Bioscience incubator
Mayor Mike Amyx emphasizes the importance of working together to boost the community's economic base. Enlarge video
Bioscience incubator
Clay Blair, chairman of the Kansas Bioscience Authority, on the prominence of Lawrence as a hotbed for bioscience development. Enlarge video
Bioscience incubator
Kansas University Chancellor Robert Hemenway discusses the need to keep promising technologies - and companies, such as Deciphera Pharmaceuticals - in Lawrence. Enlarge video
Bioscience incubator
Lavern Squier, president and CEO of the Lawrence Chamber of Commerce, explains the benefits of converting an empty building - one originally designed for light-manufacturing uses - into a center for high-tech lab operations. Enlarge video
The Kansas Bioscience Authority is teaming with Lawrence and Douglas County governments to turn a warehouse building into a high-tech laboratory center in the East Hills Business Park.
The incubator project - expected to cost nearly $7.5 million - would give startups and other promising bioscience operations a place to test their ideas and develop products.
Lawrence city commissioners are scheduled to review their commitment to the project Tuesday, while Douglas County commissioners are set to discuss the issue Jan. 8.
"This is a bricks-and-mortar achievement in the area of economic development," Mayor Mike Amyx said, formally announcing the project Thursday at the Lawrence Chamber of Commerce. "Having this resource in the Lawrence community will help us capture talent and success from our universities : (and) show that Lawrence not only is interested in fostering and developing companies in the bioscience industry, but we also are actively cultivating the industry in our community."
The 67,376-square-foot building, at 3813 Greenway Drive, opened in 2002 as a site to attract warehousing or light-manufacturing operations, and has been used for temporary storage by manufacturers in the business park.
Now the building is being lined up for a high-tech overhaul, with specialized plumbing, electrical and ventilation systems to go with state-of-the-art scientific equipment, new office space and shared conference rooms designed to attract promising companies.
One of the companies being discussed as a possible tenant for the center is Deciphera Pharmaceuticals, which has lab and office operations in western Lawrence. Deciphera has not signed a lease for moving into the incubator, but its promising drug-development technology - and relatively highly paid and growing payroll - ranks high on the list of attributes being sought for future tenants.
'Heck of a deal'
The building also has room for expansion next door, should a company need it.
"Even if Deciphera doesn't go in there, this is still a heck of a deal," said Craig Weinaug, who is familiar with the project as county administrator. "It provides us with an asset and a selling point - in combination with the university and all the other things we have in place - that, I think, will put us head and shoulders above anyone else in this type of business."
Financing for the project is outlined in preliminary agreements worked out among the various partners:
¢ $3.475 million from the Kansas Bioscience Authority, which would buy the building for $2.475 million and then match supplemental local contributions, dollar for dollar, up to $1 million. The authority, created by the state to cultivate and support bioscience projects, has negotiated an option agreement for the property, giving the authority several months to put together detailed plans for the project.
¢ $1.25 million each from the city of Lawrence and Douglas County, to cover "tenant finishes" and otherwise prepare the building for use by bioscience companies. The money actually would be fronted by the bioscience authority, then paid off by the city and county, each of which would spend $125,000 a year for 10 years.
¢ $1 million from the Lawrence-Douglas County Biosciences Authority, an organization formed by and financed jointly by the city and county to support development of high-tech labs and otherwise promote bioscience efforts in the area. Again, the contribution would be fronted by the Kansas Bioscience Authority, then paid off by the local authority with $100,000 a year for 10 years.
¢ $500,000 from Douglas County Development Inc., a partnership of the city, county and chamber that runs the East Hills Business Park. DCDI is selling the 4-year-old building for $2.475 million - about $1 million below cost - and then contributing $500,000 toward improvements.
High priority
Mayor Mike Amyx introduces Clay Blair, chairman of the Kansas Bioscience Authority, on Thursday during a Lawrence Chamber of Commerce announcement about a bioscience proposal for Lawrence.
Even with the city facing a long list of projects, services and other items pressing for public money - plans for an expanded Lawrence Public Library among them - the bioscience incubator stands out, Amyx said.
"Priorities are priorities," he said Thursday after the meeting attended by fellow city commissioners David Schauner, Boog Highberger and Sue Hack.
The announcement drew attendance and support from more than a dozen government officials, university administrators and business leaders. Among them were Kansas University Chancellor Robert Hemenway and County Commissioner Jere McElhaney.
Such partnerships and broad-based support are key to building a bioscience hub in Lawrence, which will be looked upon to generate high-paying jobs, industry-leading products and other beneficial items for the entire state of Kansas, said Clay Blair, chairman of the Kansas Bioscience Authority.
The presence of KU offers a wealth of intellectual capital often sought after by bioscience companies, either spinning off from university research or looking to tap into expertise for their own projects, Blair said. The next step is making room for those companies to be in Lawrence.
"You have an opportunity to make good things happen," Blair said. "If you don't have these facilities, it's difficult to make things happen."
More on the project
- 6News Video: Plans for a new, high-tech incubator are taking shape in East Lawrence (12-28-06)
- City of Lawrence: Letter of Support (.pdf)
- City of Lawrence: Memorandum of Understanding
- Leader: City key in bioscience (10-25-06)
- Unfilled potential: Lawrence still planning for lab space (09-17-06)
- Bioscience authority CEO selected (09-15-06)
Comments
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budwhysir (anonymous) says…
Wonder if there are any tax abatements involved here? I am sure there are no minimum wage jobs at this facility.
Sigmund (anonymous) says…
I bet there are some minimum wage jobs here along with a ton of high paying jobs. Tax abatements or no, it is nice to have a "Evil Drug Company" (tm) in Larrytown. I wonder if someday WalMart will be selling their products for $4/month?
cowboy (anonymous) says…
A reasonable start at attracting businesses , sounds like a million dollar investment from the city , how about explaining the math on how this pays for itself .
Sigmund (anonymous) says…
Here is how the math works. Much of the payroll will be used to buy products in Lawrence with a 7.5% sales tax. Ka-ching. Many will buy homes and rent apartments here which pay real estate tax. Ka-Ching. Ka-Ching. Late fees from borrowing books at the $30 million dollar library and bus tokens from the subsidized (million dollar plus a year) Lawrence Bus Company. Ka-Ching. Ka-Ching. Ka-Ching!
Ok, that last one .... not so much.
cowboy (anonymous) says…
I agree with you Sigmund , but I wonder if the city can't determine if what a sewer / water hookup actually costs are they capable of figuring this out.
Now start a downtown local biz incubator and a vo-tech school so our local non-college bound kids can learn a skiled trade and start thier own businesses.
Godot (anonymous) says…
Wasn't the goal to attract new businesses to lawrence, not just provide an existing business with a new facility, for free? And what's up with selling the building at $1,000,000 below value?
What is the business structure of Deciphera? Is this a for-profit corporation? Or a not-for-profit?
Sigmund (anonymous) says…
Godot, interesting questions, I dunno. How this get by the Bozo Business Czar anyway?
just_another_bozo_on_this_bus (anonymous) says…
Good questions, Godot. This whole idea should be subject to the same scrutiny that tax abatements get-- what's it going to cost taxpayers, and what is the payback over time?
doubledogleg (anonymous) says…
yet another reason to complete the SLT on the 32nd street route ASAP
Godot (anonymous) says…
http://www.deciphera.com/management.html
Godot (anonymous) says…
http://www.deciphera.com/careers.html
mommaeffortx2 (anonymous) says…
Biotech sexy, RC now I have visions of people in lab coats and judy jetson type robots.
Jamesaust (anonymous) says…
Potentially the biggest business news in Lawrence in 2007. Lawrence lacks any real laboratory complex, which is a very real limitation in attracting interest.
What other towns have done this? Uhhh...name a town. The most well-known and in some ways similar to Lawrence is Madison, Wisconsin with their University Research Park. Here's a link:
http://universityresearchpark.org/about/
Unlike the low-pay jobs the City is infamous for wanting to subsidize, high-pay jobs have significant secondary benefits to the local economy. For example, by some estimates, a $75k job creates cumulatively two other lower paid jobs, primarily in services and retail, that would otherwise not exist. What's more, the presence of one or several such employers makes it easier to attract more.
Deciphera Pharmaceuticals is a "venture capital" LLC. Most of the money raised is local. They moved to Lawrence because the CEO was a professor at KU.
The LLC has expressed interest in selling public shares by 2008 and growing to be a $2 billion company.
mommaeffortx2 (anonymous) says…
Now is LLC the same company that now owns brandon woods? If so I now have very big worries.
Yeoman2 (anonymous) says…
Yeah, Yeah, Yeah, same song thirty-third verse. How many times have we heard that some high tech atmospheric company is coming to town to hire all the unemployed PHD's living on your block? It is downright crazy the way local officials get giddy with these kind of things. Anyone remember Seriologicals?? They were going to set the local economy on fire. Most of these so called "great opportunities" have come to town on a white horse, caused local officals to fawn and dote on them, then left town when they found they did not have whatever cheap opportunities they were looking for. I would give this one about six months until Mike Amyx wakes up.
muffaletta (anonymous) says…
Wow mommaeffortx2 ... are you serious? That pretty much sums up 99% of the comments made on this site.
mommaeffortx2 (anonymous) says…
Yes If this is the same company that owns brandon woods do not know much about the biotech aspect but as far as running a company and how they treat employees yeah real big problem but only if it is the same company if not then only time will tell.
mommaeffortx2 (anonymous) says…
muffaletta believe it or not I know what I am trying to say but I never expect other people to understand me I just brain dead most days :)
Really I do know what I am saying, and no I do not answer myself in any weird conservations :):):)
blackcat (anonymous) says…
daaa
mommaeffortx2 (anonymous) says…
blackcat only one daaa?
walleye9898 (anonymous) says…
Little lesson on LLC.
LLC stands for Limited Liability Corporation. If you want to learn more, go here: http://www.corporate.com/llc-limited-...
Brandon Woods is owned by Life Care Services, LLC.
Deciphera Pharmaceuticals, LLC. is not the same.
Maybe a few of you ought to ban together and form idiotsrus, LLC.
blackcat (anonymous) says…
well said walleye and muffaletta
fletch (anonymous) says…
It's a shame we're not supporting Intelligent Design with a $7.5 million ID research facility as well.
Easy_Does_It (anonymous) says…
I think I see a conspiracy afoot, that LLC guy owns a lot of things, mostly the means of production. I think even my dentist is owned by LLC.
Since the PLC has become inactive the LLC has taken over.
I'm hiding in my basement.
wlpywd (anonymous) says…
idiots
Godot (anonymous) says…
This does not make sense to me. The main contender as a tenant is a company that is well financed by a venture capital group.
The city/county own a building that is valued at $3.75 million. In order to attract Decipera as a tenant, the city/county will sell the building for $2.75 million, not to deep-pockets Deciphera, which would then pay property taxes on the building, but to the bio-science authority, an entity that is exempt from property taxes.
In addition, it appears that the city/county would pay about half of the $7.5 million to renovate the warehouse into a high-tech lab. It looks like the $2.75 million the city/county receive in sale proceeds will be ploughed back into the building for improvements - a building that will be exempt from the tax rolls.
Why would the city/county basically give away this building to a tax-exempt entity? Will the tenant pay rent? If so, why would the city give that income producing property away? If the tenant will not pay rent, why not? It is obvious this company has deep resources.
mommaeffortx2 (anonymous) says…
well walleye thankyou for the answer but no need for all that, I did say if
one_track (anonymous) says…
Lets install a new sidewalk and bike trail through framland to East Hills, this will surely bring more to Lawrence and only cost a few million
budwhysir (anonymous) says…
I see wlpywd has only one comment to post in here. Lets look at the real facts here. This project is a great way to increase our tax base and raise the min. wage in Lawrence.
This may be a great way to change the traffic patterns in lawrence and get less traffice flowing thru neighborhoods, and many more people enjoying the slt and all of the beautifull roundabouts that dot our beautifull town.
Liberal (anonymous) says…
This building was hailed as a great puplic/private partnership from the beginning. It has been sitting empty for five years. Our public officials sell the building for 1 million less then it is worth to another gov't agency then they invest 1 million for to contribut to lab space and another Million to fund tenant finishes.
The companies they hope to land would be for profit companies, I certainly hope that they structure the deals to be possibly made in the future to include payback to the citizens of Lawrence for the investment we have made with our tax dollars to their success. I mean direct reimbursement not some pie in the sky we hope the companies we grow will stay and increase out tax base in the future.
How can we insure that these companies will stay in Lawrence and hire people here and continue to grow after our multi-million dollar investment.
It is about time that Lawrence had a facility like this here, however how do we protect ourselves?
cowboy (anonymous) says…
am i the only one who thinks we are way behind the curve on this ? The need arises from the great ideas and technology coming out of the universities being turned into real products , processes . If the seed was here the need would be also. I just dont see us competing with boston , atlanta , and others that have far superior academic incubators.
Godot (anonymous) says…
cowboy, the city of Lawrence and Douglas County had to wait for the success of the blue tide before they could bring this about. A deal of this magnitude no doubt has been in the making for a long, long time.
Next we will see a bill before the KS legislature relating to the funding of embryonic stem cell research, all in the name of economic development.
We have, here, professors, still paid by various Universities, who want to bring their taxpayer funded research into fruition in the private market, to their financial advantage. However, being public employees, by nature, it would never occur to them to use their own money to do this. The only thing they recognize is public funding of thier projects. Thus the shameless push for federal funding of embryonic research.
Only in Kansas is the creation of more government jobs considered to be "economic development."
budwhysir (anonymous) says…
When I was a younger there was a show called the bionic man.
Just thought I would throw that out there for everyone