The right time'

1

• The right time.
• The right space.
• Right here.

2
What is Gateway Park?

• Gateway Park is not about real estate or lab
  space.
• Its about creating a destination where life
  sciences companies can flourish
• And where scientists, scholars, students, and
  entrepreneurs can live and prosper.
• Gateway Park is about making space for genius.

3
What are the needs identified by life sciences
CEOs and entrepreneurs?

• Space
• Affordable, flexible, adaptable lab space
• Buildings with specialized plumbing, electrical,
  ventilation, water, specialty gasses and security
  systems
• Wireless infrastructure
• Support Infrastructure
• Services facilities design, workforce education,
  clean room maintenance, hazardous waste removal,
  gowning and garb services, instrument testing,
  glass wash, legal, accounting.
• Fast and easy permitting process favorable
  regulations for hazardous waste
• Clinical trial/FDA support
• People
• Access to leading-edge life sciences faculty,
  cutting-edge research and other life sciences
  companies and management
• Access to educated research assistants education
  programs for all support services needed
• Affordable labor acceptable standard of living
  for employees
• Location
• Acceptable commute
• Access to interstate highways/manageable airport
• Access to Capital

4
The Gateway District
Gateway Park, LLC Joint
venture between WPI and Worcester Business
Development Corporation (WBDC)
Plan for the Overall 55-acre Gateway District
Development and its vicinity
5
(No Transcript)
6
A closer look
7
Whats the answer?Gateway Park.

• Space
• Five life sciences buildings totaling 500,000
  square feet of flexible, adaptable lab space
  designed to meet the needs of research
  organizations (rent 20-30 per sq. ft. versus
  45-65 in Boston/Cambridge) (1)
• Buildings designed to provide cutting-edge IT
  infrastructure, high-speed wireless access
• Support Infrastructure
• A smooth, expedited permitting process (90 days
  average in Worcester, 3 years in
  Boston/Cambridge) (2)
• City of Worcester regulations support biomedical
  and technical research. Smart buildings are
  designed to meet environmental and waste disposal
  needs
• The Massachusetts Opportunity Relocation and
  Expansion (MORE) Jobs Program
• 100 Million quick-close fund grants to aid in
  infrastructure costs
• Eligibility requirements Generate substantial
  sales from outside MA create at least 100 new,
  permanent full-time jobs within 24 months
  maintain the newly created jobs for at least 5
  years
• Clinical trial/FDA support through professionals
  at UMass Medical and other area hospitals
• Services facilities design, workforce education,
  clean room maintenance, hazardous waste removal,
  gowning and garb services, instrument testing,
  glass wash, legal, accounting
  
  

8
Whats the answer?Gateway Park. (continued)

• People
• Home to a highly-educated workforce of
  professionals in science, technology, and
  management with 25 lower salary expectations
  than Boston/Cambridge (3)
• World-class faculty researchers with valuable
  intellectual property
• Craig C. Mello Winner of the 2006 Nobel Prize
  in Physiology or Medicine conducts his award
  winning research in Worcester
• Rich pool of highly educated research assistants
  and lab technicians to help accelerate ideas and
  innovations
• Continuum of training in Worcester WPI
  partnership with K-12 programs, Massachusetts
  Academy of Mathematics and Science at WPI, new
  Worcester Technical High School (entire Academy
  focused on life sciences), vibrant community
  colleges, world-class colleges and universities
• Affordable, acceptable, lower standard of living
  lower housing costs, etc.,
• Location
• Commute west in morning east in afternoon. 15
  minutes from Rt. 495
• Intersection of I-290, I-190 (Bristol-Myers
  Squibb). Route 146 will soon be finished
  connecting Worcester to Green Airport in 40
  minutes
• Rail station completely refurbished and restored
  service from Boston to increase shortly
• Access to Capital
• New Worcester-based angel investor fund Close
  relationships with venture capitalists who
  understand the power and potential of life
  sciences research and engineering technology
• WPI Venture Forum WPI/UMass contacts MBI
  partnership
• MassDevelopments Emerging Technology Fund
• 35 million fund provides loans up to 2.5
  million and guarantees of up to 1 million to
  finance investment in real estate and equipment.

9
WPI Life Sciences and Bioengineering Center
10
WPI Life Sciences and Bioengineering Center

• Scheduled completion April 2007
• 124,600 square feet four stories
• 43M investment by WPI
• Home to the following WPI Departments
• Biology and Biotechnology (BBT)
• Biomedical Engineering (BME)
• Chemistry and Biochemistry (CBC)
• Chemical Engineering (CHE)
• WPI Interdisciplinary Research Groups (Centers)
• Tissue regeneration and stem cell biology (BBT,
  BME)
• Tissue mechanics and mechanobiology (BBT, BME)
• Plant systems (BBT, BEI, CBC)
• Molecular nanotechnology and molecular sensors
  (BEI, CBC, CHE)
• Applied molecular genetics (BBT)
• Advanced technologies in biological imaging and
  sensing (BME, BEI Center for Untethered
  Healthcare, ECE, ME)

11
WPI Life Sciences and Bioengineering Center
(continued)

• Bioengineering Institute (BEI), an
  interdisciplinary organization dedicated to
  turning life-sciences technology into workable
  products
• Massachusetts Biomedical Initiatives (MBI) -
  (Kevin OSullivan), a successful independent,
  tax-exempt incubator that supports the founding,
  growth and expansion of biotechnology and medical
  device companies
• Bioprocessing laboratory Pilot Plant for
  training
• Headquarters for WPIs Corporate and Professional
  Education Programs
• Also in Gateway District, ECI Biotech (Mitch
  Sanders), a leading-edge company engaged in
  research and development of new antibody
  detection technologies
• Companies Blue Sky Biotech CellThera
  Consistent Cardiogram Corporation

12
Central Massachusetts - tremendous opportunities

• Central Massachusetts was identified as one of
  the few areas in the US with the resources to
  emerge as bio/life sciences industry leader. (4)

One of the main reasons Bristol-Myers Squibb
chose to locate its new 1B bio-processing
facility in Central Massachusetts (Devens) was
because they wanted to be near Worcester. Let me
repeat that Ranch Kimball, Secretary of
Economic Development for the Commonwealth of
Massachusetts, July, 2006 When asked if he was
going to stay in Worcester, Dr. Craig Mello
replied Absolutely, I think the cost of doing
research here is so much lower than in the Boston
area. I'm not sure what it works out to per
square foot, but it's quite significant -- the
cost of space is lower, the cost of living for
employees. . . ." Worcester based Nobel
Laureate and Professor of Molecular Medicine, Dr.
Craig Mello, October, 2006 (5)
13
Central Massachusetts - tremendous opportunities

• The Eds and Meds
• 13 colleges/Worcester area enrollment gt 30,000
  students
• UMass Medical
• Massachusetts College of Pharmacy and Health
  Sciences
• Tufts University Cummings School of Veterinary
  Medicine
• UMass Memorial Hospital
• St. Vincent Hospital at the Worcester Medical
  Center
• The Commonwealth of Massachusetts continues to
  make major investments in Central Massachusetts
  as a life sciences, bioengineering center.
• UMass Medical School - 1980
• Worcester Biotech Park - 1990
• Gateway Park - 2005
• Bristol-Myers Squibb - 2006
• BMC Biomanufacturing Initiative - 2006

14
The Trend Westward

• Developing companies and their CEOs are moving
  westwardbetween Routes 128 and 495 and along the
  
  Route 495 corridor
• In the past five years 20 biotech companies
  including 14 from Cambridge have moved into
  space along Rt. 128 (6)
• Many would gladly trade the nightmare of a
  Boston/Cambridge commute for traveling against
  traffic
• Genzyme headquarters is in Cambridge, but
  theyve expanded to Framingham, Southboro, and
  Westboro -theyre moving westward!
• WPI sponsored the first annual Biotechnology
  Bioengineering Corporate Forum and Career Fair
  with over 175 life sciences professionals in
  attendance - Keynote speaker, Jim McGovern

15
The Trend Westward

• Recent Massachusetts Biotechnology Council
  (MBC) West networking event drew
  400 people
• 49 of the 100 largest Biotech firms in
  Massachusetts are located between 128 and
  Worcester (7)
• Only ONE of the top 25 medical device firms is in
  Boston (8)
• Route 146 will soon be finished, connecting
  Worcester to Providence and completing a research
  triangle

16
Initial BMC Locations Throughout MA
Lowell
Massachusetts Biomanufacturing Center
Cambridge
Amherst
Worcester
Large-scale Production Facility
Process Development Site
Fall River
Education Delivery Site
Education Development Site
Information Exchange Network Hub
Does not show research sites, industry partners
or additional education sites
17
For example C3 Benefits come together.

• Consistent Cardiogram Corporation (C3) - a
  medical products
• startup with a new, more efficient, more
  accurate means of administering an EKG. Staff
  Founder (PhD Scientist), CEO, VP Business
  Development
• WPIs contribution
• Well-known faculty scientist in applicable
  product area
• Graduate student interns and research assistants
• Appropriate government/defense contacts which led
  to ?
• Possible 3M research appropriation
• Contacts to relevant VCs for additional funding
• UMass Medicals contribution
• Clinical trials in all 4 product customer areas
  Hospital, Home, EMT, Military
• Worcesters contribution
• Affordable space
• Affordable labor
• Access to major highways/airports/rail service
• Gateways role
• Facilitated exchange of information and ideas
  among academic leaders, other entrepreneurs, VCs
  and established companies

18
Whats next?

• Financing 2.5M - EDA Grant
• 4.0M - WPI
• 4.0M - WBDC
• 2.0M - PWED Grant for
• garage, roads and
• surface lots

• Parking garage and surface parking - 880 cars
• Groundbreaking Fall 2006

19
Whats next?

• Space Available parcels of 140,000, 100,000 and
  80,000 square feet share a common landscaped quad
• High-end residential condos with adjacent parking

20
Whats the vision?

• A launching pad for WPI and other academic and
  medical institutions to enhance their
  leading-edge research programs in life sciences,
  biotechnology and bio/chemical engineering
• A hub for the development and delivery of
  education and training programs to support life
  sciences, bioengineering and biomanufacturing
• A vibrant community of young professionals an
  environment that fosters the exchange of ideas
  among scientists, scholars, students and
  entrepreneurs
• A tranquil, tree-lined, landscaped mixed-use
  campus close to the cultural pulse of the city
  (Worcester Art Museum, Tuckerman Hall, Mechanics
  Hall, DCU Center, Institute Park)
• A new life to downtown Worcester by establishing
  a mixed-use destination which includes companies,
  residential and retail establishments

21
What can you do to help?

• Talk it up tell your clients and colleagues
  about Gateway Park
• Refer companies you think might be a good fit
• Share your ideas for building the future of
  Gateway Park
• Thank you!

22
(No Transcript)
23
Sources

• (1) Cushman Wakefield, Meredith Grew
• (2) WBDC/City of Worcester Statistics
• (3) Remedy Intelligent Staffing, Inc. Life
  Sciences Group
• (4) Milken Institute Research Report, Americas
  Biotech and Life Science Clusters San Diegos
  Position and Economic Contributions, Ross DeVol,
  Perry Wong, Junghoon Ki, Armen Bedroussian and
  Rob Koepp, June 2004.
• (5) Boston Globe, October 9, 2006.
• (6) Boston Business Journal, July 14, 2006.
• (7) Boston Business Journal, Book of Lists,
  October 2006.
• (8) Boston Business Journal, Book of Lists, March
  2006.