Wake Forest Biotech Place to Open in February
By: RICHARD CRAVER | Winston-Salem Journal
Published: January 29, 2012
A pivotal piece of the economic transformation of downtown Winston-Salem — Wake Forest BioTech Place — is ready for its debut.
But that doesn't mean the developer, Wexford Science and Technology LLC of Baltimore, is through with helping to flesh out Piedmont Triad Research Park once the 242,000-square-foot building opens in February.
Wexford owns BioTech Place and is leasing it to Wake Forest Baptist Medical Center, which oversees the park. A grand-opening ceremony is set for 10 a.m. Feb. 21.
The $100 million renovation of Building 91, a former R.J. Reynolds Tobacco Co. manufacturing plant near Fifth Street and Patterson Avenue, is considered the park's biggest project since plans for the park surfaced in 1994.
Dan Cramer, a regional executive for Wexford, said that besides the investment cost — up $13 million from when the facility was announced — the project has contributed about 1,000 construction jobs, with 75 percent coming from the Triad.
Cramer said Wexford has no specific phase-two projects on the table, but expressed confidence Wexford will remain active since "we're not as attracted to one-and-done projects."
"We're very positive and excited about what our investment will produce in BioTech Place," Cramer said. "We believe it is not only transformational to that part of the city, but a cutting-edge facility unlike anything else in the state."
The park is considered the leading new-economy engine for Forsyth County and the Triad, with about 925 employees currently on its campus.
Wake Forest University Health Sciences has said it plans to move 320 positions from its Hawthorne campus and other offices into BioTech Place. The health-sciences division has longed for years for expansion space for its research departments.
Wake Forest will occupy about 85 percent of BioTech Place, while about 25,000 square feet has been set aside for wet laboratories for startup companies, Cramer said. Allegacy Federal Credit Union said last week that it is moving its downtown branch across the street into the building, and there are plans for other retail presence that could include a café, the developer said.
Phase two of Wexford's involvement is considered pivotal by local economic and elected officials and the community given the project's potential for providing not only life-sciences research space but also momentum for downtown housing, retail and other economic shots in the arm.
What comes next
Cramer identified the former Reynolds "60" and "90" downtown buildings, all under the park's control, as the most logical next steps for redevelopment. Those buildings would likely provide speculative laboratories for companies ready to grow out of local incubator space.
"We've seen our share of 'coming soon' signs that grow old and eventually fall over as the projects never happen," Cramer said.
"We're not at a point of announcing another phase because we're still researching the opportunities. We will make an announcement when we're ready to go."
One significant step toward getting BioTech Place to fruition was the city of Winston-Salem and Forsyth County agreeing to split the $6.2 million cost of infrastructure upgrades.
Winston-Salem Mayor Allen Joines said a key component to the city's involvement was the Wake Forest subsidiary agreeing to pay taxes on the building.
"It's been gratifying to receive the level of help from the city and county on a very complicated building," Cramer said. "They were very helpful in resolving roadblocks and coming up with solutions."
Joines said he considers the Wexford project "as an excellent case study of a public-private partnership."
"In my judgment, Wexford has been pleased with the collaboration that has occurred among the city, county and private sector," Joines said. "I am hopeful it will lead to additional projects."
Another plus was the project qualifying for federal historic and state mill-rehabilitation tax credits. The tax credits, along with other credits, are passed on to Wake Forest Baptist, Cramer said.
U.S. Bank is investing up to $18 million in the project, while Blue Cross Blue Shield of N.C. is investing up to $16 million.
"We could not, and they could not, do this project without these historic tax credits," Cramer said. "The investments made it feasible to do more with the project, such as add more high-cost lab space than we originally thought possible."
Cramer said Wexford was also fortunate that there were enough existing glass blocks on site to replace those broken or in need of repair. That helped to keep down the cost of renovation.
Loss of Edgeton
Even though Doug Edgeton, the park's president since November 2007, is stepping down Feb. 29, Cramer said he does not expect the likely months-long search for Edgeton's replacement to derail further development plans with Wake Forest.
Edgeton is credited for his negotiation skills with BioTech Place, as well as the recruiting of key researchers, such as Anthony Atala, director of the Wake Forest Institute for Regenerative Medicine.
"Dr. (John) McConnell and Dr. (Edward) Abraham are on board with the vision for where the park is headed and have been extremely helpful," Cramer said.
McConnell is chief executive of Wake Forest Baptist, while Abraham is dean of its medical school.
That said, Cramer understands that the future of the research park, and thus Wexford's involvement, requires the recruiting and nurturing of companies outside those being spun out of Wake Forest.
Among those on the list are companies that want to be close to the groundbreaking research taking place within Wake Forest's health-sciences and biotechnology units.
"These things take time," Cramer said. "These companies aren't just going to come here, but they will be attracted by the successes of the Wake Forest spinoffs and other local efforts, such as Targacept."
Gayle Anderson, chief executive and president of the Winston-Salem Chamber of Commerce, said she considers BioTech Place a major economic development step for creating a critical mass of biotech jobs.
"We desperately need space for potential park tenants, and having them co-located with Wake Forest University scientists and researchers creates the knowledge environment that is critical to the success of the park," Anderson said. "Bringing hundreds of knowledge workers downtown is a positive step for our downtown development, which will have an impact far beyond the two buildings."
Cramer said Wexford also is interested to see how the "work, live, play" climate continues to develop in downtown.
It has long been the vision for a downtown research park having life-sciences or technology workers who walk or bicycle to work from their homes in renovated buildings in once-blighted areas, then spend their disposable income at nearby sports bars, restaurants and performing-arts venues.
Downtown impact
Not counting the pending Wake Forest employees in BioTech Place, the park has gained fewer than 400 jobs since 2002, when research park backers first predicted it would employ 15,000 by 2017.
Edgeton has said that before job creation could take off, the park had to make significant improvements to its infrastructure and add laboratory and research space.
Jason Thiel, president of the Downtown Winston-Salem Partnership, said downtown housing will be attractive to many of the employees being transferred to BioTech Place.
"But people must sell their existing home to buy a new home downtown or, for that matter, anywhere else," he said.
Cramer said BioTech Place is another example of how Winston-Salem and the Triad are embracing a knowledge-based economy.
"We believe over time the city will clearly see a major benefit from such an overall investment," he said.
Commercialization Experience Important For New PTRP Head
The Business Journal by Owen Covington, Reporter
Date: Friday, January 13, 2012
With the scheduled grand opening of Wake Forest BioTech Place next month, the developers of the Piedmont Triad Research Park will be taking a deep breath, as they open the doors of this newest phase of the 230-acre Winston-Salem park.
They'll also be saying goodbye to Doug Edgeton, who announced today that he is resigning from the park he's played a leading role in developing and promoting. Edgeton is president of the park and an executive vice president of Wake Forest Baptist Medical Center .Wake Forest Baptist Medical Center Latest from The Business Journals Edgeton resigns at WFU BaptistCarl Armato: Remarkable growthMcConnell new chairman of Winston-Salem Chamber Follow this company ..
Dr. John McConnell, CEO of Wake Forest Baptist, talked with The Business Journal this afternoon about what Edgeton's departure will mean for the park, and what he'll be looking for in a replacement.
"There's a tremendous loss until we can find someone who is equally strong," McConnell said. "He has been not just the face of the park, but has been so heavily involved in discussions with the city, county government, the state government and the federal government to secure funding for the park."
McConnell said Wake Forest Baptist will be looking for someone who can continue that role as the public face for the park, but will also place a priority on someone who has experience in the commercialization of new technology. A national search for Edgeton's replacement will likely begin next month.
Progress at the park, including the completion of the 270,000-square-foot, $87 million BioTech Place, has greatly added to the amount of space available, and expanded the potential for Wake Forest researchers and other park tenants to focus on bringing research advances to market, McConnell said.
"We think now for the first time, we'll have a critical mass of researchers down there that will allow us to accelerate the pace of commercialization," McConnell said.
Edgeton hasn't specifically said what he plans to do following his departure from Wake Forest Baptist at the end of next month, just as BioTech Place is opening. McConnell said that Edgeton's decision to leave Wake Forest Baptist has been one reached over the course of the last year, and reflects his desire to pursue other options.
Those options could include returning to health care administration, which is where he has spent much of his career, working as a consultant for other research parks around the country or perhaps moving into the technology commercialization field, said McConnell, though he said he didn't think Edgeton had made a decision.
Edgeton was unavailable for comment today.
Construction is continuing on a major roadway through the research park, a large stormwater retention pons and remediation at the former Bailey power plant within the park, and Edgeton's departure won't affect progress in those areas, McConnell said.
"We're stepping back just for a very brief period of time to look at the next logical steps in the park," McConnell said.
That brief pause comes as Wake Forest Baptist continues to explore the possible renovation of former R.J. Reynolds buildings adjacent to BioTech Place, and that planning process won't be delayed, though projects there aren't funded. Wake Forest Baptist is working with Wexford Science + Technology, which developed BioTech Place.
"We don't plan to lose a single step here," McConnell said.
Chief of Piedmont Triad Research Park to Leave
By RICHARD CRAVER
01/13/2012
Doug Edgeton, the energetic face of Piedmont Triad Research Park, announced Friday his plans to resign as its president, effective Feb. 29.
Edgeton has served as the park's president since November 2007, along with being interim president for 16 months.
He could not be reached for comment on his decision.
In a statement provided by the center, Edgeton said he was proud of the "tremendous growth in the medical center, medical school and research park in the past decade."
"Many of the professional goals I set for myself and the organization have come to fruition, most recently in completing Wake Forest BioTech Place," Edgeton said.
"With that in mind, and after considerable reflection, my family and I have decided this is the best time for me to resign from my current position," Edgeton said. "My plan is to build upon all the successes and further expand my career in health-care administration, research park development and research commercialization."
Edgeton also held other key positions over the past 11 years, including executive vice president of administration at Wake Forest Baptist and chief operating officer of Wake Forest School of Medicine.
Dr. John McConnell, chief executive at Wake Forest Baptist, said he was not surprised by the decision since Edgeton is a health-care executive by training.
"This was his decision," McConnell said. "We were extremely pleased with his role with the park, achieving several milestone accomplishments, including putting together our BioTech Place campus.
"He is the best I've ever seen at negotiating complex projects with government officials and developers for funding. He created a robust and visionary foundation for the park that will enable its full expansion, one of our institution's highest priorities."
Wake Forest Baptist officials also credited Edgeton with the recruiting of pivotal researchers such as Dr. Anthony Atala, director of the Wake Forest Institute for Regenerative Medicine.
The park is considered the leading new-economy engine for Forsyth County and the Triad, with about 925 employees on its campus. Wake Forest Baptist Medical Center oversees the park.
The $87 million Wake Forest BioTech Place campus is expected to debut in February. R.J. Reynolds Tobacco Co. donated the building to the research park.
The building will offer 242,000 square feet of space for laboratories, offices and other uses, primarily for operations that Wake Forest University Health Sciences is transferring from its Hawthorne campus. Wake Forest Baptist plans to have 350 employees there.
Edgeton is one of the top five executives at Wake Forest Baptist, according to its executive-compensation listing.
He received a 44 percent increase in total compensation to $906,202 for fiscal year 2009-10. His salary was raised 7 percent to $491,391, while his bonus and incentive compensation rose from $102,200 to $361,600. His other compensation, including retirement, deferred compensation and nontaxable benefits, totaled $53,211.
McConnell said his goal is to hire Edgeton's successor by July 1, with the job description formed by mid-February and top candidates identified by mid-April. The center plans to conduct a national search.
"We're going to step back at this time to see what we should consider in the new president," McConnell said. He expressed confidence that the search wouldn't deter or delay existing projects in the park, such as a roadway and storm water projects.
McConnell said the center would prefer candidates with corporate experience, as well as expertise in biotechnology, research parks and the commercialization of research.
Edgeton is the third top-level executive at Wake Forest Baptist to resign or accept a smaller role since McConnell officially took over in November 2008.
McConnell's main initial role has been stitching together Baptist Hospital and Wake Forest University Health Sciences, including the medical school, into a cohesive structure.
Dr. William Applegate resigned in June as president of the health-sciences unit and dean of its medical school. He had announced his resignation in August 2010, saying he wanted to focus more on his geriatrics practice and research.
Donny Lambeth stepped down as president of N.C. Baptist Hospital in December after just more than three years in the role and 1½ years as interim president. Lambeth shifted to president of the Davie County Hospital and Lexington Medical Center's operations within Wake Forest Baptist.
McConnell assumed the duties of Lambeth. He initially took over the duties of Applegate, but those are now shared by Dr. Thomas Sibert, president and COO of Wake Forest Baptist's integrated health system, and Dr. Edward Abraham, dean of the medical school.
While acknowledging the recent executive departures, McConnell said each decision was made on its own merits and is "a non issue."
Mayor Allen Joines said Edgeton "did a very effective job of moving the park forward and successfully implementing a number of initiatives, such as the $16 million storm water plan, BioTech Place and others." Joines added he doesn't believe the park will lose any momentum on its projects during the candidate search.
Dan Cramer, a regional executive for developer Wexford Science and Technology LLC, praised Edgeton's professionalism in assisting the company with BioTech Place.
"We will deeply miss Doug Edgeton, especially his energy and passion for the park and his willingness to roll up his sleeves to get things done," Cramer said.
"Because of his efforts and commitment, we are confident the future is very bright for the park, and we look forward to participating in the exciting transformation of this portion of Winston-Salem."
BioTech Place Builds Legacy for the Future
By: JournalNow Staff
Published: December 11, 2011
While many communities sit on their hands waiting out the longest economic recovery in modern history, Winston-Salem is moving ahead. There is no better example of this than the Piedmont Triad Research Park's latest addition — the $87 million Wake Forest BioTech Place.
Riding or walking by the project, it's obvious that it will soon be done. And with a little imagination, it's easy to envision it becoming the next downtown hub.
The transformation of Building 91, a one-time R.J. Reynolds tobacco plant, into a mixed-use development that one day may employ 450 workers is nearing completion. The 270,000-square-foot building on Patterson Avenue at Fifth Street is part of the downtown research park's North District. It will consist of research labs for 350 scientists from Wake Forest University Baptist Medical Center but also will feature office and retail spaces and student housing.
Blue Cross Blue Shield of N.C. invested $16 million in the project, using the state mill rehabilitation tax credit for historic buildings once used as manufacturing facilities. R.J. Reynolds donated the building to the research park.
Doug Edgeton, the president of the park, told the Journal's Richard Craver earlier this year that the tax credit "is a very effective tool for sustainable redevelopment and provides tremendous benefits to the local economy."
The project was announced in 2010 by the research park and developer Wexford Science and Technology LLC of Baltimore. It is expected to be completed soon. Wexford owns the building and will lease it to Wake Forest Baptist, which owns the research park.
Bernie Craig Jr., project director with Wexford, told The Business Journal that the renovated factory is a state-of-the-art facility. "Knowing that we're keeping the history of R.J. Reynolds alive … and taking this building from manufacturing to research of all levels is one of the coolest things," he said.
The project also contributes to the transformation of the eastern side of downtown from its landscape of shuttered and decaying factories to a collection of modern biotech manufacturing enterprises. The North District development should also instigate further redevelopment of the northern end of downtown, including the extension of the arts district and the completion of the Goler development.
These projects will become part of the dynamic of the rest of the downtown district created by the new downtown BB&T ballpark, the new Milton Rhodes Center for the Arts, Civic Plaza and Fourth Street's burgeoning Restaurant Row.
But the growing success of the Piedmont Triad Research Park and its economic impact on the future of Winston-Salem, indeed on the region and the entire state, cannot be overstated. That the project is bringing new life to old tobacco buildings with the goal of improving health through research is a unique and satisfying legacy for the industry that built Winston-Salem.
2011 OTAM Annual Report
November 2011
Office of Technology Asset Management
Wake Forest School of Medicine
391 Technology Way, Suite 199
Winston-Salem, NC 27101
P: 336-716-3729
F: 336-777-3259
http://www.wakehealth.edu/otam
Special News Events at PTRP
Governor Perdue Visits PTRP June 4, 2010
RJR Donates Property to Research Park April 7, 2010
