Q. How much will the expansion cost?

A. $75 Million

Q. How is the expansion being paid for?

A. One-half of the project will be paid for by an additional 1% on Rochester’s existing lodging tax and by a new 1% tax on food and beverage sales. These taxes were authorized by the state legislature in 2009. The other half is being requested through the state bonding process during the 2010 legislative session.

Q. Why doesn’t the city just raise local taxes to pay for the whole thing?

A. The City of Rochester has identified an increase in the lodging tax and a new food and beverage tax as the fairest way to pay for the local share of the cost as they are more directly targeted to tax the users of the expanded facility. This also avoids using scarce local property tax dollars for a facility that provides benefits to a much larger regional and statewide area. 

Also, the taxes currently authorized to support the city’s portion of the construction costs have been calibrated to ensure that the business climate in the city remains competitive as well as to maintain competitiveness in relation to other cities in Minnesota as well as those that Rochester competes with for convention and event business.

Because of the benefit to the whole state in increased economic activity, state sales tax collections, state income tax collections, and business development potential, the state must be a partner in this effort.

Additionally, it is only fair that the state contribute 50% of the cost of this project given similar support to convention and event centers around the state including in Minneapolis, St. Paul, Duluth, Bemidji, and St. Cloud. Of the major convention centers in Minnesota, the Mayo Civic Center has received by far the lowest amount of state funding for its capital construction costs. 

Q. How much state money as gone into the Mayo Civic Center over the years?

A. Over the years, the state as contributed only $6.3 million for expansion and upgrades to the MCC, including $3.5 million in 2008 for the design of the current expansion effort.

Q. Is this a good idea in today’s economy?

A. Now is a great time to pursue an expansion of the Mayo Civic Center. Expansion of the Mayo Civic Center will be a huge short-term boost to the local economy. It is estimated that the project will employ over 400 people in the building trades over the next three years accounting for over 1 million hours of work.

In the long term, this project will support Rochester’s $530 million-a-year hospitality industry. With 11,000 employees, this sector is the second largest in the Rochester area and is ready to serve visitors to Rochester’s hotels and restaurants.

 Q. Is there enough convention and event business to fill an expanded Mayo Civic Center?

A. Yes. In 2008 alone the Mayo Civic Center lost out on over 68 events due to unavailable dates or inadequate facilities. These events represent 136,000 attendees and over $74 million in lost spending, most of which would have been from out-of-state. Expanding the Mayo Civic Center will help Rochester attract large conventions and events, especially in the medical, technology, and biosciences markets.