Florida finds cash for Scripps

Wrangling ends with Legislature approving $369-million to bring biomedical firm to Palm Beach.

TALLAHASSEE - Florida lawmakers late Thursday voted to spend $369-million of taxpayer money to lure the world's largest private research center to open a branch in Palm Beach County.

The deal almost unraveled at the last minute because of a clumsy round of horse-trading between the House and Senate.

The House added nearly $50-million in local economic projects, but the Senate removed the money and approved only the money for the Scripps Research Institute of La Jolla, Calif.

The House went along, 56-28, and sent the legislation to Gov. Jeb Bush, who crafted the deal in secret and unveiled it just two weeks ago.

But most of the joy over the alliance with Scripps was lost.

"It's becoming pathetic," said Rep. Dick Kravitz, R-Orange Park, as the House reconvened to pass the Senate's stripped-down version. He criticized the "petty nonsense" in Florida's Capitol and wondered what Scripps executives must have thought.

The Scripps deal is one of the most generous economic development deals in Florida history. Bush says it could transform Florida's economy by making the state a player in the burgeoning biomedical field. He compared it to NASA's decision to locate in Florida in the early 1960s.

"Tonight's vote is a defining moment in Florida's future," Bush said. "The opportunity Scripps brings to our state is unparalleled, and the Scripps partnership is unprecedented."

What makes the Scripps deal unusual is that Bush promised public money to pay the company's salaries for seven years.

The deal gives Scripps $310-million, but the price tag is actually $369-million because the company gets to spend $59-million in interest that the money is expected to earn as the company slowly ramps up its operations.

Bush presented the package to the Legislature with firm instructions: Don't "micromanage" it.

Legislators heeded Bush's advice. But some complained that in the rush to appease Bush and Scripps, they included too few safeguards to protect the public's money.

"I would have liked to see more of a connection between the $310-million investment and the promise of 6,500 jobs," said Sen. Tom Lee, R-Brandon, who voted for the Scripps deal.

While Bush has talked of the thousands of spinoff jobs Scripps would create, the legislation requires Scripps to have just 545 employees in seven years.

"They want to teach, and they want to do research," Lee said. "You can't hold their feet to the fire for something they didn't promise."

The special session, which began Monday, is expected to end today when the Senate votes on a House bill to make minor changes to the state House redistricting map, as ordered by a federal court, for the 2004 elections.

Senate President Jim King used the redistricting bill to force the House to accept the Senate's version of the bill.

"It's the last leverage that I have over this special session," King said. "Now I mean if that's gamesmanship, or that's smart politics, I don't know. It's a fine line between the two."

The Senate gave bipartisan support to the deal on a 34-4 vote. The House vote was 88-12, with 19 members not voting.

Four Republicans voted against the bill, including Rep. Heather Fiorentino, R-New Port Richey, who said she voted against it because of the "turkeys" added to placate various lawmakers in both parties.

"It was the turkeys," Fiorentino said. "I'm sorry, it's not Thanksgiving yet. I think it was inappropriate at this time." She said the decision to add the projects was done with very little debate and without concern for the state's precarious financial condition.

But some House Democrats who often criticize Bush voted for the Scripps deal.

"I'm taking the leap of faith," said Rep. Stacy Ritter, D-Coral Springs. "Unlike some of the meddling he has done in the last five years, this is what he's supposed to do: bring jobs to the state of Florida."

The Legislature rejected the governor's proposal to create a $190-million fund for other economic projects. Lawmakers did not want to give the almost unfettered control over the money Bush sought.

The institute will sign a 20-year contract with the state. The $369-million is supposed to be startup money, paying for such things as lab equipment and staff salaries. By the end of the seven years, the institute must hire 545 employees, the equivalent of about $677,000 per position.

Palm Beach County will spend up to $200-million more to acquire land and build a Florida headquarters for Scripps. The county is buying a site large enough to accommodate other business Bush hopes will cluster around Scripps, creating a surge in high-paying health care and biomedical jobs.

That's what happened in San Diego and Bush thinks it will be replicated in Palm Beach County, though there are no guarantees.

The governor repeatedly has rejected the notion that public money is being used to support a private company.

"Scripps is a research institute. It's not a for-profit business," Bush said. "It will be a catalyst for additional investment. To hold Scripps to certain specific numbers . . . that's just inappropriate. That's not their business."

A nine-member board appointed by the governor and Legislature will disburse money to Scripps, and make sure the center obeys the contract. But many goals are "performance expectations," not legal requirements, and seven of nine board members would have to agree that Scripps violated the contract.

But much of Scripps' Florida work will remain secret, even from the Florida taxpayers who will pay for it, because of exemptions to public records laws the Legislature approved Thursday.

Democrats opposed the public records exemptions, but dropped their opposition after Rep. Johnnie Byrd agreed to some $48-million in unrelated local projects.

Scripps officials dashed out of the Capitol, suitcases in hand, at 5:45 p.m. to catch a plane back to California.

"We're very encouraged," said general counsel Doug Bingham. "We've learned a lot about Florida. We're looking forward to coming here, and being part of the community, and that's from the heart."

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