Political Notebook

Mayo Civic Center instead of Mayo's DMC plan?

This morning, House Democrats unveiled an $800 million bonding proposal that includes $35 million for the Mayo Civic Center expansion. House Capital investment Committee Chairwoman Alice Hausmen noted during the committee's hearing on the plan that in 2009 Rochester leaders wrote a letter stating the civic center was an "important component" of Mayo Clinic's Destination Medical Center initiative.

"I think this is kind of the first step that we can take toward meeting that vision," Hausman said.

But Rochester lawmakers and city officials have been making the case that the Mayo Civic Center and Mayo Clinic's request for $585 million in state support to fund public infrastructure upgrades in the city are separate projects and should not be lumped together.

The ranking Republican on the committee, Rep. Matt Dean, criticized Democrats for not recognizing the difference.

"Saying we are doing something in Rochester, so that equals Destination Medical Community — that ain't the same thing. It probably ain't the same thing for the Mayo Clinic and the city of Rochester," he said.

He also noted the neither the governor's bonding bill proposal nor the House Democrats' plan has funding for the DMC project.

The governor did say he was willing to put money into his bonding plan for the DMC project depending on how lawmakers decide to move ahead with the plan. At this point, Mayo Clinic is pushing for the state to authorize the state to sell $585 million in appropriation bonds, which would be separate from the bonding bill.

Hausman has said previously that the $60 million included in the House bonding bill for projects in Rochester and Olmsted County — including the civic center — should count towards the state's share of the DMC plan. She fears the current plan to authorize borrowing for the whole project upfront could end up hurting the state's ability to borrow money for other projects in the future.

 

Mayo Civic Center faces steep odds in quest for grant money

A Minnesota state commissioner tasked with doling out $47.5 million for economic development projects warned on Tuesday that the city of Rochester faces tough odds in getting money needed to expand the Mayo Civic Center.

"This is such a big project, this is going to be very challenging. But I'll never say never," said Mark Phillips, commissioner of the Department of Employment and Economic Development.

Phillips was in Rochester on Tuesday speaking to members of the Rochester Rotary Club. He talked about the grant in an interview after his presentation to the club.

So why the uphill climb for the Mayo Civic Center project?

One issue is just the sheer size of the request. The city had asked for $35 million in bonding money to fund the $77 million project. It's possible the city could ask for less money, but it would still end up being a large chunk of the grant money. Then there's the issue of competition. Local governments have until June 26 to apply. Phillips said he's not sure what to expect in terms of the number of applications, but he has received at least 35 phone calls about the grant.

St. Paul Mayor Chris Coleman has already sent a letter indicating that his city plans to ask for $27 million to help fund a new St. Paul Saints stadium. The Metropolitan Council is also expected to apply for dollars to fund the Southwest Light Rail Corridor.

One thing that will likely limit the number of applications is a requirement that grant money awarded for projects be matched dollar for dollar.

Also important to consider are the politics. Phillips said House leaders approached him during the last legislative session to tell him that if they could not get enough support to get the St. Paul Saints stadium included in the bonding bill, they would put aside a pool of money with the stadium in mind. He said some promises were made in exchange for votes for a new Minnesota Vikings stadium.

"There wouldn't be a legislator on the planet that would be surprised if the Saints stadium was funded because of the fact there were a lot of St. Paul votes traded for a Saints stadium," he said. "There is a lot of expectation that the Saints will be funded. Whether that will happen or not, I don't know."

I'll have more about this in a story running in tomorrow's paper.

Mayor makes case for Mayo Civic Center funding in letter

Rochester Mayor Ardell Brede makes the city's intentions to apply for a $47.5 million economic development grant to expand the Mayo Civic Center clear in a new letter.

Brede has sent a letter to Department of Employment and Economic Development Mark Phillips touting the need for the expansion.

"There are many medical conferences that have expressed interest in coming to Rochester but have found our present facility to lack sufficient convention space and finishes to compete for regional and national medical conferences," Brede wrote.

The plan calls for building meeting rooms, a ballroom and support facilities at the civic center in hopes of attracting medical, bioscience and high tech conferences. Preliminary estimates show that the Mayo Civic Center brings in $20 million in direct spending from out-of-state visitors and the expansion project would boost that up to more than $27 million.

The city requested $35 million from the state for the project. DFL Gov. Mark Dayton included funding for the project in his $775 million bonding bill. The Senate version of the bonding bill initially included the project, but it was stripped out of the final $496 million bonding bill. Several communities are eyeing these bonding dollars for project. St. Paul Mayor Chris Coleman has already sent a letter to Phillips looking for $27 million to build a new St. Paul Saints stadium. The Metropolitan Council is also expected to seek funding for the Southwest Light Rail project. Chatfield also wants a piece of the money to renovate the Chatfield Center of the Arts.

One interesting thing to note — the letter repeatedly refers to the project as the "Mayo Civic Center — Convention Center Addition" project. For years, it's been referred to as an expansion of the Mayo Civic Center. But state Rep. Duane Quam, R-Byron, recently told members of the Rochester Area Chamber of Commerce that he believes the project would have had a better chance of getting funded if it was called the "Mayo Convention Center" instead of "Mayo Civic Center."

Click here to Download Brede's letter

Chatfield eyes DEED bonding money, too

It's not just big cities like Rochester and St. Paul angling for a piece of the $47.5 million DEED money in the bonding bill.

The city of Chatfield, population 2,779, is also eyeing the economic development grant dollars. City clerk Joel Young said they are planning to apply for the grant to help fund the renovation of the Potter Center for the Arts. He estimates that thanks to recent investments in the property, the center has already had an economic impact of $5 million over the past two years.

"This art center goes toe to toe with other projects very well," he said.

The city needs $7 million to finish the entire project, which includes turning Potter Auditorium into a state-of-the-art performance venue. It would also renovate a 96-year-old school building to house a community/events center and provide office space for regional arts organizations. Young said city officials may ask for a smaller amount up front to boost the odds they'll get funding.

Chatfield's efforts to get state bonding dollars and Legacy Amendment money for the project haven't panned out. In 2010, then-Republican Gov. Tim Pawlenty vetoed funding for the project from the bonding bill. This past session, a Senate version of the bonding bill included $2.2 million for the project. But that got stripped out of the final bonding bill.

The city has also had to combat misconceptions about the project. Pawlenty at one point referred to it as a "pottery center," upsetting city officials who pointed out it has nothing to do with pottery. It's also been confused with a previous project proposal that would have built a new Chatfield Brass Band Music Lending Library. It's a project that was singled out for ridicule by Pawlenty and others as an example of runaway government spending. Last month, Republican House Majority Leader Matt Dean made disparaging remarks on the House floor about the "sheet music museum." That drew a swift response from Chatfield Mayor Don Hainlen, who sent a letter to Dean emphasizing the lending library and the Chatfield Center for the Arts are two different projects.

"The point, Rep. Dean, is that the residents of Chatfield have made significant contributions to the State of Minnesota and continue to do so every day," Hainlen wrote, "and they deserve more respect than that shown by flippant remarks like those you made."

Hormel Institute in, Mayo Civic Center out

Here's a look at what's in and what's out of the new $496 million bonding bill proposal. The House is expected to vote on the bill tonight.

Local projects in the bill:

—$13.5 million to expand The Hormel Institute in Austin

— $8.7 million to relocate the Rochester WorkForce Center to Rochester Community and Technical College

— $4 million for Lake Zumbro dredging

Local projects that didn't make it:

Mayo Civic Center expansion, Chatfield Center for the Arts, National Trout Learning Center in Preston, Stewartvile Fire Hall renovation, Red Wing Sheldon Theatre renovation, Zip Rail high-speed rail study, Rushford-Peterson school building and Rochester veterans and emergency services museum.

Click here to Download Bonding bill spreadsheet

 

Mayo Civic Center stripped from bonding bill

Senate Majority Leader Dave Senjem announced today the Senate will vote on a $496 million bonding that will not include money to expand Rochester's Mayo Civic Center.

Originally, Senjem crafted a bill that included $32 million for the hometown project, but it's been clear since the start of session that many conservatives had heartburn over the idea of including civic centers in a bonding bill. Today Senjem said this new proposal has basically no local projects. Instead, it is focused on core infrastructure projects like higher education buildings, bridges, roads and flood control. Also included is $77 million to restore the Minnesota Capitol.

DFL Gov. Mark Dayton's bonding proposal includes money for the Mayo Civic Center.

News that the Mayo Civic Center was taken out was greeted with extreme disappointment by Rochester Convention and Visitors Bureau Executive Director Brad Jones. At this point, the CVB is urging all Rochester lawmakers to vote against the bonding bill if it doesn't have the Mayo Civic Center in it.

"We were kind of hoping that the party that represents business and industry would put a project of this magnitude that means this much to the economy in rather than a non-revenue government building," he said.

 

House to take up bonding bill with no local projects

The Minnesota House is expected to vote today will vote soon on a new $443.9 million bonding bill that has no local projects in it. Bill sponsor Larry Howes, R-Walker, put together the new bonding proposal after his $221 million bill to restore the state Capitol failed by one vote.

Originally, Republicans were looking to move two separate bonding bills — one focused on the state Capitol and the other on statewide projects. That second $280 million bill included $9 million to expand The Hormel Institute, $3.1 million to relocate the Rochester Work Force Center to Rochester Community and Technical College and $485,000 to renovate the Stewartville Fire Hall. This new bonding bill does not fund any of these projects. Instead, it allocates $221 million to the Capitol repairs, $102.5 million for transportation projects, $60 million for college and university building repairs, $30 million for flood mitigation, $20 million for wastewater infrastructure, $10 million for housing programs and $433,000 to cover cost of selling bonds. The big question is whether a bill without any local projects can get the 81 votes needed to clear the House. Republicans only have 72 members, meaning they must be able to get some votes from Democrats.

Rep. Mike Benson, R-Rochester, said right now he is not sure if he can support the bill. He said he wants to know who will make the decision on how to spend some of these dollars — especially in the area of transportation. He said the House Transportation and Policy Finance Committee spent a lot of time ranking projects and that lawmakers should have some input in determining where those dollars are spent.

Senjem introduces bills to fund Mayo Civic Center, veterans museum

With Senate Republicans slated to release their bonding proposal tomorrow, Senate Majority Leader Dave Senjem has recently introduced a bill to fund the $35 million expansion of Rochester's Mayo Civic Center.

It's hard to know whether that is good news for the project when it comes to the Senate bonding bill or not. Senjem, who chairs the Senate Capital Investment Committee, declined to introduce the civic center bill last year. He has said whether the civic center makes it into the Senate Republicans' bonding bill depends on how much his fellow Republicans are willing to borrow this year for construction projects. He has also said if the Mayo Civic Center project is included then other civic center projects for St. Cloud and Mankato would also likely have to be part of the deal to get the necessary votes.

House Republicans put forward a scaled-back, $280 million bonding proposal. Funding for the Mayo Civic Center is not included in that proposal. DFL Gov. Mark Dayton's $775 million bonding proposal includes funding for the Mayo Civic Center project.

Rochester hospitality industry representatives have been  hard to get the civic center expansion in the bonding bill, arguing it will provide a much-needed boost to the city. Meanwhile, the Rochester Tea Party Patriots have been vocal in their opposition to the project raising concerns about its costs.

The Mayo Civic Center project has had trouble winning over Republicans in the House. DFL Rep. Tina Liebling is sponsoring the civic center bill in the House and DFL Rochester Rep. Kim Norton is the only co-sponsor.

Senjem also introduced a bill seeking $15 million in state bonding money to build a new veterans and emergency services museum in Rochester. Fellow Rochester Republican Sen. Carla Nelson is a co-sponsor of both of the bills.

Norton calls Republican House bonding bill "ridiculous"

Rochester DFL Rep. Kim Norton blasted Republican House bonding bill on Tuesday saying it offers very little for the state's third largest city and sends most of these construction dollars to the Twin Cities area.

"The size of the bill is ridiculous for a bonding bill," she said.

Republicans put forward a $280 million bonding bill in what is a traditional bonding year. The bill does not include either of the city of Rochester's bonding requests —  $35 million to expand the Mayo Civic Center and $6 million to build an interchange on U.S. 52 at 65th Street Northwest. Also left out is $5 million for an environmental study for the proposed Zip Rail high-speed rail line.

The only Rochester project including in the bill is $3.1 million to relocate Rochester's Workforce Center to the Rochester Community and Technical College.

"Rochester is the third largest city and that's it? And that (workforce center) is a good project, but it's not enough to get my vote," Norton said.

She also said it is particularly frustrating to see that the St. Cloud Civic Center expansion is included in the bill and would get $1 million while the Mayo Civic Center was left out. Republicans are also moving ahead with a separate $221 million bonding bill to repair the Minnesota Capitol. Norton said there is no need to dedicate all that money up front for a project that will take years to get done. Instead, she said that should be done incrementally and more projects from greater Minnesota should be included.

"There is some sort of anti-bonding movement, and if that is what the GOP freshmen think is good for the state of Minnesota, they are mistaken," she said.

Republicans have argued that it is important to remember that lawmakers approved $500 million in bonding last year as part of a budget deal with Gov. Mark Dayton.

Mayo Civic Center in, Zip Rail out

DFL Gov. Mark Dayton today unveiled his $775 million bonding proposal this morning, and it included $35 million for Rochester's Mayo Civic Center expansion. Dayton said he hesitated to put funding for civic center projects in the bill this year after he included them last year and Republicans refused to support them. But he said ultimately he believes so strongly in the need to invest in the downtown area of cities to keep them vibrant that he put them in again.

Other local projects included on the governor's list are:

— $13.5 million to expand The Hormel Institute in Austin

— $16.1 to build the MnDOT Rochester Maintenance Facility and District Headquarters

Projects that failed to make the cut include $15 million for study and design work for the proposed Zip Rail high-speed rail line from Rochester to the Twin Cities. When asked why he did not include the funding, Dayton said he did not see an avenue for getting the project fully funded, which would require a big investment from the federal government. Below are a list of other requests that didn't make the list:

— $6 million to help build a new interchange at U.S. 52 and 65th Street Northwest in Rochester

— $8.8 million to relocate the Rochester WorkForce Center to Rochester Community and Technical College

— $20 million Rushford-Peterson school buildings

— $2.2 million Chatfield Center for the Arts

— $2.8 million Red Wing West Fire Station and Training Facility

— $612,000 Sheldon Theater renovations