KU, chamber pleased with new partnership

It was a scene that might not have happened a few years ago.

David Shulenburger, Kansas University’s provost and executive vice chancellor, was at a news conference to explain why Serologicals Corp. would be a good fit in Lawrence. The company was announcing a $28 million manufacturing plant at the East Hills Business Park.

The Dec. 3 news conference marked one of the first times KU leaders shed their behind-the-scenes role in attracting businesses to Lawrence.

“We’ve never been that forward,” Shulenburger said. “There’s almost always a downside (to new companies). There are people who don’t want development, and we don’t want to anger them.”

Since then, Serologicals has become a poster child for future partnerships between KU and the Lawrence Chamber of Commerce.

KU has had a role in attracting businesses such as Hallmark and Sallie Mae to Lawrence in the past. Most of their involvement has been simply providing information about the university to the chamber when it’s trying to recruit companies.

New scholarship

That’s the way the process with Serologicals began. CB Richard Ellis, a Los Angeles-based commercial real estate firm, told chamber and KU officials they were seeking property for a biotechnology firm, not indicating which one. KU provided information about the university, and especially its biology research.

Later, Serologicals revealed itself to the three finalist cities where it wanted to manufacture a blood product used in creating several drugs, including some used to treat cancer and childhood illnesses. The other two cities were Wichita and Lincoln, Neb.

Shulenburger and KU Chancellor Robert Hemenway met with Serologicals officials to help persuade them to come to Lawrence. They offered to create a $2,000 scholarship in Serologicals’ name to be given annually to a biosciences student.

Serologicals officials later said that scholarship helped show they were welcome in Lawrence.

‘Work together’

In some ways, as KU itself grows, it’s leading to economic development in Lawrence.

Shulenburger noted that KU’s 8 percent growth in research — from $224 million in fiscal year 2001 to $243 million in fiscal year 2002 — helps lead to more jobs throughout Kansas.

The U.S. Department of Commerce estimates 40 jobs are created for every $1 million in research. That means KU’s increased research created about 760 additional jobs last year.

And, he said, an increase in the number of students at KU — enrollment was up 2.3 percent last fall — makes for more business for Lawrence companies.

But he expects KU to take an increased role in other economic development in upcoming years, as it did with Serologicals. Part of that involvement is simply taking part in chamber discussions. Shulenburger is ending a three-year term on the chamber’s board of directors, and Hemenway is beginning a three-year term. Hemenway also is co-chairing “Excellence by Design,” a $1.2 million fund-raising drive for economic development in Lawrence.

“There’s been a lot of talk in the community of growth, no growth or smart growth,” Hemenway said. “The reason Serologicals is so important is it’s this type of industry that can benefit everyone. It’s the kind of thing that can happen if the community of Lawrence and the university work together.”

‘Intellectual capital’

Lynn Parman, vice president of economic development for the chamber, said the university has clear benefits from developing the Lawrence economy.

“For them to operate in a community with a strong, vibrant economy is important,” she said. “The stronger our amenities are, the stronger our tax base is, the more attractive the community will be on students and faculty they’re trying to attract.”

In the Serologicals case, Shulenburger expects faculty to serve as consultants to the biotech firm, and students could work there. He also said many spouses of prospective KU faculty need jobs, and Serologicals could provide those jobs.

Attracting one large biotech company may help attract others to Lawrence, especially considering the Kansas City Life Sciences Initiative.

But Parman said she saw potential benefits to KU for a wide range of businesses.

“It’s not just life sciences,” she said. “You could find a (university) connection for almost anything. Our intellectual capital is probably our biggest strength here.”