A day after Gov. Jeb Bush told the county to take a risk on Scripps, County Commissioner Burt Aaronson called on the state to put up its own money as an insurance policy in the event Scripps leaves.

Aaronson, who was picked to negotiate on behalf of the county commission, said Saturday that he will ask the state to reimburse a share of the cost of building The Scripps Research Institute's Florida facility in Jupiter should the institute leave within the next 15 years.

[That's $225 million on top of the $310 million we've already put up--SR]

Aaronson seeks state guarantee on Scripps
By Jennifer Sorentrue, Deana Poole

Palm Beach Post Staff Writers

Sunday, April 30, 2006


In exchange, the state could use the buildings for educational purposes if Scripps moved out.

Aaronson, a Democrat, said he will send his proposal to Bush on Monday — a day before a deadline set by Scripps to resolve the contract dispute that is delaying efforts to split Scripps' 100-acre campus between Florida Atlantic University and the Briger tract in Palm Beach Gardens.

"Something like this could break an impasse," Aaronson said. "Even though this doesn't tie Scripps to us, at least the county taxpayers would be made somewhat whole. If the governor feels as strongly as he does that Scripps is never going to leave, I would hope that the governor would enter into this with us."

Aaronson has said that, should the biotech institute leave, the cost to taxpayers would be $255 million, after selling the Mecca Farms site west of Palm Beach Gardens, the original local home for Scripps, which is based in La Jolla, Calif.

On Friday, Bush sent the county his own proposal to end the stalemate. He urged commissioners to "accept risk and be flexible." He called on the county to treat Scripps as a "partner not as a lender."

Aaronson, in response, called on the governor for help: "We don't consider ourselves lenders, we consider ourselves full partners.... I would ask the governor to become a partner."

The state committed to pay $310 million, plus interest, to cover start-up costs, including equipment and salaries, under a seven-year funding contract with Scripps approved in 2003.

Bush spokesman Russell Schweiss couldn't be reached for comment Saturday. It was unclear Saturday what approvals would be needed should the state find Aaronson's proposal acceptable. The state legislature remains in session for another week.

Don Mathis, a public relations consultant hired by Scripps, said: "Anything that could help would be interesting to pursue. That's really an issue between the state and the county."

Aaronson's plan came as county officials pored over Scripps' lengthy counterproposal, submitted after 7 p.m. Friday.

County Administrator Bob Weisman said Saturday that three key sticking points immediately popped up.

They include:

• Cluster: Scripps wants the county to contractually commit to creating a cluster of biotechnology businesses around the FAU/Briger site. The institute also wants the county to identify 8 million square feet of space for the businesses. Scripps officials say the issue is a "deal-breaker" because they fear the institute could lose state money if the cluster is not created.

Under the contract for Mecca Farms — known by the name of its former owner, an agriculture company that grew oranges there — Scripps officials say they had that commitment because it set aside 400 acres for related businesses. The county has been concerned about contractually committing to the cluster under the FAU/Briger deal because it is made up of privately owned property within cities.

The county and northern cities, however, have taken steps to secure land for biotech businesses.

Weisman said the county is concerned that Scripps' counteroffer is too broad and that it could potentially leave the county liable for the cluster. "We are not sure how one works around that," Weisman said.

Bush, in his letter, also reiterated the importance of the cluster: "The county's current contractual obligation in the grant agreement to develop the cluster must be preserved, regardless of where Scripps is built."

Bush's final blessing on the north county plan will "depend greatly" on whether the county has committed to the cluster and taken "affirmative steps to develop it," he said.

Bush and a majority of the Florida Cabinet must approve the transfer of land within FAU's Abacoa campus to Scripps' use, a 99-year lease agreement and a change to the university master plan. The Cabinet is tentatively scheduled to take up those issues May 16.

• Jobs: Scripps' new offer contains a revised requirement of 409 jobs — down from the current contract's 545 — with its liability for any shortfalls capped at $5 million, which would be set aside in an escrow account.

If Scripps Florida staffers fall below 409 one year, Scripps has two years to make up the difference and can reach out to other scientific organizations that want to use the space to help bring its numbers back up. If, after two years, Scripps Florida still doesn't have 409 jobs, the county would receive $500,000 from the account.

If Scripps has at least 545 jobs in a year, Scripps can withdraw $500,000 from the account for its own use in Florida. If the job total falls below 545, but stays above 409, Scripps will extend the duration of the escrow account by one year.

The county is concerned that the job goals are now lower than they were under the Mecca Farms contract, which has a goal of 545 jobs.

Further, said Weisman, the county administrator, "There is no jeopardy until you get below 409."

Weisman said it also wasn't clear whether Scripps would face a one-time penalty or pay annually if it fell below the job goal.

Mathis said Scripps doesn't want to get around its commitment to provide jobs. "The real fear is: What if we drop to 544?" he said. Scripps' offer allows it flexibility.

"I don't think there's any business... that would guarantee that it will be in X point in five years, and it will stay there for 20," Mathis said.

He added that, for a nonprofit institute that relies heavily on grants and donations that can only be spent in certain ways, $5 million is "a really significant figure" and "a ton of incentive for Scripps to continue, and to have their jobs here."

• Royalties: Under the institute's new proposal, should Scripps shut down operations or leave the county before the end of the contract, Scripps has agreed to give the county any money left in the escrow account. The county also would receive royalty payments, equal to the amount Scripps gives to the state, up to $150 million.

Weisman said, "The only way to get those funds is if they default and leave."

County officials will continue reviewing Scripps' proposal today, and commissioners will receive a report outlining all of the remaining issues Monday morning, Weisman said.

But with time running out before Tuesday's deadline, it likely will be up to the county commission to decide whether Scripps' proposal is acceptable.

On Friday, Scripps Chief Operating Officer Doug Bingham called Tuesday's deadline "very real" and said the institute would begin looking at sites throughout the state if the counterproposal was not acceptable.

Since last Monday's public negotiation session, conversations between the Scripps and the county have been limited, Weisman said, and county officials weren't expected to talk to Scripps over the weekend.

"There is really no time for negotiation before Tuesday," Weisman said.
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