Sep. 25—ROCHESTER — A $85.6 million two-year spending plan was approved by the state’s Destination Medical Center Corp. board Thursday.
The plan includes $38.4 million tied to infrastructure investments aimed at improving public spaces in tandem with Mayo Clinic’s “Bold. Forward. Unbound. In Rochester” expansion.
“We realize it’s the largest request we have before you, other than Link (Bus Rapid Transit), but we think the moment calls for it,” Rochester Deputy City Administrator Cindy Steinhauser said of the funding that will also create improved connections between downtown and the Kutzky Park neighborhood.
With Mayo Clinic expected to fund $75 million in public infrastructure improvements as its $5 billion downtown expansion, DMC Economic Development Agency Director of Public Experience for Strategic Infrastructure Brooke Carlson said it’s an ideal time to consider changes to improve patient and resident experience in nearby public spaces.
“We are in this moment for transformation,” she said. “We are tearing up streets every day in our downtown.
“Let’s rebuild them and connect them to the surrounding areas in a way that really honors those who live here and work here and use these spaces every day,” Carlson said.
Carlson, who joined the DMC EDA staff after four years as Rochester City Council president and a DMCC board member, said the proposed changes to downtown and the eastern portion of the Kutzky Park Neighborhood follow study that revealed a variety of concerns and opportunities.
“It’s a really special place,” she said of the neighborhood on the edge of the Mayo Clinic campus. “But it’s a place made up of different people with different needs. There are hospitality houses, hotels, faith institutions, social service organizations and mixed density development already in this neighborhood.”
Proposed work is expected to include creating streets with landscaped buffers and tree canopy, as well as safe options for pedestrians and bikes amid cars throughout a roughly 45-block area.
Several existing neighbors, from residents to representatives of organizations operating in the area, stepped up prior to the budget discussion Thursday to support the efforts.
Inetta Reddell, a Kutzky Park resident and board member of United Way of Southern Minnesota, said the investments that improve access to the area will help neighbors and visitors, as well as the nonprofits located in the area.
“I encourage you to prioritize people-first streets and a continuity of trusted gathering spaces,” she told the board. “These are the foundations of community cohesion and opportunity.
Steinhauser said new private development is expected to continue in the area, with a dozen or so developers already in varying levels of discussion regarding future projects. She said it could add 1,300 to 2,000 new housing units, as well as 200 to 400 new hotel rooms, and bring the potential to increase the area’s property tax capacity by more than 10 times.
“I would say these numbers are fairly conservative when thinking about what potential exists in the city of Rochester,” she said.
While the DMCC board approved the proposed spending in 2026 and 2027, DMC EDA Executive Director Patrick Seeb said more work must be done to determine specific aspects of planned improvements, which are expected to create new pedestrian-oriented connections throughout the area surrounding Mayo Clinic’s downtown campus.
“This is somewhat aspirational and intentional,” he said of concepts presented Thursday, adding that specific projects will require board and City Council approval before funds are spent.
DMCC Board Chairwoman Pamela Wheelock said her experience with transportation planning at the University of Minnesota has shown her turning aspirations into a concept benefiting users can be challenging.
“It’s easy to put a drawing together that suggests where a pedestrian, a two-wheeled or one-wheeled vehicle, versus an automobile or delivery van or a major truck will be and where they are supposed to be,” she said. “What happens is the unpredictable behavior, where everyone ends up wanting to be in the same spot at the exact same time.”
She said she expects the projects that will be presented will create an enhanced and elevated experience for residents and visitors using the area.
Steinhauser said it’s the goal of the city, DMC EDA and Mayo Clinic to create a safe experience for those passing through the area.
“I think we are all grounded in that this is a people-first space,” she said. “We need to understand that it is the neighbors that walk these streets, and there are 3,300 unique visitors that land at Mayo Clinic each day.”
The proposed infrastructure projects are expected to be funded with state DMC infrastructure funds.
With the nearly $181.5 million in state funds remaining for the final 10 years of the 20-year DMC initiative, Seeb the EDA seeks to average roughly $20.3 million in state infrastructure spending a year.
He acknowledged the 2026 and 2027 proposals exceed the goal, but said state and other public funds remain as future resources.
In addition to downtown infrastructure spending aligned with the Mayo Clinic expansion, the 2026 and 2027 plan calls for setting aside $200,000 for wayfinding efforts during downtown construction and $6 million for strategic development, which could provide support for a variety of unforeseen projects that meet DMC goals.
The planned capital investments for 2026 and 2027 also include $27.3 million in state and county transit aid for the implementation of Link BRT and $2.5 million in previously approved infrastructure funds for work toward construction of a Sixth Street bridge over the Zumbro River.
Another $10.2 million in city DMC aid is expected to cover city and EDA operating expenses tied to the DMC initiative for the next two years.
In other business, the board:
* Held a public hearing and approved district boundary modifications associated with plans for the city’s Link Bus Rapid Transit system.
* Approved a $123,761 Downtown Historic District Infrastructure for facade improvements and mechanical replacements at 317 S. Broadway Ave.and a $14,000 grant for mechanical replacements at 319 S. Broadway Ave.