The new $80 million sibling of a key Destination Medical Center complex is slated to break ground soon in Rochester.
Twin Cities-based M.A. Mortenson Co. is moving ahead to build the proposed 121,295-square-foot Two Discovery Square center at 300 Second Ave. SW next to its One Discovery Square complex. It will be built on space now used for parking.
The groundbreaking is slated for yet this fall, possibly yet this month, with a target completion date in mid-2022.
The five-story building will be significantly larger than the original four-story, 89,000-square-foot One Discovery Square as well as costing more than double the $35 million for the first building.
Unlike the first one, plans call for breaking ground this fall, before any tenants have been signed up. Mayo Clinic pre-leased 30,000 square feet spread over multiple floors.
Will Mayo Clinic be a tenant in the new complex?
“Conversations with Mayo Clinic and their tenancy in Discovery Square 2 is ongoing,” said Mortenson’s Director of Corporate Public Relations Cameron Snyder.
One Discovery Square, which opened last September, is about 90 percent leased, according to outgoing Destination Medical Center Economic Development Agency Director Lisa Clarke. Some of the tenants include Epic Systems, WuXi Diagnostics, Café Steam, Royal Philips, Boston Scientific and the University of Minnesota Rochester.
Snyder said that Mortenson is “harnessing the interest” generated by One Discovery Square.
“We are building on the momentum created by One Discovery Square and have a multi-pronged approach that is being responsive/proactive in the light of the COVID-19 pandemic,” wrote Snyder. “This includes efforts to leverage Mayo Clinic and its relationships, Mayo Clinic’s digital health strategy, current tenants of One Discovery Square and others.”
The City of Rochester has approved a plan to provide up to $7.3 million in tax increment financing to Mortenson for this new project.
The proposed complex is the latest development in DMC's 16-block Discovery Square sub-district described to be a "hub for bio-medicine, research and technology innovation."
The site development also maps out "an approximate future location" for a much smaller Three Discovery Square building on a grassy area at the southwest corner of Third Avenue Southwest and Fifth Street Southwest.