As nearly $200 million in tax credit supporting film production dried up in New York City, Connecticut”™s own incentive program is spurring the creation of a $20 million studio to support production of film, television programs and digital media.
The Connecticut Film Center recently purchased a 155,000-square-foot industrial building at 300 Stillwater Ave. in Stamford, which it plans to transform into an entertainment production facility.
CFC bought the facility from Norwalk-based Spinnaker Real Estate Partners and an affiliate of Steven Wise Associates.
Current tenant Gyrus ACMI Inc. renewed a lease of 65,000 square feet for five years, less than two years after camera maker Olympus Corp. acquired Gyrus for its digital cameras used in medical procedures.
CFC said it is in talks with cable-television and digital-media companies to make the Connecticut Film & Digital Media Center their permanent production facilities. In the past few months, both NBC”™s “Jerry Springer Show” and the syndicated “Deal or No Deal” have reached agreements to tape programs in Stamford and Waterford, respectively.
“The growth of the film, television and digital media industry in our state is something we can all be proud of,” said Rep. Cameron Staples, a New Haven legislator who has championed the program. “CFC”™s purchase of this building for the Connecticut Film & Digital Media Center represents investment, jobs and economic growth for our state, all more important now than ever.”
Already having facilities in Stamford and Norwalk, the expansion of CFC into the new building is an expression of the company”™s confidence in the future of Connecticut”™s film, television, and digital media industry, according to Kevin Segalla, CFC president. In the next breath, however, he cautioned that not all in the entertainment industry share that confidence ”“ at least with respect to the long-term viability of a 30-percent tax credit the state has offered the past three years to offset film production costs.
Seemingly as fast as it took to say “lights, camera, action,” Hollywood film crews descended on Fairfield County after the tax credits”™ debut. Work has since been completed on nearly 100 films and TV productions, with three movies nominated for Oscars this year including Best Picture candidate “Frost/Nixon,” which was edited in Connecticut. As of February, the Connecticut Office on Culture and Tourism estimated that the tax credits have resulted in more than 2,000 jobs in Connecticut since they took effect in January 2006.
That activity could swell in coming months, after New York City officials stated funding had run dry to support the city”™s 5-percent tax credit that bolsters a 30-percent pro-film incentive New York state extended this past spring for one year.
Critics of the Connecticut program have argued for a reduction of the program in light of the state”™s budget woes, stating some of the credits have supported purchases or spending outside of Connecticut.
“When people criticize the program ”¦ (they) are not seeing all the ways this has stimulated the economy,” Segalla said. “Even with the hits that we”™ve taken the past few years from the economy and the screenwriters guild contract negotiations, this industry has still been growing.”
Perhaps most tellingly, Entertainment Partners recently opened an office here ”“ the payroll processing company acts like payroll services ADP or Paychex for the film and television industry, along with providing consulting services.
“We have been marketing the state to Los Angeles visual effects companies,” Segalla said. “What they are waiting for is further clarification of the tax credit program, and the longevity of the tax credit program. It is very hard to attract companies to the state when every incentive is being examined (by state government) ”¦ It all starts with having a program the industry can believe in, and believe it would not be taken from them.
