Burnham deal includes free house, exhibit; Agreements include unusual extras that 'put Orlando over the top' in the race to lure the nonprofit.

BYLINE: Dan Ping

ORLANDO -- The promise of a free house, country club membership and an Epcot exhibit helped Orlando take a giant step toward becoming a biotechnology hub.

Those items top off incentives listed in more than 20 detailed contracts used to lure the Burnham Institute for Medical Research to build a 175,000-square-foot satellite lab in the Lake Nona area near Orlando International Airport.

Details of the contracts were unavailable until this week, when Orlando and Orange County approved nearly $80 million in cash incentives to finalize the deal with the nonprofit institute.

By now, the broad strokes of the overall incentive package are familiar: Orlando, Orange County, Florida and local companies will provide $367.2 million in cash and in-kind donations to Burnham, which, in return will create 303 high-paying biomedical jobs during the next decade.

But what about the specifics?

The largest economic incentive package in Central Florida history has some interesting provisions.

For instance, project developer Lake Nona Land Co. LLC will provide Burnham with:

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A house for Burnham executives

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A corporate membership at the Lake Nona Golf & Country Club

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Advertising and sponsorship opportunities during the Tavistock Cup golf tournament

In addition, Tavistock Group will create a venture fund to invest in life science technologies.

The Walt Disney World Co. will contribute to the incentive package by providing Burnham with an exhibit at Epcot, and both Florida Hospital and Orlando Regional Healthcare have committed to providing $31 million in tissue samples to be used in Burnham's research.

Attracting Burnham to Orlando was a unique opportunity that required a total package of incentives from local governments and businesses, says Brooke Bonnett, the city of Orlando's deputy director of economic development. "All of the extra incentives, while they weren't the core items of importance, they were extras that helped put Orlando over the top," Bonnett says.

Economic development expert Angelos Angelou agrees. "It's usually some of the small things make a big difference and have long-term value for a new employer," says Angelou, whose Austin, Texas-based firm, AngelouEconomics, created the Metro-Orlando Economic Development Commission's strategic plan to recruit more high-tech firms to metro Orlando.

For example, he says the Epcot exhibit "is a huge plus," because it will provide Burnham with international exposure to the millions of visitors to Epcot, and it helps assimilate Burnham into Orlando. "You can't underestimate the concern a new company has about being accepted into the community," Angelou says.

Interesting tidbits

Part of the incentive package also includes a pledge to raise $15 million through community philanthropy. To date, Central Florida residents and businesses have committed $5 million. Under the terms of the agreement, if the philanthropy drive fails to reach its goal, the city and county will contribute the difference, up to $10 million.

The deal also guarantees Burnham will retain ownership of "all discoveries, inventions and other technology," and the institute is free to commercialize or license its discoveries as it sees fit.

The agreement also requires city officials to expedite the building permit process for Burnham's facilities.

Burnham's commitment

Of course, Burnham is required to meet several conditions, too.

For example, Lake Nona Land Co. must approve Burnham's choice of name for its Florida facilities, and the name must contain "Lake Nona." So, for instance, it could end up being called The Burnham Institute Research Park at Lake Nona. The name must be used on all scientific publications, signs, stationery, business cards, ads, brochures and "all information made available to the public."

In addition to creating high-paying jobs, the La Jolla, Calif.-based firm cannot establish, maintain or operate biomedical science or research facilities in any state other than Florida and California for 20 years.

Burnham also must provide yearly and quarterly financial reports, which must separate Burnham's Florida operations from its overall operations. The nonprofit also must submit its annual budget.

As part of the agreement, Burnham will submit an annual operations report by Oct. 1, an annual science report and an annual performance expectations report that details, among other things, the amount of grants Burnham has received, any agreements reached with in-state universities and the number of spin-off businesses created.

Burnham also must comply with reasonable requests by Orlando and Orange County officials to help recruit other biomedical companies to Central Florida.

Lake Nona Land Co. has the exclusive right to name all public streets leading to the Burnham's campus, while the research firm has the right -- with the land company's consent -- to name streets that provide "internal connectivity within the property."

Meanwhile, given his past work in developing a high-tech recruitment strategy for Central Florida, Angelou says he "takes a little pride" in Burnham's decision to open a research facility at Lake Nona.

He adds, "Kudos to the economic development people for their success."

Burnham incentive package

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State of Florida, $155 million for operation costs

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City of Orlando, $32.7 million for buildings

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Orange County, $40.7 million for buildings

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University of Central Florida, $50 million in-kind for research positions, equipment and interim space

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Walt Disney World Co., $11 million in-kind for Epcot exhibit

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Orlando Regional Healthcare/Florida Hospital, $31 million in-kind tissue sample donations

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Lake Nona Land Co., $31.1 million land and cash

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Community philanthropy, $15 million

Source: City of Orlando

Burnham Institute for Medical Research

Top official: Dr. John Reed, president and CEO Headquarters: La Jolla, Calif. Core business: Nonprofit medical research institute focused on cancer, neurodegenerative diseases and incurable infectious diseases Founded: 1976 Annual budget: $90 million Employees: 750, including 500 scientists Funding sources: National Institutes of Health and other federal agencies; philanthropy; technology licensing Contact: (858) 646-3100, www.burnham.org

Burnham's Orlando satellite lab

Location: Lake Nona Employees: 303 to be hired during next 10 years Budget: Up to $50 million annually Areas of emphasis: Obesity and diabetes research; drug discovery