Big plans for biotech
Hudson-led institute promises 900 jobs for city
Tuesday, August 09, 2005
By BRIAN LAWSON
Times Business Writer brianl@htimes.com
Huntsville will be the home of a major new biotechnology research institute, led by industry pioneer Jim Hudson and backed by $80 million in private contributions and a $50 million state investment.
At a luncheon today, Gov. Bob Riley, who has called for biotech development in Alabama since he first ran for governor, will announce the establishment of the nonprofit Hudson-Alpha Institute for Biotechnology.
“With a $50 million commitment from the state, we’re gaining $80 million in private investments that together will help create about 900 direct new jobs,” Riley said. “We are actively and aggressively positioning Alabama to become a worldwide leader in biotech research and one of the premier places in the nation for these high-paying jobs that can’t be exported overseas.”
Researchers in the biotech field often possess both a medical degree and a Ph.D. and want to work around the world with top researchers, the kind the institute hopes to attract.
Hudson, 63, established Huntsville’s biotech industry with his company, Research Genetics, which he founded in 1987 and sold in 2000. He said the institute project - a resurrection of a long-held idea - began to move forward in May 2004 after significant amounts of cash were raised from private donors. The group approached Riley, seeking state support. Hudson said Riley was immediately receptive and made the deal possible.
“This is the most exciting thing I’ve been involved with in my lifetime,” Hudson said. “This is going to be unique. It will be an economic development engine as much as a true research facility. We’ll have eight scientific teams, housed in the same building with eight biotech companies.”
Hudson said the private donors who generated the $80 million commitment have asked not to be identified. The donors are not investors seeking a return, he said.
While the institute and its future researchers will face plenty of competition for grant dollars, Hudson said the biotech field is exploding with the mapping of the human genome, and there are plenty of “niches available to become a dominant player.”
The institute’s researchers will pick projects of interest and, if successful applications or techniques are found, the institute will license the results in affiliation with the nearby companies, Hudson said.
He said the state’s $50 million investment, which is expected to be generated through the Capital Improvement Trust Fund, will be used for construction, while some $50 million of the $80 million in private money will be used to establish the facility and attract top scientists. Hudson said about $30 million will be set aside as an initial endowment.
Research Park campus
The institute will create a campus-like environment on 120 acres in Cummings Research Park. It will include a 260,000-square-foot main building that will house biotech companies and facilities for eight teams of institute-hired scientists, Hudson said.
Construction is scheduled to begin this winter, and organizers hope to open the institute in fall 2007. The institute will start with 500 to 600 people working in its facility and expects an annual payroll of $37 million by the end of 2008.
At full capacity, the institute is expected to employ 900. The property sold to it by the City of Huntsville is large enough to accommodate new buildings for companies that outgrow their space in the institute. Hudson estimates the overall campus could employ 1,600 within 10 years with an annual payroll of $83 million.
U.S. Rep. Bud Cramer, D-Huntsville, who helped negotiate the agreement between the institute and state officials, said the project could be the beginning of redefining Alabama’s economy.
“I think it’s an extraordinary opportunity for our state to define a future for itself that hasn’t been defined so far,” Cramer said. “This brings together assets from around the state of Alabama. And it allows us to enter an elite number of centers around the county like this. That will allow us to attract companies and scientists and projects beyond anything we’ve seen in North Alabama.”
Building a future
The University of Alabama in Huntsville biotechnology program Web site defines biotechnology as “the safe study and manipulation of biological molecules for development of products or techniques for medical and industrial application.”
Supporters of the project said Huntsville could see the same kind of biotech industry form around the institute as has been the case in San Diego in connection with the Scripps Institute there and in Palo Alto, Calif., near Stanford University.
Hudson said he is driven by a passion and love for biotech and its potential uses. With that in mind, his vision for the institute includes assisting new ideas to find a marketplace, providing opportunities for freshly minted biotech students and top talent, and developing a science curriculum to use in distance learning across the state.
Hudson said major researchers want to be able to publish their findings in connection with a university, and the institute will establish the necessary relationships with UAH and UAB.
Top scientists
Hudson said the institute’s scientific advisory board includes some of the world’s top biotech scientists, including Dr. Richard Myers, director of Stanford’s Human Genome Center, and Dr. Thomas Hudson, director of the McGill University and Genome Quebec Innovation Centre.
UAB has an established biotech center on its campus, which bears the name of U.S. Sen. Richard Shelby, R-Tuscaloosa. Birmingham officials had expressed opposition to the project, but Riley’s support, sealed in a letter of intent last December, focused on the advantages the institute is expected to bring the entire state in competition with the rest of the world, not for Huntsville at Birmingham’s expense.
Hudson said in an interview last week that officials in Georgia were also interested in the project for Georgia Tech and made a strong bid.
Cramer said an important part of negotiations was helping state officials and the Birmingham medical community know that it was “their project, as well as ours here in North Alabama.”
The institute has recruited eight biotech companies, many with previous affiliations with Hudson and based in Huntsville, to move into the facility.
The companies are Applied Genomics, Expression Genetics, Genaco Biomedical Products, New Century Pharmaceuticals, Open Biosystems, Operon Biotechnologies, SourceCF and Nektar Therapeutics.
Local home sales recovering
By Karen Middleton
karen@athensnews-courier.com
Local home sales are not showing the 11-percent rise seen nationwide, but one Realtor said sales are improving.
Patsy Gooch, president of the Limestone County Realtors Association, said Monday, “We’re still down below last year, but we’re looking up,” Gooch said.
According to the National Association of Realtors, U.S. home sales rose by the largest amount in more than eight years in June. Officials take this as a sign the housing market is recovering from the worst downturn since World War II.
“This quarter, we sold a total of 215 homes in May, June and July,” Gooch said. “This is 39 units down from the 254 we sold in the same time last year.”
Nationwide, sales have risen for three-straight months with the median sales price of $206,200, which was down by 12 percent from last year’s $234,300.
According to the National Association of Realtors, the median sales price of a home in the South is $159,300.
“We’re improving but we’re not back to where we were,” Gooch said. “The Athens and Limestone County real-estate market remains very sound. While we are down from the previous year, I believe our figures still reflect a healthy market and are in line with seasonal sales.
“We are so encouraged by what’s happening nationally in home sales,” she said. “All of our Realtors have stayed very positive and we all feel we will recover very soon.”
June 2009
Month-to-Month
Huntsville Home Sales for the month of June were truly a mixed bag with some good and not-so-good news. On the revenue side of the equation, things looked especially strong with sales revenues growing from $57,629,458 in May to $69,098,295 in June, an increase of 19.9%. This is nothing, if not good news for our local market and certainly a welcomed change from recent revenue trends. We have discussed this market mix dynamic in some detail in our previous home prices post for those wishing more detail.
However when looking on the transaction side of the equation, the number of unit sales between May and June remained relatively flat with 282 closing transactions in May and 288 in June, an increase of just 2.1%, but an increase nonetheless.
Looking at the following 4 year unit sales chart, it is quite easy to surmise that June is typically the seasonal month where transactions reach their peak for the year. However with pending contracts still at high levels perhaps this trend will be broken this time around. Nonetheless it must be stated that the number of closed transactions for the month is certainly disappointing.
Year-over-Year
Looking at Huntsville Home Sales year-over-year we see the similar trend we have been watching for 2 years now. However June’s results are somewhat worse than the average we have been measuring, with unit sale transactions down -29.2% from 2008 levels and some -42.7% lower than in June of 2007.
We have been looking closely for measurements that are indicative of a bottoming and leveling out of the Huntsville Real Estate Market, however June did not provide any assurances that we have arrived at this destination. Nevertheless we will be keeping a diligent eye on the market’s progress and will of course keep you updated as we proceed through the year.
Huntsville/North Alabama Area MLS Observations Huntsville, Alabama Residential Real Estate Market June 2009:
| 1st Half |
Total $ Sales |
Total Unit sales |
New Unit sales |
Used Unit sales |
| 2008 |
888,461,742 |
5263 |
1166 |
4097 |
| 2009 |
649,986,157 |
3971 |
774 |
3197 |
| % difference |
-27% |
-25% |
-34% |
-22% |
The 1st Half numbers pretty much speak for themselves.
Huntsville, North Alabama market was fairly strong in June as is expected in the traditionally strongest sales month of the year. This pattern still shows continued weakness in the overall market as the sales levels for the last three months are below the 2004 levels. June total dollar sales were $139,611,384, 17%, higher than last month’s $119,033,523, and 22% below last year’s level of $178,948,964 (A 4).
Total unit sales increased from 715 in May to 804 in June, an increase of 89.
New sales increased from 136 homes last month to 150 this month, an increase of 14.
Used sales increased from 579 homes last month to 654 this month, an increase of 75 (E 3).
Unfortunately the slight trend down in absolute numbers of used homes for sale seems to have stalled at a fairly high number. Used homes are 12 months of inventory in all price ranges. The inventory situation remains challenged in the higher price ranges. Used homes over $200,000 are now at over 17 months of inventory, and in some price ranges as much as 4 years of inventory.
New houses over $400,000 are over a year’s worth of inventory, and in some price ranges over four years of inventory. (E-1). There still remain 1,593 New homes for sale, slightly less than double what would have been normal prior to 2006 (C-1). I have noted on the web site what seems to be a large number of housing permits issued, given the market conditions. To examine it a bit of detail: In Huntsville city for New homes, active inventory was 514 homes; we showed 51 homes sold, 89 new listings (June) and 82 new single family housing permits issued (May), So new listings ran 1.75x sales and permits 1.6x sales.
Total Active listings decreased by 6% this month at 8,309 compared to last month at 8,828 (A 4 and E-3). New houses New listings ran almost 2 times the rate of sales (B 1). Active New listings decreased from 1,918 last month to 1,593 this month, down 325 (Page E-3). Since there were only 145 new homes sold and 271 new listings, there was an unusual number of listing cancellations, and expirations (415!) which will probably come back to market; I noticed a large number of these for the top three builders in the area. Active Used listings decreased from 6,910 last month to 6,716 this month, down 194 (E-3).
Given the high number of homes for sale (over 7,500), the BRAC realignment will not cure the market, particularly in light of other employment problems. What banks are funding construction?
Absorption for New homes improved a bit at 11 months of inventory in June. This is a deterioration of 1 month from last year at this time. See Section E page 8. Absorption for Used homes was 12 months of inventory in June same as last month. This is a deterioration of 3 months from last year’s level at this time (E 8).
Average Days on Market for Sold New houses was 170 days vs. 139 days last month, with Used at 124 vs. 118 last month. (See Section A Page 18). Contrary to some belief, this increase is a good sign, since buyers are buying homes that have been on the market for a long time scooping up some of the older listings.
Average sales price for Sold New homes was $246,642 vs. $230,984 last month. (A 2)
Average sales price for Sold Used homes was $156,903 vs. $151,329 last month. (A 2)
The mix of higher and lower priced homes is jumping around quite a bit so it’s hard to read too much into average prices. However it is worth noting that the average price 12 month moving averages are all pointing down.
Lake Forest in Southwest Huntsville
From the Lake Forest Website:
Tucked in the quiet South West corner of Huntsville sits a haven all its own. Just minutes from downtown, the arsenal and research park; Lake Forest is a premier guarded community built in harmony with the existing natural environment. It is here that you’ll enjoy unique and abundant amenities that create a more relaxed way of life; and in a setting that is reminiscent with the pace and mood of your favorite vacation get away. All this backed by the strength and experience of Breland Properties: known for creating the finest quality master planned communities. The most recent being the much sought after Highland Lakes Community.
One of Lake Forest’s finest attributes is its open space for community members to enjoy. Nearly 15% of the community is reserved for open space and recreation celebrated with a 30 acre fishing lake, clubhouse, fitness center, parks, pools, tennis courts, play area, walking trails, and a soccer field. Best of all, with the Wheeler Wildlife Refuge as a peaceful backdrop, each home site in Lake Forest offers something special to all who live here.
THE SURROUNDING AREA
Whittle away a sun-soaked afternoon watching a ball game in Joe Davis Stadium. Uncover a bit of your artistic side at the Huntsville Museum of Art, or stroll the path ways of the Botanical Gardens. Unique attractions include the Space and Rocket Center, Lake Guntersville, Sci-Quest, and the Robert Trent Golf course. But of course, the best part of a day on the town is returning home to your oasis called Lake Forest.
THE HOMES
Lake Forest’s homes come in many styles and sizes, including patio, garden, plantation, traditional single family, historic, southern and custom single family. Homes are priced from the $220’s to more than $1,000,000 and custom home sites (lots) are priced from the 60’s. Our carefully selected builders utilize the latest in value engineering, while maintaining the character and charm of homes of yesterday. Design guidelines have been carefully established that encourage authentic architecture as well as attention to detail and landscape design.
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