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1193 posts categorized "Construction news"

September 18, 2014

H3 Plaza's 1st tenant to move in during Dec.

The first tenant is expected to move into downtown Rochester's latest office building development in December, though the entire seven-story complex is not expected to be completed until the spring.

Titan Development and Investments, of Rochester, is building the $17 million building now called H3 Plaza at 300 S. Broadway. Construction began in March, when Titan demolished the former C.O. Brown building that previously stood on the site. H3 is a reference to Rochester's Historic Third Street, which is directly across Broadway from the building.

541ae78d4ef07.imageTitan will be the building's first tenant, with plans to fill the sixth floor with its offices in December. Titan, led by Andy and Gus Chafoulias, has about 25 employees working out of the Minnesota Biobusiness Center on First Avenue Southwest.

"We'll have it ready by then," said Joe Fort, project supervisor for Weis Builders, last week, as he stood inside the bare beams on the sixth floor and a crew of about 45 of his workers and local subcontractors worked around him. Fort expects to have the building enclosed and weather-tight before the full force of winter hits. That will allow them to work through the colder months to complete the first through fifth floors.

All but 6,000 square feet of the 43,000-square-foot building is already leased to local tenants, said Titan marketing and communications manager Shelia Thoma. That available space is divided between the second and third floors of the H3 Plaza.

The Nova Restaurant Group, which is led by Scott Foster and Pat Woodring, will fill the street level with an authentic Italian eatery as well as a rooftop patio bar and grill on the seventh floor. The rooftop patio will tower over Rochester's two nearby roof bars, Kathy's Pub and The Tap House.

Foster and Woodring have worked with Gus Chafoulias in the past, when they opened Chester's Kitchen & Bar in his Shops at University Square building in 2008 and Pescara in his DoubleTree by Hilton Hotel in 2009. They haven't named the H3 restaurants yet, though they do hope to open the Italian place in the spring.

Sept.2014H3rooftopSide-by side elevators will take people to the rooftop patio, even when the businesses in the building are closed. H3 Plaza will be connected to the adjacent City Centre complex and the Holiday Inn skyway.

Med City Dental and Dunlap & Seeger law firm, two businesses being displaced from the Associated Bank Building at 206 S. Broadway, have leased space in the H3 Plaza. The dental office, owned by Dr. Fred Carlson, will be located on the second floor, and the law firm, Rochester's largest, will occupy half of the third floor and all of the fourth and fifth floors.

Developer Bloom International Realty of Abu Dhabi plans to demolish the Associated Bank building in 2015 and possibly build a high-end hotel.

Andy Chafoulias originally envisioned developing the H3 Plaza site as a three-story restaurant and entertainment venue in 2013. That plan evolved as information about Mayo Clinic's Destination Medical Center initiative came out, along with the re-development plans for the Associated Bank building.

The Rochester City Council approved a special redevelopment tax-increment-financing district to raise $300,000 for Titan to cover the asbestos removal and demolition of the former C.O. Brown building. The council also prematurely labeled the H3 development as a DMC project.
 
Assistant City Administrator Gary Neumann said that since the DMC Corp. board of directors needs to approve any project before the start of construction, the H3 development doesn't qualify. However, the council's order states that any leftover money from the tax increment financing for the project could rollover to any nearby approved DMC projects, such as the anticipated update of Historic Third Street.

The pay-as-you-go TIF essentially reimburses the annual taxes the developers will pay, once the project is complete. The earliest Titan could see a payment was estimated at 2016.

Another, much larger, Titan development planned for the corner of South Broadway and East Center Street could possibly qualify as a DMC project. Spearheaded by Gus Chafoulias, the preliminary plan presented to the City Planning and Zoning Commission in March showed a 24-story, mixed-used complex featuring retail and restaurants, a 184-unit Embassy Suites Hotel on 11 floors, 84 apartments on six floors and underground parking. It was called Broadway at Center at that point.

Thoma said that project, which now is called The Legacy, is undergoing changes.

"A redesign with the hotel plans is the reason we are still in the design phase," she said.

September 04, 2014

Pending real estate deal spurs flower shop move

Flowers By Jerry will soon move its Third Avenue shop because a pending real estate deal could change scenery on the high-profile Rochester corner.

04092014flowersbyjerrybuckeyeOwner Kevin Patton says the sale of his building at 410 Third Ave. S.E. is in the works along with the adjacent Buckeye Liquor building, which he also owns. Robert and Diane Satterwhite own Buckeye and lease the building from Patton.

Patton is shifting his business offices and the floral design from the Third Street shop to Flowers By Jerry's other location by Silver Lake. That change could happen by the end of this month.

"We're consolidating that part of the business, but we're also branching out," said Patton said.

Patton is opening another store, Flowers By Jerry Lux Floral Boutique, in the TJ Maxx Plaza in southwest Rochester to replace the Third Street location. As the different name would suggest, this new location will be a new take of the standard flower shop.

Patton describes it as mix of a floral store with a women's clothing boutique with clothing, jewelery and home decor.

The floral boutique will be located just outside the entrance of TJ Maxx. Flowers By Jerry will move into the 2,500-square-foot space left open by Fox Nails' recent move to a new spot on the other side of the atrium.

If everything goes as planned, it's expected to be ready to open by the start of November, if not sooner. With all of the changes, Patton anticipates he may eventually need to add a new part-time position or two to his current staff of about 20.

While all of these plans are moving forward, details about what will happen on the corner of Third Avenue and Fourth Street are scarce at this point. The sale of the Flowers By Jerry and Buckeye Liquors buildings could close by the end of this month. However, Patton isn't discussing the buyer or any other details until it officially wraps up.

Given that corner's proximity to downtown and the Olmsted County Government/Rochester City Hall, some are speculating that the purchase of those two buildings is a sign that a developer wants to build a new commercial center, restaurant or hotel.

New Scheels store shaping up

Lots of activity at the new Scheels All Sports mega-store site at Rochester's Apache Mall this balmy "fall" morning.

04092014scheelsConstruction and partial demolition of the former Sears store site has been rolling along all through the summer on this new sprawling addition to the Med City's sporting goods offering.

Fargo, N.D.-based Scheels estimates that it will be ready to open in early April 2015. The planned 140,000-square foot store will be larger than the 120,000-square-foot Scheels in Mankato.

It is expected to add between 120 to 180 new jobs toScheelsmap2 Rochester.

In addition to sporting goods, its features will include a fudge and coffee bar and a mini bowling alley.

The development for the expanded store also includes Apache Mall adding 9,000-square-foot restaurant site on the east side of the city water tower. 

There's no word yet on what restaurant might be planned for that site.

August 21, 2014

Homewood Suites construction rolling along

08212014homewoodsuitesEven though the skies are stormy, it's clear sailing on the construction on the new 108-room, six-story Homewood Suites extended stay hotel near Saint Marys Hospital.

Rochester's Carpenter family and Torgerson Properties, of Willmar, are building the Homewood hotel next door to their Courtyard by Marriott hotel. They also own SpringHill Suites.

Work on this project started a year ago. Dennis Wallenta, vice president of hotel operations for Torgerson Properties, says construction is on track for the hotel to open this fall, possibly in November.

August 20, 2014

Rochester architecture firm to move soon

A Rochester architecture firm soon will move out of its long-time digs.

CRW Architecture-Design Group, formerly part of Yaggy Colby Associates, will move out of its offices at 717 Third Ave. S.E. at the end of September, said CRW Principal Chris Colby. The firm has been based in the SEH-Yaggy complex, since it spun off from Yaggy-Colby in 2010.
08202014crwoffices
CRW is led by Colby, Jose Rivas and Jason Woodhouse. All three previously worked for what used to be Yaggy Colby.

SEH-Yaggy has committed that office space to another tenant, according to Colby. SEH-Yaggy is the result of a merger earlier this year between Yaggy-Colby and St. Paul-based Short Elliott Hendrickson Inc.

CRW OfficeWhile the firm eventually will move into its own building, construction of its 4,200-square-foot offices plus four apartments isn't expected to be completed until late October or early November.

That means the 10 employees at CRW will need to temporarily find work space for the 45 to 60 days until its new offices are finished, said Colby.

CRW's new complex is being built at 11th Avenue and Second St. N.W. The office and apartments are being developed by Jose Rivas.

August 19, 2014

Work on Holiday's new Valleyhigh station is cruising along

It looks like construction of the new Holiday Station c-store at Valleyhigh Drive and 40th Ave. N.W. is pumping right along.

08182014valleyhighholidayWork on this station is further along than Holiday's other new station project at 19th Street and U.S. 52, but both mark a major push by the Bloomington-based Holiday to try claim part of the Rochester market from the ubiquitous Kwik Trips.

Holiday moved back into Rochester last year when it purchased seven SuperAmerica stations here. It already had one station here. Holiday closed and sold two of the SAs. However, Holiday will have eight stations total with these two new C-stores being built.

Wisconsin-based Kwik Trip has 13 stations in Rochester with plans for more in the works.

August 15, 2014

Mama Fu's Rochester eatery is 'indefinitely' postponed

Mama Fu's Asian House still wants to open an eatery in Rochester, but don't expect to try General Fu's Chicken here anytime soon.

The Austin, Texas-based "Asian-centric" restaurant chain says its plans for a downtown location near Mayo Clinic are "indefinitely" postponed at this point.

Mama_Fus_logo_V_rgbBuzz about the quick Asian cuisine brand has been simmering since last year when the PB's insatiably hungry Answer Man wrote a column in November that said Mama Fu's had marked off a space in the Kahler Grand Hotel for a Rochester restaurant. Building permit applications were submitted to the city. Signs went in up in the Kahler promoting the future arrival of the franchise.

In recent months, Mama Fu's CEO still was mentioning the future Rochester location in news stories about the chain's plans to open smaller places as well as it's expansion into the Middle East.

Mama Fu's was slated to part be of the Kahler Hospitality Group's growing portfolio of franchise food spots including, Dunkin' Donuts and Freshens.

However, the signs came down and talk of Mama Fu's eventually faded. Albert Im, marketing manager for the Austin company, cleared up the situation in email this week.

"Mama Fu's and our franchise partner were looking forward to opening this year in the Mayo Clinic area. Unfortunately, due to unforeseen circumstances and logistical issues associated with the site, we have postponed plans to open in Rochester indefinitely until our next steps are identified," he wrote. "While we have every expectation that Rochester will be a fantastic market for Mama Fu's Asian House, we are unable to determine a time frame for our emergence into the community."

So, it may be a while longer until the local franchise partner opens a Mama Fu's in Rochester. However, work is progressing quickly on the Kahler Hospitality Group's second Freshens cafe. It will be located in the Marriott Subway in the former home of The Crate.

August 12, 2014

Bank breaks ground for new northwest Rochester branch

Green Bay, Wis.-based Associated Bank broke will break ground on Wednesday for its new 3,000-square-foot branch in northwest Rochester.

10581397_745970035444536_1595413071_nThe new building will replace the branch in the Hy-Vee North grocery on 37th Street Northwest, which closed on July 24. Associated's new site will be located at 1985 Commerce Drive N.W., which is in the Costco's commercial development at 19th Street and West Circle Drive. It will be near the 19th Street entrance to Costco.Associated Bank first filed plans for the branch in February.

EDITOR'S NOTE - Thanks once again to Josh Banks Photography for the pic.

If construction goes as planned, look for the new Associated branch to open in January. The Wisconsin bank has three other branches in Rochester.

The addition of this new branch re-confirms the growing commercial interest in that part of Rochester. Iowa-based West Bank is planning to build its own facility along West Circle Drive in 2015. Two Rochester-based banks, Home Federal Saving Bank and Think Mutual Bank, also have large branches in that area.

Associated's announcement about the new location stated that it will offer "an enhanced banking experience in a revitalized and spacious layout." That will include a full lobby with tellers, a drive-through window and staff to handle mortgages and investment services.

Associated Bank entered the Rochester area in 2004, when it acquired First Federal Capital Bank. First Federal was short-lived here. It picked up the holdings of the long-time Marquette Bank in 2002.

“We take pride in the relationships we have built in this community and we are thrilled to continue these relationships at our new location,” stated Tim Lau, Associated's head of community markets and executive vice president.

Re-locating the northwest branch is not the only Rochester move coming up for the bank.

New owners have acquired Associated Bank's downtown building at 206 South Broadway and the bank needs to move out by spring 2015. Executive Vice President David Stein previously stated that Associated is looking for "opportunities for a new downtown bank location."

Associated has more than 200 locations in Wisconsin, Minnesota and Illinois.

August 06, 2014

New northwest Rochester McDonald's to open next week

Courtesy Corp., which owns the six McDonald's restaurants in Rochester, plans to open its new northwest location on Aug. 14.

05082014newmcdonaldscostcoThe still under-construction McDonald's stands in front of the Costco warehouse store, facing West Circle Drive Northwest.

It will replace Courtesy Corp.'s long-time restaurant on the U.S. 52 North frontage road near 19th Street Northwest. That location closed earlier this week in preparation for the opening on the new restaurant.

When plans for the new restaurant were announced last year, Courtesy Corp. President Rick Lommen said the old McDonald's had about 65 employees on staff. He anticipated that number could grow to 80 or 90, when the new one opens.

The company spent $1.32 million to buy the land in the 108 acre commercial development, which is owned  the real estate development arm of the Kwik Trip convenience store chain.

Lommen explained that McDonald's thought the restauran05082014closingmcdonaldst would do much better in the rapidly growing area at the corner of West Circle Drive and 19th Street Northwest.

"I just believe that long-term that is going to be an outstanding development, and it will show significant growth for years to come," he said.

Conversely, the longtime location on the U.S. 52 Frontage Road lost much of its visibility and customer traffic when the highway was updated a few years ago.

Courtesy Corp. is not the only company that's banking on the growth in that northwest development that's exploding around Costco and a Kwik Trip station.

A 77-room Comfort Inn and Suites and a 109-room Staybridge Suites are both under construction near the new McDonald's. Discount grocer Aldi also recently announced its own plans to build a second Rochester store in the same area.

A St. Paul-based developer,TJL Development is working on plans for a 2,500-square-foot building to be occupied by a co-branded coffee and food business as well as a 4,000-square-foot store for a national retailer.

August 05, 2014

Remodel, new building on way for Eastwood Plaza

A major makeover plus a new retail building are on the way for a shopping center on a prominent southeast Rochester corner. 

EastwoodplazaAri Kolas is planning to build a 5,000-square-foot building next to the existing Eastwood Plaza shopping center at 1513 12 St. S.E. It will stand on the far southeast corner of the Eastwood lot near the Big Lots store.

If everything goes according to plan, HartCo Construction should start work on the project yet this month.

"I expect to have two to three tenants in there. One is signed and another one is really close. It'll be mostly retail," said Kolas, who is an owner of Eastwood Plaza under the name of Athena 2004 LLC. He is also an owner of Rochester-based Apollo Wine & Spirits, which has one of its six Rochester stores based in Eastwood Plaza. It also has a franchised store in the Shoppes on Maine development in the southwest quadrant and a store in Austin.

This Eastwood project is one that Kolas has been thinking about for a long time.

I always wanted to do something on the outlot. I was just waiting for the proper opportunity to do it. The climate is good for it now with the growth of Rochester," he said. "It's been in the back of my head forever. It's got awesome visibility."

In addition to adding the new building, Kolas plans to do a complete remodel and upgrade of the existing 44-year-old center, which houses tenants including El Carambas, China Star and Subway. Both projects represent a total investment of more than $500,000, he says.

Kolas is enthusiastic about the intersection of 12th Street Southeast and Marion Road, which Athena 2004 bought for $1.6 million in 2004.

"It's a great corner that people forget about. It really is a great neighborhood," he said.