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Home My WebLink AboutDMCC Resolution No. 190-2026 (Approving the Five-Year Update to the Development Plan)DESTINATION MEDICAL CENTER CORPORATION RESOLUTION NO. 190-2026 A RESOLUTION APPROVING THE FIVE-YEAR UPDATE TO THE DEVELOPMENT PLAN The following Resolution was offered by Kristin Beckmann, seconded by Kim Norton. BACKGROUND RECITALS A.Pursuant to Minnesota Statutes Section 469.43, the Destination Medical Center Corporation (“DMCC”), working with the City of Rochester (the “City”) and the Destination Medical Center Economic Development Agency (the “EDA”), adopted a Development Plan on April 23, 2015, as amended (the “Development Plan”). Minnesota Statutes Section 469.43, Subdivision 4 requires that the DMCC update the Development Plan not less than every five years. B.Commencing on November 19, 2025, the DMCC made copies of the five-year update to the Development Plan (the “Five-Year Update”) available to the public at the DMCC’s, City’s, and EDA’s offices and on the DMCC’s and City’s websites. C.The Rochester City Council approved the Five-Year Update in a Resolution passed and adopted on January 21, 2026, a copy of which is attached as Exhibit A. D.Following multiple public meetings and careful review of written comments, public testimony, comments from the City of Rochester, and endorsement from the EDA, the DMCC makes the following Resolution. RESOLUTION NOW, THEREFORE, BE IT RESOLVED, by the DMCC Board of Directors, that the DMCC adopts the Five-Year Update, attached as Exhibit B and on file with the DMCC, based on the following findings of fact: 1. The Five-Year Update, in conjunction with the Development Plan, provides a framework for implementing the mission of the DMCC. 2. The Five-Year Update comports with the goals and objectives adopted by the DMCC, in Resolution 02-2013, as further detailed in Section 1.1.2 of the Development Plan. 3. The Five-Year Update, together with the Development Plan, provides an outline for the development of the City of Rochester (the “City”) as a destination medical center, and the Five-Year Update is sufficiently complete, including the identification of planned and anticipated projects, to indicate its relationship to definite state and local objectives. 2 4. The proposed development affords maximum opportunity, consistent with the needs of the City, Olmsted County, and the State of Minnesota, for the development of the City by private enterprise as a destination medical center. 5. The proposed development conforms to the general plan for the development of the City and is consistent with the City comprehensive plan. For purposes of this finding, the “proposed development” means the conceptual general framework for development outlined in the Five-Year Update. 6. The Five-Year Update, in conjunction with the Development Plan, includes: a. Strategic planning consistent with a destination medical center in the core areas of commercial research and technology, learning environment, hospitality and convention, sports and recreation, livable communities, including mixed-use urban development and neighborhood residential development, retail/dining/entertainment, and health and wellness; b. Estimates of short- and long-range fiscal and economic impacts; c. A framework to identify and prioritize short- and long-term public investment and public infrastructure project development and to facilitate private investment and development, including the criteria and process for evaluating and underwriting development proposals; d. Land use planning; e. Transportation and transit planning; f. Operational planning required to support the medical center development district; and g. Ongoing market research plans. 7. Pursuant to the Resolution passed and adopted on January 21, 2026, attached as Exhibit A, the City approved the Five-Year Update. 8. Pursuant to the Resolution passed and adopted on January 21, 2026, attached as Exhibit C, the EDA Board of Directors endorsed the Five-Year Update and recommended the DMCC adopt the Five-Year Update. BE IT FURTHER RESOLVED, that the DMCC Chair and Vice Chair are authorized to take such other actions as are necessary and appropriate to effectuate the adoption of the Five-Year Update and to transmit this Resolution to the City. 41760617v1 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 [City Resolution] EXHIBIT B [Five-Year Update] DESTINATION MEDICAL CENTERDMC DEVELOPMENT PLAN 5-YEAR UPDATE i DMC 2025 Development Plan Update DMC PLAN UPDATE EXECUTIVE SUMMARY Destination Medical Center (DMC) began with a bold vision: to position Rochester as a global center for health and innovation, while enhancing quality of life for everyone who lives, works, or visits here. Now, 10 years in, we’ve reached the halfway point of a 20-year journey. This is an opportunity to assess progress, recognize new opportunities, and to envision an even bolder future. Why is there a 5-year update? The 2025 Development Plan Update is a key part of the DMC legislation that ensures this work stays transparent and accountable – it is both a legislative requirement and a great opportunity to reflect, realign, and refresh our shared direction. This is the moment to sharpen our focus as we look to the future. The path forward is about deepening our collective understanding of what guides our decisions and how our values show up in the built environment, economy, and daily life. What happened in the first 10 years of DMC? New Jobs Employment in the district increased from approximately 36,900 in 2015 to 54,400 in 2022—a gain of about 17,500 jobs. Of those, 16,000 were in the Health Care and Social Assistance sector, while 1,500 jobs were added in other sectors. This represents a 47% increase in jobs in downtown Rochester since 2015, while the statewide growth rate during the same time period was around 1%, making Rochester a significant anchor of employment growth in the state. This is also on track with the DMC goal to add 35,000 - 45,000 new jobs by 2035. New Investment The DMCC Board of Directors and Rochester City Council have directed investments totaling $277 million of public funding. This public investment has successfully attracted over $1.8 billion in private investment. These numbers do not include Mayo Clinic’s planned $5 billion investment in Bold.Forward.Unbound. in Rochester that commenced construction in 2025. New Tax Revenue A core DMC objective is to generate sustained public revenue growth by supporting private investment, job creation, and long-term economic development. The DMC plan sets a target of $7.5 to $8.0 billion in new net tax revenue over 35 years, benefiting the City of Rochester, Olmsted County, and the State of Minnesota. As of 2024, the DMC District is estimated to have generated approximately $1.6 billion in new net tax revenue. The majority of that new tax revenue is from payroll taxes on the new jobs that have been generated. ii EXECUTIVE SUMMARY................... Executive Summary Coordinated Planning To create the DMC Development Plan, the DMC EDA recruited a group of the nation’s leading development and planning consultants to work in collaboration with the City of Rochester, Olmsted County, Mayo Clinic, and community stakeholders. More detailed planning exercises with numerous organizations have also occurred, focused particularly on public realm planning, mobility options, housing needs, and downtown district energy planning. Transforming Experiences Over the past decade, strategic investments in public spaces have been transforming the downtown experience: Heart of the City fostered a year-round gathering place, Discovery Walk connected clinical corridors to innovation energy, and Soldiers Memorial Field evolved as a modern recreation hub with a new aquatic center. These physical improvements came alive through diverse public programming—from seasonal markets to outdoor performances—while cultural anchors like the restored Chateau Theatre enhanced hotels, and an expanding array of restaurants gave people more reasons to explore. Programs like the Main Street Economic Revitalization Grant Program helped entrepreneurs grow businesses, Community Co-Design gave residents direct input into shaping their downtown, Business Forward provided tools for commercial success through construction, and the Coalition for Rochester Area Housing partnership worked on the fundamental challenge of creating more homes at multiple price points. Together, these efforts began answering the essential question: what makes people not just visit downtown, but return, explore, invest, and stay? America's City for Health, From Tagline to Competitive Strategy With 10-years of demonstrable progress and many new public and private projects underway, this update considers Rochester's unique advantage as a health-centric city. In doing so it considers how we innovate, how we build, and how we live. America's City for Health as Competitive Strategy: Accelerate Health Innovation We will expand Rochester’s leadership in health discovery, technology, and entrepreneurship to fuel economic growth. By connecting research, startups, and investment, we’ll cultivate new ideas, businesses, and careers that improve lives and strengthen Minnesota’s economy. Design for Well-being We will design and invest in a city where health and wellness are embedded in the built environment, from housing and mobility to public spaces and climate resilience. Each project will enhance livability, sustainability, and inclusion, ensuring that health is reflected in the daily experience of residents and visitors alike. Drive Purposeful Growth We will use Rochester’s distinct health identity and partnerships to attract people, investment, and services that align with our vision for a thriving, values-driven community. Growth will be intentional, rooted in health, opportunity, and quality of life, so that prosperity benefits both residents and the state. Anchored by Mayo Clinic, the world's number one hospital, and powered by DMC, this model leverages health as a shared value. It’s a one-of-a-kind economic development strategy, unmatched by any other city in the world for combining this level of medical excellence with an intentional plan to grow through health itself. Health is our advantage. It fuels our economy, shapes how we build, and drives the purposeful growth that inspires people to call Rochester home. iii DMC 2025 Development Plan Update PREPARED FOR DMC EDA BY: NOVEMEBER 2025 DRAFT DESTINATION MEDICAL CENTERDMC DEVELOPMENT PLAN 5-YEAR UPDATE iv Introduction i 101. CONTEXT................................... EXECUTIVE SUMMARY................... What is Destination Medical Center?...................................DMC Subdistricts....................................................................DMC Governance and Funding Model................................Anchor Strategic Partner: Mayo Clinic.................................Medical Alley...........................................................................How We Work.........................................................................A Decade of Progress............................................................. CONTENTS 1 3 5 7 9 11 15 2102. DMC TODAY.............................. Demographic Snapshot.........................................................Change We Can See...............................................................Core Areas...............................................................................Plan Alignment........................................................................ 21 29 37 77 10903. DMC TOMORROW.................... An Inflection Point..................................................................Accelerate Health Innovation...............................................Design for Well-Being.............................................................Drive Purposeful Growth.......................................................Looking Forward..................................................................... 109 121 141 153 167 vi 01. CONTEXT vii viii 0.1 CONTEXT DMC 2025 Development Plan Update 01. CONTEXT The following section provides essential context on the Destination Medical Center (DMC) initiative, the State of Minnesota’s largest public-private economic development partnership. The chapter highlights the initiative's origins, governance structure, and implementation timeline, while exploring the collaborative relationship between Mayo Clinic, the City of Rochester, Olmsted County, state government, and broader community stakeholders. What is Destination Medical Center?...................................DMC Subdistricts....................................................................DMC Governance and Funding Model................................Anchor Strategic Partner: Mayo Clinic.................................Medical Alley...........................................................................How We Work.........................................................................A Decade of Progress............................................................. 1 3 5 7 9 11 15 ix C TODAY 03. DMC TOMORROW Introduction 1 DMC 2025 Development Plan Update What is Destination Medical Center (DMC)? Rochester’s growth as a global center for health and healing reached a turning point in the early 2010s. While Mayo Clinic’s reputation drew patients and talent from around the world, the city’s infrastructure and urban experience were not keeping pace. There was a funding gap; public investment had not matched the scale of private and institutional growth. There was also an experience gap; the city needed more housing, transportation options, and vibrant public spaces to support the people who live, work, and visit here. To close those gaps and plan for the future, the State of Minnesota, City of Rochester, Olmsted County, and Mayo Clinic formed a bold public–private partnership: the Destination Medical Center (DMC) initiative. With Mayo Clinic at its heart, DMC was established as a catalyst to position Rochester as the world’s premier destination for health and wellness. The focus was to attract people, investment, and jobs to “America’s City for Health” while strengthening Minnesota’s economy and biosciences sector. The enabling legislation was passed by the Minnesota Legislature in 2013, launching a 20-year initiative (2015–2035) supported by a $585 million public infrastructure investment designed to leverage $5.6 billion or more in private development within the DMC District and by Mayo Clinic in Rochester. What is the timeline of DMC? The DMC Development Plan was completed in 2015 and serves as a strategic business plan and framework for implementation of the initiative. DMC is required to update its development plan every five years to assess progress, identify new opportunities, and guide future investment and infrastructure aligned with this strategic vision. All planning and investments must be approved by both the Rochester City Council and the DMC Corporation Board (DMCC) to ensure alignment and partnership in the vision for downtown Rochester. Where are we at today? If the first five years of the DMC initiative (2015-2019) were characterized by a burst of new investment that demonstrated that the economic development model was working as intended, the first 5-year update to the DMC development plan (2020) occurred at a moment no one could have anticipated, amidst the COVID-19 pandemic and the subsequent impacts. Rochester has emerged from those uncertain times with an over $5 billion commitment from Mayo Clinic to expand their facilities in downtown Rochester, as well as numerous large infrastructure investments also underway. This represents the largest construction project the State of Minnesota has ever seen in its history. For DMC, this means that we are leaning even more into Rochester's identity as America’s City for Health - it’s a competitive strategy that positions health as our shared value and economic driver. This plan advances a city where health shapes how we innovate, how we build, and how we live. CONTEXT WHAT IS DESTINATION MEDICAL CENTER? 2 Create a Comprehensive Strategic Plan Create a comprehensive strategic plan with a compelling vision that harnesses the energy and creativity of the entire region. Attract Private Investment Leverage public investments to attract more than $5 billion in private investments to Rochester. Create Jobs Create more than 35,000 - 45,000 new jobs, with workforce development strategies that support that growth. Generate Additional Tax Revenue Generate approximately $7.5 - $8 billion in new net tax revenue over 35 years Become the Destination for Health & Wellness Achieve the highest quality patient, visitor, and community member experience now and in the future. 01. Context FIVE DMC PLAN GOALS 3 DMC 2025 Development Plan Update CONTEXT DMC SUBDISTRICTS The Six Subdistricts of DMC DMC's one square mile footprint is divided into six subdistricts. Each with a distinct plan, vision, and a signature public realm investment. Heart of the City Discovery Square West Transit Village E Discovery Square A new address for the future of bio-medical, research, education and technology innovation, Discovery Square is the economic engine of the DMC strategy and the core of the projects entrepreneurial system. Saint Marys Place Saint Marys Place establishes a civic gateway at one of the primary entry points to Rochester and also includes the western end of the Link BRT corridor. The district embraces its relationship to the surrounding neighborhoods creating opportunities to connect Kutsky Park, St. Marys Hospital and the Historic Pill Hill Neighborhood. Central Station Central Station is a cornerstone of the plan for future growth in Rochester. The location is ideal as a mixed-use area to support the community, visitors, and patients and has seen new housing, hotel, and retail development. Heart of the City Downtown Waterfront By embracing and activati investment along the wate Rochester to a vibrant des district is anchored by mu and new investment will e spurring mixed-use develo the downtown area. Education and Recreatio This district is anchored b Field and includes sites or part of the University of M Master Plan. UMR owns p the new Master Plan focus downtown, opening up ne for this subdistrict. 1 4 2 5 6 3 Link BRT 2nd St. SW Hw y 5 2 Br o a d w a y A v e . S Ci v i c C e n t e r D r . W Center St. BRYK 1stAvenueFlats TheBerkman The Mavenon Broadway HiltonHotel Residenceat DiscoverySquare Enclave Flats onFourth Loftsat MayoPark The Hue 4th St. SW 1s t A v e . S E 1s t A v e . S W 6th St. SW 5th St. SW 1st St. SW MayoBuilding Methodist HospitalCampus St. MarysHospital GondaBuilding One& Two DiscoverySquare DiscoveryWalk SoldiersFieldMemorialPark 3rd St. SW Bold. Forward.Unbound. in Rochester(Mayo Clinic Addition) 6th Street Bridge Riverfront Heart of the City D A B C F A B C E D DMC district boundary Mayo Clinic buildings Mayo Clinic Bold. Forward. Unbound. in Rochester proposed construction Public infrastructure investments Private investments Link BRT (Bus Rapid Transit) line and stops Walkshed (five and ten minutes) Riverfront development on 1 4 2 5 6 3 5 DMC 2025 Development Plan Update CONTEXT DMC GOVERNANCE AND FUNDING MODEL Three characteristics make the DMC unique: it has a formal governance structure, a long-term commitment, and dedicated resources in the form of the public infrastructure funding committed to the initiative. Governance Structure The DMC legislation, signed into law by Minnesota Governor Mark Dayton in May 2013, created two distinct bodies to implement the initiative: DMC Corporation (DMCC) The DMC Corporation is an oversight body that approves the DMC Development Plan and specific funding requests. The 8-member governing board consists of four members appointed by the governor of Minnesota, Rochester’s Mayor, a selected Rochester City Council member, a selected Olmsted County Commissioner, and a representative from Mayo Clinic. DMC Economic Development Agency (DMC EDA) The DMC EDA is a private nonprofit economic development agency that contracts with the DMC Corporation Board to act as its staff, working with the City of Rochester and other stakeholders to develop and execute DMC plans and strategy. Mayo Clinic appoints the Board of Directors of the DMC EDA. 6 Total Investment Framework DMC operates as a public-private partnership, combining private development by Mayo Clinic and other developers with public funding from the City of Rochester, Olmsted County, and the State of Minnesota to facilitate and support public infrastructure. The initiative includes $585 million in public investment designed to catalyze $5.6 billion in private investment over a 20-year period through 2035. Performance-Based State Funding State law requires private investments made by Mayo Clinic and other businesses in the DMC District to be reported annually to the Minnesota Department of Employment and Economic Development (DEED). These investments determine the amount of state infrastructure funding Rochester receives, with a maximum of $30 million available annually based on qualifying private investment levels. Infrastructure-First Approach DMC employs an "infrastructure-first" approach to redevelopment, using public funds to support roads, transit, utilities, and public spaces that enable private development. This unique governance and funding structure creates accountability through multiple oversight levels while providing the long-term financial stability needed for transformational economic development. 01. Context 7 DMC 2025 Development Plan Update What is Mayo Clinic? Mayo Clinic is the world’s largest integrated, not-for-profit medical group practice — a global leader in patient care, research, and education. Founded in 1864 in Rochester, Minnesota, Mayo Clinic was built on a simple yet revolutionary idea: that medicine works best when doctors collaborate across specialties to focus on the needs of the patient. Today, that model of team-based care serves more than 1.3 million patients each year from all 50 states and over 130 countries. Represented by the three shields in its logo, symbolizing clinical practice, research, and education, Mayo Clinic’s mission is to inspire hope and contribute to health and well-being by integrating these disciplines in every aspect of its work. Each shield strengthens the others, ensuring that discoveries made in the lab translate to better treatments at the bedside and that learning is woven into every patient interaction. CONTEXT ANCHOR STRATEGIC PARTNER: MAYO CLINIC A Legacy of Leadership For more than 150 years, Mayo Clinic has defined what it means to deliver team-based, patient-centered care. Its pioneering model integrates research and practice to continually improve outcomes and inspire trust. Today, Mayo Clinic’s work extends far beyond its campuses — improving health worldwide through collaboration, data, and digital innovation. 8 BOLD.FORWARD.UNBOUND. IN ROCHESTER Mayo Clinic: Catalyst for Transformation Mayo Clinic is the foundation and future of Destination Medical Center. As Rochester’s defining institution and the world’s leading hospital, Mayo Clinic is not simply a partner in DMC, it is the reason DMC exists. The partnership was built on a shared vision: to ensure that Mayo Clinic can continue to thrive and expand in Rochester for generations to come, and that the city grows with it — as a global destination for health, innovation, and discovery. Bold. Forward. Unbound. in Rochester — A Vision for the Future Bold. Forward. Unbound. in Rochester is an integral part of Mayo Clinic's strategic initiative to transform healthcare for the benefit of patients everywhere. Mayo Clinic is reimagining the downtown Rochester campus and introducing a combination of innovative care concepts, digital technologies and, new facilities that will enable transformation and accelerate the future of care. In downtown Rochester, this vision is taking a dramatic physical and strategic form. Through DMC, the city has laid the groundwork by creating the infrastructure, partnerships, and civic environment necessary for Mayo Clinic to realize its ambitions. The investment in Discovery Square, Heart of the City, and public infrastructure has enabled Mayo Clinic to expand its research, innovation, and care capabilities in ways that connect patients, clinicians, staff, and entrepreneurs in a shared ecosystem of health innovation. Bold. Forward. Unbound. in Rochester is Mayo Clinic’s vision for the future of healthcare infrastructure. Every aspect of Bold. Forward. Unbound. in Rochester considers the needs of the patient first —not only the patients of today, but also the patients Mayo Clinic will serve 100 years from now. • Five new buildings and major utility upgrades — adding 2.4 million square feet of flexible, future-ready space. • Flexible design that allows spaces to evolve with emerging treatments and technologies. • Care neighborhoods designed to transform how healthcare is delivered and to elevate the experience of both patients and staff. • Digital systems intuitively integrated with automation, robotics, and AI-powered tools that further Mayo Clinic's collaborative model of care. • $5 billion investment anchoring Rochester’s role in global health innovation and driving local economic impact. Construction is now underway, with phased openings of the first new buildings beginning as early as 2026. Bold. Forward. Unbound. in Rochester serves as a testament to Mayo Clinic’s commitment to Rochester and its future. This isn't just about new construction; it's about transforming healthcare and expanding a vibrant, thriving community that attracts and retains top talent, fosters innovation, and enhances the lives of our patients, staff, and visitors. 01. Context 9 DMC 2025 Development Plan Update CONTEXT MEDICAL ALLEY Minnesota’s Medical Alley is more than an industry— it’s a powerful regional ecosystem that fuels global health innovation. Stretching from Rochester to the Twin Cities and across southern Minnesota, Medical Alley is one of the world’s most concentrated clusters of healthcare, MedTech, and life science expertise. It is home to more than 15,000 companies employing over 500,000 people, including global leaders like Mayo Clinic, Medtronic, Boston Scientific, and 3M, alongside hundreds of startups driving next-generation health solutions. Rochester anchors this ecosystem, where research, discovery, and patient care converge. DMC’s investments in innovation, infrastructure, and workforce expand the region’s capacity to collaborate across disciplines, from data and diagnostics to devices and delivery. The strength of Medical Alley lies in its density of expertise and culture of partnership. By connecting Rochester’s world-leading clinical environment with the manufacturing, finance, and technology assets of the broader region, DMC transforms ideas into real-world applications that improve lives and strengthen Minnesota’s economy. This geography is central to DMC’s success: it ensures discoveries made in Rochester scale statewide and globally, positioning Minnesota as a premier destination for health innovation and investment. 10 DRA F T 01. Context 11 DMC 2025 Development Plan Update CONTEXT HOW WE WORK: A MODEL FOR INCLUSIVE AND SUSTAINABLE GROWTH DMC is more than a development initiative; it’s a partnership model designed to grow Rochester in ways that reflect its people, purpose, and plan. Our approach combines public and private investment, guided by principles that ensure every dollar contributes to long-term community health, economic vitality, and environmental sustainability. 1. Establish a bold and compelling vision for Rochester and Destination Medical Center DMC began with a transformative idea: to make Rochester the world’s premier destination for health and innovation. That bold vision continues to guide decisions today, inspiring projects that enhance well-being, advance discovery, and strengthen Minnesota’s economy. 2. Sustain Rochester and Southeast Minnesota as a destination medical center and economic engine for the state Anchored by Mayo Clinic, DMC is growing a diverse ecosystem of employers, entrepreneurs, and educators that drives statewide prosperity. Sustaining this success means investing in both innovation and inclusion—ensuring opportunity reaches every corner of the region. 3. Implement a comprehensive strategy to drive economic development and investment DMC coordinates public and private investment through a shared plan that creates jobs, attracts new businesses, and expands the tax base. Equity, sustainability, and workforce participation are built into this strategy, ensuring growth benefits the people who power it. 4. Align development with market-driven framework and strategies Each project responds to real market needs and long-term community value. By aligning development with economic demand and public purpose, DMC helps ensure resources are directed where they can have the greatest social, fiscal, and environmental return. 5. Create a dynamic and accessible urban core Downtown Rochester is designed for people—a walkable, welcoming, and connected city center that reflects the health of the community itself. Investments in housing, parks, public art, and small business vitality make this urban core vibrant, equitable, and inclusive. 12 Introduction 6. Develop mobility and transit solutions to support growth DMC promotes a connected, multimodal transportation network that reduces car dependence and expands access for everyone. Projects like the Link Bus Rapid Transit system and Discovery Walk demonstrate how mobility can improve health, equity, and sustainability. 7. Create a model for sustainability Sustainability is woven into every DMC investment—from climate-resilient design and renewable energy infrastructure to green building standards and expanded tree canopy goals. Together, these efforts create a city that supports both human and environmental health. 8. Deploy technology and innovation to promote a globally competitive destination Innovation drives DMC’s future. From advanced data systems to digital health, smart infrastructure, and community co- design, technology is used to expand access, improve performance, and ensure that progress is shared equitably across Rochester’s growing community. Through these principles and values, DMC continues to model how visionary planning, inclusive partnerships, and sustainable design can create a healthier, more equitable city, and a stronger Minnesota. 13 DMC 2025 Development Plan Update CONTEXT A DECADE OF PROGRESS The state statute that established the DMC initiative outlines eight key areas for strategic development, ensuring a comprehensive and balanced approach to urban transformation. These areas include: • Commercial research and technology • Learning environments • Hospitality and convention • Sports and recreation • Livable communities (encompassing mixed-use, urban, and neighborhood residential development) • Retail, dining, and entertainment • Health and wellness • Transportation Together, these categories serve as a framework for guiding investment and planning decisions that support Rochester’s evolution into a globally competitive, inclusive, and vibrant city. The following map outlines the built and planned public and private investments that have been made in these 8 key areas over the past decade. Capital Investments From 2015 to 2024, over $1.8 billion in private construction investments were made within the DMC district. Over that same time period, DMC and Rochester City Council authorized $277 million of public infrastructure spending to support the continuous growth of the downtown. Commercial Research & Technology Built Commerical Research & Technology Unbuilt Learning Environments Built Hospitality & Convention Built Hospitality & Convention Significant Renovation I Sports & Recreation Built Livable Communities Built Retail, Dining & Entertainment Built Health & Wellness Built Health & Wellness - Significant Renovation Invest Health & Wellness Unbuilt - Bold. Forward. Unbou Transportation Horizontal infrastructure (streets and sewers) Capital Investments to Date 14 14 Introduction 3rd Ave. SE Broadway Ave . Broadway Ave. Civic C e n t e r D r . Civic Center D r . 1st Ave.6th S t . 4th S t . 3rd S t . Cent e r S t . 2nd S t . Highway 52 Investment tment und. in Rochester privately funded 01. Context 15 DMC 2025 Development Plan Update CONTEXT A DECADE OF PROGRESS The Model is Working The DMC investment model delivers measurable results. Each dollar of public funding invested in infrastructure and public realm improvements has unlocked multiple private dollars in new development. A return that continues to grow year over year. Since 2015, DMC has demonstrated that strategic public investment can catalyze sustained private confidence. The result is a thriving urban core, expanded business and innovation opportunities, and new housing and hospitality choices that strengthen Rochester’s position as a global destination for health and innovation. The numbers tell the story: • Public investment lays the foundation for long-term growth, in streets, utilities, mobility, and shared public spaces. • Private investment follows, bringing jobs, tax base, and vitality. • The outcome is a balanced, self-reinforcing model that continues to exceed expectations. The DMC approach is working. It is driving tangible economic, social, and physical transformation in Rochester, and that impact can be felt across Minnesota. PROGRESS, MEASURED 400,000 15 Vacant or underutilized blocks downtown developed square feet of new research and innovation space delivered 2x Number of downtown residents since 2015 $1.6Bnew net state and local tax revenue 47%increase in new jobs $1.8B in private investment 16 17 02. DMC TODAY 18 19 DMC 2025 Development Plan Update 02. DMC TODAY This chapter assesses the DMC district today through four lenses: Rochester's demographic profile, change we can see in the built environment and how we got there, the current state of key core areas, and a review of significant planning exercises conducted over the past decade. The analysis establishes a comprehensive baseline—examining who makes up the community, how the economy functions today, what infrastructure exists, and what previous studies have revealed about opportunities and challenges. This foundation enables informed strategic thinking about Rochester's next phase of development. Demographic Snapshot.........................................................Change We Can See...............................................................Core Areas...............................................................................Plan Alignment........................................................................ 21 29 37 77 0.1 CONTEXT 20 Introduction Demographic Snapshot Understanding who we are and who we’re becoming is essential to shaping a community that works for everyone. What is in this section: Rochester’s population is growing rapidly and becoming more diverse, educated, and globally connected. The following pages present a picture of Rochester’s changing demographics: population growth, age distribution, diversity, income, and household trends. These data points help DMC and its partners plan for a future that meets the needs of residents, workers, patients, and visitors alike. Why it matters: Understanding who lives, works, and invests here is essential to shaping policies and investments that ensure inclusive growth. These trends influence how we plan housing, transit, and workforce programs. By tracking change and anticipating what’s next, Rochester can remain a place where innovation thrives and people of all backgrounds can live, work, and belong. C TODAY 03. DMC TOMORROW For more than 150 years, Rochester, MN has been the home of Mayo Clinic. An ambitious family of doctors and an order of Catholic sisters created what has become the #1 hospital in the world. With a singular focus on the needs of the patient, Mayo Clinic continues to be the standard bearer for healthcare innovation in solving medicine’s most serious and complex problems. Rochester has developed alongside the world's premier medical institution, creating a unique partnership that brings together small-city livability, big-city amenities, rich cultural diversity, and economic prosperity that's rare in the United States. When we zoom in further to the downtown DMC District itself, the DMC District is one of the most racially and ethnically diverse areas in Olmsted County. Its median age is 39, slightly higher than the City of Rochester’s median age of 36.3. Adults aged 55 and older make up 35.9% of the DMC population, compared to 28.1% citywide and just 23.3% on average across peer cities. Economic Growth With an area median household income of $85,240, Rochester outpaces both Minnesota and national medians. Combined with a poverty rate of just 9.1% and low unemployment at 2.1%, Rochester enjoys unusual economic stability for a non-coastal, mid-sized city. However, this DEMOGRAPHIC SNAPSHOT COMMUNITY PROFILE high average income obscures some of the lower income households that exist in a higher proportion in the downtown and DMC district, including two census tracts where at least 50% of households have an income below 60% of the Area Median Gross Income (AMGI), or that have a poverty rate of 25% or more. Almost half of the households who rent in Rochester are cost-burdened (meaning they spend more than 30% of their income on housing). International Character in the Upper Midwest 14% of residents are foreign-born, and 17.8% speak a non- English language at home, while over 90 languages are spoken within the Rochester Public Schools. This diversity is notable for a Minnesota city of this size, driven largely by Mayo Clinic's international reputation attracting medical professionals, researchers, and patients from around the world. White Collar Employment Concentration 86.2% of workers are in professional or administrative positions - an extraordinarily high proportion that rivals major metropolitan areas and reflects the medical, research, and knowledge-based economy. Rapid Growth in a Stable Region Rochester's population has grown 44.1% since 2000, making it one of the fastest-growing communities in Minnesota and the Upper Midwest - a region where many cities face stagnation or decline. 21 DMC 2025 Development Plan Update 22 DMC District 1 SQ MILE City of Rochester 55 SQ MILES 22 Rochester by the Numbers Population Age Education 50K 100K 150K 200K 2000 2005 2010 2020 20232015 20352025 2045 85,806 97,191 106,769 121,395111,907 147,516 162,277 128,484 Estimated GrowthGrowth from 2000 to 2023: 43% 122,696 11% 12% 17% 14% 41% 23%13% 25% 20% 9% 9% 11% 13% 15%17% 14% 16% 18% 17% Outside ring: Rochester Inside ring: National Average 21%18%The Median Age in Rochester is 36.3, which is almost a full three years younger than the national median of 39.2.  High school or equivalent  Some college, no degree  Associates or Bachelors degree  Graduate or professional degree AMI $85,240* 32% 65-74 55-64 45-54 35-44 25-34 18-2475+ 23 Employment Employment in the DMC District grew by 76% from 2003 to 2022, with 75% of that growth occurring after the DMC plan launched in 2015. Between 2015 and 2022, the district added 17,500 jobs, including 1,500 in non-healthcare sectors. Rochester outpaced peer cities like Sioux Falls, SD and Madison, WI in job growth, signaling its emergence as a strong regional employment center. The DMC District’s expanding research ecosystem is drawing more diverse economic activity, especially in biotech, MedTech, and healthcare innovation. Rochester ranks first in the nation for average physician pay and NIH funding per capita, reinforcing its role as a premier destination for medical professionals. Healthcare Rochester leads the nation in healthcare density, with 2,400 physicians per 100,000 residents. This exceeds the average of peer counties such as Hennepin (Minneapolis) at 585 and Ramsey (St. Paul) at 327. The city also supports 38 healthcare workers per 100 residents, compared to just 4 nationally, reflecting a deeply embedded medical workforce and high patient volumes. Education DMC has a unique opportunity to attract and retain talent across industries. University of Minnesota Rochester (UMR) has grown from 57 students in 2009 to around 1,200 undergraduates today. As of 2024, over 30% of UMR graduates stayed in Rochester, more than double the retention rate of the University of Iowa. Nearly 25% of UMR alumni are employed by Mayo Clinic, and graduates earn a median salary of $69,020, significantly above the national midpoint of $53,747. With an annual cost of $15,193, well below the four-year college average, UMR offers a high-value, healthcare-focused education that directly feeds Rochester’s innovation economy. Luther College’s Rochester Semester, launched in 2020, offers students from all majors immersive internships with Mayo Clinic and local organizations, building on a 40-year legacy of nursing clinical placements in the city. Since 2017, Winona State has expanded its downtown Rochester presence to co-locate graduate nursing and social work programs, fostering interdisciplinary collaboration and aligning with regional workforce needs. Rochester Community and Technical College (RCTC), Minnesota’s oldest community college founded in 1915, serves over 8,000 students annually with 70+ programs and healthcare-focused pathways, many in partnership with Mayo Clinic and Winona State University, playing a critical role in supporting Rochester’s Destination Medical Center vision by developing a skilled workforce for its growing healthcare and innovation economy. DEMOGRAPHIC SNAPSHOT COMMUNITY PROFILE DMC 2025 Development Plan Update 24 02. DMC Today 25 Infrastructure Seventy one percent of roadways in the DMC District boundary have seen investment in public infrastructure since the founding of the DMC iniative in 2015. That level of investment is extraordinary when compared to national trends, where aging infrastructure often languishes due to limited funding and slow project timelines. In contrast, the DMC District’s transformation reflects a rare and concentrated commitment to revitalization that far exceeds the pace and scale of typical U.S. infrastructure upgrades. Mobility The average commute time is just 17.2 minutes, well below the national average of around 26 minutes, suggesting a compact, well-planned city where people live close to work. With a doubling of the number of residents living downtown over the last 10 years, the population that has a walkable commute to work is increasing too. Community Resilience Rochester ranks in the 8th national percentile for climate vulnerability, indicating strong resilience compared to similar- sized cities. Its social vulnerability score of 0.2 matches leading peers like Madison, WI (Dane County). These indicators reflect a community that is well prepared to adapt to environmental and social challenges. Housing The DMC District is projected to grow in population by 52% by 2030, increasing demand for diverse housing options. While over 1,000 new units have been added since 2020, Olmsted County still needs 18,000 more by 2035. Nearly half of Rochester renters are cost burdened, and the DMC district is predominantly renter-occupied. Rising costs, limited supply, and an aging population are driving the need for affordable, inclusive housing, especially for seniors, low-income residents, and communities of color. DMC 2025 Development Plan Update DEMOGRAPHIC SNAPSHOT COMMUNITY PROFILE Source: Maxfield Olmsted County Housing Study; *(Cost burdened households pay 30-50% of income for rent/utilities) COMMUNITY RESILIENCE EDUCATION Rent Rent 4.7k Rochester rental housing demand by 2035 OwnOwn Tenure Breakdown (2020) 16%OwnOwn 84% DMC DISTRICT 64% Rent Rent ROCHESTERROCHESTER 36% 49% Share of Rochester renter households with cost burdens* Olmsted County, MN (Rochester): 8th Dane County, WI (Madison): 6th Johnson County, IA (Iowa City): 6th Cass County, ND (Fargo): 2nd Minnehaha County, SD (Sioux Falls): 11th Climate Vulnerability 1000 Social Vulnerability 10 Rochester, MN (0.2) Dane County, WI (Madison): 0.2 Johnson County, IA (Iowa City): 0.4 Cass County, ND (Fargo): 0.3 Minnehaha County, SD (Sioux Falls): 0.4 Source: Center for Disease Control Social Vulnerability Source: U.S. Climate Vulnerability Index by percentile 2024 UMR National 1.5%5% 80% Statewide 2025 Increase in New Undergrad Students HOUSING 02. DMC Today University of Minnesota Rochester (UMR) has grown from 57 students in 2009 to around 1,200 undergraduates today. As of 2024, over 30% of UMR graduates stayed in Rochester, more than double the retention rate of the University of Iowa. 52% DMC anticipated population growth rate (2020-2030) 27 DMC 2025 Development Plan Update Change We Can See The results of a decade of investment are visible across Rochester’s skyline, streets, and shared spaces — proof that the DMC model is working. What is in this section: The following pages highlight the transformation of downtown Rochester through public and private investment. Once underutilized blocks have become vibrant places to live, work, and gather. From Discovery Walk to the Heart of the City, from new housing and hotels to research and innovation spaces, each project represents visible progress and lasting impact. Why it matters: Physical change builds momentum and confidence. Every completed project demonstrates how coordinated public and private investment drives economic growth, improves livability, and attracts new talent and opportunity. This transformation is more than construction. It’s a reflection of Rochester’s shared commitment to being America’s City for Health. 0.1 CONTEXT 28 Introduction C TODAY 03. DMC TOMORROW 29 DMC 2025 Development Plan Update Rochester’s transformation over the past decade is visible in its built environment. Fifteen formerly vacant or underutilized downtown blocks have been redeveloped, signaling a new era of vitality. Over 400,000 square feet of research and innovation space, including One and Two Discovery Square and the Anna-Maria and Stephen Kellen Building, have been delivered. More than 1,000 new housing units, including Bryk Apartments, and 690 hotel keys, such as the Hilton Rochester Mayo Clinic Area, have been added. These investments reflect Rochester’s emergence as a dynamic hub for innovation, quality of life, and economic growth. Discovery Square Before Discovery Square After INNOVATIONCHANGE WE CAN SEE A DECADE OF INVESTMENT 30 INNOVATION Hilton Rochester Mayo Clinic Area Before Bryk on Broadway Before Hilton Rochester Mayo Clinic Area After Bryk on Broadway After HOSPITALITY HOUSING 02. DMC Today 31 Over the past decade, Rochester has maximized its public investment strategy by leveraging a diverse mix of funding sources to accelerate transformation. In addition to the core DMC funding, the city secured support from the Minnesota Main Street Economic Revitalization Program and major federal contributions, including an $84.9 million grant from the Federal Transit Administration for the Link Bus Rapid Transit project. DMC has also supported a Historic District Commercial Rehabilitation Fund to preserve and activate key properties. This layered approach to financing has amplified the impact of local dollars, enabling catalytic investments in infrastructure, mobility, and economic development. MAIN STREET GRANT PROGRAM Rochester’s Main Street Grant offered matching funds to help businesses improve buildings and surrounding sites. Funds support repairs, renovations, construction, landscaping, design, and other site-related improvements. Pictured above is Anderson Wheelchair, a shop that sells, rents, customizes, and services mobility products, which received an $88,548 grant to improve their facility. CHANGE WE CAN SEE LEVERAGING FUNDING SOURCES DMC 2025 Development Plan Update 32 INCREASING FUNDING FROM STATE, FTA HISTORIC DISTRICT COMMERCIAL FUND Rochester received an $84.92 million federal grant to build the Link Bus Rapid Transit system, a key step in transforming regional mobility. The project will connect major destinations with fast, reliable service and support sustainable growth. Link BRT is designed to reduce congestion, improve access, and strengthen Rochester’s role as a regional hub. Rochester launched a Historic District Commercial Fund offering three financial tools to support property upgrades: a Pre-renovation Grant, Economic Development Loan, and Infrastructure Investment. These programs provided up to $500,000 per property for design, construction, and infrastructure, with matching funds and required approvals. 02. DMC Today 33 BUSINESS FORWARD BLOOMBERG MAYORS CHALLENGE WINNERCOMMUNITY CO-DESIGN Co-design is a collaborative approach that elevates voices most impacted by development, ensuring their experiences shape outcomes. It identifies and compensates community members as co-designers, engages them in design sprints, and integrates feedback to refine solutions. This method guided projects like Discovery Walk, producing inclusive, responsive, and community-aligned results. Business Forward is community-centered construction mitigation. It’s a methodology that prioritizes people and businesses, working proactively and intentionally with those most affected by construction. Through early engagement, coordinated communication, and responsive support, Business Forward helps minimize disruption and maintain vitality in areas experiencing major investment. The approach ensures that progress on public infrastructure also strengthens local businesses, builds trust, and sustains the character of Rochester’s downtown and districts during times of change. Rochester secured $1 million in the Bloomberg Global Mayors Challenge for a proposal that expands economic mobility for BIPOC women through careers in construction and the built environment, using co-design and partnerships to create a replicable model for inclusive workforce development. CHANGE WE CAN SEE UNIQUE TOOLS DEVELOPED DMC 2025 Development Plan Update To support inclusive and adaptive growth, Rochester has pioneered tools like community co-design, Business Forward, rapid prototyping, and the Housing Coalition, each designed to elevate local voices, accelerate innovation, and align development with community needs. 34 PROTOTYPING COALITION FOR ROCHESTER AREA HOUSING Rochester uses prototyping to test public space elements, such as furniture and design features, before final implementation. This iterative approach gathers community feedback and real-world performance data to refine solutions that better serve residents and visitors. For example, seating prototypes in the Heart of the City were evaluated for comfort, durability, and public response before final selection. The Coalition for Rochester Area Housing emerged as a collaborative platform to advance housing equity, affordability, and stability. It brings together diverse partners to align strategies, share data, and support informed decision-making. Its BIPOC Homeownership Report, which highlights racial disparities and recommends targeted actions, reflects the coalition’s data-driven and community-informed approach. 02. DMC Today 35 DMC 2025 Development Plan Update Core Areas Rochester’s strength comes from the connection between its core areas — healthcare, research and education, innovation and technology, hospitality, and housing — all working together to power a resilient and inclusive economy. What is in this section: The following pages highlight the eight core areas that shape Rochester’s growth and define DMC’s impact. Each area, from health and discovery to community life, plays a role in advancing DMC’s mission to make Rochester a global destination for health and innovation. These snapshots show how public and private investments across sectors intersect, creating a stronger foundation for economic vitality and quality of life. Why it matters: A thriving city depends on balance. Between innovation and inclusion, growth and livability, understanding the interdependence of Rochester’s core areas helps DMC and its partners direct investment, attract talent, and create opportunities that benefit the entire community. Together, these areas form the ecosystem that drives Rochester’s future as America’s City for Health. 0.1 CONTEXT 36 Introduction C TODAY 03. DMC TOMORROW 37 DMC 2025 Development Plan Update The state statute that established the DMC initiative outlines eight key areas for strategic development, ensuring a comprehensive and balanced approach to urban transformation. These areas include: • Commercial research and technology • Learning environments • Hospitality and convention • Sports and recreation • Livable communities (encompassing mixed-use, urban, and neighborhood residential development) • Retail, dining, and entertainment • Health and wellness • Transportation Together, these categories serve as a framework for guiding investment and planning decisions that support Rochester’s evolution into a globally competitive, inclusive, and vibrant city. The following map outlines the built public and private investments that have been made in these 8 key areas over the past decade. CORE AREAS CAPITAL INVESTMENT Commercial Research & Technology Built Commerical Research & Technology Unbuilt Learning Environments Built Hospitality & Convention Built Hospitality & Convention Significant Renovation I Sports & Recreation Built Livable Communities Built Retail, Dining & Entertainment Built Health & Wellness Built Health & Wellness - Significant Renovation Invest Health & Wellness Unbuilt - Bold. Forward. Unbou Transportation Horizontal infrastructure (streets and sewers) Capital Investments to Date 38 Introduction 3rd Ave. SE Broadway Ave . Broadway Ave. Civic C e n t e r D r . Civic Center D r . 1st Ave.6th S t . 4th S t . 3rd S t . Cent e r S t . 2nd S t . Highway 52 Investment tment und. in Rochester privately funded 02. DMC Today 38 39 DMC 2025 Development Plan Update Anna-Maria and Stephen Kellen Building One Discovery Square Two Discovery Square In under a decade, Rochester’s innovation ecosystem has made remarkable strides, transforming from a bold vision into a growing reality. What started in 2015 with limited infrastructure and few formal partnerships has become a dynamic network of programs, institutions, and companies. Today, new ventures are taking root, student enrollment is climbing, and higher education is becoming a visible force in the downtown core. With a stronger foundation in place, Rochester is now seeing clear momentum toward a more connected, collaborative, and innovation-driven future. built investments from the last 10 years unbuilt, funded and approved investments horizontal infrastructure (streets and sewers) investments in the Downtown - both public and privately funded Key Investments One Discovery Square Two Discovery Square Discovery Walk BioLabs Rochester 1 2 3 4 5 Looking Forward: BioLabs is expanding to Rochester with a new 16,000 square-foot facility to provide shared lab space for HealthTech startups and accelerate innovation in the region CORE AREA: COMMERCIAL RESEARCH & TECHNOLOGY 40 40 Introduction 3 2 1 5 4 lding 3rd Ave. SE Broadway Ave . Broadway Ave. Civic C e n t e r D r . Civic Center D r . 1st Ave.6th S t . 4th S t . 3rd S t . Cent e r S t . 2nd S t . Highway 52 02. DMC Today 41 DMC 2025 Development Plan Update 2015: Foundations and Early Vision In 2015, Rochester’s innovation ecosystem was more vision than reality. The Discovery Square Master Plan had outlined a bold idea for a connected district that would bring researchers, clinicians, entrepreneurs, and industry partners into close proximity with Mayo Clinic, but the physical and organizational infrastructure to support that vision was still emerging. The Mayo Clinic Employee Entrepreneurship Program (EEP) had just launched and was beginning to test new ways to support internal innovators. There were no local angel funds, no public labs, and no shared spaces designed for early stage HealthTech teams. Discovery Square existed only on paper, and the DMC initiative was in its first year of building the partnerships and governance structures needed for long-term impact. Global awareness of Rochester as a health innovation destination was minimal, and there were no formal outreach efforts or partnerships that connected the city to national or international networks. The University of Minnesota Rochester enrolled fewer than 600 students and had not yet developed the health sciences focus it carries today. Workforce programs, technical training, and HealthTech contracting capacity were limited. Rochester’s HealthTech community consisted of roughly two dozen companies, most of which operated quietly and were tightly tied to Mayo Clinic without a broader ecosystem to scale their work. The region’s innovation identity was aspirational, guided by a strong vision but lacking the physical assets, talent infrastructure, and coordinated activity needed to bring it to life Current State: Early Momentum and Structure A decade later, Rochester has taken meaningful steps from concept to momentum. The EEP now produces new ventures each year and has strengthened the culture of internal innovation at Mayo Clinic. The Southern Minnesota Initiative Foundation and the Southern Minnesota Capital Fund have anchored early angel activity and created a pathway for regional investors to participate in HealthTech growth. Discovery Square has begun to take physical shape, with two completed buildings totaling nearly 200,000 square feet and a growing mix of startups, researchers, and industry teams using the district as a home base. Lab capacity remains limited but now exists in prototype form, and the forthcoming BioLabs Rochester facility will be a transformational addition to the district’s infrastructure. The University of Minnesota Rochester has grown to roughly 1,000 students and is building academic programs aligned with health sciences, data, and emerging technology fields. New partnerships are forming around workforce development and experiential learning, with stronger Links between higher education and industry. CORE AREA: COMMERCIAL RESEARCH & TECHNOLOGY 42 02. DMC Today The HealthTech community has expanded to more than 50 companies, including emerging ventures at the Rochester Technology Campus and firms that have established deeper ties to Mayo Clinic. Capacity remains early-stage, but the network is broader, more visible, and better connected to local and regional partners. DMC’s Business Development team has grown and established a structured approach to global outreach, industry engagement, and ecosystem activation. Over the past several years, the team has conducted nearly 2,000 engagements, built relationships with more than 50 national and international trade organizations, and significantly expanded Rochester’s reach into global markets. These efforts directly address the gaps identified in the 2022 Awareness and Perception Study, which called for stronger visibility, clearer market positioning, and a more unified story about Rochester’s innovation opportunity. In 2025, DMC advanced Rochester’s profile through targeted outreach and selective partnership development. This included hosting and participating in major industry events, securing an $8 million capital commitment for BioLabs Rochester, conducting more than 60 strategic meetings with academic and industry leaders, and connecting with over 500 companies and organizations worldwide. These efforts help attract mission aligned firms, strengthen the activity within Discovery Square, and position Rochester as a credible and emerging global center for health innovation. Rochester’s innovation ecosystem is still early in its development, but the city now has a foundation, a clearer identity, growing infrastructure, and a coordinated strategy to build the conditions where discovery can grow into impact tech firms and position Rochester as a premier destination for life sciences. 43 DMC 2025 Development Plan Update University Square Discovery Square Student Life Center A strong talent pipeline is essential to support Mayo Clinic and Rochester’s growing innovation ecosystem. While Mayo Clinic has long attracted talent to the region, broader growth depends on helping students in healthcare, research, and related fields find clear paths to stay, build careers, and grow with the community. The 2015 DMC plan forecasted demand for 354,000 square feet of education space to support this vision. About 40 percent has been built so far, led by the University of Minnesota Rochester and Mayo Clinic. Luther College and Winona State University have also expanded downtown, enriching Rochester’s educational landscape. Key Investments Discovery Square UMR Student Life Center 318 Commons Residence at Discovery Square University Square Luther College classrooms* Luther College housing* Winona State University on Broadway UMR land investment 1 2 3 4 5 6 7 8 built investments from the last 10 years unbuilt, planned horizontal infrastructure (streets and sewers) investments in the Downtown - both public and privately funded *programmatic investment 9 CORE AREA: LEARNING ENVIRONMENTS 44 44 Introduction 1 2 3 4 56 7 8 9 3rd Ave. SE Broadway Ave . Broadway Ave. Civic C e n t e r D r . Civic Center D r . 1st Ave.6th S t . 4th S t . 3rd S t . Cent e r S t . 2nd S t . Highway 52 02. DMC Today 45 DMC 2025 Development Plan Update University of Minnesota Rochester After years of hovering just below the milestone, the University of Minnesota Rochester (UMR) has officially surpassed 1,000 students, enrolling approximately 1,200 in Fall 2025. This marks an 80% increase in new undergraduates, jumping from 200 to 400 in a single year. “I was so happy,” said Chancellor Lori Carrell, reflecting on the achievement. The milestone aligns with UMR’s strategic growth plan, which outlines three phases: “bold” (1,000 students), “bolder” (1,500), and “boldest” (2,500). With current enrollment, UMR is firmly in the “bold” phase and approaching “bolder.” The university’s 400-bed Student Living Center, converted from the downtown DoubleTree Hotel, is now full, supporting the expanded student body. Carrell noted that while housing can accommodate up to 1,500 students, academic infrastructure is strained: “We are out [of classrooms and labs]… We’ve been creative. We’re done with that.” UMR’s growth is fueled by its strong healthcare focus and outcomes. Graduates have a 68% medical school acceptance rate, far above the national average of 44%. Carrell also credited the success of the “College in 3” initiative, which allows students to complete degrees in three years. “The prototype was done here by faculty,” she said, noting that over 60 campuses nationwide now offer similar programs. Source: Matthew Stolle, Post Bulletin, “UMR surpasses 1,000-student milestone, eyes next phase of growth,” September 30, 2023 CASE STUDY UMR Campus & Climate Action Plan UMR’s Campus and Climate Action Plan outlines partnerships with the City and DMC to advance shared climate resiliency targets through smart leasing, transit, and infrastructure strategies. Efforts include connecting campus buildings to a planned Thermal Energy Network and supporting Link BRT to improve mobility and reduce emissions. These actions align with broader resiliency plans focused on access to essentials and sustainable utilities. To learn more visit: https://tinyurl.com/2krrsewt CORE AREA: LEARNING ENVIRONMENTS 46 "We are entrepreneurs in education" - Chancellor of the University of Minnesota Rochester, Lori Carrell 02. DMC Today University of Minnesota Rochester: State of the Campus The University of Minnesota Rochester is entering a period of rapid, mission-driven growth—expanding enrollment, facilities, and partnerships to meet the rising demand for talent in health sciences. UMR’s latest State of the Campus address outlines major milestones and bold plans that strengthen its role as a key contributor to Rochester’s innovation ecosystem. Growing to Meet the Moment: Campus Expansion Plans The University of Minnesota is pursuing strategic investment for near-term facilities expansion of the Rochester campus, with an RFP expected in early 2026 for a portion of the needed facilities. The University plans to grow the campus to accommodate 2,500 students through: • A lab classroom expansion in Discovery Square. • New academic space, a learning innovation center, and campus gathering space in a downtown location. • A student residence and recreation district on University- owned land adjacent to Soldiers Memorial Field. • Expanded academic offerings • UMR faculty are advancing new academic programs to meet regional and statewide workforce needs, including: • Biomedical Health, supporting the growing population of pre-med and health sciences students. • Mental Health and Well-being, responding to shortages of mental health professionals in more than 80% of Minnesota’s counties. Together, these investments position UMR as a key partner in building Rochester’s next generation of talent and discovery. 47 DMC 2025 Development Plan Update CORE AREA: LEARNING ENVIRONMENTS Winona State University (WSU) Winona State University began its downtown Rochester expansion in 2017 by leasing space in the DMC district. In 2020, WSU deepened its presence by relocating Graduate Nursing faculty to the second floor of its Broadway campus, co-locating with the Graduate Social Work program to foster interdisciplinary collaboration. “Winona State is now a part of downtown,” said Jeanine Gangeness, then Associate Vice President of Academic Affairs. "Our Graduate Nursing faculty is excited to be immersed in the downtown community, which allows them closer contact and deeper collaboration with our community partners.” Source: Winona State University News, “WSU expands downtown Rochester footprint,” 2020. Luther College – Rochester Semester Launched in February 2020, Luther College’s Rochester Semester offers students from all majors immersive, career- focused learning experiences in Rochester. Participants engage in internships and active learning with organizations including DMC, the Gift of Life Transplant House, the City of Rochester, and multiple Mayo Clinic departments including biomedical research, informatics, finance, and IT. This initiative builds on Luther’s longstanding relationship with Rochester, where nursing majors have trained at Mayo Clinic and affiliated hospitals for nearly 40 years. The Rochester Semester expands that legacy, allowing students to integrate academic learning with real-world experience in one of the country’s leading healthcare and innovation hubs. It also strengthens the pipeline between regional higher education and Rochester’s workforce needs, aligning with broader goals of talent retention and ecosystem development. Source: Luther College News Release, “Luther College launches Rochester Semester,” February 2020. Rochester Community and Technical College Rochester Community and Technical College (RCTC) was founded in 1915 on a motion by Charles Mayo to the Rochester School Board and is Minnesota's oldest original community college. Today, RCTC serves more than 8,000 students annually and offers more than 70 programs and over 130 credential options with varying delivery options. The college has also partnered with Winona State University to establish more than a dozen Path to Purple programs that allow students to complete a four-year degree without leaving Rochester. Healthcare-Focused Programs: Because of the proximity of Mayo Clinic to RCTC, many of the programs offered are medically focused, and a few are awarded in conjunction with the Mayo School of Health Sciences. While not located in the DMC District, RCTC is part of Rochester's broader educational infrastructure that supports the DMC vision. The ecosystem includes partnerships between RCTC, the University of Minnesota-Rochester, Winona State University, 48 CASE STUDY The Big Dig DMC, Kraus-Anderson, and the City hosted “The Big Dig,” a free hands-on event at Soldiers Memorial Field where families explored upcoming improvements and youth engaged with construction equipment and professionals to spark curiosity about how public spaces are designed and built. To learn more visit: https:// www.postbulletin.com/news/local/dmcs-big-dig- draws-big-crowd 02. DMC Today and Mayo Clinic, creating pathways for students at all levels to contribute to Rochester's healthcare and innovation economy. The college's role is essential to ensuring that DMC's ambitious economic development goals are matched by a workforce capable of filling the growing number of healthcare, technical, and service positions in what's becoming America's premier medical destination. Mayo Clinic College of Medicine and Science At the heart of the DMC District, Mayo Clinic’s College of Medicine and Science trains more than 4,000 students, residents, and fellows each year across its five schools — including the Alix School of Medicine, Graduate School of Biomedical Sciences, and School of Health Sciences. Ranked among the nation’s best for research and clinical training, Mayo Clinic’s integrated education model links learning directly to discovery and patient care. This world-class academic ecosystem attracts talent from around the globe and anchors Rochester’s reputation as America’s City for Health. K-12 Education Opportunities A cradle-to-career approach recognizes that K-12 education serves as the foundation for building the skilled, diverse workforce necessary to support Rochester's transformation into a global health and wellness destination. Rochester Public Schools serves more than 18,100 students with over 90 spoken languages, reflecting the city's growing diversity alongside the DMC initiative. The K-12 system is essential for preparing students for careers in healthcare, bioscience, construction, technology, and other sectors critical to DMC's success. Rochester’s 2021 Bloomberg Global Mayors Challenge win launched the “Equity in the Built Environment” program, creating pathways for women of color into built environment careers through early K-12 engagement and co-design. By integrating experiential learning and initiatives like Downtown Pitch Day, the city is building a diverse, homegrown talent pipeline that supports DMC’s long-term growth. 49 DMC 2025 Development Plan Update Rochester’s hospitality and convention sector has become a cornerstone of the city’s identity as a global medical destination. With nearly 60 lodging options across hotels and short- term rentals, the DMC district now offers a diverse and growing network of accommodations that support patients, families, business travelers, and conference guests. These spaces do more than provide comfort; they shape visitor experiences, influence public perception, and contribute directly to the local economy. As the city continues to grow, strategic investment in high-quality, well-located lodging will be essential to sustaining Rochester’s momentum and ensuring that the benefits of tourism and medical travel are felt across the region.Rochester Farmers' Market Spyhouse Coffee, TownPlace Suites by Marriott Chateau Theatre Renovation built investments from the last 10 years horizontal infrastructure (streets and sewers) investments in the Downtown - both public and privately funded Key Investments Mayo Civic Center Hotel Indigo Rochester Mayo Clinic Area Hilton Rochester Mayo Clinic Area Historic Chateau Theatre The Kahler Grand Hotel Hyatt House TownePlace Suites by Marriott EVEN Hotels Staybridge Suites Courtyard by Marriott Rochester The Berkman Hotel Homewood Suites 1 2 3 4 5 6 7 8 9 10 11 12 CORE AREA: HOSPITALITY & CONVENTION 50 50 Introduction 1 2 3 7 8 9 10 11 4 5 6 12 3rd Ave. SE Broadway Ave . Broadway Ave. Civic C e n t e r D r . Civic Center D r . 1st Ave.6th S t . 4th S t . 3rd S t . Cent e r S t . 2nd S t . Highway 52 02. DMC Today 51 DMC 2025 Development Plan Update Built to Stay The DMC district’s growing hospitality sector, featuring approximately 27 hotels and 30 readily available short-term rentals, plays a vital role in supporting Rochester’s status as a premier medical destination, while also contributing meaningfully to the local and regional economy. These accommodations serve a wide range of visitors, including patients and their families, conference attendees, and business travelers. While the world-class medical facilities and renowned practitioners remain the prime draw for visitors, the availability of high-quality accommodation equipped with modern amenities and proximity to key destinations is a critical component of the overall visitor experience. Comfortable, accessible, and well-situated lodging can ease the stress of medical travel, enhance the appeal of business and leisure trips, and encourage longer stays—amplifying the economic benefits to the city, county, and region. These individual user experiences, in aggregate, shape public perception of the DMC district. Positive impressions can significantly enhance Rochester’s reputation, supporting broader objectives of economic diversification and talent attraction. Conversely, subpar hospitality experiences may hinder return visits, limit word-of-mouth promotion, and dampen the potential for sustained business growth. As such, the hospitality sector’s performance has direct and indirect implications for workforce opportunities, household economic stability, and the region’s long-term competitiveness. Continued investment in high-quality, strategically located accommodation will be essential to maintaining Rochester’s momentum as a destination of choice and ensuring that the city’s growth benefits are shared widely. CORE AREA: HOSPITALITY & CONVENTION Mayo Civic Center Hilton Rochester Mayo Clinic Area 52 New Hotel Rooms in DMC District in the last 10 Years Property Name Hotel Class Number of Units Hilton Rochester Mayo Clinic Area Upper Upscale 264 EVEN Hotels and Staybridge Suites Upscale 250 Hyatt House Upscale 172 TownePlace Suites Upper Midscale 110 The Berkman Hotel Luxury 83 UMR Student Housing Conversion -186 Total Hotel Rooms 693 Recent Development and Continued Progress The original 2015 DMC Development Plan set out a vision to both expand the quantity of hotel accommodation within the DMC district and elevate the overall quality of the hospitality network. With a focus on meeting the needs of both short- term and extended stays—and ensuring a diverse range of options for visitors—recent development efforts have prioritized higher-tier offerings, including upper midscale to luxury-rated hotels. At the 10-year midpoint, combined public and private investments have delivered nearly 700 new hotel rooms to the DMC district, reaching half of the plan’s forecasted demand of approximately 1,400 rooms. In addition to new construction, several related projects have upgraded and modernized existing hospitality properties, further strengthening the district’s appeal to a wide range of travelers. 02. DMC Today 53 DMC 2025 Development Plan Update CORE AREA: SPORTS & RECREATION Parks and open spaces are essential to Rochester’s livability, offering places for recreation, relaxation, and community connection. Within the DMC district, Soldiers Memorial Field, Central Park, St. Marys Park, and Mayo Park enhance the experience for residents and visitors alike. These green spaces foster a sense of belonging and identity, while also contributing to the district’s appeal as a vibrant, inclusive destination for all. Heart of the City Discovery Walk Soldiers Memorial Field built investments from the last 10 years horizontal infrastructure (streets and sewers) investments in the Downtown - both public and privately funded Key Investments Chateau Theatre Heart of the City Discovery Walk Soldiers Field Park 1 2 3 4 54 Introduction 13 4 2 3rd Ave. SE Broadway Ave . Broadway Ave. Civic C e n t e r D r . Civic Center D r . 1st Ave.6th S t . 4th S t . 3rd S t . Cent e r S t . 2nd S t . Highway 52 02. DMC Today 54 55 DMC 2025 Development Plan Update CORE AREA: SPORTS & RECREATION Discovery Walk Discovery Walk’s $18.9 million transformation reimagines four downtown blocks as a pedestrian-first corridor with heated sidewalks, public art, stormwater swales, and flexible civic spaces. It links Mayo Clinic to Soldiers Field and Discovery Square, strengthening connections between clinical care and emerging health tech innovation. Interactive lighting and seating zones support informal gatherings and programmed activities year-round. Heart of the City Heart of the City’s Phase 1 received over $17 million in public-private investment via the DMC initiative. Peace Plaza was redesigned with curbless streets, heated sidewalks, native landscaping, and interactive art. It now hosts events like Thursdays Downtown and community celebrations, reinforcing its role as a civic and cultural anchor. 56 Soldiers Memorial Field Soldiers Memorial Field received a $22 million investment from federal ($5M), state ($250K), DMC ($10M), and local referendum ($7M) sources. Improvements include a new aquatics center, inclusive playgrounds, basketball courts, nature play areas, and trail connections. The upgrades enhance accessibility, recreation, and community engagement across the 150-acre park. Chateau Theatre The historic Chateau Theatre was purchased by the City of Rochester using DMC funds for $6 million and subsequently received an additional $1.1 million in capital improvement funds from the DMC initiative to support essential renovations. Upgrades included removing the escalator and second floor, repairing the roof and windows, and updating restrooms to meet code. These investments aimed to reactivate the venue for concerts, lectures, and community events. 02. DMC Today 57 DMC 2025 Development Plan Update CORE AREA: LIVABLE COMMUNITIES The expansion of multi-family, mixed- use residential offerings within the DMC district has significantly contributed to its quality-of-life offerings, where residents can conveniently access work, essential services, and amenities within a short distance. By increasing the number of housing units, including multi-family residences and student housing, the district has made it easier for people to live closer to their workplaces, enhancing work-life balance. The Berkman The Maven Lofts at Mayo Park Key Investments Lofts at Mayo Park Flats on 4th Riverwalk Rochester Civic Center North The Parker* First & Banks Apartments The Maven on Broadway 501 on First The Hue 318 Commons Bryk on Broadway 1st Avenue Flats Residence at Discovery Square Loom Apartments Citywalk The Mayflower + First Homes Condos Med City Apartments The Berkman Avani Living Apartments The Gryff Apartments West Transit Village 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 *programmatic investment 58 Introduction DRA F T built investments from the last 10 years unbuilt, funded and approved investments horizontal infrastructure (streets and sewers) investments in the Downtown - both public and privately funded 1 3 4 6 7 8 11 13 14 15 2 59 10 12 16 18 19 21 20 17 3rd Ave. SE Broadway Ave . Broadway Ave. Civic C e n t e r D r . Civic Center D r . 1st Ave.6th S t . 4th S t . 3rd S t . Cent e r S t . 2nd S t . Highway 52 02. DMC Today 58 59 DMC 2025 Development Plan Update CASE STUDYThe integration of housing and office space within the DMC district fosters a vibrant urban environment, encouraging people to engage with nearby dining, entertainment, and cultural activities. As more professionals and residents choose to live and work downtown, demand for retail and restaurant offerings grows, contributing to the district’s overall vitality. At the same time, housing costs are rising due to national trends and local investment. To support anticipated growth, the 2015 DMC plan forecasted demand for 2,850 new residential units by 2035. So far, approximately 1,600 units have been added, marking significant progress in expanding housing options. The district also welcomed 400 student housing units through the conversion of UMR’s Student Life Center. Housing diversity has further increased with companion and patient hospitality houses, which provide essential accommodations for individuals receiving extended medical care and their families. In 2019, the Ronald McDonald House expansion added 28 rooms, bringing the total supply of extended stay units in the district to around 220. These developments reflect a growing emphasis on creating a mixed-use, live-work environment that supports a wide range of residents, from students and healthcare workers to patients and caregivers. As the district evolves, this blend of housing, employment, and amenities continues to shape a more inclusive and dynamic urban core. Bryk on Broadway Apartments The Bryk Apartments project is a $39.3 million mixed-use development featuring 180 units of workforce housing across 50%, 60%, and 80% AMI levels, plus 7,260 square feet of commercial space. Located along a major transit corridor near downtown Rochester, it integrates housing, retail, and transit access to support neighborhood revitalization and economic diversity. To learn more visit: https:// www.brykonbroadway.com/ CORE AREA: LIVABLE COMMUNITIES 60 New Downtown Housing in Rochester Since 2015 Year Project Units Rent Restricted 2017 Lofts at Mayo Park 29 No 2017 1st Avenue Flats 68 Yes all 60% AMI units 2018 501 on First 84 No 2018 Flats on Fourth 92 Yes 19 units at 50% AMI 2018 Riverwalk 152 No 2018 Avani Living 107 Yes 22 units at 60% AMI 2019 Ronald McDonlad House 32 Yes Philanthropic 2019 The Maven 155 No 2020 Residences at Discovery Square 138 Yes 29 units at 60% AMI 2020 The Berkman 347 No 2020 The Hue 50 No 2023 Bryk on Broadway 180 Yes 54 units @ 50% AMI 18 units @ 60% AMI 108 units @ 80% AMI 2025 Enclave Project (YMCA)219 No Total Housing Units 1,653 New Residential Units in Rochester over the last 25 Years Rochester Housing Coalition $20 Million Dollars Invested and 20 Programs & Policies Launched Affordable Living in Rochester Means... 2014 First Housing Study Completed DMC $5.6B Initiative Launched 2015 Olmsted County Housing Levy Established 2016 Coalition for Rochester Area Housing Launched with $4M Mayo Clinic Contribution 2018 City of Rochester Establishes Community Development Department 2018 Housing Study Update Completed 2020 Comprehensive Housing Needs Analysis for Olmsted County Released 2025 Lower rent/mortage costs Lower transportation costs Lower utility costs 02. DMC Today 61 DMC 2025 Development Plan Update CORE AREA: RETAIL, DINING, & ENTERTAINMENT A key goal of the DMC plan is to enhance the experience for everyone in Rochester, including patients, employees, visitors, and residents. The 2015 plan proposed expanding retail, dining, entertainment, arts, and cultural offerings. Since then, the district has added about 126,300 square feet of new retail space, nearly 40% of its 320,000-square-foot target. This growth occurred despite a challenging retail climate shaped by shifting consumer habits, e-commerce, and COVID-19. Nationally, many communities saw declines in traditional retail, but a rebound is underway. Retailers are adapting by creating experience-driven spaces that attract people with more than just transactions. Thai Pop Mezza9 Cafe Bitter and Pour Over 49 new restaurant openings in the last 10 years public realm built investments from the last 10 years new restaurant openings in the last 10 years horizontal infrastructure (streets and sewers) investments in the Downtown - both public and privately funded 62 Introduction 3rd Ave. SE Broadway Ave . Broadway Ave. Civic C e n t e r D r . Civic Center D r . 1st Ave.6th S t . 4th S t . 3rd S t . Cent e r S t . 2nd S t . Highway 52 02. DMC Today 62 63 DMC 2025 Development Plan Update Energizing the Urban Core Retail development, paired with investments in arts and entertainment, continues to strengthen downtown Rochester’s vitality and sense of place. A prime example is the renovation of the historic Chateau Theatre near Peace Plaza, now a cultural anchor that hosts regular events and draws thousands of visitors annually. Retail space in the DMC district has largely emerged through mixed-use developments that combine residential, office, and hotel uses. These projects foster dynamic environments by meeting varied needs and encouraging activity throughout the day. As a result, mixed-use development has been a key driver of retail expansion and a major contributor to the district’s overall appeal. Over the past decade, the DMC initiative has helped attract new retail and business investment to downtown Rochester. Strategic planning and targeted development have steadily increased available retail space in the district’s core. However, citywide trends reveal a more complex picture. Between 2012 and 2022, Rochester saw a 14.2% decline in retail establishments—nearly double the statewide drop and far above the national average—indicating deeper structural shifts in how and where retail operates. E-commerce has reshaped consumer habits, reducing foot traffic for traditional stores. The COVID-19 pandemic accelerated this shift, pushing more consumers online and prompting smaller retailers to adopt digital platforms. In response, retailers are reimagining physical spaces to focus on experience over transaction. Stores are evolving into destinations, offering interactive elements, events, personalized services, and entertainment-driven environments. This shift toward experiential retail reflects a broader industry trend aimed at revitalizing in-person shopping and distinguishing it from online alternatives. For Rochester, these changes present both challenges and opportunities. As the city adapts to a rapidly evolving retail landscape, strategies that blend convenience, creativity, and community engagement will be essential to sustaining a vibrant mix of retail offerings. * 3-day event **2-day event CORE AREA: RETAIL, DINING, & ENTERTAINMENT Thursdays Downtown Social Ice Year Average Attendance Per Week Year Average Attendance Per Week 2018 9,000 2018 4,800* 2024 9,500 2024 5,500** 64 * per website submissions Data provided by Rochester Downtown Alliance Limb Lab Rochester’s strong health ecosystem rooted in innovation, collaboration, and community care, creates a unique environment for retail aligned with health and economic development. Limb Lab reflects this spirit, offering artistic, personalized prosthetics in a transparent, glass- enclosed shop that invites public engagement. Its partnership with Mayo Clinic blends medical expertise with creative design to deliver inclusive, high-quality solutions. To learn more visit: https://limblab.com/ CASE STUDY Year # of events submitted to RDA Community Calendar 2020 463 2021 480 2022 487 2023 395 2024 522 2025 190* as of 4/28/25 Social Ice 02. DMC Today 65 DMC 2025 Development Plan Update CORE AREA: HEALTH & WELLNESS Mayo Clinic is laser focused on delivering world-leading care to people experiencing the most complex health care challenges imaginable. Excellence in healthcare is part of the core identity of Rochester, and hope and healing is an ethos shared by so many of the people of Rochester. It is both a culture and a way of being for a significant portion of the community and is truly something that makes Rochester unique in the world. At the same time, DMC is also supporting the growth of the experience of the City of Rochester outside the walls of Mayo Clinic, where the potential to build and invest in infrastructure that supports community wellness is a core opportunity. Key Investments Andersen Building Herman House Discovery Square ramp Discovery Square tenant fit-up Jacobson Proton Beam Facility expa Bold. Forward. Unbound. in Roches 2 3 4 5 6 7 8 1 built investments from the last 10 years significant renovation investment unbuilt, funded and approved investments horizontal infrastructure (streets and sewers) investments in the Downtown - both public and privately funded Anna-Maria and Stephen Kellen Building Jacobson Proton Beam Facility Bold. Forward. Unbound. in Rochester 66 Introduction ilding h ansion ster expansion 2 8 7 6 5 4 1 3rd Ave. SE Broadway Ave . Broadway Ave. Civic C e n t e r D r . Civic Center D r . 1st Ave.6th S t . 4th S t . 3rd S t . Cent e r S t . 2nd S t . Highway 52 02. DMC Today 66 67 DMC 2025 Development Plan Update CORE AREA: TRANSPORTATION Rochester’s DMC transportation strategy promotes a connected, multimodal system to reduce car dependence and support downtown growth. With investments in transit, biking, walkability, and shared mobility, including bike share, and ride-hailing, the city is shifting toward sustainable, accessible travel. The upcoming Link BRT system marks a major step in creating a vibrant, low-emission urban core. Lime Scooters North Broadway bike infrastructure Link BRT Key Investments 4th Street SW between 1st Avenue SW and 2nd Avenue SW Broadway Sidewalks North Broadway Complete Streets Link BRT 6th Street Bridge Center Street Bike Infrastructure 1 2 3 4 5 6 key investments from the last 10 years horizontal infrastructure (streets and sewers) investments in the Downtown - both public and privately funded 68 Introduction 2 3 4 6 6 5 1 3rd Ave. SE Broadway Ave . Broadway Ave. Civic C e n t e r D r . Civic Center D r . 1st Ave.6th S t . 4th S t . 3rd S t . Cent e r S t . 2nd S t . Highway 52 02. DMC Today 68 69 DMC Commuter Modality Breakdown 62% Drove Alone Drove Alone Carpool (9.7%) TransitTransit (4.2%)4.2%) Work from home 16% 57 30 83 88 DMC DistrictRochester Walk Score2 Bike Score2 of DMC workers live in Rochester 51% Data Source: 2023 & 2024 Census Data for Rochester, MN MSA; ESRI 2025; DMC 5 Year Update, 2020; DMC Lookback 2025 The amount of total commuters coming into the DMC District in 2020 was 35,250 and is projected to grow to 62,400 in 2035. DMC 2025 Development Plan Update TRANSPORTATION & MOBILITY Carpool Transit Bike/Walk Car 2015 2020 2024 2035 Target 66%71%76% 12%12%12% 10% 7%4%5%3% 4% Vision for a Multi-Modal Future The DMC Development Plan transportation strategy envisioned a connected, multimodal system that supports downtown Rochester’s growth while reducing automobile dependence. It outlines a forward-looking framework designed to expand high-frequency transit, safe walkable streets, robust biking infrastructure, and a “park-once” downtown environment served by a frequent circulator. The proposed investments aim to make downtown Rochester easy, affordable, and convenient to access for residents, patients, visitors, and employees from across the region. Anchored by ambitious mode-shift targets, including reducing drive-alone trips from 71% to 50% or less by 2035, the plan prioritizes transit, active mobility, and low-emission vehicles. By rebalancing street design toward people rather than cars and investing in shared parking, demand management, and multimodal access, the DMC framework will help transform downtown into a model of walkability and connected urban vitality. This approach not only enhances quality of life but also fuels economic opportunity, supporting Rochester’s evolution into a globally recognized destination for health, innovation, and sustainable urban living. CORE AREA: TRANSPORTATION MODE SHIFT 43%43% 30% 14% 13% 70 Progress Towards Sustainable Mobility Over the past decade, Rochester has steadily advanced a range of mobility initiatives that have reshaped how people move through the city and supported broader sustainability and accessibility goals. From 2016 to 2018, Integrated Transit Studies helped shape the DMC Plan’s multimodal transportation strategy, emphasizing transit, active mobility, and reduced car dependence to accommodate future growth. These studies addressed transit options, street design, parking strategies, and nonmotorized connectivity to promote livable downtown development without expanding roadways. In 2016, Rochester adopted the Nice Ride bike share program, which later evolved into a community-based initiative distributing free bikes to residents and local organizations. The arrival of ride-hailing services in 2017, followed by expanded bike infrastructure along Center Street and other key corridors in 2019, marked major steps in diversifying transportation options. Additional innovations, including Lime scooters, HourCar car-sharing, and the city’s first on-street bike box, demonstrated a commitment to affordable, sustainable alternatives to driving alone. In 2021, Rochester piloted Minnesota’s first low-speed autonomous shuttle service, showcasing its embrace of emerging mobility technologies. Looking ahead, the 2027 launch of the Link Bus Rapid Transit (BRT) system will deliver high-frequency, fare-free electric service along the 2nd Street corridor. Together, these efforts reflect Rochester’s transition toward a modern, multimodal transportation ecosystem that enhances access, reduces emissions, and supports long-term quality of life. Bike to Work Day 2025 Med City Mover Autonomous Shuttle Service 02. DMC Today 71 DMC 2025 Development Plan Update CORE AREA: TRANSPORTATION Link Bus Rapid Transit (BRT) Link BRT is a transformative project providing fare-free, high- frequency service through downtown Rochester along the 2nd Street corridor. Spanning 2.8 miles with 12 stations, Link will connect major destinations like Mayo Clinic campuses, the Mayo Civic Center, and the Downtown Waterfront Southeast area. The system will feature electric buses, level boarding, and amenities such as heated platforms, real-time information, and bike-friendly options. By offering reliable, all-day service, Link aims to reduce congestion, improve mobility, and support sustainable growth in one of Rochester’s busiest corridors, which handles over 21,800 vehicles and 13,000 transit riders daily. Service is expected to begin after construction concludes in summer 2027, with weekday operations from 5 a.m. to midnight and weekends from 8 a.m. to midnight. The project is a collaborative effort between Mayo Clinic, DMC, and the City of Rochester, with Mayo Clinic funding operations for 20 years and federal support through the Small Starts Capital Investment Program, including an $85 million FTA grant. Construction began in June 2025 and will proceed in phases, including utility upgrades and roadway improvements, with impacts managed through detours and signage. Beyond transit, Link will ease parking demand, strengthen pedestrian and biking connections, and enhance quality of life for residents, employees, and visitors advancing Rochester’s vision for a connected, livable, sustainable city. East Bound Saint Marys BRT Station FTA Grant Funding 72 02. DMC Today 73 DMC 2025 Development Plan Update CORE AREAS TAX CAPACITY Increased Activity Generates New Net Tax Revenue Public revenue growth over the past decade reflects the increased spending and earnings driven by development and expansion in the DMC District. 10 Year Total New Net Tax Revenue (2015-2024) Personal Income: $756 million Employment growth within the District is the leading source of net new revenue Sales & Use: $374 million Taken together, taxes on everyday purchases collected at the city, county, and state are the second leading source of revenue Business $244 million Business growth within the District added new taxable business income Property: $136 million Combined, the District's landowners and Mayo's non-exempt holdings have contributed a large sum of new revenue Capital Investment: $76 million Private developers are also a growing component of the District's tax generating base Lodging: $11 million On average, the hospitality industry has brought in over $1M in new net tax revenue per year 74 Value per Acre Analysis Total taxable value is one way to analyze the overall value of a city, but when it comes to understanding economic productivity, it is not always the most useful. The economic productivity of different land uses and development patterns can help cities understand which types of development generate the most tax revenue per acre. Consultant Urban3 was contracted by DMC and the City of Rochester to conduct an analysis that focuses on the “per acre” metric as a unit of productivity. Cities and counties are, at their simplest, finite areas of land. How that land is used has a direct effect on municipal budgets. The per acre metric normalizes total revenues and tax values, creating direct “apples-to-apples’’ comparisons utilizing land consumed as a unit of productivity. Using Value per Acre (VPA) to compare properties is like using miles per gallon (MPG) to compare cars. When comparing cars, the miles a car can go per tank isn’t typically referenced because it only reflects the size of the tank, not how efficient the engine is. Urban3 applies the same principle to measure the financial productivity of various development types across a community. 02. DMC Today DMC District Over Time Investment in the downtown DMC district during the first 10 years of the initiative showed significant appreciation in taxable value. After a very fast growth rate in the first five years of DMC, the COVID-19 disruption and the increased volatility and development costs since, slowed that rate of growth in 2020. An upswing in development applications shows signs of more than maintenance growth in the coming years (see section 3.0 for more details on permit volume). Value per Acre 75 DMC 2025 Development Plan Update Plan Alignment DMC’s vision is strengthened by alignment — connecting public, private, and institutional plans to move Rochester forward together. What is in this section: This section illustrates how the DMC Development Plan builds on and complements existing local and regional plans, from the City of Rochester’s Comprehensive Plan and transportation strategies to Olmsted County and state economic development goals. It also highlights alignment with Mayo Clinic’s Bold. Forward. Unbound. in Rochester initiative. The updated plan builds on the foundation of each plan before it and our community’s other planning efforts. This approach deepens our understanding of the principles that guide decision-making and how our community values are reflected. Why it matters: Alignment ensures that every investment reinforces a common direction — creating efficiency, maximizing impact, and reducing duplication. By coordinating priorities across agencies, partners, and institutions, DMC advances projects that deliver the greatest value to residents, patients, and visitors alike. This shared planning framework turns collaboration into measurable outcomes, positioning Rochester and Minnesota as global leaders in health innovation and sustainable urban development. 0.1 CONTEXT 76 Introduction C TODAY 03. DMC TOMORROW 77 DMC 2025 Development Plan Update 2016 DMC DEVELOPMENT PLAN 2015 City of Rochester Parks and Rec System Plan Discovery Square Master Plan DMC District Design Guidelines 2017 DMC and the City of Rochester have spent years shaping a shared vision for the city’s future through ambitious planning and engagement efforts. The 2025 DMC Development Plan Update builds on this foundation. It is not a standalone exercise, but a deliberate, integrative step that connects past work with future priorities. This update reviews prior plans, incorporates extensive community input, and applies strategic analysis of current conditions to ensure alignment across initiatives. By synthesizing insights from both past and present, the update reinforces a unified vision and advances a coordinated, inclusive, and data-driven approach to Rochester’s continued transformation. PLAN ALIGNMENT BUILDING ON PAST PLANS 78 A DECADE OF COORDINATED PLANNING 2020 DMC PLAN UPDATE 2020 City of Rochester Planning2Succeed Comprenehsive Plan 2040 City of Rochester Active Transportation Plan Riverfront Small Area Plan Rochester Unified Development Code UMR Campus and Climate Action Plan Olmsted County Health Assessment and Planning Downtown Waterfront SE Small Area Plan Announcement of Mayo Clinic Bold. Forward. Unbound, in Rochester Mayo Clinic 5-Year Update Rochester Vision 2050 Rochester Comprehensive Plan Update 2018 2022 2024 2019 2023 20252021 DMC PLAN UPDATE 2025 Reimagining 6th Ave. West & Reconnecting the Mobility Network Olmsted County Housing Needs & Assessment Kutzky Park and Downtown Public Realm Plan Rochest Historic District Vision Plan Sustainability & Resilience Community Work Plan New Rapid Tranist for a Growing, Equitable Rochester 02. DMC Today 79 DMC 2025 Development Plan Update Community Plans Over the past decade, Rochester has experienced a surge in planning activity, with more than 20 planning initiatives reflecting a strong commitment to coordinated growth and a shared vision for the city’s future. The following plans offer valuable context for the pivotal moment Rochester is at today, representing just a portion of the many thoughtful efforts contributing to the city’s rich planning landscape: • Mayo Clinic Bold. Forward. Unbound. in Rochester • City of Rochester Unified Development Code • City of Rochester Comprehensive Plan 2040 • Rochester Vision 2050 • Downtown Waterfront Southeast Small Area Plan • Downtown Riverfront Small Area Plan • Rochester Historic District Vision Plan • DMC Kutzky Park Area and Downtown Public Realm Plan • UMR Campus and Climate Action Plan • Olmsted County Housing Needs Assessment • Integrated Transit Studies Step 1: Identifying Common Themes from Past Plans Recognizing the importance of grounding the 2025 update in community priorities, our team undertook a comprehensive analysis of past planning efforts. The first step was analyzing plans from the past decade to identify recurring themes and values. We examined these plans in detail to identify recurring priorities and values expressed by the community. From this review, a set of common themes emerged, reflecting the voices and experiences of those who live in, work in, and visit Rochester. These themes provide a clear foundation for shaping a future that aligns with the community's aspirations: • Economic Development & Innovation • Public Spaces • Transportation & Connectivity • Housing • Well-being • Climate Resiliency PLAN ALIGNMENT CONNECTING PAST PLANS TO FUTURE PRIORITIES 80 Economic Development & Innovation Supporting a thriving local economy by fostering entrepreneurship, advancing workforce skills, and attracting investment through innovation, inclusive business growth, and strategic infrastructure. Public Spaces Enhancing the city’s identity and livability through vibrant public spaces, cultural destinations, and accessible, well-maintained infrastructure that invites community connection and exploration. Transportation & Connectivity Strengthening regional and local connections through safer streets, accessible design, and integrated transit options that support health, equity, and seamless movement for all. Housing Expanding access to diverse, affordable housing and housing options that meet the needs of all residents, including students, seniors, and the workforce. Well-being Strengthening community well-being through expanded access to care, healthy food, digital connectivity, as well as inclusive spaces that support mental health and a vibrant social life for individuals of all ages. Climate Resiliency Focusing on building climate-ready infrastructure and smart urban systems that reduce environmental impact, manage risk, and ensure long-term reliability and efficiency. 02. DMC Today 81 DMC 2025 Development Plan Update Step 2: Defining DMC's Three Strategic Priorities Building on these insights, DMC conducted an internal review to re-examine how the organization functions and its role in advancing Rochester’s long-term vision. This review was cross-referenced with the community themes identified in Step 1. Through this process, DMC surfaced three strategic priorities that will guide the 2025 plan update, ensuring the plan reflects both organizational strengths and the values consistently expressed by the community. Accelerate Health Innovation We will expand Rochester’s leadership in health discovery, technology, and entrepreneurship to fuel economic growth. By connecting research, startups, and investment, we’ll cultivate new ideas, businesses, and careers that improve lives and strengthen Minnesota’s economy. Design for Well-being We will design and invest in a city where health and wellness are embedded in the built environment, from housing and mobility to public spaces and climate resilience. Each project will enhance livability, sustainability, and inclusion, ensuring that health is reflected in the daily experience of residents and visitors alike. Drive Purposeful Growth We will use Rochester’s distinct health identity and partnerships to attract people, investment, and services that align with our vision for a thriving, values-driven community. Growth will be intentional, rooted in health, opportunity, and quality of life, so that prosperity benefits both residents and the state. Step 3: Aligning Three Strategic Priorities with Past Plans To ensure DMC’s strategic priorities are firmly grounded in the community’s past insights, our team conducted a distinct second layer of analysis. In Step 1, we cataloged several major plans to identify broad common themes. For this step, we revisited those same plans with a sharper lens, focusing specifically on how their goals, language, and thematic content align with DMC’s three strategic priorities. Our methodology involved systematically reviewing each plan to map points of alignment. We looked for direct messaging, such as stated objectives, action items, and guiding principles, as well as thematic connections that aligned with DMC’s three strategic priorities. This process allowed us to visualize areas of strong convergence, highlight gaps and identify opportunities for integration. By approaching this analysis with precision, we honored the depth of prior planning work while ensuring the 2025 update advances ideas that matter most to residents and stakeholders. PLAN ALIGNMENT CONNECTING PAST PLANS TO FUTURE PRIORITIES 82 Accelerate Health Innovation Drive Purposeful Growth Design for Well-Being Key Findings: Accelerate Health Innovation Several plans emphasize creating employment and industry diversification, despite not all of them explicitly mentioning how health innovation can be used as an economic catalyst. Key Findings: Design for Well-Being Climate resiliency and greenspace are key components of almost every plan, as well as their impacts on design. This strategic priority is most explicitly mentioned in recent plans. Key Findings: Drive Purposeful Growth Almost every plan mentions housing opportunities and several mention Rochester’s potential to leverage health & wellness to become a tourism hub. 02. DMC Today Key Findings The analysis revealed strong connections between DMC’s three strategic priorities and community plans, especially the Rochester Vision for 2050, the City’s Comprehensive Plan, the Parks and Recreation System Plan, the University of Minnesota Rochester Campus and Climate Action Plan, and the City’s Sustainability and Resiliency Work Plan. These alignments reinforce shared priorities and strengthen collaboration across public and private sectors. Building on this high-level alignment, the following pages take a closer look at how each of the three DMC strategic priorities show up in specific local and regional plans. By mapping the language, goals, and strategies of these plans to the three DMC strategic priorities, the analysis reveals where there is strong alignment, where gaps remain, and where there are opportunities for deeper collaboration to advance a shared vision for Rochester’s future. 83 DMC 2025 Development Plan Update Accelerate Health Innovation Business/Industry: Creation of five new buildings — nearly 2 million square feet of clinical space. “Care neighborhoods” integrate digital platforms, artificial intelligence, and real-time data to connect care teams around patient needs. Flexible spaces designed for translational research and clinical trials, linking discovery to patient care faster. Expansion of digital and automation infrastructure that enables Mayo Clinic_Platform capabilities and data-driven innovation. Design for Well-Being Health: Connecting indoor and outdoor spaces. Incorporation of biophilic design, natural light, and art reinforces the connection between environment and healing. Climate Resilience: New green infrastructure supports energy efficiency and climate resilience, aligned with DMC’s sustainability targets. Mobility: Seamless links to pedestrian, transit, and skyway systems promote accessibility and reduce vehicle dependence. Drive Purposeful Growth Economic Development: A $5 billion investment that fuels local job creation, supply chain activity, and long-term economic vitality. The investment also sustains partnerships with local institutions and workforce programs, ensuring inclusive community benefit. Arts/Culture: Campus expansion strengthens Rochester’s downtown core and reinforces its identity as America’s City for Health. Quality of Life: Integration of public spaces, art, and cultural experiences enhances daily life for residents, patients, and visitors. $5 Billion Mayo Clinic’s Bold. Forward. Unbound. in Rochester Investment Why it matters: Mayo Clinic’s $5 billion investment in Bold. Forward. Unbound. in Rochester is reimagining the downtown Rochester campus and introducing a combination of innovative care concepts, digital technologies and new facilities that will enable transformation and accelerate the future of care. In downtown Rochester, this vision is taking dramatic physical and strategic form. Through DMC, the city has laid the groundwork by creating the infrastructure, partnerships, and civic environment necessary for Mayo Clinic to set the course for the future of healthcare. PLAN ALIGNMENT BOLD.FORWARD.UNBOUND.IN ROCHESTER 02. DMC Today 84 85 DMC 2025 Development Plan Update Accelerate Health Innovation Businesses/Industry: Provides expanded mixed-use zoning; streamlined approval process; flexible commercial design standards; encourages adaptive reuse. Design for Well-Being Site Design: New developments should aim to preserve natural areas, include traffic calming and pedestrian features, accommodate transit stops, and provide usable recreation spaces for multifamily uses. Building Design: All primary buildings must feature high- quality materials, consistent architectural treatment, avoid blank façades, ensure visual interest, and pedestrian orientation. Transit access: Promotes transit-oriented development (MX-T) around transit stops – reduces parking requirements, regulates pedestrian-oriented urban design, requires pedestrian-oriented streets or walkway systems extending from transit stops. Drive Purposeful Growth Arts/Culture: Supports plazas, parks, and open spaces to host festivals, concerts and public art installations. Housing: Promotes and allows for more affordable housing; permits city-wide ADUs; allows for smaller minimum lot sizes, encouraging compact development; expands multi-family zoning. Why it matters: The UDC update modernizes Rochester’s zoning standards to reflect the goals of the Comprehensive Plan, supporting housing diversity, climate resilience, and streamlined development. COMMUNITY ENGAGEMENT 267 estimated people at hosted/public events hours of in-person and virtual opportunities for community members to engage through hosted events languages used to engage 1,143 3 PLAN ALIGNMENT ROCHESTER UNIFIED DEVELOPMENT CODE 86 focus groups 02. DMC Today 87 DMC 2025 Development Plan Update Why it matters: The comprehensive plan develops a vision, guiding principles, and strategies outlining Rochester’s future trajectory. The plan highlights the need for enhanced transit services, designing livable neighborhoods, infrastructure maintenance, land use patterns, and an overall big-picture plan for the city. Accelerate Health Innovation Businesses/Industry: Emphasizing fiscal sustainability through diverse industries and growth is one of the plan’s core principles. Workforce development: It is critical for Rochester to consider how it can provide a competitive urban environment to attract the younger generation of future employees. Design for Well-Being Walkability and Transit Access: Directs new development toward infill and redevelopment in existing urban areas and along transit-supportive corridors, leveraging existing infrastructure to reduce sprawl, lower service costs, and promote mixed-use, walkable neighborhoods connected by enhanced transit. Sustainability: Plan aligns land use and transportation investment to guide orderly expansion, prioritize reinvestment in built-up areas, and ensure fiscally and environmentally sustainable development patterns. Drive Purposeful Growth Housing: Provide sufficient infill and redevelopment opportunities that broaden the variety of housing. Recreation: Emphasizes vibrant public spaces, and easy access to parks and recreational amenities. Based on the over 7,000 public comments received during the 2018 planning process, as well as over 990 comments received from the Mayor’s Vision 2050, Community Engagement Open House, and the Industrial Land Development Open House from the 2024-25 planning process, the P2S 2040 Plan Framework formalizes the vision and principles the community is committed to building. COMMUNITY ENGAGEMENT PLAN ALIGNMENT ROCHESTER COMPREHENSIVE PLAN 2040 %&'(90 %&'(90 )*14 )*52 )*52 )*63 GVWX8 GVWX21 GVWX16 GVWX14 GVWX3 GVWX9 GVWX2 GVWX44 GVWX36 GVWX44 GVWX4 GVWX34 GVWX33 GVWX25 GVWX8 GVWX15 GVWX11 GVWX20 GVWX3 GVWX1 GVWX22 ?@A@30 16 St SE 2 St SW 11 A v e N W 37 St NW 4 StSE 65 St NW EltonHills DrNW 7 St NE Center St W Broa dwa y Ave S 11 A v e N E 7 St NW 20 St SW 6 St SW 14 St NE WRiver Pkwy NW 14 A v e SW Valle y high D rNW 4 A v e N W 6 St SE 41 St NW 48 St SW 50 A v e N W 3 Av e S E 37 St NE 14 St NW 8 A v e S E 9 Av e NW 11 A v e S W Viola Rd NE 48 St SE 75 StNW E Ci r c leDr N E Country Club Rd W Valleyhigh Rd NW 60 A v e N W W C i r c l e D r NW Co u n t y R d 1 S E St B r i d g e t R d S E Salem Rd SW Co u n t y R d 3 N W Broad w a y A v e N 75 St NE Ba m b e r V a l l e y Rd S W County Rd 16 SE Marion R d S E WCircleDr SW 11 A ve S E 55 A v e N E Co u n t y R d 1 5 S W College View Rd E Simpson RdSE 55 St NW County Rd 20 SE Co u n t y R d 8 S W Co u n t y R d 3 S W County Rd 21 NE Mayowood Rd SW 18 A v e N W Co u n t y R d 1 5 8 N W 60 A v e S W County Rd 117 SW 18 A v e SW 60 St SW W R i verRd NW 20 St SE 40 St SW 48 St NE 90 StNW 19 St NW 31 A v e N W 50 A v e S E 20 St NE 37 St SE Co u n t y R d 120 NE Co u n t y R d 1 1 5 S W 55 St SE 30 Av e SE 45 St SE CountyRd 1 2 6 S W 85 St NW Co untyRd 1 39 SE Ma p D o c u m e n t : \ \ a r c s e r v e r 1 \ b m i _ g i s \ M I N N E S O T A \ R O C H \ 0 T 6 1 3 4 0 2 0 0 0 0 \ P r o \ R o c h e s t e r _ C o m p _ P l a n _ U p d a t e . a p r x | U s e r n a m e : d a v i d s a | D a t e S a v e d : 6 / 2 / 2 0 2 5 2 : 4 4 A M Legend City Limits Urban Service Area Destination Medical Center Boundary Parcels Lakes and Rivers Railroad Future Land Use Low Density Residential Traditional Core Neighborhood Medium Density Residential High Density Residential Downtown Core Downtown Fringe Mixed Use Transit Oriented Centers Mixed Use Transit Supportive Corridors Transit Supportive Neighborhood Commercial & Business Development Industrial Small Employment Development Medical Campus Educational Campus Civic Facilities Airport Facilities Parks & Open Space Urban Reserve 0 1Miles Source: MnGeo, Olmsted County !I Comprehensive Plan City of Rochester, MN Future Land Use June 202502. DMC Today 88 89 DMC 2025 Development Plan Update Accelerate Health Innovation Businesses/Industry: Highlights the importance of encouraging industry expansion, business development, and support for small businesses. It emphasizes the need for creating an easy, yet responsible, experience for small businesses in Rochester and developing new tools to encourage growth in both new and current businesses. Workforce development: Advocates for diversifying job opportunities. Design for Well-Being Green space access: Invest in sustainable, green spaces; preserve parks and clean up natural resources like rivers/ lakes. Health (physical/mental): While Mayo creates a positive impact, healthcare accessibility and affordability are still concerns. Climate resilience: Need for renewable energy. Transit access: Create more transportation options. Non-motorized access: Need for road and sidewalk maintenance, more bike lanes. Drive Purposeful Growth Housing: Advocates for housing affordability for low/ medium income individuals. Education: Advocates for funding youth programs and education. Arts/Culture: Advocates for more farmer’s markets, outdoor amphitheatres, extending arts center. Why it matters: By 2050, Rochester aims for near-zero poverty and hunger while ensuring full housing options for all income levels. 80% of feedback cited affordability as the top barrier to well- being. COMMUNITY ENGAGEMENT PLAN ALIGNMENT ROCHESTER VISION 2050 990 public comments received and summarized using GroupSolver, an intelligent digital survey platform. 02. DMC Today 90 91 DMC 2025 Development Plan Update Accelerate Health Innovation Business/Industry: Advocates for a mixed-use neighborhood (residential, retail, office, civic spaces, hospitality/entertainment.) Economic Development: Replacing a parking lot with a mixed-use district turns idle land into a job-creating, revenue-generating hub for housing, retail, and innovation. Design for Well-Being Green Space: Reconnects the city to the riverfront through walkable public space (pedestrian promenade, riverfront plaza) and green infrastructure. Green Infrastructure: Plan reduces the amount of impervious surfaces from 95% to 85%, increases tree canopy by over 500%, and introduces an innovative district- wide stormwater management approach by combining multiple Best Management Practices. Non-motorized: Includes a new 6th Street bridge; connected streets and block patterns; provides connected bike and pedestrian routes. Transit: Integrated with Link BRT; highlights Transit-Oriented Development (TOD) urban design recommendations. Drive Purposeful Growth Arts/Culture: Incorporates adaptive reuse of historic buildings. Housing: Incorporates housing within mixed-use fabric. Why it matters: Redeveloping this 60-acre district will cut impervious surfaces from 95% to 85%, transforming an underutilized area into a vibrant, sustainable urban neighborhood. COMMUNITY ENGAGEMENT 500+ participants community forums chat room comments 400+ 4 PLAN ALIGNMENT DOWNTOWN WATERFRONT SOUTHEAST SMALL AREA PLAN 02. DMC Today 92 93 DMC 2025 Development Plan Update Accelerate Health Innovation Businesses/Industry: The plan emphasizes supporting local, diverse, and entrepreneurial businesses. It proposes ground floor commercial spaces, market halls, and adaptive reuse of historic buildings (Red Owl and Time Theatre) to host small businesses and community events. Design for Well-Being Green Space: The plan adds 2.5 acres of new open space, reduces impervious surfaces, and increases tree canopy fivefold. It includes terraced landscapes, native plantings, and riverfront gardens to enhance biodiversity and recreation. Energy Efficiency: Sustainability is emphasized through adaptive reuse of buildings, integration with a proposed district energy network, and use of green infrastructure. Health: Health is a core theme, with the plan promoting active lifestyles through trails, recreation, and access to nature. Drive Purposeful Growth Tourism: The riverfront is envisioned as a year- round destination with public art, events, and cultural programming. Enhancements aim to attract both residents and international visitors, especially those connected to the Mayo Clinic. Housing: The plan includes 500,000–700,000 square feet of new mixed-use development with a focus on affordable and diverse housing types. Why it matters: Rochester’s riverfront is over 90% impervious surface today, dominated by parking lots and underutilized buildings. Transforming these 5.5 acres into vibrant public spaces and mixed-use development will reconnect the city to the Zumbro River. COMMUNITY ENGAGEMENT 12 participants public meetings focus groups 400+ 5 PLAN ALIGNMENT RIVERFRONT SMALL AREA PLAN 02. DMC Today 94 95 DMC 2025 Development Plan Update Accelerate Health Innovation Business/Industry: The plan emphasizes supporting small businesses and local owners by enhancing the public realm, drawing more foot traffic, and offering financial tools such as grants, loans, and infrastructure programs. By creating a more attractive and vibrant district, it bolsters economic activity, tourism, and downtown vitality, reinforcing health and place as key strategies of economic growth. Design for Well-Being Green infrastructure: Streetscape improvements (plantings, stormwater features, sustainable materials) are part of creating a resilient, welcoming district. Transit access: The plan coordinates with upcoming Link Bus Rapid Transit and 23 bus routes serving the district, ensuring equitable mobility. Drive Purposeful Growth Arts/Culture: The plan positions the district as a hub where art, design, and cultural storytelling infuse energy and vibrancy. Through public art, historical interpretation, and cultural programming, it seeks to celebrate the district’s identity, create a sense of place, and attract residents and visitors alike. Why it matters: Rochester’s historic district vision plan aims to celebrate historic landmarks and highlight how the preservation of these places create unique public realm experiences. PLAN ALIGNMENT HISTORIC DISTRICT VISION PLAN COMMUNITY ENGAGEMENT 20 participants in total booth visitors during Thursdays Downtown Pop Up interviewees during focus groups 200 75 96 02. DMC Today 97 DMC 2025 Development Plan Update Why it matters: This plan responds to the changes in Rochester that are underway by laying out strategies to maintain the character and public realm of the city, ensuring Rochester remains a livable, welcoming city for all. Accelerate Health Innovation Business/Industry: Incentivizes and supports small local businesses through active and diverse ground floors. Design for Well-Being Green Space Access: Strengthen Kutzky Park’s green, leafy character by increasing tree canopy coverage, green pockets, and connection to regional natural assets. Health (physical/mental): Promotes healthy lifestyles for all who live in, work in, and visit Rochester. Transit access: Create a comfortable waiting experience and seamless, multimodal connections. Non-motorized access: Prioritize safer streets for pedestrians and cyclists, and foster a stronger culture of biking. Drive Purposeful Growth Housing: Includes strategy for gentle density (townhomes, mid-rise, etc.), mixed-use residential spaces, and tracking residential tenure. Quality of Life: Emphasizes enhancing Kutzky Park’s identity as a livable, walkable neighborhood. Arts/Culture: Emphasizes the need for vibrant streets, increased public art installations, and varied cultural/arts programming such as Thursdays Downtown.50 attendees at 2 open houses survey responses individuals engaged representing neighborhood interests, hospitality, healthcare, small business, real estate development, faith institutions, and advocacy.70 88 COMMUNITY ENGAGEMENT PLAN ALIGNMENT DMC KUTZKY PARK AREA & DOWNTOWN PUBLIC REALM PLAN 02. DMC Today 98 Why it matters: Talent as Infrastructure: University of Minnesota Rochester Update In December 2025, University of Minnesota Rochester outlined a multi-phase downtown facilities expansion strategy, reinforcing downtown Rochester as a walkable, innovation-centered community. “In this time of growth for Rochester, spurred by the bold actions of DMC, the City, and Mayo Clinic, the University of Minnesota is ready to expand its impact, its downtown footprint, and its commitment to building the future health and life sciences workforce for Minnesota,” said University of Minnesota President Dr. Rebecca Cunningham. The expansion builds on UMR’s “community campus” model, embedding academic, laboratory, and student-life spaces within existing downtown buildings near Mayo Clinic, Discovery Square, and employers. Since opening in 2009, UMR has grown from a first graduating class of 52 students in 2013 to more than 1,100 students today, many of whom live, learn, and work within DMC subdistricts. In 2025, UMR was designated an “Opportunity University” by Carnegie and the American Council on Education and generated an estimated $89.9 million in total economic impact, according to the University’s most recent economic impact study. UMR’s long-term vision includes expanded labs and classrooms in Discovery Square, a future academic “heart of campus,” and new student residential and recreational facilities, each aligned with shared DMC priorities around talent pipeline development, experiential learning, sustainability, and community vibrancy. 99 DMC 2025 Development Plan Update Accelerate Health Innovation Business/Industry: Continue to partner with Mayo Clinic, DMC, City to co-locate facilities & complete urban design enhancements for livability. Design for Well-Being Health (physical/mental): Partner to ensure UMR community has access to physical and mental health resources; develop an equitable food access plan. Climate resilience: 85% greenhouse gas emissions reduction by 2034 (100% carbon-free Rochester Public Utility); UMR identified buildings existing within a 500 year flood zone - calling for future buildings to be designed to a base flood elevation; provide UMR community with guidance on safety during extreme weather events. Green Infrastructure: Create design guidelines for buildings, infrastructure, and land that mitigate future climate projections. Transit access: The entire UMR fleet will be battery electric or plug-in hybrid electric by 2034. Non-motorized access: By 2034, over 50% of employees and 60% of students commute by bike, on foot, transit or carpool; expand green transit, EV charging, and connect One Discovery Square via skyway/ subway. Drive Purposeful Growth Education: UMR anticipating need for new construction (to meet Minnesota sustainable energy standards; and connect to City’s future TEN – geothermal network.) Recreation: Facilitate multi-constituent indoor recreation facility located downtown. Arts/Culture: Establish wayfinding signage in Heart of the City and throughout Downtown. PLAN ALIGNMENT UMR CAMPUS & CLIMATE ACTION PLAN 02. DMC Today 100 the University of Minnesota Rochester (UMR) campus to accommodate continued enrollment growth and meet pressing workforce needs in health and life sciences 101 DMC 2025 Development Plan Update Accelerate Health Innovation Business/Industry: Mayo Clinic expected to grow staff by 2% per year, consistent with historical averages. Execution of Bold. Forward. Unbound. in Rochester plan is expected to increase the need for housing opportunities in the region. Workforce development: Resident employment in Olmsted County increased by 14% between 2015-2024. Design for Well-Being Energy Efficiency: The study supports initiatives like RENEW (Rochester Energy Efficiency and Weatherization) which helps income-qualified homeowners upgrade insulation, HVAC systems, windows and more. Drive Purposeful Growth Housing: Despite $20 million in housing investments and 1,000 new units added since 2020, Olmsted County’s projected housing needs remain unchanged at 18,000 by 2035, while affordable housing demand has dropped 26%. Rising mortgage rates, low supply, and an aging population are driving calls for targeted senior housing and inclusive homeownership strategies, especially for low-income residents and people of color. 18,000 new units projected in demand for Olmsted County by 2035, including 5,880 units for seniors Why it matters: the region must act now to ensure housing keeps pace with population growth, aging demographics, and workforce needs. The current rental vacancy rate of just 2.8%—well below the 5% market equilibrium— signals pent-up demand and limited options for residents across income levels. Nearly PLAN ALIGNMENT COMPREHENSIVE HOUSING NEEDS ANALYSIS FOR OLMSTED COUNTY 102 02. DMC Today 103 DMC 2025 Development Plan Update 30% of workforce on transit by 2035 60% reduction in single-occupancy vehicle trips by 2040 Why it matters: DMC's Integrated Transit Studies ensures efficient, inclusive, and sustainable mobility, reducing congestion and parking demand while creating a vibrant, connected downtown that attracts investment and improves quality of life. Accelerate Health Innovation Business/Industry: Emphasizes creating a park-once downtown environment supported by high-quality transit and shared parking. Design for Well-Being Transit access: The plan introduces a Primary Transit Network and BRT circulator with frequent, reliable service, connecting park-and-ride facilities and mobility hubs to downtown. These investments aim to bring 30% of the workforce to downtown on transit by 2035, reducing single- occupancy vehicle trips by 60%. Non-motorized access: Complete Streets and the trail network create safe, attractive spaces for walking and biking, promoting active transportation and wellness. Drive Purposeful Growth Quality of Life: Enhanced public spaces will serve as signature placemaking features, attracting residents, visitors, and businesses. Mobility hubs will integrate retail and service amenities, creating vibrant mixed-use destinations. These improvements catalyze economic development and support Rochester’s vision for a dense, diverse, 24-hour downtown. Plan Target: PLAN ALIGNMENT INTEGRATED TRANSIT STUDIES 104 02. DMC Today 105 DMC 2025 Development Plan Update 03. DMC TOMORROW 106 Introduction 107 0.1 CONTEXT DMC 2025 Development Plan Update 03. DMC TOMORROW Rochester’s commitment to being America’s City for Health is more than a tagline; it’s a competitive strategy that positions health as our shared value and economic driver. This plan advances a city where health shapes how we innovate, how we build, and how we live. Anchored by Mayo Clinic, the world’s number one hospital, and powered by DMC, a one-of-a-kind economic development model that leverages health as a shared value, Rochester stands alone. No other city in the world combines this scale of medical excellence with an intentional strategy to grow through health itself. Health is our advantage. It fuels our economy, shapes how we build, and drives the purposeful growth that inspires people to call Rochester home. This is the moment to sharpen our focus as we look to the future. This chapter looks at how DMC will use three key strategies to guide future decision making: Accelerate Health Innovation, Design for Well-Being, and Drive Purposeful Growth. An Inflection Point.........................................................Accelerate Health Innovation......................................Design for Well-Being...................................................Drive Purposeful Growth.............................................Looking Forward........................................................... 109 121 141 153 167 108 C TODAY 03. DMC TOMORROW Introduction 109 DMC 2025 Development Plan Update DMC is a public-private partnership designed to leverage the growth of Mayo Clinic and other businesses and institutions within Rochester to create economic opportunity for the local community, region, and state as a whole. From the vantage point of 2025, ten years into the DMC initiative, we find ourselves at a critical inflection point. Multiple forces are converging simultaneously: historic investment announcements, unprecedented construction activity, accelerated healthcare sector growth, and coordinated infrastructure readiness. Together, these elements create a once-in-a-generation opportunity to capitalize on momentum and make strategic choices that will shape Rochester's trajectory for decades to come. Bold. Forward. Unbound. in Rochester: Minnesota's Largest Construction Project Ever In November 2023, Mayo Clinic announced a $5 billion commitment to expanding its Rochester campus—the largest investment in Mayo's 160-year history and the largest public or private investment in Minnesota's history. Bold. Forward. Unbound. in Rochester is a multiyear strategic initiative that advances Mayo Clinic's Bold. Forward. strategy to Cure, Connect, and Transform healthcare for the benefit of patients everywhere. AN INFLECTION POINT WHY NOW MATTERS The initiative reimagines Mayo Clinic's downtown Rochester campus, introducing new facilities with a combination of innovative care concepts and digital technologies. According to Mayo CEO Gianrico Farrugia, the project will "blur the lines across hospital, clinic, and digital care to help our teams anticipate our patients' needs, accelerate more cures and greater connections to our patients." This unprecedented investment signals Mayo's long- term commitment to Rochester and creates a catalyst for complementary development. The scale and timeline of this project, with facilities opening between 2028 and 2030, establishes a clear window for the community to prepare infrastructure, attract supporting businesses, and position Rochester to maximize the economic and social benefits of this transformational expansion. 110 Year Average permit value per year ($USD)Rate of Growth by decade 2005-2014 $290,230,845 baseline 2015-2024 $520,462,135 79% Year end 2025 $1,186,484,386 128% 03. DMC Tomorrow Overall Construction Permit Volume in Rochester: A New Record in 2025 The DMC initiative envisioned significant private investment beyond Mayo Clinic alone, and overall construction permit volume demonstrates that this vision is materializing. Community-wide growth has accelerated dramatically, with the jump from 2024 to 2025 marking a particularly significant milestone. Multiple developers and businesses are making simultaneous commitments to Rochester, creating a narrow window where coordinated planning and investment can ensure these individual projects add up to a cohesive, thriving district rather than disconnected developments. This surge in activity won't last indefinitely—capturing its full potential requires strategic action now. Post-COVID Growth of the Healthcare Sector The Rochester Metropolitan Statistical Area (MSA) has a significant concentration of the national Healthcare and Social Assistance Gross Domestic Product (GDP), reflecting the strength of Mayo Clinic. This concentration is particularly noticeable when considering Rochester's size by analyzing the Healthcare and Social Assistance GDP per resident. Rochester has nearly five times the GDP per resident than the national average, and more than twice the GDP per resident than the next highest MSA. Because Rochester is a well-established healthcare hub, its Healthcare and Social Assistance GDP growth is similar to the growth rate in the US overall. Both national and local trends show strong healthcare growth after COVID-19. 111 DMC 2025 Development Plan Update AN INFLECTION POINT WHY NOW MATTERS This accelerated growth creates immediate demand for supporting infrastructure, housing, amenities, and complementary businesses. The community must act decisively to ensure this economic expansion translates into broad-based prosperity, quality of life improvements, and the kind of vibrant urban environment that attracts and retains the talent needed to sustain this growth trajectory. Generational Infrastructure Investment in the DMC District Another defining aspect of the DMC District's development is the pace of horizontal infrastructure improvements: streets, sewer capacity, streetscape enhancements, and related systems. Through combined public investments by the City of Rochester and DMC during the first ten years, multiple private development improvements, and infrastructure projects already underway, over 71% of the linear feet of streets within the DMC District will have received infrastructure investment. Infrastructure investments of this scale typically occur over 50-100 years as streets reach the end of their natural lifecycle. Rochester has a rare opportunity to rebuild nearly three-quarters of the DMC District's street infrastructure within a concentrated timeframe, allowing for coordinated implementation of 21st century systems: enhanced utilities, complete streets design, sustainable stormwater management, and digital connectivity, all at once. This concentration of infrastructure readiness, combined with Mayo's Bold. Forward. Unbound. in Rochester construction timeline and surging private investment, creates ideal conditions for transformative district-wide development. Missing this window would mean waiting generations for similar opportunities. The City-DMC-Mayo Clinic approach to the infrastructure investments happening in the surrounding almost 30 city blocks. 112 The Inflection Point: Why Now Matters These four forces—Mayo's historic expansion, record- breaking private investment, accelerated healthcare sector growth, and concentrated infrastructure readiness—are converging in 2025. Individually, each represents significant opportunity. Together, they create conditions that occur perhaps once per century in a community: the alignment of anchor institution commitment, market confidence, economic momentum, and public infrastructure capacity. The choices Rochester makes in the next 2-3 years will determine whether this inflection point becomes a true transformation, establishing Rochester as a global model for health innovation and livable urbanism, or simply a period of growth that doesn't fully realize its potential. The updated DMC Development Plan provides the strategic framework to seize this moment. The planned and funded street infrastructure in the surrounding Bold. Forward. Unbound. in Rochester impact area. 03. DMC Tomorrow 113 DMC 2025 Development Plan Update Destination Medical Center began with a bold vision to position Rochester, Minnesota as the world’s leading destination for health and wellness. A decade into this 20- year initiative, that vision is becoming reality. DMC has helped catalyze 17,500 new jobs, attracted $1.8 billion in private investment, and supported the development of 400,000 square feet of research and innovation space. Downtown housing has doubled, and 15 underutilized city blocks have been transformed into vibrant, connected places. These outcomes reflect the strength of aligned leadership, deep community engagement, and a shared commitment to excellence. As Rochester enters the second half of the initiative, DMC is sharpening its focus through three strategic priorities: Accelerate Health Innovation, Design for Well- Being, and Drive Purposeful Growth. These priorities define Rochester’s competitive strategy as America’s City for Health. They are not a list of projects, but a framework for guiding investment, shaping decisions, and aligning efforts across sectors. With Mayo Clinic at the center and a growing ecosystem of partners, Rochester is becoming a national model for health- driven urban development. This vision captures the progress made and sets the stage for the next decade, driven by purpose, guided by strategy, and committed to lasting impact. Kellen Building Before Kellen Building After ACCELERATE HEALTH INNOVATIONAN INFLECTION POINT AMERICA'S CITY FOR HEALTH: FROM TAGLINE TO COMPETITIVE STRATEGY 114 03. DMC Tomorrow The Berkman BeforePeace Plaza Before The Berkman AfterPeace Plaza After DRIVE PURPOSEFUL GROWTHDESIGN FOR WELL-BEING 115 DMC 2025 Development Plan Update AN INFLECTION POINT THREE STRATEGIC PRIORITIES Accelerate Health Innovation We will expand Rochester’s leadership in health discovery, technology, and entrepreneurship to fuel economic growth. By connecting research, startups, and investment, we’ll cultivate new ideas, businesses, and careers that improve lives and strengthen Minnesota’s economy. Drive Purposeful Growth We will use Rochester’s distinct health identity and partnerships to attract people, investment, and services that align with our vision for a thriving, values-driven community. Growth will be intentional, rooted in health, opportunity, and quality of life, so that prosperity benefits both residents and the state. Design for Well-Being We will design and invest in a city where health and wellness are embedded in the built environment, from housing and mobility to public spaces and climate resilience. Each project will enhance livability, sustainability, and inclusion, ensuring that health is reflected in the daily experience of residents and visitors alike. 116 Kendall Square at MIT Kendall Square at MIT is a globally renowned innovation district where academia, biotech, and tech converge. Anchored by MIT, it hosts startups and giants like Google and Biogen. Innovation here drives Cambridge’s economy, generating over 35,000 jobs, attracting billions in venture capital, and contributing one-third of the city’s property taxes, while fueling education, housing, and public services. To learn more visit the Kendall Square Association website: https://kendallsquare.org/ A CASE STUDY IN DESIGNING FOR WELL-BEING A CASE STUDY IN DRIVING PURPOSEFUL GROWTH Education Sector as a Draw to Ann Arbor, MI Ann Arbor’s education sector, led by the University of Michigan, attracts students, researchers, and entrepreneurs, fueling innovation and job growth. Its academic excellence supports a thriving arts scene, medical research, and tech startups. Events like the Ann Arbor Art Fair and university sports draw visitors, while walkable neighborhoods and cultural amenities make it livable. To learn more visit the Ann Arbor Spark webpage: https://annarborusa.org/why-ann- arbor/quality-of-life/ Creating Community Gardens for All Ages This initiative by 8 80 Cities promotes inclusive community gardens designed for people of all ages and abilities. By transforming underused spaces into vibrant, shared environments, the project fosters social connection, healthy living, and intergenerational engagement. These gardens go beyond food production; they create places where neighbors can gather, learn, and thrive together. To learn more, visit: https://www.880cities.org/portfolio_page/creating- community-gardens-for-people-of-all-ages/ A CASE STUDY IN ACCELERATING INNOVATION 03. DMC Tomorrow 117 DMC 2025 Development Plan Update Understanding Potential The economic analysis in the following pages first benchmarks the future size of industry clusters in Rochester based on local, competitor city, and national growth trends and capture rates to show opportunities for growth and potential risks. Growth benchmarks are used to identify the enabling vertical development, horizontal development, policy, and program interventions. The future potential analysis is organized by the DMC Plan Update's three strategic priorities: Accelerate Health Innovation, Design for Well-Being, and Drive Purposeful Growth, to frame how Rochester and DMC can unlock future potential. Accelerate Health Innovation • Research & Technology (“HealthTech”): Innovation and startups, including MedTech, BioTech, and Healthcare AI. • Health & Wellness: Encompasses healthcare, care services (like eldercare and childcare), and wellness industries that support lifestyle and recovery. Design for Well-Being • Analysis for well-being in the DMC district is not focused on industries but rather based on performance areas outlined in AIA Minnesota's Center for Sustainable Building Research 21st Century Development including: place, water, energy, health & happiness, materials, equity, and beauty. Drive Purposeful Growth • Experience Economy: Draws visitors and residents through hospitality and convention, arts, culture, entertainment, and sports AN INFLECTION POINT ECONOMIC ANALYSIS METHODOLOGY 118 Interventions for Unlocking Higher Growth The following pages outline potential interventions to catalyze industry growth through vertical and horizontal development, policy alignment, and targeted programs. It emphasizes infrastructure, talent pipelines, and partnerships to support innovation and attract investment. Most all of these interventions will require multiple partners to coordinate and work together in order to realize the opportunity. By enhancing the district’s physical and economic environment, Rochester can unlock higher growth and position itself as an international destination. Vertical development to meet market demand and enable strategic growth Horizontal development to support vertical development and improve overall district experience Policies to incentivize new development and foster targeted sector growth Programs to strengthen partnerships, broaden the appeal, and smoothen implementation How to read charts on the following pages: Future Opportunities based on higher growth scenarios Historical trend line of the local market Potential risks based on lower growth scenariosSi z e o f I n d u s t r y Today 03. DMC Tomorrow 2005-2015 2015-2025 2025-2035 Industry A Industry B Industry C 119 0.1 CONTEXT DMC 2025 Development Plan Update ACCELERATE HEALTH INNOVATION Accelerate Health Innovation We will expand Rochester’s leadership in health discovery, technology, and entrepreneurship to fuel economic growth. By connecting research, startups, and investment, we’ll cultivate new ideas, businesses, and careers that improve lives and strengthen Minnesota’s economy. 120 C TODAY 03. DMC TOMORROW Introduction 121 DMC 2025 Development Plan Update Accelerating Health Innovation: Discovery Square as an Economic Engine Over its first decade, DMC has transformed Discovery Square from a concept into a functioning innovation district that connects Mayo Clinic’s research and clinical strengths with entrepreneurs, startups, and global companies. This deliberate approach, grounded in public investment and institutional partnership, has moved Rochester from a one- dimensional healthcare economy to a globally connected innovation ecosystem. Rochester’s economy is centered around Mayo Clinic, which serves as the city’s anchor institution. As described in the DMC Development Plan (2015), Discovery Square is the keystone to the DMC economic development strategy, providing a new “address” for the future of bioscience, research, education, and technology innovations. The vision for the sub-district borrowed from Mayo Clinic’s integrated care model to create an integrated district founded in the principles of translational medicine. Mayo Clinic, private partners, and institutions are brought together in the district, organized around a central set of infrastructure investments designed to foster communication and the sharing of ideas. Rochester’s innovation economy is driven by a combination of key factors that will foster growth, attract investment, and further position Rochester as a hub for medical and technological advancements. These elements: capital, entrepreneurial ability, labor, and infrastructure, work together to create an environment where innovation thrives. DMC’s economic development mission is to grow and attract companies that develop technologies to improve patient outcomes. Achieving this requires a globally connected network of researchers, clinicians, and entrepreneurs supported by world-class infrastructure. DMC Guiding Principles that are most closely tied to Accelerate Health Innovation: • Sustain Rochester and Southeast MN as a Destination Medical Center and Economic Engine for the State • A Comprehensive Strategy to Drive Economic Development and Investment • A Market Driven Framework & Strategies • Technology and Innovation to Promote a Globally Competitive Destination ACCELERATE HEALTH INNOVATION OVERVIEW 122 03. DMC Tomorrow Laying the Groundwork: Building the Physical and Institutional Infrastructure (2015–2025) Infrastructure, particularly in life sciences, is a key driver of innovation, and strategic investments have supported its growth. The 2015 DMC plan set a goal of 1,020,000 square feet of biotech space, and as outlined in Section 2 (pp. 48-52) several new projects were built, providing a strong foundation for startups and businesses to expand. From the outset, DMC’s strategy was focused on building the conditions for growth rather than chasing individual deals. The early years were about establishing capacity. We built the infrastructure, partnerships, and shared assets that would allow innovation to take root and grow. These investments, centered in Discovery Square, now provide the foundation for the next phase: attracting and expanding companies that turn discovery into impact. With this infrastructure in place, Rochester is positioned for continued growth in biotechnology, healthcare, and medical technology. Its concentration of physicians, scientists, and researchers will drive future collaboration, attracting companies focused on developing next-generation treatments, devices, and therapies. At the same time, the city’s expanding talent pool ensures businesses and research institutions have access to the skilled professionals needed to sustain innovation and meet industry demand. Capital will be essential to expanding Rochester as a research and innovation hub. Continued access to funding will enable startups, established firms, and research institutions to scale operations, develop emerging technologies, and bring new discoveries to market. As the biotech, healthcare, and technology sectors grow and converge within the DMC district, increasing investment will further accelerate innovation and advance Rochester’s position as a leader in these industries. The following section outlines the DMC district’s growth from 2015 to 2024, highlighting changes in infrastructure, business growth, and biotech investment. This analysis will illustrate the DMC initiative’s impact on Rochester’s economic and innovation landscape. The model that DMC is using follows the concept shown below: key infrastructure investments punctuate this timeline to support the growth and evolution of that ecosystem as awareness builds and becomes more self-sustaining. 123 DMC 2025 Development Plan Update Building the core Discovery Square vision over time The original DMC Development Plan outlined a vision for the Discovery Square subdistrict as the economic engine of the DMC initiative: DMC Development Plan Vision (2015) A new address for the future of bio-medical, research, and technology innovation, Discovery Square is a keystone to the DMC economic development strategy. The subdistrict borrows from Mayo Clinic’s integrated care model to create an integrated district founded in the principles of translational medicine. Mayo Clinic, private partners, and institutions are brought together in the district, organized around a central park and translational cloud, designed to foster communication and the sharing of ideas. Discovery Square Project Plan (2016) The DMC Development Plan vision was further elaborated upon with the 2016 Discovery Square project plan, which called for a bold vision to extend Mayo Clinic’s innovation capacity beyond its walls, creating a dynamic district where clinicians, researchers, entrepreneurs, and companies could collaborate to accelerate the translation of new ideas into patient-impacting solutions. That plan for Discovery Square outlined an implementation plan for a new “address” for the future of bioscience, research, education, and technology innovations as the first major step in implementing the DMC development strategy by leveraging DMC public investment and bringing significant, additional private capital investment to Rochester and the State of Minnesota. ACCELERATE HEALTH INNOVATION OVERVIEW 124 03. DMC Tomorrow One Discovery Square (2019) and Two Discovery Square (2022) Responding to the vision for Discovery Square, Mortenson served as both the developer and builder of the 90,000-square-foot, four-story bioscience building, which was the first major development in the sub-district. When the building opened, Mortenson had 85% of the building accounted for through leases or letters of intent, and it was fully leased by April 2021. Building on the momentum of One Discovery Square, Mortenson also developed and built Two Discovery Square. This building is more focused on research and development than the first building, designed for the needs of biotech, life science, and medtech companies, offering space for labs, offices, research, and biomanufacturing. The building is equipped to handle greater demand for power and utilities than a standard office building, with structural reinforcement providing vibration mitigation to support heavy specialized equipment. DMC Awareness and Perception Study (2022) DMC's 2022 Awareness and Perception Study reinforced the importance of that vision, showing that while Rochester’s assets are globally competitive, greater awareness, connectivity, and market visibility are needed to fully position Discovery Square and the broader DMC district as a destination for innovation and investment. 125 DMC 2025 Development Plan Update Anna-Maria and Stephen Kellen Building (2023) The building was initially announced in 2019 as a four-story building, but the pandemic experience demonstrated the need to grow and accelerate scientific advancements, so the plan almost tripled in size to eleven stories with 176,000 square feet of flexible laboratory space. The $120 million facility opened in December 2023. The Kellen Building represents Mayo Clinic's anchor investment in the Discovery Square district, serving as both a major research facility and a catalyst for collaboration with the private sector bioscience buildings (One, Two, and future Three Discovery Square). Its presence, combined with Mayo Clinic's decision to lease space in Two Discovery Square, demonstrates the integration between Mayo's research mission and the broader entrepreneurial ecosystem DMC is cultivating in Discovery Square. The building embodies the vision of Discovery Square as a place where Mayo researchers, startups, established companies, and entrepreneurs can interact and collaborate to advance health innovation. Discovery Walk (2024) Discovery Walk is a 4-block linear parkway through Discovery Square that extends the collaborative environment within One and Two Discovery Square to the outdoor space. The $18.5 million DMC-funded public infrastructure project connects the Heart of the City with Discovery Square and Soldiers Field, creating an outdoor extension of the innovation district while prioritizing equity through community co-design, integrated art, and inclusive contracting practices. ACCELERATE HEALTH INNOVATION OVERVIEW 126 03. DMC Tomorrow BioLabs Rochester, MN (2025) The arrival of BioLabs marks a pivotal moment in the Discovery Square story. It introduces a proven national model for shared lab space that lowers barriers for new companies and connects directly to Mayo Clinic’s research enterprise. Together with the public realm investments like Discovery Walk, Rochester now has a more complete set of assets, as envisioned in the original DMC plan. The BioLabs announcement represents a transformative moment for Discovery Square—bringing a proven national shared lab operator to Rochester for the first time. It addresses a critical gap in Rochester's entrepreneurial ecosystem by providing accessible lab space and infrastructure for early-stage biotech startups, enabling researchers at Mayo and beyond to more easily transition ideas into companies. The October 2025 announcement, with a planned late 2026 opening, demonstrates how the Discovery Square infrastructure built over the past several years is now attracting the type of innovation-supporting tenants that were envisioned in the original DMC plan. From Infrastructure to Activation With the foundation built, the next decade must focus on activation. The task now is to accelerate company growth, deepen partnerships, and strengthen Rochester’s position within the global health technology network. BioLabs, Discovery Square, and DMC’s business development team will lead this work by connecting innovators to space, talent, capital, and markets. Sustainability and Equity Alignment Each of DMC’s Strategic Priorities is strengthened by a shared commitment to sustainability and equity, ensuring that DMC investments support both environmental leadership and inclusive access to Rochester’s growing prosperity. These alignments guide not only what DMC invests in, but how investments are shaped, evaluated, and carried forward over time, supporting long-term community well-being. DMC supports growth in health technology, research, and entrepreneurship that creates high-quality jobs and advances innovation. Building an equitable and resilient workforce requires supporting educational programs, inclusive hiring practices, and strategies that attract and retain diverse talent, ensuring economic growth benefits all Rochester residents. Equally important, sustainable growth requires balancing economic opportunity with environmental stewardship by managing resources responsibly and by considering who benefits from growth, while ensuring equitable access to both the jobs created by growth and the benefits of a thriving community. 127 DMC 2025 Development Plan Update The Next Decade: Building a Globally Connected Health Innovation Ecosystem The next decade of DMC’s work will move from building capacity to accelerating outcomes. With Discovery Square established as the physical and cultural center of Rochester’s innovation economy, our focus now shifts to activation. We will strengthen awareness, deepen connections, and expand Rochester’s role as a connector between local assets and global opportunity. This direction builds directly on the vision set in the original 2016 Discovery Square Master Plan. The plan called for a dense, connected district where research, clinical practice, entrepreneurship, and industry come together in a shared environment. It imagined Discovery Square as a place that brings global partners into close proximity with Mayo Clinic and creates a steady flow of ideas, talent, and investment. The next decade turns that vision into sustained economic and innovation impact. DMC’s work will continue to balance long-term ecosystem development with targeted efforts that bring aligned companies and partners to Rochester. These priorities shape how we build, how we invest, and how we present Discovery Square to the world. They come together through three interconnected areas of focus: Infrastructure, Awareness, and Ecosystem. • Infrastructure: Continue building the physical and digital assets envisioned in the Master Plan. Priorities include expanding flexible wet lab space, improving digital and data infrastructure, and supporting housing and amenities that help attract talent and investment. These assets create the platform where new companies can start, scale, and grow. • Awareness: Strengthen global visibility for Rochester by telling a clearer and more unified innovation story. Building on the 2022 Awareness and Perception Study, DMC will work with Mayo Clinic, BioLabs, and statewide partners to position Discovery Square as a premier destination for collaboration and investment. This includes proactive engagement with companies and partners who would benefit from proximity to Mayo Clinic and the region’s health technology strengths. • Ecosystem: Deepen the networks and partnerships that bring the Master Plan to life. This includes connecting researchers, clinicians, entrepreneurs, and industry partners through shared programming, stronger collaboration, and opportunities that link discovery to commercialization. DMC will help local innovators reach global markets and invite global partners to engage with the assets concentrated in Rochester. • Goal: Create an environment where networks, talent, and collaboration grow naturally and where companies choose Rochester because it is the best place to develop solutions that improve patient care. Characteristics of the DMC Approach to Health Innovation: The DMC approach reflects the vision set in the 2016 Discovery Square Master Plan, which called for a connected district anchored by shared assets, strong institutional partners, and an environment where collaboration drives discovery and commercialization. It also responds to the 2022 Awareness and Perception Study, which highlighted the importance of a clearer identity, stronger networks, and greater global visibility for Rochester’s innovation strengths. This approach builds long-term capacity while engaging companies and partners whose work deepens activity in Discovery Square and benefits from proximity to Mayo Clinic. ACCELERATE HEALTH INNOVATION OVERVIEW 128 03. DMC Tomorrow Key Attributes: • Public dollars create shared assets that support many organizations and strengthen the overall environment for research and innovation. • Emphasizes capacity building rather than direct subsidy, ensuring public investment serves multiple users over time. • Positions the public role as strategic and catalytic, shaping the conditions where research, entrepreneurship, and industry partnerships can grow. • Builds a self-reinforcing environment rather than one-off deals by focusing on partners who strengthen district activity, research pipelines, and commercialization pathways. • Depends on strong anchors such as Mayo Clinic and regional universities whose presence drives discovery, talent development, and global interest. • Requires a collaborative culture, a skilled workforce, access to early-stage capital, and the patience needed to build an innovation economy that compounds over time. • Works best for innovation-driven industries with pathways that move from research to product development and market adoption. • Measures success through research output, startup formation, talent growth, network strength, and the flow of aligned companies choosing Rochester because of the advantages offered by Discovery Square. • Creates sustainable, broad-based, long-term economic impact that strengthens Rochester’s identity as a global center for health innovation. Measuring Progress and Impact DMC’s innovation strategy will track progress through activity and outcome metrics that reflect growth, collaboration, and global reach. These measures align with the goals of the 2016 Discovery Square Master Plan and respond to the 2022 Awareness and Perception Study, which emphasized the need for stronger visibility, clearer market positioning, and a more connected innovation community. The metrics will help evaluate how Discovery Square functions as an active, collaborative, and globally relevant district, and how effectively DMC attracts and grows mission-aligned companies. • Startup formation and expansion within Discovery Square, signaling the strength of the pipeline and the health of the district environment. • Private capital investment leveraged through DMC supported initiatives, showing increased confidence from investors and partners. • Utilization of shared assets such as BioLabs Rochester, MN reflecting demand for flexible lab space and the value of district infrastructure. • Growth in collaborative research, clinical partnerships, and commercialization activity tied to Mayo Clinic and regional partners. • Increased visibility and global engagement through trade missions, targeted outreach, and ecosystem events that expand Rochester’s reach. • Attraction and retention of companies that align with Rochester’s health innovation strengths and contribute to activity within Discovery Square. These metrics will help DMC evaluate progress, guide future investment, and ensure that Discovery Square continues to grow as a globally connected center for health innovation. 129 DMC 2025 Development Plan Update Understanding the Market Potential of Health Innovation Additional economic analysis has been performed in two of the DMC core areas most directly tied to this strategic priority: Research & Technology and Health & Wellness to help bring this strategic priority into even further focus. The results of each of these two industry analyses are below by topic area, followed by some potential interventions that could unlock even higher growth in each of these areas. Economic Analysis: HealthTech Research and Technology (“HealthTech”) in the Rochester MSA is a growing industry cluster, driven by startups and established companies that benefit from proximity to Mayo Clinic. The market has tripled over the past decade, keeping pace with national trends. If Rochester’s HealthTech cluster were to capture the same national market share as its healthcare industry (0.23%), its size could increase more than fivefold. Achieving this level of growth will require translating the region’s healthcare leadership into greater market share for AI, medical devices, and related technologies—supported by an integrated cross-industry ecosystem, more specialized real estate, expanded education and workforce pathways, and a stronger “place” identity to attract and retain world-class talent. MedTech: high local growth with a large share of the national industry (39% of regional industry is within DMC) • Mayo Clinic as a key anchor gives Rochester a major competitive advantage for developing devices and diagnostics. • This subcluster can accelerate by aligning with the rapid growth in eldercare, leveraging robotics, remote monitoring, and assistive devices to meet regional and national demand. BioTech: moderate local growth (25% of regional industry is within DMC) • Pharmaceuticals and therapies are traditionally concentrated in university-led ecosystems that thrive on deep funding and robust talent pipelines. • DMC can enable more growth by pairing clinical trial access and Mayo Clinic’s patient base with partnerships that plug into national and international BioTech networks. Healthcare AI: rapid local emergence (89% of regional industry is within DMC) • Rising public and private investment in software and data makes this industry a high-growth frontier. • Rochester’s edge lies in fusing medical research and device innovation with data analytics, advancing precision diagnostics, robotics, remote monitoring, healthcare cybersecurity, and personalized medicine, to create a multiplier effect. ACCELERATE HEALTH INNOVATION UNDERSTANDING MARKET POTENTIAL: HEALTHTECH 130 2005-2015 03. DMC Tomorrow 2015-2025 2025-2035 MedTech BioTech Healthcare AI Industry opportunity based on highest growth projection method (see above) Where Rochester will be if local historical trends continue 2005-2015 Highest Growth: if Rochester captures the portion of the national HealthTech market as it captures the national Healthcare market (0.23%) in 10 years Middle Growth: Based on local historical trends that began leveraging Mayo Clinic strengths. Lowest Growth: Based on national trends with slower MedTech growth. 2015-2025 2025-2035 Si z e o f H e a l t h T e c h I n d u s t r y C l u s t e r in R o c h e s t e r M S A Si z e o f H e a l t h T e c h C o m p o n e n t I n d u s t r i e s in R o c h e s t e r M S A Growth Trajectories: Data sources for funding and geographic distribution: SBIR and STTR Grant Data Data sources for growth trends: BLS Occupational Employment and Wage Statistics 131 DMC 2025 Development Plan Update Vertical Development DMC should support HealthTech’s high-growth potential by advancing research facilities, education spaces, and office development, with a focus on specialty, value- added facilities. This includes increasing research space for startups and innovators, adding data accelerators, strategic lab space, and small-scale manufacturing and prototyping capabilities to help bridge early- stage innovation with regional scaling, and expanding academic partnerships and dedicating more education infrastructure to HealthTech fields. Additionally, new office space should be designed to attract companies, incubate startups, and foster connectivity with Mayo Clinic research and the broader HealthTech ecosystem, while transit-oriented, amenity-rich development downtown will help attract new talent and complement the existing residential base. Horizontal Development Horizontal development should focus on enhancing the public realm and strengthening utility infrastructure to support future HealthTech growth. This includes expanding and connecting key public spaces to reinforce Rochester’s identity as a HealthTech hub, encourage interaction between innovators and clinicians, and make such interactions visible beyond the indoors. Additionally, utility upgrades should be planned to enable future phases of Discovery Square and to meet the specialized needs of high-tech facilities, such as data centers, while building on recent improvements made by Rochester Public Utilities. Policies To support Rochester’s economic development strategy, it is essential to embed key industry growth priorities through policy into the city’s overall approach. This could include expanding business accelerators beyond existing resources, such as the BioBusiness Center, Collider incubators, and City small business grants to better support industry-specific enterprises. Additionally, this could include policy to grow workforce pipelines in critical industries while leveraging strong partnerships with organizations such as Rochester Area Economic Development, Inc. and Workforce Development, Inc. to align training with industry needs. ACCELERATE HEALTH INNOVATION INTERVENTIONS TO UNLOCK HIGHER GROWTH: HEALTHTECH 132 CASE STUDY Cortex Innovation District, St. Louis, MO Cortex Innovation District is a 200-acre hub for tech and bioscience, featuring office space, wet labs, prototyping studios, and coworking environments. Anchored by leading institutions like Washington University and BJC HealthCare, and home to major corporate partners including Microsoft and Boeing, Cortex supports over 400 companies and 6,000 employees. This ecosystem attracts startups and global innovators, positioning St. Louis as a center for advanced industries and entrepreneurship. To learn more visit: https://www.cortexstl.org Programs Programmatic efforts should focus on connecting businesses to Mayo Clinic, strengthening the pipeline from research to startup formation, and supporting the workforce needed to sustain growth in Rochester’s HealthTech industry cluster. This includes enhancing the visibility and brand appeal of Rochester as an innovation economy, helping businesses navigate the “front doors” to Mayo via existing and/or new programs, partnering with educational institutions to expand and potentially co-design academic and incubation programs aligned with industry needs, and advancing workforce development initiatives that address gaps in roles such as R&D technicians, scientists, data management specialists, and IT professionals, and implementing strategies to attract and retain talent so emerging companies can scale locally. 03. DMC Tomorrow 133 DMC 2025 Development Plan Update Healthcare Concentration in Rochester The Rochester Metropolitan Statistical Area (MSA) has a significant concentration of the national Healthcare and Social Assistance Gross Domestic Product (GDP), reflecting the strength of the Mayo Clinic. This concentration is particularly noticeable when considering Rochester's size by analyzing the Healthcare and Social Assistance GDP per resident. Rochester has nearly five times the GDP per resident than the national average, and more than twice the GDP per resident than the next highest MSA. Healthcare Growth in Rochester Because Rochester is a well-established healthcare hub, its Healthcare and Social Assistance GDP growth is similar to the growth rate in the US overall. Both national and local trends show strong healthcare growth after COVID-19. Since Rochester is more established, the growth rate is slightly below the national trends as the greatest growth is in emerging markets where the opportunity is larger. Economic diversification in Rochester is supporting its long-term growth. Economic Analysis: Health and Wellness The Health and Wellness industry cluster is anchored by the Mayo Clinic in Rochester, with the potential to evolve into a fully interconnected ecosystem spanning treatment, recovery, and lifestyle. Rochester's healthcare industry GDP per capita is 5 times the U.S. average and ranks top among all MSAs. To sustain growth in this already substantial sector, Rochester should create new value and ensure long-term resilience through diversification. By integrating the rapidly expanding care services and wellness industries with the region’s dominant, high-innovation healthcare sector, Rochester can extend its influence into emerging high- growth markets, boost economic output, and generate meaningful social value for the community Healthcare: steady local growth (58% of the regional industry is within DMC) • Rochester's MSA captures 0.34% of the national healthcare and social assistance GDP and 0.23% of related jobs, with only 0.07% of the country’s population. • While peer cities lean on universities and institutes, Rochester is uniquely positioned to amplify Mayo Clinic’s national and global leadership. • Past healthcare growth was fueled by rising patient volumes, but future growth depends on health innovation and integration with the care and wellness ecosystems. Care Services: rapid local growth (3% of regional industry is within DMC) • Clinical expertise and strength in devices and diagnostics provide a competitive edge, enabling DMC to lead in aging innovation, smart care, and workforce solutions supporting families across life stages. • A rapidly aging national population and Rochester’s high share of older residents fuels eldercare demand. • Childcare and disability-care services improve quality of life to attract and retain residents. Wellness: gradual local emergence (11% of regional industry is within DMC) • A strong wellness brand, focusing on prevention, vitality, and well- being, elevates DMC beyond treatment to a lifestyle destination, attracting talent, residents, and visitors. • By blending recreation, hospitality, and innovation, wellness is both an economic driver and a hallmark of a desirable quality of life. ACCELERATE HEALTH INNOVATION UNDERSTANDING POTENTIAL: HEALTH & WELLNESS Data sources: BEA Gross Domestic Product by MSA, BLS Occupational Employment and Wage Statistics, ACS Population. 134 2015 2024 2035 Healthcare Care Services Wellness Industry opportunity based on highest growth projection method (see above) Where Rochester will be if local historical trends continue 03. DMC Tomorrow Growth Trajectories Data sources for current industry size and geographic distribution:ESRI Business Analyst Data sources for growth trends: BLS Occupational Employment and Wage Statistics Highest Growth: Based on peer city growth rates that have rapid healthcare expansion from emerging anchors. Middle Growth: Benchmarked to growth in Madison, where faster population growth and a more diversified economy drive stronger care services expansion. Lowest Growth: Based on local historical trends due to highly established nature of the existing healthcare anchor. 2015 2024 2035 Si z e o f H e a l t h a n d W e l l n e s s n d u s t r y Cl u s t e r i n R o c h e s t e r M S A Si z e o f H e a l t h a n d W e l l n e s s C o m p o n e n t In d u s t r i e s i n R o c h e s t e r M S A 135 DMC 2025 Development Plan Update ACCELERATE HEALTH INNOVATION INTERVENTIONS TO UNLOCK HIGHER GROWTH: HEALTH & WELLNESS Vertical Development Besides Bold.Forward.Unbound. in Rochester, additional vertical development should expand specialized care facilities and mixed-use wellness hubs to meet growing demands in healthcare and eldercare and make downtown spaces accessible by these care and wellness services. Investments should also support technologically advanced services, such as memory care, rehabilitation, and mental health, and address needs for both eldercare and childcare to better serve the local workforce and their families. These efforts will help meet DMC’s healthcare objectives while fostering innovation in care delivery. Lastly, enhancements to downtown mixed- use areas should include retail, hospitality, and tech- enabled wellness offerings, such as recovery suites and branded wellness centers, building on existing assets like the Mayo Clinic Rejuvenate and others with related services to reinforce Rochester’s global reputation as a destination for comprehensive health and well-being. Horizontal Development Horizontal development should focus on enhancing the public realm and reinforcing a cohesive lifestyle and wellness identity for downtown. This includes creating a connected network of signature wellness- oriented public spaces that link medical and non- medical facilities, encourage active living, and provide value-added amenities that appeal to residents, visitors, and employers. By elevating the quality and character of these shared spaces, Rochester can strengthen its wellness brand, attract investment, and create a more vibrant, supportive environment for both everyday life and the growing health-focused economy. Policies Implementation should leverage a mix of local, state, and partner funding, as well as strategic land use and zoning tools, to enable holistic development and support care services and wellness companies that might be less able to compete for talent and space compared to the healthcare industry. Partners should be aligned to strengthen workforce development, business attraction and retention, and entrepreneurship. 136 CASE STUDY Durham Center for Senior Life, Durham, NC The Durham Center for Senior Life (DCSL) strengthens the Research Triangle’s HealthTech ecosystem by delivering specialized senior care services that support aging populations. As part of RTP’s $1 billion urban transformation, DCSL complements the region’s bioscience and healthcare innovation by connecting seniors to health, legal, and housing resources, reinforcing the Triangle’s reputation as a collaborative, inclusive model for economic and technological growth. To learn more visit: https://dcslnc.org/ 03. DMC Tomorrow Collaboration with the State of Minnesota and local universities and colleges can expand higher education pipelines in health and wellness fields. City-owned parcels can be utilized to support childcare and eldercare expansion, with zoning incentives encouraging mixed-use projects that integrate care facilities. Additionally, tools such as Special Service Districts, Tax Increment Financing, the Medical Overlay District, and the Unified Development Code should be used to advance public realm investments, while updates to the Parks Master Plan and sustainable park maintenance funding will ensure long-term community benefit. Programs Program efforts should focus on expanding partnerships that strengthen educational, entrepreneurial, and talent pipelines while reinforcing Rochester’s identity as “America's City for Health.” This includes amplifying existing branding and Mayo Clinic’s global reputation, with opportunities to broaden the message to highlight advanced care and wellness. Additionally, deepening collaboration between Mayo Clinic and wellness and care-related industries, through patient referrals, research sharing, and coordinated service offerings, will help foster a more interconnected ecosystem that supports innovation, care delivery, and long-term growth. 137 DMC 2025 Development Plan Update ACCELERATE HEALTH INNOVATION SUCCESS METRICS Generate new intellectual property Launch new innovation companies Attract new capital Scale companies Achieve exits ACCELERATE HEALTH INNOVATION MEASURING SUCCESS We will expand Rochester’s leadership in health discovery, technology, and entrepreneurship to fuel economic growth. By connecting research, startups, and investment, we’ll cultivate new ideas, businesses, and careers that improve lives and strengthen Minnesota’s economy. Discovery Square’s next chapter will be defined by activation and acceleration. The foundation is strong, the partnerships are global, and the momentum is real. The work ahead will ensure that Rochester continues to lead not only in healthcare delivery but also in how discovery moves from idea to impact—faster, more collaboratively, and for the benefit of patients everywhere. Success Metrics The following success metrics provide a comprehensive way to track the full lifecycle of health innovation, from idea generation to market impact. By measuring invention disclosures, patents, company formations, capital attraction, and successful exits, these success metrics capture both the creation of intellectual property and its translation into economic growth. This approach ensures we can quantify progress in research, commercialization, and regional competitiveness. 138 DMC Tomorrow 138 139 0.1 CONTEXT DMC 2025 Development Plan Update DESIGN FOR WELL-BEING Design for Well-Being We will design and invest in a city where health and wellness are embedded in the built environment, from housing and mobility to public spaces and climate resilience. Each project will enhance livability, sustainability, and inclusion, ensuring that health is reflected in the daily experience of residents and visitors alike. 140 C TODAY 03. DMC TOMORROW Introduction 141 DMC 2025 Development Plan Update Design for Well-Being: Health in the Built Environment As Rochester positions itself as a global destination for health, the physical environment of the DMC District must embody the values we seek to advance. Design for Well-Being recognizes that health outcomes are shaped not only by clinical care but by the places where people live, work, and gather. Research consistently demonstrates that the built environment influences physical activity levels, mental health, social connection, air quality, and chronic disease rates. For the DMC District to authentically represent "America's City for Health," every street, building, and public space should actively support human well-being. This means prioritizing walkability, access to nature, air quality, natural light, social gathering spaces, and universal design principles. As Mayo Clinic reimagines healthcare delivery through Bold. Forward. Unbound. in Rochester, the surrounding district has an opportunity to demonstrate how thoughtful urban design can be a powerful tool for improving human and environmental health. This approach serves multiple goals simultaneously: it differentiates Rochester as an authentic health destination, creates the kind of vibrant, human-scaled environment that attracts and retains talent, demonstrates Mayo Clinic's commitment to community health beyond the clinic walls, and ensures DMC investments deliver lasting quality-of-life benefits for all residents. Rochester stands at a unique moment: we're rebuilding significant portions of our downtown infrastructure at the same time Mayo Clinic is making the largest healthcare facility investment in Minnesota history. This convergence creates an unprecedented opportunity to move beyond conventional development approaches and instead design a district where every element, from street width to building materials to park access, is evaluated through the lens of human well-being. DMC guiding principles that are most closely tied to Design for Well-Being: • Establish A Bold and Compelling Vision for Rochester and the Destination Medical Center • Develop Mobility and Transit Solutions to Support Growth • A Model for Sustainability • A Dynamic And Accessible Urban Core DESIGN FOR WELL-BEING OVERVIEW 142 03. DMC Tomorrow Laying the Groundwork: Setting the Bar and Developing Capacity (2015–2025) The implementation of this strategy is primarily through the collaborative work between DMC staff and the City of Rochester. While the DMC Development Plan set out the vision for a sustainable, people-centered approach to the way in which the infrastructure investments happen, it is the City of Rochester that oversees the design and construction of this infrastructure. Key infrastructure investments: Heart of the City, Discovery Walk, Soldiers Memorial Field, 4th Street complete street design, N. Broadway street redesign, Link Bus Rapid Transit, 6th Street bridge, Downtown Area Infrastructure Key Plans: • DMC District Design Guidelines • Energy Integration Committee and EIC Action Plan • Integrated Transit Studies • Active Transportation Plan • Sustainability and Resiliency Plan • Public Realm Priorities: Kutzky Park and Downtown Area • Unified Development Code – City of Rochester • Comprehensive Plan Update – City of Rochester • Downtown Commercial Historic District Public Realm Vision Plan 143 DMC 2025 Development Plan Update DESIGN FOR WELL-BEING OVERVIEW Sustainability and Equity Alignment Each of DMC’s Strategic Priorities is strengthened by a shared commitment to sustainability and equity, ensuring that DMC investments support both environmental leadership and inclusive access to Rochester’s growing prosperity. These alignments guide not only what DMC invests in, but how investments are shaped, evaluated, and sustained over time, supporting long-term community well-being. Investments in infrastructure, housing, and mobility are guided by principles of accessibility, inclusion, and environmental stewardship, helping create healthy places that serve people across ages, abilities, and backgrounds while strengthening the city’s resilience. DMC is committed to strengthening Rochester’s reputation as a national leader in health and well-being by integrating these principles into decision-making across projects and partnerships that shape community life. Implementation: The City's Essential Role in Turning Vision into Built Reality The City of Rochester is DMC's most critical partner in implementing the Design for Well-Being strategy. While DMC can serve as a thought leader—articulating vision, conducting research, establishing design principles, and creating funding conditions that advance well-being goals—it is the City that builds the infrastructure, brings their own expertise, and holds the authority to translate those principles into built reality. City staff provide project management that moves ideas from concept to construction. They oversee procurement and engineering, coordinate contractors, manage budgets and timelines, and ensure projects are built to specification. When DMC funds a streetscape improvement designed to promote walkability and health, City engineers and project managers execute the work. When a new public space is envisioned, City staff navigate the complexities of design, permitting, construction, and long-term maintenance. Beyond project delivery, the City exercises regulatory functions that fundamentally shape whether Design for Well- Being principles are realized across all development—public and private. Zoning ordinances determine what can be built where. Building codes establish safety and accessibility standards. Development review processes evaluate whether proposed projects align with community goals. Permitting decisions determine whether projects move forward. 144 03. DMC Tomorrow These regulatory tools, managed by City staff, create the framework within which all development occurs. This means that even the most compelling DMC vision for health-promoting design only succeeds when the City's regulatory systems, staff capacity, and operational processes are aligned to support it. DMC can fund a model project that demonstrates best practices, but lasting change requires the City to incorporate those practices into standard procedures, update codes and ordinances accordingly, train staff to evaluate projects through a well-being lens, and consistently apply these principles across all work. The partnership succeeds when DMC's vision, funding conditions, and thought leadership combine with the City's implementation capacity, technical expertise, and regulatory authority to create sustained, systematic commitment to designing for health. DMC supplies the "why" and helps create the conditions; the City provides the "how" and ensures consistent execution. The DMC-City partnership has evolved significantly since 2015. Rather than contracting with outside project management consultants, beginning in 2019 the partnership invested in building the City's own capacity to manage downtown's transformative growth. This approach creates stronger alignment between DMC's strategic vision and the City's day-to-day implementation and regulatory work. The collaborative model continues adapting to meet the unprecedented scale of growth Rochester now faces. The City coordinates among multiple projects and sources to realize the transformation of downtown Rochester, including the DMC District. There is strong alignment between the approach the City takes for implementation and the DMC strategic priorities. 145 DMC 2025 Development Plan Update Understanding Potential: Design for Well-Being Analysis The 21st Century Development framework offers a valuable lens for assessing how Rochester’s built environment can promote community health and well-being. It provides a holistic structure for evaluating development through seven performance areas: Place, Water, Energy, Health and Happiness, Materials, Equity, and Beauty. These areas guide the creation of regenerative, resilient communities by promoting ecological restoration, social equity, cultural richness, and human well-being, drawing from the Living Community Challenge to support holistic and sustainable development practices. The following list describes the seven performance areas in more detail: • Place: Restoring a healthy coexistence with nature. • Water: Creating water independent sites, buildings, and communities. • Energy: Relying only on current solar income. • Health & Happiness: Maximizing physical and psychological health and well-being. • Materials: Endorsing products and processes that are safe for all species through time. • Equity: Supporting a just, equitable world. • Beauty: Celebrating plans that purpose transformative change. The following chart outlines a qualitative analysis of where Rochester measures up in this framework during this moment in time. For more details on the measurement criteria visit the following Link: https://www.21stcenturydevelopment.org/ development-matrix/ DESIGN FOR WELL-BEING UNDERSTANDING POTENTIAL 146 21st Century Development Framework Scorecard: Where We're at Today Standard Good Better Living Community Principles Regenerative Quality of Life Place Limits to Growth X Food X Habitat X Mobility Transportation X Climate Resilience Water X Energy X Materials X Material Plan X Embodied Energy & Carbon X Waste X Social Cohesion Health and Happiness Civilized Environment X Neighborhood Design X Biophilia X Resilient Connections X Equity Neighborhood & Access X Access to Nature X Access to Community Services X Investment X Just Organizations X Beauty Beauty & Spirit X Inspiration X 03. DMC Tomorrow 147 DMC 2025 Development Plan Update DESIGN FOR WELL-BEING INTERVENTIONS TO UNLOCK GROWTH IN WELL-BEING Vertical Development To support vertical development in Rochester, the city should pursue a built environment strategy that unlocks health through targeted interventions. Expanded daycare options with longer service hours could better support working families and contribute to a more inclusive urban core. Access to fresh food in the district could grow through strategic retail and infrastructure investments, improving community health outcomes. Green building practices could become the norm, reinforcing sustainability and enhancing indoor environmental quality. Preserving and activating historic buildings could strengthen Rochester’s architectural identity while integrating legacy assets into a more vertically connected and health-oriented urban fabric. Horizontal Development Horizontal development to support well-being in Rochester should include more intensive land use in the downtown core, anchored by high-quality public spaces that encourage gathering and social interaction. A well-connected street network at the human scale, with pedestrian-oriented landscapes and inviting design, should enhance walkability and urban vibrancy. Infrastructure for all modes of transit should be efficient and safe to improve accessibility and mobility across the district. Innovative and technologically advanced approaches to utilities, energy, and transit systems should further strengthen Rochester’s capacity for sustainable, integrated growth, especially during evenings and weekends when downtown activity can be amplified. 148 CASE STUDY 03. DMC Tomorrow Policies Policies to support well-being in Rochester should include sustainable infrastructure design guidelines that promote resilience, efficiency, and long-term value across Rochester’s urban systems. Public spaces and transit networks should be designed to accommodate all users, regardless of age, ability, or mode of travel, reinforcing equity and accessibility while enhancing the overall experience of the built environment. These policies should shape a more inclusive, adaptable, and health-oriented urban future. Programs Program strategies to advance well-being in Rochester should focus on cultivating vibrant community life, encouraging sustainable mobility, and expanding access to nutritious food. Social gatherings, both scheduled and spontaneous, should be used to activate public spaces and strengthen social connections. Travel behavior and preferences should be shaped to support mode shift goals by promoting walking, biking, and transit use through targeted outreach and incentives. Healthy food initiatives such as community gardens, farmers markets, and edible landscapes should be implemented to improve access to fresh produce and build neighborhood resilience Rosario, Argentina "Rosario is also its older adults" This pilot project reimagined public spaces to reduce isolation and improve mental health among older adults. It introduced well-lit, accessible environments with ramps, seating, and inclusive programming. The initiative was recognized as a municipal priority and serves as a benchmark for age-friendly urban design. To learn more visit: https://theccd.org/article/rosario-is- also-its-older-adults/ 149 DMC 2025 Development Plan Update DESIGN FOR WELL-BEING SUCCESS METRICS Improve quality of life Increase infrastructure for mobility Improve environmental health Strengthen social cohesion Lead in climate resilience DESIGN FOR WELL-BEING MEASURING SUCCESS We will design and invest in a city where health and wellness are embedded in the built environment, from housing and mobility to public spaces and climate resilience. Each project will enhance livability, sustainability, and inclusion, ensuring that health is reflected in the daily experience of residents and visitors alike. Success Metrics The following success metrics create a framework for designing environments that actively promote well-being by linking physical, social, and environmental improvements to measurable outcomes. By tracking access to health- promoting amenities, mobility infrastructure, climate resilience, and social cohesion, they ensure that investments translate into healthier lifestyles, safer streets, and stronger community connections. This approach turns design into a tool for equity and sustainability, making well-being a core outcome of urban development. 150 Introduction 150 151 0.1 CONTEXT DMC 2025 Development Plan Update DRIVE PURPOSEFUL GROWTH Drive Purposeful Growth We will use Rochester’s distinct health identity and partnerships to attract people, investment, and services that align with our vision for a thriving, values-driven community. Growth will be intentional, rooted in health, opportunity, and quality of life, so that prosperity benefits both residents and the state. 152 C TODAY 03. DMC TOMORROW Introduction 153 DMC 2025 Development Plan Update Driving Purposeful Growth: From Destination to Home Rochester has long been a destination—a place people come to for world-class healthcare at Mayo Clinic. Each year, millions of patients and their families arrive seeking hope and healing. Researchers, clinicians, and health innovators relocate here to advance their careers at one of the world's premier medical institutions. This draw is Rochester's greatest strength and competitive advantage. But being a destination is not the same as being a home. The question facing Rochester at this inflection point is not whether people will come—Mayo Clinic ensures they will— but what key elements of the community can grow and be enhanced so that they will stay, return, explore, invest, and ultimately choose to build their lives here. Driving Purposeful Growth recognizes that health excellence is the attractor that brings people to Rochester, but quality of place determines whether they stay. A prospective Mayo employee deciding between Rochester and other medical centers considers not just the job but the life that comes with it: Can I find housing I can afford? Will my partner find meaningful work? Are there activities for my family? Does downtown offer the energy and amenities I'm looking for? Will I feel welcome and connected to community? A high school student choosing where to attend college asks similar questions: Is this a place where I can envision my future? Does the community offer opportunities beyond the classroom? Can I see myself wanting to stay after graduation? A former Rochester resident who left for college or career opportunities elsewhere considers whether to return: Has my hometown evolved into a place that matches my current life stage and aspirations? Does it offer the cultural vibrancy, career opportunities, and quality of life I've experienced elsewhere? A patient family spending days or weeks in Rochester for treatment wonders: Beyond the hospital, what else does this community offer? Should we explore downtown? Is there anything here that makes this difficult time slightly more bearable through moments of normalcy, beauty, or respite? DMC Guiding Principles that are most closely tied to Drive Purposeful Growth: • Establish A Bold And Compelling Vision For Rochester And The Destination Medical Center • A Dynamic And Accessible Urban Core DRIVE PURPOSEFUL GROWTH OVERVIEW 154 03. DMC Tomorrow A long-term Rochester resident watches the city's growth and transformation with a mix of pride and concern: Will this growth benefit my family and neighbors, or will it price us out? Are we preserving what makes Rochester special while improving what needs to change? As new amenities and opportunities emerge downtown, will I feel they're for me, or for someone else? Does my community still recognize and value the contributions of those of us who've been here through the decades? A health tech innovator evaluating where to build their company asks whether Rochester has cultivated the complete ecosystem innovation requires: Can I access clinical partnerships to validate my solution in ways impossible elsewhere? Will I find technical talent I need, local investors who know medtech, and a community where physicians, engineers, and entrepreneurs collaborate? Most critically: as my company grows, will Rochester offer the specialized workforce, manufacturing capabilities, and quality of place that lets me build something lasting here? A developer or investor evaluating opportunities across multiple markets looks at Rochester's fundamentals: Is there sustained demand beyond Mayo Clinic? Does the city have the policy framework, infrastructure, and community support to make projects successful? Will the local workforce, housing market, and consumer base support long-term returns? Most importantly, does Rochester have a compelling vision for its future that makes investment here not just viable but strategic? Each of these individuals represents an opportunity—to recruit talent, retain graduates, welcome back former residents, support patient families, and ultimately grow Rochester's population and economic base in ways that strengthen the entire community. But capturing these opportunities requires intentional investment in the elements that make a place not just functional but magnetic: vibrant public spaces, diverse housing options, cultural amenities, entertainment and dining, entrepreneurial opportunity, and an authentic sense of community identity. Driving Purposeful Growth means being strategic about the type of growth Rochester pursues. It's not simply about adding more—more buildings, more people, more jobs— but about ensuring growth reinforces the qualities that make Rochester distinctive: its commitment to health and innovation, its small-city livability with big-city amenities, its global connections rooted in Rochester, and its increasingly diverse and welcoming character. But capturing these opportunities requires elements that extend far beyond DMC's direct purview: diverse housing options at multiple price points, cultural amenities, entertainment and dining, career opportunities in complementary sectors, childcare that serves shift workers, and authentic community identity that honors both longtime residents and newcomers. 155 DMC 2025 Development Plan Update This is where Driving Purposeful Growth differs fundamentally from DMC's other strategic priorities. The implementation of this vision is heavily reliant on our partners and collaborators, like the City, our educational partners like UMR, non-profit partners, private developers, entrepreneurs, service providers, and other community partners. DMC's role in Driving Purposeful Growth is strategic and selective: identifying opportunities that are uniquely tied to Rochester's health anchor and using catalytic investments to enable partners to succeed where market conditions alone might not be sufficient. This might mean supporting a childcare facility designed specifically for hospital shift workers. It might mean facilitating housing developments that test out unique health-related design features. As amplified in the Accelerating Health Innovation chapter, it definitely means attracting businesses in sectors that complement and benefit from proximity to Mayo Clinic and the emerging health innovation ecosystem. The selectivity is critical. DMC's resources are finite, and its mission is focused. Driving Purposeful Growth succeeds not by trying to do everything, but by strategically choosing where DMC's participation unlocks opportunities that directly strengthen Rochester's position as a health destination while improving quality of life for all residents. This strategy shows how DMC, working alongside the City of Rochester, Mayo Clinic, private developers, entrepreneurs, and community organizations, can strategically catalyze the growth that transforms Rochester's natural advantages into comprehensive community strength—growth that serves existing residents, attracts new talent, and positions Rochester not just as a destination for health, but as a place people choose to call home. Building Momentum for Purposeful Growth: Partnerships and Key Investments (2015–2025) Many of the key growth planning documents, partnerships, and investments in placemaking have been highlighted earlier in this document. Below are a selection of key items that illustrate how a decade of strategic planning, community engagement, and targeted investments have built partnerships and community-driven planning that intersect with DMC’s Driving Purposeful Growth strategy, allowing for a focus on the elements that convert health excellence into comprehensive community vitality. Key infrastructure investments: Heart of the City, Discovery Walk, Soldiers Memorial Field, Chateau Theatre. DRIVE PURPOSEFUL GROWTH OVERVIEW 156 03. DMC Tomorrow Key Plans: • DMC Development Plan (2015) • System Wide Parks and Recreation Master Plan (2016) • DMC District Design Guidelines (2016) • Integrated Transit Studies begin (four studies launched in fall 2016) • Integrated Transit Studies Final Report accepted (2018) - refined DMC transportation vision • DMC Development Plan update (2020) • Comprehensive Housing Needs Study (2020, First Edition) • DMC and RDA Downtown Residents Study (2020) • Rochester-Olmsted Council of Governments (ROCOG) 2040 Long Range Transportation Plan amendment (includes Link BRT system, 2020) • Discovery Walk planning and Community Co-Design process (2021) • Downtown Rochester Historic District created (2021) • Downtown Waterfront S.E. Small Area Plan completed (2021) • Riverfront Small Area Plan completed (2022) • Chateau Theatre further investment (2022) • Discovery Walk construction begins (2022) • Mayo Clinic Bold. Forward. Unbound. in Rochester announcement (November 2023) • Olmsted County Comprehensive Housing Study (forecasts demand through 2035) • Discovery Walk completion (2024) • Soldiers Field Memorial renovations complete (2024) 157 DMC 2025 Development Plan Update Sustainability and Equity Alignment Each of DMC’s Strategic Priorities is strengthened by a shared commitment to sustainability and equity, ensuring that DMC investments support both environmental leadership and inclusive access to Rochester’s growing prosperity. These alignments guide not only what DMC invests in, but how investments are shaped, evaluated, and sustained over time, supporting long-term community well-being. Sustainable and equitable growth makes Rochester a city where opportunity and livability go hand in hand. Expanding access to housing, culture, and mobility helps all residents share in the benefits of growth, while climate-conscious planning considers long-term impacts and ensures Rochester remains vibrant, welcoming, and future-ready. Some avenues DMC and partners are pursuing include: • Sustainable and inclusive housing options that reduce environmental impact and ensure all residents have access to safe, affordable, and climate-resilient homes • Expanding equitable access to affordable housing and community amenities, ensuring every neighborhood benefits from growth and investment • Partnering with schools, employers, and training programs to create equitable access to education and career opportunities, preparing residents of all backgrounds for the jobs and industries that shape our city's future Partnership: The Essential Ingredient Of all DMC's strategic priorities, Driving Purposeful Growth depends most heavily on work DMC cannot do alone. While DMC can invest in streets, parks, and public infrastructure directly, we cannot build all the housing Rochester needs. We cannot operate the childcare facilities, restaurants, entertainment venues, and retail businesses that make a community thrive. We cannot create the full spectrum of career opportunities that allow partners and spouses of Mayo employees to build meaningful work lives here. We cannot generate the cultural programming, social networks, and community connections that make people feel at home. This work only succeeds through partners: developers who build housing, entrepreneurs who open businesses, service providers who meet community needs, cultural organizations that enrich daily life, and countless individuals who choose to invest their time, talent, and resources in Rochester's future. DRIVE PURPOSEFUL GROWTH OVERVIEW 158 03. DMC Tomorrow DMC works best as the wind in the sails of community- driven projects and ideas. Our role is catalytic: identifying opportunities that leverage Rochester's unique health anchor, convening partners around shared goals, reducing barriers that prevent good projects from moving forward, and making strategic investments that enable partners to succeed where market conditions alone might not be sufficient. Looking ahead, this partnership approach becomes even more critical. As Mayo Clinic's Bold. Forward. Unbound. in Rochester expansion proceeds and Rochester enters a period of unprecedented growth, the community will need housing, services, amenities, and opportunities at a scale that far exceeds DMC's capacity or mission. Success depends on creating conditions where partners have the confidence, support, and market fundamentals to invest boldly in Rochester's future. DMC commits to being a reliable partner—responsive to community needs, strategic in our focus, transparent in our decision-making, and disciplined in ensuring our limited resources create maximum impact. But we succeed only when the broader community shares ownership of Rochester's growth and the vision of what we're building together. 159 DMC 2025 Development Plan Update Understanding one segment of the Market Potential of Driving Purposeful Growth Additional economic analysis has been done in the experience economy sector to help bring this strategic priority into even further focus. By diving deeper into the market potential of hospitality & convening, arts & culture, and sports to help us identify the scope of these kinds of opportunities, followed by some potential interventions that could unlock even higher growth in each of these areas. Economic Analysis: The Experience Economy The innovation economy is sustained by strong cultural infrastructure. While Rochester attracts significant medical tourism and a large daytime population, it's nighttime and weekend economy still has room to grow compared to peer cities and national trends. To draw more visitors (both medical and non-medical), residents, and talent, the city should expand amenities and programs that enhance the overall sense of place. Building the critical mass needed to sustain those amenities and programs will require new customer bases, which can be achieved by amplifying the city’s assets—such as industry conferences, local dining, and summer festivals. Together, these efforts can reinforce Rochester’s health-focused brand while elevating its vibrancy and appeal. Hospitality and Convention Infrastructure: Strong capture of the national medical events market • A very significant share (0.75%) of all currently planned medical events in the U.S. for the next 12 months are estimated to be in Rochester*, reflecting the city and Mayo Clinic’s brand strength for attracting medical conferences, meetings, and Continuing Medical Education events. Future opportunity is in expanding into Mayo’s medical niches and to exploring conferences in high-growth industries, such as MedTech and eldercare. • Convening infrastructure (hotels, convention bureaus, and industry associations) has grown significantly in Rochester, but peer and aspirational cities grew faster. • Non-convention tourism is critical to sustaining greater hospitality and convention infrastructure (adding weekend occupancy and foot traffic), but it remains low. Arts, Culture, and Entertainment: significant COVID impact • Cultural amenities linked to health and wellness enhance Rochester’s identity and sense of place for residents and visitors alike. Diverse entertainment and programming sustain a year-round economy and attract talent and workforce. • Currently only 5% of the MSA’s arts, culture, and entertainment assets are located within DMC. Greater density in the city center will provide more critical mass and visibility. Sports: high national growth, modest local decline (3% of regional industry is within DMC) • Rochester’s national presence in healthcare can be balanced by local and regional sports. • Greater youth tournaments, amateur competitions, and niche athletics can amplify the health branding, diversify visitors, fill weekend hotel demand, and enhance community vibrancy. Data source: MDLinx medical event listings November 2025–October 2026 (Accessed November 2025) DRIVE PURPOSEFUL GROWTH UNDERSTANDING POTENTIAL: THE EXPERIENCE ECONOMY 160 03. DMC Tomorrow Growth Trajectories Data sources for current industry size and geographic distribution:ESRI Business Analyst Data sources for growth trends: BLS Occupational Employment and Wage Statistics, Industry market reports Si z e o f E x p e r i e n c e E c o n o m y I n d u s t r y Cl u s t e r i n R o c h e s t e r M S A Highest Growth: Based on an average of where peers are expected to be given current growth rates (normalized by overall city size.) Peers have faster hospitality & convention infrastructure, arts and sports growth. Middle Growth: Based on an where Madison, WI is expected to be, using existing growth rates (normalized by size). Madison has robust hospitality & convention infrastructure, but lacks an arts economy. Covid Impact Lowest Growth: Based on local historical trends, when healthcare events grew but the economy struggled to diversify post- pandemic. 2015 2024 2035 Hospitality & Convention Infrastructure Arts, Culture & Entertainment Sports Industry opportunity based on highest growth projection method (see above) Where Rochester will be if local historical trends continue 2015 2024 2035 Si z e o f E x p e r i e n c e E c o n o m y Co m p o n e n t I n d u s t r i e s i n R o c h e s t e r M S A 161 DMC 2025 Development Plan Update Horizontal Development Horizontal development should focus on strengthening national connectivity and enhancing access to Rochester’s natural and cultural assets. Improving Rochester International Airport’s linkage to major East and West Coast hubs will expand both business and leisure travel opportunities, supporting tourism, and talent attraction. At the same time, expanding public spaces and activating the riverfront for recreation, culture, and wellness-oriented uses will create a more inviting environment for residents and visitors. Together, these investments will reinforce Rochester’s appeal as a connected, vibrant, and health-oriented destination. Policies Policies should leverage dedicated funding streams to activate downtown retail, enhance the public realm, and support partner-led programming. Expanding a program similar to the Main Street Grant Program can help sustain and grow anchor businesses that attract foot traffic during evenings and weekends. Lodging tax revenues can be further used to strengthen Experience Rochester and Mayo Civic Center programming that draws both residents and regional visitors. Additionally, a comprehensive look at park and trail constructions to the DMC District, as well maintenance and funding, will DRIVE PURPOSEFUL GROWTH INTERVENTIONS TO UNLOCK HIGHER GROWTH: THE EXPERIENCE ECONOMY Vertical Development Vertical development should strengthen the downtown civic and cultural environment and make amenities clustered, high-quality, and visible in the public realm. Growing weekend hotel occupancy, particularly as new lodging is added to serve medical visitors in line with DMC goals, will require enhancing the dining, retail, and entertainment experience to elevate Rochester’s leisure tourism brand. Health and wellness-focused attractions, from science and discovery museums to high-tech spas, can further reinforce Rochester’s identity and draw both residents and visitors. Additionally, existing cultural, arts, and sports facilities such as the Mayo Civic Center and Rochester Arts Center can be better connected with new venues to anchor a more vibrant and compelling downtown destination. 162 CASE STUDY 03. DMC Tomorrow improve user experience and increase visitation, helping support a vibrant, year-round active lifestyle aligned with Rochester’s health-oriented identity. Programs Programs should pursue a dual-track strategy that includes both professional-oriented events and broader public attractions, expanding social, cultural, and wellness programming to diversify the economy and strengthen Rochester’s identity. Continued development of the “America’s City for Health” brand should highlight wellness, culture, and entertainment as core elements of the city’s appeal. Working with Experience Rochester to increase the number of high-demand events, such as comedy and live music at the Mayo Civic Center, and expanding high-profile cultural programming at the Chateau Theatre can draw both Mayo’s workforce and regional visitors. Similarly, the Rochester Downtown Alliance can build on successful summer activities to support more year-round festivals and cultural events. Finally, regional partnerships that link Southern Minnesota’s outdoor recreation assets with Rochester’s urban amenities can create a more compelling and well- rounded visitor experience. Macon Georgia, Music-Led Downtown Transformation Macon, Georgia revitalized its downtown by converting historic buildings into mixed-use spaces and investing in cultural assets like Mercer Music at Capricorn. The restored Capricorn Sound Studios now hosts events, a museum, and a music incubator, drawing visitors and reinforcing the city’s music-driven identity. These efforts boosted tourism, foot traffic, and local pride.To learn more visit: https://capricorn.mercer.edu/ 163 DMC 2025 Development Plan Update DRIVE PURPOSEFUL GROWTH SUCCESS METRICS Improve housing ecosystem Enhance Rochester's authentic culture Drive new tourism Support health education opportunities Contribute to health workforce DRIVE PURPOSEFUL GROWTH MEASURING SUCCESS We will use Rochester’s distinct health identity and partnerships to attract people, investment, and services that align with our vision for a thriving, values- driven community. Growth will be intentional, rooted in health, opportunity, and quality of life, so that prosperity benefits both residents and the state. Success Metrics These success metrics help ensure growth is intentional and aligned with community priorities by tracking improvements in housing, cultural vibrancy, health tourism, education, and workforce development. By measuring tangible outcomes, such as new housing units, cultural events, tourism spending, and health workforce participation, these success metrics will provide a clear picture of how investments translate into quality of life, inclusivity, and economic resilience. This approach connects innovation to quality of life, making growth both purposeful and sustainable. 164 DMC Tomorrow 164 165 0.1 CONTEXT DMC 2025 Development Plan Update LOOKING FORWARD The Destination Medical Center journey is far from over. This update is not a new plan — it is an evolution of a bold vision first set in motion more than a decade ago. Guided by what we’ve learned and strengthened by partnerships across the community, this plan sharpens our focus for the next ten years. DMC was built on collaboration between the State of Minnesota, the City of Rochester, Olmsted County, Mayo Clinic, and the many partners who bring this work to life every day. That spirit of partnership remains essential as we enter this next chapter. Achieving the full promise of DMC will require continued coordination, shared investment, and collective leadership. The new strategic priorities outlined are designed to turn alignment into action, advancing innovation, well-being, and growth in ways that benefit everyone who calls Rochester home. Together, we can build on this strong foundation and continue shaping a city that leads the world in health, opportunity, and quality of life. 166 C TODAY 03. DMC TOMORROW Introduction 167 DMC 2025 Development Plan Update Over the past decade, the DMC initiative has made substantial progress in shaping downtown Rochester into a more livable, welcoming, and dynamic environment for all users. Through targeted investments in public spaces, infrastructure, transportation, hospitality, housing, and cultural amenities, DMC has strengthened the district’s accessibility, vibrancy, and overall quality of life. While significant achievements are clear, from the incredible volume of new construction underway, major public realm improvements, growing residential options, enhanced mobility infrastructure, and a broader range of dining and entertainment experiences, the work of creating a truly world-class destination is ongoing. Challenges around equitable housing affordability, full activation of pedestrian spaces, and the geographic distribution of amenities remain important areas of focus. Ultimately, the DMC’s people-centered approach continues to guide Rochester’s evolution, ensuring that the downtown environment not only supports Mayo Clinic’s clinical excellence, but also reflects the needs and experiences of patients, companions, employees, residents, and visitors as the district continues to grow and change. We are at an inflection point, and with an economic model that is proven, now is the time to lean into one of DMC’s foundational principles: Be Bold. A focus on accelerating health innovation, designing for well-being, and driving destination-worthy purposeful growth will shape choices, investment, and partnerships over the next ten years. As this framework moves forward, its success will depend on continued collaboration and shared responsibility. Built investments Unbuilt, funded and approved investments Bold. Forward. Unbound. in Rochester Unbuilt but planned LOOKING FORWARD FUNDED AND APPROVED INVESTMENTS 168 Introduction 3rd Ave. SE Broadway Ave . Broadway Ave. Civic C e n t e r D r . Civic Center D r . 1st Ave.6th S t . 4th S t . 3rd S t . Cent e r S t . 2nd S t . 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