This FAQs list was created to address issues related to Dow Chemical Company’s offer to donate property at the South Charleston Technology Park to the State of West Virginia. We encourage you to learn more about the project and see what you can do to ensure that its potential is realized before it is too late:
 

1. Exactly what is Dow proposing to donate?

Dow has proposed and is willing to donate 258 acres of its technology park including fully outfitted laboratory buildings, pilot plants and infrastructure to the State of West Virginia.  

2. Why does Dow want to donate this property?

As a publicly-traded global corporation, Dow has made strategic business decisions that have resulted in the downsizing of its research and development activities at the South Charleston site.  The company incurs significant expenses each year to maintain buildings and property it no longer needs.   

3. Is Dow leaving the technology park?

Dow would likely continue as a tenant in this park rather than a “landlord.”  This donation does not impact the manufacturing facilities of Dow that are located off of MacCorkle Avenue in South Charleston.  Those plants will continue in their operation.  

4. Are there environmental issues on the portions that Dow will donate?

Comprehensive environmental studies have been conducted by several neutral parties and the data collected show no reason that the donation cannot occur. 

5. Is Dow passing off its environmental liability to the state?

Under federal law, Dow is not permitted to “give away” any responsibility arising from potential environmental issues.  

6.   How many people currently work at the tech park?  What do they do?

There are currently more than 500 people employed at the tech park by a variety of private and public organizations including Dow, MATRIC, CDI, Bayer, WVU, EDS and others.  Technologies under development at the park include: coal to chemical products, coal liquefaction, natural gas and water treatment, polyethylene, polyurethane, biomass and renewable energy, engineering, computer services and many other industry boosting technologies. 

The tech park also houses the Chemical Alliance Zone’s incubator, which is designed to support high tech start-up organizations through the early stages of development. Four companies are currently in the incubator including Progenesis Technologies, a biotech start-up from Marshall University focused on the development of new polymers using biotechnology process.

 7.  What is the current economic impact of the park?

The tech park already plays a major role in our area’s economic development.  Just consider the impact of one of its tenants, MATRIC:   

• By the end of the 2010, MATRIC will have put  more than $40 million into the local economy.
• Of the $40 million, 92  percent came from outside of the state of West Virginia ($37 million).
• Of the $40 million, 36  percent came from outside of the United States ($14 million).

8.  What is the vision of those who are advocating for a “new” tech park?

 To create a globally-competitive, multi-tenant research and innovation center focused on bringing new technology to the marketplace in energy , chemicals and materials using the existing facilities at Dow Chemical’s South Charleston Technology Park.

9. How could the State of West Virginia use the tech park?

The facilities at the South Charleston Technology Park are designed to support research and bringing innovation into the marketplace. Governor Manchin is working hard to make this project a reality and is exploring a range of options that will make the donation viable for the state. One option that has been suggested, relocating some state offices to the property, has raised many constitutional and legal questions. In addition, moving general offices to the park does not advance the vision of creating a research environment at the facility. The Alliance and its partners are committed to working with our leaders to create a research, innovation and commercialization center, not an office park.

10. What will happen to if the deal falls through?

If the State of West Virginia does not accept the donation by the final deadline of March 1, Dow will issue lease termination notices to existing tenants. In order to lower its operating costs, Dow may demolish certain buildings and facilities. 

11. How many people COULD be employed at the park?

The current buildings and labs have the capacity to employ more than 2,000 people. The donation also includes acres of developable land upon which new buildings employing many more could be constructed.  

12. Aren’t there other labs in the state where this work can be done?

There are no other facilities in the state that provide the benefits offered by the tech park’s combination of lab space and pilot plants.  These facilities are required for process and product demonstration, scale-up and technological verification of new technologies.  

13.  How will this donation affect the area’s tax base?

While the initial transfer of this property to a public entity could temporarily impact tax revenues, it should be noted that its tax value is already on the decline as Dow shutters and razes buildings. Keeping the park open and realizing its potential as a center of research and innovation will strengthen our local and state economy. The development of the park will create jobs, stimulate private investment and have a tremendous economic impact on Kanawha County and the State of West Virginia.
 
14.  What is the impact if the deal fails?

Unless decision makers finalize plans to accept Dow’s donation of property and buildings located at the tech park to the State of West Virginia, rare pilot labs and other valuable facilities could be closed and razed within weeks — taking with them more than 500 quality jobs and closing the door to the promise of 2,000+ new research and technology-related opportunities for West Virginians. Billions of dollars in federal research funds are poised to flow to states that are committed to energy research. Saying “no” to the donation will send a signal that West Virginia is not equipped or interested in exploring and bringing to the marketplace new technologies that will help our state’s leading industries stay competitive in a changing world.

15.  Have other technology parks been successful?

There are a number of examples of successful research centers that have their origin as industrial research facilities that have been donated or sold to a government or university organization for multi-tenant use. Here are a few examples:

University Multispectral Laboratories, Oklahoma

In 1996, ConocoPhillips donated a research building in its Ponca City, Okla., complex to be used for creation of a national sensor testing center. The new center was established as a government-owned, contractor-operated facility, organized as a non-profit 501(c)(3) corporation. Oklahoma State University is a partner and represents the state in the center.

The center was projected to employ 80 scientists, engineers and support staff when established. The economic impact on the surrounding area is estimated to be $120 million over ten years. The center is now fully operational and is represented as an example of fusing government, industry and academia to provide cost, capabilities, and results efficiencies.  

University of Pittsburgh Applied Research Center (U-PARC)

U-PARC formerly existed as the research facility of Gulf Oil, which was acquired by Chevron Oil in 1985. The University of Pittsburgh of proposed to maintain and operate the facility to keep the center open for the economic benefit to the community. Chevron agreed to donate the facility, valued at $100 million, and the Commonwealth of Pennsylvania of added a $3 million dollar economic development grant.

U-PARC is a site of about 85 acres with 53 buildings, including office, laboratory, light industrial, and storage facilities. It is home to more than 100 companies from around the world, including Fortune 500 Companies. Pilot plant services are offered on chemical and petroleum-based technologies, and R&D is performed on synthetic fuels, biotechnology, environmental projects and other emerging technologies.

Michigan State Bioeconomy Institute

In 2007, Pfizer Inc. donated a pilot plant and research building in Holland, Mich. to Michigan State University for development of a bioeconomy research and commercialization center. The center is expected to employ 100 people. The facility has a replacement value of $50 million, and is seen as the foundation of a knowledge-based enterprise that will drive regional economic growth.

The Institute, opened in spring 2009, conducts research in biofuels, bio-based chemicals and biomaterials.

University of Michigan buys former Pfizer site

The University of Michigan is purchasing, for $108 million, a 30-building, 174-acre campus with 2 million square feet of offices and lab space from Pfizer. Officials expect that approximately 2,000 jobs will be created over the next ten years through expanded university research and new commercial partnerships. Pfizer announced in 2007 that the facility would be closed, displacing 2,100 workers. The company was not interested in selling the property piece by piece. Among the university’s considerations was a desire not to see Pfizer raze the campus.