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Michigan Film-Making Projects/Tax Credits

GRDadof3

By GRDadof3
in Grand Rapids

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quoteme3 Whistle-Stop

quoteme3

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As a Michigan resident who has been in the film-making industry for 25 years and who has read every line of the current legislation, I can tell you first hand that there is absolutely nothing in these bills that provides me ANY tax relief, let alone any incentives to invest in film-making infrastructure. Sure, a studio building can qualify - but all the "stuff" (equipment, cameras, etc) inside that building is a different matter. Aside from changing the signage on the exterior of a few brownfield structures, these "studios" are nothing more than empty "shells" where out of state producers can bring out-of-state cameras and directors to make a film for a few days or weeks. When shooting is complete, the building goes back to being an empty shell - and the local freelancers go back to wondering how they will survive in Michigan until another project comes along. And this is exactly what is wrong with these incentives. Any legitimate "infrastructure" investment needs a lot more than a couple independent feature films each year to sustain itself in Michigan's business climate.

Seasoned film-making professionals know that non-feature, commercial film-making is what sustains upwards of 80 percent of the industry's infrastructure. And Michigan-based, non-feature, commercial film-making is barely acknowledged in the current incentives and continues to suffer under the burden of Michigan's tax structure. What isn't being communicated in the sound-bites is that a vast majority of the jobs being "created" are very temporary, lasting only a few days or a few weeks at best. Nobody is talking about what these "freelancers" are doing to survive the other 46 weeks a year they aren't working on a "feature". I can tell you that most are struggling, some are doing temp jobs and others are seriously looking for work outside the industry.

All these incentives have generated for me have been numerous phone calls asking me to act as the "front man" to "launder" the payables for an out of state production... and calls seeking cheap day labor or "interns" willing to work for free. These incentives have done nothing to benefit those of us who live IN STATE and continue to labor under the burden of the MBT. Furthermore, the vast pool of freelance workers in this industry continue to suffer under a higher individual tax burden, still have inadequate access to affordable healthcare, and are - at best - dangling at the periphery of workers comp coverage and the other benefits provided to most people with "normal" jobs.

If the Michigan legislature wants film-making to be something more than the source of occasional headlines, they need to stop mailing large checks to out of state production companies and start fixing the core issues facing ALL small businesses that exist and provide jobs in this state EVERY DAY. And... it is worth noting that fixing these core issues would benefit not only the film industry but also a vast number of other small businesses that are currently suffering: contractors, builders, graphic artists, writers... and almost anyone who works for themselves and wishes to grow their business, etc.

Fix the problems facing the self-employed and small business and THAT will generate truly measurable growth across lots of industries in Michigan - even if it doesn't generate fluffy headlines.

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GRDadof3 Ecumenopolis

GRDadof3

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Wow, purchase price 4x more than the asking price, land contract (so no county record of property transfer), awaiting a $10 Million tax credit (in the form of a cash rebate) from the state? I smell Limberger Hangar42.

http://www.mlive.com/business/west-michigan/index.ssf/2010/05/unpaid_contractor_doesnt_care.html

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wmrharris Whistle-Stop

wmrharris

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Wow, purchase price 4x more than the asking price, land contract (so no county record of property transfer), awaiting a $10 Million tax credit (in the form of a cash rebate) from the state? I smell Limberger Hangar42.

http://www.mlive.com...oesnt_care.html

Well, as they say, the financing was certainly "aggressive." What does seem clear is that all sorts of parties had stars in their eyes: the contractor for certain, but perhaps in fairness, Buchanan too, who appears to have priced the property based on something like full utilization. As it stands, such optimism is instead inviting a different sort of trip to the halls of justice. Limberger indeed.

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arcturus Burg

arcturus

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I don't see Lansing doing away with a program that brings money into the state from outside.

They'll dump it when public scrutiny discovers the money brought in pales in comparison to what its costing the state.

No wonder it isn't transparent. Lansing doesn't want to divulge the program's failure.

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joeDowntown Metropolis

joeDowntown

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It's crazy. Jack (I know you read this forum), you look like a real d-bag. I was excited about the prospect of Hangar 42 but now it looks borderline criminal (maybe, through some technicality it isn't but still).

I say we label this Mystery Project III. Different cast of characters, same b*llsh*t result.

Joe

And then (and so on and so forth):

http://www.mlive.com/business/west-michigan/index.ssf/2010/05/technicality_stops_hangar42_st.html

It was a technical error, we added one too many zeroes onto the price tag. :rofl: j/k, couldn't resist.

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Raildudes dad Hamlet

Raildudes dad

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It's crazy. Jack (I know you read this forum), you look like a real d-bag. I was excited about the prospect of Hangar 42 but now it looks borderline criminal (maybe, through some technicality it isn't but still).

I say we label this Mystery Project III. Different cast of characters, same b*llsh*t result.

Joe

I wrote both my State Rep and Senator this week that it's morally wrong and if it's not a crime, they need to make it a crime. I don't think there's much that can upset me more than something like this. It's total b*llsh*t !!!!!!!!!!!!!!!!

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Rhino6885 Hamlet

Rhino6885

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This stuff happens more than you might think. A lot of the projects talked about here on UP involve credits that are obtained by providing a "second set of books" or inflated estimated project costs. I won't identify specific ones, but if you do a simple ROI calculation, it's obvious that there is a little number fudging. I think it is criminal--it's fraud. Hopefully this project sets an example for others out there who use this practice as everyday business.

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RegalTDP Burg

RegalTDP

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Class act Jack Buchanan and Joe Peters! Please move very far away from here. Thanks! :)

Joe

--Yeah, but not before you pay your contractors, doggone it!

Seriously, Mr. Buchanan. Spare them the expense of having to sue, and yourself the further embarrassment.

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GRDadof3 Ecumenopolis

GRDadof3

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Is Hangar42 officially dead then? Or have they officially been denied their tax credit?

Check this out from Noah Seifullah, how to invest $4 Million into a facility in Michigan and get back $12.5 Million in tax credits:

http://www.mlive.com/business/west-michigan/index.ssf/2010/06/aide_to_rep_robert_dean_says_h.html

I remember him from back on another Blue Bridge proposal. Was it the Monroe North/WAM site project?

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joeDowntown Metropolis

joeDowntown

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He was involved in both the Monroe North and the Calder Plaza hotel deal. Looks like this is going to get scandalous for a lot of people.

Joe

Is Hangar42 officially dead then? Or have they officially been denied their tax credit?

Check this out from Noah Seifullah, how to invest $4 Million into a facility in Michigan and get back $12.5 Million in tax credits:

http://www.mlive.com/business/west-michigan/index.ssf/2010/06/aide_to_rep_robert_dean_says_h.html

I remember him from back on another Blue Bridge proposal. Was it the Monroe North/WAM site project?

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GRDadof3 Ecumenopolis

GRDadof3

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Probably to spend more time bilking taxpayers. Thievery can be a full time job! ;)

Joe

I may have to pull out the copy of that letter from Logie that was posted in the Press long long ago. He may have been more intuitive than first thought.

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