April 12, 2005

U of M/Mayo Biotech Facility To Receive More Than $21 Million Under Bonding Bill Agreement

Bonding package also provides $19 million for bioscience development

Saint Paul -- A major new Rochester-based biotech research collaboration between the Mayo Clinic and the University of Minnesota will receive $21.7 million as part of a state bonding package signed by Governor Tim Pawlenty on Monday. The Governor ceremonially re-signed the bill in Rochester's Peace Plaza Wednesday morning to high the Mayo-U project and $12.8 million for health science renovations at Rochester Community and Technical College.

The Capital Investments package includes a total of $866 million in borrowing for state construction projects. Combined with projects financed partially by user fees, the total cost of the projects in the bill adds up to $945 million.

The money for the Mayo-U of M project, which was included in the bonding bill after a seven hour negotiation in the Governor's Office with legislative leaders personally brokered by Governor Tim Pawlenty, will be used to construct three additional floors of research space on top of the Stabile Building on the Mayo Clinic campus. Among legislative leaders advocating for this funding were Rep. Fran Bradley, Rep. Randy Demmer, Senator David Senjem and Senator Sheila Kiscaden.

The added space will accommodate both basic science and clinical researchers, along with research infrastructure that will facilitate University of Minnesota and Mayo Clinic collaborations. The space will be used primarily by Mayo Clinic researchers, allowing it to more fully participate in the Minnesota Partnership for Biotechnology and Medical Genomics.

Pawlenty used his 2005 State of the State address, delivered in Rochester in January, to declare that he would veto any bonding bill that did not include funding for the Mayo-U effort.

"The research facility in Rochester is absolutely central to the success of the historic partnership between the University and Mayo Clinic," Governor Pawlenty said. "This partnership is destined to be an awesome force in the world's medical research marketplace and a tremendous benefit to Minnesota."

The University of Minnesota and Mayo Clinic contribute substantially to the economic well-being of Minnesota. The two institutions employ 75,000 people and rank as two of the top medical research institutions in the nation. Together they manage $700 million in sponsored and gifted research funding.

The new facility will be a key feature in the Minnesota Partnership for Biotechnology and Medical Genomics - a unique collaboration between the State of Minnesota, the University and Mayo.

The Mayo-University partnership already has resulted in more than 300 faculty working together between the two institutions. The partnership has been called "a self-fulfilling economic engine" that allows researchers to develop intellectual property and achieve financial returns that will produce additional research and jobs.

An independent consulting firm last year estimated that by 2015, the Mayo-University partnership would have an annual overall economic impact of $546 million on the Minnesota economy, creating more than 7,000 direct and spin-off jobs, and generating more than $30 million in annual government revenues.

"Having these two important research institutions in our state gives Minnesota a competitive advantage that we must capitalize on," Commissioner Matt Kramer of the Minnesota Department of Employment and Economic Development (DEED) said. "Through this investment, researchers in our state may be able to make the next breakthrough in the rapidly expanding field of biotechnology and genomics."

The bonding package also provides $19 million to assist in developing bioscience projects throughout the state. In addition, the bonding bill includes $25 million for U of M laboratories and $55 million for Minnesota State College and University science labs that will help develop new ideas and a highly skilled workforce for Minnesota's growing bioscience industry.

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Contact:

Brian McClung
(651) 296-0001