Thirteen-story Alatus project wins approval from DMC Corporation Board
The Destination Medical Center Board gave the go-ahead Thursday on a proposed $115 million multi-use project near St. Marys Hospital.
The project, put forth by Minneapolis-based Alatus, includes 346 residential units and 21,000 square feet of commercial space. The board's approval of the development is subject to a final review of the project's financing.
Board members adopted a resolution recommending the development move forward as a public infrastructure project, allowing it to quality for $10.5 million in DMC tax increment financing (TIF). The financing request still needs final approval from the Rochester City Council.
Lt. Gov. Tina Smith, chair of the DMCC Board, was not able to attend Thursday's meeting, but later released a statement calling it "great news for Rochester and Minnesota." She said the project is "another example of the significant economic development opportunities that our DMC strategy has created."
The site is located along Second Street and 14th Avenue SW, just west of the hospital campus. Two small hotels, including Brentwood on 2nd, and several homes will be demolished to make room for the development. The project has caused a rift in the nearby Folwell Neighborhood. Some residents have raised concerns about the height of the building and its potential impact on traffic.
The development is the first major, non-Mayo project to move forward for the St. Marys Place sub-district since the implementation of DMC.
“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 Economic Development Agency Board.
(Cover graphic: Rendering / Alatus)