With key pieces finally falling into place, developers of the $100 million Connecticut Studios movie complex in South Windsor are hopeful they can begin construction this fall and start moviemaking next summer.
The guarded optimism comes after years of delays for a complicated project that received much fanfare when it was originally announced in 2008.
Two important approvals, however, are expected in August and September that could allow Connecticut Studios developer Halden Acquisition Group to finally close on the land purchase and construction financing.
“If you can’t promise when it will be done, the moviemakers won’t sign on,” said Craig Stevenson, economic development consultant for Connecticut Studios. “Our goal is to have a film in production by next summer.”
On Aug. 19, Stevenson said, the South Windsor Town Council is expected to call a special meeting to approve the developer’s agreement. South Windsor likely will offer infrastructure necessary for the project, such as sewers, valued at $13 million. Halden will detail the project’s scope and the expected tax revenue.
Additionally, Connecticut Studios is banking on the Public Utilities Regulatory Authority to approve by Sept. 30 its power purchase agreement with electric utility Connecticut Light & Power to install a $25 million fuel cell park on the move studio property located at the intersection of I-291 and Route 5 in South Windsor. CL&P and the studios applied for the approval on June 28.
The power purchase agreement is important for the studios and South Windsor because by selling the fuel cell energy to CL&P, the project will be able to generate more revenue and municipal taxes regardless of how many movies are made at the studios. The five-megawatt fuel cell park replaces previous plans for an eight-acre solar farm. Since fuel cells are a Class I renewable in Connecticut, the studios will receive the highest possible renewable energy credits for the installation.
“We support the state’s overall goal of promoting diverse, cost-effective, and environmentally friendly resources,” CL&P spokesman Mitch Gross said.
Once the developer’s agreement is approved, the studios will purchase the land and obtain its building permits, Stevenson said. Once the power purchase agreement is approved, the developers will close on $14 million in private financing and $5 million in state construction financing. Halden also will use 25 percent state infrastructure tax credits for financing.
If all those approvals move forward, Connecticut Studios hopes to break ground on the $100 million phase 1 of the project in October, with a nine-month construction period.
“This will become a significant component of the economy,” said Peter DeMallie, president of South Windsor-based Design Professionals Inc. and chairman of the Connecticut Studios Support Group at the South Windsor Chamber of Commerce.
Phase 1 includes two, 42,000-square-foot studio buildings housing two movie studios each, and the renovation of the closed down Mestek Corp. manufacturing building on John Fitch Boulevard.
The 170,000-square-foot Mestek renovation will include a mill facility to make movie sets, along with office and storage space for three companies to provide moviemaking equipment.
Stevenson couldn’t confirm the names, but a source with knowledge of the development says Hertz Entertainment Services, Cat Entertainment Services, and Sony have agreements to move into the Mestek building.
Phase 1 includes a 120-room extended-stay hotel built by Massachusetts-based First Bristol Corp. The one-year construction on the hotel and other support amenities like retail and restaurants will begin about six months after phase 1 starts.
To attract movies, Halden partnered with Santa Monica’s Pacifica Ventures, which has California, New Mexico, and Pennsylvania studios.
Pacifica’s Albuquerque Studios encountered financial problems, filing for bankruptcy in 2010 with $100 million in debt. The studio emerged from bankruptcy with a new owner, New York-based Amalgamated Bank, although Pacifica still manages it.
Despite the trouble, Stevenson is confident Pacifica will bring moviemakers to South Windsor. The California company did bring movies like “The Avengers” and “The Lone Ranger” to Albuquerque.
Albuquerque Studios “was financed at a time when real estate values were highly inflated,” Stevenson said. “That’s what led to the restructuring.”
Depending on demand in South Windsor for two movie studio buildings, Connecticut Studios will move forward with phase 2 of its project in two to five years, Stevenson said. Phase 2 can include two more movie studios and a television studio.
