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Construction on Mass. film production center could start next year

By Michael Norton
STATE HOUSE NEWS SERVICE
July 23, 2011 12:00 AM


BOSTON — The state's economic development agency has agreed to enter into negotiations over a sale price and tax incentives with a development company that plans to build a 600,000-square-foot, state-of-the-art film and television production complex in Devens.

After declining to release details following a unanimous board vote a week ago, MassDevelopment officials on Thursday elaborated on plans to move ahead with MJM Development LLC of Andover, which plans to build the studio complex, including four 18,000 square foot sound stages, over 10 years.

The deal hinges on the development team, helmed by former hotel industry executive Michael Meyers of Andover, purchasing two lots encompassing a 28-acre site along Jackson Road, the main access road into Devens, a former military installation in north central Massachusetts that is home to about 75 businesses.

The project's first phase is expected to include the four sound stages, a mill, production support offices, a storage building and other support areas totaling 126,000 square feet and expected to cost $30 million.

At full build-out, the project will include 600,000 square feet with eight sound stages at a cost of $104 million. The full project is expected to create 44 permanent jobs and another 800 to 1,000 jobs when the facility is fully leased, according to a memo to the board from MassDevelopment chief Marty Jones.

If details are worked out, the first phase of construction could begin next year and the first facilities could open by the end of 2012, according to a MassDevelopment official.

Meyers told State House News Service on Thursday that he is working on the project with local businessmen who wish to remain anonymous. The team includes real estate developers and equity investors, film industry consultants, studio operators and designers, according to officials familiar with the project.

While Meyers said the project will be fully funded through private equity, MJM and MassDevelopment have also agreed to enter into talks on tax increment financing valued at $5 million over 20 years, with clawback provisions, to reduce property taxes on improvements made in connection with the project.

Meyers acknowledged a "long road to travel as we start our due diligence, engineering and permitting" but expressed confidence about moving the project forward.

Under state law, MassDevelopment is the designated public agency responsible for redevelopment within what is known as the Devens Regional Enterprise Zone. MJM Development, which was formed to build the studio complex, hopes to provide a facility capable of producing feature and documentary films, TV programs and commercials.