DMC investment continues as numbers inch toward goals
With the goal of encouraging more than $5.6 billion in private investment in 20 years, some define Destination Medical Center by the numbers, rather than designs and concepts.
To achieve the DMC goals, Mayo Clinic plans to invest $3.5 billion in Rochester and hopes to spur $2.1 billion in additional private investment. The legislation that created the effort commits up to $585 million in public spending, all of which will be used on expenses related to public infrastructure and project management.
The anticipated state and county contributions have shifted slightly from the estimated expenses in the first years, but the total public expense target remains the same.
Rochester is expected to kick in $128 million, while Olmsted County will provide $46 million, based on its obligation to cover 40 percent of the anticipated $116 million in transit costs. The state is expected to invest up to $411 million by the end of the 20-year plan.
So far, $297 million in private investment has been verified by the Minnesota Department of Employment and Economic Development.
Additionally, more than $131 million has been submitted for review, based on construction reports for 2017. DEED has until Aug. 1 to verify the numbers.
As for public spending, the city of Rochester leads the pack with $26.8 million listed in the DMC report sent to the Minnesota Legislature earlier this year. The county has provided $4.5 million.
The first state spending — $2.6 million — was released to the city last year, when documented private investment topped $200 million.
This year’s state contribution will be another $2.6 million, along with a match of 2.75 percent of new private investment confirmed by DEED.
If the full amount submitted as private investment for 2017 is confirmed, that could bring this year’s state contribution to nearly $6.3 million.