St. Louis RCGA - Monday Memo

May 19, 2008

GOOD DAY!

This is MONDAYMEMO, the weekly report from the RCGA President to Board members and other key investors. MONDAYMEMO is published by the St. Louis Regional Chamber and Growth Association, One Metropolitan Square, Suite 1300, St. Louis, MO 63102. To unsubscribe or change your address or method of delivery, reply to mondaymemo@stlrcga.org.

Missouri Legislative Session Concludes With Missouri “Treading Water” On State Economic Development Programs: The Missouri General Assembly adjourned its 2008 session on Friday, passing on the opportunity to significantly improve the State’s competitiveness in attracting and retaining businesses and jobs. In these uncertain economic times, many had hoped to see bold legislation passed that would invest in Missouri’s growth. The RCGA and its economic development partners throughout the region and the State had advocated elimination of the cap on the Quality Jobs Program, Missouri’s most successful program to generate private investment and new State revenue, as well as the Enhanced Enterprise Zone program. Both economic development tools generate substantial net revenue for the State. The General Assembly did increase the cap on Quality Jobs from $40 million to $60 million, and the cap on the Enhanced Enterprise Zone program from $14 million to $24 million --- both short term steps.

The just-concluded Session’s modest increases in the Quality Jobs and Enhanced Enterprise Zone programs unfortunately will not allow Missouri’s to catch up to other States’ economic incentive portfolios, nor will it prevent the State from facing the problems it has experienced in recent years of reaching the artificial cap on these two highly successful economic development incentive tools, just as we must go into competition on a deal with other States. There is tremendous competition among States to attract and retain businesses. Unlike most competitions, however, there are no silver or bronze medals. Coming in 2nd or 3rd in a site selection process to land a company doesn’t create a single job or generate a single dollar of tax revenue. In fact, even in a sluggish national economy, deal flow in the St. Louis region is at an all time high, with 94 pending deals amounting to a potential 16,289 net new jobs, and a prospective $4.045 billion in new capital investment.

This Legislative Session could have been an opportunity to raise the bar and put Missouri in a position to offset what is expected to be a continuing pressure on revenue; the State is very likely to be in a position of running out of Quality Jobs money --- and, unfortunately, it could happen right in the middle of a critical economic development deal.

As noted in independent documentation and analysis of the Quality Jobs program, artificially capping a program that has already returned $5.63 for every $1 that the State has invested to create 22,000 new jobs in 66 towns and cities (since 2005), is actually “shorting the State” at a time when there is a compelling need to bolster State revenues.

The RCGA and other economic development groups around the State also had developed and introduced the “Grow Me State” initiative this session, which sought to address the critical capital formation gap between Missouri and neighboring States. A study by the UMKC Bloch School of Business last year showed that Missouri currently spends a meager 10 cents per capita on venture capital programs, compared to an average of $2.79 in neighboring States. The Angel Tax Credit, a Seed Capital Co-Investment Fund, and a Proof-of Concept Technology Loan Program were the key components of the initiative. Despite the active support of chambers of commerce and economic development organizations from throughout the State, the Legislature did not act on these recommendations.

The $5 million Angel Tax Credit was passed by the House, but was stripped from the economic development bill in the Senate. The RCGA and its civic partners will again advance the “Grow Me State” initiative next session, along with a comprehensive strategy for entrepreneurial growth.

Notwithstanding these legislative disappointments, the RCGA commends the sponsorship and leadership of four legislators for their tireless work in support of Missouri’s economic growth:

Rep. Ron Richard (R-Joplin), Chair of the House Job Creation and Economic Development Committee;
Rep. David Pearce (R-Warrensburg), Vice Chair of the House Job Creation and Economic Development Committee and sponsor of comprehensive economic development legislation;
Rep. Tim Flook (R-Liberty), who sponsored legislation which would have enacted the “Grow Me State” initiative; and
Sen. Harry Kennedy (D-St. Louis) who sponsored legislation in support of the Quality Jobs and Enhanced Enterprise Zone programs.

The RCGA applauds the General Assembly for authorizing medical sciences projects as eligible for grants from the Missouri Life Sciences Research Trust Fund, in addition to plant and animal sciences programs that were authorized last year. Yet, the Life Sciences Research Trust Fund remains short-changed, as the Legislature again appropriated $13.4 million to the Fund while diverting nearly $29 million to other purposes. The RCGA continues to seek full funding for the Life Sciences Trust Fund, equal to 25% of the State’s tobacco settlement revenue, as originally adopted in State statute.

The RCGA also applauds:

Rep. Allen Icet (R-Wildwood), Chair of the House Budget Committee, and
Rep. Charlie Schlottach (R-Owensville), Chair of the House Appropriations Committee for Transportation and Economic Development, for their strong leadership and advocacy in support of the Life Sciences Research Trust Fund, including the authorization of medical sciences projects for funding.

Proposed improvements to the State’s business climate were also left unaddressed. For example, the Legislature’s failure to codify the Employment At-Will statute leaves businesses vulnerable to frivolous lawsuits based on unproven whistleblower claims. The RCGA continues to support legislation that preserves the rights of employers and protects legitimate whistleblowers who report unlawful conduct.

Sponsors Invited For 20th Annual RCGA "Try St. Louis … Buy St. Louis" Golf Tournament On Monday, June 16th: The 20th Annual RCGA "Try St. Louis … Buy St. Louis" Golf Tournament will be held on Monday, June 16th, at the 36-hole Whitmoor Country Club.

This year's major sponsors are Mercer Health & Benefits and Southwest Bank. KMOX News/Talk 1120 is media sponsor of the event. Mercer Health & Benefits Principal Gerry Clark is serving as Chair of the 2008 Golf Committee.

The RCGA's "Try St. Louis … Buy St. Louis" golf tournament has a tradition of being more than a great outing of golf; it is one of the region's top business networking events of the year, as well. To date, 210golfers have already registered. The tournament will offer hole-in-one, longest drive, closest-to-the-pin, and putting contests, as well as many more competition prizes. All players will receive a dozen Titleist Pro V1 golf balls as a tournament gift.

A closest-to-the-pin “shootout” for a $2,500 gift certificate will highlight the day; the 8 closest-to-the-pin winners throughout the day on the par 3s will hold a shootout at 150 yards from the 18th green for the $2,500 grand prize.

A barbecue lunch and closing dinner at the Whitmoor Country Club will round out the event; KMOX's Tom Ackerman will serve as dinner/program emcee. Great oral and silent auction items, as well as terrific attendance prizes, will add to the festivities.

To date, 47companies and organizations have committed as hole sponsors and major donors for this year's tournament: American Airlines; Ameristar Casino St. Charles; A-Mrazek Moving Systems; Anheuser-Busch Companies, Inc; Anthem Blue Cross and Blue Shield; Arcturis; Bommarito Automotive Group; CDM; Central Parking; Central States Coca-Cola Bottling Company-St. Louis; Commerce Bank; Coventry Health Care; Delta Dental of Missouri; Edward Jones; EQUIS Hospitality Management LLC; Essex Dental Benefits; First Bank; General Motors; Harrah’s St. Louis Casino & Hotel; Hilton St. Louis Frontenac; Holland Construction Services; Hyatt Regency St. Louis; Italgrani USA; Jones Lang LaSalle; Kelly Mitchell Group; Lawrence Group; Lodging Hospitality Management; Lumière Place Casino & Hotels; McGowan Brothers Development; Mercy Health Plans; Millennium Hotel; Paric Corporation; Peabody Energy; Plumbers & Pipefitters Local #562; Progressive Business Equipment; Quest Diagnostics; Schnuck Markets; Southern Illinois Construction Advancement Program; Southwest Airlines; St. Louis Blues Hockey Club; St. Louis Cardinals; St. Louis College of Pharmacy; Tarlton Corporation; U.S. Cellular; UnitedHealthcare; Walton Construction Company; and Wells Fargo.

become a hole sponsor, or to register for the golf tournament, please contact RCGA Vice President for Membership Services Colin Stahlhut today at (314) 444-1145, or e-mail him at cstahlhut@stlrcga.org.

Center For Emerging Technologies Celebrates 10th Anniversary On Thursday, June 12th: The Center for Emerging Technologies (CET) will celebrate its 10th anniversary at a gala outdoor reception at the CET, 4041 Forest Park Ave., on Thursday, June 12th, from 5:30 to 7:30 pm.

When CET opened its Building I back in 1998, there were no labs to rent for start-ups; no early-stage venture funds or angel networks; few experienced life science entrepreneurs; few companies created out of university technologies, and many of those had left; few service providers experienced in biotechnology; the Midtown area was comprised of old, deteriorating buildings; and there was no coordinated regional strategy for developing a life science industry. Working with the RCGA, the Coalition for Plant and Life Sciences, MOBIO, and other public, private and university partners, CET has been an active participant in the region achieving major accomplishments in each of these areas.

The Center for Emerging Technologies at 4041 Forest Park Ave.

CET President & CEO Marcia Mellitz notes that the true measure of success is the many outstanding life science and other advanced technology companies which have developed at CET and elsewhere in the St. Louis region. At this 10th anniversary celebration, CET will present awards to 14 new, R&D-based companies that started or developed in St. Louis, and in the last 10 years have received a minimum of $10 million in financing. Companies must still be “alive” and operating either independently or as a part of another company. Awards will be presented to the 14 companies, 8 from CET, 3 from the Nidus Center for Scientific Enterprise, and 3 others. All but 3 are life science companies.

The companies receiving awards are: AGEIA/NVIDIA; Akermin; Apath; Divergence; Exegy; Global Velocity; ISTO Technologies; Kereos; Orion Genomics; Sequoia; Singulex; Stereotaxis; Zassi Medical Evolutions; and Zystor.

For further information, including sponsorship information, please contact Michele Rutledge at (314) 615-6916.

Richard C.D. Fleming
President and CEO



			Links: BioBelt Commerce Magazine Diversity Initiative Economic Development InvestMidwest Public Policy St. Louis RCGA
	May 19, 2008 GOOD DAY! This is MONDAYMEMO, the weekly report from the RCGA President to Board members and other key investors. MONDAYMEMO is published by the St. Louis Regional Chamber and Growth Association, One Metropolitan Square, Suite 1300, St. Louis, MO 63102. To unsubscribe or change your address or method of delivery, reply to mondaymemo@stlrcga.org. *Missouri Legislative Session Concludes With Missouri “Treading Water” On State Economic Development Programs:* The Missouri General Assembly adjourned its 2008 session on Friday, passing on the opportunity to significantly improve the State’s competitiveness in attracting and retaining businesses and jobs. *In these uncertain economic times, many had hoped to see bold legislation passed that would invest* in Missouri’s growth. The RCGA and its economic development partners throughout the region and the State had advocated elimination of the cap on the Quality Jobs Program, Missouri’s most successful program to generate private investment and new State revenue, as well as the Enhanced Enterprise Zone program. Both economic development tools generate substantial net revenue for the State. The General Assembly did increase the cap on Quality Jobs from $40 million to $60 million, and the cap on the Enhanced Enterprise Zone program from $14 million to $24 million --- both short term steps. The just-concluded Session’s modest increases in the Quality Jobs and Enhanced Enterprise Zone programs unfortunately will not allow Missouri’s to catch up to other States’ economic incentive portfolios, nor will it prevent the State from facing the problems it has experienced in recent years of reaching the artificial cap on these two highly successful economic development incentive tools, just as we must go into competition on a deal with other States. There is tremendous competition among States to attract and retain businesses. Unlike most competitions, however, there are no silver or bronze medals. Coming in 2nd or 3rd in a site selection process to land a company doesn’t create a single job or generate a single dollar of tax revenue. In fact, even in a sluggish national economy, deal flow in the St. Louis region is at an all time high, with 94 pending deals amounting to a potential 16,289 net new jobs, and a prospective $4.045 billion in new capital investment. This Legislative Session could have been an opportunity to raise the bar and put Missouri in a position to offset what is expected to be a continuing pressure on revenue; the State is very likely to be in a position of running out of Quality Jobs money --- and, unfortunately, it could happen right in the middle of a critical economic development deal. As noted in independent documentation and analysis of the Quality Jobs program, artificially capping a program that has already returned $5.63 for every $1 that the State has invested to create 22,000 new jobs in 66 towns and cities (since 2005), is actually “shorting the State” at a time when there is a compelling need to bolster State revenues. The RCGA and other economic development groups around the State also had developed and introduced the “Grow Me State” initiative this session, which sought to address the critical capital formation gap between Missouri and neighboring States. A study by the UMKC Bloch School of Business last year showed that Missouri currently spends a meager 10 cents per capita on venture capital programs, compared to an average of $2.79 in neighboring States. The Angel Tax Credit, a Seed Capital Co-Investment Fund, and a Proof-of Concept Technology Loan Program were the key components of the initiative. Despite the active support of chambers of commerce and economic development organizations from throughout the State, the Legislature did not act on these recommendations. The $5 million Angel Tax Credit was passed by the House, but was stripped from the economic development bill in the Senate. The RCGA and its civic partners will again advance the “Grow Me State” initiative next session, along with a comprehensive strategy for entrepreneurial growth. Notwithstanding these legislative disappointments, the RCGA commends the sponsorship and leadership of four legislators for their tireless work in support of Missouri’s economic growth: Rep. Ron Richard (R-Joplin), Chair of the House Job Creation and Economic Development Committee; Rep. David Pearce (R-Warrensburg), Vice Chair of the House Job Creation and Economic Development Committee and sponsor of comprehensive economic development legislation; Rep. Tim Flook (R-Liberty), who sponsored legislation which would have enacted the “Grow Me State” initiative; and Sen. Harry Kennedy (D-St. Louis) who sponsored legislation in support of the Quality Jobs and Enhanced Enterprise Zone programs. The RCGA applauds the General Assembly for authorizing medical sciences projects as eligible for grants from the Missouri Life Sciences Research Trust Fund, in addition to plant and animal sciences programs that were authorized last year. Yet, the Life Sciences Research Trust Fund remains short-changed, as the Legislature again appropriated $13.4 million to the Fund while diverting nearly $29 million to other purposes. The RCGA continues to seek full funding for the Life Sciences Trust Fund, equal to 25% of the State’s tobacco settlement revenue, as originally adopted in State statute. The RCGA also applauds: Rep. Allen Icet (R-Wildwood), Chair of the House Budget Committee, and Rep. Charlie Schlottach (R-Owensville), Chair of the House Appropriations Committee for Transportation and Economic Development, for their strong leadership and advocacy in support of the Life Sciences Research Trust Fund, including the authorization of medical sciences projects for funding. Proposed improvements to the State’s business climate were also left unaddressed. For example, the Legislature’s failure to codify the Employment At-Will statute leaves businesses vulnerable to frivolous lawsuits based on unproven whistleblower claims. The RCGA continues to support legislation that preserves the rights of employers and protects legitimate whistleblowers who report unlawful conduct. Sponsors Invited For 20th Annual RCGA "Try St. Louis … Buy St. Louis" Golf Tournament On Monday, June 16th: The 20th Annual RCGA "Try St. Louis … Buy St. Louis" Golf Tournament will be held on Monday, June 16th, at the 36-hole Whitmoor Country Club. This year's major sponsors are Mercer Health & Benefits and Southwest Bank. KMOX News/Talk 1120 is media sponsor of the event. Mercer Health & Benefits Principal Gerry Clark is serving as Chair of the 2008 Golf Committee. The RCGA's "Try St. Louis … Buy St. Louis" golf tournament has a tradition of being more than a great outing of golf; it is one of the region's top business networking events of the year, as well. To date, 210golfers have already registered. The tournament will offer hole-in-one, longest drive, closest-to-the-pin, and putting contests, as well as many more competition prizes. All players will receive a dozen Titleist Pro V1 golf balls as a tournament gift. A closest-to-the-pin “shootout” for a $2,500 gift certificate will highlight the day; the 8 closest-to-the-pin winners throughout the day on the par 3s will hold a shootout at 150 yards from the 18th green for the $2,500 grand prize. A barbecue lunch and closing dinner at the Whitmoor Country Club will round out the event; KMOX's Tom Ackerman will serve as dinner/program emcee. Great oral and silent auction items, as well as terrific attendance prizes, will add to the festivities. To date, 47companies and organizations have committed as hole sponsors and major donors for this year's tournament: American Airlines; Ameristar Casino St. Charles; A-Mrazek Moving Systems; Anheuser-Busch Companies, Inc; Anthem Blue Cross and Blue Shield; Arcturis; Bommarito Automotive Group; CDM; Central Parking; Central States Coca-Cola Bottling Company-St. Louis; Commerce Bank; Coventry Health Care; Delta Dental of Missouri; Edward Jones; EQUIS Hospitality Management LLC; Essex Dental Benefits; First Bank; General Motors; Harrah’s St. Louis Casino & Hotel; Hilton St. Louis Frontenac; Holland Construction Services; Hyatt Regency St. Louis; Italgrani USA; Jones Lang LaSalle; Kelly Mitchell Group; Lawrence Group; Lodging Hospitality Management; Lumière Place Casino & Hotels; McGowan Brothers Development; Mercy Health Plans; Millennium Hotel; Paric Corporation; Peabody Energy; Plumbers & Pipefitters Local #562; Progressive Business Equipment; Quest Diagnostics; Schnuck Markets; Southern Illinois Construction Advancement Program; Southwest Airlines; St. Louis Blues Hockey Club; St. Louis Cardinals; St. Louis College of Pharmacy; Tarlton Corporation; U.S. Cellular; UnitedHealthcare; Walton Construction Company; and Wells Fargo. become a hole sponsor, or to register for the golf tournament, please contact RCGA Vice President for Membership Services Colin Stahlhut today at (314) 444-1145, or e-mail him at cstahlhut@stlrcga.org. Center For Emerging Technologies Celebrates 10th Anniversary On Thursday, June 12th: The Center for Emerging Technologies (CET) will celebrate its 10th anniversary at a gala outdoor reception at the CET, 4041 Forest Park Ave., on Thursday, June 12th, from 5:30 to 7:30 pm. When CET opened its Building I back in 1998, there were no labs to rent for start-ups; no early-stage venture funds or angel networks; few experienced life science entrepreneurs; few companies created out of university technologies, and many of those had left; few service providers experienced in biotechnology; the Midtown area was comprised of old, deteriorating buildings; and there was no coordinated regional strategy for developing a life science industry. Working with the RCGA, the Coalition for Plant and Life Sciences, MOBIO, and other public, private and university partners, CET has been an active participant in the region achieving major accomplishments in each of these areas. The Center for Emerging Technologies at 4041 Forest Park Ave. CET President & CEO Marcia Mellitz notes that the true measure of success is the many outstanding life science and other advanced technology companies which have developed at CET and elsewhere in the St. Louis region. At this 10th anniversary celebration, CET will present awards to 14 new, R&D-based companies that started or developed in St. Louis, and in the last 10 years have received a minimum of $10 million in financing. Companies must still be “alive” and operating either independently or as a part of another company. Awards will be presented to the 14 companies, 8 from CET, 3 from the Nidus Center for Scientific Enterprise, and 3 others. All but 3 are life science companies. The companies receiving awards are: AGEIA/NVIDIA; Akermin; Apath; Divergence; Exegy; Global Velocity; ISTO Technologies; Kereos; Orion Genomics; Sequoia; Singulex; Stereotaxis; Zassi Medical Evolutions; and Zystor. For further information, including sponsorship information, please contact Michele Rutledge at (314) 615-6916**. Richard C.D. Fleming President and CEO