Impact Lvl 1 :
Vision/Identity
Last modified: February 25, 2016
Highlights
It has been clear to openBEAM.net for some time that the DMC Project Application Evaluation process needs to get better. The process should aim to be transparent, accountable, responsive and predictable (TARP).
Contents
It has been clear to openBEAM.net for some time that the DMC Project Application Evaluation process needs to get better.
The process should aim to be transparent, accountable, responsive and predictable (TARP). Judging from recent public media reporting, the current state of the process does not have the TARP attributes.
The process should aim to be transparent, accountable, responsive and predictable (TARP). Judging from recent public media reporting, the current state of the process does not have the TARP attributes.
Lack of quality process leads to confusions and missed opportunities.
Ironically, in Rochester, Mayo and IBM have long-standing commitment and expertise in lean-6 Sigma process. Why don't we follow that tradition and apply well-known systems design principles in the DMC economic development process?
Is it politics, lack of awareness and lack of shared knowledge? Or, all of the above?
Lack of TARP
Back in December, the last time DMCC met, the EDA's status report states that it will work on a repeatable, predictable Developer Qualification process by finalizing the Development Guide that will be available to DMC development interests.
One might wonder where the Development Guide is at this time. And before it was finalized, was there a review process to let stakeholders have a say on it?
Will it be updated as a result of the Holiday Inn project debacle?
I hope lessons have been learned and some concrete actions will be taken. For example, why not look into best practices being espoused by the Performance Excellence Network and to review the initiative around building a Community of Excellence that three years ago leaders of the community have started to talk about.
Postmodern
The following is a trail of information regarding the demise of the project.
PB Aricle 2016-03-11
EDA's 'lack of support' killed project, developer says
The developer who wanted to build a $63 million Holiday Inn hotel across from Saint Marys Hospital in Rochester says the main reason he withdrew his plans last month was a lack of support from Destination Medical Center's Economic Development Agency.
Larry Brutger, a St. Cloud developer whose company has been in property management for more than 50 years and operates 12 hotels in eight states, told the Post-Bulletin Friday that there were "numerous factors and frustrations that caused me to withdraw our project," but tops was his frustration with DMC's EDA.
He went further in an email to the Post-Bulletin Friday.
"In the end, the reason I canceled the project is that I did not feel there was any support from the EDA and that the EDA really does not have any true process in place," Brutger said. "I first met with the EDA and city staff on Aug. 13, 2015. When (Rochester City Council President) Randy Staver brought our project in front of the DMC Corp. board four months later, the majority of board members had not even heard of our project."
At that meeting, the DMCC board put off action on the project until its next meeting, March 24, and board members expressed doubts about how it fit into DMC plans for the Saint Marys area. Board Chairwoman and Lt. Gov. Tina Smith said at that time, "I just don't feel I'm quite sure about how this fits into what our vision is for this particular district." Board member R.T. Rybak echoed that concern.
Brutger's proposal was for a 225-room Holiday Inn on what's now a half-block parking lot at Second Street and 13th Avenue Southwest. The project would have included 31 extended-stay suites, town homes on the First Street side, a 320-space underground parking garage, 2,000 square feet of retail space and a pedestrian tunnel from Saint Marys to properties on the north side of Second Street -- a long-time city goal.
The developer initially asked for $5.6 million in tax-increment financing, but DMCC board approval was needed for that. At the Dec. 17 meeting, the board put off action until late March but said an earlier meeting was possible, and the board's motion called for a working group to address the issues raised by the project.
Brutger says he then sent an email to EDA Executive Director Lisa Clarke. On Dec. 23, she replied by email "and told me that (EDA Economic Development and Placemaking Director) Patrick Seeb would be contacting me shortly to set up a meeting.
"I did not hear anything from Patrick until, coincidentally, the day I withdrew our application" on Feb. 19, he says.
Seeb said Friday he had worked with one of Brutger's consultants during that time "and assumed that those conversations" were being conveyed to him. But Seeb acknowledged concerns about how the project fit into DMC's grand plan for the Saint Marys area.
"One of the real issues was how to change a single, one-off project into a districtwide solution or opportunity," said Seeb, who was hired by the EDA in August. Questions about the Holiday Inn project were related to "how the proposed investment in one project becomes a catalyst for other things. That was a shortcoming of the project as it was coming forward."
He also said, "These are hundred-year decisions. How quickly should you go about making hundred-year decisions? These are major public policy decisions, with millions of dollars in public consequences. I can't imagine doing that by the seat of your pants."
Clarke said, "I think it's unfortunate that Mr. Brutger feels that way. I feel we were working toward a very good relationship."
The Post-Bulletin reported this week that the EDA has called a private meeting on Wednesday with neighborhood leaders, three city council members, city officials and business owners along Second Street for what's described as a "design session." The email from Seeb, dated Feb. 24, called for a meeting to "develop a concept for the public realm/public infrastructure for the Saint Marys Place sub-district (within DMC)."
Seeb said in that email that "we were planning on holding this on March 15 and 16, with the anticipation that the outcome of the work would inform decisions regarding the proposed development at 13th Avenue (the Holiday Inn project). Though the status of that project has changed, we know there remains considerable development interest in the area. Developing an areawide plan for the public realm/infrastructure remains of paramount importance as we advance projects in the district."
Brutger said Friday that his project was designed and planned "according to the criteria outlined in the DMC Development plan and the Second Street Corridor Study," two planning documents related to the Saint Marys area. "The EDA now wants to hold more meetings and get more public input as to how the Saint Marys Place area should be developed. Isn't that what the DMC Development plan and the Second Street Corridor Study did? They seem to want to create a plan to study the study."
By mid-February, he said, "I simply didn't see any support coming from the EDA and didn't want to keep spending time and money."
Brutger said his dealings with the Kutzky Park Neighborhood Association and "individuals from the neighborhood" were a "huge frustration but in the end not a true factor in cancelling the project."
"The KPNA group, or a few who say they represent the neighborhood, greatly overstepped their bounds, in my opinion," he said. "They view themselves as an authoritative decision-making body that must be negotiated with prior to seeking approval through the city planning process."
City Administrator Stevan Kvenvold made that same point in a memo to council members after the project collapsed, clarifying that neighborhood associations and city commissions, including the Planning and Zoning Commission, are advisory only, not decision-making bodies.
Brutger said he and his design team met with neighborhood activists eight times and made major, costly changes to the project, but eventually "decided to no longer meet with them, because they kept asking for more. The project was very well designed and I believe it would have received approval from the city council despite any objections from KPNA or individuals from the neighborhood."
The developer also expressed frustration with the planning and zoning commission, which called for revisions and repeat visits. "What is sad is that at the very first meeting, they voted and it was a tie vote. We later learned a tie vote equals a denial. We should have been sent on to the city council the very first time," rather than have to return to the P & Z another time. "The commission did not even know its own rules."
Kvenvold and city officials have said they'll propose changes in the development process to avoid delays and confusion for applicants, and Staver has said that Brutger's firm "exhibited tremendous patience as we were trying to work through this process. Quite honestly, now we, the city, have to accept the responsibility to build a better process."
When asked by the Post-Bulletin if he would consider returning to the table to restart the project, Brutger said, "Never say never, but at this point I think it is very doubtful."
PB Reporting
Link to Jay Furst's Blog
22 February 2016
http://www.postbulletin.com/news/local/could-dmc-money-fund-a-tunnel/article_6f04c56a-6239-55eb-b394-ac175ce2f1a4.html
Larry Brutger, developer of the planned 225-room hotel across Second Street Southwest from the Mayo Clinic Hospital-Saint Marys Campus, had planned to use $5.6 million in financing to build a subway connection between the hotel and the hospital and also to provide public parking spaces in the hotel's ramp.
Brutger first brought his hotel plans to the city Aug. 13. Four months later, the plan has yet to be approved by the Rochester City Council, and Brutger's conversations with the DMC Economic Development Agency also are continuing.
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Pinned DMC EDA organization and project reports
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