Rochester council asked to extend downtown district for another decade
ROCHESTER — Downtown property owners are requesting to extend a special service district, along with the related charge, into a third decade.
A petition to renew the Downtown Special Service District will be presented to the Rochester City Council during its 6 p.m. Monday meeting, following a public hearing in council chambers of the city-county Government Center.
"This petition is supported by owners representing over 61% of the net tax capacity and more than 48% of the land area within the proposed district, indicating strong community backing for the initiative," Rochester Strategic Initiatives Director Josh Johnsen wrote in a report to the council regarding the request.
State statute requires the petition to be signed by property owners representing at least a quarter of the land in the district, as well as a quarter of the tax capacity.
Established in 2005, the Downtown Special Service District has had two extensions, the latest in 2015. The new extension will re-establish the district from Jan. 1, 2025, to Dec. 31, 2034.
The district supports the Rochester Downtown Alliance, with the service charge providing approximately a quarter of the organization's budget.
This year, the district collected nearly $380,000 from commercial property owners within the district, following 4% to 8% annual levy increases since 2015.
Johnsen, who represents the city on the RDA board, said levy funding helps enhance safety, cleanliness and economic vitality in the downtown district, while also supporting the organization of a variety of events, including Thursdays Downtown and Social Ice.
In recent years, the RDA has shifted its spending to increase marketing efforts. Johnsen notes event expenses have dropped by 20%, while marketing support has increased from being 4% of the budget in 2022 to accounting for nearly 35% this year.
With the request for renewal of the existing district, commercial property owners in the district have the option to request removal from participation, if they don't believe their business benefits from RDA efforts.
In 2015, during the last district renewal process, Paul Myhrom, owner of the former Honest Bike Shop, successfully petitioned to have his Second Street Southeast property removed from the district. It was approved with a 4-3 council vote.
If the council rejects a request for removal from the district, the property owner has 30 days to appeal to district court, which can decide whether the council decision should stand.
Additionally, the overall proposal can be vetoed if owners representing 35% or more of the district's geographical area or are responsible for paying 35% or more of the proposed charges file objections before the district's Jan. 1 renewal date.
On Monday, any owners opposing or supporting the district will have the opportunity to address the council. Written objections can also be submitted for consideration.
Meetings scheduled to be held during the week of Oct. 7 include:
• City Council, 6 p.m. Monday in council chambers of the city-county Government Center, 151 Fourth St. SE. The meeting will livestream at www.rochestermn.gov/meetings/council-meetings and be available on Spectrum cable channel 180 or 188.
• Airport Commission, 2 p.m. Tuesday in the administration conference room of City Hall, 201 Fourth St. SE.
• Sustainability and Resiliency Commission, 4:30 p.m. Wednesday in room 104 of City Hall, 201 Fourth St. SE.
• Planning and Zoning Commission, 5 p.m. Wednesday in council chambers of the Government Center.
Olmsted County
• Zoning Board of Adjustment, 7 p.m. Thursday in board chambers of the Government Center.
Rochester Public Schools
• School Board, 5:30 p.m. Tuesday in the boardroom of the Edison Building, 615 Seventh St. SW.
