Backup Documents 12/14/2010 Item # 9AAUSLEY & MCMULLEN
ATTORNEYS AND COUNSELORS AT LAW
123 SOUTH CALHOUN STREET
P.O. BOX 391 PZIP 32302)
TALLAHASSEE, FLORIDA 32301
(0501 229 -9115 FAX (050) 222 -7560
December 13, 2010
VIA U.S. Mail and Facsimile
Jeffrey A. Klatzkow, County Attorney
3299 Tamiami Trail East, Suite 800
Naples, Florida 34112 -5749
RF, Failure of State Funding for the Jackson Laboratory Project
Dear Mr. Klatzkow:
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I represent Arthrex, Inc. On December 1, 2010 we tiled an action for declaratory judgment and
injunctive relief to prevent the unauthorized expenditure of state funds on the proposed Jackson
Laboratory project. Immediatelv after we filed the complaint, the Govemor and Director of the Office
of Tourism, Trade and Economic Development assured us that the Jackson Laboratory project will not
be approved by the current administration. I have no reason to believe that Governor -elect Scott will
support an economic development project that costs taxpayers over $1,065,000 for each job created.
Even if the Governor -elect did support the project, for the reasons described below, we are confident
that the Governor cannot legally approve the state funding.
As a legal matter, the initial legislative appropriation of $50 million for Jackson Laboratory has
failed. The 2010 appropriation contained certain conditions that were not met. Among the several
failed conditions described in our complaint, the appropriation was contingent upon the passage of
Federal law extending the Federal Medicaid Assistance Percentage rate of 6.2% from December 31,
2010 through June 30, 2011.
On August 10, 2010, President Barack Obarna signed Public Law 111 -226, which failed to
extend the Federal Medicaid Assistance Percentage rate of 6.2% from December 31, 2010 through
June 30, 2011. Although the Federal Medicaid Assistance Percentage rate was extended, the law
phases down the rate from 6.2% to 3.2% in the second quarter oh 201 1. Accordingly, the appropriation
contemplated by § 73 of House Rill 5001 is legally dead.
We hope that the County Commission finds this information helpful in considering
Commissioner Henning's motion to stay consideration of the project.
Sincerely,
Major I I lardmg
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NO SHORTAGE OF INFORMATION ON JACKSON PROJECT :The Residents' Co...ly News: Local Naples, Florida News Delivered Throughout the Day. 12/14/10 3:02 AM
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Letters to the Editor Editorial3 Columnists Perspective Bogs Poik, Latest Comments The Observation Post News Makers
The R(-sideats' Corner ht/ Out,(, "('rcpt Icrr
By dave trecker
Posted December 11, 2010 at 7:31 pm.
The recent Naples Daily News web interview with Commissioner Fred Coyle leaves
you shaking your head.
There seems to be a disconnect. Something is not plugged in.
Commissioner Coyle, an unabashed champion of the Jackson project ( "This is the
most exciting opportunity Collier County has ever had "), claims he has insufficient
information to know if the project is a good deal.
In the interview, he repeatedly bemoaned the uncertainty of state funding. When will
the money be released from Tallahassee? How much? What about next year? What
can we count on?
Coyle's obsession with state funding misses the point.
The point is, even with state funding, the project is a bad deal.
We don't have to know whether or not we get state funding to evaluate the project.
We can evaluate it based on what we know right now.
We know that Collier County taxpayers will be hit up for $130 million in matching
funds. With bond interest and needed highway and infrastructure expenses to support
the project, the actual cost per household will be about $3,000, spread over a number
of years. It could be much more if additional subsidies are needed to attract a
teaching hospital and university extension.
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NO SHORTAGE OF INFORMATION ON JACKSON PROJECT: The Residents' Co...ly News: Local Naples, Florida News Delivered Throughout the Day. 12/14/10 3:02 AM
forecloses 9A
We know that any tax or fee increase in a recession will be a burden to many
families. Bonita man beaten with god clubs during
home- invasion robbery
We know that this is a bad time to be committing tax money we don't have. County
government is strapped financially, discretionary services are in jeopardy, libraries
have had their hours slashed, our school system is on the hook for millions to meet
class -size requirements.
We know that growing a biomedical village around Jackson will be very difficult
without hefty public subsidies. As yet, no paying partner has come forward. All but the
most gullible recognize that eastern Collier County has none of the requirements for
biomedical "clustering"
We know that "personalized medicine," the basis for the village, is not new.
Government grants have gone to 55 centers for research on translational medicine.
Major pharmaceutical houses and smaller biotech labs have been pursuing gene -
based drugs for years. Jackson would be a Johnny - come - lately, competing with well -
established programs in a risky field which has had few successes to date.
We know that efforts to establish biotech clusters elsewhere in the state have been
disappointing. Some $900 million in state and local funds spent on seven centers has
netted only 1,100 new jobs, according to the Office of Program Policy Analysis and
Government Accountability.
We know that even with the most optimistic outcome -- successful development of a
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biomedical village resulting in over 11,000 new jobs within 22 years -- the return on
taxpaye uld be very low. The Washington Economic Group report 1 'T 1 5 1 V
estima ed a 2.6% retu under these most favorable circumstances. Based on more
realistic creation a returns would be negative. L rI 0 TUESDAY WEDNESDAY THURSDAY MORE
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We know that the possibility for other income -- e.g., revenue from licensed Jackson �L
patents assigned to the county -- is slim. Few patents generate income; their main Downtown Fort Myers Holiday
purpose is to provide protection from competitors. Recent restrictions on gene -based Carol Sing
patents further dampen prospects.
We know that many residents oppose the project. Electronic polls show 79 -83%
opposition. Letters to the Naples Daily News run 5:1 against it. Petitions indicate
wide- spread opposition.
We know that Jackson isn't our only chance for growth and diversification. There are
other opportunities out there, and Lee County seems to be finding them. Two stand-
alone technology companies offering a total of 400 jobs are being sought by Lee
County for a modest $7 million in local incentives. No clustering will be needed for
success.
So we know a great deal already. We don't have to waft on word from Tallahassee.
We have enough information now to know whether the Jackson project is a good
deal.
Downtown Fort Myers Holiday
Carol Sing
Downtown Fort Myers Holiday
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