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Berkman Apartments (Alatus Development)

Beam Project Type: Building     Project in Develop Phase

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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Lead Organization: Alatus, LLC

Confirmed Collaborators: DMC EDA

Potential Collaborators:

Detailed Description

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

Purpose: Residential, Retail


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.



Level 1: Economic Development ; Housing

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

DMC: St Marys Place

Community Health:

Highlight Activities



Status Reports Related PlanScape Status on: Economic Development, Housing

December 13, 2016 DMC Alatus Project Approved by DMCC Board

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

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September 20, 2016 PB: Alatus Project (Saint Marys Place: Housing and Commercial Development)

Rochester's $110 million question was answered at about 1 a.m. today — the proposed 13-story Alatus apartments and commercial project near Saint Marys Hospital took a major step forward after months of intense debate.

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July 09, 2016 TBD: 2nd SW Street Traffic Impact Study

Traffic impacts study on Second Street SW Mixed-Use Development, Southwest Corner of 2nd Stree SW & 14th Avenue SW by Kimley Horn, Prepared for Alatus, LLC

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May 11, 2016 A new development proposal for Saint Marys Place: Housing and Commercial Development

Rather than finding out about the project from the media, wouldn't it nice if DMC had a website that tells the public all the projects that are in the pipeline. What is the project, how much does it cost, what phase is it in?

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October 04, 2018: 6 Crtical Components for Discovery Square

Presented to DMCC Board in its September 2018 board meeting.


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September 19, 2018: November 2017 DMC Dashboard

September 2018 DMCC Board Meeting, YE 2017 DMC Metrics per Nov. 2, 2017 DMCC Board Meeting.

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August 21, 2018: 2016-2020 Housing Framework

Notes and presentation from  the July Housing Conversation hosted by Kim Norton.

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August 08, 2018: Riverfront project gets first nod per Post Bulletin Report

"Early plans for a $180 million construction project along the Zumbro River received some enthusiastic support from Rochester's Planning and Zoning Commission Wednesday night." 

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July 11, 2018: Prosperity Initiative


Minority Business Conference hosted by SBDC, Diversity Council and Prosperity Initiative

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June 29, 2018: Triton Hilton Hotel (Broadway at Center)

June status same as March Status except completion date is now set for 1/31/2019.

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May 27, 2018: Three DMC Proposals

Three projects looking for TIF: Hotel Indigo, Hyatt House Hotel and Wells Fargo Bank Building Renovation

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May 17, 2018: Southeast Minnesota Workforce Development Board Strategic Planning Meeting

openBeam's information on structure and Southeast Minnesota Workforce Development Board Strategic Planning Meeting
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May 08, 2018: CNG Steering Committee working on 2018 Compass Points

 CNG Steering Committee is working on the next version of Rochester/Olmsted County Compass report.

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Last modified by allnode on 2018/06/29
Created by allnode on 2016/05/10

Site Information
  • For the commercial sector, we tend to register startup activities (new companies and new commercial projects) that bring diversification and high-impact opportunities to the area.
  • For the non-profit sector, we wish to shine light on all the organizations and services that otherwise labor under relative obscurity.
  • Our hope is that will encourage cross-sector collaborations and creative solutions.

While there are a number of registries in the community,'s  distinct value is to pilot a database with a data structure and categorizations that answer the questions such as: What organizations or projects/programs in our community that have purported relevance with some of the over-arching focuses put forward by initiatives such as DMC, J2G and Health Improvements?

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. could be an interesting first step.

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
  5. Pre-concept Phase - an early idea or a requirement.
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