ROCHESTER, Minn. — Legislation has been introduced in both the Minnesota House of Representatives and Minnesota Senate to support Destination Medical Center (DMC), a $5 billion economic development initiative announced last week to secure and grow Minnesota's position as a global medical destination for decades to come.
"We're grateful for the broad showing of support for this bold vision for the future of Minnesota," says John Noseworthy, M.D., Mayo Clinic president and CEO. "We applaud and thank Rep. Norton, Sen. Senjem and a strong group of legislative supporters for their leadership. This legislation represents a once-in-a-generation opportunity to bring significant return on investment to the state through the creation of thousands of new jobs and billions in new tax revenues. This vision for the future will further establish Minnesota as a global leader in health care now and for generations to come."
Funds generated through the legislation will not go to Mayo Clinic. The legislation will finance public infrastructure necessary to leverage the significant private investments included in the DMC initiative and accommodate increased patient and visitor traffic to Rochester.
While Mayo Clinic will privately finance all of its facilities expansion, it is clear that the city of Rochester does not have the capacity to finance public costs exceeding $500 million, nor will a private developer pay for public infrastructure such as public parking, transportation and transit; utilities; land assembly and buy-down; environmental remediation; streetscape improvements; and plazas, skyways, bridges and public meeting spaces, etc. (link to funding diagram).
Public funds will flow to support DMC only after the private investment is made — a portion of the taxes associated with that private investment will be the source of public funding to support DMC.
"The Destination Medical Center finance plan is fundamentally a different model; it is built on the proof, not the promise, of growth," says Dr. Noseworthy. "The public investment is made over time and is based on a proven level of growth by the private sector. It is not upfront dollars based on the hope for investment.
"We designed this innovative proposal specifically to not compete for funding with other state priorities or impact the state's bonding capacity, but rather to create an opportunity for a great return on investment for the state and the continuation of a high-value partnership between Minnesota and Mayo Clinic. We look forward to working with legislators and local, regional and statewide leaders to make this a reality in Minnesota."Posted by mayonewsreleases