IN THIS ISSUE


- Sirna Therapeutics Dramatically Increases SF Presence
- SFCED Helps 114-Year-Old SF Company
- San Francisco Ranked World's Third Top Knowledge Economy
- Paris Region Economic Development Agency Chooses SF as U.S. Headquarters
- San Francisco Strives to Improve Film Industry
- Good News from SFO
- Job Growth Projections: 2006

Sirna Therapeutics Dramatically Increases SF Presence

The San Francisco Center for Economic Development (SFCED) is pleased to announce that Sirna Therapeutics, a San Francisco-based biotechnology company, is expanding its operations from 5,000 to 40,000 square feet. The company will move from its current location at China Basin to Alexandria's new building at Mission Bay in November 2006.

Sirna is on the leading edge of developing drugs that selectively target disease-causing genes and viruses. The company, with the assistance of the SFCED and Mayor's Office of Economic and Workforce Development, made their initial relocation to San Francisco from Boulder, CO, in 2004.

"This is a great affirmation of San Francisco's leadership in providing the environment and the infrastructure that allows life science leaders like Sirna to grow and prosper," said SFCED Executive Director Dennis Conaghan. "Sirna's move positions the company for long-term growth, even closer collaboration with Mission Bay research neighbors UCSF, Gladstone Institutes and QB3, and reaffirms that San Francisco is the hub of biotechnology."

SFCED Steps in to Help 114-Year old SF Business

After several weeks of meetings and public-private collaboration, Otis McAllister, a 114-year-old San Francisco company, will remain in San Francisco.

The SFCED worked with the company to keep its business in the city.

Global food and beverage exporter Otis McAllister had been contemplating a move from San Francisco to Oakland after being informed of a rent hike. However, by collaborating with the Mayor's Office of Economic and Workforce Development, the SFCED was able to make San Francisco's business advantages more compelling than Oakland's, and ultimately retain another business in the city.

Otis McAllister will now occupy office space at Pier 9, a convenient location for many of its 40 employees who live in the North and South Bay.

San Francisco: Ranked World's Third Top Knowledge Economy

San Francisco was recently named 2005's third top knowledge competitive economy by a Robert Huggins Associates study.

The World Knowledge Competitiveness Index (WKCI) measures the relationship between an economy's knowledge capacity and regional citizen wealth / economic value. The report compared leading regions, ranking San Jose, Boston, and San Francisco as the top three knowledge economies.

Rankings are based on economy benchmarks, including patent registrations, education expenditures, communication and information technology, private equity accessibility, and private and public research and development investment.

"This is another very powerful message for us to take forward as we reach out to companies in the life sciences, professional services, and other sectors," said Dennis Conaghan, San Francisco Center for Economic Development executive director.

Paris Region Economic Development Agency Chooses SF as U.S. Headquarters

The Paris Region Economic Development Agency, also known as Paris Region International Mission Enterprise (PRIME), has chosen San Francisco as its U.S. headquarters.

PRIME's new office opens April 1, with the goal of assisting companies with inward and outbound investments.

Through the efforts of the SFCED and collaboration with the Mayor's Office of Economic and Workforce Development, we were successful in helping PRIME make its decision to choose San Francisco over Boston.

San Francisco Strives to Improve Film Industry

The San Francisco Center for Economic Development (SFCED) applauds the efforts of Supervisor Michela Alioto-Pier on behalf of the San Francisco film industry, and ultimately, the local economy.

Alioto-Pier is leading the way for the city to implement film recommendations made in last year's film industry study conducted by McKinsey & Company and the SFCED. The study outlines best practices and successes, and makes recommendations based on the research.

The SFCED film study indicates that for every $1 spent on film production, up to $3 flows back into the community through transportation, local talent, construction, security and catering. Given these estimates, and the fact that other cities with incentives have reported positive results, the SFCED urged the San Francisco Film Commission to create a direct production rebate, set production criteria that a San Francisco location requires 50 to 75% of production, and to create a payroll tax exemption.

The film industry incentives are projected to stimulate the local economy by helping San Francisco compete effectively with Vancouver and New York City, and thus dramatically increase filming in San Francisco.

Good News from SFO

San Francisco: Best International Airport in North America
The San Francisco International Airport (SFO) was ranked the best international airport in North America for its fourth consecutive year. Business Traveler Germany published results from the reader research poll in March, indicating that SFO's efficient and easily-navigated facilities, and access to public transit were key factors in determining its No. 1 ranking.

SFO Flies Higher in 2006
The San Francisco International Airport (SFO) has had a steady recovery since 9/11 and the Dot Com Bust of 2001. As domestic and international travel is critical to most large companies, the region's improving economy has contributed to SFO's growth.

According to SFO statistics, the airport outperformed the U.S. domestic passenger averages in January 2006 compared to last January. The national average of domestic passengers increased by .1%, compared to SFO's .4%. Also, both the national average and SFO international passenger totals increased by 2.8% and 2.6%, respectively.

Qantas Airways: Non-Stop Service to Sydney
Australia-based Qantas Airways has begun new non-stop service three times a week between San Francisco and sister city Sydney. In June, Qantas plans connecting flights between Vancouver and Sydney with a connection in San Francisco.

Additional Services:

• United Airlines resumes its daily non-stop flights to Seoul, beginning April 2.
  
• Icelandair will resume its four-weekly non-stop Reykjavik service on May 17.
  
• Spirit Airlines, a low-cost-carrier, will inaugurate daily service to Detroit beginning May 25.
  
• AirTran Airways will add Indianapolis as a new destination on June 7."
• Northwest Airlines will also add daily Indianapolis service on June 8.

Job Growth Predicted for '06

Continued market growth is forecasted in 2006. Ken Rosen, University of California professor of real estate and urban economics, predicts 1.3 percent Bay Area job growth this year. The San Francisco unemployment rate is predicted to drop below 4 percent for the first time since 2001.

For more information on these or other stories, please contact SFCED at info@sfced.org.