Univ of Alberta moves downtown with major new commercialization centre

The Univ of Alberta is moving its commercialization and technology transfer activities into the heart of Edmonton with the purchase of the old Hudson’s Bay building in city’s core. The U of will acquire and revamp the building for approximately $62 million with all levels of government contributing towards the cost of the acquisition and ongoing operation.

The government of Alberta has committed $15 million to help pay for the building and a request for matching funds has been made to the federal government through Western Economic Diversification (WD). WD has already announced $2 million over five years for operational funding for TEC Edmonton, and a similar amount in operational support is being sought from the province.

The three-story building has been vacant for more than a decade and U of A’s decision to expand into the urban core for the first time is seen as a major step forward in its revitalization. The City of Edmonton has also stepped up to the plate with financial assistance. It is committing $7.5 million towards the building’s purchase cost and $1 million annually for the next five years to support for TEC Edmonton programs, likely the largest municipal contribution in Canadian history to university-based research and commercialization.

“The city made a spectacular decision to support us on this,” says Dr Gary Kachanoski, U of A’s VP research and the incoming chair of TEC Edmonton’s board of directors. “We now have a downtown hub to celebrate research, learning and interaction with the city which is symbolic of the integration of research with economic development.”

The building’s major tenant will be TEC Edmonton, a joint venture between the city’s economic development agency and the U of A. TEC Edmonton will occupy the top two floors of approximately 13,000-sq-m, offering a mix of wet lab, dry lab and office space for company spin-offs from the university and other sources. The plan is to attract support companies such as venture capital firms, patent agents and other professional firms to offer a full-service incubation facility.

The first floor will be public space devoted to showcasing U of A activities from business development and demonstrated innovation to an art gallery.

In addition to operational funding already on the table, the U of A will provide $1 million annually to TEC Edmonton, as well as $1-2 million a year in licensing revenue from the university’s portfolio of 170 licenses. Further revenue will be secured through space and service rentals to incubating and affiliated firms. Annual operating costs are estimated at $4 million.

ENHANCE U OF A’S INNOVATION STRATEGY

“TEC Edmonton will have the master lease and start on the third floor and ultimately take over the second floor as it expands,” says Kachanoski. “The facility will certainly enhance our commercialization and innovation strategy based on the three pillars of access to services ... access to facilities ... and access to capital.”

The third pillar is still in development and discussions are continuing on the most effective ways to address the financing gap faced by so many start-ups.

Kachanoski says there are many similarities between the yet-unnamed building and Toronto’s MaRS Discovery District, although he acknowledges the smaller scale of the Edmonton concept

“They’re both positioned as an innovation hub and location that serve as a focal point for enhanced commercialization and innovation,” he says. “We’re not as big but we’ll be operational faster. We’ll be up and running in one year.”

Kachanoski takes over as the TEC Edmonton board chair in January, at which time other board members will be announced and the joint venture agreement should be finalized.

The Bay building replaces the Research Transition Facility established on the U of A campus in 2000. TEC Edmonton moved in last year and set up incubation facilities. But the building was then slated for demolition to make way for the new Health Sciences Ambulatory Learning Centre, a joint venture between U of A and the local health authority.

R$