Mayo Clinic Seeks City Approval for $750 Million in Bonds to Fund Expansion

Rochester, MN – Mayo Clinic is requesting support from the Rochester City Council to issue $750 million in bonds in April, a key step in financing its ambitious “Bold. Forward. Unbound.” expansion plan. The City Council will vote on the proposal during its meeting on Monday.

Conduit Bonds and City’s Role

The city’s involvement allows Mayo Clinic to access tax-exempt funds for the project. However, the city assumes no financial obligation for the debt. According to city bond counsel Jenny Boulton, private entities are unable to issue tax-exempt debt directly; it must be issued by governmental bodies like Rochester. These “conduit bonds” enable the municipality to fulfill a public purpose – in this case, supporting improvements to healthcare facilities.

The bonds will be sold to investors, with Mayo Clinic responsible for repaying the funds over a designated period. Bond documents stipulate that Mayo Clinic will make direct payments to buyers, and the city will not be liable for the debt. The bond sale will not affect the city’s credit rating or debt limit.

History of City Support for Mayo Clinic Financing

This isn’t the first instance of the city assisting Mayo Clinic with financing. Since 2000, Rochester has supported similar conduit financing at least 12 times, totaling approximately $3 billion, in amounts ranging from $50 million to $500 million. Most recently, the City Council approved up to $500 million in bonds in early 2025 as the “Bold. Forward. Unbound.” initiative began.

Public Hearing and Upcoming Meetings

Before the vote on Monday, the City Council will hold a public hearing at 6 p.m. In council chambers of the city-county Government Center to gather public comments on the bond issuance request.

Other upcoming meetings scheduled for the week of March 16 include:

• Rochester Police Civil Service Commission, Thursday at 3 p.m.
• City Council, Monday at 6 p.m. (livestreamed on the city’s YouTube channel and on Spectrum cable channels 180 or 188)
• Police Policy Oversight Commission, Tuesday at 3:30 p.m.
• Library Board, Wednesday at 4:30 p.m.
• Olmsted County Physical Development Committee, Tuesday at 1 p.m.
• Olmsted County Health, Housing and Human Services Committee, Tuesday at 2:30 p.m.
• Olmsted County Administrative Committee, Tuesday at 4 p.m.
• Olmsted County Board of County Commissioners, Tuesday at 6 p.m.
• Rochester Public Schools School Board, Tuesday at 5:30 p.m.

Randy Petersen of the Post Bulletin reported this story. He can be reached at rpetersen@postbulletin.com or 507-285-7709.