From the Hartford Courant:
By KENNETH R. GOSSELIN | Courant Staff Writer
April 16, 2008
Turning a vacant manufacturing complex on the Housatonic River in Stratford into what could be the largest independent movie studio in the country is a grand economic development vision.
But Allen Christopher, who heads an investment group, said Tuesday that his plans to build more than 30 soundstages in Stratford are more than just a vision: The money is already lined up and ready to go.
Christopher is a New Haven media entreprenuer who leads Hollywood East/Area 51, which has been chosen by the federal government as the winning bidder in an auction for the 1.7-million-square-foot Stratford Army Engine Plant. The winning bid was $9.2 million.
The movie studio plans were praised Tuesday by state political leaders who see promise in developing the state's film industry by offering lucrative tax credits. They want to promote the state both as a location for shooting film and video and for production work.
But memories of the failed plans for Utopia Studios from 2006 are still fresh, and they tempered some of the enthusiasm, even from House Speaker James Amann, the champion of the film tax credits.
"I really want to see this thing happen," said Amann, D-Milford. "But obviously this is a big project and a lot has to happen first."
Christopher said the army engine plant project shouldn't be compared with Utopia, which would have combined a theme park and movie studio at the old Norwich Hospital site.
"This is entirely different," Christopher said. "Just to bid, we had to put down a million, and if we don't close we lose it."
Utopia crumbled when its developers couldn't come up with financing at crunch time.
Christopher said the state's movie tax credits were key to making the studio project financially feasible and could help finance up to 20 percent of eligible construction and equipment costs.
Christopher declined to comment Tuesday on how much the redevelopment will cost, which includes cleaning up contaminated soil at the site, or a specific timetable for redevelopment. More details will be revealed at a press conference in the next few weeks, he said.
Details of the purchase, the cleanup and the redevelopment are still being worked out with state officials. The investors have hired HRP Associates in Farmington and the law firm of Brown Rudnick to work on the environmental issues, Christopher said.
The purchase is expected to close in the next three or four months, and work would begin soon afterward, Christopher said. Because work would be done in stages, the facility could be used before the entire project is completed, he said.
Christopher said a group of 18 investors is backing the project, some of them principals in Area 51 Digital Media Group. The company is developing a digital television broadcast station in New Haven that will combine old movies and interactive games.
Christopher, president and chairman of the project, declined to name the major investors in the project. But he did identify some partners who have a minority stake: Ed Natera, founder of N-Tech Systems in New Haven; New Haven jeweler Richard Sykes; and New York University real estate professor Mauro Gabriele. Former Democratic State Chairman Edward Marcus is general counsel, but not an investor, he said.
Christopher, who has a background in writing and producing for television, said he was a strong supporter of the movie tax credit legislation and has been looking for a property in the state suitable for a production facility since 2006.
Movie production facilities have been expanding in Connecticut in recent years. The Connecticut Film Center, which is adding soundstage space in both Norwalk and Stamford, welcomed the prospect of the Stratford facility.
"It's fantastic for Connecticut," Kevin Segalla, the center's president, said.
Article with phot link:
http://www.courant.com/business/realest ... 5179.story
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