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HomeMy WebLinkAboutEx. 9 - Applicant’s Response to 10 5 20 Comment Letter1 Applicant’s Response to October 5, 2020, Comment Letter from Handan Cirit for Oct. 7, 2020, re Project (Agenda Item No. 9) Comment by Handan Cirit Applicant’s Response 1. BIOLIFE, the stated operator for the PROFIT BLOOD BANK, is owned by a Japanese Pharmaceutical Company (Takeda) operating in 70 countries worldwide. Currently BIOLIFE is NOT licensed in the State. BIOLIFE will harvest local blood supply by paying $25 for each blood donation and selling it worldwide after processing at a substantial markup for $350 to $575. State Licensing requirements or the City CUP has no requirements restricting where the harvested blood can be sold by BIOLIFE. 1. Applicant is collecting plasma, not blood. BioLife is a subsidiary of Takeda. Takeda employs hundreds in Southern CA. BioLife will be licensed in CA prior to opening their first location. We have already completed an application for a business license in Moreno Valley, CA and will continue doing so at each location as they arise. Compensation amount is inaccurate. No BioLife Plasma is “sold”. BioLife Plasma is sent to a parent company, Takeda Pharmaceuticals, for treatments already cited and for use around the world. 2. BIOLIFE will become a competitor to the non-profit blood bank of the American Red Cross and LifeStream, each of which is located in San Bernardino. LifeStream provides blood to 80 California Hospitals and Medical Facilities in six Counties. Their website states local blood supply is very low, and they are in desperate need for blood. BIOLIFE will become a competitor to Red Cross and LifeStream, with the ability to “Pay”, fiercely harvesting blood locally and selling it for PROFIT worldwide. BIOLIFE must provide a study of their impacts to existing NON PROFIT BLOOD BANKS and to the local blood supply critical to this Community and the State. Approval of this CUP has major health impacts to the Community by reducing blood availability. 2. Not a competitor to blood banks because BioLife does not collect blood. Furthermore, BioLife, unlike blood banks, cannot collect plasma via “Bloodmobiles” or at churches or high schools. Donors must come to a BioLife facility. 3. BIOLIFE is a big and FOR PROFIT business. Currently BLOOD BANKS such as BIOLIFE are EXEMPT from paying SALES TAXES to the City and the State. Sales Tax provides revenue for City services, community schools etc. benefiting the Community. As a business in the City, BIOLIFE will receive City services including Police, Fire, Code Enforcement etc. without paying for any of 3. BioLife does not sell anything at its centers. Therefore, it cannot collect sales tax. BioLife pays donors who in turn pay sales tax on the monies that are generated by the BioLife facility (approximately $3M), most of which will be spent in the local economy. Also, BioLife will pay property taxes per Lease terms. Finally, the employees of BioLife will be making purchases and paying sale taxes. It 2 these services and will not contribute to any Community facilities for betterment of the Community including schools, parks, street maintenance, etc. Local TAXPAYERS will be subsidizing BIOLIFE. This financial burden and impact should be reviewed by BIOLIOFE. CUP does not address these impacts. is anticipated that they will generate a large amount of sales within the Shopping Center since employees typically shop and solicit local businesses and restaurants. Those sales will generate sales tax revenue for the City. 4. BIOLIFE states that they will be providing jobs and donor compensation of $ 3 million annually. After processing the blood at an unspecified facility, BIOLIFE would generate a sale of $42 million to $69 million annually from selling the blood that is harvested for $3 million at the City. NO SALES TAX will be paid to the City from the sale of the processed blood. How does this substantial profit benefit the Community? 4. Again, BioLife does not collect blood nor does it sell plasma. 5. CUP Applicant is not BIOLIFE. There is no guarantee that this BLOOD BANK will be operated by BIOLIFE. Applicants are the property owner and a construction company from Wisconsin. Once this CUP is approved this space can be marketed to anyone to operate as a BLOOD BANK. Many Communities do not want for PROFIT BLOOD BANKS due to their competition with NON-PROFIT blood banks for scarce resources which will be sold outside of their community and the financial burdens they bring that would be borne by the Community. FOR PROFIT BLOOD BANKS are free to stipulate what they would pay to donors to buy the blood and can decrease or increase the payment as they see fit to maximize their profits. With an approved CUP this space can be marketed to anyone for an extensive profit. 5. BioLife has an executed Lease to operate at this location.