San Francisco was selected to be the headquarters of a new
government agency overseeing stem cell research on Friday, in a
move that might boost the local economy.
The installation of a headquarters is part of Proposition 71,
which passed last fall with 59.1 percent of the vote. The measure
authorized the creation of a new government agency, the California
Institute for Regenerative Medicine, to study stem cells and their
various potential applications.
The naming of an official headquarters is just one step in a
long process of distributing the proposition’s funds. While
the San Francisco headquarters will manage most of the
administrative duties, remaining funds will be used to develop
research facilities across the state.
“The San Francisco headquarters is not where research will
be done. But there will be some staff there,” said Dan
Mitchell, a professor at the UCLA Anderson School of
Management.
Statewide research facilities and hospitals at locations such as
UCLA, UC San Francisco and Stanford are among the potential
recipients of the Proposition 71 funding.
The legislation will expend $3 billion over the next 10 years on
stem cell research. Another $3 billion will be spent on the
interest.
The selection affirms the Bay Area’s reputation as a
leader in biotechnology.
“˜”˜Today’s announcement is one of the final
steps toward cementing the Bay Area’s role as the center of
biotechnology in the world,” said Jim Wunderman,
president of the Bay Area Council, a business-boosting
organization.
The selection will also help boost the economy of the Bay
Area.
“There is no question it will be an anchor for
business,” Mayor Gavin Newsom said during a news conference
after the vote. “This secures our future as a point of
destination for discovery.”
The California Institute for Regenerative Medicine plans to
develop an office of at least 17,000 square feet that will employ
up to 50 people.
Newsom estimates the city is giving away $17 million in perks,
which includes 10 years of free rent in a new building next to SBC
Park, the baseball stadium of the San Francisco Giants.
The city will also offer 2,600 free hotel rooms and 14,000
discounted rooms, amounting to $900,000.
Additionally, the California Institute for Regenerative Medicine
will have free access to 46,000 square feet of laboratory space at
San Francisco General Hospital.
Though the selection does not mean that stem cell research is
planned at the headquarters, some believe the decision will
motivate biotechnology companies to relocate in San Francisco.
Mayor Newsom anticipates his city will hold international
scientific conferences.
Cities who lost the bid, such as San Diego and Sacramento, will
focus on landing multimillion-dollar grants to create research
facilities.
Currently, there is no timetable on when the grants will be
distributed, but modest grants will be awarded in November,
institute officials say.
Proposition 71 now also faces legal challenges as two lawsuits,
one of which has been filed by the Life Legal Defense Foundation,
an antiabortion lobbying group. Attorney General Bill Lockyear and
state Treasurer Phil Angelides announced Monday that the lawsuits
are making it very difficult to distribute funds.
One alleges the institute’s oversight of funds is illegal,
while the second lawsuit claims the legislation’s language is
unconstitutional.
“It is a narrow set of antichoice activists who have an
idealized zeal to stop stem cell research,” Angelides
said.
As long as the lawsuits are pending, the institute cannot borrow
money to award research grants.
One option is for the institute to file a “validation
suit,” ensuring lenders they will be paid back.
The institute’s board chairman Bob Klein has stated the
option is being considered.
With reports from Bruin wire services.