A California developer is proposing to build a 61-acre state-of-the-art film studio in South Windsor, a $90 million project that could create as many as 2,000 permanent jobs and generate $400 million in annual spending.
The deal is in the late stages of negotiation but could be jeopardized if the state suspends its film tax credit.
Lawmakers have proposed a two-year moratorium on all corporate tax credits.
Regardless, several sources, who asked not to be identified because of the sensitive nature of the negotiations, told the Hartford Business Journal the project would be located about five miles north of Hartford at the intersection of Interstate 291 and John Fitch Boulevard.
They identified the developer as Pacifica Ventures, a Santa Monica, Calif. company created more than a decade ago to serve major Hollywood studios.
Pacifica developed and currently owns the Albuquerque Studios in New Mexico, which opened in 2007 and recently played host to Hollywood productions “The Spirit” and “Terminator: Salvation.”
Talks With Several States
Hal Katersky, chairman of the company, declined to confirm or deny that he is negotiating a studio project in Connecticut.
“We are having talks with officials in several states with very good incentive programs for movie studios and productions,” Katersky said.
“We plan to do business in states that have good incentive programs for movie studios and productions, and certainly Connecticut is one of the better states for that.”
Pacifica has considered potential film studio sites in Rhode Island and Pennsylvania, according to published reports.
Sources said state officials are leading the recruitment effort, but state Department of Economic and Community Development officials did not return calls and e-mails seeking comment.
An official with the town of South Windsor declined to confirm or deny that town officials were working with the developers.
In recent years, Connecticut has become popular with Hollywood moviemakers because of a film tax credit program created in 2006. The credit makes it possible for eligible production companies to receive a tax credit of up to 30 percent of qualified digital media and motion picture production, pre-production and post-production expenses incurred in the state.
However, in addition to a legislative proposal to suspend those tax credits for two years, Rell, in an effort to shore up a growing budget deficit, has proposed to cap those credits at $30 million a year.
It was not known whether the political pressure on the state’s film industry tax credit was affecting negotiations between Pacifica and the state.
A source familiar with the situation said that if the tax credits were wiped off the table, the project would definitely not go forward.
“Putting together a project as big as a movie studio is very difficult and complicated, especially in this economic environment,” Katersky said.
Six To Eight Sound Stages
According to documents obtained by Hartford Business Journal, the proposed full-service production studio would include:
• Sixty-one acres of land plus an option for 25 additional acres for hotels and restaurants;
• Six to eight sound stages totaling approximately 150,000 to 200,000 square feet of space;
• Approximately 75,000 square feet of full service finished production offices adjacent to the sound stages;
• 10,000 square feet of executive offices and about 150,000 square feet of mill and storage facilities for sets and sound stages;
• 50,000 square foot visitor center and a back lot area for outdoor sets, trailers and parking.
Sources say the project would cost about $90 million and create 500 to 600 union jobs during the construction period.
Another Film Studio Plan
After that, 1,650 production-related union jobs would be created, paying an average salary of $60,000. That would generate approximately $112 million in additional Connecticut payroll, sources said.
The studio would also create an additional 100 full-time studio facility jobs paying an average salary of $37,500, sources said.
News of the proposed facility surfaced during the same week that the planning and zoning commission in neighboring Windsor approved site plans and special use permits for a 1 million-square-foot film studio.
The proposed sites are about 10 miles apart. Windsor town planner Eric Barz said that project would convert the Mototown USA building on Day Hill Road into a studio with eight stages.
Barz said he was not aware of similar projects being planned in the area.
