Downtown Rochester & Destination Medical Center

What Destination Medical Center means for downtown Rochester: the plan, Peace Plaza, the Heart of the City and why it matters for homeowners.

Downtown Rochester is changing, and the driving force is Destination Medical Center, usually called DMC. Whether you plan to live downtown or simply own a home in the region, it helps to understand what DMC is and where it is headed.

What DMC is

DMC describes itself as a unique 20-year economic development initiative. In 2013, state officials determined there was a compelling interest in authorizing public investment in Rochester, and lawmakers created DMC's financing tools and governance in statute. The $5.6 billion plan is described as the largest in Minnesota's history.

Mayo Clinic: $3.5 billion over 20 years.
Additional private investment: $2.1 billion over 20 years.
State of Minnesota: $585 million over 20 years.

Its stated goals include drawing more than $5 billion in private investment, creating more than 30,000 new jobs and making Rochester a destination for health and wellness for patients, visitors and residents alike.

Heart of the City and Peace Plaza

At the core of downtown, the Heart of the City district centers on Peace Plaza, the city's main gathering space. Plans call for a central row of trees across the plaza, better connections to the Gonda Building, a garden-like look for Second Avenue, room for public art and pop-up retail. DMC says First Avenue will remain open to traffic and become the first curbless street in Minnesota. Peace Plaza already draws crowds: SocialICE brings nearly 50,000 people over three winter days, and Thursdays on First and 3rd draws more than 20,000 people each summer week.

History all around

Downtown's landmark is the Plummer Building, opened in 1928. Its 15 stories and 56-bell carillon fill the streets with music, and it is a National Historic Landmark. Its third-floor Historical Suite, with the offices of Dr. Will and Dr. Charlie Mayo and the Board of Governors Room, is open for self-guided tours Monday through Friday. Just southwest, the Pill Hill Residential Historic District preserves architecture from 1875 to 1949.

Learning and green space downtown

The University of Minnesota Rochester, founded in 2006, is located downtown in the heart of the medical community. And downtown residents are never far from the outdoors: Rochester's paved trail system stretches more than 85 miles, and Silver Lake Park's 1.8-mile loop is a short trip away.

What it means for homeowners

A long-range plan focused on jobs and investment is one reason Rochester keeps growing. The Census Bureau counted 121,395 residents in 2020 and estimates 124,292 as of mid-2025. For sellers, the takeaway is simple: buyers moving here for new opportunities want to understand how a home connects to downtown, so make that connection part of your marketing.

How David helps

David Olson is a Realtor and Broker, a licensed general contractor and a fourth-generation builder with more than 20 years in the business and 3,127 homes sold. He helps Rochester sellers explain their home's place in a changing city, from downtown condos to houses a short drive away, and uses his construction background to recommend the updates today's buyers notice. Call 952-314-9446 to start planning your sale.

Sources

This guide is general information, not legal or tax advice. Rules change; confirm details for a specific property with the local office that has authority there.

Thinking about selling your Rochester home?
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