DMC Threshold Met, Opens Door for State Funds
Rochester, MN (KROC AM News) - State money can now start flowing to help cover the infrastructure costs of Mayo Clinic’s DMC initiative.
The DMC Corporation Executive Committee met Thursday and approved a summary that will be sent to the state for verification. It shows private development DMC projects through 2016 total nearly $300-million. The DMC legislation requires a threshold of $200-million before state funds can be tapped.
And there’s more to come.
There are 14 projects either under development or in the planning stages that are valued at more than $700-million. The DMC legislation authorizes state funds of $585-million over the 20 year period of the initiative.
A summary provided by the DMC’s Economic Development Agency shows these investments through Dec 31, 2016:
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
According to the EDA, the 2013 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.
“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.”