Scripps Research Institute Q&A

What did the Legislature agree to do?

Scripps Research Institute in La Jolla, Calif., the world's largest private nonprofit research center, will be paid $369-million over seven years to open a Florida branch in Palm Beach County. The money will be used to pay for offices, equipment, labs and salaries.

Scripps will hire 545 people within seven years. Florida job applicants will be given preference, except in positions requiring Ph.D. scientists, postdoctorate fellows or graduate students. Scripps predicts it will grow to 2,800 employees within 15 years, spin off businesses with 3,700 workers, and attract companies hiring tens of thousands more during that period. (An economist hired by House Democrats said the latter estimate is exaggerated.) Scripps also will give qualified Florida doctoral students access to its laboratory, and create a research program for middle and high school students and teachers.

Scripps is required to repay Florida up to $155-million, but an exact amount is not guaranteed. Scripps will give Florida 15 percent of net royalties on its patented investments, and 15 percent of the proceeds from the sale of naming rights. If Scripps breaches its contract in any way, the maximum could be raised to $200-million. The royalties apply only to licenses struck within the first 20 years. Lawmakers rejected earlier language requiring Scripps to repay the entire $$369-million.

Nothing. If it leaves within the first seven years, however, Florida will reduce its subsidy proportionally. If it leaves prematurely it must return any land, buildings or equipment it obtained with public money.

No. As a nonprofit company, it is exempt from corporate income taxes.

Scripps is prohibited from setting up a biomedical research center in any state but Florida or California over the next 12 years.

The company must maintain a policy of buying from Florida vendors if it is cost-efficient and scientifically sound to do so. It also must work with the state to ensure it does business with minority- and female-owned businesses.

The company chose Palm Beach County largely for two reasons: Its demographics are similar to San Diego's and its concentration of philanthropists could be tapped for donations. The Palm Beach County Commission will spend up to $200-million to renovate a building as a temporary Scripps home and build two buildings on property the county will buy north of West Palm Beach west of Interstate 95.

The nonprofit Scripps Florida Funding Corp., with a nine-member board appointed by the governor, the Senate and House.

Government often spends money for economic development, but usually on such things as buildings, roads or tax incentives. What makes this deal so unusual, possibly unprecedented, is that tax money will be used to pay the salaries of private employees.

The company is internationally recognized for research into immunology, molecular and cellular biology, chemistry, neurosciences, autoimmune diseases, cardiovascular diseases and synthetic vaccine development. Its 3,000 employees include 288 principal investigators (three Nobel laureates), 15 fellows of the American Association for the Advancement of Science and 775 postdoctoral fellows.

Scripps president Richard Lerner says it would focus on drug discovery, rather than pure scientific research.

The company plans to begin operations by July 2004.

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