GenPhar site 'red-tagged'

MOUNT PLEASANT -- The town has ordered work halted on the 50,000-square-foot, $33 million GenPhar building because it says the company must hire an architect to prepare interior design plans.

Dr. John Dong, GenPhar president and chief executive officer, indicated in an interview that he will abide by the town's rules, but said the project is very behind schedule because of them.

He said the building has been "red-tagged" twice, first halting work for three months and now for more than 10 days.

The town stopped work on the building Jan. 22.

"We have been having a tremendous amount of difficulties with the town of Mount Pleasant. They completely stopped us from working in the building," Dong said.

At issue for the town is compliance with the law, said T. Lee Cave, the building official who manages inspections and permitting.

"Dr. Dong feels that he can build a building and provide plans later. He doesn't understand that he has got to have a designer," Cave said. "It's come to a head. It has to stop. We've been trying to help him without putting ourselves in jeopardy of being in violation of the law."

Dong said that an architectural firm told him it would cost $260,000 to resolve the design plan issues. GenPhar is funded by private investors whom Dong declined to name.

Time is crucial for GenPhar because it is competing for federal biodefense contracts to manufacture vaccines for deadly diseases such as anthrax, Ebola and Marburg, Dong said. If the building is not up to speed by March 1, he said, the company could lose a $300 million contract. Because of construction delays, GenPhar already has lost out on $500 million in potential contracts, he said.

"Think about the pressures I'm facing, the choices I'm facing. Now we've gotten stuck at the building department," Dong said. "Honestly, I don't know what to do."

Dong met with Mayor Billy Swails and other businessmen to discuss the situation. Swails said that Dong had an architect for the shell of the building and is required to have one for the interior.

"Until he gets that set of plans we can't go any further," Swails said. "He's a nice guy, but he's got to abide by the rules."

Dong said he had a productive meeting with the mayor but the matter wasn't entirely settled.

"We probably will hire an architect," Dong said. "The mayor was very positive because of the economic impact of the project."

GenPhar would employ up to 300 people at its new facility, Dong said. It currently operates out of a small building off Long Point Road. GenPhar vaccines for Ebola, Marburg and a combination of Ebola and Marburg proved 100 percent effective in Army animal studies, and human trials of those vaccines are planned in collaboration with the Army, GenPhar has said.

GenPhar's new headquarters are on South Morgan's Point Road behind The Market at Oakland shopping center. The operation poses no public health threat because live viruses are not used in the creation of any of the vaccines made here, Dong said.

The new GenPhar headquarters were made possible by town, county and state government incentives. The town, Charleston County and Mount Pleasant Waterworks shared the $60,000 cost for roads, water and sewer at the new GenPhar facility. The state provided tax breaks and job development credits. South Carolina Electric & Gas and AT&T chipped in utility tax credits.