Allina Hospitals & Clinics Selects Minneapolis

[Twin Cities]

Allina Hospitals & Clinics Selects Minneapolis for Corporate Headquarters Board

Decision Signals Consolidation of 11 Corporate Service Sites For Minnesota's Third Largest Employer

PR News Wire

Published February 18, 2004 0218BC-MN-ALLINA-HOS

MINNEAPOLIS, Feb. 18 /PRNewswire/ -- The Allina Hospitals & Clinics Board of Directors has chosen the Sears/Midtown Exchange located on Lake Street in South Minneapolis as the future headquarters for the state's largest nonprofit health care delivery system. This decision comes after more than a year of deliberations on potential sites with the final candidates narrowed to the land parcel off of I-94 and Snelling in St. Paul, a site in Roseville at County Road C2 and the Sears/Midtown Exchange site. The Allina Hospitals & Clinics corporate headquarters, called Allina Commons, will house around 1,000 employees and include an educational conference center.

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"We were very impressed with each of the proposals and the professionalism with which they were presented," said Richard (johnson) Pettingill, Allina president and CEO. "This was a difficult decision, but all three cities submitted proposals far exceeding our expectations. Minneapolis, Roseville and St. Paul are all excellent choices for any corporate headquarters. Mayors Rybak, Kelly and Klausing have shown strong leadership through this entire process. We will continue to find additional opportunities to work with them in each city."

The Sears/Midtown Exchange site has sat vacant for more than a decade. Now Ryan will be developing the site with Allina Commons as a major cornerstone of that development. Allina will be signing a long-term lease with Ryan Companies. Costs to move, above the lease expenses, are approximately $7.9 million, but will be offset by the sale of two real estate holdings from the consolidation; one at 1801 Nicollet and the other on Willow Street near Loring Park.

Allina estimates that the move to a consolidated headquarters will save more than $2 million each year from their current costs of maintaining 11 different locations for corporate services. "While cost savings were a primary factor, Allina's mission and values were key in our decision," said Pettingill. Close proximity to Allina's Abbott Northwestern Hospital, located across the street from the Sears/Midtown Exchange, and the community renewal opportunity for the Phillips and Powderhorn Park neighborhoods were major factors, according to Pettingill.

The steering committee of the board used a decision-making process that based their site recommendation on Allina's mission and values, according to Pettingill. "We will be part of the fabric of the community. Whether that be through supporting economic development or through community improvement initiatives, we want the community through our good deeds to know us and trust us as good neighbors."

The St. Paul site, according to Pettingill, was a strong consideration. It offers access to transportation and highways and is adjacent to the proposed technology corridor. Pettingill also cited Roseville as having a competitive proposal, an attractive site next to walking trails and parks and central to all Allina facilities.

In the end, according to Pettingill, Allina's mission led the steering committee to consider sites where Allina could represent more than bricks and mortar.

"The steering committee appointed by the board was thoughtful and contemplated the opportunities presented by each community," said Pettingill. "It's important to note that Allina has major investments across the Twin Cities. We will continue to make significant contributions in all the communities we serve regardless of where our headquarters is located." Historically, Allina's United Hospital has made significant contributions to the West 7th communities through training programs, community clinics and violence prevention programs.

Over the next several months, an Allina employee advisory committee will be working with Allina leaders to develop the plans for Allina Commons. Pettingill said employees will play an important role in what the new facility looks like, how office space is organized, and where Allina will look first to become an active community partner.

Allina Hospitals & Clinics is a non-profit network of hospitals, clinics and other health care services, providing care throughout Minnesota and western Wisconsin. Allina owns and operates 15 hospitals, 44 clinics, hospice services, pharmacies, and emergency medical transportation services. Allina Hospitals & Clinics can be found online at http://www.allina.com .