Governor's task force recommends changes in economic development policy

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That was one of the recommendations in a wide-ranging report released Monday by a task force appointed by Gov. Mark Sanford to study economic development.

"Some of these ideas aren't new," said Clarence Davis, a Columbia lawyer who chaired the 51-member task force. "They've just never been implemented."

The report says the life sciences, an economic sector that includes the biotechnology and pharmaceutical industries, is "one of the few bright spots in the U.S. economy today."

It says lawmakers, as a means to recruit more life science firms, should lower the number of jobs that companies must create and the amount of money they must invest under the Economic Development Bond Act of 2002.

Lawmakers created the fund last year to pay for infrastructure such as road improvements to ensure a major expansion at the BMW Manufacturing Corp. plant near Greer and in hopes of luring a DaimlerChrysler AG van plant to the Charleston area. They required companies to hire at least 400 new workers and invest at least $400 million to tap into the fund.

But those thresholds are too high for life science firms, which typically don't hire as many workers or invest as much — at least initially, said Davis.

"A life science project may only be, say, a $200 million initial investment, and you may have only 100 employees," Davis said. "But the average income of that employee is going to be pretty high, over and above the national average."

Following the creation of the fund last year, BMW announced a 400-worker, $400 million expansion at its plant, but DaimlerChrysler decided to build its $750 million plant in Pooler, Ga., near Savannah.

In other recommendations Monday, the task force said South Carolina should:

* Encourage the creation of a venture capital fund of $100 million to $125 million by guaranteeing tax credits if loans and interest to form the pool of money don't meet minimum returns.

* Create a high-level position in the Commerce Department to focus on venture development.

* Make legislative changes to allow colleges and universities a greater role in supporting economic development.

* Restructure the Department of Parks, Recreation and Tourism to operate more efficiently, freeing up more money to spend on tourism advertising.

*Encourage the development of so-called "agribusiness," including new crops and products such as nutriceuticals to satisfy consumer trends.