Elk Run gets major boost
Posted on July 29th, 2009 – 4:39 PMBy Thomas Lee
The proposed Elk Run biosciences project in Pine Island just took one major step toward reality.
Developer Tower Investments said Wednesday that the state Department of Transportation will spend nearly $15 million building an interchange at U.S. Highway 52 and Olmstead County Highway 12.
The interchange, Tower notes, is key to the project because it provides direct access for potential tenants to the bioscience center from 52, which connects the Twin Cities and Rochester, home of the Mayo Clinic. Congressman Tim Walz is also seeking additional federal stimulus money.
The money marks an important milestone for Elk Run in another way: it means the state is firmly committed to the project, despite the fact that biotech guru Steven Burrill has yet to announce any investors in his proposed $1 billion venture capital/real estate fund.
In a recent interview, Burrill said he would complete such a fund by the end of the year. However, he sounded a more cautious tone in the Tower press release.
“While we must temper our expectations with an awareness of our challenging economic environment, this undoubtedly a significant step forward for Elk Run,” Burrill said.
It sounds to me that Burrill is playing a delicate game: selling an ambitious, high risk proposition to investors but at the same tempering expectations to a public grappling with a recession and weak state finances.
$15 million is an awful big leap of faith for something so vague and speculative. One thing’s for sure though.
We’re really on the hook now.
2 Responses to "Elk Run gets major boost"
I agree on the speculative nature of the project. A developer who can put together a $1 billion proposal for a bioscience business park can surely find a way to finance $15 million in highway improvements. It is not the public’s responsibility to provide them with improved access to Highway 52. Of course, we will now hear the usual drumbeat from Walz and others about the need for “job creation”. The fact that the project supports the politically-favored bioscience industry does not hurt its chances, either.
There is already a brand new interchange at Hwy 12 - just opened about 3 years ago. Why are they spending more money there? It would make more sense to build it at County Rd 31 so that there would be more than one exit serving the area.
