The legislation supports $3 billion Mayo Clinic investment in Rochester
(Saint Paul, Minn.) – Today, State Representative Kim Norton introduced legislation to support the Destination Medical Center (DMC) initiative, a significant economic development project announced last week by the Mayo Clinic. The legislation would finance public infrastructure needed to accommodate growth and the increased patient and visitor traffic to Rochester caused by the DMC expansion.
“I am proud to sponsor the DMC legislation. This project is expected to create 25,000 to 30,000 jobs in Rochester and will help the Mayo Clinic and Minnesota thrive in the future,” said Rep. Norton. “Prior to any state contribution to the project, the Mayo Clinic will begin making a $3 billion investment, which is expected to spark an additional $2.1 billion in private investment. Minnesotans will receive an excellent return on investment with the confidence of knowing tax dollars will not be spent until the Mayo Clinic carries through with its commitment.”
The legislation calls for the creation of a medical center development authority that would have powers similar to other redevelopment authorities to oversee the infrastructure projects in Rochester related to the DMC expansion.
The projects will utilize $585 million over the next 20 years from the State. The legislation proposes paying for infrastructure projects by capturing a portion of increases in state income, property, corporate, and sales tax revenues that were caused by the Mayo Clinic’s new investments.
Unlike other Minnesota economic development initiatives in the past, the DMC legislation would only provide funding for new public infrastructure after the State has proof that the new tax revenues were generated by the private investments made by the Mayo Clinic and related-private investments in Rochester.
“This legislation is not just good for Rochester and the Mayo Clinic,” said Rep. Tim Mahoney, co-sponsor and Jobs and Economic Development Chair (DFL – Saint Paul). “The Mayo Clinic is an asset for all of Minnesota and ensuring it remains competitive in the global marketplace is a smart investment for our state.”
“With the support of Governor Dayton and a bipartisan group of legislators from around Minnesota, I am hopeful this bill will gain momentum through the legislative process,” said Rep. Norton.
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