Investments continue to increase
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 by 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 has contributed at least $47.5 million of the $128 million it is slated to spend on the DMC effort.
By the end of 2018, Olmsted County provided $7.5 million of the $46 million it plans to invest for transit costs, which is based on plans to cover 40 percent of the anticipated $116 million in transportation expenses.
The state has provided approximately $9 million of the up to $411 million it has committed for the 20-year effort, with the contribution expected to climb this year based on private development by Mayo Clinic and other developers.
So far, $690.6 million in private investment has been verified by the Minnesota Department of Employment and Economic Development.
Additionally, approximately $261.8 million in additional private investment — $126.5 million by Mayo Clinic and $135.3 million by other entities — has been submitted for review, based on construction reports for 2018. DEED has until Aug. 1 to verify the numbers.
The first state spending — $2.6 million — was released to the city in 2017 when documented private investment topped $200 million.
Last year’s state contribution was nearly $6.3 million.
This year’s state contribution will be nearly $13.4, if the new private investment is confirmed by DEED.