May 31–A proposed $180 million to $200 million downtown Rochester waterfront project is about more than making a profit, says the Abu Dhabi-based developer.
"There's this feeling that Mayo Clinic has been good for UAE dignitaries. We'd like to give back and contribute to the DMC (Destination Medical Center) plan," said Sameh Muhtadi, Bloom Holding's chief executive officer. "What prompted this is the close relationship of UAE with Mayo Clinic. In particular, shareholders of our company frequent Mayo Clinic on a regular basis."
He shared more about Bloom's vision during an interview the day after presenting an early version of the plan to the DMC Corp. Board.
Bloom is a multi-billion-dollar real estate firm with hospitality, residential and education projects in the UAE and around the globe. Bloom is under the umbrella of National Holding, which is owned by members of Abu Dhabi's royal family.
Early plans for the massive Rochester project showed a mixed-use development with two towers along the Zumbro River that would include about 100 condos, 40 leased apartments, 120 hotel rooms and 45 serviced apartments in the hotel. The tentative plans showed more than 94,000 square feet of office space, 20,000 square feet for food and beverage establishments and 2,400 feet for retail.
The project, including a large public plaza with water features and other amenities, is slated to be built south of Second Street Southeast and east of South Broadway Avenue, along the Zumbro River.
Bloom is negotiating with the city of Rochester for use of the riverfront land. The city and Bloom hope to have an agreement and "a fixed concept" for the project by the end of 2016.
Change of plans
The seeds of this ambitious project go back many years. Bloom International Realty bought the seven-story Associated Bank building on the southeast corner of South Broadway and Second Street for $7 million in 2013. Working with Rochester's Oxford Property Management, Bloom originally planned to demolish the almost 50-year-old building and construct a luxury hotel on the site.
"It was a very simple plan. But then our architects and designers looked at it and found the plot is not ideal for that," Muhtadi said. "We began looking around and noticed the parking ramp behind it is old and destined to be demolished. Then we started talking to the city about the riverfront."
As it stands, the proposal now is a three-phase plan that will add more more high-end hotel rooms, apartments, retail and office space to Rochester's blossoming downtown.
The first phase will be renovating and upgrading the Associated Bank building and bringing in new tenants. Most of the former tenants left when it was expected to be demolished.
Building a tower with parking on the city-owned property known as the Labor Temple building on Fourth Street is slated to be the second phase. That will provide parking options when the old public ramp behind the Associated Building is demolished in the third phase.
Muthadi said the proposal will include 120 hotel rooms, about 20 percent of which will include five-star amenities. That goes against the local belief that there is not a enough demand to support five-star rooms in Rochester.
"Quite frankly, local economic consultants discouraged us from doing that, but we felt we needed to go outside of the box in our thinking," he said. "For most part, it will be a four star, but a four star in UAE is much more like a five star hotel here. It will be a higher standard than anything this town has."
Bloom envisions those rooms will be occupied by American visitors as well as international ones from China, Russia, the UAE and elsewhere.
"There is a feeling that Rochester can do with some enhanced services, some enhanced hospitality and a residential component within proximity of Mayo. We've noticed most people who work at Mayo don't live within walking distance. We'd like to create a 'work, live, play mix' to encourage people to stay within the town itself," Muthadi said.
He believes that, along with extended-stay options for visiting patients, will benefit Mayo Clinic and the city. They plan to enhance their offerings with "a lifestyle component," which means adding spas, state-of-art gyms, a private theater and concierge services.
