ROCHESTER, Minn. (March 23, 2017) – The Destination Medical Center Corporation (DMCC) Executive Committee announced today that the DMC economic development initiative exceeded the $200 million private development investment threshold –needed to trigger the release of state DMC dollars to be used for public infrastructure improvements – by $97.7 million, totaling $297.7 million in private investment.
“Reaching this important milestone reaffirms that we are on the right track, and Rochester is already experiencing growth and new opportunities,” said Lt. Gov. Tina Smith, DMCC Board Chair. “With the $200 million threshold met, I look forward to working with the State of Minnesota, Rochester community and Mayo Clinic to invest in transportation, world-class amenities, and other public infrastructure that supports opportunity for everyone.”
On behalf of the DMCC Board of Directors, the DMCC Executive Committee authorized Chair Tina Smith to submit the 2016 private investment draft report to the Minnesota Department of Employment and Economic Development (DEED). The report discloses a total of $297.7 million in total private sector investment from July 1, 2013 through the end of 2016, with nearly half of that total— $145.3 Million—invested in 2016 alone.
The new total is comprised of:
2013-2015 Total private investments $152.4 million
2016 Mayo Clinic private investments $107.2 million
2016 Non-Mayo Clinic private investments $38.1 million
Total private investments since July 1, 2013 $297.7 million
Major private investments include:
|Conley-Maass Building||$2 million|
|Lofts at Mayo Park||$6.37 million|
|Flats on 4th||$8.9 million|
|1st Avenue Flats||$4.9 million|
|Mayo Clinic Precision Medicine Facilities||$9.5 million|
|Mayo Clinic Hospital, Saint Marys Campus||$68.0 million|
In addition to larger projects like those listed above, the DMCC report discloses that more than 30 projects of varying dollar amounts contributed to the total invested for the year, including improvements to education venues, retail spaces, hotel accommodations, and commercial office space.
“Mayo Clinic is pleased that this important milestone has been reached and surpassed,” said Jeff Bolton, Chief Administrative Officer of Mayo Clinic and president of the DMC Economic Development Agency (EDA) Board of Directors. “This milestone ensures that key infrastructure investments will occur, solidifying Rochester as a national and international destination for patients with serious to complex healthcare needs while also continuing to serve the needs of our community. This investment will grow the economy of the greater Rochester area and the state of Minnesota.”
A Unique Public-Private Partnership
In 2013, the Minnesota Legislature recognized the statewide benefits generated by DMC but acknowledged that Rochester’s limited tax capacity would restrict its ability to finance the additional public infrastructure required to support the city’s future growth. Therefore, the Legislature adopted a unique public finance model to support the initiative, requiring proof of sustained private market activity prior to state public investment. Over the 20-year DMC timeline, a total of $585 million has been allocated by the DMC legislation, including an estimated $410.6 million in State general and transit support and a limited construction materials sales tax exemption.
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.
“The momentum we’re building, based on this business model, has never been stronger,” said Lisa Clarke, executive director of the DMC EDA. “We currently have 14 projects with a total value of more than $700 million under development or in the planning phases, and we’re receiving strong interest from real estate investors and developers from around the globe. Private investment and development, anchored by the creation of extraordinary public space and infrastructure, will provide unique, world-class experiences for patients, visitors and community members.”
With more than $5 billion in private investments anticipated over the next 20 years, most which will come from Mayo Clinic, Rochester, Minnesota will be positioned to become the world’s premier destination for health and wellness.
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