Downtown revitalization grants totaling $1.6 million announced, with more expected

Sep. 9—ROCHESTER — More than half of $3 million in available economic revitalization grants for businesses in and around the Destination Medical Center District have been awarded.

"It's really a whole range of businesses that have applied and we've been able to support," DMC Economic Development Agency Executive Director Patrick Seeb said Thursday afternoon as he announced the first 30 grants at True Queens Boutique, one of the recipients.

Receiving a combined $1.6 million, the 30 awardees include restaurants, retail outlets, nonprofits and a variety of other businesses.

The largest awards of $200,000 each went to:

* Capital Ventures LLC, which has been working toward a reuse of the former Olmsted County Bank and Trust building.

* City Walk Apartments, a planned 142-unit complex at the intersection of Second Street and Sixth Avenue Southwest.

* The Landing, which is creating a day center to serve people facing homelessness.

* The Well, a Powers Ventures effort to renovate the former Dooley's Pub.

The funds, which originated from the

Minnesota Department of Employment and Economic Development,

are intended to help businesses that are "rebuilding, starting afresh, entering the market and really reinvigorating the core of the city," Seeb said.

The grants can cover up to 30% of the project costs.

The DMC EDA, in partnership with the city of Rochester, received $3.12 million from the state agency in October as part of the state's Main Street Economic Revitalization Program.

The funds are intended to be used for investment in building businesses and DMC EDA staff estimates the awards so far have leveraged more than $48 million in private investment into Rochester's downtown.

Rochester Mayor Kim Norton recognized the effort as a way to help businesses recover from the impacts of the COVID-19 pandemic.

"Our local businesses play such a vital role in the vibrancy and character of our community," she said. "I have heard from many businesses how impactful the COVID-19 pandemic has been, and I hope that these grant dollars will help with both recovery and their ability to thrive in the future."

Seeb said the remaining $1.4 million from the state funds will be awarded as new applications arrive, with reviews taking place on a monthly basis. The final funds must be awarded by the end of 2024, for projects that will be completed by the end of 2026.

Businesses within or adjacent to the DMC district can apply for the funds to open a new business, modify an existing business or expand operations.

Information on the program and applications are available online at

dmc.mn/main-street-grant

.

Each application is reviewed through a three-step process, starting with a community-based team of downtown stakeholders, followed by a review by the DMC EDA board. Final approval by DEED officials is also required.

Seeb said the requirement for final DEED approval delayed the announcement of the grants.

"We've been holding our breath, waiting to tell the stories of all these awardees," he said.

Applications were reviewed based on the following criteria:

* Revitalization of properties or organizations within or contiguous to the DMC district, which were harmed by the COVID-19 pandemic.

* Elevating opportunities for black, indigenous, people of color; veterans; disabled business and property owners; and disadvantaged business entities.

* Creating and retaining permanent jobs.

* Enabling businesses to strengthen and diversify their products and services.

Norton said 34% of the businesses were BIPOC- or women-owned, which Seeb credited to efforts by work of the community group, as well as DMC EDA staff.

"We wanted to make this process as fair and equitable as possible and to help those organizations in greatest need," he said.

In addition to the grants targeting downtown businesses, the DMC EDA is expected to launch a grant program for businesses outside the district next month.

The agency received a second DEED grant in May, providing $988,000 to help businesses outside the DMC district. The proposal being finalized with the state agency will target businesses along a section of Seventh Street Northwest, known as the Cook Park Design District, and a portion of Highway 14 in Southeast Rochester.

The first 30 recipients of economic revitalization grants awarded through the Destination Medical Center Economic Development Agency were announced Thursday. The grants, totaling approximately $1.6 million, were:

* 100 1st Ave. Commercial Condo Association: $2,250, repaving the parking lot with asphalt.

* 1AF, LP: $1,700, replace lobby flooring.

* BGD5 Development, LLC: $52,900, demolition of existing blighted structure, with intent of removing for future planning and development

* BGD5 Mall DBA: Galleria at University Square — $23,797, Broadway and Peace Plaza facing: Exterior entrance repair & repaint, exterior lighting replacement, exterior door replacement.

* Capital Ventures, LLC: $200,000, restoration of the building for new restaurant concept

* Chabad of Southern Minnesota: $59,900, renovation of hospitality house operator suite into patient/guest quarters.

* City Walk, LLC: $200,000, development and construction of 142 unit apartment building with 142 parking stalls.

* Everyday 365 Clothing, LLC: $4,500, renovations to outside of storefront, shelving space to be built into walls, new paint job, new signage, door for back room, new flooring, signage/lighting inside of store.

* Guerin Studio, LLC: $22,500, remodel storefront

* Healing Touch Spa, LLC: $35,000, construct two couples massage rooms and a meditation room and a dispensary for staff.

* Interiors by J. Curry, LLC: — $1,220, purchase and installation of a new sign.

* Ironton, LLC: $85,800, building out the main floor to accommodate office space.

* James Krom Natural Images: $1,750, replace flooring.

* Kahler Inn and Suites: $15,000, improvements to the façade of the east facing wall of the building.

* Knight's Chamber: $9,600, remodeling the front entry of the business, as well as adding a dressing room, lighting and repainting.

* La Michoacana Purepecha 3, LLC: $52,500, remodeling of the entire site, with dry storage, employee break room, kitchen preparation, sinks, hand-wash stations, and new flooring

* The Landing MN: $200,000, property is being renovated to house a commercial kitchen, day room, restrooms, showers, and laundry as well as offices for leadership, staff, and volunteer medical providers.

* Marrow Restaurant: $133,919, demolition, site preparation, build-out of restaurant and installation of equipment, including engineering, pre-design and design work.

* Masjed Abubakr A-Seddeig, Inc.: $100,000, renovating two floors of the building with classroom space to support new job training programs. An elevator will also be installed to support access to the classrooms.

* Neighborly Group: $58,700, remodel of Neighborly Creative and Neighborly Gifts stores.

* Nordic Shop: $23,400, expanding their footprint to an adjacent vacant storefront to accommodate growth of in-store and web-based sales.

* Rochester Art Center: $5,100, exterior window bird collision mitigation.

* Rowan International Grocery Store, LLC: $15,000, installation of a walk-in cooler and remodeling of the building.

* Skiathos, LLC: $8,000, repairing and restriping the parking lot of the Queen City Center Strip Mall.

* Thesis Beer Project: $9,000, construction of a new 30-40 seat patio on Second Street.

* TRCH Plaza, LLP: $11,000, new roof on the building.

* True Queens Boutique: $4,500, new downtown business will use funds to assist with purchasing signage, flooring, furniture, lighting, tables and shelves.

* The Well: $200,000, renovation of the former Dooley's Pub site into a new family restaurant.

* Well Living Lab, Inc: $10,000, energy efficiency and technology upgrades.

* Zumbro Lutheran Church: $6,000, purchase and installation of an exterior digital sign.