Posted on: Wednesday, February 11, 2004

EDITORIAL
Biotech companies need the lab space

Last year, Honolulu lost at least eight biotechnology companies to other regions because of the lack of wet-lab space and venture capital, according to Enterprise Honolulu CEO Mike Fitzgerald.

So we're pleased to hear that a legislative effort is under way to encourage the development of more wet-lab space.

For starters, wet labs are not cheap to build. Typically, they need to be reconfigurable and should include contamination-proof rooms, high-speed data connections, backup power and ventilation and waste disposal systems, according to Advertiser business writer Andrew Gomes.

To ease the cost of such specialized development, Democratic lawmakers have come up with legislation to authorize $100 million in special-purpose revenue bonds.

Introduced by Sens. David Ige and Carol Fukunaga, Senate bill 3091 would allow the state High Technology Development Corp. to offer tax-free bond financing to developers who build wet-lab space near the new UH medical school and cancer research center.

A companion bill in the House was introduced by Rep. Brian Schatz.

The HTDC was alerted to the huge demand for wet-lab space after its plan to develop a small wet-lab incubator was met with requests to provide at least 300,000 square feet of wet-lab space.

Beneficiaries of the proposed legislation might include Hawai'i Biotech Inc., which is outgrowing its space at a former sugar research facility in 'Aiea.

Without the necessary infrastructure, we have no hope of attracting and keeping high-tech and biotech companies in the Islands.

The wet-lab bill is an example of the kind of innovative legislation that encourages partnerships among the state, the University of Hawai'i and the business community. Such efforts bode well for our goal of diversifying Hawai'i's economy with clean, high-caliber industries.

We wish it success.