Rochester could get new 14-story building that includes student housing downtown

ROCHESTER — A local developer has plans to build a 14-story, 175,000-square-foot downtown building in Rochester that could house hundreds of college students in the area.

Titan Development could construct the building on the former Michaels restaurant site at Broadway Avenue and Center Street, as well as connect it to the city’s skyway system. According to city officials, the building would house retail space on the first and second floors, office space and student support on the next three floors, and then more than 200 units of student housing for the rest of the building.

The building would address ongoing housing needs for the University of Minnesota Rochester, which is still planning to expand its campus downtown, but city officials say developers haven’t yet contracted with any local colleges or universities.

“There are multiple institutions of higher learning in Rochester, and the developer has determined there is demand for that style of development,” said Josh Johnsen, the city’s strategic initiatives director, during a City Council meeting Monday.

Representatives with Titan on Tuesday declined to comment on the project or its timeline.

Council members voted 5-2 to enter into a two-year agreement with the developers that could result in tax breaks and leased parking space from nearby city ramps, though nothing has yet been set. It could also include assistance to connect the building via skyway to the nearby Hilton hotel and the Galleria at University Square.

This isn’t the first Titan Development project related to higher education. Titan was involved in turning the former DoubleTree Hotel into more than 400 student housing units for the U’s Rochester campus in 2022, It also leases the university space in the Galleria.

Council members largely welcomed the project, though Patrick Keane had reservations over the city’s role in the project, and Molly Dennis sought more city input to address community needs. Council President Brooke Carlson noted that Rochester Community and Technical College and Winona State University also faced increasing housing issues for its students, while Mark Bransford argued the project could be a catalyst for more downtown development.

At least one business owner in the community is critical of the project. Antique store owner John Kruesel argued that the project, if geared toward the U, isn’t necessary because the university owns several blocks of land near Soldiers Field Memorial Park by the former YMCA.

Kruesel said the land looks like it “has been abandoned … by 10 former taxpaying businesses,” which should be redeveloped for student housing needs instead of a prime downtown location.

“Let it go where it was supposed to go,” he said.

U officials had planned to build housing and classroom space in that area before the pandemic hit in 2020. A previous agreement with the YMCA fell apart once the Y closed at the beginning of 2022, forcing the university to alter its campus plans.