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1329 posts categorized "Speculation"

July 02, 2015

Goodwill store proposed for northwest Rochester

A Minneapolis developer is proposing to build a 28,000-square-foot Goodwill thrift store near Costco in northwest Rochester.


The Driessen Group, led by Vince Driessen, has filed plans to build a store at the corner of 19th Street Northwest and Scott Road Northwest. That's the 19th Street entrance to the Costco commercial area. The store is slated to sit opposite the Kwik Trip station across Scott Road.

Goodwill plansThe plans describe the project as a Goodwill store. However, Goodwill Minnesota Retail Marketing Director Mary Beth Casement cautions that the nonprofit has not committed to any such store yet.

"We do not have a signed lease, so your best source is the developer rather than Goodwill-Easter Seals Minnesota," said Casement in an email.

Driessen has not yet responded to a request for comment about this project.

It's common for developers to build stores with a plan, and then lease or sell them to nonprofit organizations or corporations.

Driessen recently built a 33,000-square-foot Goodwill store in St. Paul, which opened in March.

The plans, drawn up by DJR Architecture Inc., of Minneapolis, show a building with 13,730 square feet of retail space and 8,787 square feet of office. It also includes 4,955 square feet of warehouse space.

In 2008, a Goodwill store with 15,000 square feet of retail space was built at 239 28th St. SE near the Broadway Commons commercial area. The nonprofit organization moved into it after leaving its old Rochester spot at 660 37th St. NW.

It's unclear if this proposed store would be a second location or if it would replace the 7-year-old southeast store. A second store seems the most likely possibility. Salvation Army opened a second northwest location in 2014.

June 16, 2015

Developer with Med City projects buys Pioneer Press building

A South Dakota developer who has three Rochester apartment complexes in the works is expanding into the less expensive market of St. Paul by buying the Pioneer Press building.

Stencil Homes, of Sioux Falls, S.D., bought the newspaper's eight-story headquarters at 345 Cedar Street on Friday. Developer and builder Nate Stencil says he plans to convert it into 150 to 168 market-rate apartments. Rochester Realtor Merl Groteboer, of Re/Max Results, handled the purchase for Stencil.

PioneerPressBuildingThe newspaper plans to announces its moving plans soon. Stencil hopes to begin construction in early 2016.

The purchase price was not released, though the building had been listed at $4.2 million. Whatever the price, it mostly likely was not close to the premium prices that downtown Rochester properties are selling for amid the Destination Medical Center boom.

"After hanging out in Rochester for a few years, things were looking pretty cheap up there (in St. Paul)," said Stencil on Monday. "After establishing a presence in Rochester, we couldn't help but look at more opportunities in the area. This is a good opportunity."

St. Paul real estate certainly looks to be more affordable than in downtown Rochester. Bloom International Realty paid $7.7 million for the seven-story Associated Bank Building at 206 S. Broadway in downtown Rochester in 2013. In 2014, the three-story Brackenridge Skyway Plaza at 21 Second St. S.W. was purchased by Baheya LLC for $10 million.

Stencil has two apartment complexes under construction in Rochester, Nue52 (formerly called Woodland Park) and Kascade Place, plus a third one in downtown that's still in the planning stages.

He expects the 83-unit Nue52 to be ready for tenants late this summer. It's at Rochester's 65th Street Northwest interchange across U.S. 52 from the North Menards store. Stencil describes Nue52 as it architecturally will be similar to the Metropolitan Marketplace complex in downtown Rochester.

Work on Kascade Place, which is near Nue52, is in the early stages. It will have 96 apartments. Stencil estimates it should be completed by the first quarter of 2016.

Details of the largest project, a $15 million, 110-unit apartment complex near downtown, still are being worked out at this point. Stencil and his partner, Sean A. Kaufhold, previously announced that they plan to build a six-story apartment complex with street-level retail space on Third Avenue Southeast and Fourth Street. That's across from the Olmsted County Government Center and Rochester City Hall.

To clear the way for that project, Stencil Homes purchased three buildings — Buckeye Liquor, the empty Flowers By Jerry shop and the former 3rd Avenue Pet Hospital — in 2014. The company previously had planned to have construction underway by now, but nothing has been done yet.

"We've met with the neighborhood. Now we're doing some re-tooling. We're trying to gauge what everyone would like to see," he said. "We're hoping to start by the first of the year."

Those apartments, along with the Kascade Place apartments, will be priced comparably to other market-rate units in Rochester, he said. That means rents ranging from $900 to $1,000 per month.

June 12, 2015

Checking in with Sonic

Hopeful rumors of a Sonic Drive-in opening in Rochester have been buzzing around… again.

I called Oklahoma City, Okla.-based burger and shake chain in 2007, 2008, 2009 and 2011 to see if car hops and cherry limeades might be on the way to the Med City.

Sonic-drive-inI've never received an answer that made local Sonic fans happy. And unfortunately, the 2015 call did not turn out any differently.

"We do not have any signed contracts or any under construction drive-ins there," said Sonic's Communication Manager Jason Acock. "I don't see any plans right now of opening up in Rochester."

However, there's always a possibility. Sonic has opened a number of drive-ins in the Twin Cities and in nearby Wisconsin in the past eight years.

"We're open to looking all over the county right now. We're looking to expand everywhere," said Acock. "Hopefully, somebody will step forward and a franchisee will want to open a location up there."

May 28, 2015

Mayo hires consultant to map out Discovery Square

To help fire up Discovery Square as "a catalyst" to create jobs in downtown Rochester, Mayo Clinic has contracted a feasibility study, independent of the Destination Medical Center Corp.

Mayo Clinic has hired the DMC development manager, Hammes Co. of Madison, Wis., to analyze the Discovery Square piece of the DMC vision and offer a market plan of how DiscoverySquarethe medical and technology research area might be developed. Mayo is paying Hammes $1.5 million to conduct the study, which is expected to be completed by the end of the year.

One expected tenant is Epic, a Madison-based software system that recently signed a contract to help build an electronic health record system for Mayo Clinic. It's planning on having many employees based in Rochester.

"They've indicated a strong interest in the Discovery Square concept, and we're exploring ways they may participate in that," said Bolton.

Discovery Square is described as "the focal point" for Mayo Clinic's expansion of its science and technology institutes, and it's designed as a place for private companies and others to work with Mayo on research and other projects. It's marked on the DMC map as being central to the Gonda Building and the Mayo Medical School.

"The Square is designed to be playful and artful, similar to the Google Commons in order to, quite simply, attract the best and the brightest, the most creative minds in the world," according to the DMC plan.

Mayo Clinic owns about 35 percent of the property within the proposed Discovery Square area.

The goal of the new study is to map out the area more specifically and identify potential partners and funding streams to make it sustainable.

Jeff Bolton, Mayo's chief administrative officer and the chair of DMC's Economic Development Agency, said Mayo funded the study because it's not part of the DMC EDA's scope.

"The EDA budget is really to provide staffing to support the DMCC board, to work with developers and help market the DMC concept," he said. "Mayo Clinic views this as area where we could serve as an important catalyst to advance the DMC vision. That's why we stepped up and are making this investment."

Mayo Clinic's relationship with Hammes dates back to the very early days of the DMC concept in 2008 before it became public. Mayo Clinic first officially contracted with the company about DMC in 2011. When the EDA signed its own contract with Hammes last year for $2.3 million a year, it had no ongoing Mayo contracts.

Bob Dunn, president of Hammes, explained that this study will be similar to his company's work on the overall DMC plan but will be much more detailed.

This study will include a master plan, a conceptual design, preliminary engineering, financial analysis, financing plan, a market analysis, a review of effective land use and operational aspects for Discovery Square.

"This will be a block-by-block plan," he said. "But we're not starting at ground zero. Mayo, which owns a good portion of the land in Discovery Square, has already thought a lot about this development."

Meanwhile, Mayo is actively working with companies to try to get them to locate there, Bolton said.

"We're out marketing the concept," said Mayo's Bolton. "Obviously, we have an interest in terms of attracting groups to collaborate with us."

The project's success likely will be driven by what partners want to work with Mayo Clinic.

"If I were to forecast, I'd say there will be multiple of owners of facilities in Discovery Square. Many will probably be owned by private developers," predicted Bolton. "There won't be a monolithic owner of the facilities. The free market will play out in this environment."

He added that Mayo Clinic may participate "directly or indirectly" in some of the development.

The multimillion dollar question is when actual development of this new job generator area will begin.

"We'll need a critical mass of corporate engagement in order to have a developer to put that first shovel in the ground," said Bolton.

Dunn said this is a fascinating feature of what is already a unique project.

"DMC and Discovery Square, to me, is one of the most interesting things that I can think of nationally in terms of major economic development," he said. "It's unique because impact Mayo Clinic can bring to something like this in a market that's now beginning to mature and evolve very quickly."

May 27, 2015

Manufacturer shopping for Roch. location?

The chatter on the streets these days is that a new manufacturer is seriously looking at the possibility of setting up shop in Rochester.
Stock-photo-18292216-kinematic-gears-question-symbol
While no names have surfaced yet, the buzz is that this manufacturer could need up to 250 workers and 200,000-square-feet of space.

If that is even close to accurate, this could be a big addition to Rochester's goal of becoming more economic diverse.

We'll keep an eye on this to see if this interested company decides to move ahead with a Med City project.

May 19, 2015

Southeast auto business to build a new, bigger shop

A long-time, family-owned auto shop is shifting gears to build a new home in southeast Rochester.

Tilson's Auto Repair, owned and run by Ben Tilson with his two sons, hopes soon to start construction of a new eight-bay, state-of-art shop on an open lot at 1740 South Broadway. That puts them between the 63 Club bar and Advance Auto Parts.

TilsonsThey hope to have the new almost 7,000-square-foot facility completed and ready to open this fall, possibly as early as September.

The elder Tilson has been repairing Rochester vehicles since 1984. In 2004, he moved into the four-bay shop in the Kmart building at  843 Third Ave. S.E. Now 11 years later, he needs a larger place with more visibility.

"The market changed. The dynamics have changed with DMC (Destination Medical Center)," he said. "As Rochester grows, we grow."

In the current location, he has six on staff including himself and his sons, Joe Tilson and the younger Ben Tilson. Once the new shop is completed, they hope to add four to six more employees to the staff.

The new shop will give the Tilsons access to some vehicles that are difficult to deal with now, added the younger Ben Tilson.

"We'll have bigger doors, which will make it a lot easier to work on bigger vehicles," he said.

The new location still will keep the shop in the area where they have long served customers.

"We wanted to stay in general area. Southeast is home," said younger Ben Tilson. "We want to be the predominant family-owned shop on this side of town."

May 14, 2015

Arrow Ace Hardware to close Byron store

Arrow Ace Hardware, an anchor of Byron Towne Square shopping center, will close this summer.

The store at 1067 Fourth St. NE in Byron is starting its "Going Out of Business" sale today, said owner Dave Neiman. Arrow Ace was one of the first businesses to open in Byron Towne Square, right after construction was completed in 2004.

Arrow Ace owns four Rochester stores, as well as ones in Owatonna, Northfield, Mankato, Shakopee, Chaska and St. Peter.
Arrowacebyron
Neiman said the Byron store's lease was coming up, so they took the opportunity to evaluate the company's strategy in southeastern Minnesota.

"We decided that we want to concentrate our efforts in Rochester. We're having great success in the Rochester market, so we want to continue to capitalize on the growth we are seeing there," he said.

The Byron store will remain open through the Going of Business sale, which may last a few weeks.

Arrow Ace has eight employees in Byron and the company is offering those employees jobs at the four Rochester stores, Neiman said. Arrow, which employs about 40 people in Rochester, has stores in Miracle Mile Shopping Center, Crossroads Shopping Center and Silver Lake Shopping Center and a stand-alone store on 37th Street Northwest.

Oak Brook, Ill.,-based Ace, which supplies the locally-owned stores as cooperatives, now has more than 4,600 locations. It does more $13 billion in sales.

April 16, 2015

Cardio3 changes name to better fit new focus

The Mayo Clinic-linked firm Cardio3 Biosciences, which is building a manufacturing facility in downtown Rochester, has abruptly decided to change its name to better fit its widening focus in the growing area of cell-based therapies.

Cardiobioscience_jpegThe Belgium-based biotech firm announced Wednesday that it changed its name to Celyad. It started using the new name immediately, though shareholders will not vote on the change until its annual meeting May 5.

This sudden move comes as the company is preparing for an initial public offering on the U.S. stock exchange. Celyad has not released a date for the IPO.

CEO Dr. Christian Homsy was quoted in a company statement saying this new name fits with the firm's new direction following its recent $10 million acquisition of Celdara Medical's oncology division, OnCyte. That signals an expansion beyond its stem-cell-based cardiac regeneration therapy into immuno-oncology. The regenerative stem cell therapy is based on research done by Dr. Andre Terzic and Dr. Atta Behfar, licensed from the Mayo Cli6a00d83451cc8269e201a511d8e824970c-250winic.

“We believe that the name change better aligns our identity with our core activities and overall unified objective of identifying and translating innovative cell-based therapies into therapeutics, not only in cardiology, but now also in oncology and potentially in other areas in the future,” Homsy stated in the announcement of the new name.

Celyad's U.S. communication staff said Wednesday that no one from the company could publicly comment on the name change, other than through the press release. Celyad spokeswoman Kirsten Thomas, of The Ruth Group, explained the silence was due to the U.S Securities Exchange Commission's imposed "quiet period" on promotional publicity during the buildup to the IPO.

Mayo Clinic and Celyad have collaborated since 2007 on the cardiopoiesis technology that 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 the company as of March 3. Mayo Clinic also is participating in a Celyad clinical trial.
Celyad
If the stem cell therapy makes it to the market, Celyad will pay Mayo Clinic $1 million a year for four years for research as well a 2 percent royalty on sales for 15 years, the press release says.

5503a0ea8a679.image"We are excited that Celyad is branching out beyond cardiology into areas such as oncology," stated Jim Rogers, the chairman of Mayo Clinic Ventures. "Our hope is that they are building a robust capability to deliver breakthrough therapies in the area of regenerative medicine, which is a significant priority for Mayo as well."

The name change comes before new signs have gone up 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 14,963 square feet of space on the fifth floor of the downtown building. 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.

The Minnesota Department of Employment and Economic Development also signed a deal with Celyad on Jan. 12 to receive a Minnesota Job Creation Fund award of $357,000. To collect the money, it must invest $1.5 million in Rochester within a year, plus hire 33 employees within two years.

The ultimate goal of the project is for the city, state and Rochester Area Economic Development Inc. to eventually convince Celyad to build a 100,000-square-foot manufacturing facility with 350 employees in Rochester, according to RAEDI officials.

However, Rochester is not the only city wooing the Belgium company. While the Rochester facility is the company's first official U.S. location, it also has plans to build a U.S. headquarters in Boston.

It seems as though Celyad is at a turning point. The company has worked on developing its cardiac regenerative therapy since 2007. While it has seen many positive results from trials in Europe and research in the United States, it has no products currently on the market.

The company lost $18.1 million in 2014, up from $15.9 million in losses in 2013. While the cardiopoiesis technology developed by Mayo Clinic appears to be promising, the company seems to be embracing the new CAR T-Cell cancer-fighting approach — essentially, a cancer vaccine — that it purchased from Celdara Medical for $10 million earlier this year.

"Our acquisition of the OnCyte CAR T-Cell portfolio in early 2015 heralds the first major step in our strategy to leverage our unique expertise in cell therapies and drug development to expand beyond the cardiac arena to develop breakthrough treatments to change the outcome of disease," stated Homsy last month.

"We are excited to be expanding our product offering into the prominent area of immuno-oncology and anticipate the initiation of the Phase I trial of our lead immuno-oncology candidate, CAR-NKG2D in the first half of 2015 and look forward to sharing details of our progress as we evaluate its clinical potential," Homsy said. "We intend to leverage our cell therapy know-how and infrastructure to quickly progress those assets into later stage clinical trials in 2016, aiming at more than five trials in liquid and solid tumors in the USA and Europe."

Many companies are vying for a spot in the hot CAR T-Cell area to be the one to develop the breakthrough cancer vaccine. The worldwide market for such vaccines was recently estimated to $8.4 billion in 2020.

April 04, 2015

Rutgers hires away Mayo Medical School dean

Remember Dr. Frank Cockerill, the former CEO of the for-profit (and wildly profitable) Get_photo Mayo Medical Labs? Mayo Clinic accused the well-respected and long-time Mayo exec of taking trade secrets and misrepresenting his departure from Mayo as a retirement.

He took a job at Quest Diagnostics, a competitor of the successful Mayo Medical Labs. Mayo Clinic sued and eventually Cockerill resigned from his new position at Quest.

Cockerill's wife, Sherine Gabriel, is the dean of the Mayo Medical School. Now she's in the news by being hired away by Rutgers.

Rutgers seems particularly gleeful about being able to "steal people from the Mayo Clinic."

Here's a staff and wire story on this:

----------------------------------

The dean of the Mayo Medical School in Rochester has been hired as the new dean of Rutgers University's Robert Wood Johnson Medical School.

Gabriel orig C hi resSherine Gabriel, 57, will take over as head of the New Brunswick, N.J.,-based medical school in August, Rutgers officials announced, according to NJ Advance Media.

"Rutgers can now steal people from the Mayo Clinic," Brian Strom, chancellor of Rutgers Biomedical and Health Sciences, said when he announced the appointment to the university's board of governors Thursday.

Gabriel has worked at the Mayo Clinic for nearly 30 years, serving as a professor of medicine and epidemiology and as a federally-funded researcher of rheumatic diseases.

She will be paid $560,000 a year at Rutgers, a university spokesman said. That will make her one of the highest-paid administrators at the state university, according to the NJ Advance Media article.

Medical school deans are traditionally one of the highest-paid academic positions at universities and their salaries have been rising, the NJ Advance Media article says.

This year, the median salary for medical school deans is $492,213 nationwide and $525,966 at research universities, according to a survey by the College and University Professional Association for Human Resources, a national group that tracks salaries.

Rutgers acquired two medical schools — Robert Wood Johnson Medical School and New Jersey Medical School in Newark — when it took over most of the former schools of the University of Medicine and Dentistry of New Jersey in 2013.

Gabriel was selected as dean of Robert Wood Johnson Medical School after a national search.

"Our search committee recognized the combination of assets that Sherine Gabriel brings," Strom said. "She has exceptional strengths in medical school education administration and instruction. In addition, she is a noted researcher with a strong background in research administration and has played significant roles in the success of Mayo Clinic's business development activities."

Gabriel has been dean of the Mayo Medical School since 2012.

As a researcher, she has focused on the risks of connective tissue diseases among women with breast implants, as well as studies on rheumatic diseases and the economic impact of rheumatoid arthritis.

April 02, 2015

Cardio3 announces plans for IPO in the U.S.

Cardio3 Biosciences, the Belgium-based biotech firm building a manufacturing facility in downtown Rochester, has announced plans to issue stock in the U.S. Logo cardio 3

Cardio3 BioSciences, which works closely with Mayo Clinic and has its U.S. headquarters in Boston, Mass., confidentially filed  "a draft registration statement" with the U.S. Securities and Exchange Commission this  week about its intention.

The eight-year-old regenerative medicine company  is already publicly listed on the European stock markets of NYSE Euronext Brussels and NYSE Euronext Paris. However, issuing an IPO in the U.S. would significantly boost its finances and garner the firm a lot more attention.

Such a move could benefit Mayo Clinic, which owned 2.69 percent of Cardio3, as of March 3. Mayo Clinic first acquired equity in Cardio3  in 2007, when it licensed stem cell research by Mayo Clinic's Dr. Andre Terzic and Dr. Atta Behfar. Its cardiopoiesis technology repairs patients' hearts by re-programming their own stem cell to regenerate cardiac tissue.

This week's  statement stressed that the possibility of a Cardio3 IPO is still in the very early stages.

"The timing, number of shares and price of the proposed offering have not yet been determined," according to the firm.

This filing follows last week's financial report that showed it lost $18.1 million in 2014, up from the $15.9 million it lost in 2013.

That annual report also highlighted "a non-exclusive preferred access agreement" signed with Mayo Clinic in October that cleared the way for Cardio3 to build a facility in the City of Rochester's Minnesota BioBusiness Center building.

"With this agreement, Cardio3 BioSciences agreed to give preferred consideration for Rochester, Minnesota to the U.S. to build a manufacturing facility for the production of C-Cure, at a facility located adjacent to the campus of the Mayo Clinic, and the Mayo Clinic agreed to periodically review with Cardio3 BioSciences its portfolio of regenerative medicine technologies, including in the areas of cardiology and oncology, with a view towards future potential licensing," according to the Cardio3 report.