaptive reuse, promote downtown housing, and
strengthen the district as a vibrant cultural and economic hub. It offers property and business owners within the district access
to financial support aimed at improving and maintaining the historic and architectural integrity and sustainable usefulness of
their buildings.
DESTINATION MEDICAL CENTER
ECONOMIC DEVELOPMENT AGENCY
Three key financial tools comprise the program: a revolving loan fund for building improvements, a pre-renovation grant, and a
historic infrastructure investment program. The goal of these tools is to facilitate thoughtful rehabilitation and upgrades that
honor the past while ensuring a vibrant future for the district. All improvements funded through this program must be in
compliance with all applicable codes and meet adopted City heritage preservation alterations requirements. The three tools
include:
Revolving Loan Fund
The Revolving Loan Fund is designed to reduce financial barriers for renovation, code compliance, and structural improvements
to eligible historic buildings. Details include:
• Funder: City of Rochester
• Allocation: $1,000,000
o Project Funding: Applicants can apply to receive a deferred, 0% interest loan of up to $200,000 to make
improvements to properties within the district.
o Term: Loan carries a term of 10 years.
o Timeline: Until funds are exhausted or December 31, 2029, whichever occurs first.
• Typically layered with DMC funding to maximize investment outcomes.
• Eligible Uses:
o General preservation of historic components of the property.
o Interior and exterior rehabilitation, restoration, and/or preservation of (for example): tuck pointing, masonry
repair, windows, doors, painting, roof, foundations, and structural work, façade improvements, additions, and
addressing code deficiencies.
o Adaptive reuse.
o Creation of upper-level residential units.
Pre-Renovation Grants
Pre-Renovation Grants are designed to cover soft cost activities like design, financial studies, project impact analyses, historic
structure and re-use reports, and other activities related to pre-development costs.
• Funder: City of Rochester
• Allocation: $125,000
o Project Funding: Applicants can apply to receive a reimbursement of up to $20,000 per project.
o Match: Applicants must provide matching funds of at least 50% if the grant awarded is over $10,000.
o Timeline: Available until December 31, 2029.
Historic Infrastructure Investment Program
The Infrastructure Investment Program is designed to catalyze high-impact adaptive reuse, facade improvements, and second-
story housing in the historic district.
• Funder: DMC Economic Development Agency administered in partnership with the City of Rochester.
• Allocation: $5,000,000
o Project Funding: Up to $500,000 per contributing property.
o Match: Matching funds of at least 50% by other non-DMC funds.
o Approval: By the DMCC Board and Rochester City Council.
o Timeline: Available until 12/31/2029 or until funds are exhausted or re-allocated.
A building sitting vacant might seem like a problem for only the property owner. But a vacant building means
that a business wasn’t operating, paychecks were not written, sales taxes were not collected, and utility bills
were not paid. That lack of economic activity is also part of the cost of an empty building. - North Carolina
Report by Place Economics
DESTINATION MEDICAL CENTER
ECONOMIC DEVELOPMENT AGENCY
• Eligible Expenses: Permanent physical improvements to the building that meet DMC definition of “public infrastructure
project” divided into four categories:
o Adaptive Reuse: Conversion of property use, such as office to retail or restaurant, or renovating vacant second-
story space for housing or commerce, etc.
o Building System Upgrades: HVAC, electrical, plumbing, etc.
o Building Safety and Preservation: Exterior envelope sealing, accessibility improvements, etc.
o Code Modernization: Improvements made to legacy properties in relation to ADA or other regulatory compliance,
preparation of reuse, future reinvestment, sale, etc.
These tools together make Rochester’s historic district one of the most robustly supported redevelopment zones in the region,
especially for small and mid-sized property owners.
FINANCIAL FOCUS AREA: FUNDING PROGRAM PROGRESS TO DATE
As of August 2025, nine projects were approved by DMCC Board and City Council for Historic Infrastructure Investment funding
totaling $1,494,229 resulting in a total shared public and private investment of $3,026,700. Additionally, six of the nine projects
used the Revolving Loan funding as a match to the DMC funds and two of the projects utilized Pre-renovation Grants. While the
Infrastructure Investment funding has used less than one-third of the amount allocated, more than three-quarters of the
allocated Revolving Loan and Pre-renovation Grant funds were utilized in the first year.
Funds remaining for future projects by category:
• Revolving Loan: $229,836
• Pre-renovation: $101,875
• Historic Infrastructure Investment: $3,505,771
The table and figures below provide greater detail about the awarded projects and the remaining funds across the three-
pronged funding program. One additional project request for $76,495 of DMC support will be considered for funding during the
late 2025 board meetings.
Figure 5. DMC Funding Projects through August 2025
DESTINATION MEDICAL CENTER
ECONOMIC DEVELOPMENT AGENCY
Table 2. Detailed Overview of Historic District Funding through October 2025
Agreement
Signed
Date
Approved Address Property
Name Project Category and Description
Approved Funds
DMC Loan Other Match Pre-Reno
Grant Total Project
6/2/2025 10.7.24 216 1st Ave
SW
Bebap
Restaurant
Building Safety & Preservation:
Roof $84,912.00 $84,912.00 $169,824.00
5/15/2025
1.6.25
330
Broadway
Ave S
Above
Marrow
Restaurant
Adaptive Reuse: 2nd story
apartment $125,288.04 $20,000.00 $105,288.05 $250,576.09
Sent to Owner
1/17/2025
1.6.25
400
Broadway
Ave S
Riverside
Building
Building Safety & Preservation:
Roof, tuck-pointing, bathroom reno $202,274.33 $202,275.34 $404,549.67
6/2/2025
1.6.25 212 1st Ave
SW City Market
Building Safety & Preservation;
System Upgrades: Roof, electrical
system, HVAC
$380,985.00 $200,000.00 $219,225.00 $20,000.00 $800,210.00
5/19/2025 2.19.25 224 First Ave
SW
Old City
Hall
Building System Upgrades:
Electrical $22,500.00 $22,500.00 $45,000.00
9/5/2025 6.2.25 324 S
Broadway
Fagan
Studios
Adaptive Reuse: 2nd story
apartment design $3,125.00
6/2/2025 6.2.25 216 First Ave Bebap
Restaurant
Building System Upgrades: HVAC,
exhaust, ductwork $161,535.00 $115,088.00 $46,447.00 $323,070.00
9/5/2025 6.2.25 324 S
Broadway
Fagan
Studios
Adaptive Reuse: 2nd story
apartment $245,185.00 $200,000.00 $45,185.00 $490,370.00
Sent to owner
9/18/25 6.2.25 22 3rd St SW Kruesel's Building Safety & Preservation:
Roof, tuck-pointing $127,039.00 $127,039.00 $254,078.00
8/20/2025 6.2.25 326-328 S
Broadway DB Studios Building Safety & Preservation:
Foundation re-pointing $6,750.00 $6,750.00 $13,500.00
Signed by
owner
11/12/2025
10.6.25
319
Broadway
Ave S
JLB Building System Upgrades:
Mechanical $14,000 $14,000 $28,000
10/13/2025
10.6.25
317
Broadway
Ave S
Bach Music
Building Safety & Preservation;
System Upgrades: Façade,
mechanical $123,761.00 $123,761.00 $247,522.00
Sub-totals $1,494,229.37 $747,039.00 $785,431.39 $23,125.00 $3,026,699.76 Remaining Funds $3,505,770.63 $252,961.00 $101,875.00
Total Committed $5,000,000.00 $1,000,000.00 $125,000.00
DESTINATION MEDICAL CENTER
ECONOMIC DEVELOPMENT AGENCY
Figure 6. DMC Year 1 Funding through October 2025 (dark orange indicates remaining funds)
Figure 7. Year 1 City Funding (dark orange indicates remaining funds)
$84,912.00
$125,288.04
$202,274.33
$380,985.00
$22,500.00
$161,535.00
$245,185.00
$127,039.00
$6,750.00 $14,000
$123,761.00 $3,505,770.63
Year 1: DMC Funding
$84,912.00
$20,000.00
$200,000.00
$115,088.00
$200,000.00
$127,039.00
$252,961.00
Year 1: City Loan Funding
DESTINATION MEDICAL CENTER
ECONOMIC DEVELOPMENT AGENCY
Anticipated Impact
Through October 2025, nearly 40% of contributing properties in the district have received funding. As noted in the table above,
many projects are still getting underway and have yet to realize their potential impact. However, when asked to describe the
anticipated impact the funding, the businesses and property owners who have received funding shared that they would not have
been able to proceed with their building improvements without the DMC and City investment. They felt that the resources:
• Help them advance their business goals, increase property value, and continue to preserve the historic nature of their
buildings.
• Improve restoration timelines and efficencies.
• Enable more compliance with current code.
• Impact resident and visitor experience with context to Rochester’s history.
• Demonstrate commitment to the properties and district by the City and DMC.
As one property owner said, “This is a fantastic incentive.” Also, in a 2024 Minnesota StarTribune article, Bucky Beeman, owner of
the Kelley Building above Marrow and co-owner of the Riverside Building, shared this message on the new program’s value for
small business:
“I hope people can recognize that historic buildings can be a great place for business to thrive… they truly can become a place for
small businesses to grow, and now there is a use case that it does actually work.”
More evaluation of project impact will be available after Year 2.
FINANCIAL FOCUS AREA: REFLECTING ON YEAR 1 TO IMPROVE YEAR 2
Both the DMCC Board and City Council enthusiastically supported the projects requesting Infrastructure Investment funding.
However, further discussion and some concerns arose regarding the adaptive reuse category for DMC-funded projects. These two
projects, both focused on adding units of second story housing, were determined to meet program guidelines and ultimately
adopted through majority votes. They did prompt a request by the DMCC for staff to review the first year of funding and consider
potential refinements – including the use of adaptive reuse funding for housing and other commercial purposes.
Concerns
The concerns articulated by some DMC EDA, DMCC Board, and City Council members regarding the use of infrastructure
investment program funds for adaptive reuse included:
• Alignment with original intent of legislation for funding housing projects with DMC funds.
• Amount of funding requested per unit of housing compared to previous multi-unit housing projects as well as other
public resources available throughout the city.
• Type of housing generated will not be affordable and will be accessible to people who are able to afford housing
elsewhere downtown.
• Wealth generation for property owners due to increased property value and rents regardless of the new use.
• Advantage for businesses located in the Historic District compared to other locations downtown.
As the DMC discusses how best and whether to refine the program, a few important notes.
Alignment with Legislation: There are approaches to adapt properties that meet adopted standards and there are those that do
not. Rehabilitation is the term used for the approach to adaptive reuse that meets the City’s requirements. Rehabilitation is
defined as the act or process of making possible a compatible use for a property through repair, alterations, and additions while
preserving those portions or features which convey its historical, cultural, or architectural values. Subd. 11.a.(2) of the DMC
legislation states that a project may “demolish, repair, or rehabilitate buildings”. Given this, DMC’s adopted definition of
adaptive reuse does meet the definition of allowed use of funds outlined in legislation.
DESTINATION MEDICAL CENTER
ECONOMIC DEVELOPMENT AGENCY
Benefits of Adaptive Reuse
Adaptive reuse of historic buildings offers significant environmental, economic, and social benefits by transforming underutilized
structures for modern needs while preserving their unique character. Cities with notable support for adaptive reuse include Los
Angeles, San Francisco, Baltimore, Chicago, Detroit, Philadelphia, Alexandria (VA), Cincinnati, and Northfield (MN). While the
programs vary in the incentives they offer, they are grounded in these well-supported benefits.
Environmental Benefits
• Conserves resources: Reusing existing materials reduces the demand for new materials and the associated
environmental impact.
• Reduces waste: It minimizes landfill waste that comes from demolition and new construction.
• Lowers carbon footprint: By avoiding demolition and the production of new building materials, adaptive reuse
significantly lowers a project's carbon footprint.
Economic Benefits
• Revitalizes the economy: It generates new uses for vacant or underutilized structures, which can spur new business
development.
• Reduces costs: Developers can save on demolition costs and construction timelines.
• Increases market value: The unique architectural features of historic buildings, such as high ceilings and brickwork, can
make them more desirable and increase their value.
Cultural and Social Benefits
• Preserves history: It maintains the unique historical and cultural character of a community by renovating rather than
demolishing buildings.
• Creates vibrant neighborhoods: It revitalizes urban centers, encourages mixed-use development, and makes downtown
more walkable and community oriented.
• Fosters pride: Engaging community members in the process helps create a sense of ownership and pride in the
revitalized spaces, ensuring they meet local needs.
Many buildings remain vacant in urban areas, often in neighborhoods that would benefit from revitalization. These spaces
represent missed opportunities for economic growth and community engagement. Adaptive reuse offers a solution by
transforming these buildings into vibrant hubs that meet the needs of residents and visitors while introducing new functions in
downtown. This intentional transformation creates a ripple effect, positively influencing the urban planning of the surrounding
area (Congress on the New Urbanism).
National expert, Place Economics, measured the positive impact on the broader downtown economy that each
additional unit of downtown housing contributes. For instance, someone paying $1,000/month in rent may contribute
$12,000/year in rent to the property owner, but they contribute significantly more than that when living there
(estimated at $40k/yr) that benefits nearby businesses and sales tax.
An article published by National League of Cities titled, “Why Housing is Key to Main Street Success,” details how
housing revitalizes main streets primarily through increased foot traffic. Residents living near commercial areas naturally
frequent local shops, restaurants, and services. The convenience of amenities within walking distance encourages
residents to spend more time and money locally, which benefits local businesses and entrepreneurs.
Renovating an existing building typically reduces labor costs due to less site preparation and labor needed, making it a
more efficient choice. The scope of work typically involves refurbishing and upgrading the existing conditions, allowing
for a streamlined process and saving time and resources.
DESTINATION MEDICAL CENTER
ECONOMIC DEVELOPMENT AGENCY
FINANCIAL FOCUS AREA: LOOKING AHEAD
The City sent property and business owners in the district a survey to gauge future interest in improving their properties and
understand how the City and DMC team can better support them. Beyond the 11 projects approved through October 2025,
property and business owners have expressed interest in at least five additional projects. City and DMC staff will continue to
conduct outreach to understand upcoming project needs, interests, and timing.
Rochester’s Historic District is uniquely positioned to model how cities can preserve character and meet modern needs through
both public and private investment. However, there is a need to clarify the best use of public funds as the program progresses into
its second year. In recognition of the feedback articulated by several members of the three governing bodies, staff recommend
modifying the eligible expenses under the adaptive reuse category.
Proposed
The following is a list of eligible project expenses as well as non-eligible project expenses for the adaptive reuse category of
funding. In short, eligible expenses relate to any improvements needed to the “core and shell” in order to prepare the building for
adaptive reuse but stop short of covering costs of interior fit regardless of purpose.
Eligible Project Expenses*
• Restoration, rehabilitation, and preservation work that support structural fitness of the historic building. Examples:
foundations, site drainage, roofs, interior framing, rafters, floor and roof support, wall structures (including masonry
repointing, ceramic and structural glass repair/replacing).
• Projects that require additional approval due to being in the historic district. Examples: storefront
reconstruction/replacement/repair, exterior window/door replacement, awnings, exterior lighting fixtures,
reconstruction of exterior historic architectural features such as cornices, parapets, balconies, entryways, and porches.
• Mechanical and plumbing systems. Examples: furnaces, air conditioners, fire and flood suppression (pumps), solar
panels/systems, vent/exhaust systems.
• Building and energy compliance. Examples: Weatherization, insulation, electrical repairs/replacement.
• Accessibility and safety projects. Examples: stairways, ramps, mechanical lifts/elevators, railings, mechanical door
openers.
• Existing Materials Repair/Restoration/Preservation. Examples: painting or sealing wood/porous elements, and interior
plaster repair, interior woodwork or flooring repair.
* All funded projects must also still meet any/all code requirements and (if otherwise required) be approved through the City
Certificate of Appropriateness process.
Non-Eligible Project Expenses
• Building additions to add usable interior space, unless required as part of an eligible project.
• Interior fit-out projects. Examples: Interior floorplan alterations, partition walls, kitchens, bathrooms (unless required by
code), new finishes, and furnishings (FF&E).
• Interior additions or alterations purely for the purpose of changing the use of the property.
The DMC EDA recommends these refinements to the Downtown Commercial Historic District Investment Program to the DMCC
Board for discussion and approval.