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144 posts categorized "Non-profits news"

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."

December 30, 2015

Squeezed #rochmn nonprofit to buy bigger building for $1.3 million

A popular Rochester nonprofit with space issues is closing on the purchase of a $1.3 million office building this week.

Family Service Rochester is buying the former Re/Max Results headquarters at 4600 18th Avenue N.W. The Eden Prairie, Minn.-based Re/Max Results moved out the 24-year-old building last summer, when its new complex at 4123 26th St. N.W. was completed.
FireShot Capture - 1120 Civic Center Dr NW - Google Maps_ - https___www.google.com_maps_@44.0281

The nonprofit provides services such as child welfare, family stability, mental health and individual and couples counseling as well as managing the local Meals on Wheels program.


"We've been out of space and exploring options for the last few years," said FSR Executive Director Scott Maloney. "It will double our square footage and give us conference room space that we don't currently have."

Remax exteriorFamily Service Rochester has been based in the former Home Federal Savings Bank building at 1110 Sixth St. NW on Civic Center Drive by Barlow Plaza for 13 years.

Maloney estimated his 28 office team members could move to the new location by early June, if the renovation goes as planned this spring. Family Service Rochester has 85 employees overall.

"We like the neighborhood and the location," he added. "That location also accommodates our parking needs, which has been stretched for years."

Braasch Commercial Real Estate is handling the deal. FSR is buying the complex from Rochester developer John Klopp's High Springs Inc. Klopp's firm bought the 24-year-old building in November for $1.1 million.

While Family Service Rochester works on its plan for the move, the next step is sell its current location. Maloney says an offer is pending for the former bank building. It is listed for $1.3 million.

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.

October 05, 2015

More Goodwill for Rochester

The new Goodwill thrift store is going up quickly in northwest Rochester.

10042015goodwillThe framework of the new 28,000-square-foot stands at the corner of 19th Street Northwest and Scott Road Northwest. That's the 19th Street entrance to the Costco commercial area. The store is slated to sit opposite the Kwik Trip station across Scott Road.

It's being built by a Minneapolis developer, The Driessen Group. The nonprofit Goodwill organization has not commented much about the project, but the unofficial buzz is that this new store will serve as a second Rochester location.

In 2008, a Goodwill store with 15,000 square feet of retail space was built at 239 28th St. SE in the Broadway Commons commercial area. The nonprofit organization moved into it after leaving its old Rochester spot at 660 37th St. NW. 

September 02, 2015

Golden Hill School sells for $1.8 million

GoldenhillschoolWhile I'm on a roll of reporting Rochester commercial building sales, here's an item from my colleague Taylor Nachtigal's Notebook piece from last night's Rochester School Board meeting.

We're checking with Ryan Cos. about what the plans are for the property. Ryan was the developer behind the Rochester Marketplace/ Target North/ Home Depot commercial area, but they sold that off a few years back.

Whatever happens, I'd say it's a safe bet that the worn-out, 36,000-square-foot ex-school building is not long for this world.

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The Rochester school board on Tuesday unanimously approved the sale of the district's Golden Hill School to Ryan Cos. of Rochester for $1.8 million.

The property, at 2220 3rd Avenue SE, last served the district as an alternative learning center, but programming was moved to another site after Golden Hill suffered heating and ventilation problems.

 

 

September 01, 2015

Celyad, Medisun collaborating on new China deal

Two international firms with deep Mayo Clinic and Rochester ties are joining forces for a new $22.4 million collaboration. 

Belgium-based Celyad, formerly called Cardio3, announced Monday it's entering into a new venture and distribution deal with its partner, Medisun International Limited, for its C-Cure cardiac treatment. C-Cure is based on stem-cell technology called cardiopoiesis licensed from Mayo Clinic.

CelyadBoth Celyad and the Hong Kong-based Medisun continue to collaborate with Mayo Clinic and both are in the process of creating facilities in Rochester.

This new 15-year agreement between Celyad and Medisun guarantees Celyad will "conduct all clinical development and undertake any regulatory steps necessary for market approval in China, Hong-Kong, Taiwan and Macau (collectively 'Greater China')," according to a news release about the venture.

Medisun will fund that push with a minimum of 20 million Euros, or $22.4 million. In addition to the funding cash, Celyad will collect royalties and profit sharing. The royalty rates, based on the total revenues from C-Cure, are expected to range from 10 percent to 30 percent. Profit-sharing amounts will be based on total revenues after royalties are taken out. The profit sharing is expected to range from 20 to 25 percent.

"We are pleased to have this new license agreement in place with our local partner Medisun, which give us full control over clinical developments in these territories, fully funded by our local partner. Pending receipt of necessary approvals, we look forward to giving access to this technology to patients in Greater China," stated Celyad CEO Christian Homsy in the release.

6a00d83451cc8269e201b8d0c98293970c-120wiCelyad is paying rent on the entire fifth floor, or 14,963 square feet, in the city of Rochester's Minnesota Biobusiness Center. The city signed a lease with Celyad earlier this year for it to develop a prototype manufacturing facility in the downtown building. Construction has been underway for months, but is not yet completed. The five-year lease calls for Celyad to pay a rent of $18 per square foot, or $22,444.50 per month. The city agreed in the lease to pay for $600,000 in equipment and improvements to the space.

Local officials hope to convince Celyad to build a 100,000-square-foot manufacturing facility with 350 employees in Rochester, according to officials at Rochester Area Economic Development Inc.  Celyad also has plans to build a U.S. headquarters in Boston.

The company recently reported a $17.04 million loss for the first half of 2015. It lost $18.1 million for the whole year in 2014, up from $15.9 million in losses in 2013. Dr. Homsy told Reuters last week the company has enough cash to make it through the end of 2017.

The company did an initial public stock offering in 2014, which yielded about $500,000 worth of shares for Mayo Clinic.

Medisun also is collaborating with Mayo Clinic on a project to bring more patients from China to Rochester for treatment. While Medisun began building a $1 million office in the H3 Plaza building in downtown Rochester earlier this year, it recently put an end to that project.

Mayo Clinic, however, has confirmed it still is working with Medisun. Mayo Clinic spokeswoman Duska Anastasijevic said she didn't believe "the scope and nature of the relationship has been impacted or altered, just the planned location of their offices has changed." 

She added that Mayo staff working with Medisun said the company will be using one of its Rochester homes as "a guest house" and headquarters for the project. Medisun CEO Danny Wong personally owns two houses in Rochester. He bought a house at 2515 Crest Lane SW for $1.4 million as well as one at 615 10th Ave. SW for $1.31 million. It is not known which property will serve as the guest house.

August 20, 2015

Popular TEDx Talks coming to Rochester

A local group is looking for people who have "compelling ideas that can change the world" to launch a new TEDx Talks event in Rochester.

"It's a great platform for ideas that matter," said Ben Creo, co-organizer of TEDxZumbroRiver.

The organizers are announcing their plans for a spring event this evening at Thursday on First & Third. 

CQkbamygIn the past several years, intellectually challenging speeches on a wide variety of concepts have grown very popular through the TED Talks events in California.

The idea of the modern version of Toastmasters is simple. After applying for the opportunity, a person is chosen to speak to a live audience on their topic for three to 18 minutes. The talks are recorded, and TED Talks post them online to reach as many people as possible.

Starting in 2006, the short and often impassioned speeches have exploded in popularity with the YouTube generation. By 2012, TED Talks online video had tallied 1 billion views. This summer, TED.com posted its 2,000th talk online.

After hearing local young professionals talk about how much they liked the popular TED Talks, Creo and co-organizer Barbara Spurrier went through the detailed application process applied for and received a license from the national nonprofit group.

"Rochester is a fantastic city and an intellectual capital of the Midwest. Let's showcase our city to the world," stated Creo in the press announcement. "It's time for Rochester to have a TEDx, and now, we will."

Rochester is cleared to host events with more than 100 audience members. Spurrier, who is the administrative director of Mayo Clinic's Center for Innovation, says this shows the confidence in Rochester because TED starts most franchise groups off with audiences of only up to 100.

Creo and Spurrier are hoping to attract a crowd of about 1,000 for the inaugural TEDxZumbroRiver event in the spring of 2016. They expect to have about 20 people speaking. No local venue has been finalized to host it yet.

Every speech will be recorded and sent to the head TED organization to be posted on its website.

Part of TED's rules include that no local organization, such as Mayo Clinic, can control or dominate the talks. Organizers say don't expect an event dominated by well-known local leaders.

"It needs to be community-driven," said Spurrier. "We're trying to reach across the community to create a holistic program."

All topics are on the table, with nothing being banned as a potential speech. The focus will be on fresh, energizing ideas. While the event will be based here, speakers can come from beyond the Rochester area.

TEDxZumbroRiver has speaker applications on its website at www.tedxzumbroriver.com. Creo said the applications will be "curated" by a group of about 12 volunteers.

"Right now, the focus is on finding compelling ideas," he said.

July 29, 2015

More on Mayo Clinic + US Postal facility

 So the Post-Bulletin is not the only Minnesota media to take note of Mayo Clinic's recent $2.11 million purchase of the unused U.S. Postal Service center at 3939 Valleyhigh Drive.

PostalcenterOn July 17, Mayo closed the $29.13 a square foot deal on the northwest Rochester property, which the US Post Office closed in January. I wrote an article about it on July 21.

The Twin Cities business newspaper, Finance & Commerce, spotlighted the deal in it's "Minnesota Snapshot" real estate feature in its July 23 issue.

While Mayo Clinic still hasn't worked out what it will do the building that it purchased, the Finance & Commerce piece by Anne Bretts does provide some new insight into how the deal played out.

Chris Gliedman, of the Minneapolis-St. Paul office of CBRE Group, which has a national contract to represent the USPS.

Gleidman and colleague Mike Marinovich most recently marketed several properties that became available after the Postal Service consolidated many of its operations in Eagan, where the USPS expanded an existing facility to create a 950,000-square-foot regional processing center.

The move affected facilities throughout Minnesota and into Wisconsin.

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The Rochester property went on the market in January 2014.

“We had pretty good interest,” Gleidman said.

In fact, he was in discussions within months and had it under contract by fall. The buyer withdrew, however, leaving Gleidman and Marinovich to start over. Before they could put the building back on the market, Mayo made an offer. It was lower than the original offer, but the deal carried no risk, Gleidman said.

“We felt very comfortable that Mayo Clinic was going to deliver,” Gleidman said.