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Home My WebLink AboutDMCC Resolution No. 189-2026 (Authorizing Report to the Legislature Pursuant to Statute)DESTINATION MEDICAL CENTER CORPORATION RESOLUTION NO. 189-2026 AUTHORIZING REPORT TO THE LEGISLATURE PURSUANT TO STATUTE The following Resolution was offered by Randy Schubring, seconded by Mark Thein. BACKGROUND RECITALS A.Minnesota Laws, Chapter 143, Article 10 (the “Act”) provides that by February 15 of each year, the Destination Medical Center Corporation (“DMCC”) and the City of Rochester (the “City”) must jointly submit a report to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over local and state government operations, economic development, and taxes, to the Commissioners of Revenue and Employment and Economic Development, and to Olmsted County. The DMCC and the City must also submit the report as provided in Minnesota Statutes, Section 3.195. B.The DMCC and City staff have prepared a draft report, due on February 15, 2026, and attached as Exhibit A. RESOLUTION NOW, THEREFORE, BE IT RESOLVED, by the DMCC Board of Directors that the Chair or Vice Chair of the DMCC is authorized to execute and submit the report to the Minnesota Legislature as required by the Act, in form similar to the report attached here as Exhibit A, as may be modified through further discussions with the City, and to take such other actions as are necessary and appropriate to effectuate the timely submission of the report to the Minnesota Legislature. 41725846v1 The question was on the adoption of the Resolution and there were 7 YEAS and 0 NAYS, as follows: BOARD OF DIRECTORS Destination Medical Center Corporation YEA NAY OTHER Douglas M. Baker, Jr. X Kristin Beckmann X Kim Norton X Randy Schubring X Mark Thein X Pamela Wheelock X Paul D. Williams X RESOLUTION ADOPTED on February 5, 2026. ATTEST: Pamela Wheelock, Chair Destination Medical Center Corporation EXHIBIT A February [1010], 2026 The Honorable Tou Xiong Chair, State and Local Government Committee Minnesota State Senate 323203 Minnesota Senate Building 95 University Avenue W St. Paul, MN 55155 The Honorable Jim Nash Chair, State Government Finance and Policy Committee Minnesota House of Representatives 2nd Floor, Centennial Office Building 658 Cedar Street St. Paul, MN 55155 The Honorable Andrew Lang State and Local Government Committee Minnesota State Senate 2205 Minnesota Senate Building 95 University Ave W St. Paul, MN 55155 The Honorable Ginny Klevorn Chair, State Government Finance and Policy Committee Minnesota House of Representatives 5th Floor, Centennial Office Building 658 Cedar Street St. Paul, MN 55155 The Honorable Bobby Joe Champion Chair, Jobs and Economic Development Committee Minnesota State Senate 3401 Minnesota Senate Building 95 University Ave W St. Paul, MN 55155 The Honorable Dave Baker Chair, Workforce, Labor, and Economic Development Finance and Policy Committee Minnesota House of Representatives 2nd Floor, Centennial Office Building 658 Cedar Street St. Paul, MN 55155 The Honorable Rich Draheim Jobs and Economic Development Committee Minnesota State Senate 2225 Minnesota Senate Building 95 University Ave W St. Paul, MN 55155 The Honorable Dave Pinto Chair, Workforce, Labor, and Economic Development Finance and Policy Committee Minnesota House of Representatives 5th Floor, Centennial Office Building 658 Cedar Street St. Paul, MN 55155 The Honorable John Marty Chair, Finance Committee Minnesota State Senate 3235 Minnesota Senate Building 95 University Ave W St. Paul, MN 55155 The Honorable Paul Torkelson Chair, Ways and Means Committee Minnesota House of Representatives 2nd Floor, Centennial Office Building 658 Cedar Street St. Paul, MN 55155 February [10], 2026 Page 2 The Honorable Eric Pratt Finance Committee Minnesota State Senate 2217 Minnesota Senate Building 95 University Ave W St. Paul, MN 55155 The Honorable Cedrick Frazier Chair, Ways and Means Committee Minnesota House of Representatives 5th Floor, Centennial Office Building 658 Cedar Street St. Paul, MN 55155 The Honorable Ann Rest Chair, Taxes Committee Minnesota State Senate 328 Capitol 75 Rev. Dr. Martin Luther King Jr. Blvd. St. Paul, MN 55155 The Honorable Greg Davids Chair, Taxes Committee Minnesota House of Representatives 2nd Floor, Centennial Office Building 658 Cedar Street St. Paul, MN 55155 The Honorable Bill Weber Taxes Committee Minnesota State Senate 2211 Minnesota Senate Building 95 University Ave W St. Paul, MN 55155 The Honorable Aisha Gomez Chair, Taxes Committee Minnesota House of Representatives 5th Floor, Centennial Office Building 658 Cedar Street St. Paul, MN 55155 The Honorable Matt Varilek Commissioner, Minnesota Department of Employment and Economic Development 180 E. 5th Street, Suite 1200 St. Paul, MN 55101 The Honorable Mark Thein Chair, Olmsted County Board of Commissioners 151 4th St SE Rochester, MN 55904 The Honorable Paul Marquart Commissioner, Minnesota Department of Revenue 600 North Robert Street St. Paul, MN 55101 February [10], 2026 Page 3 Re: Destination Medical Center – February 15, 2026 Report Dear Senators, Representatives, Commissioners, and Chairs: On behalf of the Destination Medical Center Corporation (DMCC) and the City of Rochester, we are honored to submit the 2026 Annual Report to the Legislature pursuant to Minnesota Statutes § 469.43. In 2013, the Minnesota Legislature took an extraordinary step: it created the Destination Medical Center initiative to ensure that Minnesota would remain the world’s leader in health, science, and innovation. That vision has proven both sound and forward-looking. Today, DMC stands as an initiative that has delivered measurable economic growth, fiscal return, and public benefit while operating with exceptional transparency and discipline. Since adopting a Development Plan in 2015, DMC has verified nearly $1.8 billion in qualified private investment, leveraged by nearly $200 million in public infrastructure aid. These investments have transformed Rochester’s downtown, created thousands of jobs, and strengthened Minnesota’s tax base. They have also reaffirmed the Legislature’s original intent: that limited, performance-based public investment, directed by a strong local partnership, could secure a generational advantage for our state’s economy. This year, the DMCC and City updated the DMC Development Plan, fulfilling the statutory requirement to recalibrate the program at least every five years. That update adapted our strategies to changing market conditions, engaged our community in setting priorities, and documented DMC’s results in clear, verifiable terms. The updated plan sets the course for our next phase, centered on encouraging health and med-tech innovation, catalyzing purposeful growth like Mayo Clinic’s $5 billion campus expansion, called Bold. Forward. Unbound. in Rochester, and leveraging that growth to design and build resilient, people-centered public space and infrastructure. A prominent example of that innovation strategy is BioLabs Rochester, which is soon to offer nearly 16,000 square feet of shared wet-lab and office space for emerging health- and med- tech companies. BioLabs is an international-caliber research and commercialization asset, and its presence in Minnesota is only possible because of Mayo Clinic’s global scale, the community’s commitment to remaining America’s City for Health, and the long-term public–private framework the Legislature created through DMC. As a result, Minnesota’s med-tech and biotech entrepreneurs will soon have access to infrastructure that expands opportunity statewide and strengthens our position in globally competitive industries. February [10], 2026 Page 4 Throughout this work, DMC has continued to uphold the trust the Legislature placed in it. All state aid is released only after certification of private investment by the Department of Employment and Economic Development (DEED). Every expenditure is reviewed and approved by the City of Rochester and the DMCC Board in public meetings, and DEED plays an important role in auditing and certifying public and private investments. This layered oversight structure has kept the initiative disciplined, accountable, and transparent. What began as a bold idea is now a proven model - one that other states look to as they consider how to link innovation, infrastructure, and community prosperity. Through DMC, Minnesota is not only home to the world’s most trusted medical institution; it has become a living example of how partnership, prudence, and vision can drive statewide economic success. In an era of global competition for talent and investment, DMC strengthens Minnesota’s brand as a place where science, commerce, and community thrive together. The years ahead will build on this foundation. The DMCC and City will continue to deliver projects responsibly, preserve reserves for DMC’s next phase, and expand partnerships that extend DMC’s benefits across Minnesota. We are deeply grateful for the State’s trust and partnership in this work, and we remain committed to ensuring that this unique economic development program continues to deliver measurable growth, public accountability, and pride for our entire state. Respectfully submitted, Pamela Wheelock, Chair Kim Norton, Mayor Destination Medical Center Corporation City of Rochester Enclosures cc: Legislative Reference Library City of Rochester: 507.328.2900 City of Rochester DMC Corporation 201 4th St. SE Rochester, MN 55904 rochestermn.gov dmc.mn Destination Medical Center Corporation & City of Rochester ANNUAL REPORT February 2026 DMC TABLE OF CONTENTS 01Summary of Five Statutory Elements 02-06Statutory Element One-Development Plan 07Statutory Element Two- Progress of Projects 08-09 2026-2027 Capital Improvement Plan 106th Street Bridge, Neighborhood Safety & Riverfront Improvements Project 11Downtown Infrastructure Alignment 12Downtown Property Preservation Mobility 13 Statutory Element Three- Actual Costs and Financing 14-15 Statutory Element Four- Estimated Future Costs & Financing 16-19 Statutory Element Five- Debt Service Schedule 20-21 Exhibit A- Map of DMC Development District 22-23 Exhibit B- Summary of Major Projects 29-33 Projects without DMC Funding 34-35 &L:;4;H%`"BBI3@$7FH;O53H;CBC8$;HM&LD7B6;HIF7G 48-49 &L:;4;H&`%&&%$7FH;O53H;CBG 50-51 36-47&L:;4;H$`"BBI3@$7FH;O53H;CBC8+3MC$@;B;53B6CH:7F Private Expenditures 24 Discovery Walk 25Riverfront Reimagined 26Soldiers Memorial Field West Transit Village 27 The Development Plan and any proposed changes to the Development Plan. "5HI3@5CGHG3B6OB3B5;B9 sources, including the amount paid under Minnesota Statutes Section 469.47, and required local contributions of projects completed in the previous two years by the DMCC, the City, County, and Mayo Clinic. Debt service schedules for all outstanding obligations of the City for debt issued for projects ;67BH;O76;BH:7D@3BZ Progress of projects ;67BH;O76;BH:7 Development Plan. Estimated costs and OB3B5;B9GCIF57G8CF projects to be started in the next two years by the DMCC, the City, County, and Mayo Clinic. 01 The State of Minnesota’s DMC Act J;IM?J;KL>7LQN;;D;E;FLK8;?F9DM:;: ?F L>?K7FFM7DJ;HGJL\ The Development Plan and changes to the Development Plan. 02 The Destination Medical Center initiative was established by the Minnesota Legislature in 2013 to ensure that Rochester could continue supporting Mayo Clinic’s global leadership in patient care, research, and innovation. At the time Mayo Clinic was DC;G768CFG;9B;O53BH9FCKH:[4IH-C5:7GH7FeG;B8F3GHFI5HIF7[ transit, streets, utilities, and the broader civic experience was not equipped to keep pace. The Legislature responded by creating a F;O EG:;D G< KL7L;`DG97D`HJ?N7L;H7JLF;JK>?H^ 0J?N7L; ?FN;KLE;FLOGMD: D;7:]HM8D?9 ?FN;KLE;FLOGMD: <GDDGO] 7F:7DD HM8D?9 <MF:?F= OGMD:8;H;J<GJE7F9;_87K;:7F: <MDDPLJ7FKH7J;FL\ DMC is not a cookie-cutter development program. DMC leverages Rochester’s position as "E;J?97aK$?LP<GJ);7DL>[47B7OH;B93@@+;BB7GCH3BGZ City of Rochester, Olmsted County, and Mayo Clinic leaders believed that this anticipated growth 5CI@6[;8DFCD7F@M@7J7F3976[DCG;H;J7@M47B7OH\ The state’s position in the global health and wellness economy Minnesota residents and taxpayers Minnesota’s largest employer The experience of patients, families, working professionals, and visitors who come to Rochester from around the world 03 How DMC Works: The Model and Performance-Based State Funding %-$aK '?F7F9?F= -G:;D ?K 4F?IM; ?F -?FF;KGL7 The City of Rochester and Olmsted County make local public contributions .H3H78IB6;B9;GF7@73G76CB@M38H7FDF;J3H7;BJ7GHA7BH;GJ7F;O764M DEED, ensuring taxpayer investments follow real, measurable economic activity The DMCC Board of Directors, with a plurality of State-appointed members, and the Rochester City Council approve all public infrastructure projects; the City delivers them; and DEED maintains State oversight " TR_6;7J 0M8D?9`0J?N7L; 07JLF;JK>?H The partners—State of Minnesota, City of Rochester, Olmsted County, and Mayo Clinic—each play a distinct role, with the DMCC and City Council DFCJ;6;B9O6I5;3FMCJ7FG;9:H3B6GHF3H79;56;F75H;CB " 0D7F %;K?=F;: <GJ (JGOL> State law requires a long-term Development Plan that guides investment strategy, infrastructure, mobility, housing, and economic development 5>7L %-$ )7K %;D?N;J;: 2G '7J fRZX4;@@;CB;B57FH;O76DF;J3H7;BJ7GHA7BH;BH:7%+$%;GHF;5H More than $150 million in public infrastructure, including Heart of the City, Link BRT, Soldiers Field, Discovery Walk, and district wide street and utility upgrades Thousands of new jobs in healthcare, hospitality, research, technology, and small business Historic growth in tax base, housing, and commercial development )BG:CFH[%+$:3GDFCJ7BH:7*79;G@3HIF7eG:MDCH:7G;G\"6;G5;D@;B76[ performance-based partnership can generate transformational growth while protecting taxpayers and strengthening Minnesota’s economy. 04 The 2025 Development Plan Update—Now Adopted. 5>P7F4H:7L; 57K.;;:;: Beyond the statutory requirement, the past year has proven to be a critical time to update DMC strategies. Mayo Clinic launched Bold. Forward. Unbound. in Rochester, the largest capital expansion in Minnesota’s history. Rochester’s population and employment grew at a State-leading pace. Local and statewide partners expanded their work on innovation, talent, and business development. Public infrastructure delivery accelerated, including Link Bus Rapid Transit, and the 6th Street Bridge, Neighborhood Safety & Riverfront Improvements Project. Accelerate Health Innovation Design for Well-Being Drive Purposeful Growth The Framework Guiding DMC’s Next Phase. Anchored by Mayo Clinic and strengthened through partnerships with DEED, Medical Alley, Greater MSP, the University of Minnesota, BioLabs -C5:7GH7F3B6CH:7FG[H:7D@3B36J3B57G;BBCJ3H;CB4MDF;CF;H;N;B9\ This positions Minnesota as a global competitor in med-tech, bio-innovation, AI-enabled care, and digital health—industries that employ Minnesotans from every region. Shared R&D infrastructure Startup and commercialization support Tech and biotech cluster growth Talent pipelines linked to statewide institutions "H3;@CF763DDFC35:HC-C5:7GH7FeG4I;@H7BJ;FCBA7BHH:3H;BH79F3H7G\ This is one way Rochester lives its identity as "E;J?97aK$?LP <GJ );7DL>\ Mobility and transit (Link BRT and safe multimodal corridors) High-quality public spaces (Heart of the City, Discovery Walk, Soldiers Memorial Field) Housing access and neighborhood connections Resilience, safety, and public health World-class streets, parks, and amenities &BGIF7GDF76;5H34@7[3@;9B76[GIGH3;B34@767J7@CDA7BHH:FCI9:\ Purposeful growth keeps Rochester competitive and stable, reinforcing the State’s investment. Sequenced public infrastructure Coordinated capital planning with Mayo Clinic’s Bold. Forward. Unbound. in Rochester Workforce and housing strategies Market-facing clarity for developers and employers .HFCB99CJ7FB3B573B6HF3BGD3F7BHOB3B5;3@A3B397A7BH 05 Why This Matters for Minnesota—Not Just Rochester /:7 ID63H76 D@3B A3?7G 7LD@;5;H K:3H :3G 475CA7 ;B5F73G;B9@M 5@73F\ 1G9>;KL;JaK =JGOL> ?K 7 KL7L;O?:; 7KK;L. The updated plan guides DMC capital investment, economic development strategy, innovation initiatives, infrastructure delivery, and statewide partnerships. 2L7L;O?:; &9GFGE?9 1;LMJF 2L7L;O?:; 5GJC<GJ9; /HHGJLMF?L?;K The independent analysis prepared as part of the update shows that DMC has generated more than $1.6 billion in estimated new net tax revenue, much of it accruing to the State of Minnesota. This is not because of run-of-the mill economic activity—it is because DMC 3AD@;O76 3B 3GG7H H:3H 7L;GHG CB@M ;B +;BB7GCH3[ 3B6 CB@M ;B -C5:7GH7FZ Mayo Clinic is Minnesota’s largest private employer, with approximately 50,000 Minnesota-based employees. Jobs created through DMC—in health care, research, technology, construction, hospitality, engineering, and small business—draw workers from every region of the state. 2L7L;O?:; *F:MKLJP "D?=FE;FL Medical Alley, DEED, Greater MSP, the University of Minnesota, and others all engage with DMC because, together, we strengthen ;B6IGHF;7G K:7F7 +;BB7GCH3 @736G B3H;CB3@@M\ A76`H75:[ 4;CH75:[ health care, and digital health. A Nationally Competitive Platform Minnesota Can Claim Just as Silicon Valley represents tech and Nashville represents music, the DMC Development Plan positions Rochester as the 97H?L7D G< 7F ?F:MKLJPa :73@H: ;BBCJ3H;CBaH:3H 47B7OH G H:7 7BH;F7 GH3H7Z This is why the updated plan matters to legislators whose constituents A3 M B7J7F J ;G;H -C5:7GH 7F\ 3 >; ?F?L?7L?N ; KLJ;F=L>;FK -?FF;KGL7 aK ;9GFGE?9 ;F=?F ;\ The Development Plan as a Long-Term Commitment DMC remains on track to achieve its long-term workforce, investment, tax base, and experience goals The performance-based model is working State investment is generating statewide value Rochester continues to be the global standard-bearer for health and innovation 0606 Progress of projects *%&.3*5&% *. 3)& Development Plan. According to the Act, a public infrastructure project must be approved by the DMCC before it is proposed to the City. The DMCC must review the project proposal for consistency with the Development Plan. Since the adoption of the Development /B5DED"FH=BWX`WUVZ`5DKC69HE:FHE?97JI have been approved by the DMCC and the City. A map of the DMC Development District and key projects is included as Exhibit A. A summary of major approved projects in the DMC Development District is attached as Exhibit B. 39M=I<JE<=;<B=;<JJ<9FHE;H9II=DWUWZ of certain approved projects: 07 TRTX_TRTY$7H?L7D *EHJGN;E;FL0D7F XL>2LJ;;L#J?:=;].;?=>8GJ>GG:27<;LP c1?N;J<JGFL*EHJGN;E;FLK0JGA;9L %GOFLGOF*F<J7KLJM9LMJ;"D?=FE;FL %GOFLGOF0JGH;JLP0J;K;JN7L?GF -G8?D?LP 24 2026-2027 CAPITAL IMPROVEMENT PLAN (CIP) In addition to the previously noted projects, the DMCC and City continue to adopt a GHF3H79;5$3D;H3@)ADFCJ7A7BH,@3B^b$),c_Z/:7$),;G;BH7B676HCGIDDCFH\H:7 completion of prior-approved infrastructure and transit projects, the implementation of successful plans and programs; and the undertaking of new public infrastructure and private development projects. In 2025, the DMCC and City adopted a two-year, rather than annual, budgeting framework, which currently applies to 2026-2027. This capital and operating budget may be amended by the DMCC and City Council as investment CDDCFHIB;H;7G[GHF3H79;5DFC9F3AG3B6D@3BB;B9[3B653D;H3@PCKGF7EI;F7Z 08 DMC funding remains available to advance previously approved projects, including strategic development, riverfront pre-development, St. Marys Place sub-district public realm, a thermal energy network, multi-modal streets, and implementation of Rochester’s Downtown Task Force recommendations. 09 /:7%+$$),F7P75HGCB@M3DCFH;CBC8H:7BIA47F3B6HMD7C8DI4@;53B6DF;J3H7 development projects in the DMC district. Early strategic DMC investments in public infrastructure and commercial and residential projects successfully established Rochester as a destination for investment and development. "66;H;CB3@@M[%+$DFC=75HG5CBH;BI7HC47B7OH8FCA$CAAIB;HM$C`67G;9B[3 process that recruits those most impacted by a project to assist in advocating for underrepresented communities and perspectives. Other projects, which are now proceeding without the need for public DMC support, include workforce and market-rate housing, world-class medical care and research facilities, retail and dining spaces, small business improvements, and more. In addition to these transformative capital investments, the City and the DMC EDA have successfully secured economic revitalization, sustainability, workforce, and equitable community-building grants, including through DEED’s Main Street Economic Revitalization Program, Bloomberg Philanthropies Global Mayors Challenge, and the McKnight Foundation. These grant awards, secured by the DMCC’s partners, support and augment the advancement of DMC priorities. 6TH STREET BRIDGE, NEIGHBORHOOD SAFETY & RIVERFRONT IMPROVEMENT PROJECT 10 /:7.;LH:.HF77H#F;697:3G@CB9477B;67BH;O763G3?7M@;B?;B%+$eG%CKBHCKB Waterfront and Connectivity Framework, which envisions continuous access and activation along the Zumbro River corridor. /F9; 9GEHD;L;]L>; 8J?:=; O?DD^ Expand access to neighborhoods, riverfront and key destinations Provide transportation access with walking and biking infrastructure )AD@7A7BHG387HM;ADFCJ7A7BHGHCA3B397HF38O53B6GD776;B9IG;B9 Complete Streets design )ADFCJ72IA4FC-;J7F3557GGK:;@7A3;BH3;B;B9PCC6DFCH75H;CB Connect to Link BRT east terminus /:74F;697K;@@873HIF76;J;676HF38O5@3B7G[676;53H76BCB`ACHCF;N76D3H:G[3B6 underpass trail connections that expand safe river access. Public seating and landscape areas will draw on native plant species to maintain ecological integrity and support habitat for river wildlife. +;P <G9MK7J;7K<GJ TRTW`TRTX?F9DM:;^ '@CC6,FCH75H;CB3B6,7FA;HH;B9\$CCF6;B3H;CBK;H:H:70Z.Z"FAM$CFDGC8 Engineers (USACE) and the Federal Emergency Management Agency ^'&+"_HC7BGIF7PCC6K3@@AC6;8;53H;CBGA3;BH3;BDFCH75H;CBK:;@7 enabling under-bridge trail connections. ,FCD7FHM"5EI;G;H;CB3B6&BJ;FCBA7BH3@-7J;7K\"5EI;G;H;CB35H;J;H;7G3B6 NEPA / railroad approvals are underway. ,I4@;5`-73@A3B6-;J7F8FCBH%7G;9B\-7OB7A7BHC89F77BGD357K7GHC8H:7 former dairy site, native plant restoration, and under-bridge trail linkages consistent with community input prioritizing safety and access. "7GH:7H;5&B9397A7BH\SQSUDI4@;5G7GG;CBG366F7GG764F;6973F5:;H75HIF7[ lighting, and landscape design. ';B3@D@3BG3B6$CBGHFI5H;CB\';B3@D@3BG3F73BH;5;D3H764M"DF;@SQSV[3B6 construction is expected to begin in fall 2026. The $35.8 million project combines several public infrastructure funding sources, including DMC funds, MnDOT funds, and U.S. DOT funds. 11 DOWNTOWN INFRASTRUCTURE ALIGNMENT & WAYFINDING %/5.3/5.*.'1"2314$341& ",*(.-&.3 Mayo Clinic’s Bold. Forward. Unbound. in Rochester represents one of the most G;9B;O53BHDF;J3H767J7@CDA7BH788CFHG;B+;BB7GCH3eG:;GHCFMa3ACF7H:3BfU billion investment that will transform Mayo’s Rochester campus over the next decade. The multi-phase plan includes the replacement of existing facilities, new clinical and logistics buildings, and substantial upgrades to public streets, utilities, and the pedestrian environment. The Downtown Infrastructure Alignment program coordinates related public improvements within and surrounding the Mayo Clinic campus construction zone, including the adjacent neighborhoods. *LK HMJHGK; ?K LG7D?=F$?LP7F:-7PG$D?F?9 97H?L7D HJGA;9LKLG;FKMJ;^ Continuity of mobility and access for patients, employees, and residents during construction (;9:`EI3@;HMDI4@;5F73@A67G;9BH:3HF7P75HG%+$GH3B63F6GC87LD7F;7B57 and accessibility Long-term reinvestment in connections between the Mayo Clinic campus, Discovery Walk, and nearby neighborhoods. In 2025, a vision and design framework was developed, resulting in a set of public realm priorities for downtown and adjacent neighborhoods. With that work completed, the 2026–2027 DMC Capital Improvement Plan allocated approximately $38 million for extraordinary public infrastructure projects adjacent to Bold. Forward. Unbound. in Rochester. This funding is intended, in part, to allow for “dig once” public infrastructure investment strategy, avoiding additional near-and medium-term disruption to residents, businesses, and downtown visitors. 5"6'*.%*.( The commencement of major construction in the DMC development district, including LINK bus rapid transit and Mayo Clinic’s Bold. Forward. Unbound. in -C5:7GH7FDFC9F3A[K;@@5F73H78F7EI7BH@M7JC@J;B9D767GHF;3BK3MOB6;B9 5;F5IAGH3B57G8CF7AD@CM77G[F7G;67BHG[D3H;7BHG[3B6J;G;HCFGZ)BH7F;AK3MOB6;B9 assets and strategies are being developed and deployed by the City of Rochester, Mayo Clinic, the DMC Economic Development Agency, the Rochester Downtown Alliance, and others, to ensure that the downtown can be successfully navigated during this period. The 2026-2027 DMC CIP allocates up to $100,000 per year HC;BH7F;AK3MOB6;B93G6CKBHCKB-C5:7GH7F34GCF4G this multi-generational public-private investment. 12 DOWNTOWN PROPERTY PRESERVATION The DMC Development Plan “states the preservation of historic landmarks and districts is an important part of a city’s historic fabric … As the DMC implementation process moves forward, we recommend the EDA work with federal agencies, state agencies and local organizations to evolve strategies and programs to incentivize historic preservation [in the] DMC District.” On January 22, 2024, the City established a thirty-two-property, commercial historic district located within the DMC District. On May 23, 2024, the DMCC approved the allocation funding for public infrastructure projects within the commercial historic district. Since then, more than a dozen properties have been approved by the DMCC resulting in preservation, improvement, adaptive reuse, and substantial private investment. Progress continued on the approximately three-mile bus rapid transit project known as “Link BRT.” In 2025, major construction and procurement efforts 5CBH;BI76[ ;B5@I6;B9 H:7 3K3F6;B9 8CIF C8 OJ7 A3=CF 4;6 D35?397G] 67@;J7FM C8 H:7 initial set of rapid-transit buses; necessary property acquisition and right-of-way improvements; and ongoing communication and construction mitigation strategies to support commerce and visitation along the rapid transit corridor and adjacent service areas. Rapid transit service is expected to commence in late 2027. MOBILITY 1313 Service early in the morning to late at night. Service every 5 minutes during rush hours & 10 minutes other times. Fare-free service for all riders. Fully electric bus P77H K;H: on-route chargers. Stations with shelter, heating, light, and real-time signage. Actual Costs and Financing Sources "$34#, $/232 #.% 5.#.$*.( 2/41$&26 *.$,4%*.( 3)& #-/4.3 0#*% 4.%&1 Minnesota Statutes, Section 469.47, and required local contributions of projects completed in the previous two years by the DMCC, City, Olmsted County, and Mayo Clinic. 2<9"7JH9GK=H9IJ<5J5D5DDK5B79HJ=P75J=EDE:FH=L5J9=DL9IJC9DJ6O,5OE$B=D=7 5D8EJ<9HFH=L5J9=DL9IJEHI69C589JE%&&%6O"FH=BVE: 957<O95H`5D8%&&% CKIJ79HJ=:OJ<5J gWUU`UUU`UUUE: FH=L5J9=DL9IJC9DJ<5I699DC58969:EH95DO IJ5J9:KD8=D;C5O69F5=8_2<=IJ<H9I<EB8M5IC9J5D89N799898=DWUV\_2<9 7KCKB5J=L9JEJ5B5CEKDJE:79HJ=P98,5OE$B=D=75D8EJ<9HFH=L5J9 =DL9IJC9DJIJE 85J9=IgV`\^W`][^`[X\_Y]_ 14 )B5CAD@;3B57K;H:+;BB7GCH3.H3HIH7G.75H;CBTVYZTW[H:73BBI3@57FH;O53H;CB of Mayo Clinic and other private investment that was submitted to DEED on March 27, 2025 is attached as Exhibit C. Also, attached as Exhibit D, is the annual 57FH;O53H;CBC8$;HM7LD7B6;HIF7G[K:;5:K3G;B;H;3@@MGI4A;HH76HC%&&%CB+3F5:RY[ 2025, and subsequently revised on May 28, 2025. DEED conducted its own audit DFC57GGC8H:757FH;O767LD7B6;HIF7G3B6H:7B3DDFCJ76H:77LD7B6;HIF7GZ/:7%&&% 57FH;O53H;CBG3F73HH35:763G&L:;4;H&Z)B366;H;CB[K7C887FH:78C@@CK;B9;B8CFA3H;CB\ 15 $85,659,020 Through December 31, 2025, General State Infrastructure Aid in the amount of $186,078,867 , and State Transit Aid in the amount of $22,415,223, has been received. Through December 31, 2025, Olmsted County has contributed $25,500,000. $25,500,000 Actual costs paid by the City from commencement through December 31, 2025 have totaled $78,665,680.65, based on year-end unaudited costs. The funding source was initially City internal borrowing, which is being repaid, along with the costs for new projects and initiatives, by the City’s 0.25% DMC sales tax. The City has also issued capital debt for a parking ramp in the district. $78,665,680 15 Estimated Costs and Financing Sources for Projects to be started in the next two years by the DMCC, City, County, and Mayo Clinic The Development Plan sets forth a framework and examples of projects that may be considered for funding in the next several years. Each project will be approved on an individual basis. See also the report H9IFEDI9JEIJ5JKJEHO9B9C9DJIcWd5D8cXd_ 16 Rendering of planned new Mayo Clinic facilities in downtown Rochester BOLD. FORWARD. UNBOUND. IN ROCHESTER Project complete by 2030 $5 billion investment $500 million in sustaining projects 2.4 million square feet of new space First buildings open in 2029 Highlights of the project: 17171717 18 BioLabs In October 2025, BioLabs Rochester announced a new 16,000-square-foot facility in Two Discovery Square. Developed in collaboration with Mayo Clinic, Destination Medical Center (DMC), the City of Rochester, and Mortenson, with JLL supporting H:7@73G;B9[3B6G@3H76HCCD7B;B@3H7SQSV[H:7-C5:7GH7FG;H7A3F?G#;C*34GeOFGH @C53H;CB;BH:7+;6K7GH3B6K;@@C887FP7L;4@7[HIFB?7M@343B6C88;57GD3578CF early-stage biotech and HealthTech companies. BioLabs Rochester will enable 5CAD3B;7GHCG53@778O5;7BH@MK;H:CIH@3F97ID8FCBH;BJ7GHA7BHG;B@34 infrastructure. Startups will gain access to state-of-the-art lab equipment, on-site support services, and a vibrant innovation community. The project is expected to attract global innovators and investors looking to engage with Minnesota’s MedTech leadership—centered in Medical Alley, the world’s most concentrated cluster of medical device and health innovation companies. 19 DMC CAPITAL IMPROVEMENT PLAN NEW INFRASTRUCTURE PROJECTS PRIOR APPROVED INFRASTRUCTURE PROJECTS PRIOR APPROVED TRANSIT PROJECTS OPERATIONS Downtown Public-Private Infrastructure Investment Alignment )BH7F;A13MOB6;B9`%CKBHCKB$CBGHFI5H;CB LINK Bus Rapid Transit 2026 gV^`V]Z`ZUU 2M8LGL7D^ g]`[U]`WW[ DMCC Corporation DMC EDA City DMC Project Management City DMC Administration 6th Street Bridge + Connectivity gW`ZUU_UUU Strategic Development 2027 Source STATE DMC AIDgV^`V]Z`ZUU gVUU`UUU gVUU`UUU gX`UUU`UUU gX`UUU`UUU bTT]TZW]WRR bTT]TZW]WRR 2M8LGL7D^bT]WRR]RR gV\`WXU`UZ^COUNTY DMC TRANSIT AID gW`YZ[`UUX 2M8LGL7D^bSS]RXV]TT[bSY]TUR\RW[ gWW^`Z[[ gWXU`U[[City DMC Aid City DMC AidgX`VXX`][Y gV`ZY]`[VU gV`[XV`U[^City DMC Aid gVUU`UUU gVUU`UUU City DMC Aid gX`W^U`ZZ\ 2M8LGL7D^bW]RST]RVR bW]TWS]X[T TOTAL:$40,861,769 $44,767,251 STATE DMC AID STATE DMC AID STATE DMC AID STATE DMC TRANSIT AID Debt service schedules for all outstanding obligations of the City for debt issued for projects *%&.3*5&% *. the plan 20 203521 Post-Sale $21,265,000 Rochester, Minnesota General Obligation Tax Increment Revenue Bonds, Series 2017B (Parking Ramp Project) DEBT SERVICE SCHEDULE Total P+IInterestCouponPrincipalDate ----02/01/2018 540,639.84540,639.84--08/01/2018 02/01/2019 550,000.00 5.000%381,628.13 931,628.13 367,878.13367,878.13--08/01/2019 02/01/2020 735,000.00 5.000%367,878.13 1,102,878.13 349,503.13349,503.13--08/01/2020 02/01/2021 775,000.00 5.000%349,503.13 1,124,503.13 330,128.13330,128.13--08/01/2021 02/01/2022 815,000.00 5.000%330,128.13 1,145,128.13 309,753.13309,753.13--08/01/2022 02/01/2023 855,000.00 5.000%309,753.13 1,164,753.13 288,378.13288,378.13--08/01/2023 02/01/2024 895,000.00 5.000%288,378.13 1,183,378.13 266,003.13266,003.13--08/01/2024 02/01/2025 940,000.00 5.000%266,003.13 1,206,003.13 242,503.13242,503.13--08/01/2025 02/01/2026 990,000.00 5.000%242,503.13 1,232,503.13 217,753.13217,753.13--08/01/2026 02/01/2027 1,035,000.00 5.000%217,753.13 1,252,753.13 191,878.13191,878.13--08/01/2027 02/01/2028 1,090,000.00 2.000%191,878.13 1,281,878.13 180,978.13180,978.13--08/01/2028 02/01/2029 1,110,000.00 2.250%180,978.13 1,290,978.13 168,490.63168,490.63--08/01/2029 02/01/2030 1,135,000.00 3.000%168,490.63 1,303,490.63 151,465.63151,465.63--08/01/2030 02/01/2031 1,170,000.00 2.750%151,465.63 1,321,465.63 135,378.13135,378.13--08/01/2031 02/01/2032 1,200,000.00 2.750%135,378.13 1,335,378.13 118,878.13118,878.13--08/01/2032 02/01/2033 1,235,000.00 2.875%118,878.13 1,353,878.13 101,125.00101,125.00--08/01/2033 02/01/2034 1,270,000.00 2.875%101,125.00 1,371,125.00 82,868.7582,868.75--08/01/2034 02/01/2035 1,305,000.00 3.000%82,868.75 1,387,868.75 63,293.7563,293.75--08/01/2035 02/01/2036 1,345,000.00 3.000%63,293.75 1,408,293.75 43,118.7543,118.75--08/01/2036 02/01/2037 1,385,000.00 3.000%43,118.75 1,428,118.75 22,343.7522,343.75--08/01/2037 02/01/2038 1,430,000.00 3.125%22,343.75 1,452,343.75 $29,450,705.47$8,185,705.47-$21,265,000.00Total SIGNIFICANT DATES Dated Date...........................................................................................................................................................................11/16/2017 Delivery Date.......................................................................................................................................................................11/16/2017 First Ccoupon Date................................................................................................................................................................8/01/2018 Yyield Statistics Bond Year Dollars................................................................................................................................................................$254,390.21 Aaverage Life.........................................................................................................................................................................11.963 Years Aaverage Coupon..................................................................................................................................................................3.2177754% Net Interest Cost (NIC).........................................................................................................................................................2.7176241% True Interest Cost (TIC).......................................................................................................................................................2.6417803% Bond Yield for Arbitrage Purposes.......................................................................................................................................2.6130470% All Inclusive Cost (AIC)........................................................................................................................................................2.6889724% IRS Form 8038 Net Interest Cost..................................................................................................................................................................2.6154299% Weighted Average Maturity..................................................................................................................................................11.612 Years MAP OF DMC DEVELOPMENT DISTRICT AND KEY PROJECTS 22 DISCOVERY WALK Discovery Walk is a four-block linear parkway along 2nd Avenue SW. It connects Annenberg Plaza to Soldiers Field Memorial Park and functions as an extension of the Heart of the City public realm project. Discovery Walk is designed to feel like a park and to promote health, wellness, and innovation by creating a high amenity pedestrian 7LD7F;7B57K:;@73@GCA3;BH3;B;B9P7L;4;@;HM8CF4;?73B6J7:;5I@3F3557GG3GK7@@3G5;J;5 events and future development. It also serves as a catalyst for future private development in Discovery Square. Construction was substantially completed in 2024 and, in addition to G;9B;O53BHID9F367G3B6IDG;N;B9C847@CK`9F367G7K7F3B6GHF77H;B8F3GHFI5HIF7H:3H53B accommodate future development, includes a pedestrian ramp, pedestrian lighting art, and a snow melt system. 24 RIVERFRONT REIMAGINED REBBEM=D;5$=JOb=D=J=5J98IC5BB5H95FB5DIJK8O:EH5FEHJ=EDE:J<9[Uh57H95H95 located southeast of the downtown core on the Zumbro River, the City continues JEB958 89L9BEFC9DJE:J<=Ic:HEDJ8EEHdJEJ<9H=L9HJE5;5J9M5O=DJE8EMDJEMD_ )D*KBOE:WUWW`J<9$=JO58EFJ985FH9:9HH98FB5DJE;K=89J<9JH5DI:EHC5J=EDE: J<9H989L9BEFC9DJ5H95JE5:KJKH9C=N98bKI9D9=;<6EH<EE8_)D"K;KIJE:WUWW` J<9$=JOM5I5M5H8985:989H5B0")1&;H5DJ=DJ<95CEKDJE:gV^_^C=BB=ED:EHJ<9 1=NJ<1JH99J#H=8;97HEII=D;J<94KC6HE0=L9H_)DWUWZ`%,$MEHA98=D collaboration with City staff to select the consultant team and will continue to participate in the planning and development process, focusing on the public realm experience and linkages between this site and the rest of the district. Additionally, several pre-development capital planning and investment efforts are completed or underway, including: the development of a Request for Proposals for the redevelopment of City-owned Tiverfront sites; new public artwork; and the award of a Minnesota Pollution Control Agency (MPCA) grant to support the construction of a new plaza Sn the Zumbro Riverfront Trail. The project includes a 6=A9 DE89`I95J=D;`56=A9PNb=J IJ5J=ED`5D856=Eb:=BJ9H5H95JEC5D5;9 IJEHCM5J9H_ 25 1EB8=9HI'=9B87EDJ5=DIVZU57H9IE: memorials and active recreation space, =D7BK8=D;Y`UUU:99JE: H=L9H:HEDJ_2<9 northern portion lies within the DMC district and is featured in the DMC Development Plan as an anchor of the Education and Recreation subdistrict. This project also maximizes connections to other key features of the DMC district: Discovery Walk connects the Heart of the City to Soldiers Field and the Sixth Street Bridge will link Soldiers Field to the downtown waterfront area. The public realm improvements within the district feature an aquatics center, with lap pool, bath house, wading pool, and outdoor seating, new basketball courts, adding a trail through the northeast corner of the park, nature play area, community shelter, public restrooms, and new public parking. Construction was completed in WUWYH9IKBJ=D;=D5H97EH8DKC69HE: visits by community members. SOLDIERS MEMORIAL FIELD 26 WEST TRANSIT VILLAGE 27 The West Transit Village is a key element of enabling Link Bus Rapid Transit to 8IB5H;CB3B6DFCJ;673B7LD7F;7B5747B7OH;B9H:7%+$J;G;CBC8-C5:7GH7F3G3 world-class destination. A master plan has been developed by the development team in close coordination and partnership with Mayo Clinic, DMC, and the City of Rochester. More than 42 different major site development components are being coordinated between these partners, setting the conditions for comprehensive public and private site development. Currently one major private project, a Mayo Clinic-owned parking ramp, is underway and another, a private senior housing development, is anticipated. Critical infrastructure is expected to be in place by the planned opening of the Link Bus Rapid Transit line in late 2027. SUMMARY OF MAJOR PROJECTS 34 2428 24 HOTEL INDIGO RENOVATIONS 2<9(EJ9B)D8=;E=DLEBL98J<9H9DEL5J=EDE:5D9N=IJ=D;V\WbHEEC (EB=85O)DD`BE75J98=DJ<9c%EMDJEMD35J9H:HEDJdIK68=IJH=7J5I 89I7H=698=DJ<9%9L9BEFC9DJ/B5D_"FFHEL98=DWUV]`J<9gYW C=BB=EDH989L9BEFC9DJ=D7BK898J<9588=J=EDE:XX`UUUIGK5H9:99JJE J<99N=IJ=D;VVY`ZUUIGK5H9:99J5D8FHEL=8985FFHEN=C5J9BOVVV 7EDIJHK7J=ED?E6I5D8W]D9MF9HC5D9DJ?E6I_.F9D=D;E: J<9D9M <EJ9B5D8H9IJ5KH5DJE77KHH98=DWUWU_ 29 2<9(O5JJ(EKI9FHE?97J=IBE75J98=DJ<9c$9DJH5B1J5J=EDd subdistrict as described in the Development Plan. Approved in WUV]`J<9gYYC=BB=EDFHE?97J=D7BK89I5D9=;<JbIJEHO`V\WbHEEC 9NJ9D898bIJ5O<EJ9B`5D8FHEL=8985FFHEN=C5J9BOWZ\ 7EDIJHK7J=ED?E6IM<=B97H95J=D;X]F9HC5D9DJ?E6I_ 2<=IFHE?97JM5I7ECFB9J98=DWUWV_ HYATT HOUSE +E75J985JWU^ZJ<1J 13`J<=I9NF5DI=EDE:J<9%,$6=EbC98=75B` H9I95H7<`5D8J97<DEBE;O=DDEL5J=ED75CFKI=I5VWZ`UUUIGK5H9:EEJ bioscience building. It features tech-forward tenant spaces designed M=J<Q9N=6B9B5675F57=JO5D8B958=D;b98;9J97<DEBE;O_$EDIJHK7J=ED M5I7ECFB9J98=DWUWW_ TWO DISCOVERY SQUARE 30 25 2<9#HOAED#HE58M5O=IBE75J985JYUV#HE58M5O"L9-_)J=I5 C=N98bKI9`C=N98b=D7EC95F5HJC9DJ6K=B8=D;7EDI=IJ=D;E:V]U workforce housing apartments, providing rent at varying levels. $EDIJHK7J=EDM5I7ECFB9J98=DWUWX_ BRYK ON BROADWAY The Hilton Rochester Mayo Clinic Area (formerly known as the c#HE58M5O5J$9DJ9HdFHE?97Ja=IBE75J98=DJ<9c%EMDJEMD 35J9H:HEDJdIK68=IJH=7J5I89I7H=698=DJ<9%9L9BEFC9DJ/B5D_ "FFHEL98=DWUVZ`J<=IX\V`UUUIGK5H9:EEJC=N98bKI9FHE?97J =D7BK89I5W[YbHEEC<EJ9B`H9IJ5KH5DJI`H9J5=BIF579`5IAOM5O 7EDD97J=ED`5D85PL9bB9L9BFK6B=7F5HA=D;H5CFM=J<ZYU FK6B=7IF579I5D8^UFH=L5J9IF579I_2<9H9IJ5KH5DJI5D8<EJ9B EF9D98=DWUV^_ HILTON MAYO The Berkman Apartments (formerly known as the “Alatus /HE?97Jda=IBE75J98EDWD81JH99J13=DJ<9c15=DJ,5HOId subdistrict as described in the Development Plan. Approved in WUV[`J<=IC=N98bKI9FHE?97J=DLEBL98J<97EDIJHK7J=EDE:5D 5FFHEN=C5J9BOXZU`UUUIGK5H9:EEJ`J<=HJ99DbB9L9B7ECC9H7=5B 5D8H9I=89DJ=5B7ECFB9N_)J=D7BK89IXZUC5HA9JbH5J9H9DJ5BKD=JI` 7H95J985D9IJ=C5J98WXZ7EDIJHK7J=ED?E6I5D89=;<J F9HC5D9DJ?E6I`5D8;9D9H5J985JEJ5BE:gVVZC=BB=ED=DFH=L5J9 =DL9IJC9DJ_2<9#9HAC5DM5I7ECFB9J98=DWUWU. THE BERKMAN 26 HOTEL INDIGO RENOVATIONS 31 ONE DISCOVERY SQUARE One Discovery Square (formerly known as Discovery Square Phase One) is ED'=HIJ"L9DK913=DJ<9c%=I7EL9HO1GK5H9dIK68=IJH=7J5I89I7H=698=D J<9%9L9BEFC9DJ/B5D_"FFHEL98=DWUV\`J<=I5FFHEN=C5J9BOgXZC=BB=ED bio-science building is a center of innovation and is housing companies whose mission is to accelerate bioscience and technology discoveries to C5HA9J_2<9:EKHbIJEHO`]^`UUUIGK5H9:EEJ6K=B8=D;=D7BK89IE:P79`5D8 7EBB56EH5J=L9IF579I_"IDEJ9856EL9`J<=IFHE?97J=IJ<9PHIJF<5I9E: achieving a key component of the Development Plan: providing jobs in the 6=EbI7=9D79I97JEH_.D9%=I7EL9HO1GK5H9M5I7ECFB9J98=DWUV^_ WELLS FARGO RENOVATION 2<=IFHE?97J=I5H9DEL5J=EDE:5^W`UUUIGK5H9:EEJ9N=IJ=D; 6K=B8=D;`BE75J98=DJ<9c(95HJE:J<9$=JOdIK68=IJH=7J5I89I7H=698 =DJ<9%9L9BEFC9DJ/B5D_"FFHEL98=DWUV]`J<=IFHE?97J=I5 catalyst for the public realm in the Heart of the City subdistrict and includes connections to the street and pedestrian skyway. The H9DEL5J=ED<5IC5895FFHEN=C5J9BOWX`UUU588=J=ED5BIGK5H9:99J E:7ECC9H7=5BEHE:P79IF5795L5=B56B9_2<9FHE?97J7H95J985D 9IJ=C5J98XU7EDIJHK7J=ED?E6I5D8FHEL=898VVZF9HC5D9DJ?E6I_ 2<=IFHE?97JM5I7ECFB9J98=DWUWU_ THE MAVEN ON BROADWAY The Maven on Broadway (formerly known as Urban on First) is BE75J98IEKJ<E:YJ<1JH99J1369JM99DVIJ"L9DK9135D8 #HE58M5O"L9DK95D8=I=DJ<9c%=I7EL9HO1GK5H9dIK68=IJH=7J5I 89I7H=698=DJ<9%9L9BEFC9DJ/B5D_"FFHEL98=DWUV\`J<=I 5FFHEN=C5J9BOgX]C=BB=EDC=N98KI9FHE?97J=D7BK89I5I=NbIJEHO 6K=B8=D;M=J<VZ[C5HA9JH5J9H9DJ5BKD=JI`F5HA=D;`5D8IJH99JB9L9B 7ECC9H7=5B5D8H9J5=BIF579:EH5JEJ5BE:WX]`\UUIGK5H9:99J_ 2<9,5L9DED#HE58M5OM5I7ECFB9J98=DWUV^. PROJECTS WITHOUT DMC FUNDING 32 CONLEY MAASS BUILDING A renovated historic building featuring a restaurant and space for high-tech companies. The renovation was completed in 2016. 1ST AVENUE FLATS A 68-unit affordable housing building, and all of the units are income-restricted to persons at or below 60% of the area median income opened in 2017. FLATS ON 4TH A six-story mixed-use development consisting of 92 rental apartment units, with 19 units affordable to persons at 50% of the area median income, and 2,300 square feet of retail space opened in 2018. RESIDENCE AT DISCOVERY SQUARE A six-story, mixed use development consisting of 143 rental apartment units, with 20% of the units affordable to persons at 60% of the area median income, and 15,400 square feet of commercial/retail space opened in 2019. HUE APARTMENTS A six-story, mixed use development consisting of 50 rental apartment units and 2,000 square feet of commercial/retail space opened in 2020. TOWNEPLACE SUITES BY MARRIOT A 110 room hotel with two levels of underground parking opened in 2021. LOFTS AT MAYO PARK "OJ7`GHCFM[SY`IB;HA3F?7H`F3H7F7BH3@ apartment project completed in 2017. 501 ON FIRST "OJ7`GHCFM[A;L76`IG767J7@CDA7BH consisting of 84 rental apartment units and 21,000 square feet of commercial/retail spaces opened in 2018. EVEN HOTELS AND STAYBRIDGE SUITES A 246 room dual-branded hotel opened in 2021. UNIVERSITY OF MINNESOTA ROCHESTER STUDENT HOUSING A 400-person-capacity student housing development created via the renovation of a former DoubleTree Hotel opened in 2023. 33 FIRST & BANKS A seven-story, 219-unit rental apartment developed adjacent to Soldiers Memorial Field opened in 2025. EXHIBIT ANNUAL CERTIFICATION OF MAYO CLINIC AND OTHER PRIVATE INVESTMENTS 34 "IJEFH=L5J9 =DL9IJC9DJ79HJ=P75J=EDI`=DWUWZM979HJ=:=985JEJ5BE:gV]Z`ZUV`XVW :EHJ<9O95H9D8=D;%979C69HXV`WUWY`M<=7<=D7BK89IgV\[`WWU`XW[=D,5OE$B=D=7 =DL9IJC9DJI5D8g^`W]U`^][=DEJ<9HFH=L5J9=DL9IJC9DJI_2<97KCKB5J=L9JEJ5BE: ,5OE$B=D=75D8EJ<9HFH=L5J9=DL9IJC9DJIJ<HEK;<WUWY=IgV`\^W`][^`[X\_ $185,501,312 $176,220,326$9,280,986 Private Investments Total InvestmentMayo Clinic Investments 35 36 37 39 40 41 42 43 44 45 EXHIBIT ANNUAL CERTIFICATION OF CITY EXPENDITURES $72,927,104 Total Expenditures CITY OF ROCHESTER’S CERTIFIED EXPENDITURES JUNE 2013 THROUGH DECEMBER 2024 46 47 DEED CERTIFICATIONS EXHIBIT 48 49 5050 5151 June 16, 2025 The Honorable Kim Norton Mayor, City of Rochester 201 4thth Street SE – Room 281 Rochesteter, MN 55904-3708 Dear Mayor Norton: Thank you for submi,ngng the 2024 Cer*%*%caca*on of Contribubu*ons for Des*nana*on Medicalal Centeter (DMC). We are excxciteted to assist with this ini*a*ve to make the Mayo Clilinic, Rochesteter, andnd Minnnnesota a premier medical des*nana*on. Your revised 2024 Cer*%*%caca*on lilisted $5,861,82525.71 in city generalal aiaid contribubu*ons betweeeen JuJuly 1, 20201313 andnd December 31, 2024. You provided a detailed lilis*ngng of 802 expendnditures. These expendnditures consisted of direct DMC expenses paiaid by the city as wewellll as DMC Corpora*on andnd DMC Economic Development Authority expenses paid for by the city. From that lilist, DEED randomly selecteted 19 expenses for review. We reviewed invoices, payments andnd city payroll %)%)es for accuracy andnd eliligibility. Your 2024 Cer*%*%caca*on alalso lilisted $4,895,267 in city transit contribubu*ons betweween JuJuly 1, 2013 andnd December 31, 2024. You provided a detailed lilis*ngng of 217 expendnditures. These expendnditures consisteted of DMC expenses paid by the city for transit projectcts. From that lilist, DEED randomly selecteted 5 expenses for review. We reviewewed invoices, payments andnd city payrollll %les for accuracy and eliligibility. Addi*onalllly, the city provided DEED with an indndependndent third party report from Clili'on Larson Allllen sta*ngng the lalaw andnd procedudures for cerer*#*#yiyingng contribu*ons are beingng follllowewed properly. The amomoununt of your general aiaid contribubu*ons ququ")(%es you for $28,487,678 of general state infrastructure aiaid andnd statete transit aiaid of $5,65050,176. We will be providingng these payments prior to September 1 as mandndated by statutete. Thank you again for your e$orts on this groundbreaking economic development e$ort. Regards, Matt Varilek CoCommmmissioner CC: Pamela Wheeeelock, Chair of Des*nana*on Medical Center Corpora*on Dennis Dahlen, Chief Financiaial O&cer Mayo Clilinic Patrick Seeb, Economic Development Agency Execu*ve Director