Private investments in Destination Medical Center exceeded $152 million in 2015 and are on pace to reach a $200 million threshold to return state funding to the initiative this year, according to a report due to be filed with a state office.
The Destination Medical Center Corporation Board of Directors were scheduled to meet Thursday morning to review the report, a certification of expenditures due to the commissioner of the state's Department of Employment and Economic Development by April 1.
The DMCC board meeting was canceled due to weather conditions when only local members Rochester Mayor Ardell Brede and city councilman Mark Hickey — who attended his first meeting since replacing Ed Hruska — were able to attend and others encountered problems video conferencing into the meeting.
DMCC Board Chairwoman and Lt. Gov. Tina Smith said she would file the report on behalf of the board.
"I will ask our counsel to submit this document to DEED and with the understanding that despite our very best efforts we were unable to get the board together to officially vote to submit, and then we'll have to do it at our rescheduled meeting," Smith said.
The DMCC board is expected to reschedule its regular meeting for a date in mid-April, said DMC Economic Development Agency executive director Lisa Clarke.
According to the report, which was available in the public meeting materials, private investors including Mayo Clinic have totaled $152.4 million in cumulative investments from the beginning of the initiative in 2013 through the end of 2015.
Total expenditures in 2015 totaled $106.2 million, including $85.7 reported by Mayo Clinic. The remaining $20.5 million came from private investments within the DMC boundary area, reported by the city of Rochester. The previous cumulative total for private investment was $46.2 million, which brought the new 2015 total to $152.4 million.
This is the first year the city was required to report private investments to DEED, so its $20.5 million total includes private investments from 2013 through 2015. Prior to 2015, the city had been in talks with DEED to determine which investments would qualify as certified expenditures, said Gary Neumann, assistant city administrator.
The city's largest private investment reported this year was the Plaza on Historic 3rd, a development that produced $10 million in DMC investment. The building's tenants include Terza and La Vetta restaurant and lounge.
Smaller investments included a $500,000 private development of 400 South Broadway, including tenants Limb Lab and Cambria. Blue Sky Dental, located in the DMC sub-district Discovery Square, reported a $300,000 investment.
The city's reported investments do not include its $6 million purchase of the Chateau Theatre; the sale closed in early January this year.
Mayo Clinic's investments in 2015 included a $17.5 million expansion of its Superior Drive Support Center and an $11 million modernization of Mayo Clinic Hospital St. Marys campus and Mary Brigh Tower.
The DMCC board, the city and Mayo Clinic are required to certify private investments through DEED each year; when private investments reach $200 million, the state will begin to return General State Infrastructure Aid based on the amount of annual private investments over the $200 million mark.