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Board adjusts DMC investment total

A tweak in the a report on private investment in the Destination Medical Center district could increase the state funding released later this year.

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An added $140,000 in reported 2018 private investment could add $3,850 to the state’s release of Destination Medical Center funds this year.

The DMC Corp. board approved an update this week to the annual report of private investment to the Minnesota Department of Employment and Economic Development. It increased the documented amount to $262 million.

The need for a change was reportedly discovered when DEED representatives visited Rochester following the filing of the April 1 report.

If approved, the state could confirm the release of approximately $13.5 million in DMC infrastructure funds this fall.

The adjustment in the report to DEED was made to non-Mayo Clinic private investments, increasing the value of work by developers and others from approximately $135.3 million to $135.5 million.

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In March, Doug Holtan, chairman of Mayo Clinic’s department of facilities and support services, said Mayo Clinic’s reported investment for 2018 was nearly $126.5 million, which remains in the updated report.

Holtan noted the reported investment is only a portion of the $274 million on major capital investments and improvements Mayo Clinic made last year.

While specific investments recorded by the city and DMC Economic Development Authority were released in March, Mayo Clinic has declined requests for the investments it reported in a separate filing to the state.

Shane Delaney, DEED’s communications director, said this week that Mayo Clinic’s report is considered nonpublic data until state funds are awarded, which is expected to be in August or September.

How much of the state’s committed $411 million is released will depend on the certified private investment.

The state releases $2.75 a year for every $100 in documented private investment in the DMC district beyond the first $200 million, which was reached in 2016.

With a combined $690.6 million in private investment documented since the start of the DMC effort, DMC EDA Executive Director Lisa Clarke said private investment is back on track with expectations.

Since 2015, estimated private investment within the DMC footprint has not kept pace with expectations. This year’s report puts the total within $2.4 million of the $693 million assumptions for total investment by 2018.

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The gap was filled after 2018’s private investments reportedly outpaced the DMC Development Plan’s forecast by nearly $100 million.

"We thought we’d be a little bit stronger on the front end of those first two years," Clarke said. "At the end of the day, we’re about on target with our plan."

Related Topics: MAYO CLINICFINANCE
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