The proposed $60 million film studio in the town of South Windsor has the potential, directly and indirectly, to generate 4,590 permanent jobs and $786 million in economic activity per year, according to a new study released by the Connecticut Economic Resource Center.
The study, which was presented to the South Windsor Town Council last week, also found that that $276 million would be spent on construction and startup costs creating 1,530 jobs.
Craig Stevenson, an economic developer for South Windsor, said the study was done to reassure the public that the project was a worthy investment. The town of South Windsor and the state will be investing millions of dollars in the project, which is being developed by Connecticut Studios, a partnership between Rhode Island-based Halden Acquisition Group and California-based Pacifica Ventures.
“We wanted to make sure this project was a strong public benefit,” Stevenson said. “Our original assumptions turned out to be correct and the results of the study actually exceeded our original estimates on the economic impact.”
Developers have been working with local and state officials for over a year to create the mixed-use project that would be anchored by a motion picture studio consisting of eight sound stages, a visitors’ center, executive offices, a mill building and back lot.
The studio alone will be 360,000 square feet. Additional developments that will support the studio operations include a 150-room hotel, three to four restaurants, and retail space. Total investment in the project is $175 million, the CERC study estimates.
The average wage for the construction/startup-related employment would be $69,700 annually, generating $108 million in personal income. The initial activity would also generate $3.6 million in state sales and income taxes, the study said.
In addition, the ongoing or permanent operations would generate $786 million in sales and create 4,590 jobs, both directly and indirectly. That includes over $400 million directly related to film industry activities and 1,850 film-production jobs, the study said.
The permanent jobs created would average annual salaries of $59,800 per year and generate $11.2 million in state income and sales taxes.
The project developers, who own a similar studio in Albuquerque, New Mexico, were attracted to the state because of its generous film tax credits.
Stevenson said the film studio is currently in the planning stage. Developers are hoping to have a site plan completed by the end of the year, and one sound stage created by the end of next summer so they can begin to attract a film production.
He said the developers are also currently working with a national and community bank to raise about $11million to $25 million in private funds. Attracting private dollars is complicated because the financial markets are still in disarray, Stevenson said. However, the project developers have received positive indications from banks.
They also are using every type of government program and assistance that is available, Stevenson said.
“I do believe they will have financing wrapped up by the end of November,” said an optimistic Stevenson. “That’s the most difficult thing right now.”
