Should Rochester Property Taxes Pay for DMC Administrative Costs?

Should Rochester taxpayers foot the bill for the operations of the Economic Development Agency that is being created as part of the Destination Medical Center plan?

The issue was examined during Friday's Rochester Today show with Andy Brownell and Tom Ostrom on KROC-AM.

It's a complex issue. In creating the DMC, the Minnesota legislature assembled a complicated structure that includes the Economic Development Agency (EDA) under the oversight of the Destination Medical Center Corporation Board, but the budget for both organizations is ultimately the responsibility of the Rochester City Council.

In recent weeks, city officials have been in discussions with the lawmakers about the possibility of using revenues from a proposed extension of Rochester's local sales tax to cover the administrative costs of the EDA. The requested budget for the agency, which calls for almost a dozen employees, could total around $20 million during the first five years of the DMC initiative and city officials are very concerned about having to use property taxes to cover the bill.

Legislative leaders have not been very receptive, but also have said the DMC law does not require the city to accept whatever is proposed for the budget of the EDA and suggested the City Council use its "power of the purse" to pressure the Mayo Clinic-centered organization to modify its budget request or finding an alternative funding source.

The discussion also included the future of the now vacant Chateau Theater building, during which Tom put in the pitch for returning it to a movie theater for visiting patients and the growing number of people living in downtown Rochester. (Check out the YouTube post at the top of this post).

Click on the play button below to listen to the show.