Film incentives on
cutting room floor
4/17/2008
Bill dies in House; 2 local movies affected
By Keith Lawrence
Messenger-Inquirer
Lights, camera, inaction.
A bill to provide incentives to the film industry to make movies in Kentucky died on the House floor Tuesday night.
And Nick Brake, president of the Greater Owensboro Economic Development Corp., said Wednesday he's "bitterly disappointed."
"It was on the floor of the House, but it was never called for debate," he said. "We're pretty sure it was blocked by one man" -- Rep. Harry Moberly, a Richmond Democrat who chairs the House Appropriation & Revenue Committee. "We think it would have passed 99-1 if it had been called for a vote."
"It would be an understatement to say that I'm heartbroken," said Madison Silvert, Greater Owensboro Economic Development Corp.'s vice president for entrepreneurship and high-tech development. "It hurts to come so close. But I can't say I'm surprised."
Had the legislation passed, Silvert said, two movies -- each with a $10 million budget -- were set to be made in Owensboro this year. Roughly half of the budgets would have been spent locally, he estimated.
"They just took $10 million out of our pockets," Silvert said.
Ralph Singleton, who produced "Because of Winn-Dixie" and a number of other box office successes, was in Owensboro on Friday talking about his plans -- if the incentives had passed.
Singleton wanted to film "The Touch," a $10 million family film about a boy with a magic touch, at Ellis Park in Henderson and in Owensboro. Without the incentives, he said, the movie will probably go to Shreveport, La.
But Brake and Silvert said they plan to talk with Singleton in hopes of finding a way to help the movie begin production here this fall.
"He really believes the movie should be made here," Silvert said. "But whether he can convince his investors to do it without incentives is another matter."
The second movie, which hasn't been described, "is probably gone now," Silvert said.
"We're looking into the possibility of local incentives," Brake said. But the incentives the state was considering would have meant $2.5 million for a $10 million movie.
"I don't know how we could raise that much," Brake said.
"We can express how economical it is to do business in this area," Silvert said. "And we can talk about our amenities, but I don't know if that will be enough."
Moberly, who has served in the House since 1980, had expressed reservations about the legislation in a committee meeting earlier, suggesting that it offered tax shelters for wealthy investors.
But Silvert said, "This hurt the working people of Kentucky. Movie sets create a large number of jobs for craftsmen. There are a lot of blue-collar jobs that we're losing."
House Bill 756, the incentive bill sponsored by Rep. Tommy Thompson, a Philpot Democrat, never made it out of the House.
But Senate supporters of the incentives gutted House Bill 251, which dealt with government contracts, and inserted the film incentives legislation into that bill.
It was passed 34-1 by the Senate on Tuesday and sent back to the House for concurrence.
But concurrence never came.
Kentucky was considering a 25 percent tax break for every dollar spent in the state.
Silvert said Michigan just passed legislation offering 40 percent incentives in most of the state and 42 percent in impoverished areas.
"And they have 84 films scheduled to be made there now," he said.
Silvert said supporters of the legislation hope to meet with Moberly between sessions to try to enlist his support.
"We're not giving up," Brake said. "There will probably be a special session and we're hoping to get this on the agenda."
Both men praised Thompson's efforts to get the incentives through a reluctant legislature.
"I'm so impressed with Tommy," Silvert said. "He took this bill when no one else would and he was there pushing it until after midnight Tuesday."
"He worked as hard for it as he could," Brake said. "We're grateful to Tommy. But we're upset about the flawed process and how one person could take $10 million out of Owensboro's pocket."
"We had a chance to get a lot of films here," Silvert said. "It just hurts to get it shot down. It especially hurts because the bill had such broad-based support in the legislature."
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Keith Lawrence
Owensboro Messenger Inquirer
1401 Frederica St.
Owensboro, KY 42301
klawrence@messenger-inquirer.com
270-691-7301