ROCHESTER, MN – The Rochester City Council will consider a proposal Monday to authorize the issuance of $750 million in general obligation revenue bonds to support Mayo Clinic’s ongoing “Bold. Forward. Unbound. In Rochester” expansion project. The bonds would allow the healthcare provider to access tax-exempt funds, a mechanism the city has utilized on at least twelve previous occasions since 2000, totaling approximately $3 billion in financing for Mayo Clinic initiatives, according to city Finance Director Brian Anderson.
The city’s role in the bond issuance is as a conduit, enabling Mayo Clinic to borrow at potentially lower interest rates. City officials emphasize that the city itself bears no financial obligation for repayment. “These private entities cannot issue their own tax-exempt debt to finance their projects; rather, such tax-exempt debt must be issued by state or local government entities, like Rochester,” explained Jenny Boulton, the city’s bond counsel, in a memo to the City Council. The bond documents stipulate that Mayo Clinic is solely responsible for making payments to bondholders, with no recourse to the city.
The “Bold. Forward. Unbound.” initiative, publicly announced in November 2023, represents a $5 billion investment by Mayo Clinic to reimagine its downtown Rochester campus. The project encompasses the construction of five new buildings, alongside necessary infrastructure and utility upgrades. Mayo Clinic anticipates opening some facilities as early as 2028, with full project completion slated for 2030, according to project details.
The City Council’s consideration of the $750 million bond issuance follows previous support for Mayo Clinic financing, including approval for up to $500 million in early 2025 as the “Bold. Forward. Unbound.” project gained momentum. The current proposal will be subject to a public hearing during the City Council’s meeting at 6 p.m. Monday in council chambers of the city-county Government Center. The meeting will also be livestreamed on the city’s YouTube channel and broadcast on local cable channels.
According to Mayo Clinic, the new buildings will integrate “a combination of innovative care concepts and digital technologies” designed to allow the institution to scale its transformation efforts. The project aims to Cure, Connect and Transform healthcare, according to promotional materials.
A website providing real-time updates on downtown Rochester construction and potential travel impacts is available at https://www.mayoclinic.org/rochester-construction. Mayo Clinic also offers concierge services to assist visitors and patients navigating the construction zone, reachable at 507-538-8438, Monday through Friday from 7 a.m. To 5 p.m. Central time.
