HomeMy WebLinkAbout2013-01-29; City Council; 21119; Lease Agreement Bio Tech and Beyond 2351 FaradayCITY OF CARLSBAD - AGENDA BILL 18
AB#
MTG.
DEPT.
21.119
1/29/13
CED
APPROVAL OF THE LEASE
AGREEMENT BETWEEN THE
CITY OF CARLSBAD AND
BIO, TECH, AND BEYOND
FOR AN INCUBATOR AT
2351 FARADAY AVENUE
DEPT. DIRECTOR ^^^x^^
CITY ATTY.
CITY MGR.
RECOMMENDED ACTION:
Adopt Resolution No. 2013-029 approving tiie five year lease agreement between the City of
Carlsbad and Bio, Tech, and Beyond, LLC for lease ofthe city owned building, located at 2351
Faraday Ave., for the purposes of establishing a life sciences incubator, community laboratory
and science education center.
ITEM EXPLANATION:
As part of their annual planning in 2008, City Council set a goal that the building at 2351
Faraday Ave. be used as an incubator to promote entrepreneurship and business growth in
Carlsbad. In 2009 and 2011, requests for proposal were issued for an incubator, but neither
effort was successful. However, in August of 2012, the City of Carlsbad received an unsolicited
proposal to locate a combination incubator, community laboratory and science education center
in the building, which will enable broad collaboration and support innovation in the life sciences
industry, one of Carlsbad's most important industry clusters.
The goal of the Community Laboratory and Life Sciences Incubator is to create new life
sciences companies and new jobs in Carlsbad, help Carlsbad become a national leader in the
citizen science movement which will strengthen our life sciences cluster, add to Carlsbad's core
technology base resulting in new development and new invention patents, and serve as a key
base for regional science education outreach efforts.
The building located at 2351 Faraday Ave., also known as the Farmers' Auto Claims building,
was purchased by the city in 2001 and has remained vacant. The building is 6,000 square feet
in size. This lease only concerns 2351 Faraday Ave., not the larger Farmer's building at 5815
El Camino Real.
The space will be leased to Bio, Tech, and Beyond LLC for one dollar ($1) per year. The term
of the lease is five years. For the first year, the city also agrees to pay for electric and gas
utilities in an amount not to exceed $2,500 per month or $30,000 total. The city currently pays
for the utilities related to the property and the additional expense will be the difference between
current expenses and any increase due to use by the incubator. Utility usage is likely to be
DEPARTMENT CONTACT: Kathy Dodson, 760-602-2744, kathv.dodson(S)carlsbadca.qov
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED
DENIED
WITHDRAWN
AMENDED
•
•
•
CONTINUED TO DATE SPECIFIC •
CONTINUED TO DATE UNKNOWN •
RETURNED TO STAFF •
COUNCIL RECEIVED THE •
REPORT/PRESENTATION
OTHER-SEE MINUTES •
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lowest during the first year in operation as the incubator will still be in the start-up phase. After
the first year, the incubator will be responsible for all gas and electric payments. The city
agrees to continue maintaining the landscaping of the building at city expense for the term of
the lease. The city will also continue to pay for trash collection, not to exceed $100 per month
for the term of the lease. City responsibility for trash collection excludes any hazardous waste
removal.
The City will lease the facility with no deferred maintenance. It is expected that some repairs to
the building are needed, especially regarding the HVAC system. The total expected cost of this
maintenance is $25,000.
While these costs are requested to ensure the successful start-up and establishment of the
incubator, a successful incubator program can generate significant economic benefits to the
city. Pursuant to their business plan, within its first two years of operations the incubator
operator will sign up 50 paying members, incubate eight companies, offer at least four science
courses per year, hire at least one full time staff member and create a functional cell and
molecular biology lab. The lessee is responsible for paying for all tenant improvements,
salaries and equipment, among other costs associated with operating the incubator and
community laboratory.
FISCAL IMPACT:
The maximum cost to the city is expected to be:
Deferred Maintenance HVAC Repair $25,000
Year One Expense Gas & Electricity $30,000
Trash Removal $1,200
Maximum City Expense (5 years) $56,200
It is recommended that the deferred maintenance be funded through the Infrastructure
Replacement Fund and the remaining costs be funded using City Council contingency. Budget
for years two to five expenses will be appropriated in the annual Property & Environmental
Management budget. Year one expenses for gas and electricity and trash removal will be
appropriated from council contingency.
ENVIRONMENTAL IMPACT:
Pursuant to Public Resources Code section 21065, this action does not constitute a "project"
within the meaning of CEQA in that it has no potential to cause either a direct physical
change in the environment, or a reasonably foreseeable indirect physical change in the
environment, and therefore does not require environmental review.
EXHIBITS:
1. City Council Resolution No. 2013-029
2. Lease Agreement between City of Carlsbad and Carlsbad Community Laboratory
3. Incubator proposal by Carlsbad Community Laboratory including letters of support
EXHIBIT 1
1 RESOLUTION NO. 2013-029
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AUTHORIZING EXECUTION
^ OF A LEASE AGREEMENT BETWEEN BIO, TECH, AND
BEYOND LLC AND THE CITY OF CARLSBAD FOR CITY
OWNED PROPERTY LOCATED AT 2351 FARADAY
5 AVENUE FOR THE PURPOSES OF OPERATING A LIFE
SCIENCES INCUBATOR AND COMMUNITY SCIENCE
6 SPACE
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WHEREAS, the City has determined it is desirable and in the best interest of the
community to enter into a five year least agreement with Bio, Tech, and Beyond LLC to
lease the small Farmers' Insurance claim building located at 2351 Faraday Avenue, for
11 the purposes of establishing and maintaining a life sciences incubator, community
12 laboratory and science education center; and
13 WHEREAS, there is an economic development need to support the burgeoning
life sciences industry that stems from the strong presence of major life sciences
companies in Carlsbad and more specifically in the Carlsbad Research Center in which
the subject property is located; and
WHEREAS, regional educational institutions support the presence of a
biotechnology indicator to serve and expand educational resources and life sciences
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2Q businesses in the Carlsbad community; and
21 WHEREAS, the City has determined that it is necessary and appropriate to enter
22 into the subject lease and extend the use of the building for life sciences incubation and
23 community science purposes in order to further support the life sciences industry and
the biotechnology and science education programs; and
WHEREAS, the City and Bio, Tech, and Beyond, LLC have agreed to all terms of
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the lease;
27 "
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1 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
2 Carlsbad, California, as follows that:
1. The above recitations are true and correct.
2. That upon approval as to form, by the City Attorney, the Mayor is
authorized to execute the lease agreement attached hereto between the City
of Carlsbad and Bio, Tech, and Beyond LLC.
3. Authorize the Finance Director to appropriate $25,000 from the
9 Infrastructure Replacement Fund for HVAC repairs.
4. Authorize the Finance Director to appropriate council contingency funds of
11 $31,200 for year one expenses in the Property & Environmental Management
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budget.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council
of the City of Carlsbad on the 29* day of January 2013, by the following vote to wit:
AYES:
NOES:
Council Members Hall, Packard, Wood, Blackburn, Douglas.
None.
ABSENT: None.
MATT HALL, Mayor
ATTEST:
CITY OF CARLSBAD
LEASE AGREEMENT
PREMISES:
2351 Faraday Avenue
Carlsbad, CA 92008
Lessee:
Bio, Tech, and Beyond LLC
TERM: Five (5) Years
CITY OF CARLSBAD
LEASE AGREEMENT INDEX
1. DEFINITION OF TERMS 1
2. TERM 1
3. TERMINATION OF LEASE 2
4. OPTIONS TO RENEW 2
5. VACATION OF PREMISES 3
6. RENT 3
7. COST OF LIVING ADJUSTMENT 3
8. SECURITY DEPOSIT 3
9. UTILITIES PAYMENTS 3
10. TAXES, ASSESSMENTS, AND FEES 4
11. ACCEPTANCE AND MAINTENANCE 4
12. ALTERATIONS 5
13. USE 5
14. OCCUPANCY, ASSIGNMENT AND SUBLETTING 6^
15. LESSEE'S GOALS 6
16. BENCHMARKING AND REPORTING 6
17. CONDUCT 7
18. PETS 7
19. NOTICES 7
20. RIGHT OF INSPECTION 87
21. AUDIT.... 8
22. RIGHT TO SHOW PREMISES 8
23. INSURANCE 8
24. INDEMNIFICATION 10^
25. NONDISCRIMINATION 10
26. HAZARDOUS AND/OR CONTAMINATED SOIL AND MATERIAL 10
27. LAW TO GOVERN; VENUE 10
28. SPECIAL PROVISIONS Vm
29. AMERICANS WITH DISABILITIES ACT (ADA) im
LEASE AGREEMENT
This Agreement is made this 29 day of January, 2013.
Between: City of Carlsbad
a chartered municipal corporation
1200 Carlsbad Village Drive
Carlsbad, Califomia 92008
("City")
And: Bio, Tech, and Beyond LLC
a limited liability company
2351 4647 Park Drive
Carlsbad, CA 92008
("Lessee")
WHEREAS, City desires to rent to Lessee and Lessee desires to rent from City certain public
property located at 2351 Faraday Avenue in the City of Carlsbad, for the purpose of operating a
community laboratory to serve as both a life science start-up company incubator and as a science
education center. The Premises is defined below and fully described in Exhibit "A," which is
incorporated by this reference.
NOW THEREFORE, it is mutually agreed by and between City and Lessee as follows:
1. DEFINITION OF TERMS.
The following words in this Lease Agreement shall have the significance attached to them
in this clause unless otherwise apparent from their context.
a. "Lease" means this Lease Agreement.
b. "Premises" means 2351 Faraday Avenue, Carlsbad, Califomia, which includes a
6,000 square foot building and parking as more fully described in Exhibit "A."
c. "Lessee" means the Bio, Tech, and Beyond LLC and does not include its heirs,
assigns, or successors-in-interest.
d. "Invitees" means any individual or organization who enters the Premises at the
express or implied invitation of Lessee.
2. TERM.
The term of this Lease shall be five (5) years, commencing on Febmary 1, 2013.
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3. TERMINATION OF LEASE.
3.1 Each party shall have the right to terminate this Lease without cause for any reason
by giving ninety (90) days prior written notice to the other party.
3.2 City shall have the right to terminate this Lease by giving seven (7) business days
prior written notice to Lessee for any of the following events:
3.2.1 Lessee's failure to comply with the following clauses in this Lease:
Acceptance and Maintenance, Paragraph 11
Alterations, Paragraph 12
Use, Paragraph 13
Occupancy, Assignment and Subletting, Paragraph 14
Conduct, Paragraph 17
Insurance, Paragraph 23
Americans with Disabilities Act (ADA), Paragraph 29
3.2.2 Ifthe City discovers at any time during the lease term that the Lessee or any
other party has used, is using, or will use the Premises in an unlawful
manner or for an unlawful purpose, or in any manner that is inconsistent
with any provision of this Lease.
3.2.3 The Municipal Property Manager is authorized to terminate this Lease for
the City upon City Council direction.
4. OPTIONS TO RENEW.
Lessee shall have two (2) one (1) year options to renew this Lease upon City's written
consent. If Lessee desires to renew this Lease, Lessee shall provide written notice to City
of Lessee's intent to renew not less than sixty (60) days prior to the expiration of the initial
Lease term or first renewal year. City shall respond to Lessee's renewal request in writing
within thirty (30) days of receiving such notice. City reserves the right to modify the rent
rate for each renewal year at the City Council's discretion.
5. VACATION OF PREMISES.
5.1 Upon termination of this Lease for any reason. Lessee shall peaceably vacate, and
shall cause its Invitees to peaceably vacate, and deliver the Premises to City in the
same condition as Lessee found them upon its acceptance of the Premises
hereunder, excepting ordinary wear and tear, conditions caused by acts of God and
improvements made in accordance with Section 12 herein.
5.2 Upon such termination, Lessee shall immediately:
5.2.1 Arrange and pay for the disconnection of all utilities and services ordered
by Lessee;
5.2.2 Provide a written statement to the Municipal Property Manager of Lessee's
new address for purpose of refunding monies , if any due Lessee under this
Lease, and forwarding mail; and
5.2.3 Deliver any keys for the Premises to the Municipal Property Manager or
send said keys by certified mail to the address stated in Paragraph 19
below.
6. RENT.
In consideration of the possession and use of the Premises, Lessee shall deliver and pay rent
to City during the term of this Lease in the amount of One Dollar ($1.00) per year.
7. COST OF LIVING ADJUSTMENT.
Not applicable to this lease.
8. SECURITY DEPOSIT.
Lessee shall deposit with City the sum of one thousand dollars ($1,000) receipt of which is
hereby acknowledged by City, as security for any damage caused to the Premises during the
term of this Lease. Such deposit shall be retumed to Lessee, without interest, and less any
set off for damages to the Premises upon the termination of this Lease.
9. UTILITIES PAYMENTS.
For the first year of this Lease, City agrees to pay for electricity, gas, landscaping and trash
charges (not to include hazardous materials). The City's payment shall be capped at two
thousand five hundred dollars ($2,500) per month and thirty thousand dollars ($30,000)
total. Effective on the first aimiversary of the Lease, City will terminate assistance with the
payment of electric and gas bills and Lessee will be solely responsible to pay for these
utilities and services necessary for the occupancy of the Premises. The City agrees to pay
for landscaping and trash charges for the term of the lease. Trash charges will be capped at
$100 per month, and will not include the disposal of hazardous materials.
10. TAXES, ASSESSMENTS. AND FEES.
10.1 The terms of this Lease may result in the creation of a possessory interest. If such
a possessory interest is vested in Lessee, Lessee may be subjected to the payment
of personal property taxes levied on such interest. Lessee shall be responsible for
the payment of, and shall pay before delinquent, all taxes, assessments, and fees
assessed or levied upon Lessee, on said Premises or any interest therein, on any
buildings, structures, machines, appliances, or other improvements of any nature
whatsoever, or on any interest therein.
10.2 Lessee further agrees not to allow such taxes, assessments, or fees to become a lien
against said premises or any improvement thereon. Nothing herein contained shall
be deemed to prevent or prohibit Lessee from contesting the validity of amount of
any such tax, assessment, or fee in any manner authorized by law.
IL ACCEPTANCE AND MAINTENANCE.
11.1 Lessee hereby acknowledges that Lessee has inspected the Premises, that Lessee
accepts said Premises "as is" and "where is," that the Premises are in a good and
sanitary order, condition, and repair. Lessee hereby accepts the Premises as such,
except for maintenance to the building to be performed by the City within sixty
(60) days of the commencement of this Lease.
11.2 Lessee agrees to take good care of the Premises and all improvements, alterations,
fixtures, and appurtenances thereon. Lessee agrees to provide for maintenance and
upkeep of the Premises, as necessary to preserve the Premises in good order and
condition, except that City shall provide for maintenance and repair of all
landscaping, grounds, roof, electrical and HVAC. Said repairs and maintenance
shall be made in a good and professional manner, and at least equal to the
condition and quality of the repaired items at the inception of this Lease. Lessee
agrees to be solely responsible for all costs of maintenance and repair except as
noted above.
11.3 In the event Lessee fails to properly maintain the premises as required by City, then
City may notify Lessee in writing of said failure. In the event Lessee fails to
perform said maintenance within thirty (30) days after such notice by City, City
may immediately terminate this Lease, pursuant to Paragraph 3.2 above.
12. ALTERATIONS.
12.1 Lessee shall make the alterations and improvements to the Premises, at Lessee's
sole cost and expense, that Lessee reasonably believes are necessary to operate said
community laboratory. Any and all alterations and improvements made to the
Premises must first be approved in writing by the Municipal Property Manager.
12.2 Any improvements made with the consent of the Municipal Property Manager shall
become a fixture to the realty and shall remain on and be surrendered with the
Premises upon termination of this Lease.
12.3 Noncompliance by Lessee or its Invitees with any provision of this clause shall be
cause to terminate this Lease for the City pursuant to Paragraph 3.2 above.
12.4 Before making any improvement that require a City and/or other jurisdictional
permit(s), the Lessee is responsible for obtaining all such jurisdictional permit(s)
from the City or other agency with jurisdictional authority at their sole cost and
expense and that the written approval by the Municipal Property Manager as
described in Section 12.1 above does not negate the need to obtain such required
City or other jurisdictional agency permit(s).
13. USE.
Lessee agrees to use the Premises as follows:
13.1 To create a center that will serve as a life science start-up company incubator, a lab
space where lay and professional scientist members can conduct research and
business activities and where science education groups can teach classes and host
science events.
13.2 Lessee shall not use, nor permit the use of, the Premises other than as described in
Paragraph 13.1 above. In any case where Lessee is, or should reasonably be, in
doubt as to the propriety of any particular use. Lessee may request, and will not be
in breach or default if Lessee abides by, the written determination of the Municipal
Property Manager that such use is or is not permitted.
13.3 Noncompliance by Lessee or its Invitees with any provision of this clause shall be
cause to terminate this Lease for the City pursuant to Paragraph 3.2 above.
13.4 All uses shall be in compliance with the City codes, the underlying Specific Plan
for the Carlsbad Research Center and the Covenants, Conditions and Restrictions
for the Premises.
14. OCCUPANCY. ASSIGNMENT AND SUBLETTING.
The Premises shall only be occupied by Lessee and Lessee's Invitees. Lessee agrees to
require its Invitees to utilize the premises in accordance with the Lease Agreement. Lessee
shall not assign this Lease or any interest therein without the prior written consent of the
Municipal Property Manager. Any such assignment without the City's consent shall be
void and shall, at the option of City, terminate this Lease. Noncompliance by Lessee or its
Invitees wdth any provision of this clause shall be cause to terminate this Lease for the City
pursuant to Paragraph 3.2 above
15. LESSEE'S GOALS.
In consideration for the letting of the Premises and amenities provided by the City, Lessee
agrees to use its best efforts to accomplish the following objectives in order to provide a
public benefit:
15.1 Create community space where like-minded lay and professional scientists can go
to share ideas, get help and access the tools they need to innovate. Sign up 50
paying members in the first 2 years.
15.2 Develop a vibrant start-up company incubator. Be instmmental in launching at
least 8 start-up companies within the incubator in the first 2 years, wdth the start-up
companies to be licensed in the City of Carlsbad
15.3 Become a leading local center for science education and outreach. Offer at least 4
science courses a year at the facility in partnership with San Diego science groups.
15.4 Build a lean, low cost organization, staffed primarily by volunteers and managed
by scienfist-members. Hire at least one full time staff member by middle of year 2.
15.5 Create a functional cell and molecular biology lab within 6 months of inception.
15.6 Develop revenue streams from membership fees, corporate sponsors,
crowdfunding, direct donations, event fees, course fees and grants.
16. BENCHMARKING AND REPORTING.
During the duration of this Lease term, Lessee agrees to provide the Municipal Property
Manager with semi-annual reports on December 31^^ and June 30* of each year for the
incubated companies to include the following:
• Number of jobs created by the Lessee and by any incubated companies;
Amount of any salaries paid;
Total gross and net revenues earned;
Amount of any investment in the company and a list of investors;
A list of local suppliers used by the company;
A list of local support services used by the company; and
Total amount of gross sales outside of the City of Carlsbad.
17. CONDUCT.
17.1 Lessee, Invitees and their guests shall at all times conduct themselves in a quiet
and dignified manner so as to cause no annoyance or inconvenience to neighbors of
Lessee.
17.2 Lessee and Invitees shall not violate, or permit the violation of, any City or County
ordinance, or state or federal law, in or about the Premises.
17.3 Noncompliance by Lessee or its Invitees with any provision of this clause shall be
cause to terminate this Lease for the City pursuant to Paragraph 3.2 above.
18. PETS.
No pets or livestock of any kind may be kept on the Premises without the prior written
consent of the Municipal Property Manager.
19. NOTICES.
Any notice or other documentation required or permitted to be given by this Lease must
either be personally served on the other party or served by certified mail, retum receipt
requested, to the addressee below. Notices served by mail shall be sent to the address listed
below and shall be deemed delivered as of the date shown on the delivery receipt as the
date of delivery, the date delivery was refused, or the date the notice was retumed as
undeliverable. A change of either party's address must also be immediately served in the
marmer described above.
For Citv:
Joe Gamba, Municipal Property Manager
City of Carlsbad
Property and Environmental Management
405 Oak Avenue
Carlsbad, CA 92008
For Lessee:
Joseph P. Jackson III
4647 Park Drive
Carlsbad, CA 92008
(760) 434-2893 joseph.jackson@gmail.com
joe.gamba@carlsbadca.gov
20. RIGHT OF INSPECTION.
City reserves the right for its agents or employees to enter upon and inspect the Premises at
any reasonable time to ascertain if Lessee is complying with the provisions of this Lease.
21. AUDIT.
City reserves the right for its agents or employees to conduct financial audits, not more than
once yearly, of Lessee's financial records that are in any way associated with the Premises.
City shall provide at least three (3) business days advance notice to Lessee of City's intent
to inspect such records.
22. RIGHT TO SHOW PREMISES.
City reserves the right, during the last sixty (60) days of this Lease, or any extension
thereof, to conduct an "open house" of the Premises in order to facilitate re-renting or
selling the Premises. Said "open house" shall not exceed four hours total duration
(maximum of two separate days), and when possible, be scheduled from 3:00 p.m. to 5:00
p.m., Monday through Friday.
23. INSURANCE.
Lessee will obtain and maintain for the duration of this Lease and any and all amendments,
insurance against claims for injuries to persons or damage to property which may arise out
of or in connection with the occupancy or use of the Premises by Lessee or its Invitees,
visitors, agents, representatives, employees or subcontractors. The insurance will be
obtained from an insurance carrier admitted and authorized to do business in the State of
Califomia. The insurance carrier is required to have a current Best's Key Rating of not less
than "A-:Vn" OR with a surplus line insurer on the State of Califomia's List of Eligible
Surplus Line Insurers (LESLI) with a rating in the latest Best's Key Rating Guide of at least
"A:X".
23.1 Coverages and Limits. Lessee will maintain the types of coverages and minimum
limits indicated below, unless the City Risk Manager approves a lower amount.
These minimum amounts of coverage will not constitute any limitations or cap on
Lessee's indemnification obligations under this Lease. City, its officers, agents and
employees make no representation that the limits of the insurance specified to be
carried by Lessee pursuant to this Lease are adequate to protect Lessee. If Lessee
believes that any required insurance coverage is inadequate, Lessee will obtain
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such additional insurance coverage, as Lessee deems adequate, at Lessee's sole
expense.
23.2 Commercial General Liabilitv Insurance. $ 1,000,000 combined single-limit per
occurrence for bodily injury, personal injury and property damage. If the submitted
policies contain aggregate limits, general aggregate limits will apply separately to
the work under this Lease or the general aggregate will be twice the required per
occurrence limit.
23.3 Workers' Compensation and Emplover's Liabilitv. Workers' Compensation limits
as required by the Califomia Labor Code. Workers' Compensation will not be
required if Lessee has no employees and provides, to City's satisfaction, a
declaration stating this.
23.4 Additional Provisions. Lessee will ensure that the policies of insurance required
under this Lease contain, or are endorsed to contain, the following provisions:
23.4.1 The City will be named as an additional insured on Commercial General
Liability which shall provide primary coverage to the City.
23.4.2 Contractor will obtain occurrence coverage.
23.4.3 This insurance will be in force during the life of the Agreement and any
extensions of it and will not be canceled without thirty (30) days prior
written notice to City sent by certified mail pursuant to the Notice
provisions of this Lease.
23.5 Providing Certificates of Insurance and Endorsements. Prior to City's execution of
this Lease, Lessee will fumish certificates of insurance and endorsements to City.
23.6 Failure to Maintain Coverage. If Lessee fails to maintain any of these insurance
coverages, then City will have the option to declare Lessee in breach, or may
purchase replacement insurance or pay the premiums that are due on existing
policies in order to maintain the required coverages. Lessee is responsible for any
payments made by City to obtain or maintain insurance and City may collect these
payments from Lessee.
23.7 Noncompliance by Lessee or its Invitees with any provision of this clause shall be
cause to terminate this Lease for the City pursuant to Paragraph 3.2 above.
24. INDEMNIFICATION.
Lessee shall defend, indemnify, and hold harmless City, its officers, agents, volunteers and
employees fi'om and against any and all claims, demands, and liabilities for loss of any kind
or nature which City, its officers, agents, volunteers or employees may sustain or incur or
which may be imposed upon them or any of them for injury to or death of persons or
damage to property as a result of, arising out of, or in any manner coimected wdth this Lease
or with the occupancy and use of the Premises by Lessee, its Invitees, visitors, or any other
persons whatsoever. Lessee further agrees to pay any and all costs and expenses, including,
but not limited to, court costs and reasonable attomey's fees incurred by City on account of
any such claims, demands, or liabilities. However, the provisions of this Lease shall not be
constmed to indemnify City for claims or acts arising from City's sole negligence.
25. NONDISCRIMINATION.
Lessee herein covenants that this Lease is made and accepted upon and subject to the
condition that there shall be no discrimination against or segregation of any person or group
of persons on account of physical or mental disabilities, race, color, creed, religion, sex,
marital status, national origin or ancestry in the use, occupancy, tenure or enjoyment of the
leased premises. Lessee shall not establish or permit any such practice of discrimination or
segregation with reference to the selection, location, number, or use of occupancy by
customers, tenants, invitees or vendees in the leased Premises.
26. HAZARDOUS AND/OR CONTAMINATED SOIL AND MATERIAL.
Lessee will not place or permit to be placed materials and/or contaminated soils on the
Premises which under federal, state, or local law, statute, ordinance, or regulations require
special handling in collection, storage, treatment, and/or disposal. Lessee also hereby
covenants and agrees that, if at any time it is determined there are materials and/or
contaminated soils located on the Premises which under any environmental requirement
require special handling in collection, storage, treatment, or disposal. Lessee shall notify
City. Within thirty (30) days after written notice to City or from City, Lessee shall
commence to take and thereafter diligently complete, at Lessee's sole expense, such actions
as may be necessary to comply with environmental requirements.
27. LAW TO GOVERN; VENUE.
This Lease Agreement shall be interpreted, constmed and govemed according to the laws of
the State of Califomia. In the event of litigation between the parties, venue in state trial
courts shall lie exclusively in the County of San Diego, North County Branch. In the event
of litigation in a U.S. District Court, venue shall lie exclusively in the Southem District of
Califomia, in San Diego.
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28. SPECIAL PROVISIONS.
Lessee hereby acknowledges that Lessee waives all rights to any form of relocation
assistance provided for by local, state, or federal law to which Lessee may be entitled by
reason of this Lease.
29. AMERICANS WITH DISABILITIES ACT (ADA).
It is the duty ofthe Lessee while operating under this Lease to comply with all local, state,
and federal laws, including, but not limited to, the Americans with Disabilities Act and to
indemnify City from any violation of any such law. Failure by Lessee or its Invitees to
comply with a provision of local, state, or federal law is grounds for immediate termination
of this Lease by the City pursuant to Paragraph 3.2 above
11
IN WITNESS WHEREOF, the parties below are authorized to act on behalf of their
organizations, and have executed this Lease as of the date set forth below.
Date:
Bio, Tech, and Beyond LLC
]A^0 By:
sepOT. Jackal, III, President & CEO
Date:
Date:
APPROVED AS TO FORM
Celia Brewer, City Attomey
By:.
CITY OF CARLSBAD
By:
By:
Jane ^(^aldi. Assistant City Attomey
Dated: /^^^^/f
12
EXHIBIT "A"
The Lease Premises include the approximate 6,000 square foot building together with the a minimum of
24 parking spaces located on Parcel 2 of Parcel Map No. 14258 filed with the Office of the County
Recorder on April 18,1996 in the book of Parcel Maps at page 14258 (APN 212-062-13-00).
The premises also include the non-exclusive use ofthe parking lot access driveways located on Parcels 1
and 3 of Parcel Map No. 14258 filed with the Office of the County Recorder on April 18, 1996 in the book
of Parcel Maps at page 14258 (APN 212-062-12-00 & APN 212-062-14-00) for the purpose of ingress and
egress to the subject Lease Premises property and building described above.
The site plan included on page 2 of this exhibit shows the general building floor of the Lease Premises
and is included for reference purposes only.
2351 Faroday Avenue
EXHIBIT 3
Proposal
Creation of a Carlsbad Community Laboratory That
Serves As a Start-up Company Incubator and
Science Education Center
Sponsors:
Joseph Jackson
Founder, BloCurious
Kevin Lustig, PhD
CEO, Assay Depot
Carlo Quinonez, PhD
UCSD Fellow
Todd Chamoy
Sr Consultant, Booz Allen Hamilton
Confidential
Carlsbad Bioincubator Proposal
August, 2012
SUMMARY
This is an unsolicited proposal to create a community laboratory in Carlsbad that will serve as
both a life science start-up company incubator and as a science education center. We are
proposing that Carlsbad lease us the building known as "The Farmer's Building" for use as a
community laboratory. Because of the public benefit we are providing, we are requesting a no-
cost lease with a term of 5 years. We request that the building Is leased to us In good working
order, with no deferred maintenance, and that Carlsbad continue to be responsible for
maintaining landscaping and grounds and for waste disposal. As we will not generate revenue
until our second year, we also request that Carlsbad pays the building electricity and heating
costs (estimated at $15-20K) for the first year. Our non-profit organization (status and name
pending) will cover set-up costs, equipment costs and other overhead costs of building out the
community lab. In Its first year, the community lab will be staffed by volunteers working
without pay. In subsequent years, permanent staff will be hired to provide member services.
The proposed community laboratory will achieve a number of important goals. First, It will help
Carlsbad become a national leader In the rapidly growing citizen science movement,
strengthening an already strong life science cluster here. Second, It will directly stimulate the
Carlsbad economy by creating new life science companies and new jobs based In Carlsbad.
Third, It will add to the breadth and depth of Carlsbad's core technology base and lead to the
local development and patenting of new Inventions. Fourth, It will help serve as a key San
Diego base for science education outreach efforts, particularly to high school and college
science teachers.
We already have a commitment from the nationally renowned Salk Institute In La Jolla to
partner with us In science education outreach efforts (see attached letter of support). Several
start-up companies, including Aquinas (see attached letter of support), have been enthusiastic
about the prospect of using the bioincubator to help launch their businesses. The online
science marketplace Assay Depot has also committed to an annual $5K sponsorship and to
sponsoring a $10K Open Science Competition out of a Carlsbad community lab. If it Is
established (see attached letter of support). The bottom line Is that we have spent the past 6
months testing the waters for a community lab In Carlsbad and we have found great
enthusiasm for the concept.
BUSINESS PLAN
Our vision Is to create a versatile Inexpensive labspace In Carlsbad where citizen and
professional scientists can conduct research and business activities, and where science
education groups can teach classes and host science events. The community laboratory will be
open to all citizen and professional scientists over 18 years old. Scientists younger than 18 will
be allowed access under adult supervision.
The laboratory will be constructed from donated lab benches, computers and laboratory
equipment. Some of this equipment has already been stockpiled and can be used Immediately.
We anticipate that we can create a functional cell and molecular biology lab from donated
equipment within 6 months of inception. In Its first year, the lab will be staffed by the founding
group and other volunteers.
Confidential
Carlsbad Bioincubator Proposal
August, 2012
The community lab will have five different revenue streams that will enable It to become
financially self sufficient by year 2:
Projected Revenue Sources
1. Membership Fees - Once the lab Is fully operational, we will charge researchers a
membership fee of $100 per month to use the facility. We will charge virtual or small
companies an additional monthly fee of $200 if they also want to use a shared office
and conference room.
2. Corporate Sponsorships and Science Challenges - We have business contacts at
hundreds of life science companies In Carlsbad and San Diego and believe that we can
sign up at least a handful of annual corporate sponsors that would receive some
marketing benefits In return. Some of the sponsorships will be In the form of Science
Challenges and Competitions. Assay Depot has already committed to becoming our first
corporate sponsor and to running a $10K science competition for community lab users.
3. Crowdfunding and Direct Donations - We will use online crowdfunding sites such as
petrldlsh.com, klckstarter.com and razoo.com as well as our own crowdfunding website
to fund specific research projects and to fund ongoing operations. We will also solicit
direct donations from wealthy San Diego individuals.
4. Event and Course Fees - We will charge small colleges and similar organizations a small
fee (TBD) to use the community facility for science education courses. We will also host
our own science courses and entrepreneurship workshops. In partnership with local
science groups, such as San Diego's Oxbridge Biotech Roundtable (see attached letter
of support) and the San Diego Biotechnology Network (see attached letter of support).
5. Grants - We will apply for grants from the US government and non-profit foundations.
We will also provide consulting support to member companies who want to submit SBIR
and STTR grants to the US National Institutes of Health.
We beleve that this combination of revenue sources will enable us to raise the approximately
$60K we will need by year 2 to fund operations and hire at least one full-time employee. This
number does not Include money raised by crowdfunding or other means for specific research
projects. Any additional non-project specific revenue will be used to purchase new lab
equipment, upgrade office facilities and hire additional staff members.
How Do We Measure Success?
Goal #1 Create a community space where like-minded citizen and professional scientists can
go to share Ideas, get help and access the tools they need to Innovate. Sign up 50 paying
members In first 2 years.
Goal #2 Develop a vibrant start-up company Incubator. Play a role In launching at least 8
start-up companies within the Incubator In the first 2 years.
Goal #3 Become a leading local center for science education and outreach. Offer at least 4
science courses a year at the facility In partnership with San Diego science groups.
Goal #4 Build a very lean, low cost organization, staffed primarily by volunteers and run by
scientist-members. Hire at least one full time staff member by middle of year 2.
Confidential
Carlsbad Bioincubator Proposal
August, 2012
If we are successful in creating a successful, bioincubator, we will consider acquiring equity In
future companies we help create, similar to the way that Y-Combinator has operated. This
would entail a more significant Investment of time and a possible equity Investment from
venture capitalists, but It would create the possibility of a greater payoff downstream that
could then be re-Invested in the community lab.
THE TEAM
The four founders of our non-profit organization (status and name pending) have significant
experience In life science research, science education and the formation of life science start-up
companies. They are willing to donate their time and energy to establishing and running the
proposed community laboratory. Their most Important attributes are their experience, their
passion for science and their desire to help mentor the next generation of scientists and
science companies. Three of the four founders reside in San Diego county. The fourth founder
will move to San Diego county In November, 2012.
Joseph Jackson previously founded and helped run BloCurious, one of the country's first
community laboratories. He Is a graduate of Harvard College (2004) and the London School of
Economics (2005). As an entrepreneur and angel Investor, Joseph has focused on the
convergence of blotechnologyand information technology. He Is a mentor to the Thiol
Foundation 20under20 program, and he was a participant at the Unreasonable Institute 2010
inaugural program, a participant In Start Up Chile, and a 2011 Echoing Green Finalist (one of
30 entrepreneurs out of more than 20K applicants to the oldest Social Entrepreneurship
program in the world). His mission Is to enable the emergence of a new era of
entrepreneurship by democratizing access to technology and distributing It so that small
Innovators can leverage it to have large Impacts. As Founder of the Open Science Summit, and
co-founder of BioCurlous, the first Silicon Valley biotechnology membership lab, he and his
work have been featured or quoted In Popular Mechanics, GQ (France), Nature, the New York
Times, Boston Globe, and many other blogs and outlets. As a recognized thought leader In the
emerging DIY (do It yourself) biology movement, he consults to a range of early stage
biotechnology companies and to different stakeholders in government (FBI, HHS, USPTO),
academla, and Industry, as these groups seek to understand the critical issues surrounding
Open Innovation in the 21st century knowledge economy.
Kevin Lustig, PhD Is founder and CEO of Assay Depot, a San Diego-based company whose
cloud-based software products enable scientists to easily access research services and experts.
Assay Depot's online platform helps citizen and professional scientists translate their Ideas Into
experiments. In 2001, Kevin founded and directed research at Kalypsys Inc., a San Diego-
based drug discovery company that raised over $170 million In venture funding and put five
drug candidates Into human clinical trials. Although he is now an entrepreneur, Kevin has over
15 years of experience working at the lab bench. He directed lead discovery at Tularik, a
biopharmaceutical company purchased by Amgen in 2004 for $2.5 billion, and he carried out
postdoctoral work at Harvard Medical School after receiving a PhD degree from the University
of California, San Francisco (UCSF) and an A.B. degree, magna cum laude, from Cornell
University. His research discoveries have been published In Science, Nature and other leading
scientific journals and he has been awarded eight technology patents. Recently named one of
the Pharmaceutical Industry's 100 Most Inspiring People by PharmaVolce magazine, Kevin
speaks regularly about the profound changes happening today In life science research.
Carlo Quinonez, PhD Is an IRACDA Fellow in the Department of Pharmacology at the
University of California, San Diego (UCSD), where he Is developing open-source hardware
Confidential 4
Carlsbad Bioincubator Proposal
August, 2012
Instruments that might help power the rise of the citizen science movement. He uses the open
source tools he is developing to study the regulatory network controlling activation of
the Immune system. Carlo received an Entrepreneurial Fellowship at Caltech that lead to a
seven-year foray Into the business world where he gained expertise In product design,
engineering and project management. While working at Equlgene, Carlo helped design an
Instrument to collect heart rate, cardiac output, velocity, and position from free-running
thoroughbreds on the racetrack. Dr. Quinonez also co-founded VIsopla, where he led the
development of a scalable hardware platform for high-power LED lighting.
Todd Chamoy is a management consultant with Booz Allen Hamilton, one of the largest
consulting and IT service providers In the United States. He has extensive expertise In business
and technology, providing services ranging from financial analysis to database programming
for government clients. Prior to joining Booz Allen, Todd worked as an Associate at Industrial
Economics, Incorporated, (lEc) In Cambridge, Massachusetts, a consultancy specializing In
economic analysis of environmental and homeland security Issues, where he earned
commendations from Customs 8i Border Protection and from Citizenship & Immigration
Services for his work on two key economic reports. Before entering the world of consulting,
Todd studied biology at the Massachusetts Institute of Technology (MIT); he has also earned a
Masters In Pacific International Affairs from UCSD.
Confidential
Carlsbad Bioincubator Proposal
August, 2012
"•W'EDUCATION OUTREACH
SALKINSirrUTE
lla$ttl)i-tm SficiHT Etluralion
June 13,2012
Kevin Lustig, Ph.D.
CEO, Assay Depot
lllSORoselieSt
San Diego, CA 92121
Dear Kevin,
Thank you very much for your time and interest in the Salk Education Outreach Programs. The Salk
Institute through its Education Outreach Programs has systematically been reaching out to students in an
effort to motivate and inspire the next generation of scientists. We are particularly interested in
partnering with you in the development of the new community science lab facility in Carlsbad, as well
as helping to reach area high school students and teachers for the Biocurious Science Challenge.
We know that you are aware of one of our highest profile outreach program, which is the The Salk
Institute's Mobile Science Laboratory (MSL). It is an award-wmning program established m 1996 that
provides San Diego County middle school students and teachers the opportunity to leam cutting-edge
concepts m the biosciences through use of the same standard laboratory equipment found in modem
research laboratories at no cost to the school. And to date it has worked with over 30,000 local students.
The Salk Mobile Science Lab (MSL) has served as an initial introduction to biotechnology for many San
Diego County middle school teachers. Our program is consistently booked to capacity before the
academic year starts. Over the years we have recognized that we are not able to fulfill demand for the
MSL. However through our kit-based curriculum and in-service teacher workshops we have been able to
extend its reach. We have developed Activity Kits fi-om our Mobile Science Lab curriculum that
teachers can check out. These kits provide all the necessaiy equipment and reagents for either DNA
extractions or Gel Electrophoresis and are available to teachers at two county locations through our
existing partnerships vdth Miramar and Grossmont Community Colleges. However, the teachers who
utilize the kits still need to be trauied on the activities tiiemselves. While both Miramar and Grossmont
College have served as training sites in the past, decreasing education budgets have meant that those
facilities can no longer stay open in the evenings or on weekends for our use. We are excited by the
potential of the Carlsbad facility for teacher training workshops for our kit curriculum.
The community science lab proposed in Carlsbad would be a wonderful alternative to allow us to
continue to foster high-end biotechnology experiences for our teachers and their students. We've long
had hopes of expanding our teacher outreach to include some of the amazing new research happening at
the Salk Institute, particularly in the neurosciences, and of being able to work with teachers to develop
lab based activities hi tiiese topics for their students. The lack of an appropriate training facility of our
own and increasingly Ihnited access to the community colleges has plac^ those plans on hold.
We look forward to contmuing to explore new ideas for fostering science education with your help.
With sincere thanks,
^^^^
Ellen Potter and Dona Mapston
Salk Education Outreach
10010 North Torrey Pines Road, U Jolla. CA 92037-1099
PO Box 85800, San Diego, CA 92186-5800
Tel 858.453-4)00 www.8alk.edu
AOUINAS
SCIENCES
Carlo J. Quinonez, Ph.D.
Founder, President
Lcom
cell (626) 644-8323
Aquinas Sciences, LLC
Suite F-375
270 N.B Camino Real
Encinitas, Califomia 92024
main (760) 66-AQSCI
www.aqscience.com
July 23, 2012
Kevin Lustig, Ph.D.
CEO, Assay Depot
11180 Roselle St
San Diego, CA 92121
Dear Kevin,
Aquinas Sciences LLC is developing open-source versions of scientific
instrumentation used in biology research. Our goals are ensuring equal access to
the tools used in science and fostering the large-scale collaborations needed to
accelerate the discovery of cures and scientific breakthroughs. The Aquinas
technology was originally developed at UCSD. Aquinas Sciences LLC is currently
in the process of licensing the intellectual property from the UC Regents. We are
excited by the potential of the Carlsbad facility as both a startup incubator and a
community biology lab.
As you know, Aquinas is developing a hardware platform and we're relying on
Other companies to incorporate our technology into their products. So lowering
barriers to adoption and making our hardware more accessible is an important
part of our future success. Since the Carlsbad facility will be home to multiple
startups, its an ideal location for us to move into and setup a "hardware lab,"
equipped with the specialized equipments and tools necessary for general
electronics and product design, for the mutual benefit of Aquinas and the other
startups at your facility.
We're also eager to help with the community biology lab. Part of the motivation
for open-sourcing the technology behind our hardware was to help bridge the
resource divide in education, where access to cutting-edge hardware is largely
limited to an elite minority of schools. By releasing the hardware as open-source,
we hope to catalyze a renaissance of science and shop classes in education
again. We imagine a future where schools can build their own science equipment
rather than relying on government entitlement programs to provide enough
funding to bring public science education into the 21 century. The Carlsbad
facility would be a wonderful opportunity to showcase Aquinas hardware as part
of a high-end biotechnology educational experience.
We look foHA/ard to working together to make biotechnology more open and
accessible to everyone.
Sincerely,
Carlo Quinonez
Founder and President
OS
HHH assay depot
August 24 2012
Carlsbad Community Laboratory
Re: letter of support
To Whom It May Concern,
I am writing to express Assay Depot's strong support for the proposal to create a
community laboratory in Carlsbad. We believe that the next generation of innovations
in the life science area will come from the convergence of citizen and professional
science. Community labs like the one proposed for Carlsbad will be a critical part of this
new scientific revolution.
To show our support for the community lab, Assay Depot is willing to commit to a $5K
annual corporate sponsorship and to a $10K open science competition (to fund research
within the Carlsbad community lab). You can learn more about similar open science
challenges Assay Depot has run with BioCurious, the community lab in the Bay Area,
and GenSpace, the community lab in Brooklyn, by following this link:
http://challenge.assaydepot.com/
We also plan on being involved in science education efforts out of the Carlsbad lab. We
are already planning a science educational workshop on ''how to create a start-up
company from your graduate or post-doctoral work,'' and hope to hold the course this
Winter in the Carlsbad community lab in partnership with other local science groups.
Finally, we will be happy to donate lab benches and some lab equipment to help get the
lab equipped. We will also use our large network of partners to solicit additional
equipment and supply donations.
We're excited to see firsthand the convergence of the Maker Revolution and DIY-
Biology. We look forward to helping make the Carlsbad bioincubator a success.
Best regards.
Chris Petersen
Co-Founder and CIO
Assay Depot
858 254 0875
August 28 2012
Carlsbad Community Laboratory
To Whom It May Concem,
Biotech Acumen develops cross-discipline training programs for professionals and
scientists in the biotech community. We believe numerous students and young
professionals don't realize that they have far more opportunities to leverage their talents
beyond that of traditional professional paths. Our goal is make them aware of these
paths and work with them to take action.
We believe that community focused centers like the Carlsbad Community Laboratory
support this vision. We're excited about the opportunities it will create in leveraging the
vast amount of talent we have in the region.
To show our support of the community lab, Biotech Acimien is willing to provide:
• training programs
• consulting and mentorship
• idea sharing events
The Carlsbad lab integrates seamlessly with our education and mentorship programs.
Together we can give teams the ability to take the learnings all the way to execution.
We're excited to support this convei^ence of enablers.
We look forward to helping make the Carlsbad Community Lab a success.
Best regards,
Janus Javier
Founder
Biotech Acumen
^1
•^SDBN
# Join e Connect ^ Grow
August 24 2012
Re: letter of support for Carlsbad community bioincubator
Dear Kevin,
I am writing to express the strong support of the San Diego Biotechnology Network
(SDBN) for the creation of a shared community laboratory in Carlsbad. As you know
our organization has been working since 2008 to address the need for more high quality
face to face networking opportunities for scientists in the San Diego area
(http://sdbn.org/). The proposed community lab/bioincubator would provide an
excellent venue for scientists in our network to join together to turn their ideas into
experiments and into start-up companies.
Most of our SDBN networking events are currently held in South San Diego, in the
Torrey Pines, Mission Valley or Sorrento Valley areas. The location of a community
laboratory in Carlsbad would help enable us to expand our reach to North San Diego
and Orange County. Considering Carlsbad is already home to over 100 life science
companies, having a community science hub there just makes good sense. Additionally,
we've had interest in forming a satellite networking group in Carlsbad.
As I also run Comprendia, a science marketing firm specializing in start-up companies, I
am particularly interested in the bioincubator aspect of the community lab. I believe
that the next wave of innovation in life sciences will come from citizen scientists and ex-
industry scientists working hand in hand. Community labs will be an important part of
this new collaborative way of doing science.
SDBN has a broad membership of scientists working in biotechnology, diagnostics,
green technology, medical devices or pharmaceutical discovery. I look forward to help
getting the word out about the new Carlsbad community lab.
Best regards.
Mary Canady
Founder
San Diego Biotechnology Network (SDBN)
President
Comprendia, LLC
Oxbridge
Biotech
Roundtable
SAN DIEGO CHAPTER
http://oxbridgebiotech.com
August 30 2012
RE: Support letter for Carlsbad Bioincubator
Dear Kevin,
I am writing to express the support of the Oxbridge Biotech Roundtable (OBR) for the creation of a bioincubator
in Carlsbad. Oxbridge Biotechnology Roundtable (OBR) is a student-led, intercampus forum established to foster
a conversation between academics and industry professionals in the health care and life sciences field. OBR's
mission is to create a global network of academic innovators from across disciplines, connecting them with each
other and the industry resources necessary to move ideas fonvard.
We are a community that transcends the online space, with numerous opportunities to collaborate and leam
through our online publications, our business development workshops, and our speaker series at affiliated
institutions, which has included visionary leaders in biotech and pharma and outstanding entrepreneurs. The
proposed community bioincubator in Carlsbad would be a great place for San Diego scientists in our network to
carry out the critical experiments needed to support a govemment grant application or the founding of a new start-
up company.
We believe the benefits will be mutual as OBR also offer pro bono consulting services to start-up companies, in
addition to our science education and science networking efforts. We hope to work closely with the community
scientists to provide contacts and resources for them to implement their ideas.
At OBR, we believe that science innovation comes from lowering barriers between experts in different scientific
fields. Being able to work together on real experiments in shared community labs, like the one proposed for
Carlsbad, removes a significant barrier to innovation. I look forward to working with you to make the lab a huge
success!
Warm regards,
Kelvin Chan
President, San Diego
Oxford Biotech Roundtable (OBR)
Kelvin .chan @ oxbridgebiotech .com
858 336 1633
30
Carlsbad Life Sciences Incubator
Community Laboratory and
Science Education Center
Kathy Dodson
January 29, 2013
City Council Desire for Incubator
•2008-09 City Council goal resulted in request for
proposal (RFP) for an incubator
•2011-12 second RFP issued
•RFPs included use of city-owned 2351 Faraday for
a nominal fee
•Three proposals received in 2011, none moved
forward to a lease
2351 Faraday
Farmer’s Auto Claims Building (6,000 sq. ft.)
Scope of Incubator Proposal
•Life Sciences Incubator –assisting start up
companies
•Community Lab – providing space for amateur and
professional scientists
•Science Education Center – offering a range of
classes for varying levels of expertise
Goals of Incubator Proposal
•Create new life sciences companies and new jobs in
Carlsbad
•Become a national leader in the citizen science
movement
•Strengthen our life sciences cluster
•Add to new development and new patents
•Become key base for regional science education
Request for City Investment
•Lease 2351 Faraday building for $1.00 per year
•Pay gas and electricity for one year
•Pay trash removal for 5 years
•Continue landscaping maintenance for 5 years
•No deferred maintenance in the building
New City Expenses
Deferred Maintenance HVAC Replacement $20,000
Year One Expense Gas & Electricity $30,000
Trash Removal $1,200
Year 2 -5 Expense Trash Removal $4,800
Maximum City Expense (5 years) $56,000
Cost Responsibilities of Applicant
•All tenant improvements
•Equipment acquisition and installation (estimated
equipment value $250,000)
•Salaries (estimated in-kind salary donations of
$585,000 and hard salary expenses of $292,500)
•Operating, overhead and maintenance expenses
(minus limited costs covered by City)
Incubator Proposal Strengths
•Strong, experienced team
•Support from science organizations and
interested companies
•An ambitious but achievable business plan
•Measurable with clear goals
Measuring Success
•50 paying members in first 2 years.
•Launch at least 8 start-up companies in 2 years
•Offer 4 science courses per year in partnership
with San Diego science organizations
•Hire one full time staff member by mid year 2
Support for Carlsbad Incubator
•Letters of support were received from:
–Salk Institution, Education Outreach
–Aquinos Sciences LLC
–Assay Depot
–Biotech Acumen
–San Diego Biotechnology Network
–Oxbridge Biotech Roundtable
Recommendation
Adopt resolution No. 2013-029 approving a five
year lease agreement between the City of
Carlsbad and Bio, Tech, and Beyond LLC for lease
of the city owned building, located at 2351
Faraday Ave.