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Richmond Bay Campus Report The Richmond Bay Campus Report Strategic Business Plan and Marketing Strategy Positioning Richmond for Success Fanzi Mao | Sophia Le | Jenna Goodward | Suguru Kitagaki | Louis Caditz-Peck Social Sector Solutions RICHMOND BAY CAMPUS REPORT 1 Acknowledgements Throughout this project, our work has been advanced from many people who have contributed their time and invaluable knowledge. We would like to acknowledge the following people in particular. The input of those mentioned, and many others, have informed our understanding of the context for this project and enriched our analysis: Hanh Kent (LBNL) Gala Vaught (Craneway Pavilion) Mary Maxon (LBNL) Lance Miller (Craneway Pavilion) David Skinner (LBNL) Jude Heller (Craneway Pavilion) Sam Chapman (LBNL) Anders Swahn (Alion) Julie Sinai (UCB) Guillermo Mazier (Atlas Advertising) Dave Johnson (UCB) Rauly Butler (Mechanics Bank) Doug Crawford (QB3) Hunter Zhou (JOINN) Scott Wilson (LVOC) Laura Adler Camille Bibeau (LVOC) Whitney Berry Elizabeth Cantwell (Lawrence Livermore Michael Katz National Lab) Chris Schildt Bandon Cardwell (iGATE) Dave Tischler Carla Din (East Bay Green Corridor) Jordan Simmons (East Bay Center for the Michael Caplan (Berkeley) Performing Arts) Jennifer Cogley (Berkeley) Judy Morgan (Richmond Chamber of Janet Johnson (City of Richmond) Commerce) Jim Goins (City of Richmond) Dr. Denise Noland (Contra Costa College) Gina Baker (City of Richmond) Dr. Seti Sidharta (Center for Science Rosemary Viramontes (City of Richmond) Excellence, Contra Costa College) Richard Mitchell (City of Richmond) Lori Lindburg (BayBio) Sue Hartman (City of Richmond) Gail Maderis (BayBio) Gene Russell (Manex Consulting) Misha Tsirulnikov (BayBio) Rich Vila (Vila Construction) Travis Blaschek-Miller (BayBio) Bob Alten (Alten Construction) Bethany Weiss-Floraday (PR Consultant) Larry Etcheverry (Overaa) Lynn Upsahw (UC Berkeley Haas) Julie Hadnot (Kaiser) We would like to thank Haas Professors Paul Jansen and Nora Silver for sharing with us their impressive experience and expertise, and providing incredible support and guidance throughout our research. Finally, we would like to thank our clients at the City of Richmond for the opportunity to conduct this research. Bill Lindsay and Jennifer Ly in particular provided us with the real-world perspective that made our work meaningful and relevant. We wish them all the best with the Richmond Bay Campus and continuing to promote the economic development of Richmond. 2 RICHMOND BAY CAMPUS REPORT Table of Contents 1. Executive Summary .............................................................................................................. 5 2. Background on the Richmond Bay Campus and Richmond .................................................. 6 3. Richmond Bay Campus Development Phases ........................................................................ 7 Phase I: Construction [2015 - 2018] 7 The General Contractor Perspective 9 Phase II: Lab Operations & Growth [2018+] 11 Procurement at Lawrence Berkeley National Labs 11 How to Participate LBNL Procurement Process 11 Procurement Systems at UC Berkeley 12 How to Participate UCB Procurement Process 12 Procurement Analysis 15 Framework for Procurement Prioritization 20 4. Long Term Economic Development: Lab Expansion & Cluster Formation ........................... 22 Cluster Scenarios 22 Recommendations to Support Cluster Development 23 Overall Leadership & Vision 23 Budget & Direct Funding for Cluster Organization 25 Zoning Recommendations 26 Case Study: QB3 and Mission Bay 26 Leadership & Vision Recommendations 30 Workforce Development Recommendations 30 5. Policy Levers for Richmond Economic Development Procedures ........................................ 33 Federal and State Business Preference Programs 33 Community Benefits Agreement / Community Support Commitment 34 6. Appendices ........................................................................................................................... 40 Appendix A: Sources 40 Appendix B: Doing Business with UC Berkeley 41 Appendix C: Sample LBNL Capital Projects Prequalification Requirements 43 Appendix D. The Livermore Valley Open Campus and iGate Innovation Hub 45 RICHMOND BAY CAMPUS REPORT 3 Policy Lessons & Tools 52 Appendix E: The Richmond Economy 55 Construction Procurement 55 Direct Procurement 57 Indirect Procurement: Retail Establishments in Richmond 57 Appendix F: Regional Bioscience Developers 59 Appendix G: Draft of LBNL’s Needs and Opportunities for Cluster Visioning Council 60 4 RICHMOND BAY CAMPUS REPORT 1. Executive Summary Background The Lawrence Berkeley National Lab (LBNL) and UC Berkeley (UCB) have proposed to establish a second campus in Richmond to centralize and expand existing research programs. The proposed campus is expected to accelerate scientific innovation, technology transfer and commercialization, while creating new jobs. Construction on the Richmond Bay Campus (RBC) is expected to begin in 2015 and is projected to produce between $520 - $900 million in direct spending. After initial construction is complete, the RBC is expected to open in 2018 with an initial staff of some 800 employees. Once operational, direct procurement from RBC will begin. Direct procurement spending from LBNL alone is estimated to be $76 million per year, with additional direct procurement spending from UCB operations. In the longer term, the RBC may attract related or supporting businesses and foster the development of a bioscience cluster in Richmond. Cluster development around the RBC could produce between $41 million and $2.4 billion in direct spending and 140 – 7,500 jobs. While the RBC offers a tremendous opportunity to drive regional economic expansion and job creation for Richmond, it also poses challenges never faced before by the City of Richmond or its constituents. Thus, the City Manager’s Office has engaged the Haas School of Business Social Sector Solutions to design a strategic business plan to capture the economic benefits of the RBC for the local Richmond community. This remainder of this paper will layout a strategic business plan with a focus on two key areas of analysis: a Supply Chain & Procurement Model supporting the RBC, and a Marketing Strategy for the City of Richmond. Recommendations Economic development from the RBC can best be targeted based on stages of development: Construction, Direct Procurement, and Cluster Development. Within each of these areas, we recommend the City act to position existing Richmond businesses for success, collaborate with partner organizations, and attract new businesses to Richmond. A summary of our key recommendations is included below. RICHMOND BAY CAMPUS REPORT 5 2. Background on the Richmond Bay Campus and Richmond Richmond Bay Campus Research Focus The RBC is expected to catalyze economic development in Richmond by accelerating scientific innovation, technology transfer, and commercialization. However, economic development and job creation in Richmond would ultimately stem from advanced science taking place at the RBC. Thus, we first examine the research institutions and major categories of research and development currently anticipated for the RBC. LBNL lignocellulosic biomass into biofuels that can directly Widely recognized as one of the world's premier replace gasoline. research institutes, the Lawrence Berkeley National Lab (LBNL) is a U.S. Department of Energy (DOE) UCB national laboratory managed by the University of UC Berkeley (UCB) is a world-class education California (UC). As the nation’s oldest DOE lab, energy institution engaging in cutting-edge research through has been a primary focus of LBNL research. At many top-ranked departments. However, the present, LBNL plans to relocate the following research university is still in early planning stages for the initiatives to the RBC: Joint Genome Institute (JGI), research facilities to be developed at the RBC. Thus Joint BioEnergy Institute (JBEI), Advanced Biofuels far, UCB intends to focus is R&D efforts on advanced Process Development Unit (ABPDU), Knowledge Base manufacturing. (KBase), Life Sciences, Earth Sciences. Advanced Manufacturing Biotechnology and Biofuels Advanced manufacturing is the process of mass- Recent research at LBNL has focused on the producing products on demand, using the latest development of biotechnology & biofuels. technology. Though most manufacturing processes Biotechnology is "any technological application that can be easily executed by what has been traditionally uses biological systems, living organisms or derivatives referred to as "unskilled labor," this higher level of thereof, to make or modify products or processes for manufacturing requires specialized training. specific use". In traditional manufacturing, the manufacturer, Biofuels are solid, liquid, and gas fuels produced from wholesaler or retailer may have to rely on stockpiled organic materials. Scientists at LBNL are also working quantities to meet temporary increases in demand, or on third generation biofuels, often referred to as shutdown plants or layoff workers if demand drops “future fuels.” These fuels typically involved advanced down. Advanced manufacturing is a more flexible chemical or biological processes and generated fuels technique that can be specifically adjusted to changing beyond ethanol such as butanol and crude oil like fuel needs. Instead of building in orders to put products from alternative sources such as waste, algae and into stock for later
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