Tagged: film industry

Lots of news packed into this week's Artpod!

We learn about Michigan's burgeoning garment industry, and we get an update on how one of the state's biggest movie studios is doing (hint: not too well.) Plus, we talk with the director of the new documentary, After the Factory.

A Michigan movie studio that opened just ten months ago is in default on an $18 million state-issued bond.           

Raleigh  Studios made a big splash when it opened in Pontiac last March, with its seven sound stages and state of the art facilities. But now the movie studio can no longer meet its debt obligations, and will not make a $420,000 payment due Feb. 1.

"The movie studio is in default of that payment," explains Terry Stanton, communications director for the Michigan Department of Treasury. "But the bonds will not be in default, since the State of Michigan Retirement Systems is obligated to make those payments."

The money will come out of the retirement funds of public school and state employees, police and judges. 

The state of Michigan starts 2012 with a new incentive for film and television productions. But people in the industry in Michigan fear the new incentive will not attract the volume of business they need to stay employed.  

Mark Adler is the director of the Michigan Production Alliance. He said many film people have already left the state of Michigan to find work. 

“The people that are players…that are keys…that we need…here in Michigan…were grown here…have sought work elsewhere," said Adler.  

A new film-incentives program would give money to film and video game companies under a proposal approved by the state Senate.

Republicans have been looking for a new way to attract film companies to Michigan.

A tax-credit program created by Governor Jennifer Granholm was largely unpopular with the GOP.

Republican state Senator Mike Kowall says he a grant-based system for funding the film industry could still attract big-name productions to Michigan.  

He says the amount of money the state appropriates for the film industry may become a contentious issue down the road. But he says it’s important to get a system in place now that will keep the film industry interested in Michigan.

 “When you go down into these studios and you see not only how many people are there but the caliber and they’re from Michigan – they’re Michigan kids, they’re people that maybe moved to California and had the opportunity to move back and they grabbed it, said Kowall.

Senate Majority Leader Randy Richardville has said he would like to see as much as $100 million budgeted for the film incentives program.

If the Legislature approves the new incentive program, lawmakers will still have to decide how much money to budget for the film industry. The state Senate is expected to vote on the film-incentive program proposal tomorrow.

Michigan’s film industry will take center stage before a state Senate panel tomorrow.

The Economic Development Committee is expected to discuss a proposed new funding structure for rewarding film companies that want to shoot in Michigan.

Senate Majority Leader Randy Richardville said a generous film tax-incentive program under Governor Jennifer Granholm’s administration was not sustainable, but he said it helped initially attract the movie industry.

“We got a lot of attention by bringing Hollywood here, so to speak, now we’re going to spend a lot less on famous actors and big names and more on providing credit if you’re shooting here in Michigan, [and] if you have a Michigan studio,” said Richardville.

Richardville said film companies want to work in Michigan, but he said many feel the state forced them out when it scaled back its once-generous incentive program.

“You talk to producers, you talk to directors, you talk to movie makers that have been all around the country – they really like Michigan, they’re excited to come back to Michigan. And even the film that we lost recently, I heard a lot from the companies involved that they were very disappointed because those up close wanted to stay in Michigan and film Iron Man 3,” said Richardville.

Governor Snyder approved a less aggressive, $25 million grant program for film projects, but the state Film Office stopped taking applications earlier this month, saying there were no rules for projects to qualify.

The Richardville legislation would put those rules in place.