Friday, May 28, 2010

Iowa Is Left Behind In The Dusty Pollen




By Amy Hotz
Amy.Hotz@StarNewsOnline.com

Published: Thursday, May 27, 2010 at 4:33 p.m.
Last Modified: Thursday, May 27, 2010 at 4:33 p.m.

( page 1 of 3 )

Talk has turned into action regarding North Carolina's film incentives legislation.

See this link: http://www.starnewsonline.com/article/20100527/ARTICLES/100529578/1004

Professor Quirmbach: Pay Attention!

By Leon Stafford

The Atlanta Journal-Constitution

Stay seated for the credits for the movie "Killers" next weekend and you'll see why Georgia Films officials love Hollywood these days.
Enlarge photo
Movie poster for "Killers," a film made in Georgia.
Lionsgate Movie poster for "Killers," a film made in Georgia.
Enlarge photo
"Drop Dead Diva" (2009): Peachtree City and Decatur have been the filming locations for this hit Lifetime fantasy series starring Brooke Elliott and Margaret Cho.
Guy D' Alema/Lifetime Television "Drop Dead Diva" (2009): Peachtree City and Decatur have been the filming locations for this hit Lifetime fantasy series starring Brooke Elliott and Margaret Cho.
Enlarge photo
"ATL" (2006). A coming-of-age story starring T.I.
Guy D'Alema "ATL" (2006). A coming-of-age story starring T.I.
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The state's logo appears at the end of the Ashton Kutcher-Katherine Heigl comedy, shot last year in Atlanta.

"A lot of people actually do sit through the credits for things like extras, bloopers," said Stefanie Paupeck, a spokeswoman for the Georgia Department of Economic Development, which oversees the film division. "It's basically a ‘Made in Georgia' tag."

It's a branding effort that lasts only seconds, but officials said it has helped film investment in the state grow from $70 million in 2004 to $770 million in 2009.

That growth is a boon to anyone connected to movie making, whether an actor or a caterer, Paupeck said. About 25,000 Georgians are estimated to work in the entertainment industry.

Erica Backus, a spokewoman for the Savannah Area Convention & Visitors Bureau, said ‘The Last Song" helped fill hotel rooms, restaurants and shops last year, a time when tourism was down.

Georgia created the promotion in 2008 when it set up income tax incentives to attract Hollywood productions. Films with a budget of at least $500,000 get a 20 percent a tax credit for filming in the state, with an extra 10 percent if the state's logo is used in titles or credits.

The credits also are offered to TV shows, as well as video game and animation productions.

Tim Mescon, president of Columbus State University and a branding expert, said few people stick around to see any credits, much less the very last one. But he understands the motivation. With every state in the country and Canada offering film production incentives, it's imperative to find a way to stand out.

The state said the tax credits have helped attract a bumper crop of movies, including "Why Did I Get Married Too," "The Blind Side," "The Crazies" and "The Joneses." TV series include "The Vampire Diaries" and "Drop Dead Diva."

Films currently in production include the third in the "Big Mama's House" series and new episodes of "Drop Dead Diva."

Thursday, May 27, 2010

From The Hawk Eye

Thanks, Hawk Eye, for the following article....:

Hazell's films moving forward
Local filmmaker looking for investors in 12 projects.

By CHRISTINIA CRIPPES
ccrippes@thehawkeye.com

"Hardship to Hope" is not just the name of a television show Jon Hazell hopes to produce in Burlington in the coming months. It also describes Hazell's experience with the Iowa Film Office during the past eight months.

After the film office's tax credit program was suspended last September due to allegations of mismanagement of the incentives, many production company's like Hazell's were left in limbo.

Several rounds of negotiations later and Hazell finally has a contract with the state of Iowa to proceed with all 12 projects he had pending. He first received notification in November 2009 that he could proceed with two. However, his business model required all of his projects to go through so he can start a full-fledged film studio in Burlington.

"What we're looking at doing is becoming a working studio here in Iowa, which of course, most people don't believe can happen, but we're looking at doing it," Hazell said.

His contract with the state gives him two and a half years to complete all 12 projects, though he may be granted an extension if he shows a good faith effort. He received a contract for tax credits for five feature films, four documentaries and three television series. He will receive the credits after production is complete.

"If this all goes, we will be really the only show in town," Hazell said last week. While Hazell is not the only Iowa filmmaker who has been negotiating with the state to fulfill contracts, he had submitted and received a contract for the most projects.

Show me the money

Before the projects can get fully under way, Hazell and his Iowa Production Network are seeking investors on all 12 endeavors. IPN is an overarching group for five companies, including Hazell Productions, that are involved in the effort, two of which are faith-based non-profit organizations.

Hazell estimates a combined $80 million cost for all of the projects, but he has tiered investment options.

"We will give presentations to anybody that wants to listen further about this," Hazell said.

His main priority at the moment is to locate investors in Burlington so he can keep the money local, rather than turning to one of Iowa's larger communities. Hazell hopes to be able to start filming efforts next month.

"The reality we're looking at here, and it's scary ... the next two and a half years could be one of the most hard-working, exciting time periods I have ever had in my life," Hazell said. "It's a huge challenge, but it's totally exciting."

Although the initial producers who were granted state tax incentives were offered a 50 percent reimbursement for all costs, that has been scaled back to a total of 25 percent for production and investment. Hazell's business plan, though, also includes taking advantage of federal tax credits and, more importantly, turning a profit with his projects.

With a background in accounting, Hazell also realizes the importance of spreading the risk. That's why he is looking for an investment in all 12 projects so if one is wildly successful and a few others less so, investors can still turn a profit.

Confidence builders

Hazell's initial efforts once he secures funding will be with two documentaries, "The Last Champion" and "A River Nation," for which most of the filming is already complete. He calls those efforts "confidence builders" because they will allow investors to see marketing of the first projects within a couple months of getting started.

From there, Hazell has laid out a timeline for completion of the projects by the end of 2012. He will use an assembly line process, which includes the hiring of 30 to 45 full-time, salaried staff members, as well as additional contracted labor, during at least the next two and a half years to streamline the filming and editing.

He believes having the same people working together for a common cause will inspire confidence in each other and create a drive to complete the work as scheduled.

Because one of the new requirements of the contracts is that the projects be made by Iowa-based companies, Hazell also sees an opportunity in working with other out-of-state filmmakers who may want to use his local studio to complete their projects.

Aside from jump-starting a new industry in southeast Iowa, Hazell foresees additional benefits to Burlington. He believes it will help combat youth leaving the state if they have creative, high-technology jobs in their own backyard, as well as offering a tourist destination for people who want to see the real-life scenes of where the films were shot.

An Iowa native, Hazell believes good things are coming to Burlington, and not just in the film industry.

"What this, I think, adds is this adds a new element to economic development here to the community; you can call it a creative economic development industry," Hazell said.

Lost opportunities

Hazell is hesitant to guess what will happen to the future of the film incentive program in Iowa. He's obviously focused on getting started on the huge job in front of him.

He said much will depend on the outcome of the 2010 election, as current Gov. Chet Culver and lawmakers have put the program on hold until 2013. Hazell said many are hoping that whether under new leadership or not, the state lawmakers can restart the program sooner.

He said the fear is that during the hiatus, many film companies will decide to locate or shoot productions in other states that have a working tax credit program.

"The paradox is Iowa in one year had its best reputation ever ... then also had paradoxically its worst because of the scandal," Hazell said, adding that nearly 40 productions were filmed here in 2009 including four feature films in southeast Iowa.

Wednesday, May 26, 2010

Maine Sees The BIG PICTURE as GOV Signs Film Bill


While creative Iowans suffer from unemployment, Maine takes the ball and looks towards a promising film future. The following link shows Maine's governor signing a film bill, with projects already chomping at the bit...

Iowa: What's Wrong With This Picture
Maine: Seeing The Big Picture

http://vimeo.com/11838909

Tuesday, May 25, 2010

Sunday, May 23, 2010

Disney Films Site, A Highly Relevant Article For IOWA


(Photo: depiction of current Iowa Film Project Condition)

Louisiana Film Tax Credits Create Needed Economic Punch

May 22, 2010 by admin
Filed under Disney Films Articles

Louisiana has always has a unique mix of unique culture, great food and wonderful history. But in recent years the state has thrown financial incentives into the “gumbo” as well. These film tax credits have provided the “spice” that has propelled Louisiana to one of the top filming spots in the world.


According to state officials, 2008 film production in Louisiana has already outperformed 2007 figures both in terms of total dollars and number of projects. The news couldn’t come at a better time for Louisiana – a state that has worked hard to find ways to replace the losses in tourism that has hurt the state in the post-Hurricane Katrina era.


Some key facts about Louisiana’s film industry:

More than $2 billion in productions have been filmed in Louisiana since 2002

The total direct impact to Louisiana’s economy is $1.48 billion

The percentage of film budgets spent in Louisiana has risen from 33% in 2005 to 87% for 2007

Film-related jobs in Louisiana have grown at a rate of 23% per year

Over 50 projects were completed in 2007 statewide

An estimated 65 projects will be completed in 2008

Source: Louisiana Film Office


Success of Key Tax Incentives


The film industry sat up and took notice in 2002 when the Louisiana State Legislature enacted an aggressive film tax incentive program. Louisiana’s film investor tax credit program offers out of state production companies a tax credit equal to 25% of their spending in Louisiana during film production. The labor tax credit offers an additional 10% tax credit based on the amount of Louisiana labor employed during the production.


So what has been the impact of these film tax incentives? Without question the lure of tax credits has helped grow the entire film industry in the state. From private investments to sound stage and studios – the impact is being seen all over the state. Many local colleges and universities have already added specialized training programs to satisfy the growing workforce demands


Music and Television Productions


In addition to studio film productions Louisiana’s tax credits have drawn in music and television shows such as:

Disney’s “Imagination Movers”

“Fox’s “K-ville” shot its first year’s pilot program at some of New Orleans more popular tourist settings last fall.

The Subway “Odd Couple” commercial staring New Orleans Saints star Reggie.

Warbirds, a Sci-Fi channel original movie was shot in the Baton Rouge area and recently made its worldwide television premier.

Key Infrastructure Developments


Not to be overlooked in the success of this young industry is the 40% infrastructure tax credit which has encouraged the development of much needed production support facilities. These new facilities allow film production studios to conduct more of their work in the state thus maximizing their “Louisiana spend.”


Turn Key Production Partners


FBT Film and Entertainment (www.fbtfilm.com) is the only provider of Louisiana film incentive programs affiliated with a bank. Through our relationship with First Bank and Trust we are able to offer producers a full range of support services including:

Underwriting films, studio projects and evaluating gap financing

Private equity placements

Budget analysis to optimize potential tax credits

Banking relationships and deposit services

Obtaining state certifications for credits

Maximizing the value/sale of tax credits

Saturday, May 22, 2010

Film Producers Win Important Battle Here!!!


The following is from today's Des Moines Register, by Lee Rood...
Film producers can keep data secret

By LEE ROOD • lrood@dmreg.com • May 22, 2010


A group of 11 film producers who fought to prevent the state from releasing financial information about movies made in Iowa won a civil lawsuit Friday in Polk County District Court.

The case sought to resolve whether a state agency can release information to the public that it previously indicated could be kept confidential.

The producers filed the lawsuit in the wake of an open-records request by The Des Moines Register last fall to Iowa's Department of Economic Development. Judge Artis Reis decided the producers would suffer "incalculable" financial harm if the state released budget forms completed by filmmakers that it previously indicated could be kept confidential.

"How can the state of Iowa expect to attract new businesses if the businesses cannot rely on the state's word to keep confidential information which, if released, could harm the businesses?" Reis wrote in her ruling. "Public curiosity cannot override the public interest in continuing economic development for the state."

The Film, Television and Video Project Promotion Program has been suspended until 2013 after allegations of widespread mismanagement and abuse of state tax credits by filmmakers. A criminal probe begun last year is ongoing.

IDED wanted to release the summary budget forms as a compromise to the Register's request for detailed information about expenses claimed by filmmakers seeking tax credits. The summary forms did not include individual filmmaking expenditures, but they did indicate generally how much moviemakers spent on different categories, such as talent, camera work and locations.

Filmmakers could request to keep that information confidential on the form.

Jonathan Wilson and Scott Brennan, attorneys for the film companies, argued successfully that their clients were guaranteed "by contract and by statute" that certain expenses and investor information would be kept secret.

State attorneys for the Iowa Department of Economic Development and the Register, which joined in the suit, argued the records were already public and that the serious problems surrounding the taxpayer-backed program demanded transparency.

"It is outrageous the state can keep this information secret," Register Editor Carolyn Washburn said. "Such secrecy gives cover to people who want to take advantage of Iowa taxpayers. That does not assure the good, clean government Iowans like to stand for."

Not all producers who made movies in Iowa during the heyday of the best-in-the-nation incentive program in 2008 and 2009 objected to release of the financial information.

The release of forms tied to those producers' films earlier this year led the Register to seek expert analysis of costs claimed. The newspaper published an investigative report in April using that information that identified additional questionable spending not previously identified by state investigators.

Jeffrey Thompson, an assistant attorney general who argued the state's case on behalf of IDED, alleged during a court hearing that some filmmakers were seeking to shield the information from public scrutiny because it was embarrassing or incriminating.

One of the producers involved in filing the suit was Polynation Pictures. Two principals in that company, owner Wendy Weiner Runge and partner Mathias Saunders, have been charged with first-degree theft for allegedly inflating filmmaking expenditures used to obtain state tax credits to help make the film "The Scientist."

Two other companies are led in part by Kip Konwiser, producer of the unmade movie "Blackbeard." Konwiser's proposed budget for that movie quadrupled from about $5 million to $20 million while he was gearing up for filming last year in Des Moines.

He and fired film chief Tom Wheeler agreed to the increases without the knowledge or approval of state economic development board members, or union workers whose pay hinged on the size of the movie, the Register found.

As part of her ruling, Reis awarded the producers costs and attorney fees.
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Bob Brammer, a spokesman for the attorney general's office, said Friday: "We are considering our options about next steps to take in this situation."