(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.