2016-12-01 Eagan Business NewsEAGAN BUSINESS NEWS | FOURTH QUARTER 2016 1cityofeagan.com
Eagan’s city offices will be closed the afternoon
of December 23, plus all day December 26 and
January 2. Time to rest and rejuvenate for 2017!
It’s nearly that time of year again: The
Minnesota Legislature will convene on
January 3, 2017, kicking off its 90th session.
Back in 1971, the southern portion of San
Francisco Bay Area was dubbed Silicon Valley
for its plethora of semiconductor businesses.
Today, the name is associated with its
numerous high-tech companies.
While Eagan is unlikely to adopt a new
business moniker, for the purposes of this
article, we might consider Mississippi Medical
or the Healing Plain for the city’s vast number
of health-care businesses. At least 8,000
employees in Eagan are tied to outpatient care
(2,000) and insurance (5,800) alone.*
The state’s largest health insurer, Blue
Cross Blue Shield Minnesota, is headquartered
here, as is Prime Therapeutics, a pharmacy
benefits company. You’ll also find CaringBridge,
the global nonprofit that connects loved ones
during health crises; the Minnesota chapter
of the American Cancer Society; and Biothera
Pharmaceuticals, a cancer research company.
Medical-equipment firms in Eagan include
Bird & Cronin, which manufactures orthopedic
soft goods; Cardia, which makes transvenous
closures; Corvida Medical, which manufactures
drug-transfer devices; Skyline Medical, which
produces waste-fluid-disposal systems; Summit
Medical, which manufactures sterilization
and surgical equipment; and Stericycle,
which sterilizes/disposes medical equipment.
Additionally, DeCare Dental is based here,
Erickson Technologies provides computer-
based equipment to dental practices, and
Patterson Dental has a major presence here.
And then there are Eagan’s numerous
clinics—our main focus this issue. They include
Allina Health, Fairview, Health Partners
and Park Nicollet. Plus, specialty practices
include Crutchfield Dermatology (see story,
page 3); Jennifer Eisenhuth Orthodontics;
LeafLine Labs; the Midwest Ear, Nose & Throat
Specialists; the Minnesota Center for Obesity,
Metabolism and Endocrinology; and The
Urgency Room, an emergency department
sans hospital.
Interestingly, a hospital is one medical
entity Eagan doesn’t have; since 1984,
Minnesota law has prohibited the construction
of new hospitals and the expansion of bed
capacity at existing hospitals without prior
approval of the state legislature. Despite that,
a recent survey of Eagan residents found that
87 percent view opportunities for health and
FOURTH QUARTER 2016
VOLUME 15 NUMBER 4
Healthcare Central
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It’s ancient wisdom: Change is the only constant
in life. That’s true for us individually. That’s true
for our country and our world. And it’s certainly
true for businesses and cities. In this issue, we look
at our city’s thriving medical industry and at the
changing landscape, both figuratively and literally,
of health care clinics. Also, a special two-page insert
brings you up to date on the wide variety of new
development taking place in Eagan. Read on to
learn more.
DECEMBER 31, 2016
Winter Market Fest
Eagan’s indoor farmers markets are held every
other Saturday, now through Feb. 25, 10 a.m. to
1 p.m. Free admission.
JANUARY 6, 2017
Legislative Breakfast
Attend 2017’s first legislative breakfast, 7:30–
9 a.m. Find details about this monthly event,
sponsored by the Dakota County Regional
Chamber of Commerce, at dcrchamber.com.
JANUARY 17, 2017
Open to Business
Eagan entrepreneurs are invited to access
Open to Business for services and loan
packages. Visit City Hall Tuesday, January 17,
1–3 p.m., or the third Tuesday of any month;
visit cityofeagan.com/OTB; or contact Laurie
Crow at crow@mccdmn.org.
FROM THE EDITOR
Healthcare CONTINUED ON PAGE 2
Eagan—a hotbed for medical research, health insurance, and
medical manufacturing—boasts a bevy of health care clinics, all
striving to offer great patient care at a reasonable price.
EAGAN BUSINESS NEWS | FOURTH QUARTER 20162 cityofeagan.com
Healthcare CONTINUED FROM COVER
wellness as excellent or good.
No doubt that’s because of the many Eagan
clinics plus the city’s proximity to several
hospitals—including Fairview Ridges, Regions
and the University of Minnesota. That means
competition for patients and their dollars is fierce.
And that tight business marketplace is only going
to grow more constricted as two new clinics open
in Eagan in the next couple of months.
Growing demand for orthopedics
“Patients are looking for a really good patient
experience and a good outcome but at a
better price point,” says Adam Berry, CEO
of Summit Orthopedics. In the past, patients
needing surgery headed to a hospital. These
days, “most people don’t require a hospital
experience. They need more specialized care.”
If it seems the demand
for orthopedics services
has grown, you’re right.
“We have an aging
demographic between the
ages 55 and 65—people
who don’t want to change
their active lifestyles,” says Berry. Second,
there is an “athleisure group with repetitive-
type injuries,” and third, children “specializing
in one sport, not taking a season off. Honestly,
in the last four years there has been an absolute
explosion [in the demand for care].”
No wonder then that Summit Orthopedics
is building a full-service Eagan facility with a
surgery center, care suites and MRI offerings;
the 70,000-square-foot center will replace two
smaller Summit Orthopedics clinics currently
serving the area.
When the new Eagan clinic opens in
February, it will draw even more local
patients—plus out-of-town patients due to its
proximity to the airport. But why fly to the
Twin Cities for care? Once again, the reason
is price. Minnesota’s high-quality orthopedic
care tends to cost less—for example, a knee-
replacement surgery might cost $60,000
in Alaska while just $20,000 at Summit
Orthopedics. When a difference in cost looms
that large, many insurance companies are
happy to foot the bill, including travel.
Other local orthopedics groups recognize
the growing demand as well. Berry calls the
orthopedics marketplace “hypercompetitive.”
In fact, just a year after Summit Orthopedics
opens its new clinic in Eagan, Twin Cities
Orthopedics plans to open a facility here
as well, near the new Minnesota Vikings
headquarters.
Cost is king
Cost is a weighty factor in
the health care industry,
agrees Sally Wahman, chief
operating officer, Fairview
Medical Group. “[Fairview
wants] to be a cost-effective option,” she says,
“so we pay very close attention to what things
cost and are trying to be very efficient in how
we deliver service. But lower cost can’t come at
the expense of quality or patient service.”
At roughly 42,000 square feet, the new
Fairview facility (slated to open at Central
Park Commons in December) will be over
twice as large as the previous clinic with
many new specialties, including heart care
and optometry—in part to serve the patient
population in a clinic, not a hospital.
“We’re shifting more care into a clinic
setting, because it’s more cost effective as
well as that’s what patients want from a
convenience and access perspective.” That
said, she points out that “our Eagan clinic has
a fantastic relationship with Fairview Ridges
Hospital [in nearby Burnsville].” She also
compliments the University of Minnesota
hospital and
the Masonic
Children’s
Hospital; the
Fairview clinic
works with
both.
Closer
to home,
Wahman touts
Fairview’s new
Urgent Care,
also opening at the new clinic and offering—for
the first time—full-day service rather than just
evenings and weekends.
Challenge—or opportunity?
A group of licensed emergency-department
physicians saw that issue as a business
opening nearly seven years ago. The
Minnetonka-based Emergency Physicians
Professional Association opened The Urgency
Room in Eagan in 2012; in total, the company
has three clinics in the east metro.
“Basically it’s an ER without the hospital,”
explains Dr. Carolyn McClain, medical director.
She notes that The Urgency Room features
a high-complexity lab,
an x-ray machine, a CT
scanner and ultrasound
machines in order to
treat acute injuries—
things that surpass
what a standard urgent
care offers. In addition,
she says, The Urgency Room accepts most
insurance, offers generally short wait times,
and gets patients admitted at local hospitals
almost immediately if needed.
While the clinic has found acceptance in
Eagan, it still has room to grow its business
as patients discover its location and better
understand its services. Bottom line for many
people, however, might be its price: “Health
care is so expensive,” McClain says. “Our goal is
to make an ER visit about 30 percent cheaper.”
It’s obvious that the medical marketplace
is changing: Care is moving to clinics;
health costs are rising; and consumers are
becoming more price savvy as the cost for
health insurance rises, health insurers balk at
individual coverage, and a new White House
administration considers broad healthcare
reform. Changes will no doubt continue.
But it’s safe to say that Eagan medical
providers are in agreement: “The Twin Cities
marketplace is really competitive, and Eagan
represents that,” says Wahman of Fairview.
“We have great health care providers here, so
there’s a lot of competition to provide that level
of service and quality and at the same time
reduce cost. People do have options.” EBN
*According the Minnesota Department of
Employment and Economic Development’s
Quarterly Census of Employment and Wage Data.
Dr. Carolyn McClain
Sally Wahman
Adam Berry
EAGAN BUSINESS NEWS | FOURTH QUARTER 2016 3cityofeagan.com
Q&A: Charles E. Crutchfield III, M.D.
Healthcare innovator, medical-
school professor and award-
winning physician weighs in
on selecting Eagan, practicing
medicine and today’s health care.
Despite the fact that both of his parents were
physicians, becoming a doctor wasn’t a given
for Charles E. Crutchfield III, M.D. An early
interest was architecture, and he also applied—
and was accepted—into both the U.S. Navy and
Air Force pilot programs. But eventually his
passion for research drew him to medicine.
When Dr. Crutchfield attended his first
medical school class in dermatology, “I got hit
right between the eyes,” he says. “I remember
that day walking out [thinking], ‘This is what I
want to do.’”
Today, Dr. Crutchfield is a Clinical Professor
of Dermatology at the University of
Minnesota Medical School; he is a
philanthropist, donating to numerous
local causes; and he is a longtime Eagan
resident.
Most important, he is an award-
winning physician: He’s annually
selected as a “Top Doctor” (Mpls/
St.Paul Magazine) and a “Best Doctor
for Women” (Minnesota Monthly).
He’s been named to several top-
doc lists, including “America’s 10
Leading Dermatologists” (Black
Enterprise magazine), “America’s Top
Doctors” (Castle Connolly Guide)
and “America’s Top Dermatologists”
(Consumers’ Research Council of
America). And Dr. Crutchfield has
been selected as one of the “Best
Doctors in America,” an honor
awarded to only four percent of
all practicing physicians. Finally,
Crutchfield Dermatology offers the
kind of specialized patient care increasingly
popular in the Twin Cities. Read on as he
shares his professional insights.
Why Eagan? How did you choose to
locate your clinic here?
In 1998, I set up a practice here as a partner
with Dermatology Consultants, and then I
started my own practice in 2002. I actually
had moved to Eagan when I was doing my
dermatology residency at the University of
Minnesota. I liked Eagan, because it was easy
to get to everywhere and the cost of living was
good—especially for a resident. We bought a
townhome and fell in love with the community.
[Plus], there were really no dermatology
offices in the southeastern metro; so I said, we
really need to look at this area.
While Crutchfield Dermatology serves
patients with all kinds of dermatological
conditions, what are the clinic’s specialties?
Our clinic is a center of excellence for
the treatment of acne, psoriasis, aesthetic
medicine and also ethnic medicine. As an
African American physician, I specialize in
the treatment of ethnic skin. We have our own
phototherapy center for skin diseases, and we
have our own medical spa.
Are most patients from Eagan and the
surrounding area?
Now that we have an established practice and
we’ve been here for over 14 years, we have a
patient base of over 50,000 patients. We see
a lot of patients from the Eagan area and the
southeastern metro, but we also see patients
from Maple Grove, Center City, Wayzata, from
all over, including from all over the United
States. We’ve actually gone international,
[with] patients who’ve flown in from Europe,
Africa, Australia and New Zealand.
Who are the staff members who support you?
I’m the only physician in my office and we have
40 support staff—nurses, medical assistants,
reception-area staff, HR people, spa staff,
phototherapy center nurses. You name it; we
have it. Everybody here does such a great job
supporting me and my ability to run the practice.
More and more practices are looking
toward this model, and it’s something we
developed almost 20 years ago. My support
staff also helps me with taking notes and
scribing, and that’s become all the rage. We’ve
done that in my clinic since 2002, and now
it’s sweeping the nation because it makes
physicians so much more efficient.
Is there a medical trend affecting the
practice of dermatology?
One trend that dermatologists and small
medical practices are concerned about
is called narrowing networks. A lot of
insurance companies are limiting the
number of doctors or clinics they cover.
As a result, they can control costs, but
most physicians in small clinics think
that should turn around—we want open
access.… If there’s a clinic that’s staffed
with physicians who are licensed by the
state of Minnesota in good standing, the
insurance companies should recognize that
and let patients make the selections.
Has the practice of dermatology
changed since you were a resident?
[In the] almost 20 years since I completed
my residency, we’ve seen a couple of
things change: Number one, there’s been
an explosion of options for aesthetic
medicine, so not just pure medical
dermatology but techniques that rejuvenate
the skin. Number two—and this is just a
natural evolution in all of medicine—there are
myriad new biologic medications available
to help treat disease. And lots more biologic
treatments and treatments for certain types of
cancers. So there’s been an explosion in our
ability to effectively treat many skin diseases.
And that is tremendous. EBN
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IN THIS ISSUE
DEVELOPMENT INSERT
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Karin B. Miller
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It’s early December, and Fairview is gearing up for a big move—from its
longtime Eagan clinic to its new, expansive facility at Central Park Commons.
“We’re very excited and chomping at the bit to get into the building,”
says Sally Wahman, chief operating officer, Fairview Medical Group. A
logistics team has been working on
the effort for the past year. A moving
company has been enlisted. And the
staff is ready to go.
That’s good, because the
move will happen fast—over one
single weekend. The current
clinic on Duckwood Drive will
close at noon December 16. Five
hours later, the new Urgent Care
will open. And the new clinic on
Central Park Village Drive will
fully open on Dec. 19.
“We’ve been in the Eagan
community for about 30 years,”
says Wahman. “It’s steadily
grown over that time, and we’ve
continued to expand within the existing building until we couldn’t
expand any more. To be honest, we probably should have moved our
clinic a year or two ago, but it was worth the wait to be able to move
into Central Park Commons, which will be such a focal point within the
Eagan community.”
The new clinic is
approximately 42,000 square
feet—more than double the
size of the previous facility,
accommodating its previous
services, plus new offerings,
including primary care, specialty
care, an optical shop, and a
pharmacy with drive-up service.
Like to see the clinic for
yourself? Mark your calendar
for the grand-opening event on
Saturday, January 14, 9 a.m. to
noon. Tour the building, receive
free health screenings and
enjoy free family activities. EBN
Fairview preps for big move
p1 Healthcare Central
Welcome, change.
Jill Hutmacher considers development
today and what’s ahead
p3 Q&A: Charles E.
Crutchfield III, M.D.
p4 Fairview preps for big move
GROWING EAGAN Development Insert | FOURTH QUARTER 2016
EAGAN
THE LATEST IN NEW DEVELOPMENT
Growing
New developments in 2016
• Accounting for nearly 34 percent of all new
retail construction in the Twin Cities in
2016, Central Park Commons celebrated
its grand opening in October, inviting
shoppers to visit the retailers (of the total
35) that had already opened in this mixed-
use development, among them, Marshalls,
HomeGoods, Hobby Lobby and a nearly
100,000-square-foot anchor tenant, Hy-Vee.
• The Minnesota Vikings broke ground
in August on their 44-acre headquarters
and training facility, including an indoor
practice facility, full-service 88,000-square-
foot orthopedic center by Twin Cities
Orthopedics, and an expandable 6,000-seat
practice stadium. But this is just the first of
several phases for the 15-year, $500 million
privately funded project. Eventually, the
200-acre “work-live-play” redevelopment, to
be built on the former site of the Northwest
Airlines headquarters, may include office
and retail space, a hotel, residential housing
and public green space. The team plans to
move in March 2018, one month after U.S.
Bank Stadium hosts the Super Bowl.
• Bell International Laboratories relocated
its headquarters from Minneapolis to Eagan,
remodeling a 70,000-square-foot facility. The
R&D company and contract manufacturer
makes organic and specialized skin care
and beauty products.
• A new pedestrian platform and enclosed
skyway will open soon at the Cedar Grove
Welcome, change.Jill Hutmacher
considers development
today and what’s ahead
Jill Hutmacher
has been
leading Eagan’s
community
development
since June,
taking the helm
at a fortuitous
time in Eagan’s
growth. With
six months of leadership under her belt, she
weighs in here on changing demographics,
the city’s Comprehensive Plan and more.
EBN: Eagan Forward, a community-
visioning exercise, suggested adding new
housing options for all stages of life,
offering a bigger welcome to young workers
and recognizing our City’s changing
demographics. How are development
projects impacting these emphases?
JH: The City of Eagan currently has 711
multifamily residential units approved but
not yet under construction. This includes
Affinity senior apartments, Stonehaven
Senior Living, Applewood Pointe Senior
Cooperative and a market-rate apartment
building at Quarry Road. Additional
medium- and high-density residential
development is anticipated for the Viking
Lakes site. The approved development
projects reflect strength in the apartment
and senior housing markets and also the
attractiveness of Eagan for lifecycle housing.
EBN: As required by state law, Eagan
will be updating its Comprehensive Plan
before the end of 2018. What will be its
key themes?
JH: The City will be considering the
Social media posts often invite us to remember when: Remember
when your hometown shopping district looked like this? Remember
when your high school was brand-new? Remember that drugstore
on the corner?
Well, even just a year can bring great changes to a community. In 2016, buildings under
construction in Eagan totaled 860,000 square feet of retail, office and medical space, including
the Minnesota Vikings facility, Hy-Vee and a few other Central Park Commons retailers. In total,
approximately nine new retailers opened in the city. And Eagan’s first foray into the craft-beer
trend, Bald Man Brewing, welcomed beer fans in October—a fitting month for sure. In addition,
Eagan installed a new and taller telecommunications tower.
As a business owner, executive, employee or resident, you’re likely aware of many of these
changes. But perhaps a few are new to you.
WITH THIS SPECIAL INSERT, EBN IS GLAD TO SHINE A SPOTLIGHT ON 2016
DEVELOPMENTS; PREVIEW DEVELOPMENT IN 2017; AND SHARE A QUESTION-AND-
ANSWER SESSION WITH JILL HUTMACHER, EAGAN’S COMMUNITY DEVELOPMENT
DIRECTOR, ALSO NEW TO THE CITY THIS YEAR. READ ON TO GET THE PARTICULARS.
CONTINUED ON BACKCONTINUED ON BACK
GROWING EAGAN Development Insert | FOURTH QUARTER 2016
Transit Station, enabling commuters to
board and exit buses in the middle of Cedar
Avenue, and arrive up to 10 minutes earlier
to their destinations.
• Cloverleaf Cold Storage is building a
69,000-square-foot expansion to its existing
warehouse.
• Corvida Medical brought a $3.1 million
manufacturing expansion and 17 new high-
paying jobs to the city. The eight-year-old
company makes Halo, a closed-system, drug-
transfer device to protect health-care workers.
• DataBank added a $750,000 build-out to
increase the facility’s onsite IT service suite
and expand its available white-floor, data-
center space by over 15,000 square feet.
• A new 42,000-square-foot
Fairview Health Clinic will
open in December (see story,
page 4), featuring increased
services, including full-day
urgent care.
• The first hotel to open in Eagan
since 2002, the Holiday Inn
Express & Suites Eagan–
Minneapolis Area, managed
by locally owned Wheelhouse
Capital, opened near Central Park Commons.
• Summit Orthopedics plans a February
opening of a 70,000-square-foot facility,
including emergency orthopedic services, a
surgery center and on-site recovery suites.
• Sun Country Airlines relocated its
headquarters and reservation center from
Mendota Heights to a 56,000-square-foot
remodeled space in Eagan.
• Midwest Ear, Nose & Throat Specialists
is expanding from its current clinic into a
12,000-square-foot specialty medical building
under construction at CityVue.
• The landmark Sperry Water Tower
was replaced by a 186-foot, $1.2 million
telecommunications tower, offering improved
service and programmable colored lights for
holidays and other observations.
• Retailers that opened in Eagan this year
include Endurance House, Hobby Lobby,
HomeGoods, Hy-Vee, Marshalls, Sierra
Trading Post, Tile Shop, Total Wine &
More, and Ulta.
New developments planned for 2017
• Affinity of Eagan, a 173-unit, 55+ apartment
project by the Inland Group, plans to break
ground in Cedar Grove in 2017 and open the
following year.
• CityVue Phase II, an apartment complex
with 122 units, plans to break ground soon
on the corner of Town Center Drive and
Promenade Avenue.
• The 24-acre Quarry Road development
by United Properties plans to include an
Applewood Pointe Senior Cooperative with 96
units, 183 market-rate apartments, a Residence
Inn and 30,000 square feet of retail.
• A JR Hospitality project—a Home2 Suites
by Hilton extended-stay hotel with 119
suites—is under construction near Twin
Cities Premium Outlets.
• Retailers planning to open in Eagan next
year include AT&T, Bank of America,
DSW, Eagan Nails, European Wax
Center, Five Below, Massage Envy, Men’s
Wearhouse, Orangetheory Fitness, Petco
and Xfinity.
• Restaurants planning to open in Eagan
next year include Café Zupas, Naf Naf
Grill, Piada Italian Street Food, Punch
Neapolitan Pizza, R Taco, and Tavern of
Eagan. EBN
role of urban villages, lifecycle housing,
pedestrian and bicycle friendliness,
and other themes addressed by Eagan
Forward. We’ll also be talking about
Eagan’s transition from a developing to a
developed city. With most large land tracts
already developed, redevelopment and
infill development will play a larger role
in the future. The City may also consider
strategies to maintain its infrastructure,
encourage private reinvestment,
position Eagan for continued broadband
investment, attract high-quality jobs
and support growth in the commercial/
industrial tax base.
EBN: Using building materials and
systems that minimize environmental
impacts is a growing trend. Do you see
this happening in Eagan?
JH: Environmentally-friendly building
practices are becoming increasingly common,
largely because developers and business
owners recognize that green development
saves money over the long term.
A great example of this is the Central
Park Commons redevelopment. CSM, the
developer, salvaged and recycled 58 tons of
copper, 60 tons of aluminum and 4,000 tons
of steel from the former 600,000-square-foot
Lockheed Martin facility. CSM crushed and
reused approximately 100 million pounds
of concrete onsite. And LED lighting in the
parking lots and common areas uses less
power than a single-family home.
EBN: What types of developments do
you see offering future opportunities
for the City?
JH: Private development is always market
driven and dependent on overall economic
strength. Eagan is fortunate to have a
widely diverse economic environment that
can largely withstand market fluctuations.
In the near term, we see potential for
multifamily, senior housing and hotel
development, as well as expansion of
existing commercial/industrial facilities.
In the long term, we feel that Eagan is
well positioned in terms of its low taxes,
high-quality infrastructure and proximity to
transportation corridors, the airport, and
the central cities to be attractive to new
office and industrial development. EBN
CONTINUED FROM FRONT