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Lawrence Biosciences TaskforceLawrence Biosciences Taskforce

Strategic PlanStrategic Plan

PresentationPresentation

May 3, 2005May 3, 2005

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The Team

Bioscience Taskforce

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• David Shulenburger• Ted Haggart• Barbara Ballard• Bennett Griffin• Bill Duncan• Bill Fuerst• Bob Johnson• Bob Marcusse• Cheryl White• Craig Weinaug• Dan Lambert• David Dunfield• Dolph Simons, Jr• Eli Michaelis• Gene Meyer• Jim Baxendale• Jim Martin• Jim Roberts• Karen Swisher• Kelvin Heck• Larry McElwain• Lavern Squier

• Lynn Parman• Mark Buhler• Marty Kobza• Matt McClorey• Mike Litscher• Mike Maddox• Mike Wildgen• Paul Davis• Ralph Gage• Randy Weseman• Robert Hemenway• Robin Lehman• Roger Pine• Sam Campbell• Sheryl Jacobs• Sherry Schaub• Steve Kelly• Steve Warren• Tom Sloan• Tracy Taylor• Victor Frost

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The TeamStrategic Planning Subcommittee Members:

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• Matthew McClorey• Larry McElwain• Lynn Parman• Jim Roberts• David Shulenburger• Tom Sloan• Lavern Squier• Tracy Taylor

• Ted Haggart-co Chair

• Sherry Schaub-co-Chair

• Jim Baxendale• Sam Campbell• David Dunfield• Dennis Highberger• Bob Johnson• Donna Johnson

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PROCESS

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History/Context

Current State (SWOT)

Gold Standard

Core Competencies

Gaps and Barriers

How to do Strategic Planning

Where have we beenand where are we?

Review the History and Context of Bioscience at the University-- in Lawrence and Douglas County.

Define the Current State—Strengths, Weaknesses, Opportunities, and Threats.

Benchmark successful Bioscience Communities and Universities to define the “Gold Standard”.

Assess the position of the University and Community in Bioscience Research and Commercialization to identify our Core Competencies.

Identify Gaps and Barriers that might hinder our ability to become a leading Bioscience University and Community.

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History/Context

Current State (SWOT)

Gold Standard

Core Competencies

Gaps and Barriers

How to do Strategic Planning Cont’d.

Where Do We Want To Be?

Mission

Objectives

Mission

Objectives

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History/Context

Current State (SWOT)

Gold Standard

Core Competencies

Gaps and Barriers

How to do Strategic Planning Cont’d.

How Do We Get There?

Mission

Objectives

Mission

Objectives

Strategies

Plans

Strategies

Plans

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PROCESS

Mission

Objectives

Strategies

Plans

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StrategicPlanning

Strategic Planning Overview

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Str

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gOur Mission ---

StrategicPlanning

Advancing Lawrence as the most prosperous and

livable university community through the biosciences.

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Bioscience ObjectivesStrategicPlanning

Bioscience Objectives Current 2015

KU Bioscience Funded Research $60M $120M

KU Employment (incl. Students) 2373 2,873

Private Sector Firms 11 30

Private Sector Employment 180 1,180

New Investment *Cumulative Net Investment $4M $50M*

Seed Funding for Start-ups $1M $20M*

Salaries and Wages (Averages) $33,60030-40%

Above

Average

Payroll Impact $6.8M $57M

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Strategy #1Strategy #1—Develop —Develop Bioscience Industry Bioscience Industry ResourcesResources by providing an infrastructure of by providing an infrastructure of professional talent, modern facilities, professional talent, modern facilities, specialized equipment and capital around specialized equipment and capital around targeted core competencies currently emerging targeted core competencies currently emerging at the University and in the community’s private at the University and in the community’s private sector.sector.

Action Items1.1. Create a City, County, University, Chamber inter-local agreement to fund Create a City, County, University, Chamber inter-local agreement to fund

and sustain bioscience initiatives.and sustain bioscience initiatives.

2.2. Create community information clearing house for bioscience.Create community information clearing house for bioscience.

3.3. Create a single point of contact for business at the university.Create a single point of contact for business at the university.

4.4. Construct affordable clean room and wet lab space.Construct affordable clean room and wet lab space.

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Strategy #1Strategy #1—Cont’d.—Cont’d. Action Items5.5. Enhance and expand LRTC businesses assistance resources and Enhance and expand LRTC businesses assistance resources and

capabilities.capabilities.6.6. Improve access to early-stage capital (i.e. develop strong angel Improve access to early-stage capital (i.e. develop strong angel

investor network, etc.).investor network, etc.).7.7. Create a “Bio-Bank” Capital Fund Partnership.Create a “Bio-Bank” Capital Fund Partnership.8.8. Create public-private partnership that allows collocation of private Create public-private partnership that allows collocation of private

and university research.and university research.9.9. Enhance access to experienced professional support services (e.g. Enhance access to experienced professional support services (e.g.

legal, accounting, sales, marketing, etc.).legal, accounting, sales, marketing, etc.).10.10.Develop consortium for buying and sharing equipment and Develop consortium for buying and sharing equipment and

instrumentation.instrumentation.11.11.Provide shared access to market research databases, search Provide shared access to market research databases, search

engines and scientific journals.engines and scientific journals.12.12.Identify experienced bioscience entrepreneurs and managers.Identify experienced bioscience entrepreneurs and managers.13.13.Expand qualified technical-based labor pool (e.g. mid-level PI’s and Expand qualified technical-based labor pool (e.g. mid-level PI’s and

research directors).research directors).

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Strategy #2Strategy #2—Create a —Create a Bioscience Industry Bioscience Industry ClimateClimate that encourages, supports, and that encourages, supports, and sustains the growth of bioscience firms and sustains the growth of bioscience firms and the commercialization of University research the commercialization of University research in Lawrence and Douglas County. in Lawrence and Douglas County.

Action Items1.1. Create a City, County, University, Chamber inter-local agreement to Create a City, County, University, Chamber inter-local agreement to

fund and sustain bioscience initiatives.fund and sustain bioscience initiatives.

2.2. Resolve public private legal issues that inhibits collocation of private Resolve public private legal issues that inhibits collocation of private and university research.and university research.

3.3. Enhance state and local government assistance and incentive Enhance state and local government assistance and incentive programs.programs.

4.4. Encourage a “friendly” regulatory and tax environment.Encourage a “friendly” regulatory and tax environment.

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Strategy #2Strategy #2—Cont’d.—Cont’d.Action Items5.5. Develop predictable permitting, planning and land Develop predictable permitting, planning and land

development processes and procedures.development processes and procedures.

6.6. Work with private sector to provide land and facilities Work with private sector to provide land and facilities needed for future growth.needed for future growth.

7. Offer higher education curriculum and training opportunities to support existing and future bioscience needs.

8. Create programs at the University Technology Transfer Office that promote strong working relationships with local Industry.

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Strategy #3Strategy #3—Implement a —Implement a Bioscience Bioscience Industry Attraction PlanIndustry Attraction Plan to grow a critical to grow a critical mass of bioscience firms by raising the profile mass of bioscience firms by raising the profile of the community and recruiting outside firms, of the community and recruiting outside firms, talent, and capital.talent, and capital.

Action ItemsAction Items1. Develop a Marketing Plan and Brand Image for biosciences.

2. Utilize the Lawrence Chamber of Commerce and its Economic Development Division as the coordinating entity for biosciences initiatives.

3. Work with the Kansas Bioscience Authority and The University to recruit Federal Bioscience Research Facilities and Funding

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Strategy #3Strategy #3—Cont’d.—Cont’d.

Action ItemsAction Items4. Offer Higher Education Curriculum and Training

Opportunities to support Existing and Future Bioscience Companies.

5. Cultivate Relationships with Regional Bioscience Organizations to Ensure Continued Collaboration within the Region.

6. Target Suppliers of Existing Bioscience Companies as a Business Attraction Priority.

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Implementation

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gImplementation AgendaStrategic

Planning

1.Decide WHO will be responsible for implementing the Bioscience Strategic Plan and WHERE this person will reside and report.

2.Develop HOW the Bioscience Strategic Plan will be funded.

3.Finalize WHAT the next steps are to launch the Strategic Plan.

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gBoard of Directors (Governing Body)

StrategicPlanning

Representation #

City Mayor or designee 1

County Commission Chair or designee 1

Chamber of Commerce President and Chair 2

University Heads 2

Heads of Bioscience Companies 2

“At-Large” Member 1

TOTAL 9

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StrategicPlanning

•Title—should reflect position of authority—either Director or Vice President level.

•Criteria for Selection—will require previous experience and education with demonstrated track record in Bioscience Development.

•Reporting Relationship—will fit within existing Economic Development priority at the Chamber of Commerce by reporting to the Chamber President.

•Staffing, Location, and Support—can be provided by the Lawrence Chamber of Commerce.

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gImplementation Scenarios

StrategicPlanning

•Scenario 1—”Barebones” Focus on construction of “Bioscience Laboratory” Space which would be significant to Bioscience Commercialization. Utilize existing Economic Development Organization to support Bioscience Commercial Development.

•Scenario 2—”Start-up” Hire the Bioscience Position to begin implementing the early stages of the Strategic Plan by developing a business plan and constructing basic “Bioscience Laboratory” Space.

•Scenario 3—”Accelerated” Hire, staff, and fully fund the Bioscience Position. This would include aggressively developing a business plan consistent with the Strategic Plan, constructing Bioscience Laboratory Space, commercializing Bioscience University Research, and recruiting Bioscience Companies.

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gBioscience Operating Budget

StrategicPlanning

OPERATING COST Scenario 1 Scenario 2 Scenario 3One Time Cost Recruiting and Hiring 0 25,000 25,000 Total one time 0 25,000 25,000Operational Cost Salary and Benefits 0 103,231 103,231 Office Expenses 5,000 10,000 20,000 Marketing and Business Development 10,000 20,000 45,000 Support Staff Cost 0 12,000 25,000 Total annual operating cost 15,000 145,231 193,231

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StrategicPlanning

CAPITAL COST Capital Scenario 1 Scenario 2 Scenario 31 B/S Lab 2 B/S Labs 5 B/S Labs

Bioscience Lab Space (1500 Ft2 @ $1M) 1 Bioscience Laboratory 1,000,000 2 Bioscience Laboratories 2,000,000 3 Bioscience Laboratiories 3,000,000 4 Bioscience Laboratories 4,000,000 5 Bioscience Laboratories 5,000,000Note: Amortization and Debt Service Approximately $100,000 per $1,000,000 in Capital

Amortization and Debt Service Expense 100,000 200,000 500,000

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StrategicPlanning

OPERATING COST Scenario 1 Scenario 2 Scenario 3One Time Cost 0 25,000 25,000Operational Cost 15,000 145,231 193,231Capital Cost 100,000 200,000 500,000 FIRST YEAR TOTAL 115,000 370,231 718,231 ANNUAL TOTAL 115,000 345,231 693,231

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Planning

SOURCES Scenario 1 Scenario 2 Scenario 3 FIRST YEAR TOTAL 115,000 370,231 718,231 ANNUAL TOTAL 115,000 345,231 693,231

Scenario-1 Local Government 115,000 -- --Scenario-2 Local Government -- 345,231 --Scenario-3 Local Government -- -- 345,231 Bioscience Authority -- -- 348,000 Total -- -- 693,231

Scenario 1 "Barebones " Fund using City and County Mill Levy.

Scenario 2 "Start-up " Fund with increased City and County Mill Levy.

Scenario 3 "Accelerated" Fund using City and County mill Levy Increase at the same level as Alternative 2 and partner with the StateBioscience Authority for the balance.

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gNext Steps to Launch the Strategic Plan

StrategicPlanning

Action Steps Expected Results Date

1. Finalize Strategic Plan. Strategic Planning Document 4/31/05

2. Present to Task Force, receive feedback, and approve.

Final Communication to Task Force

5/3/05

3. Present findings to Multi-Community Groups.

Key community groups aware

5/15/05

4. Select Bioscience Board. Board of Directors in Place 9/1/05

5. Hire Director of Bioscience Development.

Experienced Bioscience “Head” Hired

1/1/06

6. Develop and Adopt Business Plan.

BP—Consistent with and Supportive of Strategic Plan

2/1/06

7. Determine requirement for “Bioscience Lab” Space and Develop Schedule for completion.

“Bioscience Lab” Space Available to Accept Bioscience Business

7/1/06