Post on 07-May-2015
Kalon BiotherapeuticsCity Council
Regular SessionJune 26, 2014
Private company formed in Spring 2011◦ TAMUS & OOG-ETF
Commercial Development and Manufacturing Organization (CDMO)◦ Chemical, biological, radiological, and nuclear (CBRN) vaccines and
medical countermeasures
Texas A&M CIADM◦ Headquarters◦ Live Virus Vaccine Facility◦ Pandemic Influenza Facility
Background
Corporate headquarter expansion
Pandemic Influenza Facility◦~120,000 SF current good manufacturing practice (cGMP)◦ Can produce up to 50m vaccine doses within four months
Live Virus Vaccine Facility◦~50,000 SF biosafety level 3 (BSL3)◦ Process development, clinical supply, and commercial
production facility capable of undertaking multiple projects
One Health Plus Biocorridor
Incentives:◦ Seven year incentive schedule◦ Not to exceed $1,093,548.61 over term of the agreement◦ Incentive calculated as a percentage of property taxes paid
Kalon’s Obligations:◦ $70 million real and personal property valuation◦ 100 FTEs with an annual payroll of $6 million beginning 2018
City’s Clawbacks:◦ No obligation to approve disbursement for any year in default
Condition Precedent◦ City of Bryan Economic Development Agreement: $411,451.39
Economic Development Agreement
Questions / Direction
2015 - Year 0: Completion of Construction
2016 - Year 1: $196,838.75
2017 - Year 2: $174,967.78
2018 - Year 3: $153,096.81
2019 - Year 4: $153,096.81
2020 - Year 5: $153,096.81
2021 - Year 6: $153,096.81
2022 - Year 7: $109,354.86
$70 million property valuation
100 FTEs w/$6 million payroll
201363 FTEs
$5.3 million2018
75 FTEs$3.75 million
201231 FTEs
$1.9 million
2018100 FTEs
$6.0 million201474 FTEs
$5.0+ millionRVP
CS