Lawmakers want more local dollars for Mayo plan

ST. PAUL — Key Minnesota lawmakers on Tuesday signaled a coming makeover to the Mayo Clinic expansion plan that would reduce the state’s burden and increase the amount derived locally.

The bill was detoured Tuesday to give the House Capital Investment Committee a chance to examine it while the Taxes Committee figures out the critical financing piece. The proposal has been stalled in the tax panel for weeks, making supporters nervous as the session clock ticks down.

Committee Chairwoman Ann Lenczewski, DFL-Bloomington, said she wants to pare down the proposal’s more than $500 million state subsidy while making Rochester and Olmsted County shoulder a larger load, perhaps through local hospitality or transportation taxes. House Speaker Paul Thissen said asking more of the clinic’s host community is “a fair discussion to have.”

“You’ve got to put a lot more in the game here before you can look to the state,” Lenczewski said.

Mayo wants the state to commit to public infrastructure upgrades over the next 20 years. As originally conceived, the state’s contribution would come in the form of diverted tax dollars. A percentage of new tax revenues expected to flow from the expansion would be earmarked to repay public bonds that Mayo says are needed to do environmental remediation, allow for utility work and enhance roads, bridges and public meeting space. Not all the public borrowing would be done at once but as the expansion reaches various phases.

Private money would pay for the direct Destination Medical Center build-out as well as lodging, entertainment, retail and dining amenities needed to suit the influx of patients and workers in the region. Mayo leaders have said the project will feed off as much as $5.5 billion in private investment.

Republican Sen. David Senjem of Rochester, who is steering the plan through the Senate, said the proposal already asks a lot of the local community. Rochester has pledged up to $60 million.

“The city is prepared to reasonably do their share and more. And Mayo is prepared to do their share,” he said. “It’s a matter of whether the state wants to complement that.”

Democratic Rep. Kim Norton, the plan’s House sponsor and a Rochester resident, said getting the proposal moving again was important. But she said it’s difficult to tell if shifting more costs to the local government can work until more details are disclosed.

“It will only be good news if it isn’t too hurtful to my local community,” she said.

Mayo spokesman Karl Oestreich said the clinic still believes its initial plan is sound but is open to workable alternatives. He said Mayo wouldn’t comment on what constitutes an appropriate local share.

Officials at the medical industry powerhouse, the state’s biggest private employer, say the expansion is needed to keep pace with peer research hospitals worldwide.

Lenczewski said her committee will resume its debate over the proposal next week. In the meantime, Gov. Mark Dayton has designated chief of staff Tina Smith as his point person on the Mayo proposal. Smith planned to head to Rochester on Thursday for meetings related to the project.

SportsPlus

Mower County

Fire Marshall investigating Christmas night fire near Sargeant

News

Survey on isolation: Nearly half of Minnesotans report feeling left out at times

Mower County

DNR investigating recent waterfowl deaths across southern Minnesota

Mower County

A new reason to run: After diagnosis, Austin grad is looking to raise funds to fight MS

Mower County

SWCD board chair to serve as VP for state group

Mower County

Minnesota DNR: Enjoy the ice over the holidays, but check it often

Education

Education Briefs

Crime, Courts & Emergencies

Convictions: Dec. 9-16

Crime, Courts & Emergencies

G. Meadow man sentenced for drug charges, challenges pre-investigation in 2nd case

Mower County

Eastbound I-90 lane, ramps reopen in Austin as Cedar River bridge completed

News

A Place for Romantics: New downtown bookstore for romance is a dream for its owner

Agriculture

Voigts honored for conservation farming practices

Business

Austin realtor honored with Realtor Emeritus Award

Agriculture

Grant available to aid in weather resilience

Mower County

In Your Community: Asian Student Union donate 30 blankets to Mayo Clinic

Mower County

In Your Community: Austin Youth Hockey Peewee B shops for family

Brownsdale

In Your Community: Brownsdale Study Club

Mower County

In Your Community: Duplicate Bridge

Mower County

In Your Community: Mower County Senior Center

News

Minnesota House tie in peril after judge rules DFL lawmaker can’t be sworn in

News

Unwelcome holiday guests: RSV, flu and COVID-19 on the rise

News

Minnesota deputies saw 250 animals suffering at purported rescue. Weeks later, only 70 were left

News

Federal Reserve cuts its key rate by a quarter-point but envisions fewer reductions next year

Education

Riverland Community College celebrates remarkable enrollment growth