HomeMy WebLinkAboutResolution - 2014-R0166 - Approve LEDA Funding - Kiromic LLC - Project Lightning Bolt - 04/24/2014RESOLUTION
WHEREAS, pursuant to Section 501.073 of the Texas Local Government Code the City
of Lubbock, as the corporation's authorizing unit, has the authority to approve all programs and
expenditures of the Lubbock Economic Development Alliance (LEDA); and
WHEREAS, the City Council finds that it is in the best interest of the public to approve
the program or expenditure, as proposed to the City Council by LEDA, as set forth in Exhibit
"A" attached hereto and incorporated herein by reference; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the program or expenditure of the Lubbock Economic Development Alliance, in
the amount set forth in Exhibit "A" attached hereto and incorporated herein by reference, to be
provided to Kiromic, LLC is hereby approved pursuant to Section 501.073 of the Texas Local
Government Code.
Passed by the City Council on Aril 24, 2014
G/CRKOBrERTSCN, MAYOR
ATTEST:
Rebe a Garza, City Secret
APPROVED AS TO CONTENT:
e4l,L4A A,--rA - A 'J�c �,
Quincy Whi , Deputy City Manager
APPRO D AS TO FORM:
Chad Weaver, Assistant City Attorney
vw:ccdocs/RES.LEDA Expenditure-Kiromic, LLC
April 8, 2014
LEDA Project
Presented to City Council
April 2014
Project Lightning Bolt,
Project Lightning Bolt, Kiromic LLC, is a company consisting of a group of oncologists from the Texas
Tech University Health Science Center that have developed a diagnostic kit for early stage cancer
detection. Kiromic exists to create a robust diagnostic and therapeutic program for solid tumors and
hematologic malignancies based on its portfolio of patented cancer -associated biomarkers and small
molecules. Kiromic aims to develop clinical diagnostic tools for rapid detection of cancer -associated
antigens, which may translate into earlier diagnosis and accurate monitoring of response to cancer
treatments. Their cancer -associated biomarkers also allow for the design and development of
personalized, cancer -specific targeted immunotherapy strategies that may improve patient outcomes and
result in less suffering and longer survival times. Kiromic possesses the scientific and clinical expertise to
achieve rapid and cost-effective development of its products. The Company pursues a clear pathway
towards commercialization by validating and adding value to its portfolio in the shortest time possible
through successful completion of Phase I and Phase I1 clinical studies. Kiromic also endeavors to
establish strong partnerships with private investors and leaders in the bio -technology and
pharmaceutical industry as demand for resources to advance clinical development and global
commercialization becomes greater. Kiromic will be creating 13 jobs in this phase of their business. They
intend to generate cash flow from the sale of this kit now while continuing the research which will lead to the
eventual treatment of patients in a second phase of their business. It was recommended and approved to grant
Kiromic $60,000 to offset the cost of clean -lab space for their project.
• This employment creates an additional 10 indirect (suppliers/support operations) and
induced jobs (retail/entertainment/hospitality) for a total of 23 jobs.
• Annual economic impacts of the business once fully operational on the Lubbock County include
a total earnings impact* of $623,000 and a total value added impact (change in Lubbock
County's Gross Regional Product) of $855,000.
• The present value of net benefits** to the City of Lubbock over 10 years (fiscal) is $33,309.
• The present value of net benefits to all taxing districts over 10 years (fiscal) is $50,620.
*Earnings impact includes all salaries/wages, benefits, and other compensation to employees. Value
added impact (change in Lubbock County's Gross Regional Product) includes earnings, taxes, and profits
that the company has added to its inputs and is equivalent to revenue less outside purchases (of
materials and services). This represents the wealth created and is also called value-added output, or
productivity.
**The Present Value of Net Benefits is a way of expressing in today's dollars, dollars to be paid or
received in the future. Today's dollar and a dollar to be received or paid at differing times in the future
are not comparable because of the time value of money. The time value of money is the interest rate or
each taxing entity's discount rate.
This analysis was conducted using Total ImpactTm, a model by Impact Data Source. The analysis was
performed using company data, rates and information provided to Lubbock Economic Development
Alliance. In addition, the model uses certain estimates and assumptions common for this type of analysis
and based on data collected for Lubbock County. Using this data, the impact from the facility and the
costs and benefits for relevant taxing districts were calculated using multipliers provided by Economic
Modeling Specialists Inc.
:EXHIBIT