Big day today for our industry as Film Tax Credits remain intact through the budget reconciliation process. I believe Governor Baker will sign what the Legislature delivers to his desk on our issue.
We must go way, out of our way, to thank our legislators who supported us, especially those on the Committee of Conference who seriously worked overtime and with results in our favor.
I want to personally thank Senator Sal DiDomenico from the critically important committee tasked with resolving difference between House and Senate budget proposals. I met with him last week in behalf of our industry and he told me this was a serious challenge, much more so than in the past.
He is a big supporter of our industry and I know he fought for the economic development we have fostered for the cities and towns of Massachusetts while we’ve created an industry befitting our region’s high tech prowess and creative talents. Send him a note of thanks: Sal.DiDomenico@Masenate.gov.
There are so many legislators to thank; be sure you thank yours.
I do want to reiterate, “we dodged a bullet today!” Amendment #38 was a serious assault. It overwhelmed me when 23 Senators of 38 (2 vacancies for election open) stood against our interests in a vote for Amendment #38. Only nine Senators stood for us.
We have much work to do and must get started ASAP.
I’ll have more on what we can do to hopefully stave off future assaults on our Film Tax Credits in my Take Two coming to you next week.
A State Capitol brief today announced “There were no surprises Thursday as the House and Senate named six members to come up with a consensus state budget. The budget, which is due by July 1, will be hashed out by a conference committee chaired by House Ways and Means Committee Chairman Rep. Brian Dempsey of Haverhill and Senate Ways and Means Chairwoman Karen Spilka of Ashland. They will be joined by Ways and Means vice chairs Rep. Stephen Kulik of Worthington and Sen. Sal DiDomenico of Everett. Sen. Vinny deMacedo of Plymouth and Rep. Todd Smola of Warren will serve as Republican conference members.
This committee will decide to keep or not keep Senate Amendment #38 in the 2018 Fiscal Budget. The amendment literally guts our Massachusetts Film Tax Credits. Along with us, Hollywood will be watching this committee and its final say about Senate Amendment #38.
We have to keep our fingers crossed and no matter the results of this conferencing committee, we need to acknowledge that we have much work ahead of us on Beacon Hill.
For more information, read this month’s Take Two here on Imaginenews.com
We have two icons on our cover. Both are musicians. One plays the harmonica and one plays the Saxophone. They are natural born music brothers, but, the first time they played together was for the celebration of IMAGINE Magazine’s 200th Edition and our 19th Birthday Celebration.
When blues legend James Montgomery plays the harmonica, he “brings it on home”. Whether it’s recording with Kid Rock, sitting in with Gregg Allman, or fronting his hot band of thirty years, Montgomery plays with authority. While growing up in Detroit he learned first-hand from the masters – James Cotton, John Lee Hooker, and Jr. Wells – at the legendary “Chessmate.” Over the years, he’s carried on in the tradition and continues to be a vital presence in Blues as one of the most dynamic performers on the scene. And he
belongs to us – New Englanders and we see him as one of the most generous and supportive famous people in our region.
In addition to playing a mean Saxophone, Don Packer is the Senior Editor and Coowner
of Engine Room, Brewhouse VFX and Conductor Productions. He is also a past President of the Massachusetts Production Coalition and a current member of its board. We see him as one of IMAGINE’s and our industry’s most avid supporters. In IMAGINE’s early years of getting Film Tax Credits into the legislative consciousness and then passed in Massachusetts, he would take the time to visit the State House with us to call on our legislators and explain what our industry had to offer the Commonwealth. He was also there from the beginning to support key legislators directly at events in their honor.
Mixing Don Packer and James Montgomery for this celebration was brilliant. We shot our cover photo in the Flag Building on Berkeley Street where Don Packer’s industry businesses reside. It is a beautiful building with a great history and seemed perfect for this photo assignment.
Our cover photo was captured by Carolyn Ross of Carolyn Ross Photography. And our Cover design is by IMAGINE’s Design Editor Monique Walton.
Recently, in this New Year, I arranged a brainstorming luncheon with IMAGINE Publisher, Carol Patton, where we met with Producer/Entrepreneur, Dennis Serpone and Producer/Talent Agent, Joel Feingold to discuss one of their new business ventures, the movie, SWEENEY KILLING SWEENEY. Topics we covered included financing, distribution, and most importantly, the impact that the MA Film Tax Credits have on new projects, how they work, and how they boost our economy. Clearly the MA 25% Film Tax Credit is playing a role in the success of this particular movie project.
Last year (2016), at the annual “Imaginnaire” Awards Gala, I had the pleasure of introducing Joel Feingold to Dennis Serpone, who I knew was looking for a connection to a project to invest in, or one that was in the development process.
Since Joel was already involved in a number of projects, I put my matchmaking instincts to work, and put them together. I was happy to learn that they hit it off, and are now collaborating on the hilarious-comedic lm, SWEENEY KILLING SWEENEY starring celebrity-actor/comedian, Steve Sweeney.
Within days of the luncheon, I decided to ask each of them the following questions, and asked them to put their answers into their own words.
1. What (bio-synopsis-snapshot) can you tell me about yourself?
2. In your own words, How did you both meet, and what is your relationship today regarding the new Production Company you formed, projects, and of course, SWEENEY KILLING SWEENEY?
3. How important are the MA Film Tax Credits to your ventures, including SWEENEY KILLING SWEENEY?
Here are their numbered responses:
Dennis Serpone (In his own words):
1. As a chronic entrepreneur, I’m keenly aware of opportunities that make life more rewarding. I’ve gone from engineer to restaurateur businessman, from hospitality real estate broker and developer to investor relations. Much like the theme of SLUMDOG MILLIONAIRE, our life’s experiences bring us to a pinnacle. Today is the summation of my life’s experiences working with Steve Sweeney and his team to produce his much anticipated comedy feature lm SWEENEY KILLING SWEENEY.
2. The expression, ‘nothing happens by accident’ is very appropriate in this case. I was invited by a mutual friend to the NEWPORTANT ‘wrap party’ in Newport, RI a couple of years ago, where I met Elaine Grey. Elaine subsequently invited me to one of Carol Patton’s IMAGINE’s “Imaginnaire” Awards Galas where Elaine introduced me to producer/agent Joel Feingold. Joel then
introduced me to Steve Sweeney and Keith Dorrington. My involvement in SWEENEY KILLING SWEENEY is the result.
In subsequent conversation with Keith, he became interested in my family’s house ipping efforts on Cape Cod and saw it as a reality TV Show, Flipping Cape Cod. “Improving the face of Cape Cod one house at a time.”
3. Because of the nature of independent lm making, generating investor interest and financial commitment is a daunting task. In the case of SWEENEY KILLING SWEENEY, having tax credits is an important addition to the benefits our investors receive for participating.
Joel Feinberg (In his own words):
1. I started my career in the industry as an agent and manager representing “baby” rock bands. This led inexorably to founding my own agency which I ran for about twelve years. I had fallen into producing shows for private clients and this work was both pro table plus my background as a television cameraman, general studio hand, and my good education made it a good t. I took a break from representing talent for over a decade and focused on producing private shows of all types. During this time period I also made my rst foray into the world of Broadway, attempting to mount a show. About three years ago I decided to return to my passion, working with artists, and now represent nine actors, comedians and writers, as well as their projects.
2. Dennis Serpone and I met at the 2016 “Imaginnaire” Awards sponsored by Carol Patton’s IMAGINE Magazine. Director Elaine Grey was kind enough to introduce us as she knew that I was starting to work on funding for a lm, SWEENEY KILLING SWEENEY, which stars my client Steve Sweeney. The timing was great as Dennis was looking for a project to work on as well, from the funding side. My interest in promoting Steve’s career and Dennis’ interest to become a producer coincided and we built a strong yet still flexible relationship to collaborate on SWEENEY KILLING SWEENEY.
3. The Massachusetts Film Tax Credit is a very important part of the package which we present to potential investors. Even at a small level, let alone that of a major Hollywood production, the credits improve the nancial projections for an investor. Putting money into a motion picture or television pilot is risky, and so the impact of the Film Tax Credit is a mitigating factor. It’s clear that the level of impact is crucial: Below a certain amount and there is a drop off of participation as projects go elsewhere and regional investors lean toward other options.
From a broader perspective, I believe that the ecosystem supported by the Massachusetts Film Tax Credit is very beneficial to our overall social and economic environment. It’s nearly impossible to measure the increase in tourism and goodwill created by the many motion pictures and television shows lmed and set in Massachusetts. But it surely exists. And the work, folks able to function as creatives, make our lives richer every day.
It is fascinating to watch this collaboration grow, and to see how support for this project is taking a life of its own. It will be interesting to follow how the MA Film Tax credits work for them and how Massachusetts will benefit from their contribution. I look forward to seeing what the future brings for these talented and amazing Entrepreneurs, Dennis Serpone and Joel Feingold.
Dennis can be reached at: Dserpone@comcast.net and Joel can be reached at: www.joelfeingoldpresents.com
Elaine Grey is a SAG actor, director, writer and producer, who has been working on lms since her graduation from Harvard University in 2006. She resides in Watertown MA with her husband, Daniel. Last year she directed two short lms, LATE and COFFEE TALK. Elaine was the original founder and driving force for the development of Watertown’s Center for the Arts, located at the Watertown Arsenal. Elaine is on Facebook and can be reached at: Evgrey@aol.com.
Late last year I hosted a panel at the Media Resource Expo in Danvers, Massachusetts at the annual Media Resource Expo with extraordinary panelists Representative Ann- Margaret Ferrante, Berkshire Film and Media Collaborative Executive Director Diane Pearlman and Filmmakers Collaborative Executive Director Laura Azevedo.
Our topic was The Importance of Film Tax Credits and How to Defend Them in 2017. The major take-away from this panel discussion was suggested by Representative Ann- Margaret Ferrante and that is to not wait until the legislative season began to remind our elected legislators and the Governor’s Of ce how important MA Film Tax Credits are to each and every one of us. And to tell our own individual stories.
In December IMAGINE called for a letter writing campaign to begin early in the year doing just that before the Governor gave his State of the Commonwealth Address and before he prepared his budget.
After two years of literally everyone in the industry responding to the Governor’s rst try at eliminating our credits altogether in favor of earned income tax credits for the working poor, and then his second year in of ce trying to limit our credits severely by capping them, no one was quite sure of what to expect this third year. Would he be thinking “third time is a charm” or perhaps realize the merit and strength of the production community. Letters were sent.
Meanwhile, there has been no mention of MA Film Tax Credits in the Governor’s State of the Commonwealth address, nor are our Film Tax Credits mentioned in the Governor’s proposed budget.
In our industry’s favor on February 16, 2017 the Massachusetts Production Coalition (MPC) sponsored “Film Set Day” in the Great Hall of the MA State House for the express purpose of recreating the execution of a major motion picture production from pre-production, scouting locations, set construction, set decoration, art and costume departments, casting, stunts, shooting, crew, catering, stages and staging, all the way to post-production and special effects. This process effectively demonstrated to legislators and their staff the entire process and showed how many ancillary businesses and tradesmen are actually essential to the business. Yes, everything from lumber and paint companies to talent trailers, mobile restrooms and waste management.
Many new jobs and businesses have incubated in Massachusetts since we passed lm tax credits in 2005; there were no catering companies in the state that catered to motion picture sets. Productions brought their caterers in from LA and New York – these huge trailers that could house their operations and feed the crews two meals a day. This practice greatly increased production costs. That production need alone created both challenge and opportunity for local caterers to create on set catering businesses for themselves.
On Film Set Day, Dolce Catering fed the legislators and their staffs as if they were on the set of a major motion picture. Later I spoke to Jessica Halloran of Dolce Catering. She was there, ‘It was a great event and awesome turnout supporting the industry,” she enthusiastically said.
“The Film Tax Credits are vital to sustain and grow the production industry in Massachusetts. It’s reassuring to meet legislators that support them and comprehend the development process necessary to establish a new industry in the Commonwealth. It’s important to businesses like Dolce Catering to know that there are people on our side interested in establishing the production industry as a permanent xture and source of revenue like it is in New York City. As you’ve seen here today, we have the resources to make that happen.”
Terie Michon, who is a longtime resident and realtor on Cape Cod, is transferring her knowledge and expertise into a “concierge” service for the beautiful area she lives in, which she happens to know like that back of her hand. Her “MakeAMovieHere.com” offers studios, major producers and independent filmmakers Transportation-Air, Land or Sea; Location Scouting, Location Negotiation and Acquisition; Permitting; Accommodations for cast and crew, as well as catering, marine services for large and small vessels (including Captains and Crew), Cleaning/Housekeeping, Nannies and Child Care, Lawn/Landscaping, Hauling, Masonry, Painting, Carpentry – if you need it on The Cape, Terie will arrange it for you.
There are big time beneficiaries of production industry, too, like the transportation and accommodations sector. The state of Massachusetts prospers when studio Films are on location in the area, and the benefits touch a wide range of businesses and organizations. Within this is the luxury hospitality industry, showing a significant growth in the entertainment segment following the initiation of the film tax incentive in the state. Four Seasons Boston, the premiere luxury hotel in the city, spoke with IMAGINE about the beneficial impact the tax incentive has had on their business specifically.
Director of Sales at Four Seasons Boston, Jason Bossenberry, shared that the entertainment segment of business received at his Hotel has increased by more than 90% over the past several years. Though this is not all related to lm (music and sports also fall within this sector), a signi cant portion of the increase can be assigned to feature film production.
Four Seasons maintains a strict code of confidentiality for their guests, creating a particularly attractive environment for high pro le individuals in the industry. “As a luxury hotel, we often have an opportunity to host the Talent, Directors, and Producers for long term stays,” says Bossenberry. “We operate with the highest levels of discretion, which is attractive for these individuals while they’re in town. We also have seventy-seven Suites, significantly more than most properties, allowing us to guarantee a larger, luxury environment and make guests feel like they have a true home away from home during their time in Boston.”
Even Entertainment Attorneys get more work. Elaine Rogers, Entertainment Attorney at Meister, Seelig & Fein LLP says, “I represent Jeff Bauman (Boston Marathon survivor and double amputee) with regards to his book “Stronger” and option/purchase of the book rights for the upcoming Lionsgate movie STRONGER starring Jake Gyllenhaal which was lmed in the Commonwealth. I have found that this lm and other productions coming to the Commonwealth have provided additional opportunities for local talent. From my perspective, the attractive tax incentives have certainly contributed to the increase in entertainment business here in the Commonwealth.
Noah Lydiard, Conductor Productions co- owner and executive producer adds, “We are seeing more commercial and lm work come in from out of state since the addition of the tax credit. We’re pulling in jobs from California and New York. At least part of the reason they are here is our ability to keep our prices competitive by utilizing the tax credit. These are jobs that might not be here otherwise.”
Perhaps the Governor has noted that in ten years Massachusetts has hosted 170 Major Productions, which have been shot in 190 cities and towns spending more than $2 billion in our state while creating 14,500 new jobs with an average salary of $67,000.
Perhaps someone told him that in 2016 background artists, known as Extras, worked over 11,000 days on Massachusetts based productions averaging $320 a day and that Day Players, actors with speaking lines, had their best year ever. Over 400 were hired at $1000 per day. And there will be residuals paid in perpetuity – paying taxes to the Commonwealth in perpetuity.
Representative Ann-Margaret Ferrante offered this comment to IMAGINE, “I am encouraged that Governor Baker has relented in his efforts to eliminate the Massachusetts Film Tax Credit. Numerous initiatives and brie ngs have done an effective job explaining the bene ts of the Film Tax Credit, such as job creation and support for so many small businesses,”
Our economic engine is roaring.
Another battle by the US film industry has come to a close. Florida’s Film Tax Credit has been around since the program was created in 2004 has been allowed to sunset by the Florida Legislature. This incentive was created to provide rebates to approved films, TV shows and other projects to be made in Florida.
Historically it has been a success for the state. Following the blockbuster TV series Miami Vice, the Florida legislature recognized the collateral benefits for the state. Not only the economic benefit of the jobs created by the production, but more the public relations aspects that created a major boost for tourism.
As the 2016 Legislative session came to a close recently, the existing Entertainment Industry Financial Program was allowed to sunset after the Herculean efforts of the in state movie industry efforts failed to pass an extension or get a new bill. The industry has been working for four years to convince members of the legislature to support a program that has numerous benefits, including job creation, economic development, and proven increases to tourism.
The Florida’s Movie industry has worked tirelessly to convince legislators that this tax incentive should be continued. The same battle is going on in other states most notably Massachusetts. In both states, the industry has developed highly trained professionals who deserve to be supported by their elected representatives in their efforts to build a serious entertainment infrastructure.
In the last three years, more than $650 million in projects has been lost. These projects would have created over 110,000 hotel nights and an estimated $1.8 billion in economic impact for the State of Florida. Not to mention that the skyline, familiar venues and buildings appearing on TV and the big screen to showcase the state to entice tourists to come and visit.
Florida also is a center for education with more than thirty colleges and universities offering degree programs in media, filmmaking and other associated skills. It is estimated that over 5,000 students graduate each year with these industry degrees.
In the same vein, Massachusetts has similar statistics to back up their case. Over the past 10 years 99 major motion pictures have been produced in the Commonwealth.
The success of the Film Tax Credit in the past has created a skilled work force that will be hard pressed to utilize their craft and skills in other industries. That creates unemployment and other economic distress. Many will move to more fertile ground.
The effect of the mere discussion of Tax Credit incentive change has ensured that families and businesses will continue to face a worsening crisis in which jobs and projects will flow to competing states. Massachusetts industry participants and their partners will need to address what urgent measures must be taken to preserve the industry and create a dynamic, universal change in the approach moving forward.
Finally, the Massachusetts Film industry (and Florida) has not asked for excessive support but seeks to maintain a program that would allow it to continue to grow and continue to be recognized as a global hub for film, television and digital media production.
Richard DeAgazio is an industry professional on assignment for IMAGINE Magazine in Florida.
First the good news: I am happy to report that my surgery early in March was a complete success! Cancer free and pathologies negative. It has been a long battle for me, but failing has never been an option in my mind. I still have radiation to go, but for now, I’m feeling great and have rolled up my sleeves to defend the Massachusetts Film Tax Credits against H62.
You may recall that IMAGINE Magazine introduced Film Tax Credits to New England in the early 2000’s and I wrote the first definitive piece on why we should pass film tax credits in 2004. As soon as that issue of IMAGNE hit the street, my office got a call from the Governor Romney’s office asking for twenty copies. That changed the nature of our struggle. The rest is history, we were able to introduce legislation, educate all the elected class and pass the Massachusetts Film Tax credits in 2005; and we made them better in 2006!
Since our inception in 1998, film tax credits and growing this industry has been our #1 mission. We have been defending them ever since. It’s a 24/7/365 responsibility, which is why IMAGINE has a full time Director of Government Relations. We need to know where our elected officials stand on our issues all the time.
We have always known that overnight our main attraction of major productions, both studio and independent, to bring their work to our state can be challenged. A recent case in point is Connecticut when in late June in 2013 the Connecticut’s Film Office awoke one morning to find the state’s tax credits for film had been suspended for two years!
Many people do not understand what tax credits are designed to do. What they are not designed to do is easier to understand. Tax Credits are not designed to put money directly into government coffers. Period. The end! Why is it always judged on that misconception?
Tax Credits, and particularly Film Tax Credits, are designed to pour money into an existing economy; money that would not otherwise be available with the purpose of, in our instance, of creating an industry, stimulating job creation and other desired results that hugely benefit the Commonwealth. For example the Commonwealth could not afford to buy the attention, awareness and attraction of the really special visitors to our state, including the productions themselves that create the industry of tourism. Countless new businesses have arrived. I wish we knew how much collectively they paid the state to do business here.
When a production buys, rents or hires everything it needs here, cast and crew, talent trailers, equipment of all kinds, lumber, paint, hardware, hotel rooms, catering, transportation, waste management (yes, waste management, it’s a big ticketed item), chiropractors and much more, too numerous to mention, the desired results are achieved. The point being that every dollar the production spends ends up being business or personal income that will be taxed by the Commonwealth. In addition much of that money will be re-spent here creating more taxes for the state, cities and towns. Ultimately, all those dollars end up in a federal, state, or municipal coffer.
Consider this: As a result, Massachusetts has many very famous new taxpayers.
The film R.I.P.D spent a boat load of money here. Whether or not the film was a success or failure at the box office has nothing to do with the success of Tax Credits. The production was on location in and around Boston for six months, sometimes with five or six crews shooting at once. R.I.P.D. spent more than any other production in the Commonwealth’s history; they also didn’t break anything, they didn’t pollute or use any social services. They paid for everything before they left. Everyone who worked on R.I.P.D., no matter where they are from, paid taxes in Massachusetts! That includes Ryan and Bridges.
There is no exact formula for calculating the worth of a film tax credit. But, we are getting pretty close to being able to do that. I take great exception to being judged by anyone who apparently doesn’t understand what a tax credit is designed to do, particularly those who use the glamour of our industry to write head turning headlines, especially when they have no appreciation of the thousands of names in the credits at the end of the film, the countless businesses that provided services, or just how hard and yes, unglamorous, it is to make a film.
In my estimation there is no doubt we can prove our worth.
The next edition of IMAGINE puts a spotlight on this issue and we’ve designed a special section dedicated to our industry’s success and our importance to the state and region. I believe I am writing another definitive piece – a big one.
If you have an industry related business that began in MA after the tax credits were incepted or you are an individual that moved to MA or moved back to MA to work in this industry because of the tax credits, please drop me a note – I’d like to include your experience in our special section.
We are also focusing on NAB and the Massachusetts high tech industry that exhibits at NAB in Las Vegas April 11th – 16th. We’ll be there with a gigantic bonus distribution and huge presence. And we have Film Festival Previews for you.
If you would like to advertise in this edition please contact me. Ad Copy deadline is Monday, March 30, 2015. Please book space now.
On June 26, 2012 New England Studios broke ground in Devens, Massachusetts for a state-of-the-art movie studio and there was a ground breaking celebration luncheon and ceremonial shovels in the ground.
The excitement and anticipation for a ground up, state of the art movie and television studio with sound stages that will be equal to or better than any stages in Hollywood was palatable then and its about to explode now as the giant complex nears completion. The finishing touches and final occupancy certification are the only things left on the drawing board.
The project has been on that proverbial drawing board for more than three years from its veritable conception, private financial partners and Mass Development coming on board, the land acquisition, breaking ground and finally a year long massive construction period that we all watched on a week-to-week basis. Is it ready yet?
Mike Meyers, Director of Real Estate Development for New England Studios and MJM Development Managing Partner supervising construction told IMAGINE as wewere going to print “This is just a phenomenal project. Cutting edge design, iconic Hollywood features with space ship technology… “We are very pleased to be a part of the growing Massachusetts Film Industry,” Myers continued. Meanwhile the final landscaping is going in along with the carpeting, shelving,the furniture will have arrived by the time you read this, and the grip and electric company associated with the New England Studios begins the process of moving in. Chris Byers who spearheaded the campaign to build New England Studios praised the The New England Studios Staff is now up to twelve and about 240 construction workers are still on site attending to those closing construction details.
A Grand Opening is being planned to coincide with the first client production to use the brand new studio space. The management team says they will be announcing that in about a couple of weeks.
For now the complex is anticipating its internal soft opening. There is someone on site to do business with everyday now. Their plan is to have a day or two open house for industry people and ancillary businesses, The formal Grand Opening will be by invitation and will include studio heads, and those individuals and businesses that have helped them over the years leading up to this great addition to the infrastructure for our industry and the Commonwealth of Massachusetts. It is expected to be heavily covered by the press as this studio is an important new entry into the world of film and television production for all the studios and networks.
Lowell, Massachusetts native Chris Byers, who serves as Director of Studio Operations and Marketing, has spent the last two weeks on the West Coast meeting with studio heads at this vital juncture. New England Studios is no longer a dream, not just breaking ground, not half way through construction; New England Studios is a reality. It’s time for business to come to this world-class home for the film industry.
In addition to the 72,000 square feet of stages, this complex includes 4,000 square feet of sound stage support space, a 30,000 square foot three story production support building with dressing rooms, a 20,000 square foot mill building to house production construction facilities, mechanical effects, grip and lighting and set storage and parking for 358 cars. Each stage has six 1,200 amps power and 120 tons of heating and cooling and each is NC25 rated. There are six 20’ x 20’ exterior elephant doors and three 42’ x 24’ interior elephant doors. Wooden catwalks crown every stage. It is a full service film studio encompassing 126,000 square feet.