Latest news with #DestinationMedicalCenter
Yahoo
23-05-2025
- Business
- Yahoo
Gov. Tim Walz, other leaders cheer progress made by DMC at halftime of the 20-year project
May 22—ROCHESTER — Billed as a coach's halftime talk, Gov. Tim Walz lauded the vitality of Rochester and Mayo Clinic to hundreds of community leaders gathered for a luncheon to mark the 10-year milestone of the 20-year-long Destination Medical Center initiative. "Everybody wants this," as he gestured to the crowd and downtown Rochester. "I hear that everywhere I go, especially with governors, when I'm talking about what you have in Rochester. They're always like, 'Oh, I wish we had that.' It's an incredible engine ... As goes Rochester, so goes Minnesota. And I would argue, as goes Minnesota, goes the Upper Midwest." The celebratory luncheon was held at the downtown Hilton hotel in the Dr. John Noseworthy Hall, named after the former Mayo Clinic CEO who originally launched the DMC initiative. The 10-year anniversary marked by DMC ties back to April 2015, when the DMC Corp. adopted the official DMC Development Plan. The retired Noseworthy took to the podium himself to cheer the economic development progress of the past decade and remember its history. "The heart of the DMC story is acknowledging that for decades, Mayo Clinic has been a national treasury, and increasingly in the modern era, an international treasury. At its heart, DMC was and is a commitment to ensure that the infrastructure necessary to enable such future success is in place," he said. Noseworthy described DMC as a bipartisan vision that echoed Mayo Clinic's historic moments, when Dr. Charlie Mayo drove the founding of the first versions of Rochester Community Technical College and the Rochester International Airport. He added the original "City on the Hill" vision of Mayo Clinic started with the idea of relying solely on its reputation to attract patients without any advertising or self-promotion. "But 25 years ago, the world was changing. In the early years of the 2000s, medicine became increasingly competitive, including top medical centers vying for the kinds of patients that Mayo Clinic attracted. Mayo would need to make changes to remain the leader ... The idea was formed for a Destination Medical City and these leaders, some of whom are in the room, began their work," said Noseworthy. "The stakes are high for everyone. It's hard work fueled by the possibilities of improving the lives of our patients and of our communities. There have been frustrations, mistakes, apologies, regrouping, highs and lows nailed by intention and agonizingly long days. This measured, patient, consensus-seeking methodology has been ongoing every day for the last decade. And many of you are the architects of this amazing transformation." Former Gov. Mark Dayton, another retiree who helped shepherd the DMC initiative, described the massive economic development project as a memorable success of his administration. He said it was an easy vision to support. "When Dr. Noseworthy announced Mayo's proposal to establish the next Destination Medical Center here in Rochester to further enhance your standing as the world's premier medical institution, I was thrilled and immediately announced my support," said Dayton. Walz, whose speech wrapped up the event, concluded by returning to the theme of a halftime pep talk. "We are solving some of the world's biggest issues right here in Rochester, and we're doing it in a collaborative way. We're doing in a way to keep the charm of a small city," he said. "If this is halftime, we're leading at halftime and we're not going to settle for setbacks. This would be one time, where I would say, 'Let's run the score up this.'"
Yahoo
27-03-2025
- Business
- Yahoo
Record Mayo Clinic DMC investment seen as other private development drops
Mar. 26—ROCHESTER — Overall private investment related to the Destination Medical Center initiative bounced back in 2024, but non-Mayo Clinic development continued to decline in the DMC district for the sixth year. DMC Corp. Board Chairwoman Pamela Wheelock said she expects Mayo Clinic's investment in its planned $5 billion "Bold. Forward. Unbound. In Rochester" expansion will spur other development in the wake of economic headwinds caused by the COVID-19 pandemic and higher interest rates. "Once you actually start to see this massive, multi-billion dollar physical space start to emerge, that in and of itself (will) compel people to think about this community and the opportunities," she said of the six-year expansion project. "The savvy developer or business owner will get in before you can start to see some of that get out of the ground," she added. With work already started, Mayo Clinic is reporting its DMC-related investment in 2024 rose nearly 32%, from $134 million spent in 2023 to $176 spent last year. The expansion effort began with utility and infrastructure work, as well as the expansion of the Prospect Utility Plant on the north end of Mayo Clinic's downtown campus. "We are really ramping up with a lot of the work we have in process right now," said Doug Holtan, Mayo Clinic's chairman of the Department of Facilities and Support Services. The 2024 Mayo Clinic spending was the organization's largest reported DMC-related investment since 2013, when tracking of work related to the initiative began. Holtan also said 2024 investments included work related to the re-opening of Herman House for mental health services, added work on the Anna-Maria and Stephan Kellen Building dedicated to research and continued work on Mayo Clinic's proton beam therapy expansion project, which is slated to start seeing patients in mid-2027. It was part of an overall increase in private investment from $146.2 million spent in 2023 to $185.5 million spent this year, but non-Mayo Clinic investment dropped by 26%, from $12.5 million in 2023 to slightly less than $9.3 million in 2024. The combined private investment is part of the annual DMC report to the Minnesota Department of Employment and Economic Development, which was approved Wednesday afternoon by the state's DMC Corp. executive committee, ahead of the document's April 1 deadline. The annual report is a requirement for receiving up to $30 million in state funds each year of the 20-year DMC initiative, which can be used for public projects in the DMC district. While the Mayo Clinic investment included in the DEED report can include any development and upgrades throughout the city, the related investments by other developers and business owners must be within the district boundaries. Since 2015, $1.88 billion in the private DMC investment has been reported, with $548 million outside Mayo Clinic. Work has ranged from restaurant upgrades to the creation of new hotels and apartment buildings, but DMC Economic Development Agency Executive Director Patrick Seeb said the decline following a $135 million peak in 2018 isn't surprising. He said development cycles that see spikes similar to the 2018 investment, followed by $131 million in 2019, often see an "absorption phase," when developers will determine what is needed and whether a particular market is saturated. Citing 14 developers in discussions with local officials to build apartments, hotels and life-science facilities in the DMC district, he said he anticipates future investment will increase. "I think we have every reason to believe when markets stabilize, when interest rates stabilize, there is a lot of pent up demand and eyes are on Rochester," he said. The private spending reported in 2024 points to some anticipated development, with $836,000 of the $9.3 million spent used to clear sites for future development. It included $606,000 tied to demolition of the former Kmart building and $180,000 to demolish homes and other buildings on the block bounded by Sixth and Fifth avenues and Third and Second streets in northwest Rochester. Other non-Mayo Clinic development was focused on business and housing expansion in and surrounding the downtown core. The largest 2024 project reported was $1.9 million spent on renovations leading to the June opening of Ruth's Chris Steak House in the Kahler Grand Hotel, 20 Second Ave. SW. In a close second was $1.8 million reportedly invested in remodeling Residence @ Discovery Square, 511 Third Ave SW, to add 20 first-floor apartments. While development declined in the DMC district, Rochester Deputy City Administrator Cindy Steinhauser said the city has seen its two highest years of citywide commercial investment in 2023 and 2024. "I think that is a direct result of the kind of change that is happening and the work in the DMC district," she said. As growth is seen outside the district, Seeb also predicted private investment in the upcoming years will eclipse reports seen in the first 10 years of the DMC initiative, largely fueled by Mayo Clinic's expansion. He presented a graph that pointed to the potential for more than $400 million being spent this year, with annual increase leading to a nearly $1 billion investment in 2029. While the numbers aren't definite, he said they are estimates based on plans and discussions currently underway. While more growth is expected in the next five years, Steinhauser said the 2024 report to DEED offers a positive reflection on the DMC initiative as economic winds shift. "It's been a good year and a healthy year, in spite of some of the private-sector challenges out there in relation to interest rates and other issues," she said. The continued release in state funds is also tied to reported city support for the initiative, and the Rochester City Council recently confirmed the city contributed nearly $5.8 million in support last year. It brings the total city contribution to $73 million of its expected $128 million 20-year contribution, as the initiative hits the halfway point.
Yahoo
15-03-2025
- Business
- Yahoo
EDITORIAL: We estimate that Rochester has a lot of work to do to regain public trust in its estimates
Mar. 15—Rochester's elected leaders, as well as the city's professional administrators and planners, are taking some well-deserved heat right now regarding the ballooning projected cost of a taxpayer-funded sports complex on the city's southeast side. That heat is well-deserved — but in retrospect, signs of potential trouble were evident months before voters went to the polls to sign off on the project. In July 2023, the city released a 148-page study on the Regional Sports & Recreation Complex . This document covered a lot of ground, but for today's purposes, we refer readers to page 74, on which is found a Summary of Development Costs. Three possible price tags are listed for the combined costs of land acquisition, construction, furnishings and equipment: Low — $65.1 million; Mid — $74.2 million; and High — $81.3 million. Voters who went to the polls six months later to approve an extension of the city's local-option sales tax had the "Low" price tag in mind. The ballot question earmarked $65 million for the sports complex, and that's the figure Rochester residents had heard repeatedly in the run-up to the vote. If anyone was talking about a possible $81 million price for the complex, they weren't being heard. It turns out that even that higher figure would not qualify as a good ballpark estimate. Current cost projections stand at $120 million, and the final number might keep growing. We wish we could shrug our shoulders and call this a one-off, an outlier, a case in which our leaders' best efforts were undone by unforeseen circumstances, but we can't. This funding gap is part of a disturbing pattern that gives Rochester residents ample reason to scoff when city officials talk about the likely costs of any future projects — as well as the benefits, financial and otherwise, that those projects might yield. For example, the Link Bus Rapid Transit system was initially projected to cost $114 million, but that price has grown to $175 million — and the current bidding process isn't providing much assurance that costs won't keep rising. Local taxpayers won't pick up the tab for these extra costs, but if you're compiling a list of Rochester projects that keep getting pushed back as their price tags rise, this one is near the top. Then there are two problem areas — some might call them money pits — in the heart of downtown Rochester. The Peace Plaza renovation, known as the "Heart of the City" project, cost $19.4 million in state-provided Destination Medical Center funds. The end product is at best underwhelming, has required a lot of maintenance and repairs, and might ultimately need to be completely redone. Some of the plaza's much-talked-about paving stones lie in the shadow of another problem property — the Chateau Theater. Formerly an iconic part of the downtown scene, the site has been in limbo since the city purchased it a decade ago for $6 million. Rochester has invested another $4.4 million in plumbing, electrical repairs and acoustic upgrades, yet the Chateau seems little closer to a final, functional form than it was 10 years ago. We could go on (don't get us started on when or if the $84 million expansion of Mayo Civic Center will pay for itself), but you get the idea. At the moment, Rochester seems to have a habit of being overly optimistic, then being caught off-guard when reality hits. Granted, these are unusual times. A global pandemic took a heavy toll on Rochester's tourism economy. A post-COVID spike in inflation caused material costs to soar, and when Mayo Clinic announced its "Bold. Forward. Unbound." plan in November 2023 (after voters approved the sports complex funding), it instantly changed the construction environment in Rochester. Until Mayo's expansion is complete, the clinic will claim the lion's share of the region's carpenters, electricians, concrete workers and other skilled trades workers. And now we must worry about tariffs and trade wars. But Rochester needs to expect the unexpected as it considers expensive future projects that will take years to bring to fruition. Whatever a project might cost if it were being built today, it will cost significantly more when the first yard of concrete is poured 18 months from now. Stuff happens. We're not accusing anyone of deliberate deception, but we can accuse the city of sloppiness and complacency, especially regarding the sports complex. Our leaders painted a pleasing-yet-fuzzy picture, then said, "We'll flesh out the details after we have the money." Rochester voters tend to give its leaders the benefit of the doubt, and that's what the city was counting on. In retrospect, the Post Bulletin's editorial board probably should have protested, but we didn't. We, like a majority of voters, accepted that fuzzy picture at face value — and we now realize that our trust was misplaced. We're not ready to tear up plans for the sports complex and go back to square one, but we're far from alone in at least considering that option. The mere fact that we're talking about such a possibility is proof that Rochester's leaders have a lot of work to do to regain the public's trust.
Yahoo
15-03-2025
- Health
- Yahoo
City launches website for downtown Rochester construction updates
Mar. 14—ROCHESTER — The City of Rochester launched , a new online resource designed to provide residents, visitors, patients, and downtown employees with updated information on construction impacts and community partner happenings. The website reflects ongoing collaboration between the city, Destination Medical Center and Mayo Clinic, according to a statement from the City of Rochester. This centralized platform serves as a hub for: * Pedestrian, bicycle, and vehicular maps to help navigate the evolving downtown landscape. In downloadable, printable, and online versions. * Upcoming city and partner events to keep the community engaged and informed. * Community partner resources offering valuable connections and support. * News highlights to provide the latest updates on construction progress and key developments. As downtown Rochester continues to evolve, including with Mayo Clinic's "Bold. Forward. Unbound. in Rochester" project and the Link Rapid Transit projects, the website will provide "seamless access" to critical information, creating connectivity and convenience for people who live, work and visit the area.
Yahoo
13-03-2025
- Business
- Yahoo
Link Bus Rapid Transit learning opportunities planned
Mar. 12—ROCHESTER — The start of construction of Rochester's Link Bus Rapid Transit project is being accompanied by a pair of virtual sessions and open office hours to provide background, insight and upcoming schedules for the project. Link is a $175 million project being funded with state and county Destination Medical Center transit funds, as well as a nearly $85 million in federal funds. The system will include a 2.8-mile route through downtown with designated transit lanes along Second Street, between Avalon Cove Court Southwest and Third Avenue Southeast, as well as approximately four blocks south on Third Avenue. The service is expected to feature 12 dedicated stops along the route every five minutes during peak periods and every 10 minutes at other times, with no fare charged for a ride. Virtual sessions, titled "On the Move: Understanding Link BRT," are planned for 7:30 a.m. and 2 p.m. Wednesday, March 19. Links for the 45-minute sessions are: * for the 7:30 a.m. session. * for the 2 p.m. session. Sessions will be recorded and posted on the Link BRT website. City staff is also planning an in-person sent of office hours from 1 p.m. to 3 p.m. March 21 in the Spyhouse Coffee Roasters meeting room, 601 Second St. SW, to allow people a chance to drop in and ask questions. No formal presentation is planned.
