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149 posts categorized "Non-profits news"

September 12, 2016

Mayo Clinic buys 2 Rochester properties for total of $10.2 million

Sold-signMayo Clinic must have had some money burning a hole in its pocket on Sept. 1.

On that day, Mayo Clinic bought a northwest Rochester building for $10 million and a house in southwest Rochester for $217,000.

I'm waiting for response from Mayo Clinic about their plans for those buildings. I should have more soon.

June 29, 2016

Mayo Clinic tech doesn't fare well in Celyad/Cardio3 study

Sometimes lost opportunities are actually positive things. 
The City of Rochester really wanted rock star Belgium biotech Celyad/ Cardio3 to build a manufacturing facility here to handle the Mayo Clinic-created C-Cure stem cell cardiac treatment.
CelyadThat fell apart, when Celyad/Cardio3 pulled out of its plan to take over the fifth floor of the Minnesota Buiobusiness Center.
However, this week that looks like a good thing. Rochester make have ducked being stuck with a half built facility after the results of the latest study of C-Cure.
A Chart 1 Phase 3 study found that no difference between patients treated with the C-Cure and those given a placebo.
Here's how an article on the Seeking Alpha investment news site described the situation:

The failure of a pivotal trial of its heart failure cell therapy C-Cure, erased 38% from the Belgian company’s valuation this afternoon, an outcome that will make its search for a partner considerably harder.

Indeed, without a partner the project is effectively dead, as Celyad confirmed today that it would not conduct further clinical work alone.


The Chart-1 phase III study failed to show this: it recruited 271 patients with chronic advanced symptomatic heart failure, and compared C-Cure against sham treatment. The primary endpoint was a composite of mortality, morbidity, quality of life, six-minute-walk test and left ventricular structure and function at 39 weeks, and on this measure C-Cure patients failed to show any difference versus placebo.

That must be pretty disappointing after nine years of promising results.
 Celyad/Cardio3 licensed stem-cell research by Mayo Clinic's Dr. Andre Terzic and Dr. Atta Behfar in 2007. It was called Cardio3 Biosciences back then. They have collaborated for years on the cardiopoiesis technology the company uses to repair patients' hearts by re-programming their own stem cells to regenerate cardiac tissue. Mayo Clinic owned 2.69 percent of Celyad as of March 3, 2015.
However, Celayd bought an NKR-T cell platform from Celdara Medical in 2015. It appeared that the company very quickly turned away from C-Cure to focus on the new area. That is looking like the saving grace for Celyad today.

 All of which would have been disastrous if not for the presence of its fledgling immuno-oncology pipeline, which no doubt prevented an even bigger share price collapse.


Further data updates are expected in the coming months, and indeed this afternoon Celyad’s chief executive, Christian Homsy, ended a conference call discussing the C-Cure results by flagging approaching good news in oncology. Given the relatively small amount paid to access this technology and the huge hopes for the adoptive T-cell space, investors could indeed soon forget the C-Cure failure.

June 27, 2016

Mayo Clinic announces Transplant Genomics deal

It looks like Mayo Clinic is joining forces with a Pleasanton, Calif.-based (previously of Massachusetts) firm to bolster its genetic testing to predict the success of organ transplants.

Logo-2-ret1Here's the vague description of the deal announced in a general press release this morning:


Transplant Genomics Inc. is collaborating with the Mayo Clinic Center for Individualized Medicine to develop, validate and commercialize diagnostic tests enabling personalized immunosuppression for solid organ transplant recipients. This multiyear collaboration includes an assessment of TGI's TruGraf test for renal transplant monitoring, a Mayo Clinic investment in TGI, and the co-development of new tests and technologies for additional targets, including exploratory studies in heart and liver transplantation.

This seems like this could be an interesting project. I wonder how long Mayo Clinic has been working with Transplant Genomics. 

It also would be fascinating to know how much Mayo Clinic is investing in TGI as well as how long this "multiyear" deal is slated to last.




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." 


June 06, 2016

Developer to pay for extension on Golden Hills School deal

A Twin Cities-developer interested in buying an old Rochester school building says it needs more time to put a plan together.
GoldenhillschoolRyan Cos. signed an agreement last fall to buy the former Golden Hill School building for $1.8 million from Rochester Public Schools. The empty 36,000-square-foot building is located at 2220 Third Ave. SE.
Mark Schoening, Ryan's senior vice president of national retail development, described the tentative plans in September as "…Bringing additional retail to that part of Rochester."
However, Ryan Cos. did not complete its due diligence on the property by a May 31 deadline. That's why the Rochester School Board is slated to vote on a request from Ryan at tonight's meeting to extend that period to Sept. 30. Ryan is willing to forfeit $25,000 in "earnest money" to pay for the extension.
Assuming the school board approves the extension, Ryan pledges that if needs more time before Sept. 30, it will forfeit another $25,000 to extend the deadline to Dec. 31.

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_ -

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_ - 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.