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487 posts categorized "Breaking news"

June 16, 2016

Rochester music school to expand

A local music school has really struck a chord in Rochester.

Ryan Utterback launched Pure Rock Studios in his home in 2012. When it swelled beyond that space, he moved it into a 2,500-square-foot building at 515 Rocky Creek Drive NE.

13417510_1017403615047508_8141035925918801272_nNow that he and his teachers are working with 250 to 270 students of all ages each week, the school needs even more space. That means more than doubling the size of the school to add a new wing for for the drum classes and a stage performance area as well as renovating the existing building.

"I knew it would get here, but it just has grown much faster than I anticipated," said Utterbeck. "That speaks volumes about our instructors and the curriculum that's really just built around a fun, hands on way to learn music."

He hopes work on the 3,000-square-foot expansion will start by mid-July, with the goal of opening the new wing by September.

Pure Rock has 14 instructors teaching group and one-on-one classes in guitar, bass guitar, drums, piano and vocal. Plus Utterbeck recently added banjo, mandolin and ukulele classes because of the growing popularity of those instruments.

The students range from youth to adults, with about 65 percent being younger than 18 years old.

Pure Roch's focus on performance has spurred the creation of many new bands formed by the students. Utterbeck also has his students perform regularly at local venues such as Thursday on First and Third and the Wicked Moose Bar & Grill.

"Music is a lifelong gift you can share with people," he said.

In fact, the architect and contractor working on the project are both musicians, who occasionally play at Pure Rock. Adam Ferrari of Rochester's 9.Square is the project architect as well as a drummer.

Adam Kramer of Kramer Contracting also is a musician who has played with Utterbeck since high school. Kramer recently launch his new construction business after work with Kraus Anderson Construction Co.

June 14, 2016

Software giant buys Rochester's DoApp

Wade-beaversDoApp Inc., an 8-year-old Rochester media technology firm, was acquired this week by the top software firm in the newspaper industry.

Newscycle Solutions bought DoApp to become part of a new mobile division to add to its services for newspapers and expand into television and radio. Bloomington, Minn.-based Newscycle, which is owned by Vista Equity Partners, works with 92 of the top 100 U.S. newspapers as well as 1,200 companies in 45 countries.

DoApp-logo-square_400x400Financial terms of the deal were not disclosed.

DoApp co-founder Wade Beavers says Newscycle has worked with DoApp on various projects and the relationship just deepened until this became the logical step. Beavers, now president of Newscycle's mobile division, says this acquisition is good for his company and for Rochester. All 13 employees now have jobs with Newscycle and the division will remain in Rochester in the former DoApp office at 1652 Greenview Drive SW.

"You'll definitely see more employees in Rochester. Newscycle is very strategic on growth," said Beavers. "They plan to stay here."

Beavers co-founded DoApp with Joe Sriver with help from Dave Borrillo in 2008. In the early days, Beavers and Borrillo created early iPhone apps while drinking coffee in Rochester's south Panera eatery. Three DoApp apps were among the first 500 sold on Apple's then-new App Store.

The Newscycle sale marks the third major "exit" for DoApp, since it launched.

In 2012, Raleigh, N.C.-based Axial Exchange acquired mRemedy, which DoApp created with Mayo Clinic. It focused on making patient-focused mobile health-care apps.

DoApp also sold its popular mobile real estate platform to CoreLogic, of Irvine, Calif. in 2014. Borrillo, previously DoApp’s chief operating officer, joined CoreLogic along with all of the DoApp employees working on the real estate app. CoreLogic kept the office in Rochester and it has added several jobs since the acquisition.

“DoApp has led the way for media companies to be the best in their markets with an awesome mobile experience that hasn’t been matched,” said Beavers in Monday's announcement. “Becoming part of the Newscycle family will allow us to create a more complete experience that will take publishers forward and connect them to their audiences across all devices.”

 

June 10, 2016

More Dunkin' Donuts coming southern Minnesota

Two years after making a flashy return to Minnesota with a Rochester shop, Dunkin' Donuts has signed a franchise agreement to bring three more locations to the region.

The Massachusetts doughnut maker announced Thursday that it has signed a deal with new franchisees Oliver Schugel and David Schooff to open three new restaurants in Mankato. The first one is slated to open in 2017.

06232014dunkindonutsMankato is leaping ahead of Rochester, which was expected to have about five locations by now. 

Rochester Retail Services, a division of the Kahler Hospitality Group, opened a shop here in June 2014 at 15 First Ave. SW in its Kahler Grand Hotel complex in the heart of downtown. It was the first one in Minnesota since 2005. Dunkin' said then that Rochester Retail Services would be opening five more shops in the next few years.

That changed last fall, according to Dunkin' Donuts Senior Director of Franchising Patrick Cunningham.

"Rochester Retail Services, the franchisee of record, will continue to own and operate the existing restaurant in the Kahler. However, they will not develop more Dunkin' stores as we previously reported," he said in October.

When announcing the coming Mankato shops, Dunkin' said franchise opportunities remain available in Rochester. Plus, "to help fuel additional growth in the market, special development incentives are available."

In Mankato, the new franchisees have more than 45 years of combined experience in business and real estate development.

“We have a passion and loyalty for the Dunkin' Donuts brand and look forward to opening our restaurants in the years to come," stated Schooff. 

June 07, 2016

Broadway at Center development still awaiting financing

A long-anticipated downtown Rochester development, the first Destination Medical Center project, is still waiting for financing before can can begin.

Broadwayatcenter3City officials were notified recently by Hinshaw & Culbertson, a Minneapolis law firm, that a $102.5 million loan to finance the bulk of developer Gus Chafoulias' 23-story Broadway at Center tower was scheduled to close on May 31. A $2.3 million tax-increment financing loan was expected to close at the same time.

However, that didn't happen.

When asked Tuesday about the status of the financing and the timeline for the Broadway at Center project, Titan Development Marketing and Communications Manager Sheila Thoma made a statement via email. Titan is a Chafoulias family company.

"It has not closed. As soon as it does, I will let you know," she wrote

The loans are being made by Minneapolis-based Dougherty Financial Group, which includes seven financial companies that manage more than $42 billion in assets. The firm's founder and board chair, Michael E. Dougherty, is very familiar with Rochester and Mayo Clinic's Destination Medical Center initiative.
Dougherty joined the the Mayo Clinic Board of Trustees in 2012. He then became a DMC Corp. board member in April.

While the loans and $6.5 million in assistance from the city of Rochester will finance the majority of the $140 million project, people close to the project say an additional $35 million is coming from Middle Eastern investors.

Chafoulias, with limited assistance from his son Andy Chafoulias and Titan, has been working on different versions of this project since 2007.

Broadway at Center will house a 264-room Hilton Hotel, 33 apartment units and space for office, retail and restaurant use. More than $14 million — including the city's $6.5 million assistance to the developer and the remainder of infrastructure costs — is planned to be reported as DMC local contributions and credited toward the city's $128 million commitment.

There has been a lot of interest about when demolition of the empty CJ's Midtown Lounge and other buildings on that corner would begin. Once the financing for the project is locked in, that should clear the way for work to start.

For $300,000 upfront fee, Mayo Clinic licences cancer vaccine technology

June 06, 2016

Developer to pay for extension on Golden Hills School deal

A Twin Cities-developer interested in buying an old Rochester school building says it needs more time to put a plan together.
 
GoldenhillschoolRyan Cos. signed an agreement last fall to buy the former Golden Hill School building for $1.8 million from Rochester Public Schools. The empty 36,000-square-foot building is located at 2220 Third Ave. SE.
 
Mark Schoening, Ryan's senior vice president of national retail development, described the tentative plans in September as "…Bringing additional retail to that part of Rochester."
 
However, Ryan Cos. did not complete its due diligence on the property by a May 31 deadline. That's why the Rochester School Board is slated to vote on a request from Ryan at tonight's meeting to extend that period to Sept. 30. Ryan is willing to forfeit $25,000 in "earnest money" to pay for the extension.
 
Assuming the school board approves the extension, Ryan pledges that if needs more time before Sept. 30, it will forfeit another $25,000 to extend the deadline to Dec. 31.
 
 
 

June 03, 2016

Forager spreading out into market space

After less than a year in operation, Rochester's popular Forager Brewing Co. gastropub is outgrowing its space.

The hipster-friendly beer, coffee and food place plans to take over space within its 1005 Sixth St. NW building that now houses the Kutzky Market retail area.

"We just need more room, so we're going to re-organize," said co-owner Annie Henderson.

Kutzky-market-logoThe plan is to close the 1,200-square-foot market area at the end of June and start moving beer-aging barrels into the space in July. Beside beer storage, the space will be used as a customer waiting area as well as a public art space with a small retail piece.

The market, which features many local handmade items and antiques, has eight vendor booths. 

"A lot of them already have new homes. Some are moving into the Dwell Local (store)," she said.

The shift also opens up room for Forager to host a local art galley and music performances.

"There will be a lot of new programing over there. After C4 (nonprofit Rochester art collective) closed, it has been tough for local artists to find free space for events," said Henderson. She previously served on the C4 board with her Forager co-owner, Sean Allen.

May 24, 2016

Bye Buckeye, hello Ovation?

The name of a 92-unit apartment complex being built on the corner of Fourth Street and Third Avenue Southeast in downtown Rochester has been a sensitive issue for some of the neighbors. 
F89c28e7467b81cdb720c0c067eca5d3_f252
South Dakota developer Stencil Homes labeled it Buckeye Apartments as a nod to the Buckeye Liquor store that was demolished to make way for the project. Some in the neighborhood didn't think that was an appropriate name. Now it looks like the developer has decided to try something different.

Stencil Homes' website shows a 92-unit apartment building as a Rochester project, but it's not called Buckeye anymore. The new name under the old rendering of the complex is Ovation.

This must have been a recent change. The Answer Man wrote about this on April 27 and Buckeye still was the moniker at that point. CEO Nate Stencil was not available Monday to answer questions about the Ovation name, but it looks like concerned neighbors should give themselves a round applause for the spurring a name change.

 

May 23, 2016

Auto Techs to close at end of June

After 24 years in the fast lane, Roger Gansen is ready to slow down a bit.

Gansen has owned and run Auto Techs, a repair and sales shop, in Rochester since 1992. He has operated at his current location at 650 S. Broadway for about 12 years.

11146464_358227187720296_512149979420663139_oNow he has a "Closing soon" sign out front as he prepares to sell his property to the Lamont Cos. He plans to close the doors of his two-man shop at the end of June.

"It's kind of tough," said Gansen of the closure.

However, part of him is looking forward it.

"I'm ready for a change," he said. "I think this is kind of an opportune time for it."

The big question is will he re-open the popular Auto Techs somewhere else. That's a question he really doesn't have answer for.

"As of right now, everything is up in the air," Gansen said on Friday. "But right now, I'm looking forward to slowing down a bit."

While he is slowing down, the activity on that block of South Broadway is quickly ramping up this summer.

Lamont Cos. are the developers who recently purchased the adjacent Clarion Inn for $5 million with plans to build a newCandlewood Suites hotel and retail center. A liquidation sale of all of the hotel's furnishings and fixtures is underway.

Based in South Dakota, Lamont Cos. are the same developers who built Rochester's Holiday Inn by the Miracle Mile shopping center on Second Street in 2012.

May 20, 2016

Rochester's south Chipotle to re-open after hot water issue

I received several messages last night from taco bowl fans about Rochester's south Chipotle Mexican Grill at 1201 S. Broadway being closed. Chipotle-mexican-grill
 

It was just closed on Thursday, due to a water heater problem. I checked in with a manager today and he said they expect to re-open the eatery in front of Crossroads Shopping Center at noon today.
 
So Med City Chipotle addicts can relax and go get their fix.