HomeMy WebLinkAboutMIN 07.23.2007 CC-WThe City Council of the City of Georgetown, Texas, met in Regular Session on the
above date with Mayor Pro Tem Gabe Sansing presiding.
Council Present:
Patty Eason, Gabe Sansing, Keith Brainard, Bill
Sattler, Pat Berryman, Farley Snell
Council Absent,
Gary Nelon, Ben Oliver
Staff Present:
Paul Brandenburg, City Manager; Tom Yantis, Assistant City Manager; Patricia E. Carls, City Attorney;
Sandra D. Lee, City Secretary; Mark Thomas, Economic Development Director; Micki Rundell, Director
of Finance and Administration; Tom Benz, Systems Engineering Manager; Jessica Hamilton, Assistant
Called to order by Mayor Pro Tem Sansing at 4:03 p.m.
A Discussion and presentation regarding the proposal to create and fund the Texas Life Sciences
Commercialization Center -- Paul Brandenburg, City Manager and Mark Thomas, Economic Development
Director
Brandenburg noted that this has been almost a four-year project and gave Council an overview of the
recommendation to create the commercialization center, including the cost of approximately $6,000 per
month, using private -sector donations, as well as proposed contributions from the Georgetown School District,
Southwestern University, and the Chamber of Commerce. He noted there may be Federal money in 2009 or
2010, as Congressman Carter has been involved in the discussions, but said it will be important to keep the
momentum going right now, and he said he wants the Council to be comfortable with the arrangement. He said
there will probably be a 380 agreement with a 501 C(3), and Council has an action item on tomorrow night's
agenda to consider the project. He noted that there already is a company named Orthopeutics who plans to use
the space, with the possibility of other biotechnology companies coming as well.
Thomas reviewed the history of this initiative, and listed two biotech companies, Radix Biosolutions, owned by
Cary Oliver and is a spin -out of Luminex, owned by Van Chandler, that already operate in Georgetown. Thomas
said that Oliver approached the Chamber and the City was brought into this idea. He said there is a need for a
center to provide administration for biotech companies, so they don't spend their time doing human resources,
legal, and payroll. He said the shared services are the "carrot" to entice the companies to use the building, and
a cluster of companies to collaborate together. He said an advisory board was formed and they visited an
incubation model and, the City's Economic Development Department hired Russ Peterman as project manager
to provide input on the validation study and marketing that is to bring potential clients. He said, with the
proximity to the University of Texas, growth will be positive, and wages will be high. He said there is great
potential for a company to grow quickly, as with Luminex. He explained to Council the cost to "land" these
companies is rather small before they grow into mega companies. He said Radix Bio Solutions is already here,
Orthopeutics is in route from San Diego, and the President of Quantum Logic Devices is in route to the meeting
tonight, and they are configuring space in the Center. He said there are two other companies that are
interested. Thomas said the Center will provide a part-time director for implementation of customized services to
the companies, saying there will be shared conference facilities and a shared certified "wet" lab. He said the
director would report to the proposed board, and would be tasked with marketing the Center; and a private
company will build the building. He said the City is seeking additional sources of funding to replace City
participation, and seeks buy -in from community partners. He told Council they will be asked for input for a
City Council Meeting Minutes/July 23, 2007
Page 1 of 3 Pages
performance agreement tharwill limit the participation of the City to a one-year period. Thomas said the Center
would be self-sufficient within three years, and will create jobs in Georgetown. He said the costs are small
compared to the potential pay-off, and said Council's input is needed to finalize the plan. He said there is a
need to move quickly because existing companies are looking for us to create the organization. He said Austin
is "sleeping" right now, and this is Georgetown's opportunity to move forward.
Snell affirmed that Council has been kept abreast of this, saying he is in favor; and confirmed the proposed
budget for this project. Brandenburg confirmed that the $10,000 amount for this year is already in the 2007/08
Budget, and $70,000 is in this year's budget from the Economic Development Department, but could be
removed from the budget if Council is not in favor of going forward.
Russell Peterman spoke to Council regarding the recent success in acquiring Orthopeutics. He said he also
had ongoing discussions with Quantum Logic Devices (QLD), saying the CEO has arrived now in the audience.
He said QLD is involved in both nanoscience and small transistors to be used in medical applications. He
introduced Dr. Brusso who just decided to move from the Austin area to Georgetown.
Dr. Brusso said he has been in the Austin area since 2001, having moved there from North Carolina. He said
his core product is a nanotransistor to be turned into a molecular detector. His company is at a point in
development where it will grow very rapidly. He said the company was just awarded $600,000 from the
Governor's Office, and will start shipping product next year. He said he is excited to move to Georgetown for
qualify of life issues and looks forward to moving his family here. He said he hopes his company will grow and
be here for a very long time. Berryman asked and Brusso explained that the practical application for his product
is to self -diagnose illness with a device to be purchased at a local drug store for approximately $10 in about 10
minutes. He said the FDA will regulate it and it may take some time, but in the meantime, his company will be
doing research to assist pharmaceutical companies to be able to cut drug costs. Brainard asked what was
lacking in North Carolina and Austin. Brusso said they were big in biotech, but his project is
semiconductor/electronics, and has had to deal long-distance with other companies. He said SemiTech and
Motorola are located in Austin, and he noted the accessibility of clean rooms for nanoscience at the University of
Texas. He said Orthopeutics and Radix will form a nucleus of traditional biotech companies that are making
tools for him. He said the City of Austin kept talking about providing a life sciences center, but was unable to
"pull it together." The centralized facility being proposed in Georgetown is exactly what he has been needing. He
noted that he has contacts at a lot of biotech companies across the state.
Berryman emphasized that it seems like a regional effort, and the stakeholders are not requiring control of the
Commercialization Center, and said she likes their three-year commitment just like the City's. She asked, and
Brandenburg confirmed if the federal funding does come in, the City could be less of a strategic partner.
Berryman asked to keep the option of putting our money into other economic development projects, if the
federal money does come in. She said she likes the fact that Southwestern will participate because it will help
them grow also. She also noted that this will be very compatible to expansion of the medical facilities in the
area.
Snell confirmed
that
this entity
will be a "free-standing" organization. Peterman said it
will be a stand-alone
corporation
with
501
3 (c) non-profit
status and would be separate from the City other
than with
the agreement.
Sattler asked about the other contributors. Brandenburg said the agreement will list the contributors and
amounts. Sattler also suggested that Fort Hood might be a contributor to this project. He said he is in favor of
this project, but would like to see the scope of work for the part-time director. He questioned why workers
compensation is being included in the list of proposed expenses. Mel Pendland confirmed that the Chamber
Board will meet today, and they will be asked to contribute $10,000 for fiscal 2008. Pendland said there are
other sources of grants available.
Brainard asked if the City has any assurance that the companies won't leave Georgetown and go back to
Austin. Brandenburg said the City's agreement is with the entity that will run the Center, not with the individual
companies. Thomas said the Economic Development Department spends a lot of time retaining companies, and
Pendland said that creating the cluster will have a positive effect because entrepreneurial companies like to be
among comparable companies. He said he thinks Georgetown has a good chance for offering quality of life and
other attributes that these companies want.
4:50 p.m. -- recessed to Executive Session
Executive Session
In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon's Texas Codes,
Annotated, the items listed below will be discussed in closed session and are subject to action in the
regular session that follows.
B Sec.551.071: Consultation with Attorney
- Advice from attorney about pending or contemplated litigation and other matters on which the attorney has a duty to advise
City Council Meeting Minutes/July 23, 2007
Page 2 of 3 Pages
the City Council, including age,ida items
-Transamerican Underground vs. Arch Insurance Co., C. C. Carleton Industries, and Third Party Defendant the City of
Georgetown, Cause No. 06-121-C277, District Court of Williamson County, 277th Judicial District
- Discussion and possible action regarding Williamson County MUD No. 19, request for sewer Certificate of Convenience and
Necessity (Application No. 35375-C) (SOAH Docket No. 582-07-0786; TCEQ Docket No. 2006 - 1810 - UCR)
- Consideration and possible action related to the City's participation in the threatened litigation against LCRA by Pedernales
Electric Cooperative and other customers related to the Wholesale Power Contract
C Sec 551.072: Deliberations about Real Property
- Consideration and possible action concerning the acquisition of utility easements from Helen Theresa Goethe, et al., in
connection with the 16" Sun City Irrigation Water Line project -- Terri Glasby Calhoun, Paralegal, and Jim Briggs, Asst. City
Manager for Utilities
- Consideration and possible action regarding the proposed disposition of City -owned property located at 605 W. 15th St., said
property being more particularly described in a deed recorded at Volume 2262, Page 201, Official Records, Williamson
County, Texas -- Terri Glasby Calhoun, Paralegal and Patricia E. Carls, City Attorney
5:31 p.m. -- returned to Open Sessin and adjourned
The meeting was adjourned at 45:31 PM.
Approved
Attest
l
Mayr P,, Teen Gbe Sansing City Secretary Sandra Lee
City Council Meeting Minutes/July 23, 2007
Page 3 of 3 Pages