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5211 posts categorized "Rochester action"

September 03, 2015

Don't expect a second Sam's Club in Rochester

Destination Medical Center has many companies eagerly expanding their footprints in Rochester, though one huge retailer has decided to put on the brakes.

After years of discussion, Walmart has ended its plans for a second Rochester Sam's Club store.

6a00d83451cc8269e201a73d8867a9970d-250wiFor about eight years, I've asked a succession of Walmart officials about the possibility, as rumors repeatedly surfaced that a south Sam's Club complex could be built in the Shoppes on Maine area, possibly near the the 48th Street Southeast exit.

The answers from the Bentonville, Ark.-based giant always were vague, until last March, when Walmart's director of communications sent a positive response.

"We are always looking for opportunities to better serve our Rochester customers and are making plans to add a second Sam's Club to serve the growing need among area customers who want to buy wholesale merchandise in bulk at affordable prices," stated Delia Garcia by email.

However, those plans have changed between then and now. Garcia wrote another response to a request for updated information this week.

“We are constantly evaluating and refreshing our strategy to best serve our members and have decided this is not the right time to pursue a Sam’s Club in Rochester," she wrote.

Garcia could not expand on why Walmart decided to put the brakes on plans for a south Sam's store to complement its pair ofWalmart Supercenter stores on the north and south sides of the city, as well as a north Sam's Club warehouse.

The reversal does fit with a prediction from last spring by a Minnesota retail expert.

"It makes no sense at all," said David P. Brennan, a professor of marketing at St. Thomas University in St. Paul and co-director of the university's Institute for Retailing Excellence. "In regard to Rochester because of its size and relative ease of getting around, you don't need two stores to cover a market that size. It just doesn't make sense." 

Sam's Club has nine stores in the Twin Cities area and each does about $65 million to $75 million in business per year, according to Brennan. Costco has six stores in the metro region. Each of its stores move an estimated $120 million to $130 million of merchandise per year. 

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.

 

 

NW Rochester commercial building sells for $1.55 million

A 13-year-old northwest Rochester commercial building recently sold for $1.55 million.

Blum Properties Inc. sold its building at 2746 Superior Drive SW on Aug. 19. A group of local investors under the umbrella of 2746 Superior Dr. NW LLC purchased the complex.

A2b66e375c8e4631a09cfb0fa4951ec9Darci Fenske of Paramark Real Estate represented the sellers, while Scott Hoss and Mike Busch of Paramark represented the buyers. While the investors declined to be named, Hoss said they do not plan to make any big changes with the building.

Paramark Real Estate handles the property management duties for the building.

Built in 2002, the 6,661-square-foot complex houses a number of tenants. Those tenants include Comfort Home Health Care, Manpower, Stanley Jones & Associates, Dekok Insurance Group Inc., Agape Counseling Services and Experience Works

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 31, 2015

Baker's Square building sells for $2.49 million

The 25-year-old building at 819 Apache Lane SW, which houses Rochester's south Baker's Square restaurant, was purchased by Alice Montgomery of Los Altos, Calif. for $2.49 million.

646b9184dc9346a88cc1be3d4fcd9855The real estate listing by Mid America Real Estate Group shows that Bakers Square still has seven years left on its lease. The listing priced the building for $2.44 million.

Montgomery bought the 5,124-square-foot restaurant building from the Gloria J. Sobhani estate of Santa Barbara, Calif. on Aug. 25. The Sobhani family originally acquired the building in 2004 for $2 million.

Rochester's north Baker's Square restaurant building at 3539 22nd Ave. sold for $1.65 million in April 2014. Pie3539 LLC of Rochester purchased it from the Duane and Karyl Fiddyment family of Elk Grove, Calif. Baker's Square signed a 20-year lease from that property in 2001.

August 28, 2015

New business is sign of the times in Rochester

There are signs of a new business on the way for North Broadway.

Andy Anderson of Austin has a banner up for a new Fastsigns location coming soon at 200 N. Broadway in the Dison's Cleaners Center.

08272015fastsignsWhile the Fastsigns name is very familiar in the Twin Cities, this will be the Carrollton, Texas-based chain's first appearance in southeastern Minnesota.

"They have been looking to expand into Rochester. With Destination Medical Center, they anticipate growth here will be incredible," said Anderson, who is the co-owner and onsite operator. He's partnering with Gene Clement.

The plan is to start the build out of the location in September and hopefully open in the fall or early winter. He expects to start with three on staff, including himself.

That 1,500-square-foot space was last occupied by the women's clothing resale store called Nu On U, which closed in September. For Med City old timers, that's the spot that previously housed Wireless Toyz and Hobbit Travel back before that.

The real estate deal was handled by Al Watts of Wilson Watts Commercial Real Estate and Bucky Beeman of Realty Growth Inc. The center is owned by Tasos Psomas' Skiathos LLC.

Fastsigns is known for offering a wide array of printed products ranging from banners, signs, vehicle wraps down to flyers and business cards. It's main focus is business-to-business, though it can also handle typical consumer projects.

"We do can anything that a business might need," said Anderson. "Our big things are quality and a very quick turnaround time."

 

August 26, 2015

O&B Shoes to stroll to new home this weekend

Downtown Rochester will see a major migration of Mary Janes, moccasins, mukluks and more this weekend as a crew of between 20 to 30 people march a mountain of shoes to a new storefront.

O&B Shoes will hit the sidewalk this weekend as staff, family and friends move more than $61,000 in shoes, boots and sandals less than a block to the store's new downtown home.

08262015newobshoes"It's going to be a total team effort," said owner Don "Sole Man" Hadley. "We're excited about it. It's going to be a new adventure for me, my staff and my customers."

If everything goes as planned, O&B should re-open on Monday or possibly Tuesday.

O&B Shoes, which has been a downtown feature for 82 years, is moving north from its long-time spot on the corner of 100 First Ave. SW to a new space at 19 First Ave. SW. That's the street-level spot in the Kahler Hotel building where Hanny's Men's Wear operated for decades until that store closed last year. Hanny's still has stores in the Kahler subway.

A crew of between 20 to 30 people is slated to walk the boxes and boxes of footwear to move the 6,000-square-foot storefront. The store will be accessible from the subway, as Hanny's was, although that access won't go through Hanny's store under the space, he said.

O&B shoesO&B, which was founded by Leo Olson and Herbert Bergerson in 1933, has been in its present location since 1976. Its previous downtown spot at 217 Broadway Ave. S. was damaged in a fire.

The prominent spot on the Peace Plaza in the heart of downtown has made O&B a well-known landmark and regular stop for returning Mayo Clinic patients.
08202015cloud9spa
No new tenant for the 100 First Ave. SW storefront has been announced by the building's owner, George Psomas, though signage has gone up for Cloud 9 Spa in the adjacent one. O&B operates its O&B Athletic and O&E (Odds & Ends) Bargain Room in that space on First Avenue. 

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.

August 19, 2015

Mayo Clinic officially opens Mayo Medical Labs expansion

About a year after breaking ground on the project, Mayo Clinic officially opened a 60,000-square-foot expansion of its Superior Drive Support Center on Tuesday.

The Superior Drive Support Center, which houses Mayo Medical Laboratories, is located at 3050 Superior Drive NW. The three-story addition built on the south side of the complex. Mayo Clinic is moving its the toxicology, endocrinology and proteomic core labs to the new space from downtown. They expect to be fully moved in by April.

Moving those three labs out of the Hilton Building will open up 24,000-square-feet of space. While this expansion will not bring new jobs, it will mean moving 150 to 170 people out of downtown to join the more than 1,000 Mayo Medical Labs employees at the Superior Drive complex.

"That's essential to allow other Mayo labs to decompress," said Dr. Matt Binnicker, the chair of the Department of Laboratory Medicine and Pathology's Facilities and Space Committee, in 2014. "Having those labs here makes a lot of sense."


Mayo Medical Labs, which generates revenue for Mayo Clinic, performs about 20 million tests for more than 4,000 hospitals annually.

Binnicker explained that while the three labs handle tests for both Mayo Clinic's patients and Mayo Medical Labs clinical customers, about 90 to 95 percent of their work is for MML.

Mayo Clinic moved into the 13-year-old complex in 2004. By 2011, about 800 employees worked at the facility. It originally was built by electronics manufacturer Celestica Inc. in 2001. When that company closed its Rochester operation, the building was left empty.

Mayo Clinic leased the property for eight years, until it paid $18.5 million in August 2012 to buy it. Before that, it was owned by 17 national investors through Triple Net Properties of Santa Ana, Calif., until they defaulted on the mortgage in 2012. The investors bought the property for $36.8 million in 2006.

When the mortgage defaulted, HSBC Bank USA took over the property. HSCB then sold it to Mayo Clinic.

While it originally was under construction, New York City-based W. P. Carey & Co. LLC bought the complex from Celestica, which leased it back. W.P. Carey later sold it for about 70 percent more than the $21.6 million it paid.

August 18, 2015

Home Federal wraps up Kasson Bank buy

Rochester's Home Federal Savings Bank has officially wrapped up its purchase of Kasson State Bank.

6a00d83451cc8269e201b7c771ae58970b-250wiHome Federal announced the deal to acquire the bank and its two Kasson branches in April. HMN Financial, Home Federal's parent holding company, actually made the acquisition.

"We look forward to continuing on with the long established community banking tradition of Kasson State Bank in serving the individual and business banking needs of Kasson and surrounding communities in the years to come," stated HMN President Brad Krehbiel in the announcement of the closure of the deal.

Homefederal_logoThe Palmer family owned the Kasson State Bank. It has 19 employees on staff and assets of about $60 million. The two branches will now be operated under the Home Federal name.

Neither bank released financial details about the deal. Home Federal officials did say that the bank funded the acquisition with "internally available funds." 

Kasson State Bank has a 141-year history dating back to the 1874 founding of the First National Bank of Kasson. The bank has been owned by the Palmer family since 1924.

Home Federal now has nine Minnesota branches. It has offices in Albert Lea, Austin, Eagan, La Crescent, two in Rochester, Spring Valley and Winona; one full-service office in Marshalltown, Iowa; one loan-origination office in Sartell; and two private-banking offices in Rochester.