In Monday's masterpiece, I told you that Mayo owns two budget hotel buildings close to downtown. They're the Fifth Avenue Inn and Suites, at 20 Fifth Ave. NW, and the Second Street Inn and Suites, at 1013 Second St. SW.
Both hotels are owned and operated by RGI Lodging LLC, of Rochester. They also owned and operated the Rochester Travelers Hotel, at 426 Second St. SW, but that closed last month.
That was the gist of my last few columns: The Travelers Hotel building is also owned by Mayo, and the core parts of that property date from 1918 and 1925. They're in the top tier of properties that merit further evaluation for landmark consideration by the city's fledgling Heritage Preservation Commission.
I thought you'd be interested in knowing more about Mayo's involvement as a landlord in the local hotel business.
The clinic bought the Fifth Avenue Inn and Suites building, which dates from 1965, in October 2010 for $3.7 million from Brentwood Annex LLC. According to Olmsted County property tax records, the land's current market value is $751,000 and the building is valued at $1.34 million, for a total of $2 million.
Obviously, as was true with the Travelers building, the clinic paid a lot more than it was worth, presumably to lock it up for future clinic expansion.
The estimated market value of the Fifth Avenue property has dropped slightly since 2014, at a time when a lot of downtown area properties have gone up in value. The clinic paid about $78,000 in property taxes on it last year.
The clinic bought the Second Street Inn and Suites property in December 1998 from Ozlen Yusolf for $1.37 million, which was about what it sold for in the mid-1980s. Now, however, it's worth about half as much, according to county property tax records. The land has an estimated market value of $282,600 and the buildings are at $410,600, for a total of $693,200.
The clinic paid $23,162 in property taxes on that hotel property last year.
The plain Jane concrete buildings, just east of Saint Marys Hospital, were put up in 1959. Let's just say they're not the kind of deluxe structures that Mayo would proudly identify with its blue three-shields logo.
While I'm thinking about it, I'll just note that I've heard very interesting things about redevelopment that may be in the works at the intersection of Second Street Southwest and 11th Avenue. My lips are sealed for now, but a Twin Cities-based developer is said to be cooking up a major project. If you know more and care to share, you know where to find me.
When you read about development issues, transit and the future of Second Street between Saint Marys and downtown, just remember: There's a lot of money and power churning around behind the scenes and you, my dear citizen, don't know the half of it. That's where I come in.
Ahead in the clouds
As I've reported a few times, Mayo's sale of its $46 million data center to Epic Systems two months ago could turn out to be a big deal for Rochester, even aside from the hundreds of millions that Mayo is spending with Epic on its electronic medical records system.
Epic, based in Verona, Wis., near Madison, is moving quickly to take a lead position in the data hosting business, otherwise known as cloud-based services. A story on the Health Data Management website says the hybrid business that Epic is growing is "an absolute necessity" in the fiercely competitive world of health data management, and cloud-based electronic health records is the number one trend identified by Healthcare IT News.
Epic's acquisition puts Rochester on the map in that fast-growing industry. As I've noted, it's a big enough deal, technologically, that RPU will have to build a new $6.1 million substation to accommodate it.