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1208 posts categorized "Construction news"

December 15, 2014

Beltz leaves Titan for Waters on Mayowood

In case you didn't see this in print over the weekend, here's a column about an interesting pesonnel change.

Plus it sounds like another well-known Rochester leader is also making a switch. Should have more on that soon.

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A well-known leader in Rochester's hospitality industry was recently hired by a large, new senior living complex.

John Beltz started on Dec. 1 as the manager of community relations for The Waters on Mayowood, a new 175-unit senior living community under construction at Mayowood Road Southwest and 16th Street Southwest. It's expected to be ready to open for residents in March.

0e7496bThe massive 282,070-square-foot complex will feature a variety types of apartments in two four-story buildings. That will include 71 independent living apartments, 70 senior living with services, 20 memory care and 14 enhanced care apartments.

Beltz has been a high-profile local hospitality executive for many years. Since 2013, he has worked as vice-president of brand management and revenue development for the Chafoulias family's Titan Development and Investments. Prior to that, he worked for Broadway Residence and Suites for six years. From 2002 to 2007, he worked at Rochester's Kahler hotels as a regional vice president for then-owner Sunstone Hotels.

"This is just an another application for my hospitality skills for a new demographic," he said of the new position. "I'm excited to be working with an organization that's really poised for growth."

The Waters on Mayowood is the creation of Rochester developer Jeff C. Brown partnered with The Waters Senior Living of Minnetonka as the operator. The Waters is in charge of seven senior living centers in Minnesota.

“John’s extensive background in high-end hotel management is a perfect fit for The Waters on Mayowood’s upscale community and discerning residents,” stated Waters CEO Kyle Didler in his hiring announcement.

The Waters also hired another well-known Rochester at the start of 2014, when it added Bruce Rohde as the director of community operations for The Waters on Mayowood. Rhode had previously worked for Mayo Clinic for 25 years, most recently serving as the high-profile chair of the facilities division.

December 09, 2014

Work on 2nd Aldi store really rolling along

Workers braved the chilly weather today to start putting up the big sign for the new Aldi grocery in northwest Rochester.

09122014aldistoreThe 17,000-square-foot store has went up quickly by McDonalds and Costco.

Aldi officials from their Faribault division have previously said they expect to open by April. That estimate was calculated on breaking ground by the end of 2014.

I'd say work is running quite a bit ahead of that schedule.

Aldi is also renovating its exisiting Rochester store at the Crossroads Shopping Center.

December 03, 2014

Paine Furniture building sold for $1.7 million

New local owners hope to breathe new life into a 129-year-old building in downtown Rochester.

Get_photoOn Nov. 20, local developers Grant Michelitz and Hal Henderson purchased the long-empty former Paine Furniture store site at 313 S. Broadway as well as the 309 S. Broadway building now occupied by Big Brad's on Broadway. The pair acquired the property from Cedric Paine under a Contract for Deed deal for $1.7 million. Michelitz said negotiations for the sale have been ongoing since the Paine Furniture store closed in 2006.

While they plan to upgrade and restore the property, Michelitz says no deals for new tenants have been signed yet.

"The word leaked out pretty quick. We have got several meetings with prospective tenants coming up here in the next week or so," he said. "We're already invested in that block. We like the direction that it is going in."

The business partners also own the nine-story 318 Commons complex used by the University of Minnesota for student housing and classes. It's behind the Paine site facing First Avenue. Henderson, the principal in the Rochester office of HGA Architects and Engineers, also owns the adjacent Press Coffee & Tea Lounge at 315 S. Broadway and the Canvas & Chardonnay building at 317 S. Broadway.

Michelitz owns the 220 and 222 buildings across Broadway from the Paine site. They both have been renovated in a classic style similar to what is expected to happen at the Paine building.

If the weather allows yet this year, they hope to soon replace the second-story windows with double hung ones that better match the original design of the building, said Michelitz. They also expect to add an elevator and stairway tower on the alley side of the building to make the second story accessible.

Built in 1885, the 313 building housed the Paine Furniture Co. for 104 years from 1902 to 2006. In 1927, the Paines expanded into the 309 building, which had been home to the Klee grocery store and the Stedman bakery prior to that.

This sale is the latest in a long string of business changes and real-estate sales in Rochester's downtown.

Michaels restaurant, Barnes & Noble bookstore and Sontes all have announced they will close at the end of this month, and Hanny's Men's Wear is closing its street-level store.

Michelitz declined to speculate on the future of the area, but seemed optimistic.

"It is really fluid right now. I think we all hope for smart growth," he said.

December 01, 2014

Ramada = Kahler Apache

A 37-year-old Rochester hotel is trading a national brand for a local one.

The Ramada Hotel & Conference Center, owned by Dan and Terri Penz, of Rochester, officially became the Kahler Apache on Friday. The 149-room hotel is at 1517 16th St. S.W.

Neither of the Penzes were available for comment on Sunday.

01122014ramadakahlersignWhile the southwest hotel now shares a name with four downtown hotels, Kahler Hospitality Group Marketing Director Cherylanne Thomas said it is not financially linked to the other hotels, and KHG is not licensing the name. KHG, which is led locally by businessman Javon Bea, owns the Kahler Grand Hotel, the Kahler Inn & Suites, the Marriott Rochester, the Residence Inn and the Textile Care Services industrial laundry.

"We're just managing this for Dan Penz. We're just consultants," she said. "We just lent him our name to his property because he chose to de-flag it as a Ramada. We're saving him on the franchise fee, which is savings he can pass on to his guests."

KHG and the Penzes signed a contractlast summer that turned the management of the hotel over to the Kahler hotel team. In a similar relationship, KHG hired Colorado-based Richfield Hospitality to manage the Kahler hotels in 2013. Thomas said because KHG doesn't have ownership in the Kahler Apache, Richfield does not have any involvement that hotel.

This name change for the former Ramada will have no effect on the hotel's about 60 employees, said Thomas.

"They are still under an employment contract with Dan Penz. That has nothing to do with us," she said.

01122014kahlerapchesignA longtime Kahler employee, Chase Albrecht was recently named as general manager of the hotel.

"He (Albrecht) now is an employee of Dan Penz," Thomas said. "The previous GM had left on his own."

The Penzes originally purchased the hotel when it was under the Best Western brand in 2002. It became a Ramada franchise in 2004. The hotel originally was built by well-known developer George Baihly in 1977, and it opened as a Midway Motor Lodge. This is the first time the hotel will not have a national brand name over the entrance.

Driven by loyal return visitors coming for Mayo Clinic, Rochester has long been a stronghold for independent hotels without a national brand. While the Kahler name was franchised nationally in the past, Rochester has always been its primary base of operations. Other local independents include the Fiksdal Hotel and the adjacent Aspen Suites.


Local developer Ed Pompeian also has found success with his two Brentwood hotels.

Independent hotels struggled for many years nationally as the big chains established online reservations and rewards program. However, that is changing, said industry expert Smith Travel Research Inc. STR data shows occupancy and revenue at independent hotels growing quickly this year. Analysts point to local market knowledge and online review sites, such as Tripadvisor.com as keeping independents competitive with big chains like Marriott and Hilton.

Hotels, always important in Rochester, are growing quickly as part of the new Destination Medical Center economy. Almost 400 new rooms to be added in 2015 to the current 5,443 rooms.
Brad Jones, executive director of the city's Convention and Visitors Bureau, expects Rochester will pass the 6,000 room milestone in 2017.

November 20, 2014

Fairfield Inn on the rise

112014fairfieldinnIn looks like work is really rolling along on Rochester's new Fairfield Inn & Suites.

This is the 91-room, four-story hotel being built at 10 17th Ave. N.W., where th e Courtesy Inn was demolished this summer. That's near the Miracle Mile Shopping Center.

 

This project is being spearheaded by two second generation hoteliers, Nick Pompeian and Harshal Patel.

07042014courtesyinn

Here's an early demo pic from July.

 
 
 

November 12, 2014

New specialty grocer to build in S.W. Rochester

A new specialty chain is on its way to Rochester, joining an already crowded grocery scene.

Natural Grocers by Vitamin Cottage, based in Golden, Colo., has filed plans with city to build a 14,000-square-foot store on an open lot in southwest Rochester by the TJ Maxx Plaza and the Ramada Hotel and Conference Center

Get_photoThink Mutual Bank owns the store site, which is at the corner of Greenview Drive and Salem Road Southwest. Think had planned to build there, but recently the bank announced it planned to offer the plot for development.

This will be Natural Grocers first store in Minnesota, though the 59-year-old public company currently operates 84 stores in 14 states, with 10 more expected to open soon.

While it generally is described as a specialty food retailer, Natural Grocers is very different than Hy-Vee, Trader Joe's or Aldi. It sells only organic foods as well as an extensive selection of vitamins and dietary supplements. The chain's website says its stores devote about 30 percent of their shelf space to vitamins, which in turn generate about 30 percent of its revenue.

"It looks like it goes deeper and more narrow than a mainstream grocery store. It is much more like a Whole Foods or a co-op," said Jonathan Seltzer, a St. Thomas University business professor.

Seltzer, who previously worked at the Supervalu grocery chain, doesn't think the addition of Natural Grocers to Rochester should hurt any one retail competitor more than others.

"It will probably draw some customers from many different players," he said.

This new store is just one factor in what is becoming a very competitive grocery scene in Rochester. Discount grocer Aldi is building its second store here and Hy-Vee plans to start construction of its fourth location in early 2015. The city's other food retailers include Cub Foods, Fareway Foods, Zzest, Walmart and Target.

"It seems that you are getting more square footage devoted to food retail in Rochester than the population would warrant," said Seltzer. "That probably speaks to the strength of Rochester's economy and its draw from nearby areas."


Groceries on the way
  * Natural Grocers by Vitamin Cottage is proposing to build a 14,000-square-foot store in southwest Rochester. No projected opening date.

* Hy-Vee is planning to build a fourth Rochester location, a 90,000-square-foot store at 4200 West Circle Drive N.W. The goal is have it completed and open by late summer or early fall of 2015.

* Aldi is building a 17,000-square-foot store, its second in Rochester on the northwest side. The goal is to open in April 2015.

November 08, 2014

The fall of the Flamingo

It may be almost winter with snow in the forecast, but it is definitely "fall" time at Rochester's former Flamingo Bingo/Circus World/ Skateland building

11082014flamingodemo1Demo crews have been chewing away at the empty building at 2828 U.S. 52 North in the past week or two. With about half of the 42-year-old building already gone, it's definitely "game over" for the former entertaonment parlor.

The Twin Cities-based Luther Automotive Group owns the building and it launched demolition plans in October, though the company has no immediate plans for the property.

"I'm simply taking it down because I just don't want to carry the building through the winter. The roof is compromised," said Linda McGinty, Luther's director of real estate and development, last month. "We just don't have a use for it. When we do develop this site, that was a building that we weren't planning on reusing."

The car dealer bought the 42-year-old building for $950,000 back on Jan. 17. Luther also owns Park Place Motors, Rochester's BMW dealership. Since Park Place is nearby, Luther theoretically could use the ex-bingo property to expand Park Place or possibly to introduce a new dealership into the market.

Flamingo Bingo, which raises money for the Rochester Senior Center, moved out of the 2828 building in April and into the Elks Lodge 1091 at 1652 U.S. 52 North in the Hillcrest Shopping Center.

It had operated in that building since 2007. Prior to the creation of Flamingo Bingo, it was the home of Circus World Bingo, which raised funds for Rochester's Catholic schools.

November 04, 2014

Developer to build $15 million apartment complex near Roch. city hall

A South Dakota developer plans to build a $15 million, 110-unit apartment complex near downtown Rochester, plus 179 more apartments on the far northwest side.

Stencil Homes of Sioux Falls, S.D., has purchased three buildings — Buckeye Liquor, the empty Flowers By Jerry shop and the 3rd Avenue Pet Hospital — on Third Avenue Southeast and Fourth Street, across from the Olmsted County Government Center and Rochester City Hall.

11042014stencilaptsDeveloper and builder Nate Stencil and his partner, Sean A. Kaufhold, plan to build a six-story apartment complex with 3,100-square-feet of retail space on the main level and underground parking for residents.

"We're really excited about this project," Stencil said on Monday. He expects construction to begin in early spring 2015 and the complex to be completed in spring 2016.

To clear the way for the project, his company purchased the former flower shop at 410 Third Ave. S.E. for $450,000 on Oct. 15 and followed up with a $600,000 buy on Oct. 22 of the Buckeye Liquor building and nearby parking lots. Stencil bought those properties from Kevin Patton, the owner of Flowers By Jerry.

"I just think it is going to be nice to put something there to revitalize the neighborhood," Patton said.

Diane and Robert Satterwhite, who operate Buckeye Liquor and now lease from Stencil, said they will move their liquor store and continue to serve Rochester. However, no timeline for that has been determined.

The developers also recently purchased the 3rd Avenue Pet Hospital at 414 Third Ave. S.E. Dr. Caroline Baihly, who has owned 3rd Avenue since 1998, is essentially merging her clinic with the Quarry Hill Animal Hospital. After Nov. 24, Dr. Baihly and the other doctors at Quarry Hill will serve her client list.

"At this point, I looking forward to the change," she said.

With the surge of Destination Medical Center-driven development, this was something Baihly expected to happen eventually.

"I looked at the practicality of the whole thing," she said. "It seems when I look at the DMC map that this whole area is included. I think DMC has a lot to do with it."

Stencil said DMC did have something to do with the Third Avenue project, though it cropped up after they already had decided to invest in Rochester. He began working with Rochester Realtor Merl Groteboer about three years ago.

"When we started, DMC wasn't even on our radar. We were well into planning before we even heard about it," he said. "Though the project in downtown was probably influenced by it."

Second project

Stencil and his partner also have lined up property near the 65th Street Northwest interchange across U.S. 52 from the new North Menards store. Construction of the 83-unit Woodland Park apartments began there a few weeks ago. Stencil said he expects Woodland, which architecturally will be similar to the Metropolitan Marketplace complex, to be completed by late spring to early summer.

Work on Stencil's third complex, Kascade Place, is expected to begin nearby soon after Thanksgiving. It will have 96 apartments.

Those apartments, along with the proposed downtown ones, will be priced comparably to other market rate units in Rochester, he said. That means rents ranging from $900 to $1,000 a month.

"We feel very good about the market apart from DMC," said Stencil. "We believe the need for housing is coming as part of Rochester's natural growth."

November 03, 2014

Loop creators to build new restaurant in NW Roch.

Four Rochester restaurateurs plan to follow up the success of The Loop by building a new family place.

Ryan Brevig, Todd Jensen, Derek Link and Josh Paulsen opened The Loop in 2012 in downtown Rochester. It was their third restaurant, though their first in Rochester. Now, the quartet of 1997 John Marshall alumni are ready serve up a new restaurant concept to the Med City.

11032014citizenrestaurant"We've wanted to do this for a long time. We're in a place where we want to expand in Rochester," said co-owner Brevig. "Now, we have a green light to go ahead."

They've purchased land in the northwest development anchored by Costco, with plans to build a 7,800-square-foot restaurant to be called Citizen Kitchen & Bar. It will be positioned near the northeast corner of 19th Street and West Circle Drive.

The tentative plan is "to move some dirt in two weeks" and then get the building framed up before winter hits. If all that happens on schedule, they hope to open in April or May.

While this new creation will have some of the flavor of The Loop, it will have its own identity, explained Brevig. Many of the four partners now have young families, and they wanted this new restaurant to be more welcoming to families than their three restaurants that tilt toward a young adult crowd.

The menu will cover familiar territory for Loop fans. He describes it as "contemporary casual American food."

Opening Citizen is also about giving back to the city they call home.

"That's why we decided on Citizen as a name. All four of us are citizens of Rochester. It seemed to make sense to us," said Brevig.

This will be the fourth upscale restaurant the Loop team have opened in the last eight years. 

Their two Minneapolis eateries, the original Loop and Bar 508, were built in historic buildings in very urban settings. The Rochester Loop was different because it was part of the new construction of the 318 Commons complex. However, it also is a very downtown operation based on a busy city street.

"It will have a little more of a suburban feel," he said. "And this will be the first really stand-alone building we've built," he said.

That means they can do some things that weren't possible in the other properties. Citizen will include a private dining room that will be available for reservation for events. It also will feature a larger kitchen, which will allow Citizen to offer catering.

Making "a significant investment" into Rochester like this means Brevig and his partners also will be adding to the already large workforce they employ. They have 167 people working at the three current properties. The expectation is to add another 47 people to the team when Citizen starts cooking in 2015.

October 29, 2014

New downtown Rochester fitness studio warming up for opening

A new fitness studio is gearing up to open in downtown Rochester before the holiday feasting begins.

Sarah Pacchetti's Studio on Third is all set to open on Monday at 18 Third Ave. S.W. in the basement of the Merchant Exchange Building.  The 1,000-square-foot fitness center is tucked in next to The Doggery cocktail bar.

10282014studioonthirdThe studio offers hip hop, Barre, Piloxing, Zumba and yoga classes for Rochester folks as well as visitors staying in downtown hotels.

"I've been playing with this idea for years. I wanted to open a place that would be fun and empower others," she said in July, when she announced her plans for the studio.

Pacchetti is a certified instructor previously taught classes at Mayo Clinic's Dan Abraham Healthy Living Center. She has a team of nine instructors or as she calls them "inspire-ers." That team includes a couple of names that are familiar to the Rochester business community, Jess Irhke and Sara Pennington.

Sarah, with her husband John Pacchetti, bought half ownership of the basement level of the Merchants Exchange Building in June. The Pacchettis co-own the space with Scott Hoss, who also handles the leasing as an agent of Rochester's Paramark Real Estate Services.

The Pacchettis also own the Rochester-based Home Instead senior care operation that serves southeastern Minnesota.