Council authorizes $2.37M in DMC funds for Second Street mid‑block plaza and four affordable condos

The Rochester City Council approved $2,372,500 in Destination Medical Center strategic redevelopment funds on Feb. 19 to acquire property and support public‑realm improvements along Second Street, including a mid‑block pedestrian plaza and a four‑unit affordable for‑sale condo project.

Strategic Initiatives Director Josh Johnson explained the package includes roughly $1.44 million to acquire three residential‑scale lots (land valuation) and about $929,828 for construction of a high‑amenity mid‑block plaza. The private developer (Gerard Properties) will construct and maintain the plaza under recorded covenants; First Homes has secured a Minnesota Housing Finance Agency (MHFA) grant to buy down each condo by $124,500, enabling sale prices affordable to buyers qualifying for mortgages up to $200,000. Johnson said the plaza is intended to improve connectivity between Kutzky Park and the Second Street corridor, and the project team emphasized private maintenance obligations recorded on the condo development.

Council members praised broad neighborhood support from the Kutzky Park neighborhood association and agreed the acquisition and plaza would catalyze walkable downtown housing options. Council approved the allocation and directed staff to finalize development assistance agreements and project documents.

What happens next: staff will work with Gerard Properties and First Homes on final agreements, record maintenance covenants for the plaza, and proceed with land acquisition and site improvements. The developer is responsible for constructing the dwellings and associated retail activation.