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When Time is Not An Ally, Partnerships Matter Even More

Understanding distinct needs was crucial to biotech expansion

  [ 6/1/2003 ]  By: Stephanie Marino, Robert Metcalf and Jonathan Sangster   Related Link...  Print This Article  Reprint/License This Article  

On Dec. 1, 2002, Serologicals Corp. named Lawrence, Kan., as the site for its new EX-CYTE manufacturing facility. The announcement may not sound remarkable at first, but it was an extraordinary achievement for a company that required a perfectly tailored fit and - only six weeks earlier - still had 30 potential sites under consideration.

The search for a new site was inspired by the fact that Serologicals, a global provider of biological products and enabling technologies, had nearly outgrown its existing facility in Kankakee, Ill.

The search was guided by several criteria important to the manufacture of EX-CYTE.

One requirement was a proximity to slaughterhouses, because a major component of EX-CYTE is bovine blood. The other was a proximity to a committed life sciences community, where Serologicals would have access to a qualified work force and would be viewed as a partner within the community. A third critical parameter was water quality. Serologicals' product is made almost solely of water. Hence, wherever the site community was located, the quality of its water had to be above reproach.

Serologicals began by inviting its real estate advisers to the Kankakee facility to gain a better understanding of the company's requirements for the new plant. Equipped with this shared knowledge, a team comprised of Serologicals and CB Richard Ellis executives embarked on a tour of community site visits across the Midwest, focusing on Kansas City, Kan.; Wichita, Kan.; and Lincoln, Neb.

Selecting the Site

Several weeks later, Serologicals had settled on a site that met all of its biotech community and site needs. How did they do it so quickly?

Commitment From Within: Serologicals' internal commitment to the speedy execution of this project was vital to its success. As soon as the demand for EX-CYTE grew beyond the capabilities of the Kankakee plant, executives issued a statement that a site would be selected by Nov. 30. Serologicals' top executives communicated daily, with each other and their multi-faceted site selection team, to ensure that decisions did not get held up behind red tape.

Partnership: Upon partnering with Serologicals, the real estate team received an in-depth education about the company's goals and needs, kicking off the 30 site visits with a visit to the company's existing facility. During the process, the real estate team became a true partner of Serologicals and was allowed direct access to decision-makers.

Creating a Buzz: From the outset, letters outlining the project, the visit agenda and a list of objectives were sent to the lead economic development contacts in the jurisdiction - up to the state level - of all three communities.

While Serologicals remained anonymous, the letters made the scope of the project clear. Serologicals' name was not revealed until the field was narrowed to less than five sites.

The timing of the announcement served to generate excitement among the remaining sites and heightened competition in response to a request for formal proposals with an almost immediate deadline.

Lawrence, the ultimate winner, responded aggressively to the project, particularly with regards to incentives.

Construction of the facility, set on 12.5 acres, began in March with an anticipated completion in the first half of 2004. The total cost of the project is currently estimated at $28 million.

In the end, Serologicals secured a site in a community known for its commitment to life sciences, an annual life sciences scholarship in Serologicals name from the University of Kansas, a property tax abatement of 80 percent over 10 years, a reduced land price, and waived impact fees - all in fast-track, quality-driven time.

)Stephanie Marino, Robert Metcalf and Jonathan Sangster are with the Corporate Services division of CB Richard Ellis, a Los Angeles-based real estate services company. For more information, access www.cbre.com.

 



 
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