$204,650,000 Proposed for First 5 Years of DMC

Like we shared earlier, the development plan proposed at today’s DMCC Board meeting is a BIG PLAN (694 pages) in support of a bold vision. And what everyone wants to know is: What’s going to happen and how much will it cost? Well, Amy Supple, a DMC project manager with Hammes Company, took about 45 minutes to step through the plan and link developments to the money question.

Over the first 5 years of DMC implementation, Supple proposed spending $204,650,000 on capital investments–by far, the largest portion of DMC expenses.

For starters, this is an incremental plan, Supple said. DMC can’t get a dime of state money until $200,000 in private investment has been secured. In other words, the state tap turns on when DMC shows progress.

To the point on an incremental plan, the $585 in taxpayer money is earmarked for distribution only as private investment accelerates. Nearly $500,000,000 must be invested from the private sector, including Mayo Clinic, in order to access the full amount of taxpayer dollars.

Planners Perkins Eastman and Hammes Company spent about 3 months writing the plan after years of interviews with stakeholders at all levels, including the local, regional and state communities.

It’s not a $585 million plan; it’s a $6 billion plan. — Amy Supple, DMC project manager

Among the early priorities should be a focus on transportation–it needs needs to start in year one, Supple said. This is largely because success of these infrastructure developments “depends” on federal dollars. Those projects tend to take 7-10 years to get to a point where the federal government starts issuing money, she said.

So, let’s do the math: If we start NOW on drumming up federal dollars for roads, rails, trails, buses–all of it–we’re already half way through the plan before we can even break ground.

The plan contains four priorities for the first 5 years (Phase I) of DMC implementation. The priorities are:

  1. Create a Catalyst: Support a dynamic city center and accumulate reserve cash to support catalytic, long-term investments
  2. Drive Investment in the Biomedical Technology Sector: Identify early-phase project and create reserves to support anchor businesses
  3. Support Strategic Growth and Enhance Quality of Life: Identify projects that support growth, use DMC funds to support extraordinary costs, and support early projects with the potential to have a lasting impact
  4. Initiate Detailed Planning and Move toward Phase 2 (years 6-10): Invest in transit and transportation planning, and invest in other planning to support advancement of large-scale strategies.

Breakdown of proposed expenditure on capital investments:

General Infrastructure
      790,000     Reconfiguration of First Ave around Peace Plaza
8,500,000     Allocation and reserves for biomedical technology development projects
20,000,000     Allocation and reserves for general development projects
28,815,000     Public works projects
36,268,000     Planning, design and construction of public spaces–parks, plazas, cultural spaces
79,212,000     Shared parking (Mayo Clinic, City, businesses, etc. will co-invest in mutual parking)
173,585,000    Total general infrastructure

Transportation Infrastructure
630,000     Signage and wayfinding
2,628,000     Relocation of bus layover and construction of parking lot
5,256,000     Planning of Transit Circulator to transport between St Mary’s and downtown
8,357,000     Reconstruction, upgrades and enhancements to Broadway and other streets
14,194,000     Planning and construction of city loop and bike share (Phase I)
 31,065,000     Total transportation infrastructure

204,650,000    Total infrastructure investments

Breakdown of proposed funding sources

DMC Funds
3,265,000     Sales tax exemption on construction materials
10,118,000     DMC combined transit aid
54,400,000     DMC combined general aid
  67,783,000     Total DMC funds

Non-DMC Funds
    6,702,000     MNDOT and other state funding
8,778,000     Unspecified (sponsorship, other sources)
13,183,000     Federal funding
20,000,000     City CIP and other funding
88,204,000     Private development contributions
136,867,000     Total Non-DMC funds

204,650,000     Total infrastructure funding