he high cost of living and doing business in the Bay Area has lead to the exodus of another business from Menlo Park, and about 159 employees will lose their jobs.
PharmChem Inc., a business that specializes in testing people to detect illegal drug use, must leave its headquarters at 1505A O'Brien Drive by May 31, said David Lattanzio, the company's vice president and chief financial officer. PharmChem is preparing to move to a new headquarters in Haltom City, Texas.
"Everything here is too high," said Mr. Lattanzio, who said that PharmChem could not extend or renegotiate its lease at "reasonable rates."
He noted that his company tried to relocate to the East Bay, but also found real estate leases too high in that area.
Mr. Lattanzio added that the cost of living in the Bay Area has meant that PharmChem has had to pay its staff higher wages than it would have in other areas of the country, and these costs have hurt the company's ability to compete with rivals. Employee turnover has also been high in the Bay Area, he said.
In addition, Mr. Lattanzio said that PharmChem must now worry about having its electrictiy shut off during blackouts.
"This reinforces our decision to relocate to our new Haltom City facility," said Joe Halligan, company president.
Mr. Lattanzio said that about 180 people are employed by PharmChem in Menlo Park, and about 159 will be left unemployed by the move. The company also operates forensic drug testing laboratories in Fort Worth, Texas, and London, England.
Mr. Lattanzio said that his firm is typically hired by businesses that employ drivers and need to ensure they are not using illegal drugs. He said that PharmChem's clientele includes Sears Roebuck and Co. and San Mateo County.
