INDUSTRY.

YOU GOT THAT GOING FOR YOU ANYWAY.

>> ABSOLUTELY.

>> Eric: THANKS VERY MUCH FOR COMING OVER.

>> THANK YOU TH.

>> ERIC: THE STATE’S THIRD-LARGEST CITY, ROCHESTER, IS HOME TO THE NATION’S NUMBER ONE MEDICAL CENTER, MAYO CLINIC.

A MORE THAN $5 BILLION PUBLIC-PRIVATE PARTNERSHIP IS REMAKING ROCHESTER.

REPORTER KAOMI LEE WENT TO OLMSTED COUNTY TO FIND OUT HOW THE DESTINATION MEDICAL CENTER INITIATIVE IS GOING, HALFWAY THROUGH.

>> Kaomi: ROCHESTER IS A CITY WITH A NEW SKYLINE.

>> I WAS SERVING IN THE HOUSE.

WHEN MAYO CLINIC APPROACHED.

ALL THE LEGISLATORS THAT WERE RUNNING FOR OFFICE THAT YEAR AND KIND OF GAVE THEM A BRIEFING.

ABOUT THIS CONCEPT.

>> Kaomi: A CONCEPT THAT IS NOW AT THE HALFWAY MARK OF A 20-YEAR PLAN.

DESTINATION MEDICAL CENTER IS THE STATE'S LARGEST PUBLIC-PRIVATE PARTNERSHIP TO DATE.

AN INVESTMENT SUPPORTERS SAY WAS NEEDED FOR THE STATE'S LARGEST EMPLOYER.

>> MAYO CLINIC DOES A LOT TO BRING BOTH EMPLOYEES AND MEDICAL PATIENTS TO OUR COMMUNITY.

THE LONGER THEY WERE HERE, RESEARCH SHOWED, THAT THEY WERE HAPPY WITH MAYO, BUT THE LONGER THEY WERE HERE, THEY WERE DISSATISFIED WITH OUR COMMUNITY.

>> Kaomi: IN 2013, STATE LAWMAKERS APPROVED $585 MILLION IN STATE AND LOCAL FUNDING.

THE OUTLAY WAS O LEVERAGE BILLIONS IN PRIVATE INVESTMENT.

>> WE ARE INCREDIBLY FORTUNATE TO HAVE AN INSTITUTION LIKE MAYO IN MINNESOTA.

AND IT'S AN ASSET NOT JUST FOR THE COMMUNITY BUT FOR THE ENTIRE STATE.

>> Kaomi: PAM WHEELYOLK CHAIRS THE SEVEN-MEMBER D.M.C.

CORPORATE BOARD.

THE MAYO CLINIC HAS SPENT A BILLION AND A HALF DOLLARS SO FAR IN A $3.5 BILLION PLEDGE.

IT RECENTLY ANNOUNCED PLANS FOR A $5 BILLION EXPANSION CALLED BOLD, FORWARD, NBOUND, THE LARGEST SINGLE PRIVATE INVESTMENT IN THE STATE.

>> IT IS MULTIPLES OF THE MALL OF AMERICA OR THE VIKINGS STADIUM.

IT IS A HUGE COMMITMENT BY AN ENTITY FOR A PRIVATE INVESTMENT.

>> THE AMOUNT OF GROWTH THAT WE CONTINUE TO HAVE REQUIRED NEW CONSTRUCTION.

>> Kaomi: DOUG HOTELON IS CHAIR OF FACILITIES AT MAYO CLINIC.

HE SAID THE PLANS INCLUDE A LOGISTICS BUILDING, TWO CLINICAL BUILDINGS AND TWO DOWNTOWN PARKING GARAGES BY 20340.

THE >> NEW TEMPERATURES WILL HAVE BOTH INPATIENT, OUTPATIENT ACTIVITIES, REALLY LOOKING AT A NEIGHBORHOOD CONCEPT FOR HOW WE DESIGN OUR SPACES, HOW WE PROGRAM OUR SPACES.

SO YOU'RE BRINGING ALL THOSE CRITICAL ACTIVITIES TO THE PATIENT.

>> Kaomi: FOR THE FIRST TEN YEARS, THE D.M.C.

HAS BEEN FOCUSED ON 15 LOCKS OF STREETS, SEWERS AND INFRASTRUCTURE.

IT'S ALSO BUILT WITH A HOPE TO BE A COLLABORATIVE BIOTECH AND BIO PHARMA HUB CALLED DISCOVERY SQUARE.

PATRICK SEEN IS CEO AND MEETS ME THERE.

>> A BIG PART OF THE AMBITION AROUND DESTINATION MEDICAL CENTER WAS REALLY TO GROW THE ECONOMY AROUND THIS VERY HEALTH CENTRIC COMMUNITY AND HEALTH CENTRIC CITY.

>> Kaomi: AT DISCOVERY SQUARE, SEEB SAYS THERE ARE NOW MORE THAN 20 COMPANY NOW MORE THAN 20 COMPANIES THERE LIKE REON AN $8 MILLION WET LAB IS PLANNED.

>> WE'RE VERY OPEN TO PARTICIPATING WITH INDUSTRY.

>> SHE IS MEDICAL DIRECTOR FOR RESEARCH INNOVATION AND BUSINESS DEVELOPMENT OF THE BIO LABS EFFORT AT MAY WROA CLINIC.

>> THERE'S A STILL A LOT OF SHELF SPACE IN DISCOVERY SQUARE TOO THAT'S WAITING TO BE CONSTRUCTED.

I THINK WE'RE WAITING TO SEE WHAT ARE THE MARKET NEEDS.

>> WE MAKE A PRODUCT THAT LETS YOU GROW CELLS OUTSIDE THE BODY AND WHEN YOU PUT THEM BACK IN, YOU CAN TREAT A VARIETY OF DIFFERENT DISEASES.

>> ONE COMPANY WITH INTEREST IS MILL CREEK LIFE SCIENCES IT.

WAS ONE OF THE FIRST MAYO SPINOFFS IN 2001.

CEO BILL MEASURE EASH SAYS ROCHESTER'S ECOSYSTEM IS SMALL BUT GROWING.

>> BIWROA TECH IN GENERAL IS GOING TO GET BIGGER.

IS IT GOING TO GET BIGGER HERE?

IT DEFENDS ON WHAT MAYO CAN DO TO SPIN THINGS OUT.

>> Kaomi: HE SAYS FUNDING IS A BIG CHALLENGE.

ANOTHER IS ROCHESTER'S SMALL POOL OF WORKERS.

THAT MEANS COMPANIES ARE FIGHTING FOR THE SAME STAFF OR EVEN POACHING THEM.

HE SAYS D.M.C.

PUTS ON NETWORKING EVENTS FOR COMPANIES TO MEET.

BUT -- >> THERE'S OT A LOT OF COLLABORATION BETWEEN COMPANIES?

IN DOWNTOWN ROCHESTER, CONSTRUCTION IS EVERYWHERE.

I AM STANDING AT THE FUTURE BUS RAPID TRANSIT CORRIDOR.

OFFICIALS SAY IT WILL BE A GAME-CHANGER Q.R.

CODE MOVING PEOPLE DOWNTOWN.

BUT IT'S COME UNDER FIRE, FOR ITS 1 $1 MILLION PRICE TAG.

WHICH THIS EAR BALLOONED TO $35 MILLION MORE.

AND ITS COMPLETION DATE HAS BEEN DELAYED TO 2027.

STILL, D.M.C.

OFFICIALS SAY THERE'S A LOT TO CELEBRATE.

>> WE HAVE ACHIEVED OR OVERACHIEVED IN ALL OF THE METRICS THAT WE SET OUT AROUND CAPITAL INVESTMENT, JOB GROWTH, NEW TAN GENERATION AND IMPROVING THE EXPERIENCE.

>> IN TERMS OF THE ECONOMIC DEVELOPMENT, I THINK IT'S GOING REALLY WELL.

YOU SEE THE APARTMENT COMPLEXES.

YOU SEE SOME OF THE NEW HOTELS THAT HAVE BEEN BUILT.

BUT THE PANDEMIC, YOU KNOW, DID BRUISED THE DOWNTOWN QUITE A BIT AND STALLED SOME OF THE MOMENTUM.

>> Kaomi: THE D.M.C.

SAYS IT'S DOUBLED HOUSING.

ONLY 20% ARE AFFORDABLE OR INCOME RESTRICTED.

THE D.M.C.

BOARD JUST APPROVED MILLIONS FOR MORE UNITS.

IT SPENT 48% OF THE PUBLIC DOLLARS SO FAR.

OLMSTED COUNTY SAYS NEW BUILD VALUATIONS IN THE D.M.C.

HAVE INCREASED BY 579 MILLION SINCE 2015.

>> THE HIGH REAL ESTATE VALUATIONS, THEY DON'T ALWAYS MATCH WHAT THE REALITY OF A BUSINESS AND WHAT IT MIGHT COST TO DO BUSINESS DOWNTOWN WITH WHAT THEY'RE ACTUALLY ABLE TO BRING IN WITH REDUCED FOOT TRAFFIC.

>> ENTREPRENEUR SAMMY LOU OPENED A KOREAN RESTAURANT DOWNTOWN BECAUSE ROCHESTER DIDN'T AVE ONE.

SHE DOES SEE A VIBRANT DOWNTOWN ROCHESTER ONE DAY, BUT A FEW YEARS IN, SHE DOESN'T KNOW HOW LONG SHE CAN LAST.

>> THERE'S NO ONE COMING FOR LUNCH.

EVEN THOUGH THE LUNCH PRICE IS $20, PEOPLE AREN'T COMING, SO MAYBE IT'S TOO EXPENSIVE, SO WE DROP IT TO 15.

>> ARE BUSINESSES STRUGGLING DOWNTOWN?

>> FOR ME MYSELF, I EEL LIKE STRUGGLE.

>> Kaomi: ACCORDING TO THE STATE DEPARTMENT OF EVENUE, TOTAL CITY PROPERTY TAXES HAVE GONE UP NEARLY 7% ON AVERAGE EACH YEAR SINCE 2013.

BUT VALUATIONS HAVE ALSO GONE UP.

MORE PROPERTIES ARE HIGHER VALUATIONS MEAN INDIVIDUAL TAX BURDENS GO DOWN.

HOWEVER, SOME SAY THAT'S NOT HOW IT EELS.

TAKE, FOR EXAMPLE, LONG-TIME DOWNTOWN BUSINESS OWNER JOHN KRIEZEL.

>> WHEN D.M.C.

WAS NNOUNCED, IT GENERATED A GOLD RUSH FOR ACQUIRING PROPERTIES IN THIS AREA.

>> Kaomi: HE OWNS A BUILDING IN THE CITY'S HISTORIC DISTRICT.

HE SAYS SINCE 2013, HIS PROPERTY TAXES HAVE GONE UP BY $18,000, ADJUSTED FOR INFLATION, THAT'S ABOUT 13,000, OR A 53% INCREASE.

HOWEVER, HIS PROPERTY VALUATION ALSO INCREASED BY 81%.

HE SAYS HIS INSURANCE SKY-ROCKETED.

FOR OM AND POP STORES, HE SAYS MANY CAN'T AFFORD TO STAY.

>> THE CONSTRUCTION THAT TOOK PLACE FOR D.M.C., WHO WHAT THE MEDICAL COMPLEX REQUIRED PLAYED A MAJOR ROLE.

BUSINESSES LEFT.

THEY EITHER CLOSED THEIR DOORS PERMANENTLY OR MOVED TO WEST CIRCLE DRIVE.

>> Kaomi: THE D.M.C.

AND THE DOWNTOWN ECONOMIC ALLIANCE HAVE SUPPORTED LIVE MUSIC AND STREET FAIRS.

STILL, ENTREPRENEUR CHRIS ARMSTRONG SAYS THE PRECOVID VIBRANCY DOWNTOWN HAS BEEN LOST.

>> THERE HAS TO BE THINGS WE WANT TO COME DOWNTOWN FOR.

MOST OF IT'S SET UP FOR PATIENTS.

IT'S NOT SET UP FOR RESIDENTS.

>> Kaomi: A PROPOSED CITY YOUTH COMPLEX HAS ONLY FANNED THOSE SENTIMENTS.

THE PROJECT HAS COME UNDER FIRE FOR GOING OVER BUDGET.

AN INDOOR FACILITY FOR LOCALS MAY BE SCUTTLED.

HOWEVER, OUTDOOR BALL FIELDS COULD REMAIN.

SOME SAY IT'S FAMILIAR.

>> THE COMMUNITY DOES FEEL LEFT OUT.

THERE'S NO RESOURCES FOR OUR MUSLIM YOUTH.

THERE'S NO TYPE OF -- THERE'S NO TYPE OF EVEN ANY TYPE OF OUTREACH.

>> Kaomi: SOME PUBLIC IMPROVEMENTS HAVE BEEN MADE TO SOLDIER'S FIELD AND PEACE PLAZA.

BUT A POPULAR YMCA CLOSED AFTER THE PANDEMIC WAS AND WAS SOLD TO AN APARTMENT DEVELOPER.

>> IT DOES REQUIRE A LOT OF RESILIENCE AND CHANGE, AND SO I DON'T DISMISS ANY OF THOSE CONCERNS.

>> Kaomi: CITY ADMINISTRATOR SAYS THE CITY CAN ONLY PROVIDE SERVICES BY TRYING TO GROW THE TAX BASE.

>> THERE IS THAT DYNAMIC