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93 posts categorized "Destination Medical Center news"

September 09, 2016

Foreign patient numbers trending down at Mayo Clinic

I'm wading through a 216 page statement Mayo-clinic-logo for issuance of $220  million bonds by the City of Rochester for Mayo Clinic.

While that might not sound very exciting, there are a lot of interesting details. This document is looked at bond buyers who are judging Mayo Clinic's stability.

Here's one thing that jumped out at me:

Foreign patients, not including Canadians, accounted for 1 percent of the patient population in Rochester in 2013.

That dropped to .03 percent in 2014 and 2015.

I don't know how many patients that accounts for or why the numbers are down. Plus I don't know if t
hat trend is continuing in 2016. I have submitted those questions to Mayo Clinic.

I realize this is a random fact, but it interests me. And there there a lot more little tidbits like this in the bond statement.


September 08, 2016

Rochester 'Gold Rush' spurring bank, credit union branches

I'll have a full piece on this in the weekend paper. Here's a sample with some extra data.

At a time when many banks and credit union are seeing less people using branches, Rochester is in the midst of a mini-branch building boom.

In 2009, banks had U.S. 99,550 branches, according to the Federal Deposit Insurance Corp. By the end of 2015, that national number fell to 92,997.

09-01 2construction enRochester has 46 bank branches and five credit union branches. That's a bank or credit union branch for every 2,093 of Rochester's 106,769 residents.

Rochester is the bucking the national trend when it comes to branches. The easy answer to the question of why is the Med City's robust economic growth powered by Mayo Clinic makes it attractive for banks and credit unions.

However, each institution has their own ideas about branches.

• Altra Credit Union has purchased two parcels to build future branches.

• West Bank has a large branch under construction along West Circle Drive.

• Think Mutual Bank is building a new branch in northeast Rochester. 

• La Crosse, Wis.-based Coulee Bank is transforming the former Family Service Rochester building on Civic Center Drive into a branch.

Data from Minnesota Bankers Association

• For the record, Duluth has 35 bank branches. I don't know how many credit union branches. Duluth has a population of 86,277.

• Mankato has 28 bank branches. I don't know how many credit union branches. Mankato has a population of 39,396.

A national study found most bank chains in the U.S. reduced their number of branches in 2015.

• Wells Fargo - 6,272 branches down 39 from 2014

• US Bank - 3,209 branches down 35 from 2014

• Associated Bank - 224 branches down 13 from 2014.



August 26, 2016

Mayo Clinic employment numbers are up and down

The number of Mayo Clinic employees has swung dramatically up and down since the passage of the Destination Medical Center legislation. 
Mayo-clinic-logoOn Thursday, Mayo Clinic leaders touted Rochester job growth to the Destination Medical Center Corp. board, saying the clinic has added 3,370 new positions in the last 12 months. However, that growth didn't quite carry the clinic's Rochester employee numbers out of the low point they were in last year.

"We are growing," said Jeff Bolton, Mayo Clinic's chief administrative officer and chairman of the Destination Medical Center Economic Development Agency Board. "Mayo is all in and committed." 

Bolton said Mayo Clinic had 34,175 employees in Rochester at the end of July. That is an increase of 3,370 jobs from the low point of 30,805 Rochester employees in August 2015.

While Mayo Clinic is adding local jobs, its employment numbers still are well below the 34,562 employees the Rochester clinic recorded at the end of 2015.

The figures show that 3,390 jobs were lost in 2015 between January to July. Then the numbers rose 3,757 by the end of December.

"It’s difficult to point out any trends in a 12-month cycle," Mayo Clinic spokesman Karl Oestreich said via email. "Mayo Clinic usually experiences about an average 2 percent annual growth. This rate varies each year — some years (like last year) more and other years less. Last year’s growth is ahead of that clip."

During his report to the board, Bolton said the increase in the past 12 months is because of patient demand being "extremely strong." He cited that new jobs are "a broad range of positions."

When asked what the average salaries are for the new jobs and what type of jobs they are, Mayo Clinic did not have that information available.

"We haven't done that analysis as to what job codes comprised most of the new/incremental positions. Good question, but unfortunately we don’t have a quick answer," Oestreich said. 

The DMCC board was impressed by Mayo Clinic's Rochester employment increases.

"We're asked all the time about what is going on in Rochester. We may not be doing too much on the brick and mortar, but you're on track," said board member and former Wells Fargo Minnesota CEO Jim Campbell. "You got about 10 percent in a year, which is pretty incredible job growth in the state. You have to be almost at the top."

After the meeting, State Sen. Dave Senjem proudly shared the employment numbers on his Facebook page.

"Quietly done without boasting or fanfare. Pretty amazing, more to come," he wrote.

At the end of his report, Bolton emphasized that Mayo Clinic is growing in Rochester as part of the DMC pact with the state.

"We're extremely bullish," he said. "We're really enjoying the opportunity to partner with the EDA, the city, the county and state in realizing the vision of DMC."

Mayo Clinic employees

in Rochester

• 34,175 - July 2016

• 34,562 - December 2015

• 30,805 - August 2015

• 34,200 - December 2014

• 33,197 - December 2013

• 34,223 - December 2012

• 33,156 - December 2011

• 31,998 - December 2010

• 31,966 - December 2009


August 24, 2016

Ex-Michaels restaurant sells for $5.5 million in downtown Rochester

More than a year and a half after one of Rochester's most beloved restaurants closed its massive doors, the prime downtown property has unexpectedly sold for $5.5 million.

The buildings which housed Michaels restaurant at the corner of South Broadway and Center Street for 64 years were purchased by Harbor Bay Real Estate Advisors of Illinois on Friday. The sale included four properties — 11, 13, 15 and 17 Broadway.

08242016michaelsOlmsted County estimated the total market value of the properties at $1.17 million, which means it sold for almost five times its estimated value.

Harbor Bay bought the buildings from 15 South Broadway LLC, which is described as a joint venture owned 50-50 by the Chafoulias and the Pappas families. That group bought the property on Jan. 6, 2015, from the Pappas family for $1.4 million, almost a fourth of what it sold for last week.

The high profile 2015 sale and emotional closure of Michaels was described as clearing the way for redeveloping the land and then connecting the new building to Gus Chafoulias' proposed Broadway at Center tower via a skyway across Broadway. Michael Pappas described the plan in late 2014 as involving closing the restaurant, demolishing the buildings and developing a new retail center that would connect with both the Shops at University Square and the planned Broadway at Center project, both Chafoulias properties.

Why change the plan and sell the buildings to an outside developer?

"There are many family members on each side and they felt it was a very fair price and preferred selling to developing the site," wrote Sheila Thoma, spokeswoman for the Chafoulias family's Titan Development and Investments company.

No member of the Pappas family was available for comment on the deal.

Thoma added that Gus Chafoulias still plans to connect whatever is built on the Michaels site to his long-delayed $145 million Broadway at Center on the southeast corner of Broadway Avenue and Center Street. Broadway at Center is the first high-profile project approved by the Destination Medical Center Corp. in 2015 to count toward Rochester's DMC commitment to the state.

"We have an agreement with the group that purchased and they want a skyway as well," she wrote.

Mark Bell and Tom Lund, the partners who run Harbor Bay, were not available for comment on Tuesday, so it is not known what their plans are for the Michaels property. However, the duo already have a housing development under construction in Rochester.

Harbor Bay is the company behind the 211-unit Preserve on Maine apartment complex at 4010 Maine Ave. SE. The developer describes Preserve on Main as "a place where luxurious residences and resort style living meet." Rents for the 17 styles of apartment range from $975 to $1,995 a month.

Chafoulias' Broadway at Center project has been stalled for months awaiting a financing deal to be finalized before starting demolition and construction. In July, Chafoulias announced that his team was terminating its relationship with Saudi Prince Turki Bin Abdullah Bin Abdul Aziz Al-Saud and Anas Abukhadra, of Minneapolis, because they had failed "to fulfill (their financial) obligations."

The project is still awaiting financing to clear the way for a needed $105 million loan to help finance the 23-story complex.
Could this latest deal with Harbor Bay be connected to financing Broadway at Center? Thoma says definitely not. She wrote that the Michaels sale has nothing to do with Broadway at Center other than the proposed skyway link.

August 23, 2016

Mayo's Noseworthy vs Cleveland Clinic's Consgrove

While Mayo Clinic and Cleveland Clinic vie for the top doctors and patients, their respective CEOs are also being compared.

Here's the breakdown of how Mayo Clinic's Dr. John Noseworthy and Cleveland's Dr. Toby Cosgrove have scored in Modern Healthcare's annual "Top 100 Influential People" list plus the salaries they were paid each year.

Rank in 2011
* Noseworthy - 71, earned $2 million
* Cosgrove - 56, earned $2.5 million

Rank in 2012
* Noseworthy - 17, earned $1.7 milion
* Cosgrove - 21, earned $3.1 million

Rank in 2013
* Noseworthy - 15, earned $1.9 million
* Cosgrove - 16, earned $3.2 million

Rank in 2014
* Noseworthy - 16, earned $2.3 million 
* Cosgrove - 72, earned $4.1 million

Rank in 2015
* Noseworthy - 8
* Cosgrove - 12

Rank in 2016
* Noseworthy - 30
* Cosgrove - 29


August 16, 2016

New biz incubator is up and running

08152016collider1The renovation of the 115-year-old Conley-Maass building at 14 Fourth St. SW by owners Traci and Hunter Downs is almost complete

The Bleu Duck Kitchen on the main level of the building is ready to open to the public next week.

0816collider2Meanwhile, upstairs, the Downs' new Collider business incubator is officially open for business under the management of Jamie Sundsbak. About one-third of the works spaces are contracted out so far, he said.

On Monday's opening day, Chris Lukenbill moved in his software development teams, which works for Bright Agrotech of Laramie, Wyo.

August 04, 2016

Name of new complex revealed as Flats on Fourth

The Buckeye is out, as is Ovation.

The name of the new 92-unit apartment and retail complex being built on the corner of Fourth Street and Third Avenue Southeast in downtown Rochester has fluctuated during the planning phase. 

F89c28e7467b81cdb720c0c067eca5d3_f252Now that a major hole has been dug across from the Olmsted County Government Center and Rochester City Hall, the developer unveiled the official name for the $15 million project.

Nate Stencil, of Stencil Homes, confirmed Wednesday it is now called Flats on Fourth. The South Dakota developer is driving the project with his partner, Sean A. Kaufhold.

The new name was announced this morning during a public event organized by the Destination Medical Center Economic Development Agency, according to Stencil.

The name was a minor issue in the neighborhood, because some people objected to having it called The Buckeye. The complex is being built on the corner where the longtime Buckeye Liquor store once stood. The store since has moved a little farther south down Third Avenue.

As the project progressed through the early planning stages, the project name was changed to Ovation on Stencil's website. However, it turns out that was just a possible name that was ultimately rejected.

Now, when this complex opens next summer, the name over the door will be Flats on Fourth. 

While they haven't started marketing the space, Stencil says there already has been interest in the ground level retail space in the complex.

"We've had some inquiries on the retail end, but not from the kind of retail we are looking for. We're looking for very specific tenants that will be a good fit for that area," he said.

Stencil recently built and opened two other apartment complexes, Nue52 and Kascade Place. Both are near Rochester's 65th Street Northwest interchange across U.S. 52 from the North Menards store. 

Another Rochester apartment project by Stencil, The Pines, still is under construction. Once Flats on Fourth and The Pines open, Stencil will own 463 apartments in Rochester. 


July 07, 2016

Broadway Flashback - early 2013 Broadway at Center plan

Following Wednesday's announcement about the delay in the financing for the now-$145 million Broadway at Center project, I decided to look at back an earlier version of that project rolled out by Titan Development and Investments in 2013.

Here's an article I filed on May 31, 2013 with an assist from Managing Editor Jay Furst. The rendering is of the version of Broadway at Center introduced at Titan's press conference:

Just a week after Mayo's Destination Medical Center plan was approved by the state, a Rochester developer announced plans today for a 25-story tower at the corner of South Broadway and East Center Street.

6a00d83451cc8269e2019102c4aed3970c-800wiThe Broadway at Center mixed-use project, proposed by Andy Chafoulias' Titan Development and Investments, would have about 30,000 square feet of Class A office space, a 150-room four-star hotel, 150 market-rent apartments, a "high-end grocery" and a Minnesota-branded steakhouse, among other attractions.

The announcement was made at a news conference this morning at Titan's offices in the Minnesota Biobusiness Center. Chafoulias didn't attend; the announcement was made by John Beltz, vice president of brand revenue development.

Titan is "poised for some very significant growth and contributions to Rochester," Beltz said, citing the company's planned restaurant and entertainment complex three blocks south at the C.O. Brown building site and a seniors apartment project further north on Broadway.

No cost estimate was provided for the Broadway at Center tower, and Beltz said the tower could go higher as planning proceeds -- possibly topping the Broadway Residences and Suites tower next door, which is the tallest building in Rochester and southern Minnesota. As planned, the building would have about 300,000 square feet of space and would be connected to the skyway system and a planned city parking ramp on the block.

The new building would be on the northwest corner of the block bounded by South Broadway, East Center Street, First Street Southeast and First Avenue Southeast. The Broadway Residence and Suites tower is on the southwest corner, and the new project would be on the current site of CJ's Midtown Lounge, Jakobson Management Co. and Ginny's Fine Fabrics.

The goal is to have a "hole in the ground" and construction underway next year, Beltz said. He declined to identify the hotel, restaurant and retail tenants who are in discussions with Titan but said in a news release that they're "finalizing negotiations with several recognizable Minnesota brands."

Rochester's lack of a top-tier hotel brand was often cited during the DMC legislative process as something the city needs to attract national and international medical visitors.

The announcement signals Andy Chafoulias taking the wheel of a project envisioned by his father, Rochester developer Gus Chafoulias, in 2007. That proposal was for a two-tower mixed-use project with retail, apartments and office space as well as possible space for University of Minnesota Rochester.

As with the previous version, Rochester architect Hal Henderson of HGA Architects and Engineers would direct the project design. Darren Schlapkohl, Titan vice president of development and construction management, said the project has "been in design for some time and continues to evolve."

Mayo's DMC initiative, which was announced in January and won legislative approval less than two weeks ago, is "an excellent addition to the vision" for Rochester, Beltz said, but Henderson said the Broadway at Center project has been at an advanced stage for at least six months.

June 21, 2016

New downtown skyway going up quickly

Construction of a new downtown Rochester skyway is well underway.

06212016skywayworkThis is a small skyway that will link the 318 Commons building on First Avenue to the former Paine Furniture building on South Broadway. It will span a small alley to make the link.

The connection will link University of Minnesota Rochester offices in the 318 Commons building to future UMR offices in the Paine building.

A quick peek down the alley from behind Cafe Steam showed that the construction is rolling along really quickly.

Once completed, downtown pedestrians will be able to get even farther without stepping out in the snow or rain. 


June 13, 2016

Future use of ex-postal center still unclear

Almost a year since buying a former Med City mail processing center for $2.11 million, Mayo Clinic still is working out what to do with it.

3939Valleyhigh DriveMayo Clinic purchased the former U.S. Postal Service facility at 3939 Valleyhigh Drive in July 2015. The 72,662-square-foot center closed in January 2015, when mail processing was transferred to the Twin Cities.

When asked this week about its plan, the Mayo Clinic was pretty much the same as when it bought the building.

“No decisions have been made regarding the use of space at 3939 Valleyhigh Drive NW,” wrote Kelley Luckstein of Mayo Clinic Public Affairs on Friday in response to the query about the building.

The 19-year-old building could be adapted for a variety of purposes, such as an industrial laundry, a distribution center or light manufacturing. The center is described as "constructed of pre-stressed concrete and steel frames for high volume load distribution and contains a total of 23 dock doors; 10 overhead doors, 12 semi-truck docks and one grade door."