LED review of movie credits could restore confidence in La. movie industry
Glen Smith welcomed efforts to assess the state’s movie credit program so much that he’s “dusting off” a $15 million production set expansion project on Airline Highway.
“We have a completely drawn out Phase 2 with a couple more studios, a post production facility and office for Quixote Studios, which is on standby until we see how the movie industry will push forward in the state,” Smith said. “But, now, we’re encouraged with [Gov. John Bel] Edwards’ efforts.”
Edwards announced Louisiana Economic Development (LED) will conduct a comprehensive review of the Motion Picture Production Tax Credit program with the intent of taking recommendations for reform and best practices to the 2017 fiscal legislative session.
It’s a turnaround from Gov. Bobby Jindal’s administration that successfully pushed to cap movie tax credits, which spun the state’s booming film industry into a downturn.It’s also good news for Smith as CEO of Magnolia Companies of Louisiana in St. Rose that partnered with Los Angeles-based Quixote Studios to make films at studios in St. Rose.
The news could put Smith’s longtime plan to build the largest sound stage for film and production in southeast Louisiana, also in St. Rose and also for Quixote Studios’ use.
“I’m very encouraged with what I’m hearing from the governor and reading,” Smith said. “He’s going into it approaching how to handle the tax credit with a point of making it work and not finding ways to kill it.”
With the 100-acre site and financing already lined up, Smith said he will proceed with the project once he’s confident the investment has a future.
The location is across from the St. Rose Travel Center, which Magnolia Companies also owns.
Construction was to begin in 2013 when Louisiana boasted some of the best tax credits for film production in the country.
Initially, plans called for a two-phase project encompassing two sound stages collectively representing 30,000 square feet. The second phase was to include two sound stages at 30,000 square feet each in addition to special effects, production offices, a mill and other support facilities.But the project, along with many others in the state, stalled with the credit cap.
Smith said it was the way the Legislature changed the tax credits that turned the switch off on the project, as well as many others in the state.
“The Legislature, in the last 90 seconds of the session, passing the bill and catching the movie industry by surprise created distrust,” he said. “That hurt the industry more than the amount of money we’re talking about. We only crossed the $180 million in credits twice in the last seven or eight years.”
Smith is hopeful Edwards can regain that trust by properly assessing the movie credit program, including his own as he contemplates resuming the film production expansion.
“Our dynamics are really good,” he said. “I’m very bullish on St. Charles Parish because we’re very close to where it’s all happening.”
The location is 18 minutes out of New Orleans providing easy access to a large studio site, Smith said. It’s also minutes by air for clients and the New Orleans airport is nearby providing an added advantage for production people and actors.
“We have the only studio in the state actually run by a Los Angeles-based company and that makes our relationship different with the studio than those in New Orleans and Baton Rouge,” he said. “What we choose to do, understanding this business, was to get a Los Angeles-based operator with existing studios and worked an arrangement with them, and support their needs to be sure they can do what they need to do.”
Smith said the studio was built to handle television series and stayed busy with productions including Criminal Minds, Astronaut Wives Club and Scream.
“They stay longer and rent longer … different than when you are doing a feature,” he said. “There’s bigger money, but they are gone in a matter of 90 days as opposed to seven to nine months for a series.”
Overall, Smith praised the governor’s move as one “telling Los Angeles and the world that Louisiana is open for business in the movie industry.”
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