The Alatus Development project will add over 347 residential units, restaurant, commercial, and retail space. Project highlights growing momentum of Destination Medical Center initiative, with over $200 million in development since 2013.
ROCHESTER, Minn. (Dec. 15, 2016) – The Destination Medical Center Corporation (DMCC) Board of Directors today approved the $115 million Alatus LLC 2nd Street Development Project for the DMC St. Marys Place sub-district subject to a final review of the project’s financing. The 13-story mixed-use development is expected to include over 347 residential units, 13,500 square feet of ground floor retail space, and 7,500 square feet of second-floor office and retail space.
“This project is great news for Rochester and Minnesota. It’s another example of the significant economic development opportunities that our DMC strategy has created,” said Lt. Gov. Tina Smith, chair of the DMCC Board. “I look forward to working with Alatus, and other developers and entrepreneurs interested in joining our strategy to create jobs and opportunity in America’s City for Health.”
The DMCC Board concluded the project supports the DMC vision and adopted a resolution recommending the project move forward to the Rochester City Council for approval as a Public Infrastructure Project to qualify for $10.5 million in DMC Tax Increment Financing. Additionally, a public hearing for the DMC proposed boundary amendment request will take place on Jan. 26, 2017.
“This project meets market demand for housing, achieves energy and sustainability goals and significantly grows Rochester’s tax base,” said Jeff Bolton, president of the DMC EDA Board of Directors.
Minneapolis-based Alatus LLC requested approval from the DMCC Board for a proposed mixed-use development to be built on 14 parcels of land, including the RayMar Hotel, which has been dedicated as a “redevelopment district” by the City of Rochester.
Additional Project Details:
- 13-level, 327,965 square foot, Leadership in Energy and Environmental Design (LEED) certified commercial and residential complex.
- 347 residential rental units
- Approximately 13,500 square feet dedicated to walkable retail space on the ground floor
- Approximately 7,500 square feet will be used for office/retail space on the 2nd floor.
DMC District Developments
The DMC EDA provided the DMCC Board with a progress update on proposed projects in the DMC District. The first was a project by Titan Real Estate and Investments and the Opus Group, consisting of a proposed 156-unit apartment complex that would be built in the Discovery Square sub-district. The development includes retail, parking, a green roof and pedestrian access to downtown.
The DMC EDA also provided an update on the Hammes Company’s proposed 200-room hotel and 120-unit apartment development located at West Center Street and First Ave. NW, within the Heart of the City sub-district. The project includes 14,000 square feet of retail and structured parking.
Updates on the Heart of the City included the timetable for the design of the public space and the Chateau Theatre business plan to restore the historic landmark. Research shows the Chateau Theatre could meet the city’s significant need for a high-quality performance, film, meeting and event space that could seat 600+ people.
The DMCC Board also received an update on the public design process for St. Marys Place with next steps to incorporate community feedback and study findings from design concepts into a final concept for public consideration in early 2017.
Board members reviewed other operational issues including a 2016 budget update and approved its 2017 meeting schedule. The DMCC Board of Directors will meet quarterly during 2017, with special meetings scheduled as necessary.
The next meeting of the DMCC Board of Directors will take place on Jan. 26, 2017.
###
Contact: Mary Welder | 507-216-9720 | [email protected]