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1214 posts categorized "Construction news"

January 27, 2015

Mayo looks to attract more patients from China

To take advantage of the rapidly growing medical tourism market, Mayo Clinic has deepened its relationship with a Hong Kong firm to bring more Chinese patients to Rochester.

Medisun Holdings Ltd. announced Monday it has signed a collaLogoborative deal to "Ensure efficient referral of patients" to Mayo Clinic. The agreement also calls for Mayo Clinic "to provide health care consulting services to aid Medisun’s work" in Hong Kong and mainland China.

This will allow Mayo Clinic to enlarge its patient pipeline from China. It has added a Web page in Mandarin Chinese and has hired interpreters, the article notes. The Wall Street Journal recently reported increasing numbers of Chinese residents are going overseas "in search of treatment that is either unavailable or ineffective in China."
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Mikel Prieto, medical director of Mayo Clinic's international office, told the Wall Street Journal that "China, probably of all countries, is the one where we see the greatest growth right now."

Melissa Goodwin, Mayo Clinic's manager of global referrals, told China's Caixin Media this summer the number of Chinese people going to Mayo has climbed to 200 in 2013. That's up from just 30 in 2008 and 100 in 2012. She estimated that number would reach 400 by the end of 2014. 

H3-treesDetails of the new Medisun/Mayo Clinic arrangement still are being hammered out, according to Dr. Jason Zhang, of Medisun.

Zhang did confirm that a $1 million office being built in Titan Development and Investments's new H3 Plaza complex on South Broadway will house Medisun's Rochester operations. It's being built under the name Alphaomega Healthcare, though Zhang said he expects it to eventually change to Medisun.

He explained the office will be used to support Chinese patients traveling to Rochester for treatment.

"The medical service will be provided by Mayo, and everything else will be provided by Medisun," Zhang said.

The Medisun office is expected to open in March or April in the west corner of H3 Plaza at 300 S. Broadway, he said. The office will occupy parts of the second and third floors of the seven-story complex, which is being developed by Titan's Andy and Gus Chafoulias.

“Consulting with Mayo Clinic, and leveraging Medisun’s top-quality medical institutions in Hong Kong … Medisun’s experienced medical team will facilitate access to Mayo Clinic’s world-class model of care in order to provide patients in China and Asia with superior medical services,” Medisun's Chairman Danny Wong said in Monday's announcement.
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Wong visited Rochester this summer in connection to his company's investment in Cardio3 Biosciences. Cardio3, a Belgium company with deep business and scientific ties with Mayo Clinic, is negotiating a lease deal with the City of Rochester for the fifth floor of the Minnesota Biobusiness Center.

While in Rochester, Wong had his photo taken at the clinic with local leaders, including Gus Chafoulias and Mayo's Lisa Clarke, who leads the Destination Medical Center initiative.

Wong recently showed his interest in Rochester by buying two large estates here. On Oct. 31, he bought an estate at 2515 Crest Lane SW for $1.4 million. Wong followed that up by buying a Pill Hill house at 615 10 Ave. SW for $1.31 million.

Options abound for one of Rochester's oldest storefronts

While many are speculating about the future of a 129-year-old building in the heart of Rochester's downtown, the owners say they haven't locked down a plan yet.

549b9e10ed075.imageThe long-empty former Paine Furniture store at 313 S. Broadway was purchased by local developers Hal Henderson and Grant Michelitz in November. The deal also included the attached 309 S. Broadway building now occupied by Big Brad's bar on Broadway.

Some renovation work and installation of new windows is being done on the second floor, said Henderson. They also hope to build a skyway across the alley to connect the Paine building to the 318 Commons building, also owned by Henderson and Michelitz.

The University of Minnesota Rochester leases space in the 318 Commons building for student housing, office space and classrooms. A connecting skyway could make the second floor of Paine building attractive to UMR.

"We do foresee space crunches in our growth plan prior to the development of the future campus," said Jay Hesley, assistant vice chancellor for institutional advancement. While no decisions have been made, Hesley acknowledged the university had looked at the second floor of the Paine building.

"We've certainly explored all of the different opportunities that are available, and that was certainly one of them on the list," he said.

Henderson said there have been preliminary talks with UMR officials about the Paine building. He also said an option is to demolish the Paine complex and put up a building that would be a sibling to 318 Commons.

"I do have more real estate on that block," he said. "In the future, we may have a plan that we may try to unveil or look at pretty seriously." Henderson owns the adjacent Cafe Steam at 315 S. Broadway and the Canvas & Chardonnay building at 317 S. Broadway. "It all depends on what transpires in the next three to six months" with Destination Medical Center and the university's plans, he said. "I think right now, everyone is still leaving their options open."

January 23, 2015

WSN buying empty Home Design Studio on W. Circle Drive

After being empty for years, new life is on the way for a former home construction showroom in northwest Rochester. 

Widseth Smith Nolting, a Crookston-based engineering and architecture firm, announced this week it has signed a purchase agreement to buy the former Home Design Studio from Rochester's Event Studio LLC. The 32,000-square-foot complex is located at 3777 40th Ave. NW, along West Circle Drive.

HomeDesignDusk2-10x8_editedThe sale is expected to close in March with a build-out beginning in April, according to WSN. The plan is for WSN to move its increasingly crowded Rochester office into 11,000 square feet of the building by August.

"We are absolutely shoe-horned in here," said Brian Carlson, WSN's director of business development, of their current 4,500-square-foot office at 6301 Bandel Road NW. "We need to provide the space and resources for our team members to do what they do best."

WSN opened its Med City office in 2009, when it merged with QED Engineering. In 2014, it merged with Rochester's Kane and Johnson Architects. WSN now has 20 employees based here. WSN has a total of seven offices and 200 employees in Minnesota and North Dakota

The firm plans to lease the rest of the building to other tenants, probably to other professional offices. This is a very different fate than was expected for the Home Design Studio building. It opened for the first time in 2006 at the height of the construction boom, which imploded soon after.

It was designed by Kane and Johnson Architects as a home builders' showroom with model kitchens, bathrooms and other room layouts. Lead by local contractor Jerome Bigelow, a group of 13 owners optimistically launched the operation with a grand party attended by hundreds of Rochester business leaders. It had 59 people on staff working for a variety of construction-related businesses. The last occupants moved out in April 2012.

Event Studio LLC, of Rochester, then bought the unique complex from Partnership 10, of Byron, in 2013 for $1.3 million. Event Studio lists Rochester developer Dan Penz as manager on its incorporation documents.

Then in 2014, WSN began the search for a larger space in Rochester.

"We looked at lot of different buildings all around the city. We really like this building," Carlson said. "We liked the exposure. We liked the location and the ability to have our whole team in one spot."

January 15, 2015

New name goes up on downtown Rochester landmark

A downtown Rochester landmark now is sporting a new name.
 
A new sign for the Morgan Stanley Center went up on Wednesday at 201 S. Broadway, the former Lanmark Center.

01142015morganstanleysign"When we renewed our lease, we asked about the naming rights of the building," said David Olson, who is in charge of Morgan Stanley's Rochester branch. "People agreed it would make sense for it to be the Morgan Stanley Center. We're really excited about it."

Morgan Stanley has been based on the second floor of the 65-year-old building for the past 15 years, he said. However, a lot of people weren't aware it was there.

"Now," Olson said, "People will know where we are."

While many financial companies have moved out of downtown in recent years, Morgan Stanley decided not to follow them.

"It's kind of fun being here right at the heart of it, here at Broadway and Second. With DMC (Destination Medical Center) and all of the developments, it makes sense to stay," he said.

As part of the change, Morgan Stanley has made some changes to spruce the building and the office up. Olson said he expects to host an open house in the spring to celebrate the new name.

The name, Lanmark Center, originated from Lanmark Property Management. That firm was owned by Rochester developer Gus Chafoulias, who also owned the building from 1998 to 2003.

In 2003, GAC Development sold the 34,384-square-foot complex to MK Lanmark LLC for $7 million. MK Lanmark is owned by real estate investor Mark Kramer, of Iowa.

The building is known to older generations of Rochester residents as the former F. W. Woolworth Co., which opened there in January 1950.

Before Woolworth, that site had housed the historic Cook Hotel. The Cook Hotel, which was built in 1869, burned in February 1946. It was demolished in 1949.

January 12, 2015

Downtown coffee shop to re-launch on Tues.

The new owners of a downtown Rochester coffee shop are planning for a soft re-opening under a new name on Tuesday.

Press Coffee and Tea Lounge at 315 S. Broadway abruptly closed in late December when its then-owner, Chris Holloway, was arrested and charged with one count of felony third-degree criminal sexual conduct.

Now, a group of local people have banded together to re-launch the popular downtown spot as Café Steam. The new owners include: Hunter and Traci Downs; Dr. Nathan Staff and wife Kaya Garcia; and David Hewitt.

Hewitt is known for being involved with a variety of Rochester businesses, like Mama Meg's homemade ice cream sandwiches and the nearby co-working site called The Cube. The Downses also own Area Ten Labs, a Rochester technology firm.

"It had become such a community meeting place. I've had so many business meetings there and have met so many friends there. Students go there to study, often in the evening," said Hunter Downs. "For us, this is about bringing that back to the community."

The former staff members of Press have been offered jobs at Steam, according to Downs. Some have accepted and will return.

"We still need more people," he said.

The new owners have been working feverishly in the past couple weeks to renovate the space and prepare a new approach. They hope to open the doors as Steam at 7 a.m. Tuesday, in time for the regular gathering of the BioAm biobusiness group. However, Downs cautions that it's still a work in progress with many details still being finalized.

"This is more about evolution than a revolution, at this point," he said.

The new owners are putting out a call for local artists to help them with artwork for the coffee shop's walls.

Like Press, Steam will serve a full array of coffee and tea. Though the new owners plan to eventually expand the food menu.

"We're taking it in a little bit of a different direction with more food options and some ice cream," he said.

The coffee shop originally opened in 2013, after Holloway raised the funds for it with a Kickstarter campaign. It's located in a 115-year-old brick building.

January 07, 2015

Cardio3 buys cancer-fighting firm for $10 million

Cardio3 BioSciences, which works closely with both Mayo Clinic and the City of Rochester, has paid $10 million for the oncology division of a New Hampshire firm.

The Belgium-based Cardio3 agreed to pay Celdara Medical $6 million in cash and $4 million in new shares for the division called OnCyte. Celdara could receive up to $50 million, if its lead product in-development CM-CS1 hLogo_cardio_3its specific development and regulatory milestones.

The same type of payments for milestones could also reach $21 million per product for others in the pipeline. If CM-CS1 reaches market and net sales top $1 billion, Celdara will receive up to $80 million in payments from Cardio3.
OncyteCM_png
This is Cardio3's second acquisition in recent months. In November, it purchased a virtual company called CorQuest Medical Inc. Corquest is developing a sheath to provide a minimally invasive way to insert therapeutic devices. The CorQuest technology platform is complementary with Cardio3’s C-Cathez and C-Cure systems. Financial terms were not released.

The OnCyte expands Cardio3's reach beyond regenerating cardiac tissue by entering into the rapidly growing immuno-oncology cancer treatment area using chimeric antigen receptor (CAR) T cells. OnCyte's CM-CS1 uses (CAR) technology to destroy cancer tumors. The Federal Drug Administration has cleared CM-CS1 to begin a clinical trial using patients with acute myeloid leukemia /advanced myelodysplastic syndrome and multiple myeloma. Juno Therapeutics, Amgen and Kite Pharma and others are developing products based on this concept.

In an interview with Bloomberg News, Cardio3 CEO Dr. Christian Homsy described acquiring OnCyte as “Our first foray into an area that is of very high interest… It opens a new reach, a new broad area of growth for the company that is of very high value to us and our shareholders.”

Those shareholders include Mayo Clinic, which held 3 percent ownership of Cardio3, as of Aug. 4. Mayo Clinic first acquired equity in Cardio3 in 2007, when it licensed stem cell research by Mayo Clinic's Dr. Andre Terzic and Dr. Atta Behfar. The cardiopoiesis technology uses to repair patients' hearts by re-programming their own stem cell to regenerate cardiac tissue.

When announcing the acquisition, Homsy said that four of Cardio3's top shareholders supported the move. A Belgium family-owned holding company called Tolefi SA is the lead shareholder with 32.23 percent of the shares. The Hong Kong-based Medisun, which is building an office in Rochester, owns 8.08 percent.

In the years since 2007, Mayo Clinic has developed a close working relationship with the Belgian company. Mayo Clinic is leading the U.S. clinical trial of Cardio3 and is using a lab in the Minnesota Biobusiness Center in downtown Rochester.

A possible deal is in the works for Cardio3 to occupy the entire fifth floor of the city-owned Minnesota Biobusiness Center. Gary Smith of the Rochester Economic Development Inc. said the company has not signed a lease yet and some financial details still need to be worked out.

If Cardio3 does decide to occupy the fifth floor, Mayo Clinic will need to move its staff that currently fills the space.

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.