Economic analysis: Collier could see $463M annually, 11,000 jobs from Jackson Lab, biomedical park

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The Jackson Labs question made simple - sort of Brent Batten

Lead, follow or get out of the way Fred Coyle / Collier County Commissioner, District 4

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Questions, answers on the proposed Jackson Laboratory/Florida Tammie Nemecek / President, Economic Development Council of Collier County

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Thoughts on Jackson Lab Political Point of View by Collier Democrats

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Principals and practicalities of Jackson Lab subsidy don’t add up Guest commentary by Pelican Bay resident Jack Chandler

Jackson Laboratory and Collier County ... what comes next? Fred Coyle / Chairman, Collier County Commission

Jackson Lab a meeting of mice and men Brent Batten

— Collier County could gain more than 11,000 jobs over the long term and the local economy could see an economic boost of $463 million annually if Jackson Laboratory and a biomedical village develops near Ave Maria, according to a new analysis.

A consultants’ group retained by the Economic Development Council of Collier County has completed an economic impact analysis of what could happen in Collier alone if the Maine-based nonprofit laboratory were to open a genetics research center and attract other biomedical entities and businesses to the community.

The Collier-specific analysis was requested by the citizen-based Productivity Committee several weeks ago after frustration with an earlier analysis that looked at the impact regionally and to the state. The committee is crunching numbers for Collier County Commission, including looking at financing options.

The county is being asked to invest $130 million in taxpayer money to attract Jackson and committee members wanted an idea of the return solely to the local community. The state would be expected to match the local money.

The report was sent to county officials late Friday and committee members will review it over the weekend and discuss it Monday at a 2 p.m. meeting. A representative with The Washington Economics Group, which prepared both the regional and local impact studies, is scheduled to attend and go over the numbers with the committee.

The report looks at a time frame of 23 years, starting this year, for the potential build out of a biomedical cluster with Jackson as an anchor. The analysis assumes construction of Jackson’s research center on Oil Well Road would start in 2012 with direct employment beginning the following year.

A 23-year build out of a biomedical village and its impact is based on three million square feet of space being developed for research purposes and a 750,000-square-foot teaching hospital and educational campus. It projects 20,000-square feet of space for “goods and services” and 8,000 square feet of local government services. It also factors that 780 residential units would be built.

“In its first year of construction, the Jackson Laboratory is expected to create 238 jobs in the Collier County economy alone,” according to the report.

By the tenth year of operation, Jackson is projected to have 563 employees. The average annual salary per Jackson employee is projected at $72,700, based on curent-year values.

Factoring a biomedical village, the analysis projects 4,913 jobs being created by the tenth year and it would climb to 11,490 jobs by 2032 at build out of the village. On average over the long term, 5,891 jobs would be supported each year, directly and indirectly, from the medical park.

The average annual economic impact is estimated at $463 million with a cumulative impact of $10.6 billion by 2032, according to the consultants.

The analysis calculates the county spending $50 million in the first year with the state also spending $50 million. From there, the analysis has the county spending the remaining $80 million in installments over the next nine years.

With respect to the county’s return on its investment, the consultants’ project a negative cash flow until the tenth year; the county’s overall rate of return would be 3.4 percent.

The EDC’s executive director, Tammie Nemecek, could not be reached for comment Friday.

Collier County Commission Chairman Fred Coyle, who is the county’s lead on the project, said the report was better than what he expected.

“It is probably pretty believable,” he said, but added it should be regarded as a tool for evaluating whether to go forward or not. “I find it helpful but not conclusive. None of us have a crystal ball when we are doing something like this. We can’t accept it as an absolute promise.”

He thought the projections for the biomedical park are conservative and he believes it could happen faster.

“If we are successful in building a cluster, I don’t believe it will take 23 years to develop a successful cluster,” he said.

The most important components involve getting the Jackson facility up and running and getting other businesses to come, he said.

Connect with health-care reporter Liz Freeman at www.naplesnews.com/staff/liz_freeman

© 2010 marconews.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Comments » 4

deltarome writes:

Even with the most positive spin they could make, it is not financially worth it.
With negative cash flow for the first ten years and only after all the best hypothesis, it will turn a slight profit.
The cost of borrowed money for the bonding is more than the projected total return.
The county taxpayers are on the hook for the debt, not the lab firm.

jwputnam writes:

What the hell is wrong with our local government? Who ever gave them the authority to enter into business on our behalf. This is outrageous! I have no interest in this investment and I hate having a gun put to my head if I refuse to contribute.

READ "ATLAS SHRUGGED".

nplsrez writes:

When will the jobs come to us, 5, 10 or more years??

ajm3s writes:

One company seeking public funds, sounds like a monopoly of self interest.

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