PDC to give PSU $800,000 to convert offices to lab space

In an effort to keep start-up science companies in the area, the Portland Development Commission is giving Portland State $800,000 to convert space at the university’s Business Accelerator office into laboratory space.

PSU’s Business Accelerators is set up to assist new companies by providing support, as well as office and lab space, according to the Business Accelerator’s Web site. The building also links local companies up with research and development opportunities within the university and local business communities, it states.

The building is expected to be ready for use next spring or summer, after the current office space is converted, said Dana Bostrom, PSU’s director of business innovation and industry alliance. The lab space is in the final stages of cost assessment and plans are still being finalized, she said.

Bostrom said expanding the space available to local companies for scientific study is a good move for Portland and the university.

“This will extend the work PSU has done to improve the economy of the Portland area, and expand the capabilities of our PSU Business Accelerator,” Bostrom said.

Jay Kenton, vice chancellor of finance for the Oregon University System, said that although the planned space is just an “interim” situation, he is optimistic that the Legislature will “jump start” funding for the proposed new OHSU collaborative life sciences building on the South Waterfront during its legislative session next year.

Once the South Waterfront building is completed, it is expected to have around 20,000 square feet of space for research projects. $250 million has been allocated for the project in the Oregon Gov. Ted Kulongoski’s Dec. 1 budget, awaiting approval by the Legislature.

Nasry Yassa, vice president of operations for Molecular MD, a local science clinic that treats certain leukemia patients, said they are in desperate need for more space in Portland.

The company’s founders and employees have grown from a handful to almost 25, and have outgrown the under 2,000 square feet they now occupy near the Oregon Health and Science University.

“We’ve been looking nonstop to expand and found a location in Hillsboro, but no one wants to leave here,” Yassa said. “Anything would help.”

According to Dan Dorsa, OHSU vice president of research, PSU, OHSU and the Oregon University System are working together to receive more funds for scientific discovery, another scientific field seeking space for new companies.

Dorsa said funding has been flat for scientific discovery, or fundamental science, for years. He noted that the $800,000 only funds a “very small” space, no more than 2,000 square feet.

Lack of lab space for start-up bioscience companies is in a bottleneck, and some have already left for Washington County and other states.

Kenton said he is optimistic that Oregon will “rise out of the ashes” because “the leadership understands the future is in sustainability and life sciences.”

He expects the Legislature to push the funding for the South Waterfront building because of the critical nature of job losses in construction and other industries.

If the state Legislature does approve the funding after the creation of the accelerator, the South Waterfront building could be moved up by about six months, opening in 18��-30 months, he said.

“We’ve already lost a lot of opportunities that have gone elsewhere,” Kenton said.

Dorsa also said the rising number of layoffs in Oregon makes keeping companies critical.

“These companies are part of our future and they need a place to take root. They are like seeds that need fertile soil. Our labs at OHSU and below the hill are screaming for new space.”