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45 posts categorized "Economic development"

November 04, 2014

Developer to build $15 million apartment complex near Roch. city hall

A South Dakota developer plans to build a $15 million, 110-unit apartment complex near downtown Rochester, plus 179 more apartments on the far northwest side.

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 Southeast and Fourth Street, across from the Olmsted County Government Center and Rochester City Hall.

11042014stencilaptsDeveloper and builder Nate Stencil and his partner, Sean A. Kaufhold, plan to build a six-story apartment complex with 3,100-square-feet of retail space on the main level and underground parking for residents.

"We're really excited about this project," Stencil said on Monday. He expects construction to begin in early spring 2015 and the complex to be completed in spring 2016.

To clear the way for the project, his company purchased the former flower shop at 410 Third Ave. S.E. for $450,000 on Oct. 15 and followed up with a $600,000 buy on Oct. 22 of the Buckeye Liquor building and nearby parking lots. Stencil bought those properties from Kevin Patton, the owner of Flowers By Jerry.

"I just think it is going to be nice to put something there to revitalize the neighborhood," Patton said.

Diane and Robert Satterwhite, who operate Buckeye Liquor and now lease from Stencil, said they will move their liquor store and continue to serve Rochester. However, no timeline for that has been determined.

The developers also recently purchased the 3rd Avenue Pet Hospital at 414 Third Ave. S.E. Dr. Caroline Baihly, who has owned 3rd Avenue since 1998, is essentially merging her clinic with the Quarry Hill Animal Hospital. After Nov. 24, Dr. Baihly and the other doctors at Quarry Hill will serve her client list.

"At this point, I looking forward to the change," she said.

With the surge of Destination Medical Center-driven development, this was something Baihly expected to happen eventually.

"I looked at the practicality of the whole thing," she said. "It seems when I look at the DMC map that this whole area is included. I think DMC has a lot to do with it."

Stencil said DMC did have something to do with the Third Avenue project, though it cropped up after they already had decided to invest in Rochester. He began working with Rochester Realtor Merl Groteboer about three years ago.

"When we started, DMC wasn't even on our radar. We were well into planning before we even heard about it," he said. "Though the project in downtown was probably influenced by it."

Second project

Stencil and his partner also have lined up property near the 65th Street Northwest interchange across U.S. 52 from the new North Menards store. Construction of the 83-unit Woodland Park apartments began there a few weeks ago. Stencil said he expects Woodland, which architecturally will be similar to the Metropolitan Marketplace complex, to be completed by late spring to early summer.

Work on Stencil's third complex, Kascade Place, is expected to begin nearby soon after Thanksgiving. It will have 96 apartments.

Those apartments, along with the proposed downtown ones, will be priced comparably to other market rate units in Rochester, he said. That means rents ranging from $900 to $1,000 a month.

"We feel very good about the market apart from DMC," said Stencil. "We believe the need for housing is coming as part of Rochester's natural growth."

October 15, 2014

Ex-Mayo exec accused of stealing trade secrets

A former top Mayo Clinic executive is being sued for allegedly hiding his hiring by a competitor of Mayo Medical Laboratories for months while he continued to work for Mayo and for stealing trade secrets.

Franklin-cockerillMayo Clinic filed a lawsuit alleging misappropriation of trade secrets and breach of contract against Dr. Franklin R. Cockerill III, who was president and chief executive officer of the for-profit Mayo Medical Labs for eight years. The case was filed Tuesday in Olmsted County District Court. Mayo Clinic released the lawsuit to the media this morning.
 
A Mayo Clinic statement released by Bryan Anderson this morning said, “We do not take this action lightly. Dr. Cockerill was a valued Mayo Clinic clinician, leader and colleague.  We will vigorously defend and protect our intellectual property to ensure we can continue to meet our charitable mission,"

A call to Dr. Cockerill's southwest Rochester residence went unanswered this morning. Asked to comment, Quest Director of Media Relations Wendy Bost said the company received the complaint this morning and is reviewing it. "We do not comment on pending litigation," Bost said.

According to the complaint:

On July 17, an emotional Cockerill told his department that he was "retiring" to help his 85-year-old mother run her fertilizer business in Nebraska. Co-workers lauded his almost 30-year career with Mayo Clinic and gave him an appreciative send-off that built up to his final day of work on Sept. 30.

All of that changed on Oct. 1. Instead of retiring to Nebraska, Cockerill went to New Jersey to work for a major MML competitor, Quest Diagnostics Inc. He stepped into the position of vice president and chief laboratory officer for the multibillion public company.

Using emails as evidence, Mayo Clinic contends Cockerill had been talking to Quest about a job since February. He had a phone interview with Quest in March followed by a face-to-face interview in May, when Cockerill said he needed the time off to help his mother with a business problem. The lawsuit alleges he accepted the Quest position in June. Instead of informing Mayo Clinic, he continued to work at Mayo and attend confidential meetings, where issues were discussed that could cause irreparable damage to MML and Mayo Clinic in the hands of Quest.

Cockerill exchanged emails discussing business strategies with Quest CEO Stephen Rusckowski in August, according to Mayo's suit.

Mayo Clinic alleges Cockerill left with at least seven clinic-owned USB memory drives and that he used four of them to "download information from Dr. Cockerill's computer in the days before … (he) started working for Quest."

Mayo Medical Labs and Quest vie for millions in medical test contracts. Mayo Medical Labs performs about 20 million tests for more than 4,000 hospitals annually. Quest says it does 1.5 billion tests a year. Many of the clinical tests conducted by both MML and Quest are proprietary and generate millions in revenue.

The lawsuit also claims Cockerill attempted to recruit "at least one long-term key Mayo employee to consider retiring early to 'consult' with the lab industry," though he did not specifically mention Quest to the female executive.

October 13, 2014

New biotech office launches in Rochester

This one seems to have a lot of local momentum behind it.

--------

The health care technology arm of a Sri Lanka-based company is officially launching its Rochester office on Tuesday morning.

Brandix i310132014brandixoffice is hosting a grand opening in the morning of its 2,000-square-foot office on the skyway level of Minnesota BioBusiness Center at 221 First Ave. S.W.

The software development firm has been working out of a spot in the Mayo Clinic Business Accelerator, since early summer. The business accelerator is located on the same floor of the Biobusiness Center as Brandix's new office.

Aaron Epps, Brandix's associate vice president of health care, said earlier this year that office would launch with six employees, though he expects it to grow to 12 by the end of the year

"We want to be part of the Destination Medical Center project," he said. "We're looking to expand quickly. We're a start-up, but we're a start-up with the backing of a large 10132014brandixskywaysigncompany."

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. Ambient's management team includes other local business leaders, like former long-time IBM executives Drew Flaada and Deb Sutherland.

Brandix has a three-year lease with the City of Rochester. It pays $20 per rentable foot
is 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.

The city gave Brandix "a one-time fit-up allowance" of $10 per square foot, or $20,000, to build out its offices.

Mayo, Cardio3 sign deal to expand collaboration

Mayo Clinic has deepened its long-time relationship with Cardio3 Biosciences by giving the Belgium firm "preferred access" to new regenerative-medicine discoveries.

Having preferred access means staff from Mayo Clinic Center for Regenerative Medicine meet with Cardio3 on a quarterly basis to discuss technologies and research that are in the "pipeline," according to Michael Pfenning, center administrator. This gives Cardio3 the first chance to ask to license, purchase or otherwise work with the center's regenerative-medicine research.

008661829The access began on Oct. 1 and runs to December 2017. It then could be extended, if both parties agree.

Mayo Clinic and Cardio3 have collaborated for many years on the cardiopoiesis technology the company uses to repair patients' hearts by re-programming their own stem cell to regenerate cardiac tissue. Cardiopoiesis is a process that "re-programs" stem cells taken from a patient's bone marrow from their hip. Those re-programmed cells then are injected back into the patient's heart to repair damaged tissue.

Cardio3 BioSciences has licensed Mayo Clinic's research in this area, since 2007. That research was led by Mayo Clinic's Dr. Andre Terzic and Dr. Atta Behfar. Dr. Terzic, who along with Mayo Clinic has a financial interest in Cardio3, also is the director of Mayo Clinic's Center for Regenerative Medicine.

Mayo Clinic is helping Cardio3 with its new phase III clinical trial of its regenerative therapy. The trial is approved to recruit up to 240 patients and it is expected to begin in January. Rochester Area Economic Development Inc., the City of Rochester and Mayo Clinic are establishing a 2,000-square-foot facility in the Minnesota Biobusiness Center to freeze and prepare patient samples for shipping to Belgium.

"We have a great relationship with them from a commercialization perspective," said Timothy Argo, a technology licensing manager of Mayo Clinic Ventures. "From our perspective, this is all about finding ways to get things from our labs to patients faster."

Cardio3 sees the new relationship as a win-win.

“Mayo will continue to invent new concepts, while Cardio3 will offer its development expertise to those technologies, as well as guidance in the early development phases to the Mayo research teams," stated Cardio3 CEO Dr. Christian Homsy in the announcement of the deal. "This agreement is in line with our business development strategy defined earlier this year, and enables our company to rapidly and significantly enlarge its product portfolio with high quality research programs across multiple therapeutic areas.”

October 10, 2014

Kane and Johnson Architects merges with WSN

Kane and Johnson Architects, a small firm with a 63-year history in Rochester and Austin, is joining forces with a larger Minnesota company.

The five-person office merged Oct. 1 with Crookston-based Widseth Smith Nolting, an engineering and planning company. The Kane and Johnson team has joined WSN's Rochester office at 6301 Bandel Road N.W.

"I selected the firm I most respect and feel will best serve my clients," said David Kane about the "evolution" of the business that his father Warren Kane founded in 1951 in Austin. "They have a very similar culture, which makes this a comfortable change."FrmReadMail_Attachment-1

WSN has been in discussions with Kane and Johnson about merging, since March.

The two firms have competed for as well as worked together on many Minnesota and Iowa projects over the years. Recently, they've been working on what they describe as "their signature collaboration," the seven-story Bridge Plaza in Mankato. Work is expected to start on that mixed-use complex in 2015.

WSN has seven offices and 195 employees in Minnesota and North Dakota. It has always specialized in working in the smaller, non-metro communities since it was founded in 1975, said Joe Breiter, WSN's director of business developmenFrmReadMail_Attachment-3t. It has long working relationships with companies like Brainerd-based Mills Fleet Farm and Bremer Bank.

“WSN recognizes Rochester as a market that continues to experience significant growth. Bringing in KJA adds dimension to our experience and deepens our capacity to serve both firms’ existing and prospective clients,” stated WSN president Kevin Donnay in the announcement of the merger.

The Crookston firm has been interested in Rochester for some time. It merged with QED Engineering, a 20-year-old Rochester firm, in 2009. Since then, its Med City office has grown steadily to a staff of about 20 with the addition of Kane and Johnson.

FrmReadMail_Attachment-2"Rochester is the largest community where we have an office. We're seeing a lot growth here," said Brian Carlson, who joined WSN's local office earlier this year. He added that WSN has many "significant" projects in the pipeline for the area.

Kane, who will remain on with WSN, said this deal made excellent sense as the next step for his evolving business that has adapted many times over the years.

He has led the firm since he was 24. Kane started working there in 1974 and then was forced to lead the business a year later when his father suddenly died. He expanded the practice into Rochester in 1988 by acquiring Pieper Richmond Architects. In 1993, Kane sold the Austin practice in 1993 to his partner.

Over the years, Kane's small firm has lead the way in many areas. It was one of the first firms to begin offering asbestos removal in Minnesota and handled many large abatement projects throughout the Midwest. It was also an early innovator in the area of handicapped accessibility dating back to 1976, well before the Americans with Disabilities Act.

The firm has worked on such high profile projects, such as Olmsted National Banks' headquarters at 975 34th Ave. N.W., Timothy Chapel at Rochester's Autumn Ridge Church, the Steele County History Center and renovation of the Winona County Courthouse.

"Now with the additional resources of WSN, we'll be able to do even more," said Kane. "The financial reality is that it's tough to compete as a small, private practice."

September 23, 2014

Paint store, coffee/bagel shop may be coming to N.W. Rochester

If a few final details can be hammered out, a Sherwin-Williams paint store and combination Dunn Bros Coffee/Bruegger's Bagels shop could be coming for northwest Rochester.

TJL Development of St. Paul is planning to build a 4,000-square-foot building for Sherwin-Williams and a 2,500-square-foot building for the co-branded Dunn Bros/Bruegger's. They are slated for a parcel near Kwik Trip and Costco in the 108-acre commercial development at 19th Street and West Circle Drive. The development plans include other businesses, such as McDonald's, two hotels, an Aldi's grocery store and an Associated Bank branch.

This is not TJL's first foray into Rochester. It built a 4,000-square-foot paint store in 2013 for Sherwin-Williams in south Rochester, in front of the south ShopKo and Menards stores. That store replaced Sherwin-Williams' former south store, which was located in the defunct Rochester Market Square, which later became Rochester Public School's Alternative Learning Center.

If the northwest project moves ahead as planned, it is expected to replace Sherwin-Williams' current location at 19 Seventh St. N.E.

While TJL Principal Jim Lavalle says there are some aspects of the project that still need to be finalized, the company is moving ahead and has filed building plans with the City of Rochester.

"We're hopeful to start construction yet this fall," he said.

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 09, 2014

114-year-old family farm sells for $1.85 million in NW Roch

Since the city of Rochester surrounded his family's 114-year-old farm, developers and real estate agents have regularly talked to Jim Till about selling his island of prime real estate on 19th Street Northwest.

After years of turning down offers, Till sold the remaining 28 acres of his family farm to Jack Remick for $1.85 million last week. Remick also owns Rochester Athletic Club across the road from the farm.

540f1b17a71bf.image"You look back, you hate to leave, but you've got to go sometime," said Till of selling the farm that he has lived on for all of his 61 years. "It's just time to hang it up."

Remick calls the purchase an investment at this point.

"It's a nice piece of property. I don't really have any specific plan for it," he said. "Some of it is across from the club, and some is across from Lourdes (the high school built on land he donated). I would be very interested in what goes in out there."

Till has six months before he needs to move out. He plans to move to his other farm, outside of Byron. He'll continue to farm more than 300 acres with his brother, Charles Till.

Till bought the farm from his mother, Leone Till, in 2006. The house on the farm, which has been expanded and remodeled several times over the years, was originally built in 1900. Till's grandparents lived there. The family has photos of his father, who was born in 1910, as a baby in front of the house. Jim Till grew up on the farm with his eight sisters and his brother.

The family milked cows and raised fields of corn and alfalfa on their farm and on nearby leased fields. In the 1980s, the brothers each bought farms near Byron.

While the Till farm was originally outside of the city, development slowly encircled it.

West Circle Drive started bringing a lot more activity to the area. Manufacturers such as Crenlo and Pemstar/Benchmark built there. Mayo Clinic expanded into that part of the city. The leased fields on the corner of 19th Street and West Circle Drive, where the Tills grew alfalfa for their cattle, was shaped into a commercial development by Kwik Trip for Costco and other businesses.

"For a long time, there wasn't a lot of traffic. Now, it's just traffic all of the time," said Till.

After Costco went in, he moved the dairy cattle to his Byron farm, which means he has been spending a lot of time on the road going between the two farms.

"The only ones profiting were the gas companies and tire companies. It has been a lot of hassle," he said.

The surge in activity in the area also brought crime. Till has been burglarized a number of times in recent years, which prompted him to install gates and move many things to the Byron farm. He then had a stroke about four years ago, which slowed him down.

"I always said I'd sell when the offer was enough to laugh all the way to the bank," he said. "Well, it was just time to sell, though I'm not laughing too hard."

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.