Destination Medical Center Corporation Commits Nearly $12 Million for Housing and Historic Preservation

(Rochester, Minn.) May 23, 2024 – At their quarterly meeting today, the Destination Medical Center Corporation (DMCC) Board of Directors committed nearly $12 million for projects in the DMC District, focusing on housing and historic preservation. The housing projects include a mixed income development at Civic Center North by Sherman Associates and an affordable senior housing development at the West Transit Village by Aeon.  Once completed, these developments will add more than 400 homes to the downtown area, all within walking or easy transit to jobs, services, restaurants, and entertainment. DMC’s support of the Sherman development ($3.0M) will ensure that it connects to Rochester’s newly established Geo-Thermal district energy system.  The Aeon project is the first of several new developments that will provide housing options at the west end of Rochester’s Bus Rapid Transit system (LINK).  DMC’s commitment of $3.9M will advance the project as it pursues other funding sources. The vision for the West Transit Village is to create a vibrant, desirable community that enhances the BRT experience, offering a better alternative to car travel. “The totality of these projects will help address the housing shortage in Rochester,” said DMCC Board Secretary Paul Williams. “It’s encouraging to see a mix of market-rate, affordable, and senior housing in these developments.” The board also took action to designate the Downtown Historic District as public infrastructure, making it eligible for DMC funding. The DMCC board approved $5 million to support eligible capital improvements in the 28 contributing properties in the district. Projects must fall within four categories of investment:

• Adaptive reuse: Converting property use, such as office to retail or restaurant, or renovating vacant second-story space for housing or commerce.
• Building system upgrades: Improvements to HVAC, electrical, plumbing, and other systems.
• Building safety and preservation: Exterior envelope sealing, accessibility improvements, and more.
• Code modernization: Upgrades to ensure compliance with ADA or other regulations, and preparations for future reinvestment or sale.

“It is vital that we continue to support our downtown properties,” said DMCC Board Member Brooke Carlson. “Downtowns contribute to the fabric of every community; this program will ensure Rochester’s historic properties can be improved and preserved for the future.” Board members also discussed DMC investment priorities in preparation for the 2025 DMC funding request. Strategic direction from the board, along with DMC goals, guiding principles, and priorities, will shape the annual request before it is presented to the DMC EDA Board of Directors, DMCC Board, and Rochester City Council for approval. The DMCC Board will consider the 2025 budget at its next meeting on September 26, 2024, 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.