(Rochester, Minn.) March 10, 2022 – The Destination Medical Center Corporation Executive Committee approved a report documenting 2021 private investment in the DMC district of more than $155 million. This brings the cumulative total to more than $1.3 billion in private investment since the beginning of the DMC initiative in 2013.

The 2021 figures include $110.6 million in Mayo Clinic investment and $44.7 million by other private investors. The 2021 private investment, along with the cumulative investment since 2013, will release approximately $29.2 million in state public infrastructure funding later this year.

DMCC Board Secretary Pamela Wheelock said, “These have not been the easiest couple of years to do any kind of investment in any community. This is something to pause and recognize and celebrate. So, congratulations to all of you who have done the heavy lifting to make that possible.”

The state aid supports many community benefits including new jobs and businesses, accessible public spaces, generational improvements to streets and sewers, increased mobility options, greater arts and culture programming and overall downtown vibrancy.

When asked about projections for 2022 and beyond, DMC Executive Director Patrick Seeb highlighted Mayo Clinic’s 5-Year Plan that documents future capital improvements for their Rochester campus, potential development in the proposed Link Rapid Transit corridor, as well as resources from the Main Street Grant program from the Minnesota Department of Employment and Economic Development as points of optimism. “Like all markets we may face headwinds due to commodity pricing, supply chain disruptions, interest rates, and workforce. One area we do address is workforce. With the mayor leading the way with the Bloomberg Global Challenge around women in construction, specifically BIPOC women, we will continue to see growth of our workforce in the built environment.”

2021 private investments, an $11 million improvement over 2020, were seen in housing, hospitality, and life science, as well as vital improvements to the rebounding downtown sector.

“I would just like to say how proud I am to pass along this report to the state. Along with leveraging private investment, we are seeing housing for our incoming workforce and small businesses and entrepreneurs reinvesting in Rochester. We can see that Destination Medical Center is working,” said DMCC Chair R.T. Rybak.

To release state funding over the span of the initiative, DMCC must present the Minnesota Department of Employment and Economic Development (DEED) with an annual accounting of qualified private investments from Mayo Clinic and other private investors in the DMC district. DEED is then responsible for certifying the investments and qualifying DMC to receive state funding for public infrastructure projects.

The next DMCC Board Meeting is scheduled for May 18, 2022 at 9:30 a.m.

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About DMC

Destination Medical Center (DMC) is the largest public-private economic initiative in Minnesota’s history. The 20-year plan to transform Rochester into a global destination for health and wellness will attract developers, investors, startups, and entrepreneurs to live, work and play in America’s City for Health. For more information, visit dmc.mn.

 

(Rochester, Minn.) February 4th, 2022 – Yesterday, the Destination Medical Center Corporation (DMCC) Board of Directors passed a resolution to support staff in pursuing design improvements to the Bus Rapid Transit project, known as “Link”. The purpose of the proposed improvements advances the goals of creating a world-class experience for customers and providing equity of access, as well as optimizing federal funding.

The areas being looked at for inclusion in the project are:

• Enhanced station user experience focused on weather protection and sustainable design materials with direct access to pedestrian subways.
• Realignment and extension of east terminus with a new station on 6^th SE, west of 3^rd Ave. SE.
• Expand project to include infrastructure investments not part of the original federal Capital Investment Grant.

“When we look at the potential development in this area, this will provide a huge opportunity for Rochester. I’m thrilled you are suggesting these changes,” said DMCC board member Jim Campbell.

The proposed design enhancements were developed through collaborations with community co-designers and stakeholders, as well as taking into consideration future connectivity and development outlined in the Downtown Waterfront Southeast small-area plan. Staff is recommending requesting any additional costs come from Federal sources in a revised Federal Transit Administration (FTA) application, keeping the local contribution the same.

The DMCC board also received an update on activities in the Discovery Square subdistrict. Several Discovery Square stakeholders were on hand to provide their perspectives on the importance of continued support for improvements, including Lizzy Haywood, CEO of People’s Food Co-op. “We employ 73 people with competitive wages and benefits. We are counting on the continued growth in this neighborhood for our long-term sustainability.”

Additionally, the board unanimously approved the resolution to submit the DMCC Annual Report to the Minnesota Legislature. The statutorily required report includes the DMC development plan, progress on projects in the development plan, actual costs & financing sources for projects completed in the past two years, estimated costs & financing sources for the next two years, as well as debt service schedules for outstanding obligations of the city for debt service issued for projects identified in the plan. The report was approved by the City Council on January 19, 2022.

The next DMCC Board meeting is set for Wednesday, May 18, 2022 at 9:30 a.m.

ROCHESTER, MINN. – In honor of Martin Luther King Jr. Day, January 17, 2022 and National African American/Black History Month in February 2022, the City of Rochester and Destination Medical Center are hosting an event for aspiring and current minority construction entrepreneurs on Thursday, January 27, 2022 from 10:00 a.m. – 2:00 p.m.

Kenneth Bush, founder of Minnesota Minority Trades Council, will be co-hosting the event. He comments, “Anybody can start a business with a positive attitude, willingness to learn and the right resources. The Minnesota Minority Trades Council helps entrepreneurs create a roadmap in order to get their business started by utilizing the resources that are in our community.”

Entrepreneurs will learn about the exciting economic growth of downtown Rochester driven by Destination Medical Center. Minnesota Department of Administration Office of Equity in Procurement and Minnesota Department of Transportation Office of Civil Rights will present on Disadvantaged Business Enterprise (DBE) certification and benefits of being certified.

Prime contractors and project sponsors are invited to attend the event from 12:00 – 1:00 p.m. Director of Diversity, Equity and Inclusion for Associated General Contractors of Minnesota, Yolanda McIntosh will be the lunch keynote speaker. Videos featuring our local DBEs will be shown. This is a great opportunity to increase exposure for our current and future DBEs. In the afternoon, local business development resources (RAEDI, Collider and SBDC) and private business consultants will present.

The event is being planned with both in-person and virtual options. The decision to host or cancel the in-person will be made on Monday, January 24. A complimentary lunch will be provided for pre-registered entrepreneurs attending in-person.

Minority community members working in construction (residential or commercial) or entrepreneur-minded individuals interested in owning/operating a construction business are invited to attend. Participants must pre-register by Monday, January 24, 2022 with Jorrie Johnson via email at [email protected] or 507-328-2016.

For more information about the City of Rochester and Destination Medical Center Targeted Business and Workforce Participation Plan program visit City of Rochester, Administration WBME & WF webpage.

The City of Rochester is hosting two public information sessions on the upcoming Downtown Sidewalk Experience Enhancement Project. This project, expected to occur in 2022, will replace the deteriorated brick inlay pattern sidewalks along Broadway from 2 Street North to 4 Street South, and also along Historic 3rd Street SW. Information about the project is available on the project website.

“This project is focused on improving the experience for those moving around our downtown. The sidewalks will be safer and the current blight of the deteriorated and patched brick will be eliminated. This is one of those important infrastructure projects that will have benefits for residents, visitors, and downtown businesses,” shares Cindy Steinhauser, Deputy City Administrator – Development Services & Infrastructure.

Patrick Seeb, Executive Director of Destination Medical Center Economic Development Agency highlights, “This project is a vital infrastructure improvement for our downtown. We listened to our community and made this project a priority. We are looking forward to working with local businesses and stakeholders on a Business Forward strategy to minimize the impact of construction on their operations.”

Downtown Sidewalk Experience Enhancement Project – Meeting 2
            January 13, 2022 from 9:00 a.m. to 10:00 a.m.
Microsoft Teams Link: https://bit.ly/3z78cVk
Call-in Number (Audio Only): 347-352-4853; Conference ID: 358 766 514

Downtown Sidewalk Experience Enhancement Project – Meeting 3

January 13, 2022 from 5:00 p.m. to 6:00 p.m.
Microsoft Teams Link: https://bit.ly/31cyQQe
Call-in Number (Audio Only): 347-352-4853; Conference ID #: 629 945 453

*The content presented at these sessions will be identical, so stakeholders do not need to attend both meetings.

One session, including the attendee Q&A, will be posted to the project website.

Downtown Rochester’s population grew at some of the fastest rates in the region over the last 10 years, according to a recently released study commissioned jointly by Rochester Downtown Alliance and Destination Medical Center.

“We first saw the need for this study in fall 2020,” said Holly Masek, RDA executive director. “We knew many daytime workers that downtown businesses rely on were moving to a hybrid work model and changing spending patterns, but we could also see new residential buildings were opening all around downtown. We wanted to find out who these new downtown residents were and if we could connect their consumer needs to our existing and future downtown business community.”

“Downtown Rochester has been described as the fastest-growing neighborhood in Rochester,” said DMC Director of Business Development Chris Schad. “Providing current retailers and potential retailers with relevant data to understand the customer-base in the downtown area is a vital piece of our plan.”

The study, which was completed by the Minneapolis office of Stantec, included quantitative demographic analysis, interviews with building managers, focus groups with residents of new and existing apartment buildings downtown, a digital survey of downtown residents, and interviews with downtown district managers in comparable neighborhoods in the country.

Since 2010, the findings include:

• Downtown’s population grew by 28.5 percent (twice the rate of Olmsted County)
• A total of 966 new housing units were built within a half-mile radius of downtown
• More than 1,840 new housing units were built within a one-and-a-half-mile radius
• Approximately 22 percent of downtown residents have a graduate or professional degree

The new residents of downtown include undergraduate and graduate students, young professional singles and couples, young families, and downsizing empty nesters. Residents are focused on walkability, inviting street life, experience-based shopping and dining, and products that are considered “local” or “authentic”. They are well-traveled and active, and often civic-minded. A previous DMC study found that a downtown resident is likely to spend seven times more in one year in a downtown neighborhood than a downtown employee, making these audiences vital to understand.

The report has been shared with City of Rochester officials and the downtown business community. It will now be incorporated into DMC materials used to recruit new retailers and businesses to the downtown core.

The full report can be found here.

About the Rochester Downtown Alliance
The Rochester Downtown Alliance is a nonprofit corporation comprised of a broad range of people representing property owners, business leaders, the city and others with a direct stake in enhanced business and economic development conditions in the downtown district. We work together to build a vibrant downtown community. We believe a strong core positively impacts the greater city of Rochester. Through a series of special events, activities, and initiatives, we create energy, excitement, and a unique character to Downtown Rochester, Minnesota.

About Destination Medical Center
Destination Medical Center (DMC) is a 20-year, public-private partnership, and economic development initiative. The $5.6 billion plan is the largest in Minnesota’s history and one of the largest currently underway in the U.S. The partnership, which began in 2013, combines Mayo Clinic private development with that of other developers and investors, in addition to public infrastructure investment from the city of Rochester, Olmsted County, and the state of Minnesota.

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(Rochester, Minn.) November 5, 2021 – The Destination Medical Center Corporation (DMCC) Board of Directors today praised progress on the development and implementation of a strategy for retail recruitment and retention in the Destination Medical Center (DMC) district in downtown Rochester.

The strategy supports a vibrant downtown retail experience for residents, visitors and downtown employees. It includes tactics that support the growth of existing retailers and the recruitment of new businesses.

“This is exciting and important work,” shared Brooke Carlson, City Council President and DMCC board member. “There are great opportunities to learn from models in communities with similar situations to our community. Walkable, mixed-density neighborhoods with resources near buy for students and other downtown residents will help make Rochester an even more desirable place to be.”

DMC Economic Development Agency (DMC EDA) conducted research on residents of downtown Rochester, the fastest growing neighborhood in the city, to help current and future retailers plan their businesses. It also analyzed current gaps in the retail environment, working with downtown visitors and residents to identify unmet needs. This information will be used to help promote downtown Rochester to businesses considering the area for a store, or to existing business hoping to adjust or expand their merchandise mix.

Future plans include a local, regional and national marketing campaign to raise awareness among site selectors and retailers about the opportunity represented by the downtown retail market. The strategy also involves temporary “popup” uses of vacant stores, properties and pre-development sites to create a sense of vibrancy and present opportunities for aspiring entrepreneurs. A retail incubator is also under consideration.

Board members also today commended and approved the use of DMC and the City of Rochester’s recent award of $3.12 million dollars from the Minnesota Department of Employment & Economic Development (DEED) as a part of its new “Main Street Economic Revitalization Program.” Rochester’s program will provide capital investment for downtown businesses and property owners who do not have sufficient capital to open, adjust or expand operations. Priority will go to BIPOC applicants and vacant properties.

The board also formally commended members Jim Bier and Michael Dougherty, whose terms will conclude at the end of this year. They also commended outgoing DMC EDA board President Jeff Bolton for his service following his recent retirement as Mayo Clinic Chief Administrative Officer.

The next DMCC Board meeting is set for Thursday, February 3, 2022 at 9:30 a.m.

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About DMC

Destination Medical Center (DMC) is the largest public-private economic initiative in Minnesota’s history. The 20-year plan to transform Rochester into a global destination for health and wellness will attract developers, investors, startups, and entrepreneurs to live, work and play in America’s City for Health. For more information, visit dmc.mn.

October 14, 2021 – ROCHESTER, MINN. – The City of Rochester and Destination Medical Center Economic Development Agency (DMC EDA) are pleased to announce the acceptance of the award of $3.12 million dollars from the Minnesota Department of Employment & Economic Development (DEED) as a part of their recently created Main Street Economic Revitalization Program. The grant dollars will be used to help central business districts rebuild and reposition themselves in the face of a substantially changing downtown economy. Rochester was one of eight communities receiving funding, with a total investment of approximately $40 million being invested across the state.

“Minnesota’s main streets are key drivers ofgrowth, and so many of them have suffered in the last 18 months,“ said DEED Commissioner Steve Grove. “These grants and loans will create jobs, and they’ll help spark investment in key commercial corridors across the state.”

“Following the initial shock of the pandemic, Rochester’s downtown business community responded with innovation, creativity, and determination. This grant program is yet another tool to support Rochester’s recovery,” said Patrick Seeb, Executive Director of Destination Medical Center Economic Development Agency. “Think of this as an economic booster shot.”

Rochester’s program will provide capital investment for downtown businesses and property owners who do not have sufficient capital to open, adjust or expand operations. Formal grant criteria will be established, including the prioritization of Black, Indigenous, and People of Color (BIPOC) participation. DMC will serve as the administrator of the grant.

“We believe deeply that Minnesota must fully recognize, mobilize, and support every business in the region if we are to realize a vital and sustainable economy. Part of our commitment is to the development and stabilization of minority businesses, which build and diversify our economic capacity,” shares Dee Sabol the Executive Director of the Diversity Council.

Before the pandemic, Rochester was already taking steps to diversify and improve the resiliency of its central business district. The program will provide distinct benefits to diverse populations in Rochester.

City Administrator Alison Zelms shares, “Rochester has a strong history of organizational partnerships, which have collectively worked together to best serve the community. This grant will support our work to assist our local businesses in their recovery from COVID-19 impacts. We know that we can move forward together in a way that will make Rochester even stronger and more resilient in the future.”

More information about the grant opportunity will be shared in the coming weeks.

Rochester Awarded 3 Million Dollar Main Street Grant from Minnesota Department of Employment & Economic Development

211014_MSERG Round 1 Announcement

Main Street Economic Revitalization Grant FAQs