New, expanded Metro Detroit movie studios to add thousands of jobs

[LMich]

I thought since every city and their momma wants to be "Hollywood (insert geographical direction" that this would be suitable to post, here.

Now, there is always talk about this all being a race to the bottom, as states offer better and better incentives, but what I wanted to know is if anyone thinks that actually getting a studio constructed will be enough of an advantage so as to make the film incentive race harder to continue? You know, if after investing so much into the renovation of a facility that it becomes harder to still these things away?

New, expanded Metro Detroit movie studios to add thousands of jobs

Louis Aguilar / The Detroit News

February 3, 2009

A former Pontiac auto plant and the defunct MGM Grand Casino will be converted into film production studios that will create 4,000 new direct jobs in Metro Detroit, boosting one of the state's few fast-growing industries.

Gov. Jennifer Granholm will formally announce plans for the news studios during her State of the State address tonight.

An $86 million digital animation and visual effects studio to be called the Detroit Center Studios will set up shop in the former MGM Grand Casino downtown, and is set to open by the end of the year. In Pontiac, a $54 million film production studio called Motown Motion Picture Studios will be built at General Motors Corp.'s former Centerpoint plant, according to Granholm's spokeswoman Liz Boyd. Granholm also will announce a $900,000 expansion of video and computer gaming company called Stardock Systems Inc. in Plymouth.

The Detroit Center Studios is a partnership between Wonderstruck Studios LLC and SHM Partners of Los Angeles, and expects to create 400 direct jobs. The studio should begin operating this year, Boyd said. Terms and financing were not released.

Motown Motion Picture Studio is expected to create about 3,500 direct jobs. The studio will be operated by Raleigh Studios, a Hollywood production firm, and has the backing of billionaire developer Al Taubman and local developer Linden Nelson, who will be chairman and CEO of the new studio.

"The idea started in June in my kitchen," Nelson said, who is also CEO of Nelson Ventures. "I'm just trying to bring jobs to Michigan, man."

The Stardock expansion will create 53 new direct jobs, state officials said.

The state film agency has been working on the three deals for months, and contends they would create the infrastructure to support what has become a $100 million industry since April 2008, when Michigan passed the most aggressive film industry tax incentives in the nation.

"It's a game-changer," said Anthony Wenson, CEO of the Michigan Film Office, the agency that promotes Michigan's film industry, during an earlier interview with The Detroit News. "We truly (will) have a year-round industry. We can see a television series shot here. We can provide space for filmmakers to build large-scale sets. We can greatly expand our offerings to the video and digital media community."

Even though films and TV productions are being shot in Michigan locales, almost all of it is outside work that shuts down during winter months. Interior studio shots and all post-production work leaves the state, meaning Michigan misses out on the largest opportunities for work.

Since the passage of the tax incentives, 25 films have been produced in Michigan -- compared to just six in the year before the incentives. One of them is in theaters now -- Clint Eastwood's well-received "Gran Torino." A total of 70 projects have been approved by the state. Since the incentives went into effect, the film industry has created $100 million in revenue. In 2007, before incentives, the film industry generated $4 million.

The incentives give producers 40 cents back for every $1 they spend on production, double Michigan's old rebate, and an additional 2 percent rebate if the project is shot in certain Michigan communities. The new law also gives a 25 percent tax credit to companies investing in new film and digital media studios -- something that would apply to the new studios. Another incentive covers 50 percent of on-the-job training expenses for state residents working as crew members.

You can reach Louis Aguilar at (313) 222-2760 or [email protected].

[LMich]

Seperate and more in-depth articles on the two new constructions:

The Detroit studio in the former MGM Grand Casino Building:

New special-effects studio to move into vacant MGM casino

By JOHN GALLAGHER • FREE PRESS BUSINESS WRITER • February 3, 2009

Fresh from the news of a new movie studio to open in Pontiac, the State of Michigan today announced that a new high-tech special effects studio will operate in the old MGM Grand temporary casino property in downtown Detroit.

The new venture, Wonderstruck Studios LLC, will invest $85.9 million over five years and create an estimated 413 jobs with an average weekly wage of $1,729, Gov. Jennifer Granholm and the Michigan Economic Development Corp. said today.

Wonderstruck will primarily produce computer-generated visual effects and animated content for feature films, video games, television and commercials.

The company said it would be the first of its kind in Michigan. Wonderstruck said it would deliver full-scale Hollywood productions from inception to state-of-the-art computer generated 3D software. Its content is mostly targeted toward families and young audiences.

The project fits neatly into Detroit’s hopes to nurture a “creative corridor” in downtown Detroit that would lure young professionals in film, advertising, the arts and other professions that create intellectual content. Indeed, Wonderstruck said it has signed up several award-winning animators who have committed to moving to Michigan.

Since Michigan currently lacks many workers with the skills Wonderstruck needs, Wonderstruck said it was developing an intense training program for potential new Michigan employees.

The state also approved tax credits for Stardock Systems Inc., a software developer and publisher in Plymouth Township. The company will invest $900,000 to expand to allow for the development and implementation of a new PC game.

That project will create 53 jobs at the company.

And, the larger studio in Pontiac's former GM Centerpoint Truck Plant:

Pontiac film studio to bring jobs

BY JOHN GALLAGHER, KATHLEEN GRAY and CHRIS CHRISTOFF • FREE PRESS STAFF WRITERS • February 3, 2009

Michigan's bid to become a Midwest center of movie production is to get a huge boost today with the announcement of a Hollywood film production studio and talent agency opening shop in Pontiac.

Motown Motion Picture Studios, a new company, will open a $54-million, 600,000-square-foot studio and production facility at General Motors Corp.'s former Centerpoint truck plant and office complex in Pontiac, said Gov. Jennifer Granholm's spokeswoman Liz Boyd.

The project is expected to generate more than 3,500 direct and 1,500 indirect jobs.

The governor plans to announce the deal tonight in her State of the State address.

The Hollywood production firm Raleigh Studios is to operate the production site. A major Hollywood talent agency, Endeavor Agency, helped broker the deal.

The announcement marks the breakthrough the state had hoped to get since the Legislature and governor approved the nation's most generous incentives to lure filmmakers to the state. Since then, 37 films have been made in Michigan, including Clint Eastwood's box-office hit, "Gran Torino."

Mall developer Al Taubman is backing the project financially, along with Oakland County investors, including real estate developers Gary Sakwa and Linden Nelson.

Nelson said Monday night that the new company would work with the Cranbrook Educational Community, Lawrence Technological University, College for Creative Studies in Detroit and other local schools to train students for the film industry.

"It means that your children have a new opportunity, have a new thing that they can stay right here in Michigan. It opens all sorts of opportunities. ... Let's put Michigan back to work," Nelson said.

The new company is expected to receive tax breaks this morning from the Michigan Economic Growth Authority aimed at luring a film industry to the state.

GM spokesman Dan Flores could not confirm details but said that a deal was in the works for the Centerpoint campus.

"GM is in advanced discussions with an interested party regarding the sale of various properties on GM's Pontiac Centerpoint campus," Flores said.

The campus, located to the southwest of the junction of South Boulevard and Opdyke, formerly housed a Pontiac truck assembly plant and, more recently, GM office workers. The campus is now empty.

It is unclear how soon the movie enterprises could move in, using existing buildings. A MEGA spokesperson said work could begin in 60 to 90 days.

There has been speculation for months about possible studios coming to Michigan, including in Allen Park, Muskegon and Ford's shuttered Wixom Assembly Plant.

Although the costs to taxpayers of the financial incentives have been somewhat controversial, Boyd said the new production studio will do what the incentives were designed to -- attract a full-time film industry to Michigan.

Raleigh Studios is an independent production company with sound stages in Hollywood and Manhattan Beach and Playa Vista in California, Budapest and Baton Rouge, La. Studios typically employ carpenters, electricians, caterers, production crews, seamstresses and makeup artists.

"You have to feed the crews," said Mark Adler, director of the Michigan Production Alliance. "And here's a new one for you, everybody's green. We use gypsum and lumber and an enormous amount of plastic and there's a business in hauling that stuff away for recycling."

Local film professionals were delighted with the news, said Jeff Spillman, managing partner at S3 Entertainment Group, a Ferndale production company involved in nine of the films produced in Michigan.

"This will be the first studio to be formally announced for the state," Spillman said. "This will be great for business, because what else is happening in our state that's employing people?"

Coincidentally, the Michigan Film Office and the Detroit Convention and Visitors Bureau are to hold a panel discussion and reception for more than 200 movie industry professional in Beverly Hills, Calif., as Granholm is making the announcement in her speech.

"We really have a terrific opportunity to set the record straight with people in the production community and get them up to speed on Detroit," said Chris Baum of the convention and visitors bureau. "I really don't have the details of any announcement, but it would be lucky timing in our case."

Tony Wenson, chief operating officer at the Michigan Film Office who also is attending the Beverly Hills forum, said he will be listening to Granholm's speech with great anticipation.

"We're hoping for further commitments to support this effort to diversify the economy," Wenson said.

The state's film alliance has grown from 60 to 160 members and classes have started in four community colleges and three independent venues to train people to work in the film industry.

"I'm a video assist technician and I've worked on five or six films already," Adler said. "Overall, it's been a shot in the arm for everyone."

Contact JOHN GALLAGHER at 313-222-5173 or [email protected] or KATHLEEN GRAY at 313-223-4407 or [email protected]. Staff writers John Wisely and Julie Hinds contributed to this report.

I'm really excited that they are using existing vacant structures instead of new construction. It shows that all of the abandoned auto plants can have a new future outside of being reused by the auto industry.

[Jasonhouse]

On an aside, why did the casino die, exactly?

[LMich]

It's not dead; it moved into its permanent location practically across the street. All three casinos, downtown, started out in temporary facilities and were obligated to build permanent facilities. Of the three permanent facilities, only Greektown's Hotel Tower has yet to be opened.

MGM Grand Detroit

Here's the old, ugly-as-sin temporary site for MGM Grand that Wonderstruck will be moving in to:

1999 photo by MARY SCHROEDER/Detroit Free Press

Wonderstruck Studios LLC will operate in the old MGM Grand Detroit Casino temporary property downtown. It plans to invest $85.9 million over five years.

BTW, I'm particularly excited about the one in downtown Detroit because its geared towards animation, which seems like a more stable project. The one using the old GM Centerpoint Truck Plant in Pontiac sounds just massive (i.e. 600,000 sq ft) and harder to do.

[STLgasm]

Very cool!

[alexjon]

Oh darn, they AREN'T tearing down the American Legion post in Allen Park.

[ginsan2]

This is such a bizarre use of space.

I really wish someone could work towards saving the David Broderick tower. There's so much abandoned, empty space that is available. And that tower is my favorite

[hudkina]

Here's the new MGM:

javYliz

And a view of the old one from in front of the new one:

ellerbh888

[Jasonhouse]

Ohhh... Ok... I didn't know they were building a new one, but was like, damn how in the hell does a casino go out of business?

I agree that it seems like an odd use of the old space, but I say kudos for the creativity.

[LMich]

Well, it was bizzare to use the former IRS building as a casino in the first place, but I don't believe the one in downtown Detroit to be that bizarre. It's going to be an animation studio and also used for computer-generated effects, so it's not a conventional studio (as the average person would understand it) to begin with.

[hudkina]

Exactly. As long as they can fit a bunch of processors in there, it'll be fine...

[ardecila]

I think the tooth-and-nail competition by cities/states for studios will be good for the entertainment industry. It will decentralize filming locations from NYC/LA, getting a greater perspective into movies and including a much wider swath of America. I'm seriously tired of how many movies are set in LA, simply because it was convenient. NYC I have less of a problem with, since it has always defined American culture in a major way, and because most NY movies wouldn't work in any other city.

Gran Torino in Detroit, Benjamin Button here in New Orleans, and the Batman movies/Eagle Eye/Wanted in Chicago are examples of films increasingly dispersing across the country.

[hudkina]

We might also see less of retarded movies like "New in Town"...

[sjs2017]

Originally Posted by ardecila

I think the tooth-and-nail competition by cities/states for studios will be good for the entertainment industry. It will decentralize filming locations from NYC/LA, getting a greater perspective into movies and including a much wider swath of America. I'm seriously tired of how many movies are set in LA, simply because it was convenient. NYC I have less of a problem with, since it has always defined American culture in a major way, and because most NY movies wouldn't work in any other city.

Gran Torino in Detroit, Benjamin Button here in New Orleans, and the Batman movies/Eagle Eye/Wanted in Chicago are examples of films increasingly dispersing across the country.

I think the New York movies are the absolute worst. They are way too often all about the writers/directors/actors saying how great it is to be from new york. It kind of makes me sick actually

[LMich]

The Albert Kahn-designed Free Press building has two six-story wings flanking a 13-story central tower. A film company plans to make the former press room a sound stage. (Donna Terek / The Detroit News)

Freep building eyed for film jobs

Louis Aguilar / The Detroit News

Tuesday, February 24, 2009

The new owners of the former Free Press building are looking to convert the abandoned newspaper offices into a production studio that will tap into the state's burgeoning film industry.

Go to the Web site of Motor City Film Works and the new company lists its address as 321 W. Lafayette Blvd. and displays an image of the old Free Press building, which has been empty for several years.

"We intend to turn the former printing press area into a sound stage. That's 80,000-square-feet of space," said Richard Gerber, 46, of Troy, who owns a technology firm called Intelegen Inc.

Gerber said he's formed a venture partnership with the Fort Lauderdale, Fla., real estate company that bought the Free Press building in December.

Owner Lynn Kassotis said last week an announcement is likely in a few months. She could not be reached late Monday.

Gerber said he and his partners are looking to ensure the venture will qualify for the state's tax incentives package that has caused a recent boom in film, video and television production in Michigan.

The incentives give producers 40 cents back for every $1 they spend on production, double Michigan's old rebate, and an additional 2 percent rebate if the project is shot in certain Michigan communities.

It also gives a 25 percent tax credit to companies investing in new film and digital media studios.

Another incentive covers 50 percent of on-the-job training expenses for state residents working as crew members.

"Eventually we hope to offer the entire building into a space devoted to the film, video and television industry," Gerber said.

The Albert Kahn-designed buildings consists of two six-story wings flanking a 13-story central tower.

The state's Michigan Film Office is not in talks with the possible venture, said Michael Shore, spokesman for film office.

Earlier this month, Gov. Jennifer Granholm announced plans for two new studios during her State of the State address.

An $86 million digital animation and visual effects studio to be called the Detroit Center Studios will set up shop in the former MGM Grand Casino downtown.

In Pontiac, a $70.7 million film production studio called Motown Motion Picture Studios was announced for General Motors Corp.'s former Centerpoint plant.

Further, a $900,000 expansion of video and computer gaming company called Stardock Systems Inc. in Plymouth also is planned.

Since the passage of the tax incentives, 32 films have been produced in Michigan with 40 in the works -- compared to the six produced in the year before the incentives.

A total of 73 movie projects have been approved by the state. Since the incentives went into effect, the film industry has created $100 million in revenue.

In 2007, before incentives, the film industry generated $4 million.

Detroit News Staff Writer Mike Wilkinson contributed to this article. You can reach Louis Aguilar at (313) 222-2760 or [email protected].

[novawolverine]

Originally Posted by ardecila

I think the tooth-and-nail competition by cities/states for studios will be good for the entertainment industry. It will decentralize filming locations from NYC/LA, getting a greater perspective into movies and including a much wider swath of America. I'm seriously tired of how many movies are set in LA, simply because it was convenient. NYC I have less of a problem with, since it has always defined American culture in a major way, and because most NY movies wouldn't work in any other city.

Gran Torino in Detroit, Benjamin Button here in New Orleans, and the Batman movies/Eagle Eye/Wanted in Chicago are examples of films increasingly dispersing across the country.

Films have been shot in other places forever. Maybe it's becoming de-centralized, but films have been getting shot in other places or set in other places for a long time.

[krudmonk]

Originally Posted by sjs2017

I think the New York movies are the absolute worst. They are way too often all about the writers/directors/actors saying how great it is to be from new york. It kind of makes me sick actually

Don't forget the constant reminders that outsiders just don't understand their lifestyle.

[SpongeG]

fringe TV show is leaving new york and coming to vancouver

[Cleveland Brown]

You know I've ALWAYS been a fierce critic of G-Ho, but she has been on a roll lately, even managing to help Detroit - despite the silly actions of the city's government.

[Crawford]

Originally Posted by SpongeG

fringe TV show is leaving new york and coming to vancouver

No, they are only threatening to leave if they don't get tax credits, but the tax credits will likely be approved by the State.