Report: State Destination Medical Center spending has topped Rochester and Olmsted County contributions

Annual report to Minnesota Legislature shows nearly a third of anticipated $585 million in public funding has been secured for DMC infrastructure and support.

Mayo Clinic Anna-Maria and Stephen Kellen Building Topping Off
A signed beam is hoisted to the top of the Mayo Clinic Anna-Maria and Stephen Kellen Building construction site during a "topping off" ceremony Oct. 17, 2022, in downtown Rochester. Private development related to Destination Medical Center has fueled the release of a reported $97.6 million in state funds for related public infrastructure since 2016.
Joe Ahlquist / Post Bulletin file photo

ROCHESTER — State funding for the Destination Medical Center initiative have topped local public contributions for the first time.

According to a planned report to the Minnesota Legislature, Rochester has received nearly $97.6 million in state infrastructure aid connected to the DMC effort since annual payment started in 2016.

When combined with $79 million in city funds and $16.5 million in Olmsted County contributions since the DMC initiative launched, the public funding is nearly a third of the anticipated $585 million in anticipated public spending.

The Rochester City Council approved a report to the Minnesota Legislature on Monday that outlines the funds spent and highlights ongoing efforts, including construction of Discovery Walk and plans to facilitate future development along the Zumbro River. The state’s DMC Corp. board will also be asked to approve the required annual report on Thursday.

The report states $193.1 million of the potential $585 million in combined state, city and county funding has been spent or allocated within the first seven years of the 20-year effort.


So far, the city is closest to meeting its anticipated DMC contribution — $128 million — defined in the 2013 state legislation that created the initiative.

The legislation also calls for spending up to $411 million in state funding and $46 million in transit-related funding from Olmsted County.

City and county funds are being generated through a pair of 0.25% sales taxes, and the amount of state funds released each year is based on the continued level of private investment by Mayo Clinic and developers building in the DMC district.

The state’s Department of Employment and Economic Development has certified $1.26 billion in private DMC investment through 2021, and the 2022 investment totals are expected to be submitted by April 1 this year in a report that typically includes a second look at public spending with a more complete audit.

In addition to considering the annual report to Minnesota lawmakers on Thursday, the DMC Corp. board will participate in a joint meeting with the City Council, Olmsted County commissioners and members of the DMC Economic Development Agency board. The joint session will follow the DMCC board’s regular meeting at 9:30 a.m. Thursday in Mayo Civic Center.

Randy Petersen joined the Post Bulletin in 2014 and became the local government reporter in 2017. An Elkton native, he's worked for a variety of Midwest papers as reporter, photographer and editor since graduating from Winona State University in 1996. Readers can reach Randy at 507-285-7709 or
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