To:       Mayor and City Commissioners

From:   Lavern Squire, President and CEO,  Lawrence Chamber of Commerce

Date:    October 18, 2007

Re:       Bio-science development project

Cc:        City Manager David Corliss

The City of Lawrence has been supportive of Bio-Science development through the years as manifested in a variety of bio-related economic development projects in which the city has been instrumental.  Further, the City of Lawrence has been instrumental in the formation and support of the Lawrence/Douglas County Bio-Science Authority (LDCBA). Other formative parties within the LDCBA  are Douglas County, Lawrence Chamber of Commerce, and the University of Kansas.
One of the primary initiatives of this group was to interface at the project and investment level with the Kansas Bio-Science Authority (KBA).

The Lawrence City Commission has been a party to the KBA/community discussions regarding collaborative efforts to encourage bio-science development. This collaboration was manifested and documented in a Memorandum of Understanding (MOU) dated December 28, 2006.
Based on the MOU, KBA began negotiations with a local, Lawrence based bio-science company - Deciphera Pharmaceuticals - in which Deciphera would be a tenant in the KBA owned building.
Discussions have since yielded a change in which Deciphera would now own the building and conduct operations, with KBA and the community investing in the growth and development of Deciphera.

Consequently, a series of agreements have been developed for the city commission's information and consideration (not all of which require the city's approval ) surrounding Deciphera's intent to: 1. Purchase the "Spec Building" located at 3813 Greenway Circle from the owner - Douglas County Development, Inc (DCDI), and  2. Obligate themselves (Deciphera) to the receipt of  initial and performance grants (and associated clawback/restriction language) from KBA and the local consortium - City of Lawrence, Douglas County, LDCBA, and DCDI.  Other agreement(s) outline inter-group acknowledgements of intent to fund the project commitments (Consortium Agreement), and the acknowledgement of KBA's financial contributions on our behalf as well as their own.  Additional agreements acknowledge the city, county, and DCDI participation/collaboration in making land option(s) available for Deciphera in the future.
In summary, the financial obligation's outlined in the MOU for the city and county have not changed. Closure of this process including building sale, is envisioned to be November 1, 2007.