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31 posts categorized "Demolition"

April 01, 2014

Work on new Roch, Scheels store in high gear

The transformation and expansion of the former Sears store into a new Scheels All Sports complex at Rochester is moving at a good clip.

The first pic is from this morning. The 01042014scheelsatapachesecond one is from March 19.

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's expected to employ between 120 to 180.

Sears closed in January. The development for the expanded 19032014scheelsatapachestore 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.

Scheelsmap1"It will still have a fudge and coffee bar and a mini bowling alley. It will carry fashion clothing and shoes for women and men as well as athletic clothing and shoes for men and women. That's all in addition to our the entire hard line of sporting goods," said Scheels' Jason Loney.

This will be the sporting goods chain's 25th store and its fifth in Minnesota.

March 31, 2014

Lots of construction cooking at Big Blue

Lots of construction is in the works on IBM's sprawling Rochester campus.

IBM buildinglogoSome final work still is underway in buildings 333 and 002 for Charter Communications. The cable-television provider is leasing those buildings to house an estimated $3.5 million expansion of Charter Business, its business-to-business division.

Charter says the expansion will add more than 140 jobs to its Rochester operations. The company is planning a ribbon-cutting ceremony for April 15 in Building 002 on the IBM campus.

While neither Charter nor IBM are discussing it yet, a permit also has been submitted to the city planning department for interior demolition of IBM's Building 005. Charter-business-logo

The permit describes the demolition as preparing the building for "Future Charter Business."  The value of this project is listed as $3.25 million.

Without information from Charter or IBM, it's unclear what this permit signifies. However, Building 005 is connected to Building 002, so it's possible Charter needs more space for its expansion and it possibly is leasing a third building from IBM.

HgstLook for more details about this project in the near future.

Meanwhile, HGST has construction of its own cooking in one of the buildings it leases from IBM. Western Digital's HGST, formerly owned by Hitachi, is working on a Crossfit workout center and locker room. That project is valued at $325,900.

Big Blue also has some construction in the works on its Rochester campus.

A permit has been filed for an "acoustic chamber upgrade" valued at $195,000 in IBM's Building 020.

March 27, 2014

New 24 floor downtown tower takes first step

A proposed 24-story mixed-used complex that would be the second tallest building in Rochester took its first official step forward on Wednesday night.

Broadwayatcenter2The City Planning and Zoning Commission voted to support Titan Development's preliminary plan for the Broadway at Center project. It's slated to be built on South Broadway and East Center Street, just north of Broadway Residence and Suites by BridgeStreet.

"This is a unique project," said designer Hal Henderson of HGA, Inc. to the commission members. "It will be one of the top-quality buildings in downtown."

The 411,000-square-foot Broadway at Center will include retail and restaurants, a 184-unit Embassy Suites Hotel on 11 floors, 84 apartments on six floors and underground parking. It also will feature a landscaped terrace on the third floor.

Broadwayatcenter3"It adds a significant amount of needed retail to the downtown," said Henderson.

Titan anticipates the project will fit with the goals of the Destination Medical Center initiative and will be able to "leverage" city funds to help finance it, Henderson said.

The preliminary plan for the "incentive development" will move on to the Rochester City Council for its approval. Titan, which is spearheaded by Rochester developers Andy and Gus Chafoulias, then will be cleared to fine-tune the project and bring a final version of the plan back to the zoning commission and City Council for the official green light to move ahead.

While some planning commission members, such as Lindsey Meek and Wade Goodenberger, had suggestions for minor improvements, the group overall was supportive of the preliminary plan.

Broadwayatcenter1"Redevelopment is long overdue on that corner," said commission member Nick Campion.

Some details still need to be finalized, including working out a plan with the city for a private-public parking ramp, vacating the alley that runs behind the current buildings and hammering out the details of the complex's connections to the skyway system.

Negotiations are underway with city staff about the proposed parking ramp, which will be connected to Broadway at Center by skyway, said Henderson.

"Plans for the parking structure are lagging behind," he acknowledged. "It's very complicated."

An application to vacate a portion of the alley was filed with the city recently. Commission member Michael Walters voiced mild concern about approving the preliminary plan before the alley issue was resolved. In the end, he was satisfied with Titan's explanations and backed the plan contingent on the eventual finalizing of the alley issue.

"Actually, we're only asking to vacate a portion of the alley. … We will leave an alley there. It will just be re-positioned," said Henderson.

The proposal calls for the alley to be "bridged" by the parking structure. It will remain open for use by the public.

Titan's working out a plan with Broadway Residence and Suites to establish a skyway link to the south between the two buildings. The project proposal states that Broadway at Center will have skyway connections in all four directions. Beside the south skyway, it also will be able to connect west across Broadway, east to the parking ramp and north "for future development."

Assuming everything goes according to plan, demolition of the buildings that house CJ's Midtown Lounge, Ginny's Fine Fabrics and Jakobson Management Co. could happen this summer, with construction beginning late summer or early fall, said Mark Steege, the chief financial officer of Titan Ventures, the parent company for Titan Development.

The tenants are expected to move out in the next couple of weeks, he said.

Steege attended the meeting with Gus Chafoulias, the chairman of the board for Titan. Royal Management President Imad A Baker of Washington, D.C., was also at the meeting, Royal Management developed the 26-story Broadway Residence and Suites in 2004.

March 10, 2014

Downtown building down to make way for new complex

03102014cobrowndemoIt looks like the days of the former C.O Brown downtown building at 300 S. Broadway have finally come to an end.

The long-time Rochester insurance firm moved out of downtown in 2008 as developer Joe Weis began construction of the adjacent City Centre complex.

02282014cobrowndemoNow developer Andy Chafoulias is working on a plan to build a six-story building called The Plaza on Historic 3rd on that site. Of course, that means the bell is tolling for the long-empty shell of the ex-insurance office.

Here's a little reverse retrospective on that site. The photos go back in time, though the final image is the rendering of what The Plaza is slated to look like.

6a00d83451cc8269e201a73d746c7c970d-800wi-2 Titan Development and Investments, led by father-and-son developers Gus and Andy Chafoulias, have been working on plans for the project for quite a while.

Those plans have been evolving during the past few months, particularly after news broke that the nearby seven-story Associated Bank Building will be 070208citycentrejk_2demolished and re-developed. That move means many downtown commercial tenants are being displaced.


“Once we made our initial announcement last year, the interest in the project continued to grow well beyond our expectations,” Titan CEO Andy Chafoulias said. "That interest materialized into an opportunity to create a project that we feel will be a prominent piece of downtown Rochester and Historic Third Street for many years to come.”
Co_brown
Two tenants moving out of the Associated Bank Building — Dunlap & Seeger and MedCity Dental — already have signed up for space in The Plaza. Titan Development plans to move its offices there from the Minnesota BioBusiness Center on First Avenue Southwest. Those are the only confirmed tenants so far.

"We do expect by end of month to have it 100 percent leased," said John Beltz, Titan's vice president of brand management and revenue development.

Citycenter-H3-Plaza-on-Historic-3rd-rendering-1-600x330While it has seen significant changes, the latest version of the Titan project still includes the restaurant on the street level and the roof-top lounge/bar that were in the original vision. Restaurateurs Pat Woodring and Scott Foster, the minds behind Chester's Kitchen & Bar and Pescara, are still slated to create, own and manage those operations. Woodring and Foster have worked with the Chafoulias family for many years.

In September, the Rochester Economic Development Agency approved a special redevelopment tax-increment-financing district to raise $300,000 to cover asbestos removal and demolition of the former C.O. Brown building.

The project was earmarked by the Rochester City Council in September to be included in the $2 billion in private investment promised to the state as part of Mayo Clinic's Destination Medical Center initiative.

February 10, 2014

City Centre plans take shape

Titan Development and Investments officials, led by father-and-son developers Gus and Andy Chafoulias, have finalized plans for a six-story commercial complex with a roof-top lounge on top to be built in downtown Rochester.

CitycentresiteWhen buzz about the project began in May, it was described by Andy Chafoulias as a four-story building. However, Mayo Clinic's Destination Medical Center initiative plus news that the tenants in the nearby seven-story Associated Bank Building are being displaced spurred the developers to change their plans.

The project, now called City Centre One, was earmarked by the Rochester City Council in September to be included in the $2 billion in private investment promised to the state as part of DMC.

A special redevelopment tax-increment-financing district was approved by the city to raise $300,000 to cover the asbestos removal and demolition of the former C.O. Brown building at 300 S. Broadway. Once the prep work is complete, the site will be ready for demolition crews to clear away the old building to make way for the City Centre One.

Titan submitted a development plan to the city last week, which is the first detailed description of the complex since it was first announced.

Plans by Rochester's CRW Architecture + Design Group show a 34,371-square-foot, seven-story complex.

The street level of the building is expected to feature an Italian restaurant, created and run by restaurateurs Pat Woodring and Scott Foster. Woodring and Foster are the minds behind Chester's Kitchen & Bar and Pescara. That floor will be the largest at 5,144 square feet in size.

The second through sixth floors are all expected to house commercial office tenants similar those that now lease space in the Associated Bank Building. Each of those floors are slated to be 5,121 square feet in size.

Topping the structure is a 3,622-square-foot rooftop lounge, which also will be a creation  of Woodring and Foster.

February 05, 2014

Mayo Clinic still fishing for plans for ex-Red Lobster space

Mayo Clinic has strapped on its bib and is taking a hammer to its Lobster.

Mayo has crews doing interior demolition in the former Red Lobster space at Second Street Southwest and Broadway in downtown Rochester. However, Mayo Clinic says that Exredlobster there's no plan behind the work being done in former 187-seat seafood restaurant.

"The future use of that space is still not decided," said Kelley Luckstein, Mayo Clinic public affairs.

The 11,880-square-foot, street-level space at 200 First St. S.W. is in the 60-year-old Rosa Parks Pavilion. Mayo Clinic has owned it since 1997.

After 25 years of leasing the space, Red Lobster moved out in 2011 to take over a former stand-alone restaurant by the Apache Mall. At that time, Mayo Clinic officials said they were considering options for the prominent downtown corner.

They were still pondering in 2012, when Mayo sent in workers to remove the carpet, paneling, ceiling tiles and bar left behind by the restaurant.

That work permit was very detailed in describing the purpose." Just removing items for clean-up to get rid of fish odor," it said. "Future tenant not defined at this time."

This latest permit, filed with the city last week, is not as colorful nor specific. However, it did estimate the value of the interior demolition job at $65,000.

That's a lot of clams for work on a space that has been drifting along without direction for three years.

It seems that Mayo Clinic still is fishing for a definition for that phrase from the 2012 permit: "Future tenant."

January 21, 2014

Apache Mall applies to develop Scheels store, new restaurant

Here's some from an article I have in today's paper about Scheels, Sears, the Apache Mall plus plans for a new stand-alone restaurant by the water tower in front of the mall.

The full article will be on www.postbulletin.com and, of course, in print.

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The hole left by the departure of Sears from Apache Mall appears likely to be filled by a Scheels All Sports store.

Plans to expand the mall's anchor spot to make way for the popular sporting retailer were submitted to the Rochester-Olmsted Planning Department last week. The plans also call for construction of a stand-alone restaurant nearby.

Scheelsmap1The plans show the now-closed two-story Sears store being partially demolished and expanded to 149,000 square feet for Scheels. Construction could close the mall parking lot roadway in front of the store, which would require a temporary road.

The development proposal also includes a new 9,000-square-foot restaurant building on the north side of the mall roadway near the Scheels project. The proposed building would be on the east side of the city water tower. While it's labeled as a restaurant, no specific name appears in the documents.
Scheelsmap2
Officials from the Apache Mall declined to comment on either the Scheels project or the new restaurant. On Friday, Jason Loney, Scheels' vice president of store development, said a final agreement had not been finalized between the North Dakota retailer and the mall. It's not unusual for participants in a development deal to delay signing until all official approvals are obtained

November 13, 2013

1st DMC project applies for downtown Rochester demolition

Titan Ventures, which is owned by Rochester's Chafoulias family, plans to build a multi-use entertainment complex on the site of the long empty C.O. Brown building on South Broadway in the heart of downtown.

This is the project that has been earmarked as the first beneficiary of funding via the Destination Medical Center development pipeline. A special redevelopment tax-increment-financing district has already been approved to raise $300,000 to cover Oldcobrownthe asbestos removal and demolition of the building at 300 S. Broadway.

I assume the asbestos has been yanked out, because City Center I LLC submitted an application Tuesday for the demolition of the building down to the footings and foundation.

Now it's just a question of when the demo work will start. It was pretty quiet on site today. Cobrowndemopermit

There's also the question of exactly what will be built.

In September, Mark Steege, chief financial officer for Titan Ventures, told the Rochester City Council that there has been a lot of interest in the project. In May, Titan CEO Andy Chafoulias initially announced he planned to build a three-story building with an Italian restaurant, rooftop bar and a jazz/blues basement lounge.
 
"There is a significant possibility that (the project) could grow by three to four floors just due to the interest we've had," Steege said back in September.

The last I heard the details had still not been worked out, though that may have changed.

I'm checking with Titan about those assorted loose ends.

Speaking of details, here's more on the funding for the financial wonks out there.

The pay-as-you-go TIF is described by the city's senior administrative analyst Terry Spaeth as essentially reimbursing the annual taxes the developers will pay, once the project is complete. He estimates the earliest Titan could see a payment is 2016

October 08, 2013

IBM leases Rochester buildings to Charter

IBM is leasing two buildings on its Rochester campus to the cable-television provider Charter Communications.

Both companies confirmed Monday that a lease agreement has been signed. After some retrofitting, Charter is slated to move into the 333 and 002 Buildings on the IBM campus along U.S. 52 North.

"We will maintain our current locations in the Rochester community, located at 3993 Heritage Place N.W., as well as the local call center, which is located at 5720 Bandel Road N.W.," she said.

IBM333She declined to provide further details.

A permit for interior demolition work  in the 002 Building, filed by Benike Construction of Rochester, specified that the work is being done for a "future Charter Business" office. Charter Business is the division of the cable company that sells Internet and telephone services directly to businesses.

The 002 Building was the home of IBM's blood donation center on the main level with offices on the second.

IBM confirmed the lease agreement but declined to provide other details. Spokeswoman Mary Welder did point out that leasing unused space on the campus was not something new for Big Blue.

Hitachi Global Storage Technologies has leased space there since IBM sold its hard-disk drive unit to Hitachi in 2003 for $2.05 billion. It's located on the west end of IBM's campus.

The 333 Building is located farther west than the 114 Building. It's near the power plant and utilities area. That two-story building is primarily an open warehouse/industrial space with a mezzaine level.

IBM's sprawling presence in Rochester has shrunk in recent years due to a series of layoffs and a shift of its local manufacturing operations overseas.

The technology giant closely guards the secret of how many employees work here or at any other individual site. During much of its history in Rochester, IBM would report its local workforce numbers at the end of every year. The last annual IBM workforce count was on Dec. 31, 2008, when the company reported that it had 4,200 employees in Rochester. Unofficial estimates place today's employment at 3,000 or less.

In April,  IBM moved its final employees out of the last 100,000-square-foot space it had leased in the "White Buildings", also known as the 41st Street Professional Campus. The 435,000-square-foot 41st Street campus, which is near IBM's main site, was originally built to house Big Blue's employees, but they were no longer needed as IBM's employee count shrunk.

September 25, 2013

Bank building sells in downtown Rochester

Here's some from an article I have in today's edition about yet another major downtown Rochester real estate deal.

------

The rush for developers to stake out a claim in downtown Rochester continues this month, as the seven-story Associated Bank building was sold on Sept. 16 after months of speculation.

As of Oct. 1, all tenants of the building at 206 S. Broadway are to make out rent payments to Bloom International Realty, according to a letter from Oxford Property Management. Oxford, which is based in Rochester, will manage the building for the new owners.

52430f56ccab8.imageA series of major development projects have been launched since Mayo Clinic's Destination Medical Center initiative to invest in Rochester's infrastructure, Mayo Clinic and the surrounding business community was launched earlier this year.

"We're not surprised. DMC represents an exciting new chapter for Rochester, which the marketplace is reacting to," said Rochester Area Chamber of Commerce President John Wade.

The tenants, which include the bank, the Dunlap & Seeger law firm, the O'Brien & Wolf law firm, Minnesota Public Radio and others, were told they need to vacate the building in 2015. Many tenants said off the record that they've heard the new owners will demolish the building to make make way for a new development, possibly a high-end hotel.

Mark Dixon, of Oxford Property Management, exchanged phone messages with the Post-Bulletin on Tuesday but could not connect for an interview. Dixon was meeting with a visiting international group, presumably the new owners of the Associated building.

Bloom is a foreign company that incorporated in Minnesota last week, according to state records. Some Rochester business leaders have said off the record that the new owners are Bloom Properties LLC, which is based in Abu Dhabi, United Arab Emirates. If the Abu Dhabi firm is the new owner, it would raise the recent real estate activity to a new level. Bloom signed a deal with another firm this week to build a $4.5 billion residential project in Baghdad to house 150,000 people.

"The new owners have not only made an investment in downtown but want to be partners with our community going forward," said Wade, who has met with the new owners.

While he did not identify them, Wade said this is the first local investment by this group. However, they have had "a long relationship" with the city and are very familiar with Rochester.