Destination Medical Center Will Create Tens of Thousands of New Jobs
In Rochester earlier this week, Governor Mark Dayton was joined by Speaker Paul Thissen, Majority Leader Tom Bakk, House Majority Leader Erin Murphy, Mayor Ardell Brede, local legislators, and other community leaders in announcing a historic Destination Medical Center (DMC) initiative. This 20-year public-private partnership is aimed at securing Minnesota’s competitive position as an international hub for health care and medical advancement, and making the Rochester region an economic center for job growth and business development. The state’s $455 million investment in the project over the next two decades will leverage an estimated $5.6 billion in local and private investment, and create tens of thousands of new jobs in Minnesota.
“This initiative will secure Minnesota’s position as one of the world’s premiere destinations to receive medical treatment; it will create tens of thousands of good-paying jobs for Minnesotans and make Rochester an even better place to live, work, and raise a family,” said Governor Dayton. “Those who said that state government should play no role in a project like this are just flat out wrong. This project demonstrates the value state government can bring to the table. By partnering with the private sector, we can accomplish great things together for the people of Minnesota.”
Over the last 150 years, Mayo Clinic has earned an international reputation for excellence in health care and medical advancement, treating more than half a million patients in its Rochester facilities every year. Today, Mayo Clinic is Minnesota’s largest employer, providing good-paying jobs for more than 40,600 Minnesotans, including over 33,000 in Rochester, and generating a $9.6 billion annual economic impact to the State of Minnesota – roughly 4 percent of the state’s total GDP. And each year, Mayo Clinic contributes approximately $1.5 billion in tax revenue to the State of Minnesota and local governments.
With the new DMC initiative, Mayo Clinic is poised to expand dramatically, making targeted investments in the Rochester community that will secure the region’s position as one of the most elite medical destinations in the world. As a result of this initiative, Mayo Clinic will add another 25,000 to 30,000 Minnesota jobs over the next 20 years. Economic development generated by DMC will also result in the creation of thousands of more jobs in the region – including construction jobs.
“This is great news for Minnesota," said John Noseworthy, M.D., Mayo Clinic president and CEO. "The DMC plan offers many benefits for our state, including significant job creation, new tax revenues and strengthens Minnesota as a worldwide destination for health care. Mayo Clinic is grateful to Governor Dayton and the state legislature for their leadership. Thanks to their commitment, the financing tools are now in place to fund the public infrastructure that will support significant investment by Mayo Clinic and the private sector over the next 20 years.”
State funding for DMC will be supplemented by an additional $3.5 billion from Mayo Clinic, $128 million from the City of Rochester and Olmsted County, and an estimated $2 billion from private investors. The initiative will also generate an estimated $3.2 billion in state tax revenue over the next 20 years. In total, the project will leverage an estimated 22 to 1 return on the state’s investment.
"The need for world class medical care and treatment will only grow in the next twenty years,” said state Rep. Kim Norton, author of the bill in the House. “Mayo Clinic's expansion will attract other private investors and bring growing numbers of patients and employees to Rochester. This DMC investment will assure the city has the infrastructure and capacity to grow in exciting new ways."
"We can now say that Rochester will be the home of the greatest medical center on the face of the earth for years to come,” said state Sen. David Senjem, who authored the bill in the Senate.
State funding for the DMC initiative will be used to fund projects for public infrastructure, including the acquisition of property, demolition or repair of buildings, land remediation, and site improvement. State funds will also be used for the construction of buildings, parks, roads, transit facilities, parking facilities, and other cultural and recreational amenities that will enhance the region’s quality of life and encourage additional growth by making Rochester an even more desirable place to live, work, and raise a family.
These infrastructure improvements are crucial to support and sustain economic growth in the region and Rochester’s downtown center. To date, infrastructure repair and construction have not kept pace with the rapidly growing Mayo Clinic – putting a strain on the city’s resources, and limiting the possibilities for future growth. Right now there is an eight-year waiting list for parking spots at Mayo Clinic; current projections show hospitality businesses in Rochester will need 1,100 more hotel rooms in the coming years just to serve the families, friends, and guests of Mayo Clinic patients.
The DMC initiative will be subject to a high standard of transparency and oversight. Use of state, local, and private funds contributed to the initiative will be overseen by an eight-member board. The board will be responsible for the operation of the Destination Medical Center Corporation (DMCC), which will abide by open meeting laws and be governed according to the state’s data practices laws. Each year, the City of Rochester and the DMCC will submit a report to the legislature detailing their finances and activities. No state funding will be invested in the project until $200 million has been secured by Mayo Clinic and private investors.