Private Investment Doubled in the DMC District in Rochester, Minnesota Exceeding a Quarter Billion Dollars in 2018

(Rochester, MINN) March 21, 2019 – The Destination Medical Center Corporation (DMCC) today announced that private investment in the Destination Medical Center (DMC) district totaled $262 million in 2018, a 100 percent increase over 2017.


The 2018 private investment will release approximately
$13.5 million in state public infrastructure funding. Since 2013, DMC has generated more than $690 million in private investment for development in Rochester.


“This is good news and is demonstrating that the DMC model is working,” said DMCC Board Chair R.T. Rybak. “Investors and developers are supporting the DMC vision.  Their investments in Minnesota’s largest economic development initiative will benefit the entire state.”


“The downtown we envisioned just a few short years ago is becoming a reality,” said Lisa Clarke, DMC Economic Development Agency executive director. “The infusion of capital that is transforming
Rochester is creating new living and hospitality choices as well as opportunities for startup businesses.”


Private investment in 2018 exceeded all previous DMC single-year investment totals.  Among the highlights were:

  • Mayo Clinic investments totaling $126.5 million, the largest single-year total and a year-over-year increase of $40.5 million (+47 percent)
  • Non-Mayo private investments of $135.4 million, the largest single-year total and a year-over-year increase of $90.4 million (+201%)
  • Private investment in 2018 qualified DMC for $13.5 million in 2019 state aid

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 in the DMC district. DEED is then responsible for certifying the investments and qualifying DMC to receive state funding for public infrastructure projects.

Nine project grand openings are scheduled in the DMC district in 2019.

Five Proposals Received for Chateau Theatre Operations and Management

Feb 16, 2019 – ROCHESTER, MINN – The City of Rochester is pleased to announce that five proposals were received in response to the Request for Proposals (RFP) for the initial operations and management of the historic Chateau Theatre.  The submissions included: Entourage Events Group, Exhibits Development Group, Arcades are Awesome!, Threshold Arts LLC, and Arts Trust Minnesota.

Deputy City Administrator, Aaron Parrish shares, “We are pleased with the number of proposals received.  It is always encouraging to see a mix of local applicants with those outside of the area.  We look forward to moving this process forward in a thoughtful and timely manner.”

Of the five proposals, three were from local entities and two were from entities who reside in the Twin Cities area.  Staff from the City of Rochester and Destination Medical Center Economic Development Agency (DMC EDA) are currently reviewing the submissions and will be bringing forward a review process in the coming weeks.  Community engagement will be a part of a to-be-defined selection process.

“The interest in the Chateau Theatre has been and continues to be strong.  This is reflected in the five proposals received,” says Patrick Seeb, Director Economic Development and Placemaking with Destination Medical Center Economic Development Agency.  All five proposals are diverse in their approach to use and activate the space.”

The Destination Medical Center Corporation Board of Directors and the Rochester City Council approved $1.1 million in funding for the renovation.  The escalator and second floor are expected to be removed in the coming weeks.  All initial work being done to the building is anticipated to be complete in mid-June 2019.

# # #

New Energy Benchmarking Program Available to Rochester Businesses

Feb 13, 2019 – ROCHESTER, MINN – The City of Rochester and the Destination Medical Center Economic Development Agency are excited to launch the Rochester Energy Benchmarking Program for businesses and building owners to track their energy use and identify ways to save money on utility bills.

The kick-off meeting will be held at the Rochester Public Library (101 2nd St SE, Rochester, MN 55904) in Meeting Room C on Tuesday, February 19, 2019 from 3:00 – 4:00 p.m.

Attendees will learn about the benefits of the program, hear from organizations that are currently realizing the benefits of benchmarking, and how to participate in this voluntary program.

Kevin Bright, Energy and Sustainability Director, states, “The creation of the benchmarking program is an important first step to help our local businesses identify ways to reduce their operating costs by saving energy.”

Building owners and facility managers are encouraged to attend. Representatives from participating organizations will be in attendance. There will be networking and light refreshments following the program.

Mayor Kim Norton shares, “Working collaboratively with the private sector through this benchmarking program are the types of creative solutions that are needed.  This work will help ensure Rochester meet its ambitious greenhouse gas reduction goals outlined in the City’s adopted Energy Action Plan.”

On April 24, 2019, the Benchmarking program will host a training session for interested organizations at Rochester City Hall in Room 104 from 8:00 am. – 12:00 p.m. This session will help organizations create and efficiently complete a benchmarking profile which is the core of participation in the program.

###

A digital version of this release can be found here.

Press Release: Destination Medical Center Corporation Board Green Lights Mobility Hub Locations in Rochester

(Rochester, MN) Feb. 5, 2019 – The Destination Medical Center Corporation (DMCC) Board of Directors today approved a resolution supporting two preliminary mobility hub locations in Rochester, MN, and authorizing up to $400,000 in financial support for additional studies and engineering.

The two recommended mobility hub locations – approximately four miles apart – will be connected by bus rapid transit (BRT). This high-capacity circulator will transport commuters, community members, and visitors into and around downtown Rochester in a safe, reliable, and efficient manner.

“We have chosen sites for transit hubs, but our vision is they are mobility villages where people can live, possibly work and park for the day,” said DMCC Board Chair R.T. Rybak. “We don’t just want to build ramps. We want to build communities.”

In addition to the significant progress with the DMC transportation plan, nine private development projects, totaling more than $300 million, have planned openings in the DMC district in 2019. They include: Hilton hotel, First Avenue parking ramp, One Discovery Square, Urban on First apartments, Residence at Discovery Square apartments, Hotel Indigo (Holiday Inn renovation), Wells Fargo renovation, Chateau Theatre short-term use renovation and the Ronald McDonald House expansion.

“2019 is a remarkable year for Rochester, noted DMC Economic Development Agency Executive Director Lisa Clarke. “We are well on our way to achieving the DMC vision and creating a livable, sustainable and vibrant city.”

In his new role as Mayo Clinic President and CEO, Dr. Gianrico Farrugia (jan-REE-koh fa-ROO-jah), a 30-year veteran with Mayo Clinic, met with DMCC Board members and provided a few remarks.

“Mayo Clinic’s commitment to Rochester, the state of Minnesota and DMC is very strong,” said Farrugia. “Mayo has experienced significant growth over the last five years, and we expect even more economic growth and development going forward.”

Farrugia noted that Mayo Clinic will invest over $1 billion in Rochester facilities and equipment between now and 2021.

Following the board meeting, DMCC hosted a collaborative session with the Destination Medical Center EDA Board, Rochester City Council and Olmsted County Board of Commissioners.

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.

###

New tenant announced in DMC’s Discovery Square during DMCC board meeting

(Rochester, Minnesota) Sept. 25, 2018 – The Destination Medical Center Corporation (DMCC) Board of Directors today recognized significant progress with several DMC projects. Among them – One Discovery Square – a Mortenson development consisting of 90,000 square feet of lab and office space that will cater to the life science economy.

Mortenson Director of Real Estate Development Jeremy Jacobs updated the Board on progress, and when asked about any new leases, he noted that Epic has signed on as a new tenant, joining previously announced anchor tenants Mayo Clinic and the University of Minnesota Rochester. Additional companies (large and small) will be announced within 60 – 90 days.  One Discovery Square is expected to open in April 2019.

DMCC Board approves four new development projects in downtown Rochester

The Destination Medical Center Corporation (DMCC) Board of Directors has approved public infrastructure funding of four new downtown Rochester development projects.

The DMC funding of $11.82 million supports $342 million in new investment, that includes waterfront development, Heart of the City redevelopment, and new hotel concepts. The projects will result in the creation of more than 450 new, permanent jobs and nearly 600 construction jobs.

Press Release: DMC proves the economic development model is working as board members applaud efforts

Rochester, Minn. (March 22, 2018) – The impact of Destination Medical Center (DMC) is being felt throughout the southeast Minnesota region, and DMC Corporation (DMCC) board members recognized considerable progress toward several private developments and previewed some proposed projects that continue to showcase Rochester as a prime market for investors, developers and entrepreneurs.

Action by the Board included authorization of a 2017 private investment report to the Minnesota Department of Employment and Economic Development (DEED) totaling more than $131 million. To release state DMC funding over the span of the initiative, DMCC must present DEED with an annual accounting of qualified private investments made within the DMC district. DEED is then responsible for certifying the investments and qualifying DMC to receive state funding for public infrastructure projects.

Momentum and Discovery Square Groundbreaking Highlighted at DMCC Board Meeting

FOR IMMEDIATE RELEASE – Rochester, Minn. (Nov. 2, 2017) – The Destination Medical Center Corporation (DMCC) Board of Directors today recognized significant progress toward several private developments, public infrastructure, business development, and planning goals of the Destination Medical Center initiative.

A significant highlight shared with the Board focused on job growth. More than 3,300 jobs were added since 2014 and construction activity at the four DMC-funded projects will result in more than 1,000 combined construction jobs.

The Board specifically acknowledged today’s groundbreaking by Mortenson on their Phase 1 building at Discovery Square.

“Discovery Square will be the place where Minnesota’s next generation of medical start-ups will want to be. It will create new opportunity for jobs, innovation, and economic growth and represents a major step toward fulfilling our mission of building America’s City for Health,” said Lt. Governor Tina Smith, chair of the DMCC Board of Directors. “I thank Mortenson, Mayo Clinic and the Rochester community for their work on the Discovery Square project. This is great news for Rochester and our state.”

Press Release: Progress and excitement build around Discovery Square as DMCC board supports Mortenson’s $35 million project in Rochester

ROCHESTER, Minn. (July 27, 2017) – The Destination Medical Center Corporation (DMCC) Board of Directors voted to approve the $35 million Mortenson project in the Discovery Square sub-district under the DMC Development Plan. The building is one in a series of DMC projects in the sub-district. The project will receive $4.9 million in DMC tax-increment financing.

“Today we take an important step forward with Discovery Square, a place where Minnesota’s next successful medical technology start-ups will be launched. This project will help diversify Rochester’s economy, create great jobs, and ensure Rochester remains America’s City for Health,” said Lt. Gov. Tina Smith, Chair of the DMC Board of Directors. “I thank Mortenson, Mayo Clinic, and the Rochester community for their work on this Discovery Square project. We have taken another important economic development step for the Destination Medical Center, Rochester, and Minnesota.”

DMC Transportation Work Session Provides Space for Fruitful Public Input

ROCHESTER, Minn. (June 14, 2017) – The Destination Medical Center Corporation (DMCC) Board of Directors held a Transportation Work Session today to provide an update on findings since the DMC Transportation Workshop in April.

“A sustainable, comprehensive transportation plan is essential to the success of DMC. Today, we had a valuable discussion about Rochester’s needs, now and in the future,” said Lt. Gov. Tina Smith, chair of the DMCC Board. “Together with the Mayor, City Council, Olmsted County Board, and the EDA Board, we looked closely at design options, with the goal of making transportation work better for people in the DMC district and throughout Rochester and the region.”