Demolition of former Michaels Restaurant in Rochester's downtown to start this summer
May 31—ROCHESTER — A permit to demolish the former Michaels Restaurant property in downtown Rochester seems to signal the end for the legendary local hot spot as well as the possibility of a new development.
BGD5 Development LLC, a Titan Development & Investments company, filed a permit on May 27, 2022, for the "Demo and removal of one story structure constructed of lumber and masonry. The existing basement wall and slabs to remain. (11, 13, 15, 17 Broadway Ave S)."
The demolition does not include 9 Broadway South, which is the adjacent parking lot. That lot is owned by Pre Holdings LLC. Pre Holdings is managed by Barb Hexum.
Demolition has been long anticipated for the site near the intersection of Broadway Avenue and Center Street that has been unused since Michaels closed at the end of 2014. The Pappas family had operated the restaurant at that spot for 63 years.
"The demo will happen this summer as there is hazardous material we are cleaning up first. Michaels building is structurally unsound, and we are taking this down for the safety of the local citizens and our visitors," stated Titan CEO
Andy Chafoulias
this week. "The city has been supportive along with the DMC (Destination Medical Center) and has been approved by the council."
Titan's BGD5 Development
purchased the amalgam of buildings for $5 million in February
from
Harbor Bay Real Estate Advisors
of Northbrook, Illinois.
Harbor Bay purchased the property in 2016 from 15 South Broadway LLC, which is a joint venture owned 50-50 by the Chafoulias and Pappas families. That group bought the property on Jan. 6, 2015, from the Pappas family for $1.4 million.
Acting as the city's economic development authority, the
Rochester City Council unanimously approved
designating the restaurant site and three connected parcels as a "structurally substandard structure" in April. That extended the property's eligibility, first approved in 2018, for city financial support to replace the building.
The big question for the site is what will happen after the demolition?
While he said early talks about a proposed development on that site have already begun, Chafoulias isn't discussing any specific details yet. However, he has previously pointed to his answer in a 2021 interview when asked about business opportunities in downtown Rochester, when he listed an urban grocery store, a pharmacy and student housing as needs for the area.
"With some luck, all of that could happen," he said. "I'm ready to make a sizable investment. ... I'm very hopeful that, in the coming months, we can work really well together to do something that's transformational once again in our city core, but it's going to take good cooperation from the city and DMC for this to become a reality."
Jeff Kiger tracks business action in Rochester and southeastern Minnesota every day in "Heard on the Street." Send tips to
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@whereskiger
. You can call him at 507-285-7798.
