Mayo pressed to trim request for $500M in state aid

By Christopher Snowbeck,
St. Paul Pioneer Press

ST. PAUL — A Mayo Clinic proposal for more than $500 million in state support for projects in Rochester, Minn., could be put on a diet by DFL lawmakers.

The current proposal includes a significant amount of spending for transit and transportation that might better be funded in other ways, Rep. Ann Lenczewski, DFL-Bloomington and chairwoman of the House Tax Committee, said after a hearing of the Mayo Clinic bill on Wednesday, April 10.

What’s more, Mayo’s list of projects that could be funded with the state money includes parks, atriums and a number of items that Rep. Diane Loeffler, DFL-Minneapolis, characterized as amenities — not the “infrastructure” suggested by supporters of the bill.

Loeffler questioned how important such amenities really are to Mayo patients.

“Whether or not you have the best places to have lunch — or to wait in an indoor place when killing time between appointments — really isn’t that important when your health is on the line,” she said during the committee meeting.

“I think most members want to support something, but not the proposal as introduced,” Lenczewski said in an interview. “I think they’d like to see things right-sized a little bit.”

This winter, the clinic announced plans to invest $3.5 billion over 20 years to solidify its headquarters in Rochester as a global destination for medical care. The announcement came with projections of an additional $2.1 billion in private investment by other parties in the economic development project.

So long as state taxpayers kicked in more than $500 million, Mayo officials projected the creation of 30,000 jobs due to a project called Destination Medical Center.

“I see a whole bunch of really good jobs with very little risk to the state,” said Rep. Greg Davids, R-Preston, during the committee hearing.

Rochester will need infrastructure improvements as Mayo Clinic grows, said Rep. Kim Norton, DFL-Rochester, who is sponsoring the bill in the House.

Supporters said the improvements, in turn, would help transform the community into one that will help the clinic attract and retain workers.

“It’s not as vibrant a community as many communities,” said Bob Dunn, president of Hammes Co., which is a consultant on the Destination Medical Center project.

The comments prompted Rep. Ron Erhardt, DFL-Edina, to ask why Mayo Clinic doesn’t just grow operations in the Twin Cities, where the requested infrastructure already exists.

He jokingly noted that Edina might be a good fit, since it’s already home to many doctors and golf courses.

Dunn replied that Mayo Clinic wants to build on the medical center’s significant investment in Rochester.

“This will help us grow in the state of Minnesota,” said Dr. Bradly Narr, medical director of the Destination Medical Center project.

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