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40 posts categorized "Destination Medical Center 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 05, 2014

RAEDI brings on Holmes to fill new marketing position

Preparing for the rollout of its regional five-year plan, Rochester Area Economic Development, Inc. has hired Heather Holmes to fill a new marketing position.

RAEDI announced the hiring of Holmes as vice president of marketing this week. Holmes, a long-time Rochester marketing professional, will start the new job on Sept. 15.

RAEDI President Gary Smith explained that his board decided to create the new marketing position to help with the introduction of the Journey To Growth economic plan that RAEDI and the Rochester Area Chamber of Commerce have been working on for the past year.
10654081_10204675785082933_99753887_n
A steering committee of 26 business leaders from Olmsted, Dodge and Wabasha counties has been working on the $150,000 project. The plan, which reaches beyond Mayo Clinic's Destination Medical Center intitiative into the region beyond Rochester, focuses on three major themes:  expanding and diversifying the economy, optimizing the regional talent base and developing a more cohesive and connected region.

Smith anticipates that the plan should be completed in the next few months, and said that Holmes will help introduce it to the area when it's ready.

"For the past couple of months, we've been doing a national and local search to fill this job," he said. "Heather's a good choice, because she knows who we are and believes in what we're doing."

Holmes comes to RAEDI from the Rochester software firm, Metafile. She also worked in marketing for KAAL-ABC 6 and Corporate Web Services.

"It is an exciting time for our great city, and I'm thrilled to have a front row seat. I can't wait to get started," Holmes said about her new role.

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 12, 2014

Sale results in a double shot of juice for downtown Rochester

The result of a recent deal is a double shot of fresh juice plus new food offerings in downtown Rochester.

On Aug. 6, Ann Chafoulias sold her Essential Juice in the First Avenue Food Court to David Hewitt. He also owns Mama Meg's Parlour and co-owns Johnny Mango's Pita Cafe in the same food court.

12082014juicetonictooChafoulias originally opened Essential in December with the goal of introducing downtown to healthy, fresh cold-pressed juice. She says the new business quickly earned many loyal regular customers and it was building a strong foundation. She developed a staff of about five employees.

"It's a beautiful product," she said. "It's the perfect spot for it. I believe in Rochester and in downtown."

Then during the last brutal winter, Chafoulias was offered a very appealing opportunity in Phoenix, Ariz., where she had attended college.

That drove her to find a buyer for Essential with the hope that the new owner would continue what she had built. Hewitt bit on the juicy offer and he brought in Nikki Sylvester, who opened a cold-pressed juice bar and organic food eatery called Tonic in southwest Rochester last fall.

On Monday, Hewitt and Sylvester unveiled a "co-branded" place under the name of Essential Cold-press Juices and Tonic Too.

In addition to Essential's bottles of freshly pressed juice, the new blended business now also serves luncheon options from Tonic's menu and smoothies.

Look for the Tonic/Essential mix to be serving at the popular Thursdays on First and Third street market from Sylvester's distinctive orange-shaped cart. Mama Meg's and Johnny Mango's Pita Cafe also are food vendors at the weekly events.

For her part, Chafoulias is glad that her juice business is still adding a fresh flavor to downtown.

"I'm excited to see what happens next," she said.

July 30, 2014

Developer working on new projects in N.W. Roch.

A St. Paul-based developer is looking to follow up its first Med City project with a couple more in the increasingly active northwest quadrant.


TJL Development recently built a new 4,000-square-foot paint store for Sherwin-Williams in south Rochester, in front of the south ShopKo and Menards stores.

Now the firm is working on projects by the Costco complex in northwest Rochester.

"We're hopeful to soon finalize transactions for two free-standing buildings," said Jim Lavalle, principal of TJL Development.

If the deals work out as he hopes, TJL will construct 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. The developer would own the buildings and lease them to the tenants.

"Rochester is a great place to do business, is what we've found, and we'd like to do more business down there," said Lavalle of why his firm is working in the Med City.

These plans would just add to the flurry of construction already underway in front of Costco and Kwik Trip.

A new McDonald's restaurant is being built there to replace the older one on the U.S. 52 North Frontage Road. Construction also is buzzing along for a 77-room Comfort Inn and Suites and a 109-room Staybridge Suites in the same area.

Discount grocer, Aldi, also recently announced plans to build a 17,000-square-foot store within the same development, at the corner of 22nd Street Northwest and Commerce Drive.

The whole 108-acre area on the northeast corner of West Circle Drive and 19th Street Northwest is being developed by Northwest Investments, the real estate arm of Kwik Trip Inc. For years, Hans Zietlow of the La Crosse, Wis.-based Kwik Trip has said that spot is the "key property" on Rochester's west side.

With all of the dirt moving and walls going up, it looks like a lot of people agree with him. 

July 28, 2014

Mayo plans offices in former restaurant space

Mayo Clinic has decided to put administrative offices in the long-empty former Red Lobster space in downtown Rochester.

The roughly 6,000-square-foot space is on the street level of the 60-year-old Rosa Parks Pavilion building at 195 S. Broadway. Mayo bought the building for $2.37 million in 1997, and Red Lobster leased space there from 1987 until it closed in 2011 and opened in a new building by Apache Mall.
07272014exredlobsterspace
Since Red Lobster left, Mayo Clinic repeatedly has said it was looking at options for the prime downtown location. Even when Mayo Clinic began interior demolition in the former restaurant space in February, the official word was that no plans had been made for the spot.

That changed this week, when clinic officials confirmed their plans.

"We are in the process of converting the space into administrative space that can accommodate individuals and teams from different departments to co-locate for a period of time in order to collaborate on projects," Mayo's Kelley Luckstein said in an email. The space should be ready for staff to move in by November.

Given the clinic's seemingly endless need for space and its use of other nearby street-level spots for offices, the decision was not surprising, but it's disappointing for people who would like to see more street-level stores and restaurants downtown.

"Mayo Clinic did take into consideration retail space, but based on Mayo’s needs, this was the appropriate use of the space at this time," according to the statement emailed by Luckstein.

One critic of the decision is Adam Ferrari, a Rochester architect and an advocate for a more vibrant downtown. "I don't know who in public relations could defend how this is furthering the Destination Medical Center effort, but it's clearly contradictory," he said.

An official with the Rochester Downtown Alliance declined to comment on the change at this time.

While Ferarri was critical of Mayo's plans, he did acknowledge the clinic desperately is looking for office space. "Mayo is simply too hard up for space right now to let any square footage out of their grasp. That's my interpretation," he said.

June 30, 2014

Consultants hired to create DMC blueprint w/ FULL CONTRACTS

Here's some of the lead-in to my package from the weekend about the $4.1 million  contracts for the consultants to create the Destination Medical Center plan to re-make Rochester.

There's a lot more detail in the rest of the package. So if you are interested in this topic, I'd suggest reading the full piece.

And for the document wonks out there like me, here's the 251 page PDF that includes all of the contracts with Nelson / Nygaard Consulting Associates of San Francisco; Kimley-Horn and Associates of Cary, N.C.; AECOM Technical Services of Los Angeles; and EE&K of New York.

Download Combined Consulting Agreements EDA(1)

 

---------------

Planning for a complex initiative like Mayo Clinic's Destination Medical Center doesn't come cheaply.

The surge of DMC hype already has national and international businesses fluttering around Rochester's sudden glow. The sale of commercial real estate is booming, particularly in the downtown core. New housing developments are being mapped out for the tens of thousands of people expected to move to Rochester for the forecasted 35,000 to 45,000 new jobs.

51687d3f5e0c6-image However, there's no blueprint yet for the $6 billion upgrade of the city's infrastructure, transportation systems, private development and more that's at the heart of DMC's vision of a Rochester better suited to accommodate more patients for Mayo Clinic.

Hiring a team to create a detailed plan for the massive undertaking to change the face of the city was a top priority for the public Destination Medical Center Corp. board of directors.

Public-private projects on this scale are rare in U.S., so there are not many examples to follow. National experts say sports developments, like the $975 million Vikings stadium and the new $622 million Atlanta Braves stadium, are about the only comparable projects to what is being proposed in Rochester.

The DMCC contracted with the DMC private Economic Development Agency, led by Mayo Clinic's Lisa Clarke, to handle hiring consultants to create the overall DMC "development plan." In December, the EDA board posted requests for proposal for six roles in the planning process.

800px-Gonda_building,_closer_upWith so much money on the table, proposals came in from 19 leading firms across the country and even overseas. Five of the teams vying for the contracts are based in Minnesota with three of them having offices in Rochester.

In April, the EDA wrapped up that six-month hiring process by contracting with four national consulting firms. Two were chosen to fill dual roles.

All of the consultants have had experience in major public-private projects, from stadiums to transit systems to airports.

Those four, plus another company hired in February, will be paid a total of $4.1 million this year to create the DMC's grand plan by February. That $4.1 million accounts for almost half of the DMC's total city-funded budget of $8.2 million for 2014.

In the end, all of the Minnesota hopefuls were passed over for the DMC planning jobs.

"The main factors that influenced our decisions was experience, knowledge of the market and the team they put forward. Those were the basic components we needed to consider as we moved forward," said Clarke. "I'm very confident that we have hired the best."

June 27, 2014

Mayo Clinic still mum on SE Rochester building

There's no question that an unmarked 22,000-square-foot commercial center is being built in south Rochester's Shoppes on Maine area.

The question is what will it be used for when completed?

The half-completed gray and blue building at 4544 Canal Place S.E. stands at the corner of Canal Place and Maine Avenue Southeast.

06262014mayoclinicsoutheastIt's described as "Future Mayo Clinic Southeast" in city building permits dating back to April. However, Mayo Clinic isn't acknowledging any involvement.

"We don’t have anything to share at this time. When we do — I’ll certainly let you know" is how Rebecca F. Eisenman of Mayo Clinic Communications responded to questions on June 18.

In April, Eisenman did acknowledge that Mayo Clinic is interested in the area.

"We are exploring options to improve our ability to improve access to community care for our employees and those who depend on us for these services," she wrote. "Future options may include expansion of facilities and services in southeast Minnesota, but no specific details are available at this time."

The owner of the project is Canal Place Pointe Inc., which is based nearby at Suite 200 of 4325 Maine Avenue. That's also the address of the office of Maine Street Development Co. Tom Hexum, who manages the Maine Street Development projects with partner Ron Schultz from that office, filed the original land development application for the building. He says it's owned by a group of local investors, though he is not part of that group.

Hexum describes the building as a Mayo Clinic project.

Building permits show that just the structural shell of the Canal Place Pointe complex is valued at $1.4 million. There is a half-circle drive under an 880-square-foot canopy in front that would be handy for a medical facility. The parking lot features 109 parking spaces.

The whole facility, being built by Benike Construction, is on two acres of land. The local design firm SEH-Yaggy, formerly known as Yaggy Colby Associates, planned the project.

June 23, 2014

Rochester's Dunkin' Donuts to open at end of month

Doughnuts should be dunking before the fireworks start launching.

Rochester's new Dunkin' Donuts, the first to operate in Minnesota since 2005, is prepping for a late June "soft" opening. The return of DD is happening at 15 First Ave. S.W. in the Kahler Grand Hotel complex in the heart of downtown.

06232014dunkindonuts"We're in good shape," says Donna Caflisch, who represents Rochester Retail Services. "We're working hard on training now to make sure we're ready with good customer service."

So if you smell doughnuts in downtown during the next few weeks, it probably won't be your imagination. The staff is rolling through lots of training batches.

While Caflisch already has a full team of about 30 employees on staff, she says they still are hiring people that help with DD or other projects. Rochester Retail Services also manages the new Freshens franchise in the Kahler Inn & Suites and is working on a second one in the subway of the Marriott Hotel. That second Freshens could open its doors, if everything goes according to plan, in early August. It's located in the space that last housed the long-time downtown shop, The Crate.

She says the early responses to recent opened Freshens in the Kahler Inn have been very positive.

"People seem to be excited to see some variety in their (downtown) menu choices," said Caflisch.

When asked about speculation that a second Dunkin' is being planned for southeast Rochester, she said she couldn't comment.

While all of the franchises managed by Rochester Retail Services are located in downtown hotels owned by the Kahler Hospitalty Group and the firm offices in the Kahler, Caflisch stressed that there is absolutely no direct connection between any of the owners of the Kahler hotels and the owners of the restaurant franchises. However, she declined to identify who actually owns the franchises.

Rochester's Dunkin' Donuts franchisee, Donuts Non Traditional LLC, incorporated in October 2014. The address it uses is Rochester's Dunlap & Seeger law firm. That's the same address used for Rochester Retail Services, which incorporated in March 2013. It's not unusual for some companies to use their attorneys' address for such filings.

June 17, 2014

Brandix i3 'graduates' from Accelerator, leases BioBusiness Center space

Another start-up is "graduating" from the Mayo Clinic Business Accelerator to lease office space in Rochester's Minnesota BioBusiness Center.

02272013mayoaccelerator1As a parting gift, it is providing the Accelerator with a short-term solution to its need to expand by  providing space for it to use.

Brandix i3, the healthcare technology arm of a Sri Lanka-based company, has signed a three-year lease with the City of Rochester for 2,000-square-feet of space on the skyway level of the center at  221 First Ave. S.W. The space is half of a 4,000-square-foot area that never hasHeader been built out for a tenant since the BioBusiness Center opened five years ago.

The software development firm plans to have six employees based in the Rochester office to start with, though it expects to grow to 12 by the end of the year, said Aaron Epps, Brandix's associate vice president of healthcare.

"We want to be part of the Destination Medical Center project," said Epps. "We're looking to expand quickly. We're a start-up, but we're a start-up with the backing of a large company."

051509biobusinesscenteratnightBrandix currently is operating out of the Accelerator space. The lease that was approved by the city council Monday sets Brandix's rent at $20 per rentable foot for the 2,000-square-foot space. It also will pay its share toward the maintenance of the building and its taxes.

The city is giving "a one-time fit-up allowance" of $10 per square foot, or $20,000, to the software firm to prepare its offices.

By comparison, the city signed a five-year lease in 2013 with Patient First Home Infusion Services for $16 per square foot and gave it $10,000 to use for construction costs.

In 2013, Imanis Life Sciences signed a five-year lease set at $15.50 per square foot for the first two years.  It then increases every year to $18.50 by the fifth year. The city also agreed to provide Imanis a $20 per foot allowance to build out the space plus an interest-free loan of up to $10,000.

In addition to the leasing the 2,000-square-feet, Brandix's lease promises "first right of refusal" for the other 2,000 square feet of adjacent vacant space to the west.

"In the interim, the Business Accelerator may lease the adjacent space until such time as it is needed by Brandix," according to the lease. There has been talk of expanding the Accelerator, which opened in 2009.

Epps, who has lived his whole life in Rochester, says the company plans to create a "unique" office to enhance the local business community.

Brandix's focus is to work with its local partner, Rochester-based Ambient Clinical Analytics. Ambient makes "real-time decision support tools" for doctors and nurses working in the ICU, operating room or emergency departments.

Mayo Clinic launched Ambient in 2013, and it named Al Berning as CEO. Berning is known in Rochester as a former IBMer, a co-founder of Pemstar and former CEO of Hardcore Computers/LiquidCool Solutions.