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17 posts categorized "Shoppes on Maine"

September 08, 2015

Clements to build 2nd dealership for Subaru

Clements Chevrolet Cadillac Subaru is looking south to build an $8 million dealership just for Subaru, its fastest growing brand.

The 87-year-old, locally owned dealership has purchased a 9.5-acre site covered in grass and clover at the corner of 48th Street Southeast and St. Bridget Road Southeast. That's just east of Mills Fleet Farm.

Clements Managing Partner John Wade expects construction to begin next year and hopefully wrap up in the fourth quarter of 2016. Wade owns Clements with partners Jack Remick, Dave Remick and Dan Penz. 

09-04 Subaru enWade described the planned dealership as an "eco-friendly, state-of-the-art sales and service campus" that will face the 48th Street intersection at a northwest angle.

The owners say the explosive growth of its Subaru brand, with its sales doubling in the past year, is driving this plan to spin a second dealership site off the main dealership at the entrance of Rochester's Apache Mall.

"This expansion is what we need to keep up with the service and sales demands of our customers," explained Wade.

Nationally, Subaru sales are exploding in the United States. Subaru reported 45 consecutive months of year-over-year growth in August, when it sold 52,679 vehicles for the month. It was the 25th consecutive month where Subaru sold more than 10,000 Foresters and the 18th consecutive month where it sold more than 10,000 Outbacks

In 2011, Clements built a 4,200-square-foot showroom adjacent to its main dealership to spotlight Subaru, but the demand has outgrown its capacity to display 40 vehicles. Todd Penz, who will serve as the general sales manager of the Clements Subaru dealership, says the new lot will be able to house more than 370 vehicles.

Clements, which now has 115 employees, expects to add 20 new positions to staff the new site. Wade estimates that equals an additional of more than $1 million in payroll for Rochester.

He also expects the addition of the second site will bring Clements' annual property tax contribution to more than $500,000.

"This multimillion dollar commitment is a major investment as well as an expression of confidence in the Rochester area marketplace, which in the end expands the local tax and employment base," said Gary Smith, the president of Rochester Area Economic Development Inc.

The new dealership will join Rochester Toyota and Mercedes-Benz of Rochester in the growing Shoppes on Maine area off US 63, which is booming along with the rest of the city. A 360-unit apartment complex called Maine Heights has been proposed right behind the Clements Subaru property. A $35 million housing project called The Boulders, which will include 144 apartments and 80 townhouses, also is planned.

"There's great growth in the area with a strong economic base," said Wade. "We're a regional dealership with customers throughout southeastern Minnesota, Iowa and Wisconsin. This is a good crossroads for us to build this new dealership."

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. 

July 09, 2015

Development exploding in Rochester's Shoppes on Maine area

Downtown Rochester is not the only area being eyed by developers. 

It appears that Shoppes on Maine in south Rochester is exploding with development these days.

I wrote about a 211 apartment complex proposed for the area on Wednesday plus there's already a massive housing project called The Boulders already under construction, which will have 144 apartments and eight buildings with 10 townhouses in each.

FireShot Capture - Google Maps -,-92.4647416,15zMeanwhile, yet another group of developers met with residents of the Maine Avenue neighborhood on Tuesday to discuss their plans for a 359 unit apartment complex slated the empty land across from Mills Fleet Farm store.

I don't know much about the Fleet Farm apartment complex yet, but should have more on it soon.

Beside more than 700 apartments, the buzz in the Shoppes on Maine is that a new car dealership could be revving up for the land around 48th Street and St. Bridget's Road. 

There is a lot of interest in real estate in that area right now, so it's possible that a new name might be on the road to join Rochester Toyota Scion and Mercedes Benz of Rochester in Shoppes on Maine.

July 08, 2015

More apartments proposed by Rochester's Shoppes on Maine

Preparing to build an apartment complex, developers have purchased more than eight acres of land in south Rochester for  $1.8 million.

Harbor Bay Real Estate Advisors bought open, grass-covered land next to the Shoppes on Maine commercial area in preparation to build a proposed 211-apartment complex, according to Harbor Bay co-founder Tom Lund. HarborbayaptsHarbor Bay is based in Minneapolis and Chicago.

The land was purchased by Bascom Capital LLC, a firm set up by Harbor Bay. The acquisition was done in two transactions of $590,000 on June 26 and $1.22 million on July 1. The apartment complex is slated to be located by Maine Avenue Southeast near the two hotels.

While some design details still are being worked out, Lund described the unnamed complex as featuring Class A, high-end apartments.

"It (the complex) will be a higher end product," he said. "We'll have a clubhouse and lots of amenities."

A Site Development Plan for the project was filed the Rochester Building Safety Department on Monday. He hopes to have the plan before the Rochester City Council for approval this month.

Lund said the goal is to start construction in September and hopefully have it completed by late next summer.

Harbor Bay has projects in Minneapolis and Duluth, but this will be its first here.

"Rochester is an amazing community that's growing. The demographics for apartments are very strong and the supply right now is relatively limited," he said.

The location near Shoppes on Maine was attractive because of the easy access to shopping as well as one of Rochester's Park and Ride mass transit lots.

In fact, another developer agrees that area is prime for more housing. Big Rock, Ill.-based Executive Affiliates has its own $35 million housing project called The Boulders already under construction near Harbor Bay's site. The Boulders will include a three-story building with 144 apartments and eight buildings with 10 townhouses in each.

"I think we'll complement each other," said Lund of The Boulders.

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.

June 27, 2014

Mayo Clinic still mum on SE Rochester building

There's no question that an unmarked 22,000-square-foot commercial center is being built in south Rochester's Shoppes on Maine area.

The question is what will it be used for when completed?

The half-completed gray and blue building at 4544 Canal Place S.E. stands at the corner of Canal Place and Maine Avenue Southeast.

06262014mayoclinicsoutheastIt's described as "Future Mayo Clinic Southeast" in city building permits dating back to April. However, Mayo Clinic isn't acknowledging any involvement.

"We don’t have anything to share at this time. When we do — I’ll certainly let you know" is how Rebecca F. Eisenman of Mayo Clinic Communications responded to questions on June 18.

In April, Eisenman did acknowledge that Mayo Clinic is interested in the area.

"We are exploring options to improve our ability to improve access to community care for our employees and those who depend on us for these services," she wrote. "Future options may include expansion of facilities and services in southeast Minnesota, but no specific details are available at this time."

The owner of the project is Canal Place Pointe Inc., which is based nearby at Suite 200 of 4325 Maine Avenue. That's also the address of the office of Maine Street Development Co. Tom Hexum, who manages the Maine Street Development projects with partner Ron Schultz from that office, filed the original land development application for the building. He says it's owned by a group of local investors, though he is not part of that group.

Hexum describes the building as a Mayo Clinic project.

Building permits show that just the structural shell of the Canal Place Pointe complex is valued at $1.4 million. There is a half-circle drive under an 880-square-foot canopy in front that would be handy for a medical facility. The parking lot features 109 parking spaces.

The whole facility, being built by Benike Construction, is on two acres of land. The local design firm SEH-Yaggy, formerly known as Yaggy Colby Associates, planned the project.

June 18, 2014

Baker turned pizza maker hits hits the road with wood-fire oven

Have wood-fire oven. Will travel.

That could be Stephan Jennebach's new motto now that he's added a mobile pizza o10329915_10152411609534524_707966481405501891_oven to his Firebrick Bread business in Zumbrota.

About a month ago, he hit the road with a new custom trailer featuring a wood-fire oven and prep kitchen to make and sell pizzas wherever he'd like. Right now, Jennebach can be found at the Zumbrota Farmers Market on Tuesdays and the Red Wing Farmers Market on Saturdays.

The new offering has gone over so well that he needed to hire three employees to keep the pizzas moving. However, he's still remaining true to the original vision of Firebrick Bread and continues to bake an array of hand-made breads in his wood-fired oven at his home. He first fired up the bakery business in 2012.

His menu includes five types of pizzas. He's using some local produce on them now and hopes to do more of that as the project progresses. It takes about five minutes to make and then bake a pizza in the 700-degree wood-fired oven.

Jennebach says adding the kitchen-on-wheels made sense given the local hunger for wood-fired pizza.

"When I told people about Firebrick Bread, the first question always was, 'Do you make pizzas, too?,'" he said.

Since regulations wouldn't allow him to do that at his home, Jennebach started looking into putting an oven on a trailer and eventually turned to a company that specialized in them.

"It was a big investment, but it's one I believe will pay for itself," he said. "I can take it anywhere in Minnesota."

Right now he's sticking to weekly appearances at the two farmers markets and an occasional special event. That, combined with his weekly bread baking, has pretty much filled up his schedule at this point.


101207jennebachonaballLong-time readers may recognize the Jennebach name, since Stephen was a very enthusiastic commenter on this blog during its early years.

He was also pretty much the only one who would act on my goofy attempts at photo contests. I was just ahead of my time with 'selfies.' Heh. His best submission involved the big red balls in front of what was then the brand-new south Target store.

May 07, 2014

Think changes direction on future of Greenview Drive sites

Think Mutual Bank is changing its thinking about the future of its presence on Rochester's Greenview Drive.

The Rochester bank had previously planned to sell its 21,000-square-foot branch at 1698 Greenview Drive S.W., and then build a replacement  at 1509 Greenview Drive S.W., near the Ramada hotel. The now-empty lot was previously home to a BP Pump N Munch convenience store, which closed in 2009. Think bought the site for $785,895 that same year and demolished the shuttered C-store.
At that time, the bank executives believed the 1698 Greenview branch was too large and inefficient.

However, Think's leaders have changed their minds about that. It has been decided to now sell the empty lot by the hotel and keep the current Greenview branch. While there has been serious interest in buying the branch building, others have also shown interest in buying the open lot.

Jenny Hosfeld, senior vice president of community banking, explained the change in strategy.

"We looked at our current facilities and decided to take the opportunity to make improvements to our current branch to make it better for our customers and our staff," she said. "It's a great location with great visibility, so why move when we can make it better?"

About 12 Think employees work at that location.

Think is putting a team of employees together to work on the plan to upgrade the Greenview building. Hosfeld said any construction work will be a 2015 project. She added that it's possible that the bank may incorporate some of the design of its most recently built branch at Shoppes on Maine in Rochester in the future look of the Greenview site.

Thinkgreenview"We're really proud of that design," Hosfeld said.

She declined to comment on whether the bank is currently in negotiations with any potential buyers of the empty Greenview plot, though all of the marketing signs on the site have been removed.

EDITORIAL COMMENT - The real estate rumor mill says that a prominient Rochester developer has designs on the site, but that's unconfirmed at this point.

While Think isn't planning on any construction in Rochester in the near future, it did just break ground on a new branch project in Edina on Monday.

"for a community bank of our size, our branches are still big part of how we do business," Hosfeld said.

March 18, 2014

New La Quinta Inn to open on March 24

Rochester's latest hotel is slated to open its doors on March 24.

The  $4 million La Quinta Inn & Suites has been under construction in the Shoppes on Maine area, since early 2013.

03162014newlaquintaThe new 83-room, 50,212-square-foot hotel is a project of Fargo, N.D.-based PLC Inc. PLC is also on the early stages of working on an 86-room Microtel Inn & Suites in the same area.

The four-story La Quinta is located at at 4353 Canal Place S.E., near the Rochester Toyota car dealership. Andy Thilges, a well-known and active member in the Rochester business community, is the general manager of the new hotel.

LaquintaatshoppesonmaineThe hotel's amenities include a salt water pool with a slide as well as a kiddie pool and hot tub. It also features a fitness center plus all of the rooms come with microwaves, refrigerators and coffee makers.

Chuck Hayes, the president of Fargo, N.D.-based PLC Inc., talked about the La Quinta and Microtel hotels in January.
"I like the economics of Rochester. I like what's going on there," he said to explain why he decided to add 169 hotel rooms to the Med City's offerings. "I like the uniqueness of the (Shoppes on Maine) development. It's well managed. Everything's new and fresh. Its access to downtown and Mayo Clinic is convenient."

Hayes' Microtel and La Quinta are just two of many new hotels expected to check into Rochester soon.

A 108-room Homewood Suites on Second Street Southwest is currently wrapping up construction. A 91-room Fairfield Inn & Suites is mapped up to be built near the Miracle Mile Shopping Center. Two other hotels – a 77-room Comfort Inn and Suites and a 109-room Staybridge Suites – are slated to be built in early 2014 along West Circle Drive in front of Costco. Those four projects alone  will add 385 rooms to the city.

February 28, 2014

Furniture seller to move into Roch.'s empty Best Buy store

A well-known Minnesota furniture retailer has plans to open to new store in Rochester.

Schneiderman’s Furniture has signed a lease to take over the empty 30,991-square-foot store at 4540 Maine Ave. S.E., says Larry Schneiderman, who leads the firm's board. His company is leasing the space from Best Buy, which closed its south Rochester store there in 2012.

BestbuyDarci Fenske of Paramark Real Estate brokered the lease deal to bring furniture business to Rochester's Shoppes on Maine commercial development.

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 business.

This will be the company's first foray into southern Minnesota.

The elder Schneiderman explains that he and his son Jason started researching options for expansion last year. Specifically, they were looking for a strong market within range of their distribution center in Woodbury, Minn. It didn't take long for Rochester to rise to the top of the list.

"It's a solid market, but also a solid city. We're really looking forward to opening in Rochester," says Larry Schneiderman. "Of course, there's the exciting things in the works for Rochester that we've all been reading about. But we think it's a good decision to be there, whether that all happens or not."

While the plans still are in the early stages, he hopes to open the new store early this summer. An estimated 16 to 20 employees are expected to staff it.

"We would like to, obviously, move as quickly as we can," Scheiderman says.

The first step will be to remove the building's distinctive Best Buy yellow and blue price tag facade. Then the interior will be completely overhauled "from the floor up to the lights," he said.

As real estate sales and home construction start to climb as the economy improves and the Destination Medical Center initiative begins to attract developers, competition is beginning to heat up in the furniture market.

Jim Sather and Mark Byer, who own Rochester's Furniture Superstore Factory Outlet and America's Mattress stores, have finalized plans to combine both of their stores into the soon-to-be-empty Menards facility at 5150 U.S. 52 North. The plan is open the mega-store this summer.
Not far from the site of Schneiderman's new location, two Rochester couples are working to open the independent Deutsch Furniture Haus in a 7,000-square-foot space at 3551 Commercial Drive Northwest in early April. It will specialize in local Amish-made furniture.