Rochester Public Library Expansion (2020 Version)

A new downtown Rochester library constructed under a proposed public/private partnership would cost an estimated $95 million.

The result would be a three-story, 150,000-square-foot library on the site of the former Post Bulletin building, a block north of the existing Rochester Public Library.

Anticipated costs for the city could be reduced based on a potential partnership with the property owner and developers, but details of a potential development agreement remain in discussion.

Rochester developer Dan Penz and a group of local investors have been working on the proposal for more than a year, and plans include adding a convention hotel, a 17-story senior living tower and condominium complex to the site. They would be privately owned and operated.

The Rochester City Council will review design concepts and potential tax levy impacts Monday during its 3:30 p.m. meeting.

A proposed schedule calls for a potential decision in March, when the council will have four new members.

If approved in March, construction could start in April 2022 following additional design work, with anticipated completion of the library at the end of 2023.

The proposed plan follows years of discussion regarding library space.

In 2016, the Library Board pitched a $55 million expansion project that would have added 80,000 square feet to the existing Second Street Southeast building by adding two additional floors to it.

The effort failed to secure the required funding commitments to move forward.

Analysis of the potential tax impacts to pay for new proposed construction range from a 8.1 percent to 11.9 percent property tax levy increase, depending on the length of a loan and potential interest rate.

Due to the potential increase of tax need and revenue decline amid the COVID-19 pandemic, city staff is suggesting the options be reviewed as part of a future discussion of council priorities, according to information sent to the council Thursday.

The council will discuss options for future decisions when it meets online at 3:30 p.m. Monday. The meeting will livestream at www.rochestermn. gov/agendas and be available on Spectrum cable channel 180 or 188 and MetroNet channel 80.