Private investment in Destination Medical Center reached a new annual high in 2018, nearly doubling the previous year.
The DMC Economic Development Agency identified approximately $261.8 million in new private investment last year, according to a report presented to the DMC Corp. executive committee this morning.
“This investment growth reflects so many things going on in the community,” said Lisa Clarke, executive director of the DMC Economic Development Agency, in presenting the report. She said the results indicate the DMC development plan is working and attracting increased development interest.
The DMCC executive committee approved the report, which is due to the Minnesota Department of Employment and Economic Development by April 1.
The bulk of the reported increase in investment came from private developments outside Mayo Clinic properties. Private developers and others reportedly spent $135.3 million in the DMC district last year, more than tripling the $44.7 million spent in 2017.
Mayo Clinic’s reported investment also rose in 2018, reaching nearly $126.5 million, which is a more than $40 million increase over the $86.3 million documented in 2017.
While Mayo Clinic investments can include projects anywhere in the city, other reported private investment is confined to the DMC district, which covers the downtown core and stretches west along Second Street to just beyond the Saint Marys Hospital campus.
If the Minnesota Department of Employment and Economic Development confirms the entire $261.8 million in private investments for 2018, the state would more than double its annual release of funds.
Approval would bring this year’s state contribution to nearly $13.5 million for DMC-related public infrastructure projects, up from $6.3 million last year.
HOW IT WORKS
It’s all part of the unique finance model created by the 2013 DMC legislation, which aims to support the city’s public infrastructure needs as private market activity grows.
The legislation allocates $585 million in public funds for the 20-year DMC effort. Up to $411 million will come from the state, with the city providing $128 million and Olmsted County earmarking $46 million to help fund transit-related projects.
So far, the city has provided nearly $47.5 million, according to a DMC report sent to the Minnesota Legislature earlier this year. The county has provided $7.5 million.
The state has released nearly $9 million in infrastructure aid since the DMC effort began, with the first payment made in 2017.
Private investments throughout the two decades are expected to top $5.6 billion, with Mayo Clinic planning to spend $3.5 billion.