Developers of the $50 million Connecticut Studios complex in South Windsor have received a $5 million loan from Ocean Capital, the commercial lending division of Home Loan Investment Bank.

The financing will support the creation of Connecticut Studios’ new 500,000 square foot motion picture studio.

The project, which has faced several delays and has not yet broken ground, will include nine sound stages totaling approximately 175,000 square feet of space; sufficient space for location shooting; approximately 104,000 square feet of office and support space, and 75,000 square feet of mill and storage facilities; a 125-room, 75,000 square-foot hotel; four restaurants occupying 30,000 square feet of space; a retail building with 16,000 square feet of space; and room for expansion as business grows.

Ralph Palumbo, CFO and a partner of Connecticut Studios, said the loan is part of a nearly $40 million package of public and private financing that will cover the costs of the first phase of construction.

The financing will include the sale of about $15 million in TIF bonds from the town of South Windsor. That debt will be paid off by property tax proceeds from the movie studio.

The Hartford Courant

SOUTH WINDSOR - The developers of a proposed $50 million film studio complex to be built in the town’s I-291 gateway development zone have received approval for $5 million in private financing to move the project forward.

The money for the Connecticut Studios project has been committed by Ocean Capital, the commercial lending arm of Home Loan Investment Bank F.S.B., in Warwick, RI, Elizabeth M. White, a spokeswoman for Connecticut Studios, said in a prepared statement.

The loan is part of a $39.2 million package of public and private financing that will cover the costs of the first phase of construction of four sound-stage buildings, a mill building for set construction, offices, a 150-room hotel and at least one restaurant.

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Journal Inquirer

February 3, 2011

SOUTH WINDSOR — Developers of the $50 million Connecticut Studios LLC complex announced Monday they’d secured $5 million in private financing from Ocean Capital, the commercial lending division of Home Loan Investment Bank.

The money will be used to complete the sound stage buildings.

“The securing of private financing moves us one step further in the process of bringing a full-service, state-of-the-art motion picture studio and production facility to South Windsor,” said Ralph Palumbo, chief financial officer and partner of Connecticut Studios.

Ocean Capital is a nationwide small business lender that offers financing through government-guaranteed Small Business Administration loans and U.S. Department of Agriculture loans.

The private financing will support Connecticut Studios’ new motion picture studio, which will create an estimated 400 to 500 jobs during construction. Once completed, the studio is expected to employ over 1,600 production-related union workers and 40 full-time studio facility workers, generating over $100 million in additional payroll, officials said.

Connecticut Studios LLC is a partnership between Los Angeles, Calif.-based Pacifica Ventures LLC and Providence, R.I.-based Halden Acquisition Group LLC. It will build and operate the motion picture and television studio, production, and post-production facility at the intersection of Route 5 and Chapel Street.

The almost 500,000-square-foot studio would include nine sound stages totaling approximately 175,000 square feet, enough for location shooting; approximately 104,000 square feet of office and support space, and 75,000 square feet of mill and storage facilities.

The development plan also includes a 125-room, 75,000-square-foot hotel, four restaurants occupying 30,000 square feet, a retail building with 16,000 square feet of space, and room for expansion as business grows.

“Connecticut Studios has demonstrated a sound business plan and a commitment to bring sustained economic opportunities to South Windsor and the entire state,” said Katherine Marien, senior vice president and commercial lending manager of Home Loan Investment Bank.

“We are very pleased to support this project and look forward to its success.”

Palumbo commented: “We are committed to … creating real, sustained job opportunities for Connecticut residents.” He said the developers hope to begin operations this year.

Copyright © 2011 - Journal Inquirer

Journal Inquirer

October 21, 2010

SOUTH WINDSOR — Although the groundbreaking at Connecticut Studios happened Monday, the financial details of the project still need to be finalized.

No vote has been taken, but the complicated $12 million tax incremental financing package was vetted by council members, consultants, and other officials during the Town Council meeting on Monday.

The private financing would pay for the public infrastructure of the development, including roads, a parking lot, and utilities.

Council member Thomas Delnicki said he was concerned there was no financial presentation revealing where the funding was coming from for the entire project, especially when government needs to be transparent.
Town Manager Matthew B. Galligan said he would make a formal presentation at the Nov. 1 council meeting.

Concerns also were allayed about any connection between the financial troubles of the Albuquerque Studios in New Mexico, which has filed for bankruptcy, and Connecticut Studios.

Town Attorney Dwight Johnson said he has spoken with a bankruptcy lawyer who assured him that “there is no connection that will jeopardize” the Connecticut Studios project. “So far I don’t see any problems there,” Johnson said.

There was some discussion about how long the financing program payments to private investors would continue, but Daniel Marsh, the town’s consultant on the funding measure, said there is a strong likelihood that the financing would be paid off in 12 to 15 years rather than 29.5 years.

The longer period “is a function of the market,” Marsh said.

Even though the infrastructure would be paid for with private funds, at no risk to the town, Delnicki said he was concerned it would affect the reputation of the town if they approved the financing and it failed.

Mayor John P. Pelkey said he also was concerned about the town’s reputation, saying that if officials don’t move forward with the project, people will say, “What idiots” for letting the opportunity slip away.

Pelkey said the town has not invested any money into the project, while developers already have spent more than $3 million and invested three years of their time to make Connecticut Studios a reality.

Pelkey also said there would be many high-paying union jobs during construction, and those positions would be offered first to South Windsor residents.

Even if the town was not in the position to reap significant financial gain from personal property taxes, which they would be, Pelkey said increasing area employment is a reward in itself.

“If we didn’t make one dime and we got 1,500 people jobs, it would be worth it,” Pelkey said.

He also said it is unfair to the developer to hold up the project by not moving forward on the financing, and that the council needs to vote on the program by the Nov. 22 meeting.

“We need to look at the bigger picture and get this going,” Pelkey said.

Journal Inquirer

October 19, 2010

SOUTH WINDSOR — It was a crispy, sunny, picture-perfect New England day, just like you would see in the movies.

But it was real life for more than 200 guests and officials gathered Monday at the groundbreaking ceremony for the $50 million Connecticut Studios LLC project.

“We are thrilled to break ground on Connecticut Studios today,” studio Chief Financial Officer Ralph Palumbo said.

“It was a long road to get here,” Palumbo said before the ceremony began. “I feel relaxed for the first time in three years,” but “I know it’s not over yet.”

It wasn’t a bad start, though, with Gov. M. Jodi Rell, U.S. Rep. John B. Larson, D-1st District, his brother state Rep. Timothy Larson, D-East Hartford, state Sen. Gary D. LeBeau, D-East Hartford, South Windsor Mayor John P. Pelkey, and others leading the cast of officials celebrating the event at the site of the old drive-in movie theater at the corner of Chapel Road and Route 5.

And during one of the worst economies in U.S. history there was plenty to celebrate, with the promise of 400 to 500 union construction jobs, Palumbo said.

In the first phase, developers plan to build four sound stages, one television studio, and a mill building. In the second phase, they will add four more sound stages a retail component with a 150-room hotel, four restaurants, a visitors center, and retail shops.

The hotel isn’t just a pipe dream, with one official observing that a hotel representative was at the groundbreaking ceremony, and others have reported that the hotel is in the plans for 2012.

Once the buildings are constructed, Palumbo said, studio officials anticipate funding about 1,650 production-related positions annually, with an average annual salary of $68,200, adding $102 million to Connecticut’s payroll. Once production wraps on a film, these jobs would go away until the next film is in the works and the jobs return.

The studio, however, will employ 44 full-time salaried positions, making an average of $45,000 a year and bringing $1.8 million to the state’s payroll.

“Tomorrow’s dreams begin today,” Pelkey said, adding that the construction is going to bring in jobs right away, “and the long-term prospect is even brighter … during one of the worst economic times in history.”

Rell was just as excited, saying, “We didn’t do this for the glitz and the glitter. We did it for three reasons — jobs, jobs, jobs.

“Who wouldn’t want to be filming here?” Rell asked. “It was a great effort by a legislature who had faith that it is going to work.”

LeBeau, who worked with others to make sure that film credits at the state level, which were key to the project’s success, didn’t go away, disagreed with Rell.

He said that he hoped the glitz and the glamour would be there to attract young people who in the past have left the state for opportunities elsewhere.

“Without the tax credits this wouldn’t happen,” LeBeau said.

Congressman Larson was excited too, saying, “This is a proud day for South Windsor.

“When we make it here in America, everyone in America benefits,” he said.

Sen. Bill Aman, R-South Windsor, said of the film and television industry, “It is a good, clean industry that has had high-paying jobs. … I am just delighted that the studios are coming in.”

After the presentation, Anthony DelVicaro, a principal with Connecticut Studios, said that within the next month officials plan to take down the steel framework — a remnant of the old drive-in projection screen.

DelVicaro said that they also are working with the state Department of Environmental Protection to determine if there is any residual motor oil on the site from vehicles parked at drive-in when it was in operation.

Mark Miller, Connecticut Studios general manager, said he has been working behind the scenes for the last 18 months.

“It’s a well-crafted program and one of the best in the nation,” Miller said of the state’s 20 percent film credit incentives.

He added that he felt confident that the studios would bring talented people to the state who would put down roots in area communities.

“It’s good for the studios and it’s great for the state,” he said.

Copyright © 2010 - Journal Inquirer

Hollywood East Connection

October 18, 2010

It’s been a year in the making and subject to months of delays, but Connecticut Studio LLC’s proposed $50 million studio-sound stage is finally ready for action.

According to Hartfordbusiness.com, General Manager Mark Miller will be joined by Gov. M. Jodi Rell, Congressman John Larson, South Windsor Mayor John Pelkey and other state and local officials this week to announce the groundbreaking for the project, now a 61-acre plot in South Windsor near the junction of Interstate 291 and Route 5. Construction for the movie studio is estimated to create as many as 500 union construction jobs over the next eight to ten months.

The 500,000-square-foot project will include nine movie-TV sound stages, executive offices, mill and storage facilities and space for locating shooting, and will be funded in part by Connecticut film tax credits. A 125-room hotel, four restaurants and retail space were also included in the original plans.

Let us know what you think about this new movie studio!

©2009 Hollywood East Connection

October 18, 2010

SOUTH WINDSOR, Conn. — Ground has been broken in South Windsor for a new movie studio.

Monday’s ground breaking in town was ceremonial to a degree, bulldozers won’t be moving for a while, but local leader said they believe the end result will be worth the wait.

Town leaders said tax and other incentives played a large role in luring a $50 million project to a sizable piece of land in town. The land is feet from where a drive-in theater once sat.

“The state is on the lookout for every growth opportunity we can possibly find,” said Gov. Jodi Rell. “And we have been welcoming the film and TV industry to Connecticut and it has been a very smart move.

What will be Connecticut Studios is located just off the Interstate 291 corridor. The project is expected to create up to 500,000 construction jobs int eh short term and hundreds of production jobs for people in the TV and movie business that will come to work, plus 450 full-time positions for those running the studio lot.

“This is all about jobs. Not short-term acting and directing jobs, but jobs that make motion pictures a reality, said general manager of Connecticut Studios Mark Miller.

South Windsor Town Councilwoman Kathy Hale said the town could gain up to $650,000 per year in tax revenue, with the town well protected if the deal does not work out.

“If everything goes bad, and it, the town will still have the right to take the property after the buildings have been put on it. So it’s a win, win, win,” she said. “We’ve worked very hard to make sure the citizens of South Windsor are taking no risk on this.

“While the groundbreaking took place Monday, the first real dirt moving is not expected to take place until the end of the year.

Earlier plans called for nine studios to be built, but the project will now have four to start, with five constructed later.

© 2010 by WFSB.com

ReminderNews.com

October 18, 2010

Hartford Courant

October 17, 2010

The developers of an ambitious plan for a movie studio and commercial development in town have scaled back their plans in light of a tough economy.

Craig Stevenson, an economic development consultant for the town, said Connecticut Studios has reduced the size of the studio project near Route 5 and I-291 and is delaying its commercial aspects, which included a 125-room hotel and three restaurants.

Connecticut Studios is a partnership of Halden Acquisition Group of Providence and California-based Pacifica Ventures LLC, which specializes in building sound stages for the film industry. Pacifica Ventures is the parent company of Pacifica Mesa Studios LLC, which owns Albuquerque Studios in New Mexico. Pacifica Mesa filed for Chapter 11 bankruptcy protection in July after failing to keep up with payments on an $80 million loan for the Albuquerque project.

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