While spin-off companies spawned by the Utah Science, Technology and Research Economic Development Initiative are likely years away, the construction of research buildings at a pair of universities probably will begin early in 2008.

Ted McAleer, executive director of the USTAR Governing Authority, told the Legislature's Economic Development and Revenue Appropriations Subcommittee on Wednesday that several pieces are being put in place to advance USTAR.

The USTAR model calls for universities — initially the University of Utah and Utah State — to build facilities and recruit high-end researchers whose technologies would be commercialized.

USTAR's backers have said the initiative will eventually lead to the creation of 422 companies with 123,406 jobs paying $9 billion annually and leading to $5 billion in new state tax revenue. "The cornerstone of the program is hiring these all-star teams of faculty members, and as the teams come in, some of them bring with them grants from other states, federal grants, industrial-sponsored research grants, and some of them will be initiating a new grant process once they get on board," McAleer said.

"The ultimate purpose of the team members is to focus on commercialization, trying to take their research and identify innovation opportunities — spin-off companies as well as to actually take that technology into existing industry."

An architect has been selected to leading the "programming" process for the U.'s Neuroscience and Biomedical Technology Research Building, and the governing authority will identify a firm for the USU Bio Innovations Research Institute by the end of the month, McAleer said.

The programming process will determine what elements the buildings should include. A design phase will take place this summer, with groundbreaking expected in early 2008, he said. The location has not been determined at the U., and the USU building likely will be at the university's Innovation Campus.

Another element of USTAR is technology outreach centers. Directors have been hired for two of the five centers, which will be at Weber State University, Salt Lake Community College, Utah Valley State College, a location in southern Utah (Southern Utah University or Dixie College) and in eastern Utah at USU's Uinta Basin campus.

The centers will work to use USTAR-developed technology in existing industries, coordinate industry licensing of those technologies and get industry to sponsor research, McAleer said.

The subcommittee did not discuss USTAR's funding needs for the 2006-07 fiscal year on Wednesday. Last year, the Legislature passed a bill providing $201.1 million for two initial research buildings, with $50 million coming from the general fund and $111.1 million through authorized general obligation bonds, plus $40 million of non-state funds from the universities. It also set aside $15.25 million from the general fund and $4 million left over from the previous year for research teams and commercialization, an unspecified USTAR project, administrative costs and the Technology Outreach Program.

---

E-mail: bwallace@desnews.com