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883 posts categorized "Mayo Clinic"

May 20, 2016

Mayo Clinic Ventures looks to Israel for collaborations

Looking to help boost a variety of medical start-up businesses, Mayo Clinic Ventures is targeting collaborations and investments in Israel with a new program.

The goal of the Mayo Clinic Israeli Startup Initiative is to work with companies either through sponsored research grants or co-development.  

Flags"Co-development can include licensing of Mayo Clinic know-how or an investment," explained Timmeko Love, of Mayo Clinic Ventures. "It's about matching the right opportunities with Mayo Clinic know-how for collaboration. It's all about finding the right strategic fit."

Candidates for the Israeli Startup Initiative can include very early stage companies to ones that are much further along in development. They can work in any area of health care. 

"We're not limiting our options," Love said.

The project announced this week actually is a new phase of an existing Mayo Clinic initiative.

It has been active in Israel for about a year, partnering with the philanthropic Merage Institute. The California-based Merage Institute awards up to $150,000 in annual research grants for Israeli companies working with Mayo Clinic. The most recent recipient was EyeYon Medical, which makes a noninvasive medical device to treat corneal edema.

Mayo Clinic Ventures recently took on the Israel initiative and that has put co-development on the table. That new approach is being launched next week in Tel Aviv at IATI-Biomed, Israel’s largest life sciences and technology conference. Mayo teams will meet start-ups to study their technology, and then consider making investments or collaborations.

This is first time Mayo Clinic Ventures has focused on one whole country for business opportunities, despite its long history of international projects. Many might not be aware of it, but Israel is a logical candidate for a such a relationship.

"It's a natural next step for us," Love said.

Israel is considered to be the worldwide leader in innovation in medical devices, biopharma, software and other types of health-care businesses. The U.S imported $600 million of Israeli medical devices in 2011. In 2015, Israel housed 725 medical-devices businesses with an overall total of 1,380 life-sciences companies.

While California's Silicon Valley is known as the hottest spot in the world for business start-ups, Israel is recognized as a close second. A 2009 book, "Start-up Nation," documents how Israel, with a population of 7.1 million, generates more tech businesses than many much larger countries.

"It's kind of a national sport in Israel," said Guy David, a professor of health-care management at University of Pennsylvania’s Wharton School. He was born and raised in Israel and tracks its medical businesses closely.

David said Israel's required military service coupled with an environment that encourages questioning and taking risks is a big factor.

"Israel is hugely innovative. The innovative spirit starts at a very young age," he said.

While launching technology companies is a big focus in the country, the entrepreneurs all know the market for their products or services is elsewhere.

"There is no market in Israel. Israel is tiny," said David. "If they invent something, they know it has to be a global product."

Does that mean businesses partnering with Mayo Clinic could open offices or build facilities in Rochester?

"That certainly could be a possibility. We do look at an economic development when considering companies," said Love. "But it has to make sense for that company. There would need to be a business reason for it."

 

May 10, 2016

$100 million development proposed near Saint Marys

A more than $100 million housing and commercial development is proposed for a high-profile corner of Second Street Southwest, next to Mayo Clinic's Saint Marys campus.

Development1The plans call for a 13-story building with two levels of underground parking to be built on more than two acres at the southwest corner of 14th Avenue Southwest and Second Street.

The Brentwood on 2nd and the Ray-Mar Motel stand on that corner. The hotels, along with some nearby houses, will be demolished to clear the way for the project. The Brentwood also houses several businesses, including City Market, Charlie’s Eatery & Pub, A Shared Smile and the Healing Touch Spa.

05-09 4Brentwood enWhile some details could change as it goes through the permitting process, the proposal includes 359 housing units with 310 "luxury" apartments in the tower and 49 connected townhomes.

The plan also includes almost 900 parking spaces, some of which will be public. The townhomes will act as a buffer between the parking and the Folwell neighborhood. The developers hope eventually to connect the project to Saint Marys Hospital via subway.

The tower on the corner is expected to include about 20,000 square feet of commercial space, including 13,000 square feet on the street level that will encourage sidewalk traffic with a restaurant and retail.

Development3"This project is completely different from than anything that has ever been built in Rochester," said longtime local developer Ed Pompeian. "This beautiful building will be first thing you see coming into Rochester from the highway, heading into the medical corridor."

Pompeian, along with his son, Nick, is partnering with a Twin Cities real estate development firm,  Alatus LLC, to create this project. The Pompeians lead a local investment group, 1406 Second Street Associates, which controls the hotels and all of the property where the project will be built.

Mayo Clinic is not directly involved with the project at this point.

'An amazing beacon for the area'

Alatus is well-known for handling massive developments, such as Mayo Clinic Square, Latitude 45 Apartments and The Carlyle condos in Minneapolis. It is led by founder Bob Lux.

"I think it's going to serve as an amazing beacon for the area," said Chris Osmundson, the Alatus senior development associate working on the project. "In real estate, it's always location, location, location, and this one's got it."

The Pompeians and Alatus have been working on this plan for about two years. They now are bringing it to the city for pre-development meetings, followed by the approval process. If everything goes well, they could start clearing the site for construction sometime this summer or early fall.

Estimating a 16- to 18-month construction period, Osmundson said it's possible the project could be finished by spring 2018.

This is the first major project pitched for that area since the implosion of a proposed Holiday Inn hotel complex late last year. That project struggled though the planning process and was criticized by some neighborhood groups.

However, these developers are optimistic, after getting positive feedback from the Folwell, Kutzky and Historic Southwest neighborhood associations.

"It was very refreshing for everybody. Support was literally unanimous from the neighborhoods. Great things can happen, if you take the proper steps," said Nick Pompeian.

Talks started more than a year ago

Don Nordine, president of the Folwell Neighborhood Association, said the developers started talking to his group about a year and a half ago.

"We like the project, even though it is really big," he said. Folwell includes 200 houses, while the project will have 359 apartments and townhomes.

While the group supports the project, that doesn't mean they still don't have some concerns, said Nordine. The public parking aspect of the development has residents worried about traffic.

"The city and the developer have to get this right. We want this to keep this neighborhood residential and quiet. I think they are open and honest, but the devil is in the details," Nordine said.

Jesse Welsh, president of the Kutzky Park Neighborhood Association, is also positive about her interaction with Alatus and the Pompeians so far. While they have not been able to schedule an official presentation with her association yet, Welsh sat in on a Folwell meeting and spoke with Lux. She plans to brief her association on the project at a neighborhood meeting tonight. Members of the independent Imagine Kutzky advocacy group also sat in on meetings and were supportive of what they heard, she said.

Traffic is also a concern for the Kutzky neighborhood, but overall, Welsh was pleased with Lux's approach.

"What impressed me the most was how well they've worked with Folwell. They understand how critical it is to work with the neighborhood," she said.

 

April 12, 2016

Mayo Clinic sells 4 lots for $720,000

Everyone knows lots of properties are selling in Rochester, though, in many cases, only the buyers know what is coming next.

Saint-marys-8colMayo Clinic sold three open lots plus one with a 97-year-old house in southwest Rochester for $720,000 on the final day of March.

The four parcels are on 14th Avenue Southwest, which runs along the west side of Saint Marys Hospital. Olmsted County estimates the total value of the real estate at $140,000.

Here's what Mayo Clinic had to say about the deal.

"We did sell four parcels recently (313, 317, 323 and 327 14th Ave, SW) to '1406 Second Street Associates.' You will need to contact the buyer’s representatives for any additional info/comment on their plans for the parcels," wrote Ginger Plumbo, of Mayo Clinic Communications, in an email response to questions.

Rochester developer Nick Pompeian, who owns the Brentwood on 2nd and Ray-Mar hotels at the corner of 14th Avenue Southwest and Second Street, is a representative of the local investors behind 1406 Second Street Associates.

He confirmed the purchase Monday, but couldn't discuss any future plans for the new property.

However, the real estate does seem to support the longtime buzz that a major redevelopment is coming for that ever-so popular block. 

As Destination Medical Center very slowly ramps up, the prospect of sitting in the shadow of Mayo Clinic's busy hospital has a lot of people eagerly putting together potential deals.

March 04, 2016

Mayo Clinic to issue $300 million in bond

Mayo Clinic is issuing $300 million of taxable bonds this month raise funds for "general corporate purposes."

A 200-page preliminary offering memorandum was filed March 3. The bonds are being offered in denominations of $1,000 "and integral multiples thereof…." Starting on Nov. 15, 2016, interest on the bonds is payable every May 15 and Nov. 15.

Mayobonds"Mayo will use the proceeds of these bonds for general corporate purposes," according to Mayo Clinic's Susan Barber Lindquist.

Mayo Clinic, which has AA ratings from Moody's and Standard & Poor's, regularly issues taxable bonds and tax-exempt bonds to fund projects. More bonds are scheduled to be issued this spring.

"In early May, Mayo also plans to issue $250 million of tax-exempt variable rate bonds, the proceeds of which will be used to refund $200 million of fixed rate bonds issued in 2006 through municipal authorities in Jacksonville, Florida; and Rochester; and for new projects in Rochester," wrote Barber Lindquist in an email statement.

She added that, "Mayo also plans to retire the $50 million of tax-exempt fixed rate bonds  issued in 2006 through Maricopa County, Ariz. The 2006 bonds are subject to optional redemption on May 15, 2016."

Through refunding and retiring bonds, the end result should be that the "… Total net new debt of Mayo Clinic will not exceed $300 million," she wrote.

The March 3 bond memorandum included an independent audit of Mayo Clinic. That audit spotlighted many aspects of Mayo Clinic's operations.

• $281 million in revenue from "Retail pharmacy sales" in 2015. That is up $30 million from $251 million in 2014.

• $31 million in revenue from "Graduate Medical and Other Education." That is down $10 million from $41 million in 2014.

• $38 million from "Cafeteria Revenue" in both 2015 and 2014. It made $31.8 in 2011.

• $65 million in revenue from "Royalties." That an increase from $52 million in 2014.

• $41 million in revenue from "Retail stores" in 2015. That's sharp increase from the $20 million in retail store revenue reported in 2014.

• $14 million in revenue from "Oil- and gas-producing activities. That's a decrease from $24 million in 2014.

• $73 million of "Charity Care" was provided to patients in 2015. That is down from $76 million in 2014.

• Mayo Clinic reported $6 million in income taxes, "including interest and penalties for uncertain tax positions" for 2015. The filing added, "It is not anticipated that a significant change in the reserve will occur over the next 12 months."

January 08, 2016

ArchMN mag's take on Mayo Clinic's DMC plan

20141216_dmc01_53Over the past few years, many publications have analyzed, dissected and speculated about Mayo Clinic's proposed Destination Medical Center plan.

And now Architecture MN magazine has published its own take on the plan in an article by Thomas Fisher. He looks at the plan and chats with DMC's lead urban designer Peter Cavaluzzi of the New York firm.

Here are a few excerpts that caught my eye:

• "One of them —Discovery Square—will provide a place near the Mayo Medical School for technological development and entrepreneurial spin-offs from the school and the Mayo Clinic. That integration of research and practice, innovation and application, fits the Mayo model perfectly, and Discovery Square may, ultimately, do the most to secure the economic future of the city, as start-up companies emerge and grow. The Perkins Eastman master plan calls for an open space at the center of this district, above which skyways converge into an elevated glass building that, while a good idea, looks too big for the space and a bit ominous in the renderings."

6a00d83451cc8269e201b7c791bc82970b-300wiIt's nice to hear an expert question the big glass structure slated for Discovery Square. My uneducated eye has always thought that it looks like a big, glass "Independence Day"-like spaceship landing on downtown in the renderings. However, I have never be very good at visualizing what development projects will look like in reality.

• "Another big move in the master plan—the Downtown Waterfront—links the government center and the civic and art center with pedestrian-friendly plazas that open up to a widened Zumbro River, finally freed from its current flood-control channel to become a real asset for the city. This district’s sweeping set of bridges, embankments, and buildings will break Rochester’s insistent street grid and provide a place for community events and celebrations that today have few options for outdoor venues. A grand gesture like this doesn’t happen without controversy, however. Some have questioned the planned removal of the existing public library near the river, even though, as Cavaluzzi observes, the library had already begun to look at moving, having outgrown its small, nondescript building."

Hhmmmm.... I have never heard the Rochester Public described as a "small, nondescript building" before. I guess it is a matter of perspective.

Read the full ArchMN article here.

 

December 16, 2015

New Stewartville firm to collaborate with Mayo Clinic

A new medical device company launched by well-known local experts is joining forces with the top health care name in the region - Mayo Clinic.

Minnesota Medical Technologies, recently started by Jim and Philip Conway, announced this week that it will collaborate with Mayo Clinic in the development of new fecal incontinence products. As part of the deal, Mayo Clinic will have some ownership of Minnesota Medical Technologies.

5627967a5e7bd.imageThe Conways have experience working with Mayo Clinic at their former company, Rochester Medical, which made catheters and urinary incontinence products.

"We are pretty expert in fabricating and designing devices, but we can't pretend to experts in the medical field. That's why working with Mayo Clinic makes sense," said Jim Conway. "It's very likely when we get our first patents, a Mayo Clinic name will also be on it."

The Conway brothers, along with partners Lonnie Boe and Sarah Grinde, are building a 6,500-square-foot pilot manufacturing facility in Stewartville's Schumann Business Park. Jim Conway says the goal is to start using the building sometime in April with early prototype production starting soon after.

"We're shooting to get FDA approval by the end of 2016," he said.

Minnesota Medical is already working on the early groundwork to develop a dual U.S.-European market for these new products. Like when they entered the catheter field in 1989, the Conways see a lot of opportunity to develop better products in area where there is a lot of need.

Fecal incontinence affects an estimated 1 percent to 2 percent of the general population and 40 percent to 50 percent people living in long term care facilities. U.S. sales of fecal incontinence products is predicted to hit $1.9 billion by 2018. Minnesota Medical is targeting 10 percent of U.S. and international sales, a goal they hit with Rochester Medical and urinary incontinence.

Rochester Medical grew into a major international manufacturer with hundreds of local employees and more than $60 million in annual sales. In 2013, the Conways sold it to rival C.R. Baird for $262 million. They signed a five-year, non-compete agreement not to make urinary incontinence products.

December 09, 2015

Is Medisun's interest in Rochester cooling?

Of the three most expensive real estate listings for houses for sale in Rochester, two are owned by a Hong Kong billionaire who has not ever lived in them.

Danny Wong is the CEO of Medisun International Holdings Ltd., which is collaborating with Mayo Clinic to bring more Chinese patients to Rochester. Medisun also is a major investor in Celyad, formerly Cardio3, which is leasing an empty floor of the Minnesota Biobusiness Center in downtown Rochester.

734c36a08cc30596-4066082Wong purchased large Rochester residences at 615 10th Ave. SW and 2515 Crest Lane SW in the fall of 2014. He paid $1.3 million and $1.4 million, respectively. At the start of this year, Medisun announced a deal with Mayo Clinic.

"The medical service will be provided by Mayo, and everything else will be provided by Medisun," said then-Medisun spokesman Dr. Jason Zhang in January.

While in Rochester this summer, Wong had his photo taken at Mayo Clinic with local leaders, including developer Gus Chafoulias and Mayo's Lisa Clarke, who leads the Destination Medical Center initiative.

However, Medisun's interest in Rochester seems to have cooled a bit since then.

By summer, Medisun halted construction of a $1 million office on the west corner of Titan Development's H3 Plaza. The offices were slated to span part of the second and third floors of the building at 300 Broadway.

00e2d817d5550daa56a1d0ade5d78548l-m0oMayo Clinic commented at the time that Wong planned to use one of his two Rochester estates as a guest house for the Chinese patient venture. Construction to an indoor pool at 2515 Crest Lane SW began around that time.

That guest house project seems unlikely now, because Wong has listed both of his Rochester estates for sale. The 2515 Crest Lane SW house is priced at $1.7 million, and the 615 10th Ave. SW is listed at $1.4 million. If they sell at the list price, Wong will make $400,000 on his short-term investment.

Only one Rochester property currently is listed at a higher price — $2 million — than Wong's estates, according to the MLS listings. A total of 10 residences in Rochester currently are priced at more than $1 million.

Does the sale of these estates signal any changes in Medisun's relationship with Mayo Clinic? No one from Medisun was available for comment, but Mayo Clinic said nothing has changed.

"… We continue to work with the MediSun on specific engagements," stated Mayo Clinic spokeswoman Duska Anastasijevic by email Tuesday.

While those "engagements" continue to develop, there are two nice Rochester estates available for local home buyers.

November 18, 2015

After demolition, what next for Ronald McDonald House project?

Rochester's Ronald McDonald House plans to demolish two apartment buildings on Second Street Southwest to make way for a possible future project.

Demolition permits were filed for the apartment buildings at 806 and 812 Second St. SW, just east of the Ronald McDonald House at 850 Second St. SW. The nonprofit McDonald House acquired the buildings in January in conjunction with Mayo Clinic, which is partnering on the deal.

564c8711dd9b4.imageThe 35-year-old Ronald McDonald House provides housing for children and their families who are in Rochester for medical treatment at Mayo Clinic. It can house up to 42 families at one time. In 2014, it served 795 families, but had to turn 1,071 families away.

The facility's last expansion was 11 years ago.

"Our Board of Trustees is committed to serving more families," according to Marit Williams, the Ronald McDonald House's communications and community relations coordinator. However, she would not say if the demolition will make way for a future expansion.

"We are committed to serving more families, and in order to allow us to continue focusing on the best possible way to do that, we do not have any expansion-specific information to share publicly at this time," Williams wrote in response to inquiries. "The land is intended to help us continue providing a home-away-from-home and caring support for more families in the future. There are no commercial development plans."

Whatever the future holds, the next step in the project is to knock down the two 1960s brick apartment complexes. Williams confirmed both buildings now are empty of tenants.

"We do not have a firm date for the demolition, but we expect this activity to happen in early winter," she wrote in a recent email.

Both buildings were officially acquired on Jan. 30. The 812 Second Street Street property was purchased by the Ronald McDonald House in a pair of separate deals for $825,500 and $137,500. 

A similar series of transactions occurred for the 806 Second Street building. The Ronald McDonald House paid the estate of John T. Oliphant estate $890,000 on Jan. 2, 2014.

Mayo Clinic then paid the Ronald McDonald House $1 million for both properties on Jan. 30 of this year, according to Olmsted County Property Record.Both the Ronald McDonald House and Mayo Clinic are listed as owners of both apartment complexes.

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 19, 2015

Does Mayo Clinic + ex-US Postal center = dirty laundry?

Is dirty laundry in the mix as Mayo Clinic figures out how to use the ex-U.S. Postal Service facility it bought in July?

The buzz in the local spin cycle is that Mayo Clinic might convert the 72,662-square-foot facility at 3939 Valleyhigh Drive into a commercial laundry. Right now, Mayo Clinic contracts with the Kahler Hospitality Group's Textile Care Services to clean the mountains of dirty linen it produces every day.

FireShot Capture - 3676 Valleyhigh Dr NW - Google Maps_ - https___www.google.com_maps_@44.0579The original Kahler Hotel owners and Mayo Clinic started TCS in 1918 as a joint operation. Mayo Clinic pulled out of ownership in 1996 and has contracted with Textile Care ever since.

Officials at Textile Care had no comment on the rumor. Mayo Clinic didn't really answer the question, but it did offer up a cryptic statement.

6a00d83451cc8269e2014e889d360b970d-800wi"No decisions have been made regarding use of the former U.S. Postal building. Mayo Clinic has an agreement with Textile Care Services that extends into 2018 and potentially longer," wrote Mayo's Kelley Luckstein in an email.

So … does that mean maybe? I guess it'll all eventually come out in the wash.