Local View: Research park would be an investment
The recent story and headline in the Lincoln Journal Star reporting on the university’s concept for an Innovation Park at State Fair Park no doubt caused some eyebrows to rise. The headline suggested the cost was $1 billion, $300 million of which would be paid by Nebraska taxpayers. Neither is correct.
The university does propose to create a public-private research campus with some university research facilities. Most of the buildings will be constructed by private sector companies who want to locate near our campus. These private sector buildings would be paid for by those companies who would also pay at least market rates for leasing the land.
Rather than being a “cost”, these dollars represent private sector investments in this community. These investments would add to the property tax base of Lincoln and the sales and income tax base of the State of Nebraska. Most significantly, they would create jobs that are attractive to recent college graduates. This is good for Nebraska taxpayers.
There is no expectation that taxpayers would pay the $300 million for the public research facilities. If the next 20 years are similar to the last 20 years, private philanthropy, federal grants and university generated revenue will pay for most of these University buildings.
Certain situations may require some state contribution. For example the Beadle Center was constructed primarily by a federal grant and private philanthropy but the legislature appropriated only a small portion of the cost to complete the package. That building has paid for itself with the grants generated by the scientists who came to Nebraska to work in its laboratories. But we are not assuming a high proportion of tax support for the Innovation Park.
I recognize floating numbers like $300 million and $1 billion may make these projects seem beyond our means. If the experience of other states is any guide, the Innovation Park will be at least a 20 year project to complete. It will be completed in stages as opportunities arise. At the same time, we are confident that this project can generate significant economic benefits for Nebraska.
One final point. I am often asked why we cannot build this somewhere else so that we avoid moving the State Fair. It has been demonstrated around the country that the single most important factor in the success of these types of developments is their location. Private sector technology companies want to be on a university campus with easy access to faculty who share research interests, to students who can serve as interns and to classes that can provide continuing education to their employees. Clustering these companies in a single location creates the interaction of scientists that generally leads to more innovation and more private investment.
This is a big and ambitious idea. But it is also something Nebraska can accomplish within its means. It is something, in my view, that Nebraska should do if it is to stay competitive, retain its young people and expand its economic horizons.
Harvey Perlman is chancellor of the University of Nebraska-Lincoln.
The university does propose to create a public-private research campus with some university research facilities. Most of the buildings will be constructed by private sector companies who want to locate near our campus. These private sector buildings would be paid for by those companies who would also pay at least market rates for leasing the land.
Rather than being a “cost”, these dollars represent private sector investments in this community. These investments would add to the property tax base of Lincoln and the sales and income tax base of the State of Nebraska. Most significantly, they would create jobs that are attractive to recent college graduates. This is good for Nebraska taxpayers.
There is no expectation that taxpayers would pay the $300 million for the public research facilities. If the next 20 years are similar to the last 20 years, private philanthropy, federal grants and university generated revenue will pay for most of these University buildings.
Certain situations may require some state contribution. For example the Beadle Center was constructed primarily by a federal grant and private philanthropy but the legislature appropriated only a small portion of the cost to complete the package. That building has paid for itself with the grants generated by the scientists who came to Nebraska to work in its laboratories. But we are not assuming a high proportion of tax support for the Innovation Park.
I recognize floating numbers like $300 million and $1 billion may make these projects seem beyond our means. If the experience of other states is any guide, the Innovation Park will be at least a 20 year project to complete. It will be completed in stages as opportunities arise. At the same time, we are confident that this project can generate significant economic benefits for Nebraska.
One final point. I am often asked why we cannot build this somewhere else so that we avoid moving the State Fair. It has been demonstrated around the country that the single most important factor in the success of these types of developments is their location. Private sector technology companies want to be on a university campus with easy access to faculty who share research interests, to students who can serve as interns and to classes that can provide continuing education to their employees. Clustering these companies in a single location creates the interaction of scientists that generally leads to more innovation and more private investment.
This is a big and ambitious idea. But it is also something Nebraska can accomplish within its means. It is something, in my view, that Nebraska should do if it is to stay competitive, retain its young people and expand its economic horizons.
Harvey Perlman is chancellor of the University of Nebraska-Lincoln.
Copyright © 2002-2008 Lincoln Journal Star. All rights reserved.