Kiger's Notebook

Downtown grocery, apt. complex shaping up

As the Rochester street work around it wraps up, it looks like construction is going full tilt on the Metropolitan Market Place complex at First Avenue and Sixth Street Southwest.

Wisconsin-based Gerrard Corp. is building the four-story apartment complex with the new People’s Food Cooperative (former Good Food Store) grocery on the main level.

It will have 62 apartments when all of the dust settles.

A little farther south on First Avenue, the University of Minnesota Rochester recently bought a two-story office complex in preparation for its long-term plan of building a 10.5 acre campus in that area.

I have more on that in an article in today's paper.

If I understand the future plans correctly, the Metro Market complex will be basically across the First Ave./Sixth St. intersection from the entrance to this future university campus. Not a bad place to be, I'd guess.

 

Is school district buying Roch. building?

Recently I tacked a Biz Buzz item onto my column that speculated that the Rochester Public School might be shopping for some real estate and could have its sights on an empty commercial center.

While school may not be out for summer yet, the buzz in the teachers lounge is that the Rochester Public Schools might be already out on the streets looking at commercial buildings to possibly lease or buy.

There are no documents related to anything like this in the school board's pipeline, according to Jennifer Pozanc of the school district.  

"This is the kind of thing that usually goes through board," she said.

And now maybe it is going through the board.

On June, the school board is gathering in closed session at 5:15 p.m. prior to the scheduled public board meeting.

The legal reason of why such a meeting is needed is thus:

 The School Board Chair of Independent School District #535 is calling a School Board Closed Session for the purpose of consideration of the purchase and sale of real property.

This could be totally unrelated to the chatter I've been hearing. But it does  seem to back up the possible theory that the Rochester schools could buying some bricks and mortar.

Roch.-made computer to move heaven and earth

Here's some from a tidbit (or maybe tidbyte) about Rochester's Hardcore Computer going to school.

A unique Rochester-made machine that looks a little like a glowing fish tank is moving heaven and earth to launch the imaginations of local students to places they've never gone before.

To bring the stars to earth, the Mayo High School Planetarium is diving in with Hardcore Computer’s Detonator Professional Workstation. It uses Total Liquid Submersion technology to keep it cool and to boost its performance to hyperdrive-like speeds.

Planetarium director Lawrence Mascotti fired up the Detonator about a week ago and school staff soon learned that the computer's reputation for power is not an exaggeration.

They got a surprise while installing Uniview Theater, the complex simulation software that is used to teach astronomy, astrophysics and Earth-based science displayed inside the planetarium's dome.

They expected the huge program to take 22 hours to load onto the new computer. Hardcore's machine handled the task in 15 minutes. The Detonator's warp speed and stellar power is opening new worlds for the planetarium.

“Hardcore Computer helped us transform the current planetarium lab space into a new science center and visualization learning lab," says Mascotti. "As visual beings, the large display format that the Detonator supports has the potential to stir the imagination and communicate effectively and efficiently to students of all ages."

Ex-KTTC building going off the air

The former KTTC-TV building in downtown Rochester is going off the air today as demo crews level the long empty complex.

The building at 601 First Ave. S.W. is in the city's "urban village" district, part of the Downtown Master Plan, and is considered to be part of a University of Minnesota Rochester campus eventually. It is owned by the city.

Fraser Construction is handling the dirty work after being awarded a $69,940 contract by the City of Rochester to demolish it.

Not included in the contract is the demolition of the antenna tower, which would have cost another $11,290. The city might rent space on the tower to cellular phone companies.

Thanks to the Rochester Design Advocacy Forum for the heads that this demolition had started.

Co-op to add more parking with $1.3 million land purchase

Growing popularity of a south Rochester conference center is the driver behind a $1.3 million land purchase to create a new parking lot.

The Southeast Service Cooperative, which is known as the host for community spelling bees and Knowledge Bowl events, closed on a deal Friday to buy a little more than five acres of open land just east of the non-profit co-op's complex at at 210 Wood Lake Drive S.E. That puts it in the shadow of Whistle Binkies South.

It bought the land from the Olmsted Medical Center. Rochester attorney David Pederson of the Wendland Utz law firm handled the deal.

Co-op Executive Director Suzanne Riley said that in recent years the co-op's Wood Lake Meeting Center has been seeing more use from community groups as well as from Southeast Service's membership of schools, cities, counties and other non-profits.

Dale Walston, director of operations for the meeting center, said its use has increased in the past few years.

A marketing push coupled with the center's technology offerings, such as smart boards and projectors in all of its four rooms, have boosted that use, he said.

"We think the potential is there to do even more," Walston said.

But one limitation stands in the way.

"One thing that has been lacking is ample parking space," Riley said. In addition to better serving its clients and members, more parking will put the center in the running to attract meetings that it can't serve now.

The plan is to turn about half of the five acres into a new lot in the spring. That'll add between 200 to 250 spaces to the co-op's current 30 spots.

What about the rest of the unused land, which was bought as a block?

The board of directors is looking for suggestions for possible uses that are in tune with Southeast Service's focus on education and non-profit involvement. One possible example, Riley said, could be allowing next-door neighbor Channel One to use some of it for a garden to raise food for its clients.

While the co-op was formed in 1976, it is still kind of confusing to many. That's easy to understand, because of the wide range of services it offers.

The co-op handles group purchasing and administrative support services for its more than 80 member organizations, which includes 42 schools and other educational institutions.

UMR to outclass ex-eateries with a wrecking ball

The former China Dynasty and Rico Mex buildings on South Broadway will soon be outclassed by the University of Minnesota Rochester.

The buildings at 701 S. Broadway and 617 S. Broadway, respectively, are slated to be "schooled" — demolished — in the next few weeks.

That will be the first step to start clearing the way for UMR to build its proposed 10.5-acre campus during the next 20 years near Soldiers Memorial Field.

This is part of a long-term development plan for downtown Rochester.

"The Rico Mex and China Dynasty properties will be demolished late August or early September," says Sarah Oslund, UMR's director of communications and public relations. "UMR has plans to clean up the site and develop a landscaping plan for the property over the winter months."

Look for that landscaping plan to be put into action in the spring or early summer.

Rochester's Construction Collaborative firm applied to the city for demolition permits for the two buildings last week.

The university currently is based mostly on the third and fourth floors of the University Square mall in downtown Rochester.

UMR purchased the China Dynasty restaurant for $1.025 million in June 2010. The 2,975-square-foot eatery has been empty since a fire in April 2009.

In December 2010, UMR bought the former Rico Mex site for $1.19 million from Z's American Properties of Dallas.

That was after Z's American Properties turned down an offer of $1.06 million.

Rico Mex closed in 2008 after a little more than a year of cooking in the former Burger King restaurant.

Z's had a history of being a tough negotiator. In 2006, it rejected a bid of $896,500 for that building made during a real estate auction by Burger King franchisee Dolphin Fast Food.

The restaurant there closed in 2005 along with seven other BKs after then-franchisee Girish Dharod of Road Corp. lost a dispute with Burger King's corporate.

Dolphin Fast Food later re-opened some of local BKs.
 

Roch. downtown student apts. completed early

Here's some from my columnin today's paper about 318 Commons, the student housing complex being built in downtown Rochester being completed early.

Minnesota lawmakers could take a lesson from some Rochester developers.

While the politicians can't seem to ever accomplish anything before a deadline hits, GH Holdings Inc., is beating the calendar in finishing its massive downtown student housing project, 318 Commons.

When GH Holdings signed a deal with the University of Minnesota Rochester to provide apartments as well as office and classroom space, its deadline was to finish construction of the nine-story apartment complex by the start of August.
 
Now almost exactly a year since its ceremonial ground breaking on July 1, the $28 million building on First Avenue Southwest has been certified as ready for occupancy, says Hal Henderson, who runs GH Holdings with partner Grant Michelitz.

As July rolls along, look for furniture and whatnot to start being delivered to fill out the 98 apartments.

The university is leasing 70 apartments — 148 beds — for $1.4 million a year to house UMR students as the Rochester campus grows. That also includes as space for classrooms, offices, and a student life area.

Henderson says the majority of the apartment leases begin in September, but some will tenants will be able to move in on Aug. 1.

As August nears, 318 Commons takes shape

So as G.H. Holding's 318 Commons student housing project chugs along toward its August completion deadline, it seems plenty of action is bubbling up near it.

Of course, there is the Urban Village project further south on First Avenue near the proposed permanent University of Minnesota Rochester campus.

And then there's the coming demolition of the former KTTC building on the actual campus site.

Now I'm hearing early buzz about some perking in the little building right next to 318 Commons. That's bulding that I think used to house the Fastframe art business.

No idea if a deal is done or even anything is moving forward, but that building is suddenly looking like a pretty good place to be for some sort of downtown business to appeal the young student population that will  be living a few feet away.

Remember this nine-story apartment complex on First Avenue will contain 98 apartments, 70 of those with 148 beds are being leased to the UMR for $1.4 million a year.

 Expected to cost almost $28 million to build, the complex is across First Avenue from the Minnesota BioBusiness Center and Dooley's Pub.

Downtown Roch. student housing deal

As promised, here's more on the new deal for manging Rochester's new downtown student housing complex.

The full piece is in my column today.

If this project seems interesting, watch for the Minnesota Commerical Association of Realtor's breakfast discussion about it Wednesday.

It is sponsoring a case study discussion at 9 a.m. Wednesday at the Hilton Garden Inn with all of the players involved in this like developer Hal Henderson of G.H. Holdings and Mike Denny of the University of Minnesota. I know 9 a.m. the morning after election day seems like a kind of a tough time, but this could be interesting.

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A new apartment complex being built in downtown Rochester brings together two of Mike Peter's favorite things: student housing and his hometown of Rochester.

 "This is an exciting opportunity," says Peter, who is a 1984 Mayo High School alum. "I think probably a third of my family works for Mayo Clinic."

Peter is co-founder, president and CEO of Campus Advantage, a national student housing management firm based in Austin, Texas.

His seven-year-old company currently manages more than 30,000 beds at 52 locations in 21 states, as well as consulting with locations in Russia, Germany, the United Kingdom and Canada.

Last week, Campus Advantage signed on to manage the nine-story 318 Commons student housing complex being built on at 318 First Ave. S.W.

That means Campus Advantage will handle leasing, marketing, upkeep and residence life services for the complex.

"There's a big difference in housing students and student housing. It is a lot more than putting them in a box and collecting rent," Peter says.

Management co. with local ties takes on Roch.'s 318 Commons

As  the University of Minnesota Rochester student housing and general apartment complex being built on First Avenue  continues to rise in downtown Rochester, a new deal just wrapped up for national company to manage it.

Called 318 Commons, G.H. Holdings is building the almost $28 million nine-story apartment complex. It is slated to include 98 apartments, ranging in size from three-bedroom units to efficiencies, as well as space for classrooms, offices, and a student life area.

U of M is leasing 70 apartments -- 148 beds -- for $1.4 million a year to house students as its Rochester campus grows. G.H. Holdings, a partnership between Hal Henderson and Grant Michelitz, plans to have the complex ready to use by the start of the 2011 school year.

  Now an Austin, Texas-based real estate company called Campus Advantage is signed up to manage 318 Commons. Campus Advantage manages more than 30,000 beds, at 52 locations in 21 states nationwide.

Adding another hook to this is the fact that Campus Advantage was founded and is run by a guy who grew up in Rochester and attended University of Minnesota.

His name is Mike Peter. I should be chatting with him or tomorrow, so watch for updates.

Here's a quote from the press release that rolled out Tuesday.

"These new start-ups are evidence that certain sectors of the real estate industry are beginning to thaw and attract new investment," said Mike Peter, President and CEO of Campus Advantage.  "We welcome these new communities to the Campus Advantage family, and expect more to join soon."

The complex is across First Avenue from the Minnesota BioBusiness Center and Dooley's Pub.

The complex will also include some retail and restaurant space. Long-empty buildings that last housed the Affiliated Group and the Ultra Lounge bar were scraped off of First Avenue to clear the way for the project.