DMC hits $200 million threshold, allowing access to state funding
Destination Medical Center reached a critical milestone Thursday with the announcement that the initiative has exceeded $200 million in private development.
The Minnesota law passed in 2013 requires DMC to hit the $200 million investment threshold before any state funds can be released for public infrastructure projects. Under the legislation, the incremental distribution of state funding is tied to continued private investment in the city.
“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, chair of the DMC Corporation Board.
On Thursday, the DMC Corporation Board submitted its 2016 private investment report to the Minnesota Department of Employment and Economic Development. The report shows $297.7 million in private investment from July 2013, when DMC was first signed into law, through the end of 2016.
Nearly half the total investment — $145.3 million — came in 2016, DMC's first full year as an economic development program.
The vast majority of the private investment in 2016 — $107.2 million — came from the Mayo Clinic. Other notable non-Mayo projects included the renovation of the Conley-Maass Building and the construction of several new apartment buildings.
All private developments within the DMC district, big and small, count toward the investment total. Mayo projects can happen anywhere in the city.
In a statement, Jeff Bolton, chief administrative officer of Mayo Clinic and president of the DMC Economic Development Agency Board, said the clinic is pleased with DMC's progress.
“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," he said.
Mayo is expected to invest $3.5 billion in Rochester over the 20-year span of DMC. The goal is to use the investment to leverage $2 billion in additional private investment and $585 million in public funding (includes $424 million in state support).
But to continue accessing the state funding, DMC will need to keep its foot on the pedal. According to the Lisa Clarke, executive director of the DMC EDA, there are now 14 projects either in the planning phases or under development — with a total value of more than $700 million. That includes DMC's Discovery Square project and the $115 million Alatus development near St. Marys Hospital, both of which are expected to break ground later this year.
“The momentum we’re building, based on this business model, has never been stronger,” said Clarke.
Cover photo: 501 on First / Med City Beat