Destination Medical Center on track to hit $5.6B in new development in Rochester

ROCHESTER — Thanks to Mayo Clinic's $4 billion expansion announcement this year, Destination Medical Center will hit its goal to bring $5.6 billion in economic development to downtown Rochester by 2033. But DMC officials said Thursday at the group's annual meeting that there's still work to be done to transform Rochester into an international medical hub over the next decade.

Mayo's expansion will "have a propelling effect on opportunities to attract new businesses to Rochester," said Patrick Seeb, DMC's executive director.

Officials say they don't consider their goals quite met as Mayo Clinic has yet to bring finalized expansion plans before the city, let alone secure regulatory approval for some of its potential ambitions such as an increased bed capacity.

Mayo Clinic officials say they'll unveil those plans to the medical system's board and the community by the end of this year.

But there's already expanded interest from more biomedical companies around the globe to take advantage of the expansion. Clark Otley, the president of DMC's Economic Development Agency Board, said DMC officials have pitched Rochester in more than 25 markets this year, talked with more than 80 prospects and generated more than 100 leads.

"Our team from DMC is out there in the world, out there in the community, looking for opportunities," Otley said.

That includes cell manufacturing companies and groups that develop radioisotopes used for genetic treatments, among other things that mesh with Mayo treatment and research data.

Seeb pointed to Seer Medical out of Australia, which has worked with Mayo Clinic since 2018. Seer's seizure and epilepsy technology was cleared last year for U.S. use by the Food and Drug Administration. The company has since opened an office with 14 employees in Rochester.

Aside from continued recruitment. DMC plans to continue using the $585 million allocated by the Minnesota Legislature on infrastructure and beautification projects downtown, including a sanitary sewer project west of Mayo's campus to prepare for the upcoming expansion.

DMC is also a part of plans for a waterfront district and improved access to the Zumbro River. Officials will put up a permanent installation of the lighting display at DMC's 2021 annual meeting near the river to liven up the area, and more funding is expected to go toward a Sixth Street SE. bridge and water access.

Rochester Mayor Kim Norton, who sits on DMC's corporate board, noted state legislators recently toured the waterfront area in preparation for future funding while the city gathers resources for nearby development in neighborhoods southeast of the river.

"We're in design phase now," said Norton. "It's a little river in a big town, and we're going to capitalize on it in all the ways we can."

Seeb, who worked on St. Paul's riverfront development for the better part of two decades, said river access will likely lead to more demand to improve the Zumbro River's water quality, a longtime issue for Rochester. Seeb and others hope that will lead to more use among residents.

"Then it becomes a virtuous cycle," he said.