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Berkman Apartments (Alatus Development)

A more than $100 million housing and commercial development is proposed for a high-profile corner of Second Street Southwest, next to Mayo Clinic's Saint Marys campus. The plans call for a 13-story building with two levels of underground parking to be built on more than two acres at the southwest corner of 14th Avenue Southwest and Second Street. The Brentwood on 2nd and the Ray-Mar Motel stand on that corner. The hotels, along with some nearby houses, will be demolished to clear the way for the project. The Brentwood also houses several businesses, including City Market, Charlie's Eatery & Pub, A Shared Smile and the Healing Touch Spa.

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Project Impact(s): Economic Development, Housing

This project is in Available Phase.

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Collaborators, Project Type, Impacts, Related Projects

 


Collaborators 

Lead Organization: Alatus, LLC

Contact: TBD ; Email: TBD ; Phone: TBD

Known/Likely Collaborators: DMC EDA

Potential Collaborators:


Related Projects

Destination Medical Center (DMC) ; Saint Marys Place Design Process with citizen's participation ; Saint Marys Place: Holiday Inn Project


Impacts 

Major Impact: 

PlanScape Impacts :

Level 1: Economic Development, Housing

Level 2: Housing: Market Rate, Retail, Dining & Entertainment, St Marys Place

DMC Impacts:

St Marys Place

Community Health Impacts:


Type of Project

Building, Special  

 


 

Detailed Description

Location: Second St. SW and 14th Av. SW

Purpose: Residential, Retail

 

 

Strategy

Leverage DMCC TIF

11.5 Million Assistance

Establishment of Tax Increment Financing (TIF) District and Development Assistance Agreement (DAA). The land use approvals would allow the Project to proceed to construction by the developer and are independent of any financial assistance considerations or approval as a DMC Public Infrastructure Project. However, the Developer has indicated that even with the land use approvals in hand the Project would not be able to proceed to construction and be financially feasible without or "but for" some financial assistance from the City or the DMCC. The developer has provided detailed financial information to document the need for $11.5 Million in assistance to close the financial "gap" for this Project. As the DMCC Board is aware, the potential receipt of State DMC funding will grow over time but is lower/limited in these early years until private capital investments increase well beyond the minimum threshold for State DMC funding of $200 Million. As both an alternative to State DMC funding to fund early stage DMC projects and in order to retain future bonding capacity for future DMC capital needs, the City can utilize its authority to establish a tax increment financing
district within the DMC Development Plan Area to provide financial assistance through TIF to
allow the project to proceed.

The City Council will consider establishment of a tax increment district and terms and conditions of a Development Assistance Agreement (DAA) at its 12/19/2016 meeting if the Council approves the Restricted Development Final Plan following
the public hearing. Obviously, if Final Plan were not to be approved then no decision on financial assistance would be needed.

In instances in which the City provides TIF financing for DMC Public Infrastructure Projects, the State legislation makes provision for the City to obtain credit for such costs towards its required $128 Million City DMC contribution. For the Alatus 2nd Street Development project the staff will be recommending to the Mayor and City Council that the City provide $10.S
million of tax increment financing assistance for this Project. The Council will consider this as a component of the Development Assistance Agreement (DAA) at their meeting on December 19, 2016. It should be noted that the City staff has been working closely with the DMC EDA staff in the review of all aspects of this Project including the proposed amount of financial assistance that is recommended for the Project. The DMC EDA will be providing their comments on the Project separately and independently from the City staff. The DMC EDA staff and the City staff are in agreement concerning the recommended amount of assistance and the developer has indicated that they can proceed with the Project with that $10.5 million
level of assistance. Approval by the DMCC Board of the Alatus 2nd Street Development Project as a DMC Public Infrastructure Project will also mean that DMC provisions relating to prevailing wage rates, WMBE, and American-made steel will also apply for the construction of the Project.
 

 

 

 

Metrics
Unknown

 


Key reports on: Berkman Apartments (Alatus Development)


DMC Alatus Project Approved by DMCC Board (December 13, 2016)

In today's 2016-12-15 DMCC board meeting, the Alatus building project was approved.

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Last modified by support on 2021/09/05
Created by allnode on 2016/05/10

 

 

 

Site Information
Project Phase Definitions
The following defines the various project phases:
  1. Available - a product, program or service is in production
  2. Develop - program or application is being developed
  3. Plan - idea is solid, stakeholders are identified, and there is strong commitment to go forward from all parties.
  4. Concept Phase - idea scoped out with enough details to give an early sizing and/or to build a proof of concept
    demonstration
  5. Pre-concept Phase - an early idea or a requirement.
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This database could be used as one of the ways to explore the capacities of the community. If you are someone on an exploratory journey to learn about the greater Rochester community. dmcbeam.org could be an interesting first step.

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