Month: April 2015

Destination Medical Center Corporation (DMCC) Board Approves First Projects

A week after having reviewed and voted its final approval of the Destination Medical Center 20-year Development Plan, the Destination Medical Center Corporation (DMCC) Board of Directors today approved $20 million in proposed projects as qualifying for City of Rochester public expenditures toward the city’s $128 million local contribution to the DMC initiative.

Press Release: Destination Medical Center’s Economic Development Agency Readies for Next Phase of DMC Initiative, Lisa Clarke Named as EDA’s First Executive Director

ROCHESTER, Minn. (April 30, 2015) –The DMC Economic Development Agency (EDA) is moving quickly to formalize the operations of the EDA following the final approval of the Destination Medical Center (DMC) Development Plan by the Destination Medical Center Corporation (DMCC) Board of Directors at its April 23 meeting. This allows the EDA to effectively launch into managing the next phase of the DMC initiative in partnership with the community, the DMCC, Mayo Clinic, the City of Rochester and Olmsted County.

The DMC EDA announced four important developments: it has selected Lisa Clarke as its first executive director; it is actively recruiting four other key staff positions; it will be moving into its own office space in downtown Rochester; and it has received a pledge by Mayo Clinic to provide additional financial assistance to support the DMC initiative.

23-Story, 4-Star Hotel to Break Ground ‘within Weeks’

“Shovel ready” is how developer Titan Ventures described a $140-million project to develop a mixed-use Hilton Hotel at the southeast corner of Broadway and Center Street.

The 23-story, 4-star hotel is designed to accommodate the unique needs and expectations of a medical clientele, including places for in-building blood draws, accessibility to Mayo Clinic, and rooms with special amenities.

Named “Broadway at Center” by Titan, the project will include 264 hotel rooms, presidential and executive suites, and 33 apartments for longer-term residents and patients.

City projections suggest the project will include $140 million in private investment, will generate $1 million in annual tax revenue, and produce 250 permanent jobs. Construction is expected to last 2 years, Titan said.

This will be a Hilton Hotel like none other.
— Presentation from developer Titan Ventures

This project received unanimous support from the DMCC Board of Directors. Developers said construction will begin “within weeks.”

DMC Corporation Approves Purchase of Chateau Theatre

The DMCC Board has approved the city’s purchase of the Chateau Theatre at a price tag of $6 million, with a $1.5 million contribution from the City of Rochester and $500,000 from Mayo Clinic.

I think the biggest challenge now is going to be how should we best use this property.
— Ed Hruska, DMCC Board member

There are different bottom lines. Finding a balance among profitability, entertainment, quality usage, and more, will be important to making sure Rochester makes the best use of the Chateau Theatre, said board member R.T. Rybak.

“Having culture and activity is directly tied to Mayo’s ability to recruit talent … and other entrepreneurial activity,” Ryabk said.

Mayo Clinic Pledges $2.1 Million More to DMC and EDA

In addition to $8.3 million already invested by Mayo Clinic in DMC, Mayo has pledged an additional $1.5 million to fund a feasibility study and project plan for Discovery Square and $585,000 for ongoing support of some EDA staffing costs.

Discovery Square is designed to be the biobusiness hub for Rochester, attracting investment and driving job growth with access to Mayo Clinic knowledge and research.
Discovery Square is designed to be the biobusiness hub for Rochester, attracting investment and driving job growth with access to Mayo Clinic knowledge and research.

DMC’s Discovery Square, which will include the current Minnesota BioBusiness Center, is anticipated to be one of the largest drivers for job growth as it positions Rochester to attract medical innovators and researchers with the ultimate goal of commercializing new medical discovery and businesses throughout the city and the state.

In addition to the feasibility study and EDA staffing costs, the $585,000 portion of Mayo’s commitment will support the DMC-EDA office space and various operational services.

Lisa Clarke Named Executive Director of Economic Development Agency

The Economic Development Agency has named Lisa Clarke its executive director after a national search. Clarke has served as the EDA’s interim director since 2013 and will continue on a permanent basis as the EDA and DMC move from the planning phase into the development and project phase.

Lisa stood out in a number of areas, including her sensitivity and connection to the community … She has the demonstrated ability not only to conceptualize a bold vision, but also to operationalize that vision and make it a reality.
— Jeff Bolton, chairman, EDA Board of Directors

DMC Corporation Adopts Conflict of Interest Policy

The DMCC Board of Directors has adopted a conflict of interest policy to further strengthen transparency in development projects. Board member Ed Hruska, who led development of the new policy, said the policy will serve as an important component to deepening trust from the community.

I believe this ensures clarity on current and future contracts … I think by adopting this we’re doing a very good thing for the project and people.
— Ed Hruska, DMCC Board member

DMCC Chairwoman Lt. Gov. Tina Smith agreed, and said the policy will help all parties involved navigate sometimes “complex” projects.

“As we move into some very complex projects … we want to be very transparent about what people’s relationships are,” Smith said.

View Conflict of Interest PDF

Sustainability a Key Component of DMC Development

With the formal adoption of the DMC Development Plan, it’s time to start building and investing in southeastern Minnesota. But construction and development takes energy—and lots of it.

Local residents and board members, alike, articulated a commitment to progressing through the yet-undefined projects in an environmentally friendly and sustainable way.

DMCC Board member and former Minneapolis mayor, R.T. Rybak, said projects and development should maximize and conserve resources within the region and state. While the DMCC Board can set policy and express its goals for development, it’s equally important for members of the public to continue promoting their desire for a sustainable future for Rochester and DMC.

We’re about to consume a whole lot of energy from Southern Minnesota … and I think this is a very important topic for discussion.
— R.T. Rybak, DMCC Board member