Tag: Development

Destination Medical Center is Attracting Private Investment from Across the Country

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Destination Medical Center (DMC) is proving to be a magnet for private investment from across the country. In the case of seven DMC-supported projects, capital has come from Minnesota, California, Utah, Nebraska, Illinois, Florida and Massachusetts.

“One of our jobs is to drive investment and talent to Rochester and the state of Minnesota,” said Lisa Clarke, DMC Economic Development Agency executive director. “This shows that it is actually happening. We want people to invest here and stay here in Minnesota.”

Open houses provide opportunity for community to share ideas along proposed rapid transit route

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The City of Rochester and Destination Medical Center (DMC) are completing a comprehensive assessment and analysis of economic development opportunity, transit-supportive land use possibilities, public realm improvement options and infrastructure that will enhance access and ridership on a planned Rochester rapid transit system. The work will be used in the City and DMC’s collaborative planning with Olmsted County and Mayo Clinic as it relates to the development of the east and west transit villages that serve as the foundation for the system.

The proposed Rochester rapid transit corridor runs along 2nd Street SW and South Broadway Avenue. This new investment has the potential to add mobility options for residents, employees and businesses, guide future growth and development in a smart way, and enhance well-being.

To kick off this effort, two open houses will be held on Tuesday, February 4, 2020:

Mortenson Plans a Sequel to One Discovery Square

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Artist’s rendering of the proposed Two Discovery Square (left) with One Discovery Square (right).

Mortenson has submitted plans with the City of Rochester for a new development – Two Discovery Square – adjacent to its One Discovery Square life science building in downtown Rochester, MN. This news comes as global tenants continue to be announced in One Discovery Square, including most recently, Philips and Boston Scientific.

The proposed five-story, 124,000 square foot building furthers Mortenson’s bioscience, research and collaboration vision within the Destination Medical Center (DMC) Discovery Square subdistrict.

“One Discovery Square, highlighted by a number of recently communicated tenant announcements, has been a terrific success,” said Brent Webb, Mortenson Development Manager. “For that reason, we remain bullish on the future of the Discovery Square subdistrict. The Site Development Plan we submitted is evidence of that optimism and confidence, and it will be a positive step toward advancing the project once approved.”

“One Discovery Square is a great example of the DMC plan playing out in a very successful way – as a catalyst and economic generator to attract new businesses and jobs,” said Lisa Clarke, DMC Economic Development Agency executive director.  “This success compels new developments in the Discovery Square subdistrict. We look forward to these discussions as Discovery Square continues to grow.”

Mortenson will share its vision for Two Discovery Square with the DMC Corporation board of directors at its September 26 meeting.

New Energy Benchmarking Program Available to Rochester Businesses

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At the close of 2018, Rochester, Minnesota was awarded the state’s first LEED Gold City designation by the U.S. Green Building Council (USGBC), in recognition of the City’s effort to achieve significant municipal sustainability and resiliency goals. Kevin Bright, energy and sustainability director for the Destination Medical Center Economic Development Agency (DMC EDA) and City of Rochester is excited for the next chapter, which includes a new voluntary energy benchmarking program for Rochester businesses.

The Rochester Energy Benchmarking Program provides a platform for Rochester business and building owners to track their energy use and identify ways to save money on utility bills.

“The creation of the benchmarking program is an important first step to help businesses identify ways to reduce their operating costs by saving energy,” says Bright.

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 a.m. – 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.

Another educational resource for Rochester businesses and the public is the DMC EDA’s monthly sustainability series, now in its second year. The series, in partnership with the USGBC, is held the second Wednesday of each month at the Rochester Public Library from 12:00 – 1:00 p.m. and is free to attend.

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

Press Releases

(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.

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A Message from Lisa Clarke

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Rochester – A City on the Move

2019 will be a milestone year in the Destination Medical Center (DMC) district. From innovation to renovation, the growth happening in downtown Rochester is impressive. There are nine developments opening this year in the DMC district.

Among them are several DMC-supported projects, including:

In addition, Residence at Discovery Square apartments and the Ronald McDonald House expansion will debut.

Plus, a community treasure will experience a rebirth. Chateau Theatre, a Rochester institution, will re-open so residents and visitors to Rochester can experience new entertainment offerings in the Heart of the City. The Destination Medical Center Corporate (DMCC) Board and the Rochester City Council committed $1.1 million for this renovation.

This growth is energizing, bringing new living choices, hospitality and increased opportunities for startup businesses, and it’s just the beginning. With the increased density from new housing options in downtown Rochester, DMC will be collaborating with community partners to develop a retail, dining and entertainment strategy to ensure a robust and vibrant downtown for all to enjoy.

DMC is committed to a long-term transportation solution for downtown. This year, the DMCC Board and the Rochester City Council will move forward with selecting mobility hub locations and a circulator route to ensure fast, convenient and reliable transportation to and through downtown and assist in parking availability for residents, employees, students, patients and visitors in the future.

This is exciting, and we are less than five years into the implementation of the DMC development plan.  We have learned a lot and look forward to what the next five years will bring.

We appreciate the support of the community and the many partners who have contributed time and talent in support of DMC’s vision. Thank you.

Lisa Clarke, DMC EDA Executive Director

 

City of Rochester Opens RFP for First-of-Its-Kind Mixed Income Housing

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The City of Rochester and Destination Medical Center Economic Development Agency are inviting developers to submit proposals for a potential affordable or mixed-income housing development to be constructed in the air rights above a new city parking ramp.  This development project is the first of its kind for the City of Rochester.

The City is seeking an affordable or mixed-income housing development that provides for 50 percent or more of the units to be at rents affordable to persons at 60 percent of the area median income.

“The City of Rochester is especially proud of this parking ramp project given the opportunity to work with the development community to create more affordable housing in the downtown, says Terry Spaeth, Rochester Assistant City Administrator.  “We look forward to the creative ways in which a developer may approach this project.  We know that providing affordable housing is vitally important to the City’s success.”

A successful development project will promote the ideals of smart growth to create the following:

  • Provide affordable housing opportunities for persons at 60 percent area median income desiring to live close to employment, shopping, entertainment, without the necessity of relying on an automobile

  • Encourage the most efficient use of the downtown location

  • Establish a quality of sustainable design that will set a standard for future development in the area and integrates well with the current facility

  • Create a project that contributes to the goal of a walkable downtown

  • Implement innovative solutions/alternatives to address and reduce parking demand

“Workforce housing is a critical component of the Destination Medical Center (DMC) strategy as we continue to create a viable urban core for Rochester,” adds Lisa Clarke, executive director, Destination Medical Center Economic Development Agency. “This parking ramp is a DMC-funded ramp and the potential to develop a mixed-use project is an excellent opportunity to meet multiple needs – parking and housing – in downtown Rochester.”

The deadline to submit proposals is June 14, 2019.

Opportunity Zones add to Rochester’s economic development toolbox

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A new program added to the tax code by the Tax Cuts and Jobs Act of 2017 provides Rochester, Minnesota with new economic development opportunities.

An “Opportunity Zone” is an economically-distressed community where under certain conditions new investments may be eligible for preferential tax treatment. Areas qualify as Opportunity Zones if they have been nominated for that designation by the state and that nomination has been certified by the Secretary of the U.S. Treasury through his delegation authority to the Internal Revenue Service.

Minnesota Governor Mark Dayton identified the Minnesota Opportunity Zones approved by the federal government. Two of those are in Rochester. A portion of the Opportunity Zones overlaps within the Destination Medical Center (DMC) district in downtown Rochester.

DMCC Board approves four new development projects in downtown Rochester

Press Releases

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.

Construction begins on 2nd Street Alatus project

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Across the Destination Medical Center (DMC) District, a variety of development projects are underway, lending to an endlessly changing Rochester skyline. Now, with financing and approvals in place, construction of a new apartment community is underway at the intersection of 2nd Street SW and 14th Avenue SW in the St. Marys Place sub-district.

Alatus LLC, a Minneapolis-based company, will develop the $125 million mixed-use building on 2.77 acres across from Mayo Clinic’s St. Marys Hospital campus where The Brentwood (formerly The Blondell) and Ray-Mar Motel once stood.

The yet-to-be-named 13-story tower, with its 310 apartments and 37 townhomes, will be home to nearly 350 families in the historic Folwell neighborhood. The ground level of the building will include vibrant, pedestrian-friendly spaces including restaurants and retail, with office space and additional retail planned for the second floor. Amenities include a rooftop pool and indoor sauna, outdoor kitchen and grilling stations, fire pits, a state-of-the-art fitness center, and a year-round dog spa. The site will also add additional parking to the sub-district.