Skip to main content

Chair of House panel blasts Mayo's request for Rochester aid

  • Author:
  • Updated:
    Original:

A key Minnesota lawmaker says a bill committing more than half-a-billion dollars to Rochester building projects as part of a Mayo Clinic expansion will not pass the House Taxes Committee in its current form.

Rep. Ann Lenczewski, DFL-Bloomington, chairs that committee. She suggested at a hearing Tuesday that the tax arrangements the plan entails are too costly to the state and the economic benefits are overstated.

The tax committee did not vote on the plan and will take the bill up again after it's been modified, possibly next week. But as the Pioneer Press reports, the hearing gave Lenczewski a chance to vent about what she considers a massive public subsidy.

Mayo announced in January that it's prepared to embark on a 20-year, multi-billion dollar expansion of its Rochester facilities. But only if the state commits to $585 million in improvement projects in the city and Olmsted County. The clinic, already Minnesota's largest private employer, says the plan would create more than 30,000 new jobs and generate more than $5 billion in private investment.

Lenczewski's chagrin was touched off in part by a new report from Minnesota House Research. Finance & Commerce reports the study raised doubts about the long-term benefit to the state of a fund that would steer tax dollars coming from Rochester back into the city. Lenczewski argues such a fund would increase the tax burden on other Minnesotans.

MPR reports a Mayo doctor noted that the clinic's location in a comparatively small city of 100,000 puts it in a unique position relative to its competitors. He suggested that calls for a unique type of investment to keep Mayo competitive.

The bill's House sponsor, Rochester DFLer Kim Norton, tells MPR she's willing to make changes to the bill but ruled out an overhaul of the plan.

Next Up

abortion, planned parenthood

Minnesota Senate passes bill codifying abortion into state law

Having already passed in the House, it will now be sent to Gov. Tim Walz for signing into law.

Screen Shot 2023-01-27 at 7.45.44 PM

Tyre Nichols: Initial police version of events bear similarities to George Floyd killing

Memphis PD said Nichols complained of 'shortness of breath' following 'confrontations' with police, who in reality violently beat him.

George Floyd, protest

Twin Cities authorities preparing for community reaction to Tyre Nichols video

The ATF division in St. Paul sent out an alert out of "an abundance of caution."

Screen Shot 2023-01-27 at 2.12.05 PM

Changes at K102's Chris Carr & Company, with Sam Sansevere joining as co-host

She is the daughter of former KQRS morning show personality Bob Sansevere.

Screen Shot 2023-01-27 at 1.16.21 PM

Minneapolis' Royal Foundry Craft Spirits announces closure

The distillery set out to infuse the Minneapolis craft cocktail scene with British flavor.

ShutterflyGoogle

Shutterfly to cut almost 100 jobs at Shakopee facility

The layoffs are expected to impact multiple positions within the company.

millcitymuseum_hr1

Mill City Museum in the running to be named best history museum in the U.S.

The museum offers scenic views of the Mississippi River.

HolmgrenMugRamseyCo

Man charged with attempted murder of White Bear Lake police officer

Daniel Holmgren Jr., 33, was being served an arrest warrant at the time of the incident.

image

Gallery: 1,000-acre Wisconsin resort listed for nearly $4.3M

The lush landscape features a creek and private lake.

school bus

Alert after Woodbury students approached by strangers asking if they want candy

Valley Crossing Elementary School urged parents to go over safety information with their children in response to the incident.

Related