Approving the use of unallocated Link BRT project contingency funding for business forward activities.

As Rochester’s largest public infrastructure project to date and Minnesota’s first bus rapid transit project outside the Twin Cities metro area, Link Bus Rapid Transit (Link) represents a significant investment in the community’s transportation infrastructure. Given the project's scale and complexity, the City anticipated impacts to businesses along the 2nd Street corridor and incorporated mitigation strategies from the outset. These efforts have included coordinating construction activities and micro-phasing work to maintain access where possible, providing wayfinding and business access signage, and maintaining direct communication with impacted businesses. Business Forward, with an initial authorized budget of $350,000, complements these efforts by providing additional resources to support approximately 95 corridor businesses, focusing on maintaining visibility, strengthening customer connections and implementing targeted strategies that respond to individual business needs and evolving construction conditions.

The initial Business Forward budget of $350,000 has supported direct business engagement, specialized business consultation, marketing and promotional campaigns, customer incentives, and construction mitigation strategies. Approximately $231,000 has been expended, leaving a balance of $119,000. The City has also invested in additional measures outside the Business Forward budget, including construction wayfinding, business access signage, an interactive construction map, and dedicated business outreach and coordination.

Experience to date has reinforced the importance of consistent communication, individualized support, and aligning resources with the timing and severity of construction impacts. It has also highlighted opportunities to strengthen coordination, follow-through and the measurement of results. These lessons will inform the next phase of Business Forward, with greater emphasis on responding proactively to business needs and implementing strategies that deliver meaningful benefits for impacted businesses.

On September 24, 2026, the Destination Medical Center Corporation (DMCC) Board approved an additional $500,000 from existing Link BRT project contingency funding to continue Business Forward activities. The Council is being asked to approve this additional funding. Combined with the remaining program balance, approximately $619,000 would be available to support businesses through the remaining construction period and transition to Link service.

The proposed investment would continue two primary areas of work:

Business Support and Business Engagement ($360,000): Direct business engagement, targeted customer incentives, technical assistance and flexible, business-specific strategies that respond to the type, duration and severity of construction impacts.

Marketing, Promotion and Construction Mitigation Experience ($259,000): Coordinated marketing and promotions, events, customer-traffic initiatives, and strategies that help businesses remain visible, accessible and connected to customers.

The City and its partners, including the Rochester Downtown Alliance, Mayo Clinic, Rochester Area Chamber of Commerce and others, will continue working directly with corridor businesses to identify needs and implement eligible strategies that help maintain access, visibility and customer connections. Resources will remain flexible as construction progresses, allowing for both corridor-wide initiatives and targeted responses to individual businesses experiencing more significant or prolonged impacts.

Through the remainder of 2026, efforts will focus on addressing continued construction impacts, maintaining access and visibility, and implementing targeted promotional activities. As construction advances in 2027, Business Forward will increasingly support customer education, corridor activation and the transition to Link service, while continuing to respond to businesses experiencing localized construction impacts.

Business Forward funding is not intended for direct payments or grants to individual businesses, nor will it be divided equally among corridor businesses. Rather, resources will be directed toward eligible strategies based on identified needs, construction impacts and the potential benefit to businesses and the corridor. City project and Finance teammates will continue overseeing expenditures to ensure compliance with applicable funding requirements, with an increased emphasis on tracking participation, customer activity and other measurable outcomes.

Business Forward supports the City’s commitment to economic vitality, accessibility and supporting businesses through major public infrastructure investments. The program recognizes that construction impacts are not experienced equally, and that businesses have varying needs, resources and capacities to respond to disruptions. Through direct engagement and coordination with community partners, the City will work to identify needs and implement eligible strategies that respond to the type, duration and severity of construction impacts.

This needs-based approach allows resources to support both corridor-wide initiatives and individual businesses experiencing more significant challenges. Efforts to maintain access, visibility, wayfinding and customer connections also help ensure residents, employees, patients and visitors can continue reaching and supporting corridor businesses throughout construction.

$350,000 for Business Forward activities had previously been authorized by the DMCC Board of Directors and Rochester City Council.

The requested action would authorize an additional $500,000 in DMC funding from existing Link BRT project contingency, increasing the total authorized Business Forward budget from $350,000 to $850,000. Approximately $231,000 of the initial authorization has been expended, leaving $119,000. With the additional allocation, approximately $619,000 would be available to support Business Forward activities through the remaining construction period and transition to Link service.

The Link BRT project originally included $22.75 million in available contingency funding. As presented to the DMCC Board on September 24, 2026, total actual and pending/anticipated contingency expenditures are approximately $4.96 million, with a projected remaining balance of $17.79 million after the proposed uses. The additional Business Forward funding would be drawn from existing project contingency rather than requiring a separate General Fund allocation.

The City will continue to oversee Business Forward expenditures through existing project management and Finance processes to ensure funds are used for eligible purposes and in accordance with applicable funding requirements.

The City Council could deny the request or propose an alternative amount to be funded.