HealthEast Plans Medical Clinic In Hugo

Frenchman Place Final Approval Contingent On Everton Improvements

HUGO - If property owner Len Pratt and the city can figure out a way to fund a road improvement project, it appears that a new HealthEast clinic could open in Hugo as early as late fall.

On May 5, the City Council approved a rezoning, preliminary plat, site plan, and variance for the offi ce/medical building that represents the first phase of "Frenchman Place 1st Addition," a mixeduse development planned for the property immediately northwest of the intersection of County State Aid Highway (CSAH) 14 and Everton Avenue North, east of Festival Foods. The 54.1-acre site is divided into several zoning districts. The northern portion of the site was rezoned from Future Urban Service (FUS) to Medium Density Multi-family Residential (R-5) as Pratt requested.

Those districts are separated by Rosemary Way, a collector street planned to bisect the property and join Everton Avenue North to developments to the west.

If the project goes ahead, the northern segment of the project will ultimately include a private school, church and apartments on 25.28 acres.

However, the city has stipulated in discussions that the project "is contingent upon upgrades to Everton Avenue," and an agreement has yet to be reached between Pratt and the city regarding how such upgrades would be funded.

Council is set to discuss possible funding mechanisms at its meeting on May 19.

"The Right Place To Be" Len Kaiser, HealthEast's project manager, said that adding another clinic within Hugo was a good move for HealthEast.

"It's been a long time coming - we've felt that there is a need for additional clinic services. I looked around Hugo and Lino Lakes, and finally landed back in Hugo," he said. "It's the right place to be for access and the perfect spot to be with the growing community."

Kraus Anderson, Inc. will construct the 22,200-square-foot building and lease space to HealthEast Hugo Clinic. KA Development Manager Matt Alexander said that the lease is currently in the process of being finalized.

Kraus Anderson owns, manages and leases almost 4.5 million square feet of commercial space in the Twin Cities, Alexander said, making the company "the second or third largest landlord in the Twin Cities area."

HealthEast's 5,500-square-foot clinic will initially house two family physicians, Kaiser said, "who will do the full spectrum of family medicine." X-ray and laboratory services are also planned.

Phase I will include 6 exam rooms, with the potential to double that number in 2 to 3 years. Phase II would likely bring the clinic size to over 8,000 square feet within the building, he said.

Community Development

Director Bryan Bear noted that a bit of competition between Fairview and HealthEast would probably be a good thing for residents.

"There's has been a need for clinics in the community. When Fairview moved in, they helped to fill that need, and I would imagine that HealthEast is looking to capture some of the market," he said.

Early last week, Hugo Building Official John Benson told The Citizen that over 50 residential building permits had been on hold waiting for road weight limit restrictions to be lifted. Weight restrictions were lift ed last Thursday. As Hugo adds residents, the demand for medical clinics in the area is certain to continue to rise.

The Northern Lights Pediatric & Adolescent Medicine Clinic that was to have opened earlier this month on the corner of Victor Hugo Boulevard and CSAH 14 has been held up by litigation (see story, Page A1), although the exterior of the building is virtually complete.

While final city approvals are still around the corner, HealthEast offi cials sound confident that the project will get off the ground sooner than later.

"Right now, we're targeting late fall, maybe October or November," for an opening date, Kaiser said.

- Deb Barnes contributed to this story.