Work Can Finally Begin on New Downtown Rochester Project
Rochester, MN (KROC AM News) - Work is expected to begin immediately on the long-planned Broadway at Center project in downtown Rochester.
Titan Development & Investments of Rochester and Harbor Bay Real Estate Advisors of Chicago have announced plans to begin construction before year end on the project that will be built at the southeast corner of Broadway and Center St. The 254 room Hilton Hotel will connect to the downtown skyway system and include ballrooms and conference rooms. It no longer includes luxury apartments that were planned earlier.
The City Council approved the final plan for the project in November 2014 but developer Gus Chafoulias had repeated delays in lining up financing. It was announced Friday the financing is being provided by First National Bank of Omaha (lead bank) and Bremer Bank. Rochester’s HGA Architects and Engineers designed the project and Kraus-Anderson will be the general contractor.
The city is contributing $6 ½ million, primarily to cover the cost of a new parking ramp for the project and the public. At last report, the project had an estimated pricetag of $145 million but Chafoulias has not released a revised cost. It is scheduled to be completed in April 2019. The mixed-use tower is one of the first projects under the city’s DMC initiative.
“This upscale Hilton will meet the needs of a diverse demographic of travelers that are visiting Mayo Clinic or are here for business travel,” said Gus Chafoulias, Rochester developer and visionary of the project.
“This transformational and iconic development will vastly enhance the unique offerings to visitors and locals in downtown Rochester and we couldn’t be more excited to partner with Harbor Bay,” said Andy Chafoulias, CEO of Titan.
Rochester City Council President Randy Staver provided this statement on the announcement:
"I am very pleased to hear that final details for the financing of the Broadway at Center project have concluded and that construction of the project can begin as soon as next week. The Broadway at Center project has been anticipated with a great deal of excitement as one of the first DMC projects. As DMC plans continue to move to fruition, I think the City of Rochester can look forward to many more projects that will similarly enhance our community. Serving as an example of a DMC public-private partnership, I am pleased that Mr. Chafoulias and his partners will now be able to move forward on this significant project.
It wasn’t announced Friday but it’s believed co-partner Harbor Bay is planning another large and similar project across Broadway on the former Michaels restaurant site. It would possibly be linked to the new Hilton hotel as well as the Shops at University Square building that is owned by Chafoulias.