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76 posts categorized "Destination Medical Center news"

October 28, 2015

New Roch. substation planned for Epic, Mayo Clinic growth

Mayo Clinic's partnership with Epic Systems, the largest electronic medical records firm in the United States, is driving the construction of a new $6.1 million Rochester Public Utilities substation.

Epic_Systems_112109_SignVerona, Wis.-based Epic Systems has been negotiating with RPU since June about the project. Epic says it needs more power capacity in the area to support future growth of the Mayo Clinic Data Center at 4710 West Circle Drive. The new Douglas Trail substation is slated to be built by the data center on land currently owned by Mayo Clinic.

The RPU board approved a "memorandum of understanding" about the project with Epic at its Tuesday night meeting. An escrow account already has been set up to fund project.

The memorandum states, "Due to the planned transfer of selected Mayo Data Center assets to Epic, Epic requests incremental electrical capability and capacity, needed to accommodate projected business growth in forward years…"
Epic has agreed to pay for the majority of the $6.1 million project, with RPU contributing $1.016 million for additional features that Epic doesn't need. The agreement also allows for Epic to apply  Mayo4710technologyparkfor up to $2.03 million in rebates over 10 years. The goal is to have the new substation up and running at least by April 1, 2017.

Rochester attorney Mark Utz spoke to the board as a representative of Epic. He said the deal  "Provides capacity not just for Epic, but a tremendous opportunity for the city of Rochester … to have a third substation in an incredible quadrant for Rochester. This is a win/win for the community, for RPU and for Epic."

Bruce Richards, Epic's director of facilities and engineering, assured the board his company is serious about coming to Rochester.

"This is a long-term situation for us. We're bringing in quite a few people to town," he said. "We'll start out with 80 to 90 people to the data center to work with Mayo Clinic."

Richards told the RPU board the additional capacity is needed for the potential that the current data center could grow to three times its current size.

Mayo Clinic built the $33.7 million, 60,000-square-foot computer support center in 2012. The data center was built to support all three of Mayo Clinic's campuses — Rochester, Jacksonville, Fla., and Scottsdale, Ariz.

"Epic is expected to take title of the property nominally in December 2015, with site grading to begin in spring 2016, according to the RPU/Epic agreement. The agreement also states that, "It is contemplated that the City of Rochester, for the benefit of RPU, will acquire from Epic the title of the real estate where the substation and related infrastructure will be located.

Richards did not elaborate on what Epic plans to do at Mayo Data Center, though remote hosting medical records is a possibility. In recent years, Epic built a massive data center in Verona, Wis. to offer remote medical record hosting for its clients.

6a00d83451cc8269e201b7c791bc82970b-800wiEpic and Mayo Clinic began working together early this year, when Mayo chose Epic to handle Mayo Clinic's electronic medical records. The relationship is developing into a close collaboration. Mayo's Chief Administration Officer Jeff Bolton has said that Epic has shown "a strong interest" in being part of the planned Discovery Square development in downtown Rochester. Discovery Square is part of Mayo Clinic's Destination Medical Center initiative.

Epic has about 8,000 employees and had $1.8 billion in revenues in 2014. Epic's software already is used by about 350 health-care organizations that care for 54 percent of U.S. patients.

Mayo Clinic is not Epic's only major partner in northwest Rochester. In May, IBM Watson Health, the health care unit of IBM, announced it has begun working with Epic as well as Mayo Clinic to add the Watson' super computer's cognitive capabilities to electronic health records. It's not clear if IBM is involved in the West Circle Drive data center project.

October 26, 2015

What's Mayo Clinic's plan for its new technology park?

Mayo4710technologyparkMayo Clinic is moving dirt and dividing up some open land by its Rochester data center at 4710 West Circle Dr. N.W.

However, details are sparse about the future of the site.

Mayo Clinic has submitted plans to the city for a "4710 Technology Park," a 22.5 acre tusk-shaped chunk of land north of the 4710 data center building.

The permit says:

 Final Plat #R2015-030PLAT to be known as 4710 Technology Park. The Plat proposes to subdivide three lots and one block for commercial development. The property is located at 4710 West Circle Dr NW.

I started asking Mayo Clinic about this project on Sept. 10. Mayo Clinic has not responded yet.
While no building is drawn on the plat, there are a series of driveways/st 10262015mayo4710techparkreets that curve around a space on Plot 2, that would seem to be designed to provide access to some sort of facility.
Mayo Clinic has certainly shown a lot of interest in that northwest area of the Med City for the past several years.
In 2000, it purchased a facility that Western Digital built at 4001 41st St. N.W.That became the Mayo Support Center, which houses Mayo Clinic's Dept. of Defense Medical Research Office spearheaded by Dr. Barry K. Gilbert.
In 2004, it bought a nearby complex at 3050 Superior Drive from Celestica. That eventually became the Superior Drive Support Center, which houses Mayo Medical Labs.
Mayo Clinic then built the 4710 Building, a data center, in 2012. It stands just north of the Mayo Support Center.
And now it is carving out a 4710 Technology Park by the 4710 Building.
In July, Mayo Clinic bought a nearby former mail processing center at 3939 Valleyhigh Drive. No word yet on how that will be used, though there is speculation that it could become a commercial laundry.


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.  

October 07, 2015

The 5 top Rochester real estate sales in 2015 so far

• $15 million - Maplewood Square sold on Sept. 29.

Sold_sign• $10 millionMiracle Mile shopping center sold on May 15.

• $7.2 million - The Hampton Inn at 1755 S. Broadway sold on Feb. 6.

• $5.4 million - Former Menards store at 5150 U.S. 52 North sold on March 17.

• $4.5 million - Prosthetic Laboratories center at 121 23 Ave. S.W. sold on Jan. 30. 

October 06, 2015

Rochester 'Who's Who' breaks ground for new bank

A "Who's Who" of Rochester used golden shovels to toss scoops of dirt Monday to officially launch the construction of a new $7 million bank complex.

While construction crews have already dug a huge hole for West Bank's new Rochester headquarters, the Iowa-based bank bought out its leadership team and its well-known local community board members for a groundbreaking ceremony.

05102015westbankgroundbreakingThe bank has operated a branch office in Rochester, since 2013. The new two-story, 15,000-square-foot complex is completed in late summer to early fall of 2016. It will stand on the hill overlooking West Circle Drive Northwest, next to Rooster's Bar & Grill and across from McDonald's. The bank expects to have a team of about 12 employees to staff the new location.

"This bank is different. We're not all things to all people. This is a community bank focused on business," West Bank CEO Dave Nelson.

Despite being a 122-year-old Iowa bank, West Bank has deep roots in Rochester. Nelson was the president of Wells-Fargo Rochester for many years, before he took the reins of West Bank in 2010. He has recruited many of his former co-workers to staff West Bank's Rochester location.

"We know Rochester. We have experienced bankers who know how to work with businesses," he said. "As a community bank, we make local decisions. We're what businesses are looking for - predictable, dependable and accessible."

In addition to the staff, Nelson has recruited what he calls "a Who's Who" list of Rochester's business leaders to serve on West Bank's local community board. The board includes Gus Chafoulias, Joe Powers, Pat Deutsch, Sandy Keith, Dave Pederson Jim McPeak Sr., Hal Henderson, Pete Schuller, Ed Stanley, Tim Weir, Greg Groves, Charlie Kuehn, Dick Kuehn and Norb Harrington.

"It really is an endorsement of West Bank to have them all on the board," said Nelson. 

It focus on business banking means the new building with not look like most bank branches. While it will have a drive-through, it will not have many teller lines for customers. The West Bank building will have a large roof-top plaza for events as well as a large conference center for meeting.

"It is unlike any other bank in Rochester," said local architect Hal Henderson of HGA. 

Builder Pete Schuller of AB Systems pointed out that the site allows for extensive landscaping.

"It will be like a new park here. It's a great addition to Rochester," he said.

Rochester has seen many new financial institutions - Bremer Bank, Alta Credit Union, Manufacturers Bank & Trust Co. and F&M Community Bank - come into the market in recent years. Driving much of that interest has been Mayo Clinic's Destination Medical Center initiative. However, Nelson says that's not the case with West Bank.

"DMC is not why we came to Rochester. We came because Rochester deserves a good community bank," he said.

October 01, 2015

A Mayo Clinic linked firm working with DMC planner to develop new Madison biosciences hub

A firm with deep ties to Mayo Clinic is making a move to anchor a downtown Madison, Wis., biosciences hub with help from the development manager of Rochester's Destination Medical Center initiative.

Exact Sciences Corp. licensed technology from Mayo Clinic in 2009 and 2012 for Cologuard, a stool-based DNA test for colorectal cancer. The test is based on research by Mayo Clinic's Dr. David A. Ahlquist and his laboratory.

LogoOriginally based in Boston, city officials at one point hoped Exact would move to Rochester. However, Madison gave the company $1 million to move its headquarters there in 2009.

Since then, the company has flourished, and now it's planning to build a new $200 million, 250,000-square-foot headquarters in downtown Madison with $46.7 million in financial aid from the city.The Madison City Council recently OKed the deal, which requires that Exact will have 400 employees in the building by 2019.

The developer of the project is JDS Development LLC, which is a joint venture between Hammes Co. and Majestic Realty. Hammes is the Wisconsin consultant that is in charge of DMC. It also is working directly with Mayo Clinic on the Discovery Square portion of the DMC project. Hammes also has been hired by the Rochester Convention and Visitors Bureau to do a feasibility study for the proposed hockey arena to house a possible US Hockey League team here.

Hammesco_blue_logoHammes' Exact development will include a 250 room hotel, a food court, health and wellness facility, conference and media centers and lots of room for retail and restaurants.

Exact CEO Kevin Conroy told the Madison City Council that, "We hope that by having a life science company headquarters in downtown Madison, it will spur economic development throughout the region and have a positive impact on downtown."

September 03, 2015

Don't expect a second Sam's Club in Rochester

Destination Medical Center has many companies eagerly expanding their footprints in Rochester, though one huge retailer has decided to put on the brakes.

After years of discussion, Walmart has ended its plans for a second Rochester Sam's Club store.

6a00d83451cc8269e201a73d8867a9970d-250wiFor about eight years, I've asked a succession of Walmart officials about the possibility, as rumors repeatedly surfaced that a south Sam's Club complex could be built in the Shoppes on Maine area, possibly near the the 48th Street Southeast exit.

The answers from the Bentonville, Ark.-based giant always were vague, until last March, when Walmart's director of communications sent a positive response.

"We are always looking for opportunities to better serve our Rochester customers and are making plans to add a second Sam's Club to serve the growing need among area customers who want to buy wholesale merchandise in bulk at affordable prices," stated Delia Garcia by email.

However, those plans have changed between then and now. Garcia wrote another response to a request for updated information this week.

“We are constantly evaluating and refreshing our strategy to best serve our members and have decided this is not the right time to pursue a Sam’s Club in Rochester," she wrote.

Garcia could not expand on why Walmart decided to put the brakes on plans for a south Sam's store to complement its pair ofWalmart Supercenter stores on the north and south sides of the city, as well as a north Sam's Club warehouse.

The reversal does fit with a prediction from last spring by a Minnesota retail expert.

"It makes no sense at all," said David P. Brennan, a professor of marketing at St. Thomas University in St. Paul and co-director of the university's Institute for Retailing Excellence. "In regard to Rochester because of its size and relative ease of getting around, you don't need two stores to cover a market that size. It just doesn't make sense." 

Sam's Club has nine stores in the Twin Cities area and each does about $65 million to $75 million in business per year, according to Brennan. Costco has six stores in the metro region. Each of its stores move an estimated $120 million to $130 million of merchandise per year. 

August 31, 2015

Baker's Square building sells for $2.49 million

The 25-year-old building at 819 Apache Lane SW, which houses Rochester's south Baker's Square restaurant, was purchased by Alice Montgomery of Los Altos, Calif. for $2.49 million.

646b9184dc9346a88cc1be3d4fcd9855The real estate listing by Mid America Real Estate Group shows that Bakers Square still has seven years left on its lease. The listing priced the building for $2.44 million.

Montgomery bought the 5,124-square-foot restaurant building from the Gloria J. Sobhani estate of Santa Barbara, Calif. on Aug. 25. The Sobhani family originally acquired the building in 2004 for $2 million.

Rochester's north Baker's Square restaurant building at 3539 22nd Ave. sold for $1.65 million in April 2014. Pie3539 LLC of Rochester purchased it from the Duane and Karyl Fiddyment family of Elk Grove, Calif. Baker's Square signed a 20-year lease from that property in 2001.

August 28, 2015

New business is sign of the times in Rochester

There are signs of a new business on the way for North Broadway.

Andy Anderson of Austin has a banner up for a new Fastsigns location coming soon at 200 N. Broadway in the Dison's Cleaners Center.

08272015fastsignsWhile the Fastsigns name is very familiar in the Twin Cities, this will be the Carrollton, Texas-based chain's first appearance in southeastern Minnesota.

"They have been looking to expand into Rochester. With Destination Medical Center, they anticipate growth here will be incredible," said Anderson, who is the co-owner and onsite operator. He's partnering with Gene Clement.

The plan is to start the build out of the location in September and hopefully open in the fall or early winter. He expects to start with three on staff, including himself.

That 1,500-square-foot space was last occupied by the women's clothing resale store called Nu On U, which closed in September. For Med City old timers, that's the spot that previously housed Wireless Toyz and Hobbit Travel back before that.

The real estate deal was handled by Al Watts of Wilson Watts Commercial Real Estate and Bucky Beeman of Realty Growth Inc. The center is owned by Tasos Psomas' Skiathos LLC.

Fastsigns is known for offering a wide array of printed products ranging from banners, signs, vehicle wraps down to flyers and business cards. It's main focus is business-to-business, though it can also handle typical consumer projects.

"We do can anything that a business might need," said Anderson. "Our big things are quality and a very quick turnaround time."


August 20, 2015

Popular TEDx Talks coming to Rochester

A local group is looking for people who have "compelling ideas that can change the world" to launch a new TEDx Talks event in Rochester.

"It's a great platform for ideas that matter," said Ben Creo, co-organizer of TEDxZumbroRiver.

The organizers are announcing their plans for a spring event this evening at Thursday on First & Third. 

CQkbamygIn the past several years, intellectually challenging speeches on a wide variety of concepts have grown very popular through the TED Talks events in California.

The idea of the modern version of Toastmasters is simple. After applying for the opportunity, a person is chosen to speak to a live audience on their topic for three to 18 minutes. The talks are recorded, and TED Talks post them online to reach as many people as possible.

Starting in 2006, the short and often impassioned speeches have exploded in popularity with the YouTube generation. By 2012, TED Talks online video had tallied 1 billion views. This summer, posted its 2,000th talk online.

After hearing local young professionals talk about how much they liked the popular TED Talks, Creo and co-organizer Barbara Spurrier went through the detailed application process applied for and received a license from the national nonprofit group.

"Rochester is a fantastic city and an intellectual capital of the Midwest. Let's showcase our city to the world," stated Creo in the press announcement. "It's time for Rochester to have a TEDx, and now, we will."

Rochester is cleared to host events with more than 100 audience members. Spurrier, who is the administrative director of Mayo Clinic's Center for Innovation, says this shows the confidence in Rochester because TED starts most franchise groups off with audiences of only up to 100.

Creo and Spurrier are hoping to attract a crowd of about 1,000 for the inaugural TEDxZumbroRiver event in the spring of 2016. They expect to have about 20 people speaking. No local venue has been finalized to host it yet.

Every speech will be recorded and sent to the head TED organization to be posted on its website.

Part of TED's rules include that no local organization, such as Mayo Clinic, can control or dominate the talks. Organizers say don't expect an event dominated by well-known local leaders.

"It needs to be community-driven," said Spurrier. "We're trying to reach across the community to create a holistic program."

All topics are on the table, with nothing being banned as a potential speech. The focus will be on fresh, energizing ideas. While the event will be based here, speakers can come from beyond the Rochester area.

TEDxZumbroRiver has speaker applications on its website at Creo said the applications will be "curated" by a group of about 12 volunteers.

"Right now, the focus is on finding compelling ideas," he said.