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5046 posts categorized "Rochester action"

July 28, 2014

Mayo plans offices in former restaurant space

Mayo Clinic has decided to put administrative offices in the long-empty former Red Lobster space in downtown Rochester.

The roughly 6,000-square-foot space is on the street level of the 60-year-old Rosa Parks Pavilion building at 195 S. Broadway. Mayo bought the building for $2.37 million in 1997, and Red Lobster leased space there from 1987 until it closed in 2011 and opened in a new building by Apache Mall.
07272014exredlobsterspace
Since Red Lobster left, Mayo Clinic repeatedly has said it was looking at options for the prime downtown location. Even when Mayo Clinic began interior demolition in the former restaurant space in February, the official word was that no plans had been made for the spot.

That changed this week, when clinic officials confirmed their plans.

"We are in the process of converting the space into administrative space that can accommodate individuals and teams from different departments to co-locate for a period of time in order to collaborate on projects," Mayo's Kelley Luckstein said in an email. The space should be ready for staff to move in by November.

Given the clinic's seemingly endless need for space and its use of other nearby street-level spots for offices, the decision was not surprising, but it's disappointing for people who would like to see more street-level stores and restaurants downtown.

"Mayo Clinic did take into consideration retail space, but based on Mayo’s needs, this was the appropriate use of the space at this time," according to the statement emailed by Luckstein.

One critic of the decision is Adam Ferrari, a Rochester architect and an advocate for a more vibrant downtown. "I don't know who in public relations could defend how this is furthering the Destination Medical Center effort, but it's clearly contradictory," he said.

An official with the Rochester Downtown Alliance declined to comment on the change at this time.

While Ferarri was critical of Mayo's plans, he did acknowledge the clinic desperately is looking for office space. "Mayo is simply too hard up for space right now to let any square footage out of their grasp. That's my interpretation," he said.

July 24, 2014

Bremer Bank to acquire Eastwood Bank

St. Paul-based bank Bremer Bank announced Thursday that it's expanding into southeastern Minnesota by acquiring Rochester's Eastwood Bank.

Photo_branch_318This move quickly ramps up Bremer's presence in this area by adding Eastwood's 13 locations. Bremer has 85 branches in Minnesota, Wisconsin and North Dakota. The nearest branch is in Owatonna, which opened in 2012. It recently broke ground to build a new bank in Eau Claire, Wis.

"This partnership is part of Bremer's overall expansion strategy of entering new markets, making acquisitions and recruiting top talent. We have been working on our expansion initiatives since 2011," said Greg Hilding, Bremer's midwest group president.

The deal is expected to close on Jan. 23, pending regulator approval. Eastwood and Bremer officials declined to discuss the financial terms of the purchase. Once it's approved, all of Eastwood's branches will change over to the Bremer name.

Brad Peters, Bremer's Southeast Minnesota region CEO, will take over the Eastwood Bank operations with Eastwood's current president Paul Tieskoetter reporting directly to Peters.

Acquiring Eastwood extends Bremer's coverage in Minnesota as well as strengthening its position as one of this region's largest financial institutions. Dave Talen, the president of Eastwood bank's holding company, described the deal as being about growth for Bremer.

"It's a great strategic fit and a great geographic fit, really with no overlap," added Hilding.

That lack of overlap with any of Bremer's locations appears to be positive for the future of Eastwood's more than 185 employees. During the next six months, Bremer will study Eastwood to determine if any adjustments are needed. However, dramatic changes don't seem likely.

"We have every intention to continue forward with these locations that Eastwood Bank has built," Hilding said while traveling to Eastwood's branches with Dave Talen to meet the staff. "It's a privalige to take over such a strong legacy. It's an opportunity and a responsibility we intend to uphold."

As of March 2014, Bremer listed assets of $8.8 billion, according to the Federal Deposit Insurance Corp. (FDIC). Rochester's Think Mutual Bank had assets of $1.5 billion, Winona's Merchants Bank had $1.39 billion.

Eastwood's roots extend back to 1903 to founding of the First State Bank of Dover. That bank was later acquired by Farmers State Bank in Eyota. In 1979, Farmers State opened a Rochester branch and called it Eastwood. First State, Farmers State and Eastwood were all combined under the name of Eastwood in 1982.

Considering the family's 75 year history with the bank and the community, the Talens say deciding to sell was took a lot of consideration.

"We have carefully considered what is best for our shareholders, customers, communities and employees," stated Eastwood Bank Chair James Talen. "And we believe the decision to become part of the Bremer organization is the right choice for meeting the best interests of all of these groups."

Dave Talen, James' son, echoed that sentiment. "We wanted someone who would carry on what we've built. Bremer is a good cultural fit with Eastwood," he said.

Both James and Dave Talen will remain with the organization through 2015 "to assist with the transition," according to Bremer Bank.

July 22, 2014

Bea's Kahler group reaches beyond Rochester's downtown

The Kahler Hospitality Group, the Rochester company led by Javon Bea, is checking out the hotel market beyond downtown.

15344_b1The local buzz for weeks has been that the Kahler group, which owns four hotels in downtown Rochester, is taking the reins at the Ramada Hotel & Conference Center at 1517 16th St. S.W.

While neither the KHG leadership nor Ramada team officially have admitted it, a recent Kahler email about catering changes seems to confirm that the hotels are now linked.

A mass email sent Monday by the Kahler group's new catering director included the Ramada logo among its hotel brands and it specifically pointed out that the Kahler's new policy opening its event spaces to outside caterers does not include the Ramada Hotel.

Chef Pasquale Presa, the Kahler's executive director of food and beverage operations, also includes the Ramada in the list of hotels under his management on his professional LinkedIn page. Local contractors also say that the Kahler group is talking to local builders about contracting for work on the Ramada complex.

The big unanswered question is whether the Kahler Hospitality Group has purchased the hotel from Rochester developers Dan and Terri Penz or if KHG has been contracted just to manage the Ramada facility.

No matter which is correct, the Kahler's involvement with the Ramada signals a major change for both organizations.

The Penzes also own the adjacent T.J. Maxx Shopping Center and Elcor Construction as well as other Rochester properties and businesses. They bought the hotel in January 2002 and changed its brand from Best Western to Ramada in 2004.

In 2011, the Penzes closed their hotel restaurant called Teresa's. That cleared the way for Joe Powers and his Powers Ventures firm to create new convention space within the hotel. At about the same time, Jim Nicholas leased space to open Wildwood Sports Bar in the Ramada complex. It's unclear what kind of impact, if any, the Kahler involvement in the hotel could have on the Powers and Wildwood operations.

On the other end of the deal, the Kahler Hospitality Group is a collection of five unidentified investors who bought the Kahler Grand Hotel, the Kahler Inn & Suites, the Marriott Rochester, the Residence Inn and the Textile Care Services industrial laundry for $230 million in 2012. Javon Bea, of Oronoco, is the well known public face of the organization.

In 2013, the Kahler group hired the Colorado-based Richfield Hospitality to manage the downtown hotels.

July 17, 2014

New plan: Newt's at Crossroads

After years in limbo, a plan to build a restaurant/bar in front of Rochester's Crossroads Shopping Center once again is moving ahead.

However, it won't be the long anticipated Buffalo Wild Wings. Instead, it'll be the latest version of Rochester's iconic eatery, Newt's.

Rochester restaurateurs David and Mark Currie are working on plans to build Newt's South as their ninth local restaurant. Their Creative Cuisine restaurants are the original downtown Newt's, the City Cafe, City Market Deli Downtown, City Market Deli South, the Redwood Room, 300 First, Newt's Express and Newt's North.

The project is in its early stages, so it may be a while before construction starts on the large rectangle of dirt and grass.

"If I could break ground today, I would," said David Currie, who owns and runs Creative Cuisine with his brother. "But I'm going to say it will be in the six-month range before it really gets going."

The sibl07162014bbwsignings are buying the site between the Andy's Liquor store and Home Federal Savings Bank from Tom Graf. Graf originally had hoped to build Rochester's second Buffalo Wild Wings there, but a series of legal disputes over parking eventually quashed that plan. The development plan, approved by the city, called for extending BWW's parking onto Crossroads property to have the required number of spaces.

Parking shouldn't be an issue for the new Newt's project because it will be smaller than Graf's proposed BWW. That means the restaurant and all of the required parking should both fit on the island of land in the Crossroads parking lot.

"I thought the Curries could make the best use of the space with the size of what they want to put on it," said Graf. "At the end of the day, it's a win for the shopping center."

07162014newtssouth1The first generation of Creative Cuisine dates to the 1960s with Jerry Zubay and Mike Currie, the father of Dave and Mark. Building a ninth restaurant will add to an already full plate for the brothers.

"The business is a lot of fun. We both love it and enjoy it. We're blessed to work with a ton of great people. That makes it super enjoyable," said Dave Currie of why they decided to open a new place.

Creative Cuisine employs 141 people. The Curries estimate Newt's South will need 20 to 30 employees.

This will be the first time the Curries have opted to construct a new building rather than adapt and renovate an existing site. They had shopped for a south Rochester spot for about a year before the Crossroads deal worked out.

"Building from the ground up took a lot more thought going into it. We're used to finding a 100-year-old building and then working with it," said David Currie.

They plan to build a restaurant similar in look and size to the quirky Newt's North location, which opened in 2011 inside the Wallin Building at 5231 U.S. 52 Frontage Road N.W.

The genesis for the project dates to 2011, when Graf purchased Tasos Psomas' Pannekoeken Huis restaurant and demolished it to make way for a second Rochester BWW.

Even though Graf decided "it just made sense" to have the Curries build on the site, it doesn't mean he's abandoning his own restaurant plans.

"There will eventually be another Buffalo Wild Wings in Rochester. It will happen. The city's big enough for at least one more," he said.

July 14, 2014

Ex-Pump & Munch to make way for new Caribou Coffee shop

More caffeine is on its way through Rochester's development pipeline.

A long-empty ex-BP Pump & Munch building at 451 16th Ave. N.W. is slated to be cleared away to make room for a new Caribou Coffee shop in northwest Rochester.

16thavepumpandmunchThe 1,804-square-foot stand-alone Caribou Coffee shop is planned for the high-profile spot, which will give the Minnesota coffee company access to both Civic Center Drive Northwest and the increasingly busy 16th Avenue North. The sit-down shop also will have a drive-through window.

Site plans still are working their way through official channels, but Mona Keehn says the hope is for the demolition and construction to begin yet this year.

Rick and Mona Keehn, who also own the Cariboucoffeedrawingadjacent Automotive Procare, bought the 3,000-square-foot building in 2011 for more than $730,000. They had hoped to find a tenant to lease it.

"We just couldn't find a good match," said Mona Keehn. "And then this came up."

042909pumpmunchBPciviccenter1jkIn the summer of 2009, all six of Rochester's BP Pump & Munch c-stores closed their doors for good. Since then, five of those buildings have either been re-purposed or demolished.

However, the 16th Avenue Pump & Munch has stood pretty much as it did in 2009. And now it will give up its spot for a new place for Rochester's growing population to grab a cup of coffee.

July 09, 2014

Does IBM have future in Vermont?

Here's a little chunk from a well-researched, long article written by Paul Heintz from Vermont's alt paper, Seven Days.

While there is no direct link (as far as I know) between the fate of the Vermont campus and the one in Rochester, this does sound familiar. For anyone interested in the what is happening with Big Blue, this is a pretty worth-while read.

You can read the full article at this link.

What we're looking at is a city," Frank Cioffi says, nodding at a sprawling landscape of industrial buildings, electrical transformers and storage tanks on the banks of the Winooski River.

The 59-year-old economic development guru steers his black Nissan Maxima toward a guard shack that stands sentry at the northeastern entrance to IBM's Essex Junction campus.

"We're not going to Bildebe able to get in," he says, pulling a U-turn and retreating from the fortress. "Security is watching us."

In more certain times, the Greater Burlington Industrial Corporation president might easily escort a reporter through the 725-acre campus, which GBIC developed from farmland 60 years ago. But with Big Blue reportedly nearing a sale of its chip-making division to Emirate of Abu Dhabi-owned GlobalFoundries, IBM Vermont is on lockdown.

Even Cioffi, its loudest local cheerleader, is in the dark about what a sale might mean for the 4,000-plus jobs remaining at the facility. Like many, he suspects IBM will reveal its intentions next week when it releases its second- quarter earnings report.

"We're dealing with two public corporations that aren't going to tell us anything, because they can't," he says.

Clouds of uncertainty have lingered over Essex Junction for more than a decade, as the company has retrenched and its Vermont workforce dwindled from a 2001 peak of 8,500. But never have the skies above the industrial park looked so dark.Ibm-logo

As IBM repositions itself as a services-oriented company focused on cloud computing, it has jettisoned less profitable hardware operations. In January, it struck a deal to sell off its low-end server business to China-based Lenovo for $2.3 billion.

Though GlobalFoundries specializes in the very chip-manufacturing work conducted at the Essex Junction plant, reports in the financial press have indicated that the company is interested in IBM's patents and engineers — not its aging facilities.

July 08, 2014

Cowboy Jacks now open on Broadway

The word is that Rochester's latest Western-themed eatery opened its doors and fired up the grill on Monday.

074After an extended build-out, Cowboy Jack’s is now cooking in the Wyndham Garden hotel at 1625 S. Broadway. That's the 145-unit hotel that was under the America's Best Value Inn and Suites brand from 2011 to November 2013.

Cowboy Jack's is a casual, American-style restaurant chain based in the Twin Cities.

The name and look of the hotel's bar and restaurant has morphed several times in the past few years. In 2008, it became Macho Nacho. Later it transformed into Ron's Place, which then became The Fieldhouse.

The Wayzata-based Bay Ridge Properties own the 40-year-old hotel. Bay Ridge purchased it in February 2012 for $4.8 million.

July 05, 2014

Courtesy Inn going down = Fairfield Inn going up

Demolition of the Courtesy Inn is picking up speed to clear the way for a new hotel to be built in northwest Rochester.

07042014courtesyinnOnce the old 44-room Courtesy Inn is torn down, a group of local investors will start construction of a 91-room, four-story Fairfield Inn & Suites hotel on the site at 510 17th Ave. N.W. That's near the Miracle Mile Shopping Center.

Parts of the Courtesy Inn date to 1952, when Marcel Prow opened Prow's Hotel.

The local investors are led by Nick Pompeian and Harshal Patel.

Construction of the Fairfield Inn is expected to take between six to eight months.

July 02, 2014

New south Rochester furniture store hopes to open in August

Schneiderman’s Furniture is targeting an August opening for its new Rochester location, which will be the fourth furniture store to open in the Med City this summer.

07022014schneidermansThe well-known Minnesota furniture retailer is making its first foray into southeast Minnesota by renovating a 30,991-square-foot store at 4540 Maine Ave. S.E. That's the former Best Buy store, which closed in 2012.

Larry Scheiderman says the project is moving along and they hope to be able to open the doors in August, possibly as soon as the first week of that month. Some hiring has already been done for the new store, but he says more people are still needed. Schneiderman's plans to have 20 people staffing the store.

Schneiderman’s is a third generation, family-owned business with four stores in the Twin Cities and one in Duluth. It was founded by Larry Schneiderman's parents, and now his son, Jason Schneiderman, is the president of the company.

The spike in Destination Medical Center-driven attention has spurred more than just Schneiderman's to try to furnish the rapidly growing Rochester.

Three other new furniture stores – Furniture Superstore Factory Outlet, Deutsch Furniture Haus and Hershberger's Furniture – have also opened this summer.

July 01, 2014

Mayo Clinic-linked Cardio3 making push into China

Cardio3 BioSciences, a Belgium company working closely with Mayo Clinic, recently launched a joint venture in China, the third largest pharmaceutical market in the world.

Cardiobioscience_jpegWorking with Hong Kong-based Medisun International Limited, it created Cardio3 BioSciences Asia Holdings Ltd. to make a serious push into China. As part of the deal, Medisun purchased $34 million in stock. It now owns 8 percent of the company's outstanding shares.

Cardio3 is publicly listed on the European stock markets NYSE Euronext Brussels and NYSE Euronext Paris, though it is not traded publicly in the U.S. Get_photo

The company says that $34 million will finance the U.S. clinical trials for C-Cure, Cardio3's regenerative heart treatment. Cardio3 CEO Dr. Christian Homsy flew to Rochester in January for a press conference at Mayo Clinic to announce that U.S. trial. Mayo Clinic in Rochester is one of the trial sites. Homsy gave a tentative time line of commercialization in Europe possibly by 2017 and by 2018 in the U.S.

Medisun has also committed to buy an additional $34 million shares of Cardio3 stock from existing shareholders in the next eight month at a price per share equivalent to the 10 days average preceding the offer.

This new deal means Medisun's ownership of Cardio3 has quickly leapfrogged Mayo Clinic's investment. As of June 16, Mayo Clinic owned 5.05 percent of the available shares of Cardio3. Medisun had just 4.21 percent at that point. As of June 25, Mayo Clinic controlled 3.1 percent of the shares.

Mayo Clinic researchers Dr. Andre Terzic and Dr. Atta Behfar originally developed the proprietary process of regenerating heart tissue with stem cells drawn from a patient's own bone marrow. Since 2007, Cardio3 has licensed patents and related research from Mayo Clinic. Terzic and Behfar each have a financial interest in the company.

Homsy has previously stated that he hopes to eventually base a few employees in Rochester for office and laboratory work. Cardio3 previously attempted to open a U.S. headquarters here, but that fizzled when the one person based here left.

Many consider what Cardio3 is attempting as the "holy grail" of cardiac treatments. Terzic previously described repairing faulty hearts as a "major unmet need worldwide." He estimated about one-third of all deaths stem from heart disease.

To date, the promising company has raised $121 million in equity and capital.

A recent study also estimated that the global market for such treatments could grow to $18.2 billion by 2019. The U.S. market was valued at $6.1 billion in 2012, with potential to increase to $8.49 billion by 2019.

“With this presence in Greater China, we are very proud to become the first global player in the field of cardiac regenerative medicines, aiming to commercialize our leading edge cell therapy to patients all across the globe,” stated Cardio Chairman Michel Lussier in the announcement of the venture.

Medisun Chairman Danny Wong says that his company is organizing medical conventions in August "to promote cell based medicines as well as Cardio3’s technology" in both Beijing and Shanghai.

"We are passionate about this project and I am certain that our involvement with Cardio3 as a leader in this field, combined with our local knowledge of the regulatory, healthcare and market access capabilities and expertise, will bring success to all the parties involved,” said Wong.

All the costs of Cardio3's moves in China will be funded by Medisun, with a minimum of $27 million committed during a three year period. Cardio 3 has 40 percent ownership in the joint venture, which will drop to 30 percent when clinical trials are up and running.

Success of the Phase III clinical trials that allow Cardio3 to market C-Cure in Asia would trigger  royalties ranging between 20 and 30 percent of net sales depending on total revenue of the joint venture.