SCRA Executive Committee Meeting fileDirector together with the Chairman of the SCRA Board of...

SCRA Executive Committee Meeting

February 5, 2018

Agenda

2:00 Welcome and Call to Order (Don Herriott)MUSC Innovation Center (IC)/22 WestEdge (WE)Nomination of Jonathan Zucker to

Executive Committee3:00 Adjourn

2/5/18 COMPANY PROPRIETARY © 2018 BY SCRA 3

MUSC Innovation Center (IC)/ 22 WestEdge (WE)

COMPANY PROPRIETARY © 2018 BY SCRA 42/5/18

• Six options were presented to the Executive Committee on December 13, 2017

• Ad hoc subcommittee of Herriott and Watt (with assistance from Quinn) was assigned to analyze all options and present recommended option

• Criteria/objectives used:– Continue to provide low-cost space to startups– Meet legislative mandate– Achieve better proximity to/integration with MUSC– Increase MUSC-industry partnerships– Satisfy City’s space requirements for Crime Lab, if

practical– Ensure SCRA’s sustainability

COMPANY PROPRIETARY © 2018 BY SCRA 5

Background

2/5/18

• Retain MUSC Innovation Center on Meeting St.• Lease 15,000 ft2 at Meeting St. to City for their Crime

Lab • Terminate lease of 5,000 ft2 at 22 WestEdge and replace

with lease or purchase of 15,861 ft2


Recommended Option

2/5/18

• Larger commercial entities in life sciences industry opportunities (75% of space)– NEAR Group (formerly CHERI): Medical device

training center– J&J Innovation– Other corporate innovation labs– Merck– CRDA: Landing parties

• Collaborative academic research programs– Engage Provosts/VPRs to develop strategy

• MUSC start-up companies


Uses of 22 WestEdge Space

2/5/18

• U.S. Economic Development Administration (EDA) – Potential grant to defray upfit costs– Working with local EDA rep– USC has used extensively– Requires grantee to own property associated with

grant– Engaging with 22 WestEdge developer on possible

purchase (condo model) of top floor


Potential Ways to Defray Costs

2/5/18


Financial Impact

2/5/18

1st 10yr view 2nd 10yr sub total 3rd 10yr Total Swing

Current Status

Meeting Street ($2,553) $3,773 $1,221 $5,952 $7,172

WE 5,000sf Office Space ($1,596) ($1,189) ($2,785) ($1,482) ($4,267)

Total ($4,149) $2,585 ($1,564) $4,470 $2,905

Recommendation

Keep Meeting St ($2,953) $3,773 $821 $5,952 $6,772

WE 15,861sf (75% labs) ($8,228) ($4,201) ($12,429) ($5,109) ($17,538)

Total ($11,180) ($428) ($11,608) $843 ($10,765) ($13,671)

Current Status Recommendation

Year 1 ($236) ($4,170) Includes upfit costs

Year 2 ($636) ($1,838)Includes upfit costs

Year 3 ($449) ($562)

Year 4 ($220) ($433)

Year 5 ($171) ($425)

Year 6 ($160) ($417)

Year 7 ($148) ($408)

Year 8 ($367) ($630)

Year 9 ($129) ($395)

Year 10 ($1,632) ($1,902)

Total 10 Years ($4,149) ($11,180)

Total 30 Years $2,905 ($10,765)

WHEREAS, the SCRA, in accordance with its Enabling Act, established and continues to maintain a Charleston research innovation center (“Charleston Innovation Center”) on Meeting Street (“Meeting Street Facility”), associated with the Medical University of South Carolina (“MUSC”);

WHEREAS, MUSC has indicated an interest in the SCRA establishing a facility that is more closely associated with MUSC and the MUSC campus by means of the SCRA locating a facility adjacent to the MUSC campus at the 22 WestEdge development (“22 WestEdge”) and, in this connection, the SCRA has previously entered into a lease of approximately 5,000 square feet at 22 WestEdge;

WHEREAS, MUSC has indicated its desire that such SCRA facility located at 22 WestEdge be used to facilitate the attraction of major life sciences companies to Charleston as well as to create and expand collaborations between MUSC and such life sciences companies; and

WHEREAS, the SCRA Executive Committee desires to maximize its partnership with and support of MUSC and also to maintain some of the technology sector support that is presently provided by the Meeting Street Facility, in ways that are fiscally responsible and consistent with the SCRA’s Enabling Act.

NOW, THEREFORE, IT IS RESOLVED, that the SCRA Executive Director is hereby authorized and directed as follows:

1. With respect to the Meeting Street Facility, to enter into a sublease with the City of Charleston for approximately 15,000 square feet, on terms to be negotiated by the Executive Director.

2. With respect to 22 WestEdge, (a) to lease or purchase, as may be decided by the Executive Director together with the Chairman of the SCRA Board of Trustees, up to 15,861 square feet, on terms to be negotiated by the Executive Director, and (b) to terminate the SCRA’s existing lease of approximately 5,000 square feet or, in the case of a lease of the additional space, at the Executive Director’s discretion, to amend such existing lease to expand the space from approximately 5,000 square feet to up to 15,861 square feet.


Resolution

2/5/18

Jonathan Zucker is the President at The InterTech Group, Inc., which is a diversified holding company with operating companies and portfolio investments in multiple sectors including aerospace, industrial and engineered products, financial transaction services, utilities and energy, specialty chemicals, recreation and leisure, medical technology, security and real estate. Jonathan is also the President of Z-Man Fishing Products, Inc., the world’s premier fishing products, lure, and accessory manufacturer. He recently held the position of Director at the Hudson’s Bay Company where he was part of the management team overseeing the operations of Canada’s largest department store retailer and North America’s oldest corporation. He received his Master of Business Administration with highest honors from The Citadel and his Bachelor of Science in Management and Information Systems with high honors from the Georgia Institute of Technology. He is a member of the Honor Society of Phi Kappa Phi and the Beta Gama Sigma International Business Honor Society and received an honorary Doctor of Commerce degree from his alma mater, The Citadel.


Biography

2/5/18

“I move that Jonathan Zucker be elected to the SCRA Executive Committee for the remainder of Doug MacIntyre’s term, beginning on February 5, 2018, and ending on July 23, 2019.”


Motion

2/5/18

SCRA Executive Committee Meeting fileDirector together with the Chairman of the SCRA Board of...

Documents

Transcript of SCRA Executive Committee Meeting fileDirector together with the Chairman of the SCRA Board of...