Rochester’s DMC pumps nearly $41M into downtown projects next year

ROCHESTER – Big projects and big price tags downtown are on the docket as Destination Medical Center (DMC) plans for large-scale construction over the next year.

The DMC Board on Thursday approved $40.8 million to support at least three key projects in Rochester — Mayo Clinic’s ongoing expansion, upcoming work on the 6th Street SE. bridge and the upcoming bus rapid transit line along 2nd Street SW.

The 2026 budget is slightly higher than normal, as DMC typically budgets around $40 million each year for infrastructure projects and operations. Yet DMC is switching to a two-year budget forecast, similar to what the city of Rochester does for its budget planning, and 2027’s preliminary budget looks to be even larger with more than $44 million planned.

The Minnesota Legislature approved $585 million in funding for DMC through 2035. Most of its annual budget comes from state infrastructure funds, while its operating budget mainly comes from city revenue.

Here’s what DMC is working on in 2026:

Mayo is spending $5 billion on five new buildings in downtown Rochester, so it stands to reason the medical giant wants running water, working electricity and decent streets for each of them. DMC is allocating about $19.2 million annually for 2026 and 2027 to support Mayo’s ongoing construction over 15 city blocks.

That includes intersection work and pedestrian improvements along 6th Avenue, as well as sewer work nearby. For those worrying about ongoing construction and traffic snarls, Mayo Clinic officials in late August said the most disruptive work is already done, though time will tell if that remains true in 2026.

After setting aside more than double this amount last year, DMC is only spending $11 million in 2026 as construction continues on a seven-station, 2.8 mile rapid-transit line along 2nd Street SW. DMC officials caution this isn’t new money, but funding that has already been allocated as part of the project. They tweaked some of the criteria for using contingency funding related to the project on Thursday, allowing for emergency situations and any impact on nearby businesses because of construction, but all contingency requests must come before the board for approval.

Work on the bus project kicked off in earnest this spring and is expected to run through all of next year. When the line opens in 2027, it will have 60-foot buses carrying riders every five minutes during the morning and afternoon commutes, and every 10 to 15 minutes at other times.

After several years, the 6th Street Bridge connecting the east and west parts of 6th Street S. across the Zumbro River is finally happening. Another $2.5 million is going toward the bridge, which is expected to connect downtown to a southeast Rochester neighborhood that’s critical to the city’s growth plans. The project, which starts next year, is a major step toward Rochester’s dreams for a waterfront district on the Zumbro River.

For the second year, DMC is setting aside money for signage and strategies to navigate people around the construction downtown. Another $100,000 is planned for 2027.