Splice and run

Part 2

Kristen Lombardi

Flight propelled by several engines

Still, even at its peak, the park never fulfilled expectations. About 1000 jobs have been created and $200 million in private investment -- mostly in facilities -- has been realized, representing half of what had been projected.

In addition to filling empty space in existing buildings, says Andrews, WBDC could still construct new facilities on some 35 acres of land. In the park's infancy, WBDC executives had talked of expanding upon that acreage by now. In fact, says Andrews, constructing another facility had almost become reality last year. Alpha-Beta Technology Inc. (now at Three Biotech) planned on extending its operation once a pivotal carbohydrate for disease prevention passed clinical tests. However, the company postponed work on the product, abandoning plans to move into what was conceived of as Six Biotech.

"Once Alpha-Beta mothballed, potential tenants backed out," says Andrews. "We are marketing [the park] as having available land for development, but I feel we need to backfill the current vacancy first."

Right now, the park is operating with a 17 percent vacancy rate. This comes in the wake of several company departures. After six years, Hybridon Inc. (a creator of synthetic DNA to treat AIDS and HIV) took its 201 employees, vacated its 60,000-square-foot office space, and headed off to Cambridge in February.

Aquila Biopharmaceuticals Inc. (a cancer-products maker that succeeds now-bankrupt Cambridge Biotech Corporation) announced in June its decision to move out of One Biotech to a Framingham facility. Once Aquila vacates 38,000 square feet in its current facility, One Biotech will be completely empty, bringing the park's vacancy rate to 21 percent.

Aside from the corporate shuffle, park executives have seen a managerial riffle. In January, Raymond Quinlan, director of Biotech Park for 13 years, stepped down and then offered to buy the park. (His offer was turned down by WBDC.) It marked an interesting twist of events, but a few insiders say Quinlan's departure (unlike the corporate exits) bodes well for Biotech Park. Many insiders are quick to point to Andrews's fierce marketing efforts, saying it's a marked improvement from years past.

"We'll have another tenant soon," says Andrews, alluding to current negotiations between WBDC and what Andrews describes as several "fairly large" biotech companies.

Meanwhile, Aquila Biopharmaceuticals expects to move its 60 employees to Framingham no later than June 1998, says Alison Taunton-Rigby, company president and chief executive officer. Quick to emphasize the helpful spirit of Worcester officials, Taunton-Rigby says, her decision to move Aquila came after careful consideration -- which nonetheless found Worcester not as appealing as its competitors.

To avoid significantly disrupting employees' personal lives, Taunton-Rigby identified potential sites ranging from Framingham to Worcester. (Most Aquila employees reside west of Boston, but east of Worcester.) She then considered cities known for their "friendly" attitudes toward biotech companies -- typically indicated by a city's willingness to adopt federal guidelines for regulating growth in the industry.

Because of Worcester's support of biotechnology, Taunton-Rigby says, she looked for sites here. The city didn't make the grade, however, once she considered the kind of space Aquila needs. The company boasts a pilot plant, a sort of miniature production facility, as well as several laboratories. These features call for an expansive floor-to-ceiling height -- roughly 16 feet, as opposed to 12 feet for offices. Biotech Park has a floor-to-ceiling height of 13 feet.

"This building was designed as an incubator [for start-ups], but we've outgrown this space," Taunton-Rigby says of Aquila's current location. "We're now into small-scale production."

The Framingham site -- near Route 9 and the Massachusetts Turnpike -- offered Aquila a chance to build-to-specification, she adds. And, perhaps more important, Aquila expects to pay less for "total occupancy costs" at its new site in the next decade.

"We're going to the cheapest site that best meets our needs," says Taunton-Rigby.

Of course, Aquila isn't alone in weighing the dollars. Insiders say too many companies have left Worcester because of high tax assessments and rates. Such complaints even prompted WBDC to appeal Worcester's tax rate to the state last December. WBDC offers cheaper rents to tenants as a way to curb an exodus of companies to suburban communities. (Worcester, for example, has a commercial tax rate of $35.69 per $1000, as compared to $30.61 in Framingham, $30.68 in Waltham, and $26.25 in Lexington.)

"We also need to cover our fixed costs," says Andrews. WBDC expects to get an answer from the state by the end of this year. "We're trying to be an effective management organization by meeting tenant needs. I think we've done a good job so far. These companies have not left because they had a bad landlord."

Maybe so. But, as is the case with most economic trends, company flight out of Biotech Park is prompted by more than money. Many biotech executives say Worcester is unrealistic in trying to compete with Greater Boston. Industry insiders agree that the region, home to institutions like MIT, Harvard, and Boston University, represents the intellectual center of biotechnology. An unprecedented amount of research dollars and thinkers propagate the area -- enough to encourage a growing company to move regardless of expense.

"Geography is important," says Roger Hogin, vice-president of communications and public affairs for Hybridon. The outfit now resides on Cambridge's Memorial Drive -- within walking distance to MIT and Harvard. "Just being down the street from the MIT bookstore plays a role in stimulating our scientists."

Employees aren't the only ones who apparently have benefited from the move. Hogin says the maneuver has acted as a "real boon" to company investment. Now shareholders and potential investors can visit facilities only a jaunt from Logan International Airport. No more trekking 40 miles from Boston to Worcester only to get lost in trying to find their way to the park.

"There is an advantage to bringing investors to your facilities. There is an excitement that is palpable when visiting a lab," explains Hogin. "Investors don't get to Worcester. We had to go to them, and this [excitement] doesn't travel well. The personal touch is important when you're making your way up."

So is the environment personnel enjoy. Many executives claim they must locate their companies in an area that offers a cosmopolitan lifestyle in order to attract sophisticated employees.

Part 3

Kristen Lombardi can be reached at klombardi[a]phx.com.