Article by Julie Hinds of The Detroit Free Press

Less Interest In Michigan With Film-incentive Limits, Report Shows

By Julie Hinds

Detroit Free Press

George Clooney's "The Ides of March," partially shot in Michigan in 2011, was one of the last big-name films approved for state incentives before the changes.
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George Clooney's "The Ides of March," partially shot in Michigan in 2011, was one of the last big-name films approved for state incentives before the changes. / REGINA H. BOONE/Detroit Free Press

A just released semiannual report from the Michigan Film Office shows the impact of last year's shake-up of the state's film incentives.

The report reveals a nearly two-thirds drop in applications during the latter half of 2011 as compared to the same time frame in 2010.

Also mentioned: Three projects withdrew their applications or supplied insufficient information, including one with an anticipated $90 million in Michigan spending. It is a Steven Spielberg film called "Robopocalypse," according to sources in the local film community.

In February, Gov. Rick Snyder announced plans to revamp the incentives. He proposed limiting the previously uncapped program at $25 million annually, a figure that became official later in the year.

The new report's numbers look like this: From July 1 to Dec. 31 of 2011, 16 productions applied for the film and digital media incentives. Compare that to the same time frame in 2010, when 42 productions applied.

Four projects were approved for incentives in the latter of half of 2011, for a total of $915,000 in credits on about $2 million in estimated in-state spending. In the final six months of 2010, 26 projects were approved for a total of nearly $66 million in incentives on more than $168 million in in-state spending.

One factor explaining the lower numbers in the second half of the year: By early October, the state had already awarded everything but $427,000 of the available $25 million.

The "Robopocalypse" thriller, set to be directed by Spielberg, was described in the report as an untitled Fox-Dreamworks project. It projected Michigan expenditures of $90 million and was seeking $24 million in film incentives -- nearly equaling the $25-million cap that the film office abided by for most of 2011.

In October, Senate Majority Leader Randy Richardville, R-Monroe, hinted during a local radio interview that good news might be coming soon on a Spielberg project. Speaking to the Free Press in December, Spielberg said he couldn't publicly discuss where the film would be shot, but that he was open to places with film incentives.

The Michigan Film Office's report also revealed that "Iron Man 3," which wound up choosing North Carolina after its Michigan deal fell through, applied for nearly $34 million in credits on $102 million in anticipated spending.

The Free Press reported in 2011 that the state had matched North Carolina's $20-million offer to "Iron Man 3," but the deal was contingent on future legislative approval, while it was guaranteed in North Carolina.

Also lacking sufficient information or withdrawing was the reality show "All-American Muslim."

Four projects are pending, including "Cadillac High," which has projected spending of $27 million. A local film source says it's a feature about the real-life 1975 visit of the rock group Kiss to the city of Cadillac.

Overall last year, some 85 productions applied for the state's film incentives and 22 projects were approved (including two small-budget holdovers from 2010). That brought the total of approved incentives to $24.7 million.

In 2010, there were 119 applications, and roughly $146 million in approved incentives for the 62 approved projects that moved forward.

Michigan Film Office director Carrie Jones said Monday that the semiannual report figures were a snapshot of a specific time period and shouldn't be considered a forecast for 2012. This year, quarterly reports will be issued by the office.

"I think that our next quarterly report will show a very different story," said Jones, who expects the state will have a busy year in films.

"We've got world-class infrastructure, we've got a skilled and talented work force and we've got diverse locations. We also have a competitive incentive program. Michigan still is on the map for producers," said Jones.

The chairman of one of the big groups fighting for the film incentives doesn't think the numbers are necessarily an indicator of a new reality, either.

Kirk Miller of Michigan Film First, an industry coalition working to preserve and grow Michigan's film industry, said an unclear approval process had a big impact in 2011. Last year, filmmakers complained the process was vague and done behind closed doors.

"The way the MEDC was interpreting the legislation was a real turnoff to the West Coast," said Miller. "When people are budgeting their film, they need to know what Michigan offers, and they didn't know what Michigan offered, because it was different for every film."

Legislation passed in December that outlines the process for distributing the revamped incentives should help allay the uncertainty, according to Miller. He said Michigan needs to get the word out again that it's open for film business.

Miller also cited recent news that the state's budget is healthier than previously thought. "We are hoping the state will see the benefit of what the film industry had done for the state and give us more money to use."