Blog – Recent Updates

(Rochester, Minn.) March 23, 2023 – The Destination Medical Center Corporation Executive Committee approved a report documenting nearly $200 million of new private investment in Rochester and the DMC district. This brings the cumulative total to nearly $1.5 billion in private investment since the beginning of the DMC initiative.

The 2022 figures include $172.6 million in Mayo Clinic investment, its largest-ever annual investment. This is a strong signal of Mayo Clinic’s commitment to further cement Rochester, Olmsted County and the state of Minnesota as a global destination medical center. The expansion of the Proton Beam Therapy Program and continued construction of the Anna-Maria and Stephen Kellen Building were two of the significant projects ongoing in 2022.

“The impact of this investment goes beyond the cost of the buildings,” said Doug Holtan, chair of Mayo Clinic’s Facilities and Support Services. “It leads directly to approximately $446 million in economic impact for the Rochester area economy with 99% of the work not done by Mayo Clinic staff is performed by Rochester Area Builders members.”

In addition, $26.5 million was invested by other private organizations. The 2022 report recognized continued investment in Bryk on Broadway, a workforce housing project offering units priced at 50%, 60%, and 80% of the gross Area Median Income. The DMC district saw a variety of projects from other private organizations contributing to improvements in Rochester’s downtown. This includes businesses new to Rochester like Interiors by J.Curry and Spyhouse Coffee, as well as existing businesses improving or moving into new spaces like Mezza 9 and  Neighborly Group. These and others totaled in excess of $26.5 million.

The 2022 private investment, along with the cumulative investment since 2013, will release $30 million in state public infrastructure funding later this year.

“I am really pleased to see the numbers from 2021 and 2022. Rochester is so fortunate compared to other communities,” said DMCC Vice Chair Kim Norton. “I am pleased to see the trend upward, and that even during the pandemic, we continued with a strong economy.”

Also at today’s board meeting, the executive committee approved a temporary change to the Bryk on Broadway developer assistance agreement to allow tenants with incomes up to 110% of the area median income to lease apartments in the complex, while at the same time, maintaining the same lease rates. This change will be for 54 of the 108 units that are set for individuals making 80% AMI. This temporary action will stay in effect through October 1 to allow time for the federal adjustment to more accurately reflect current incomes in our area. The action was also considered and passed by the Rochester City Council, acting as the city’s economic development authority, on Monday, March 20.

“I’m supportive of this proposal and I appreciate the flexibility,” said DMCC Secretary Paul Williams. “Bryk is a new model and it really helps demonstrate a new way of looking at affordable housing.”

The next DMCC Board meeting is set for Thursday, May 25, 2023, 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.

On February 9th, the Destination Medical Center Corporation (DMCC) Board of Directors approved $10 million to aid in funding improvements to Soldiers Field Memorial Park. After months of engagement with local stakeholder groups, a collaborative plan was put forth with a shared vision to benefit the greatest amount the Rochester community.

“The DMCC board not only recognizes the importance of Soldiers Field Memorial Park to the DMC initiative but also the immense significance it has for all of Rochester,” said DMCC board chair Pamela Wheelock. “This park has been a signature public space for decades and these improvements, selected through extensive community engagement, will make sure Soldiers Field continues to be welcoming and inclusive to residents and visitors alike.”

There are several key features that align with the DMC Development plan including using sustainable building practices and focusing on universal design. Some of the park improvements include:

• Expanded aquatics area with lap and wading pools, lazy river, and a splash pad.
• Inclusive playground and shelter on the east side
• Basketball courts and track improvements
• Downtown riverwalk

The Rochester City Council will consider this item at their Wednesday, February 22 regular meeting. The cost of the project is estimated at $22.5 million with $10 million coming from DMC funds and the remainder from federal, state, and local resources.

The DMCC Board of Directors also approved support for the next steps in the redevelopment of the downtown waterfront. This culminates a comprehensive community engagement process to reconnect to the Zumbro River, create a signature public space along the river, and open underutilized city-owned properties to future private development.

“Cities throughout the country are rediscovering the importance of connecting with the natural beauty of their riverfronts,” stated DMCC board member Kim Norton. “Rochester has an opportunity to do the same and to do so in a way that provides for both public and private development, as well as reconnecting with its origins.”

The funds will be used for the following:

• $350,000 for riverfront design and engineering including:
  • Working with appropriate State and Federal agencies to discuss necessary modifications to the river channel wall managed by the Army Corps of Engineers.
  • Red Owl/Time Theater property analysis
  • Site design and development preparation

• Up to $450,000 for the purchase of the Olmsted County-owned “Mr. Muffler” site.

The next DMCC Board meeting is set for Thursday, May 25, 2023, 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.

Rochester, Minn. – In response to the long-term impacts of the COVID-19 pandemic on downtown Rochester, a task force is being assembled to identify priority issues to be addressed.

The Downtown Rochester Task Force includes members from the City of Rochester, Destination Medical Center, Diversity Council, Experience Rochester, Mayo Clinic, Rochester Area Economic Development Agency, Inc., Rochester Area Chamber of Commerce, and Rochester Downtown Alliance.

“The pandemic was a disrupter to many aspects of our national, state, and local economies. How and where people work, shop, and participate in activities has changed,” states Kim Norton, mayor of the City of Rochester. “While downtown Rochester has and will change, there are several opportunities in how we can strengthen and become a more resilient downtown. And we must do this work together.”

The Downtown Rochester Task Force invites the community and downtown businesses to participate in upcoming work sessions to share specific challenges they are experiencing related to downtown. Together, attendees will identify both priority concerns and solutions. Once key priorities are identified, an action plan will be created to address each concern.

Four work sessions—three in-person and one virtual—are planned.

• Monday, February 27 from 6-7 p.m., Fagan Studio and Studio 324, 324 South Broadway Avenue
• Friday, March 3 from 9-10 a.m., Chateau Theatre, 15 1st Street SW
• Monday, March 6 from 2-3 p.m., Pasquale’s Neighborhood Pizzeria, 130 5th Street SW
• Tuesday, March 14 from 10-11 a.m. (virtual)

Patrick Seeb, executive director of Destination Medical Center, shares, “Everyone has a stake in a healthy downtown. Now is the time to be intentional about the steps we take to help accelerate recovery. We will build on existing strengths while focusing on the future.”

The Downtown Rochester Task Force will use an accelerated model in creating an action plan, which will allow participants to identify concerns and work on solutions quickly. The goal is to present an action plan by May 2023 to guide the Downtown Rochester Task Force moving forward. Register for the work sessions here.

Media Contacts
Geno Palazzari, Communications Manager
Destination Medical Center Economic Development Agency
Direct: 307-696-9088 | [email protected]

Megan Moeller, Communications and Engagement Coordinator
City of Rochester
Direct: 507-328-2436 | [email protected]

Molly Schmidt, Director of Marketing & Communications
Rochester Area Economic Development, Inc.
Direct: 507-288-0208 | [email protected]

 

FOR IMMEDIATE RELEASE

DMC Announces Second Phase of Main Street Grant Funding

December 21, 2022 – ROCHESTER, MINN. – Destination Medical Center (DMC) Economic Development Agency is pleased to announce the beginning of the second phase of grant funding from the Minnesota Department of Employment and Economic Development (DEED) Main Street Economic Revitalization Program. In partnership with Rochester Area Economic Development, Inc. (RAEDI), this round of grants will be for two business districts outside of the DMC district – Southeast Crossroads to Bear Creek Park area, and the Northwest Design District & Northgate Area.

“The Main Street Economic Revitalization Program funding remains critical to Minnesota’s recovery from COVID-19,” said Minnesota Department of Employment and Economic Development (DEED) Deputy Commissioner Kevin McKinnon. “These funds – put into the community through local partners like the Destination Medical Center Economic Development Agency – help create opportunity and energize economic revitalization across Minnesota.”

“These grant dollars are crucial for the businesses affected in these districts in Rochester. We are happy to partner with DMC in administering this grant and serving small businesses who are vital to our economy,” said RAEDI President John Wade.

While downtown Rochester has been severely disrupted by the pandemic, businesses in the surrounding neighborhoods have also experienced significant economic disruption. These neighborhoods tend to be more diverse, include strong BIPOC business ownership, and are highly dependent upon existing commercial establishments in areas that are typically food and service deserts.

DMC EDA and RAEDI seek to strengthen the position of Rochester’s neighborhood-based business centers. Catering to diverse populations, these areas provide unique commercial opportunities to the communities they serve. Walkable and served by transit, these business hubs are key destinations where residents shop, dine, and receive professional services. The typical business building in the two commercial corridors defined in this grant application was built in 1959, highlighting the potential need for capital improvements in these districts.

“The success of the Main Street program in Rochester is a testament to the resiliency of our business community; their desire to thrive and succeed,” said Patrick Seeb, DMC’s executive director. “We will continue to look for other strategic partnerships and opportunities to improve and strengthen Rochester’s economy.”

“I cannot stress enough how important this program has been to Rochester’s continued recovery,” said Rochester Mayor Kim Norton. “And now, through a new partnership, we can share this program with more needed areas in our community”.

The Main Street Grant program kicked off in May 2022. Thus far, the DMC EDA board and the community review team have recommended over $2 million to be distributed to 35 businesses in the downtown core.

All grant awards are subject to final approval from the Minnesota Department of Employment and Economic Development.

About the Main Street Grant Program

The Main Street Grant program provides grants for capital improvement projects that result in improvements to any permanent structure or other asset added to a property that adds to its value. The grant awards can cover up to 30% of the project costs with applicants securing other sources of funding to match any funds granted by this program. Funding comes from the Minnesota Department of Employment and Economic Development’s Main Street Economic Revitalization Program.

For more information on the Main Street Grant program and to apply, visit dmc.mn/ms.

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About Destination Medical Center

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. Destination Medical Center Economic Development Agency is a private non-profit established to provide experience and expertise in developing and marketing on behalf of Destination Medical Center Corporation. For more information, visit dmc.mn.

About Rochester Area Economic Development, Inc.

Incorporated in 1985, Rochester Area Economic Development, Inc. (RAEDI) is a public/private partnership for economic development that serves Olmsted, Dodge, Wabasha, and Fillmore Counties. Our mission is lead and support economic, community, and workforce development initiatives that retain, grow and diversify the greater Rochester area economy. Some of the services provided include financial packaging, business planning, site/location support, and business/community advocacy. For more information, visit www.raedi.com.

About Minnesota Department of Employment and Economic Development
DEED is the state’s principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade, and community development. For more details about the agency and its services, visit the DEED website.

At the November 10, 2022 meeting, the Destination Medical Center Corporation (DMCC) Board of Directors commended the process the City of Rochester and Rochester City Park Board have undertaken in working toward an equitable, sustainable, inclusive final design. The Rochester Parks Board adopted the Short-Term Soldiers Field Master Plan at their October 4, 2022 meeting.

There are several key features within the 2022 Soldiers Field Master Plan that align with the DMC Development Plan

• Continues to define Soldiers Field Memorial Park as an anchor and signature public space of the Education and Recreation Sub-district.
• Equitably designed spaces that are created with the specific needs of users.
• Provides a welcoming and inclusive park for a growing and diverse community.
• Incorporating sustainable design practices.

“We have a great opportunity with this project, the Riverfront, and key infrastructure, most notably Discovery Walk to differentiate us from our competitors,” said board member R.T. Rybak. “I strongly support putting funds into this project and making sure the City and Destination Medical Center are in alignment on how this incredible redesigned asset connects to Discovery Walk and the Riverfront.”

An update on the Main Street Economic Revitalization grant program was also provided to the board. To date, funding has been awarded to 36 different projects for a total award of $2.01 million with an average award of $56,000. 42% of the awardees are Black, Indigenous, and/or People of Color (BIPOC), woman-owned/led, and or/veteran-owned businesses.

The board also received an update on DMC’s equitable economic development strategies. DMC EDA staff members Kevin Bright and Wafa Elkhalifa were joined by Chao Mwatela, Diversity, Equity, and Inclusion Director Chao for the City of Rochester, and Dee Sabol, Executive Director of the Diversity Council to highlight this collaborative effort by the Rochester community toward ensuring that everyone in Rochester is included in the economic prosperity associated with the DMC initiative.

“This is what sets DMC apart from many other economic development initiatives; the buy-in from the DMC team and our partners,” said board member Brooke Carlson. “This is a collective community responsibility. It takes engagement and partnership across so many different sectors and representatives and leaders in our community as well as those living and breathing and experiencing the inequities in our community to come together. Thank you for setting the gold standard for how we do our work at the City and DMC through this co-design process and being the catalyst for how this work can be done across the state and across the country.”

The next DMCC Board meeting is set for Thursday, February 2, 2023 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.