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New dialysis center on schedule to break ground

This is the future location of the DaVita Dialysis Center to be built in Park Rapids. The development will be built using Tax Increment Financing.

A new dialysis center is on schedule to break ground in Park Rapids by Nov. 1.

A modified Tax Increment Finance District was approved at Tuesday night's council meeting, which will help developers with the cost of construction. The council also said it was in favor of a draft of a business subsidy agreement. The final draft will be presented at the next council meeting for approval.

Dr. Jeff Skogen, a kidney specialist with Essentia Health, said earlier this year that his motivation in working to bring a dialysis center to Park Rapids was his patients.

A lot of people from Park Rapids are getting dialysis in Detroit Lakes or Fargo and Skogen has been working for many years on bringing the dialysis center to Park Rapids.

SDG Properties II LLC is working on the development of the center. The opening date is scheduled for next spring.

The center will add between five and seven jobs to start and has room for expansion based on the number of patients. The proposed center will be located on the south side of Seventh Street West between Main Avenue and Highway 71 in Park Rapids. The city is working with the dialysis center partners to rezone the property.

The dialysis center will be on the first floor of the two- or three-story building, allowing for other tenants to fill the rest of the space.

The development agreement that will be approved later this month lists two phases of construction.

SDG will agree to:

Phase I - Purchase the three parcels initially proposed for the development, demolish the improvements and prepare the site for new development. It will also secure a building permit and construct at least 10,000 square feet of commercial space to house DaVita Dialysis Center and additional medical/retail offices to be substantially completed by April 31, 2013.

Phase II includes purchasing additional parcels near the dialysis center (the Knapp Grover Property), completing demolition and site improvements. The second phase also includes constructing a minimum of 5,000 additional square feet of office/commercial building space.

In the agreement, the city will agree to issue TIF payments to the developer and reimburse $75,000 of costs associated with the acquisition, demolition and site stabilization/restoration of the three parcels from available surplus increments.

Traci Ryan, with David Drown Associates, has been hired to review the city's TIF Districts to determine everything is in order.

Anna Erickson
Anna Erickson is editor of the Wadena Pioneer Journal.
(218) 631-2561