"We were very impressed with each of the proposals and the professionalism with which they were presented," says Richard Pettingill, Allina president and CEO. "This was a difficult decision, but all three cities submitted proposals far exceeding our expectations."

The one-million-sf Sears/Midtown Exchange site has sat vacant for more than a decade. Locally based Ryan Cos. will develop the site with Allina Commons as a major cornerstone of that development. Allina will be signing a long-term lease for the 250,000-sf deal with Ryan Cos. Costs to move, above the lease expenses, are about $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. The Sears site is near 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 St. Paul site, according to Pettingill, was a strong consideration, offering access to transportation and highways and is adjacent to the proposed technology corridor. Roseville also had a competitive proposal, an attractive site next to walking trails and parks and central to all Allina facilities.

Allina Hospitals & Clinics is a nonprofit 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. Company officials say the project will likely be completed early in 2006.

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