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Rochester council approves up to $8 million for BioLabs shared lab at Discovery Square
Summary
The City Council approved a resolution authorizing up to $8 million in strategic redevelopment funds and directed the mayor to sign an MOU to bring BioLabs to Discovery Square. Proponents said the shared lab is intended to catalyze life‑science startups adjacent to Mayo Clinic and create dozens of jobs within three to five years.
The Rochester City Council voted to authorize up to $8,000,000 in strategic redevelopment funding and for the mayor to sign a memorandum of understanding to bring BioLabs, a national operator of shared laboratory space, to Discovery Square.
Josh Johnson, the city’s strategic initiatives director, told the council the project is meant "to request, support, and adopt a resolution approving the BioLab shared lab space into Discovery Square and authorizing up to $8,000,000 in strategic redevelopment funds." The Destination Medical Center (DMC) board had already approved the project unanimously on May 22.
Mike Flynn, a DMC team member, said the proposal fills a regional gap in wet‑lab incubation space and described expected early outcomes: "in the 3 to 5 year mark when this facility... hits what we would consider full occupancy that at any given time, we'll probably have 20 to 25 companies... those companies in turn would employ probably 70 to 80 people." He also described a governance plan and a "clawback" provision to protect public investment if the venture pivots away from shared‑lab use.
Susan Chase, senior vice president of BioLabs, addressed the council during public comment and described BioLabs as an operator of 17 locations worldwide that pairs fully equipped lab space with access to capital and industry partners.
City staff and DMC representatives said the $8 million figure reflects a market‑sized floor plate and the infrastructure needed to equip a world‑class R&D lab. They said the MOU the council authorized is nonbinding and intended to enable a public announcement at the BIO conference on June 16; staff said final development and operating agreements would be negotiated and hoped to be completed within the next 90 days so construction could start later this year.
Supporters framed the request as an economic development investment designed to keep Mayo Clinic‑spun innovations in Rochester and to build a pipeline of local, technical jobs. Councilmember Palmer moved the resolution; it passed on a voice vote.
Next steps: staff will negotiate the development agreement and related operating agreements (including the city's capital contribution and DMC participation) and return to council with required documents before public funds are disbursed.
