Stem Cell Czar and Development Mogul: A Match Made in California

Posted by Jesse Reynolds June 29, 2007
Biopolitical Times
Large land development projects in the US are often dirty enterprises. The confluence of enormous financial stakes and numerous obstacles, both in regulation and public opinion, often leads to unseemly backroom machinations. More than once, the public has been hoodwinked by elected leaders and media scribes who argue that a given development will benefit all. But too often, only an elite few come out on top - often at the taxpayers' expense.

In many ways, recent revelations about a large-scale development of farmland near Sacramento are typical. The most prominent - and powerful - developer in the region, Angelos Tsakopoulos, wants to build on 2800 acres of farmland that are now protected as a greenbelt. He's lavishly donated to regional and state politicians. He's hired several former city and county officials, as well as a top-flight PR agency, to convince the Yolo County Board of Supervisors. He's treated Board members to informational dinners at the posh Sutter Club. And he's promising to include a "public good" in the project as well.

In past attempts, this has included a proposed sport arena and even a university. But now, it's a stem cell research center.

To top it off, he's got Robert Klein on his team. Klein has a critical triple role: He is chair of the state's $3 billion stem cell research program, he chairs a private stem cell research lobbying organization, and he continues to lead his land development company - the endeavor in which he made his millions. Tsakopoulos's $125,000 donation to Klein's lobbying group presumably helped.

This particular development, regardless of its merits, highlights two very different issues. First, the developers appear to believe (perhaps correctly) that the public perceives a new stem cell research center as a public good on the order of an educational institution or sports arena. It implies clean, high-paying jobs, development of medical treatments, and a west coast taunt to the Bush administration. Is another research center justified? I don't know. But there's no shortage of existing institutions clamoring for state funds for facilities development.

The second issue is the egregious nature of Robert Klein's conflicting roles. His lobbying group gets a hefty donation, and his imprimatur hints that the new center would be a likely magnet for public financial support. And who knows if he's got his own finger in the pot, given that his business dealings are obfuscated via dozens of corporations and holding companies [PDF].

Meanwhile, he sits as not only a public servant, but as one with significant influence over how billions of public dollars are spent. Although he's promised not to profit from biotech while he's chair of the state stem cell agency, does he consider an investment in the land development part of this vow? And how would the public ever know?

Regardless, as we've said before, Klein needs to decide whether he is a lobbyist or a public official. He can't be both.