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46 posts categorized "Demolition"

November 18, 2015

After demolition, what next for Ronald McDonald House project?

Rochester's Ronald McDonald House plans to demolish two apartment buildings on Second Street Southwest to make way for a possible future project.

Demolition permits were filed for the apartment buildings at 806 and 812 Second St. SW, just east of the Ronald McDonald House at 850 Second St. SW. The nonprofit McDonald House acquired the buildings in January in conjunction with Mayo Clinic, which is partnering on the deal.

564c8711dd9b4.imageThe 35-year-old Ronald McDonald House provides housing for children and their families who are in Rochester for medical treatment at Mayo Clinic. It can house up to 42 families at one time. In 2014, it served 795 families, but had to turn 1,071 families away.

The facility's last expansion was 11 years ago.

"Our Board of Trustees is committed to serving more families," according to Marit Williams, the Ronald McDonald House's communications and community relations coordinator. However, she would not say if the demolition will make way for a future expansion.

"We are committed to serving more families, and in order to allow us to continue focusing on the best possible way to do that, we do not have any expansion-specific information to share publicly at this time," Williams wrote in response to inquiries. "The land is intended to help us continue providing a home-away-from-home and caring support for more families in the future. There are no commercial development plans."

Whatever the future holds, the next step in the project is to knock down the two 1960s brick apartment complexes. Williams confirmed both buildings now are empty of tenants.

"We do not have a firm date for the demolition, but we expect this activity to happen in early winter," she wrote in a recent email.

Both buildings were officially acquired on Jan. 30. The 812 Second Street Street property was purchased by the Ronald McDonald House in a pair of separate deals for $825,500 and $137,500. 

A similar series of transactions occurred for the 806 Second Street building. The Ronald McDonald House paid the estate of John T. Oliphant estate $890,000 on Jan. 2, 2014.

Mayo Clinic then paid the Ronald McDonald House $1 million for both properties on Jan. 30 of this year, according to Olmsted County Property Record.Both the Ronald McDonald House and Mayo Clinic are listed as owners of both apartment complexes.

October 08, 2015

Will sale of North Broadway building attract developers?

The sale of a building on Broadway Avenue North clears the way for future development on a prominent block.

08102015MLT1Mike Pruett, co-owner of MLT Groupwhich is in the building, said he sold the 140-year-old brick structure that he owns with his wife, Dawn, at 411 Broadway Ave. N, on Wednesday. Real estate investor Les Nelsonof Clear Lake, Iowa, purchased it for $600,000, Pruett said.

"I'm happy with the price I got," he said. The Pruetts bought the building for $235,000 in 2003.

Nelson now owns most of that side of the 400 block of Broadway. He recently demolished two nearby empty buildings at 401 Broadway Ave. N and 407 Broadway Ave. N to make the area more attractive for developers.  08102015MLT2

After the demolitions, the Pruetts' building stood alone in the middle of the block. Amid the hype of the Destination Medical Center initiative, Rochester real estate prices have skyrocketed in recent months. Pruett's location made his building more valuable, since it is an obstacle that could keep developers away from the block. 

Besides housing the Pruetts' businesses, MLT Group and MLT Video, the building also has four apartments. All four currently have tenants. However, one has a lease until Dec. 31, while the three others are month-to-month.

After the tenant's lease ends in December, Pruett expects Nelson to knock down the building.

He plans to move MLT Group, which he owns with partner Ted St. Mane, and MLT Video to a business condo in the Plaza 14 West center at 4481 North Frontage Road. Pruett hopes to build out the unfinished 11,090-square-foot space and move the businesses at the end of November.

"It will be nice to have a change and a newer facility, though it's a little sad," he said.

Pruett said the new offices should work out well for his team of 10 to 12 employees, because it will have more usable space than the current building.  

July 17, 2015

Downtown tower's construction waiting on financing

Construction on a 23-story downtown Rochester tower has yet to begin because the developer has not finalized financing for the project, according to a city official.

In May, the City of Rochester pledged $6.5 million in assistance to developer Gus Chafoulias to build his long-planned $140 million Broadway at Center tower. Chafoulias, with limited assistance from his son Andrew Chafoulias and Titan Development and Investments, has been working on different versions of this project since 2007.

TowerBroadway 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 Destination Medical Center local contributions and credited toward the city's $128 million commitment.

The tower is to be built on South Broadway and East Center Street, just north of Broadway Residence and Suites by BridgeStreet. Since early last year, buildings that previously housed CJ's Midtown Lounge, Ginny's Fine Fabrics and Jakobson Management Co. have sat empty on the site. When the tenants were asked to vacate, Titan officials estimated that the buildings would be demolished during the summer of 2014.

When approving the project, the city agreed to work in conjunction with the developers to build an attached public parking ramp. But city officials said they have to wait on final paperwork from Titan Development before construction can start.

"Chafoulias indicated a while back that they are still reviewing some of their financing options for the project, so they have not provided us with that signed development agreement as of yet. I'm anticipating it should be fairly soon," City Redevelopment Director Terry Spaeth said. "I know they are looking at a couple different financing options."

The development agreement includes a number of provisions about vacating an alley, conveying properties and approving easements.

Spaeth said it's estimated it will take 22 months, from start to finish, to build Broadway at Center. The city's portion of the project is expected to take nine to 12 months to complete. The plan is for the city work to be completed to coincide with the opening of the overall project.

"Once they get going, I suspect things will get moving pretty rapidly," he said. "The first step is to get the development assistance agreement signed."

When asked about the status of the Broadway at Center project, Titan Marketing and Communications Manager Sheila Thoma said there wasn't much to report.

"I do not have a new/significant update. The project is still on course. With a major project like this, there are a lot of moving parts and it takes time to solidify all details," she wrote in response to inquiries about when the CJ's and Ginny's Fine Fabrics buildings would be demolished.

On May 4, the city approved a development assistance agreement with Titan about Broadway at Center. The Rochester Economic Development Authority, a board comprised of the seven Rochester City Council members, approved $6.5 million in tax increment financing and land write-downs. The EDA had put its development assistance agreement on hold until the Destination Medical Center Corp. board of directors named Broadway at Center as a DMC project. That happened on April 30.

Broadway at Center is reminiscent of a previous project called Time Square that Gus Chafoulias proposed for that block 15 years ago. When Mayo Clinic opted not to lease office space in the $200 million project, Chafoulias withdrew it in 2000.

"This is the single biggest disappointment of my career," Chafoulias said after making the announcement. "It never feels good when you fail. It didn't work out, but it's not the end of the world."

After Chafoulias withdrew, Dubai-based investors stepped in and built a 26-story tower, the tallest building in Rochester, on that corner. That tower, now known as Broadway Residence and Suites, stands next door to the proposed Broadway at Center project.


March 31, 2015

Newt's South ready to start cooking

Editor's note - Tip of the hat to Sean Baker of the Med City Beat for reporting on this opening first. Keep up the good work.


The new Newt's South will open its doors at 11 a.m. Wednesday, which brings the Currie brothers tally of Rochester restaurants to nine.

Restaurateurs David and Mark Currie built their latest restaurant/bar in front of Rochester's Crossroads Shopping Center.

It's serving the same full Newt's menu that's served at the original downtown Newt's, Newt's North and Newt's Express. However, this new Newt's will have 20 beers oNewtssouthatcrossroadsn tap, more than the other locations. Plus it will not serve breakfast, like Newt's North does.

The Curries have a team of about 30 staffing the new Crossroads location. That's brings the grand total of their Rochester employees to 172. That includes the four Newt's, two City Markets, City Cafe, 300 First and the Redwood Room.

"People seem really excited about it. We've had a steady stream of people coming up to the doors, since we put the signs up," said David Currie.

They built this new Newt's on the former location of Tasos Psomas' Pannekoeken Huis restaurant between the Andy's Liquor store and Home Federal Savings Bank.

Tom Graf bought Pannekoeken and demolished it in 2011 with the intention to build a second Buffalo Wild Wings. However, a legal battle with the Crossroads Shopping Center over parked quashed that plan. That's when the Curries came into the picture.

This is the first restaurant they've built from the ground up, though it looks a lot like the unusual, angular Wallins West building that houses Newt's North. That Newt's opened at 5231 U.S. 52 Frontage Road NW in 2011.

"That was very purposeful," said David Currie on Tuesday. "It is our intention to create brand standard look."

While haven't decided anything yet, the brothers are mulling over the possibility of the opening a Newt's outside of Rochester. Of course, they still have plenty on their plates in Rochester at the moment.

"It keeps us busy," he said.

December 08, 2014

Ex-Hardee's/Indian eatery flattened

The former Hardee's/Indian restaurant at 7 12 St. S 08122014exhardees2.E., that's at Rochester's corner of U.S. 14 and South U.S. 63, is being scraped away today.

No sure yet what the plans, if any, are for the site.

That 31-year-old business was where one of Rochester's Hardee's fast food places operated. In Dec. 2001, that restaurant and two more in Rochester plus one in Stewartville abruptly closed their doors.

The franchise owner went bankrupt in 2000 and DORO InHardeesc. of Eau Claire, Wis. was named as reciever. Eventually, they had to close the doors.

It was later used as Natraj's India Kitchen/ C08122014exhardees1uisine of India for a few years.

It has sat empty and moldered for quite a while since the Indian eatery moved out.

Now the site is cleared for a new future, whatever that may be.

Hopefully, that will include better access.

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.


Here's an early demo pic from July.


November 17, 2014

Buckeye Liquor to stay in downtown Rochester

Much like peanut butter and chocolate getting together, a downtown Rochester liquor store is moving in next to a pizza place in early 2015.

11172014buckeyeliquorRobert Satterwhite, who owns Buckeye Liquor with his wife Diane Satterwhite, plans to scoot the store a few dozen yards from its spot on the corner of Third Avenue Southeast and Fourth Street to the Domino's Pizza building at 438 Third Ave. S.E.

The shift is expected to happen in February or March 2015.

"We're pretty excited to be moving next to Domino's. Who doesn't like a beer or a nice wine with pizza?", said Satterwhite.

The coming development of a $15 million, 110-unit apartment complex on that corner is spurring the move of the 49-year-old liquor store. 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. The Satterwhites now lease their corner building from developer Nate Stencil and his partner, Sean A. Kaufhold.

While there is not a deadline for Buckeye to move, it's clear that the current building will be demolished to make way for the coming project.

"They are not pushing out us or anything. We just wanted to make sure to secure another space in downtown as soon as we could," he s11172014dominoson3rdaid.

Satterwhite and two employees will have more room once they move in next to Domino's. The new 1,800-square-foot space is about 500 feet larger than the original Buckeye store, which Stanley Mohn, built in 1965. An international grocer was the last tenant next to Domino's.

Marty Gritz, who owns Domino's as well as the building, renovated it in 2013. He re-divided the building into two equal parts to give his dough makers an additional 600 square feet

The good news for Buckeye is that Domino's location is often the busiest of  the 120 Domino's franchises in the Midwest region.

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.

October 23, 2014

Former Flamingo roost to be razed

While Flamingo Bingo is rolling along in its new home in Rochester's Elks Lodge, it soon will be game over for its former home.

The empty building at 2828 U.S. 52 North is slated for demolition by its owner, the Twin Cities-based Luther Automotive Group. Luther filed for a demolition permit this week, though the company has no immediate plans for the property.

10232914flamingobingo"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. "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. Soon after, McGinty said, "We're working on possible plans. We're just happy to be in Rochester. We're excited to be part of the vibrancy."

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.

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.