News Business Sports Entertainment Life Obituaries Opinion
Jobs Homes Cars Classifieds Shopping

Search PB Blogs

Loading

Categories

1394 posts categorized "Retail news"

June 10, 2016

More Dunkin' Donuts coming southern Minnesota

Two years after making a flashy return to Minnesota with a Rochester shop, Dunkin' Donuts has signed a franchise agreement to bring three more locations to the region.

The Massachusetts doughnut maker announced Thursday that it has signed a deal with new franchisees Oliver Schugel and David Schooff to open three new restaurants in Mankato. The first one is slated to open in 2017.

06232014dunkindonutsMankato is leaping ahead of Rochester, which was expected to have about five locations by now. 

Rochester Retail Services, a division of the Kahler Hospitality Group, opened a shop here in June 2014 at 15 First Ave. SW in its Kahler Grand Hotel complex in the heart of downtown. It was the first one in Minnesota since 2005. Dunkin' said then that Rochester Retail Services would be opening five more shops in the next few years.

That changed last fall, according to Dunkin' Donuts Senior Director of Franchising Patrick Cunningham.

"Rochester Retail Services, the franchisee of record, will continue to own and operate the existing restaurant in the Kahler. However, they will not develop more Dunkin' stores as we previously reported," he said in October.

When announcing the coming Mankato shops, Dunkin' said franchise opportunities remain available in Rochester. Plus, "to help fuel additional growth in the market, special development incentives are available."

In Mankato, the new franchisees have more than 45 years of combined experience in business and real estate development.

“We have a passion and loyalty for the Dunkin' Donuts brand and look forward to opening our restaurants in the years to come," stated Schooff. 

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.
 
 
 

June 03, 2016

Forager spreading out into market space

After less than a year in operation, Rochester's popular Forager Brewing Co. gastropub is outgrowing its space.

The hipster-friendly beer, coffee and food place plans to take over space within its 1005 Sixth St. NW building that now houses the Kutzky Market retail area.

"We just need more room, so we're going to re-organize," said co-owner Annie Henderson.

Kutzky-market-logoThe plan is to close the 1,200-square-foot market area at the end of June and start moving beer-aging barrels into the space in July. Beside beer storage, the space will be used as a customer waiting area as well as a public art space with a small retail piece.

The market, which features many local handmade items and antiques, has eight vendor booths. 

"A lot of them already have new homes. Some are moving into the Dwell Local (store)," she said.

The shift also opens up room for Forager to host a local art galley and music performances.

"There will be a lot of new programing over there. After C4 (nonprofit Rochester art collective) closed, it has been tough for local artists to find free space for events," said Henderson. She previously served on the C4 board with her Forager co-owner, Sean Allen.

May 23, 2016

Auto Techs to close at end of June

After 24 years in the fast lane, Roger Gansen is ready to slow down a bit.

Gansen has owned and run Auto Techs, a repair and sales shop, in Rochester since 1992. He has operated at his current location at 650 S. Broadway for about 12 years.

11146464_358227187720296_512149979420663139_oNow he has a "Closing soon" sign out front as he prepares to sell his property to the Lamont Cos. He plans to close the doors of his two-man shop at the end of June.

"It's kind of tough," said Gansen of the closure.

However, part of him is looking forward it.

"I'm ready for a change," he said. "I think this is kind of an opportune time for it."

The big question is will he re-open the popular Auto Techs somewhere else. That's a question he really doesn't have answer for.

"As of right now, everything is up in the air," Gansen said on Friday. "But right now, I'm looking forward to slowing down a bit."

While he is slowing down, the activity on that block of South Broadway is quickly ramping up this summer.

Lamont Cos. are the developers who recently purchased the adjacent Clarion Inn for $5 million with plans to build a newCandlewood Suites hotel and retail center. A liquidation sale of all of the hotel's furnishings and fixtures is underway.

Based in South Dakota, Lamont Cos. are the same developers who built Rochester's Holiday Inn by the Miracle Mile shopping center on Second Street in 2012.

April 08, 2016

New Rochester art gallery is thinking big

Wendy Westlake has a big vision for 535 Gallery, her new Rochester art gallery.

"The concept is for large-scale contemporary pieces as a service for designers and the general public looking for a distinctive statement piece to make an impact in a large space," explained Westlake, as she took a break from converting a former industrial space into an art gallery.

04072016535galleryWith the help of her gallery director, Nick Sinclair, Westlake is working on the new gallery at 535 Sixth Ave. N.W. in Rochester's artsy Cooke Park Design District. The more than 2,000-square-foot gallery will share the block with the funky Dwell Local art and antique shop as well as Fox & Fern Floral and A Beautiful Soul, a New Age Boutique and healing store.

They hope to open the doors some time this summer. Realtor Dylan Carty, of Rochester's Realty Growth Inc. (RGI), handled the deal to line up that spot for 535 Gallery.

Westlake's 535 Gallery is located between the imported car repair shop, Werkstatt 533, and Auto Refinishers Plus.

"We think this Cooke Park area is a good place for us to be. We like what it is becoming," she said. "Though it is kind of a strange place to be sandwiched between two auto places."

Westlake and Sinclair caution that people should not expect a gift shop or even a place like the recently closed SEMVA (Southeastern Minnesota Visual Artists) gallery. It will specialize in paintings and mixed media pieces with interior designers in mind, though it also will be open to the public. They envision the large artworks in both local residences and commercial spaces.

They are adding a designer's room to the gallery for meetings with interior designers and their clients.

"It'll be a nice space where we can show them our catalog of art," said Sinclair.

The plan is to host 10 exhibitions featuring two local or regional artists every year. 

SEMVA, which was downtown near Mayo Clinic, was popular with visitors. Westlake expects 535 Gallery to serve a different group of customers, because of the size of its art and its location.

"We want to be an art gallery for Rochester," she said. 

 

March 24, 2016

Eastwood Plaza expansion set to open in June

After many months of on again, off again construction, it sounds like a new southeast Rochester commercial center could be ready for business soon.

Construction of a 5,040-square-foot retail building began last summer in front of the Eastwood Plaza at 1513 12 St. S.E. A variety of issues, including an easement dispute, have slowed the progress of the project.

EastgateplazaBut that is all in the past now, according to Ari Kolas. Kolas is one of the owners of Eastwood Plaza under the name of Athena 2004 LLC. He also is an owner of Rochester-based Apollo Wine & Spirits, which has one of its six Rochester stores based in Eastwood Plaza. It also has a franchised store in the Shoppes on Maine development in the southwest quadrant and a store in Austin.

"It should be done sometime in early June," he said.

The new building has three retail spots, two of which already are leased. When completed, Cricket Wireless and Little Caesars Pizza are slated to move in and open for business.

The third space, which includes a drive-up window, still is available, according to Kolas. He is hoping to find a food establishment of some sort as a tenant.

This Eastwood project is one that Kolas has been thinking about for a long time.

"I always wanted to do something on the outlot. I was just waiting for the proper opportunity to do it. The climate is good for it now with the growth of Rochester," he said previously. "It's been in the back of my head forever. It's got awesome visibility."

Kolas is enthusiastic about the intersection of 12th Street Southeast and Marion Road, which Athena 2004 bought for $1.6 million in 2004.

"It's a great corner that people forget about. It really is a great neighborhood," he said. — Jeff Kiger

 

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."

March 03, 2016

Sports Authority to hit the showers

It's official.

SportsauthoritylistSports Authority is closing its Rochester location as well as 139 other stores as part of filing for Chapter 11 bankruptcy.


Rochester employees began telling customers last week that the 33,000-square-foot store at 80 25th St. SE would be closing soon. On Wednesday, the Englewood, Colo.-based company filed for bankruptcy.


As part of that filing, it submitted a list of 140 stores that it will be closing or selling within the next three months. The sporting goods retailer has 463 stores in 41 states and Puerto Rico.

Rochester's Sports Authority has been open in the Broadway Commons commercial center since 2001. 56cc794c4ca4b.image

"We are taking this action so that we can continue to adapt our business to meet the changing dynamics in the retail industry," CEO Michael Foss said in a written statement. The executive said that it needs fewer stores, as consumers are increasingly shifting to online shopping.

Sports Authority stores will remain open and run on normal schedules during the Chapter 11 process. The company's website will continue to function, and the chain plans to honor warranties on items purchased at its stores or online.

In a letter to customers posted on the company's website, Foss said that Sports Authority's long-term plan includes upgrading stores and improving its website.

Foss said that The Sports Authority Inc., which is privately-held, has received interest from third parties that may want to invest in or buy some or all of the business. The company plans to continue evaluating all of its options, he added.

Sports Authority said that it expects to have sufficient liquidity during the Chapter 11 process when factoring in cash from operations and anticipated access to up to $595 million in debtor-in-possession financing.

In 2014, Sports Authority ranked fourth with $3.4 billion in revenue among U.S. sporting goods chains. Dick's is the leader with with 603 stores nationwide, including one in Rochester,  and $6.5 billion in revenue. Academy Sports ranked second and Bass Pro Shop came in third.

Sports Authority has 470 stores, according to Statista. According to a Moody's research note, Sports Authority reported more than $2.6 billion in revenue for the 12-month period that ended in October.

The Broadway Commons center, which also features Kohl's, changed hands in January, when Austin, Texas-based EREP Broadway Commons bought the 131,931-square-foot retail complex for $14.5 million. They bought it from Inland Private Capital Program, of Oak Brook, Ill.

The 15-year-old shopping center was appraised at $15 million, according to state documents. Inland originally acquired the property in 2002 for $16 million. Olmsted County estimated its 2016 market value at $11.23 million.

It originally was built by Wisconsin-based Continental Properties in 2001.

February 25, 2016

Grocery still could be on way for Miracle Mile, but not Whole Foods

A national grocery chain could be on the way for Rochester's Miracle Mile mall.

5553522a8afe9.imageHowever, it won't be Whole Foods as previously predicted.

Word that the popular organic grocery chain was talking to the owners of the mall at 115 16th Ave. NW popped up last year, soon after Miracle Mile sold for $10.4 million. In the end, that deal was not done. 

Another brand now has stepped in and has taken negotiations with the owner of Rochester's oldest mall farther down the road than Whole Foods did.

"We're working with a national grocery chain. They have submitted a letter of intent, and we have responded," said Rochester Realtor Merl Groteboer of Re/Max Results. "Whole Foods is out of the picture at this point."

Whole_Foods_Market_logo.svgHe represents the mall owners, Miracle Mile LLC. There are no public details about the unidentified owners, but Groteboer previously has described them as a Twin Cities couple.

Miracle Mile LLC purchased the mall along U.S. Highway 52 and Second Street Southwest in March 2015 from Jordan Realty Corp. of Dallas. Jordan had owned it since 1988.

While the deal is progressing forward, there is no guarantee it will happen in the end. That's why Groteboer is keeping quiet about the name of the grocery store. He does say it is a national chain that is not in Rochester now, but does have a presence in Minnesota.

In December, two high-profile tenants — The Mouse Gift & Home store and the Bread Baker bakery — closed. That seemed to fit with the possible development plan to demolish the south end of the mall to make space for a new stand-alone grocery store. The tenants on that end, such as Arrow Ace Hardware and Plaza Morena, could be moved into open spaces in the north end of the mall.

"Any tenants displaced would be offered another space in the center," Groteboer said last year.

February 19, 2016

A second scoop of Flapdoodles is on the way

A double scoop of Flapdoodles Ice Cream is on the way for Rochester.

Flapdoodles-homemadeMatt Tierney, who launched his original hand-made ice cream shop in 2011, has decided to open a second location at 1710 South Broadway. That's the former Wheeler's Autobody Supply building.

While this will be another full restaurant site, Tierney said this is not just about reaching more customers.

Flapdoodles.1jpg1"What really drove the whole decision was a lack of production space (at the current 3525 22nd Ave. NW)," he said. "We've been growing every year and we just don't have enough room."

That means the back of the South Broadway store will be devoted to making ice cream for both stores. During the busy days of summer, Flapdoodles makes about 400 gallons of ice cream per week.

Tierney hopes to have the new store ready to open by early to mid-summer. He has about 20 employees on staff at the 22nd Avenue location and expects to have a similar crew at the new store.


"We really like the feel of South Broadway with a lot of hotels and Graham Arena nearby. And we're close enough to downtown, that you can see Mayo Clinic from the windows," he said.


He purchased the 38-year-old building from Wernimont Properties on Feb. 12 for $500,000. Darci Fenske of Paramark Real Estate represented Tierne Wheeler's Autobody Supply y in the deal, and Jay Christenson of Braasch Commercial Real Estate represented Wernimont. Wernimont Properties bought the 1710 South Broadway building in April 2015 from $389,900/

In the few years since it opened the former Subway sandwich shop, Flapdoodles has attracted a growing crowd of fans.

"Our customers are nice combination of local people, visitors to Mayo and people here for sports tournaments," said Tierney. "I'm really happy with how things have gone."