BusinessReport.com

When the state created the tax incentive program in 2005 designed to lure the film industry to Louisiana, developers lined up to collect tax credits of up to 40% on infrastructure projects like film studios.

But amid scandal in the state film office—the former director pleaded guilty to taking bribes—and controversy, with several developers who earned credits before actually building anything, the Legislature tightened the law in mid-2007 and capped the tax credits at 25% for bricks and mortar projects. Studio projects already on the drawing board were grandfathered in—until the end of next year.

Now, with just a little more than one year to go, several of those projects in the Capital Region continue to exist only on paper, and it is unclear whether they will get off the ground in time to qualify for their credits. State officials say they’re working to help project developers do what they need to in order to be eligible for maximum dollars under the lucrative program, but some developers continue to grumble that the rules were changed in the middle of the game.

Neither state courts nor the Jindal administration agrees. They have backed up the state entertainment office and its new rules, essentially telling developers to start construction if they want their tax credits. But now that the state is playing hardball, several of the much-hyped, mega-studio projects that were unveiled over the past couple of years appear questionable.

Below is a look at the status of Capital Region film studios.

Armada Studios

Location: La. Hwy. 67, East Feliciana Parish

Estimated budget: $20 million • Status: In the works

Plans for this studio have changed several times since they were unveiled last year. Originally envisioned as a $35 million complex of newly constructed soundstages, with an arts and entertainment college and backlot studio on 160 acres, the project has been scaled down. Developers recently purchased a 12.5-acre tract of land near the original site on Highway 68, and are planning to begin construction Dec. 1 on a studio and post-production facility on the smaller parcel of land. Both will hopefully be ready for the mid-February shoot of a proposed feature film and a TV show pilot. Plans are still in the works for future construction on the larger parcel.

Celtic Media Center

Celtic Studios

Location: 10000 Celtic Dr., Baton Rouge

Estimated budget: $56 million • Status: Open

One of the biggest success stories in the local film industry, Celtic Studios keeps on growing. Situated on a 20-acre site near Airline Highway and Interstate 12 with multiple soundstages and post-production facilities, it’s the state’s first full-service studio/soundstage complex built from the ground up. In the past six months, Celtic has grown from two sound stages to four and is currently in the process of completing a high-tech audio facility capable of doing automated dialog replacement and creating sound effects. Celtic continues to move forward with plans for a training facility, and is negotiating for the purchase of a 3,100-square foot building adjacent to the campus that will be used for post-production, editing and offices.

Emerald Bayou Studios

Emerald Bayou Studios

Location: Pointe Coupee Parish • Estimated budget: $100 million • Status: Unclear

Against the lush backdrop of cotton country, developers have been trying to turn a 40,000-square foot cottonseed mill into a soundstage, with a training campus and offices. But the $100 million project, of which $1.5 million has been committed so far, appears to have hit some snags and its future is unclear. State officials say they last discussed the project with its developers in mid-August, at which time they were told that plans for Emerald Bayou were still moving forward. They have not received an update on the status since that time. Emerald Bayou executives did not return several calls for comment.

Red Stick Studios

Location: East Baton Rouge Parish

Estimated budget: $665 million • Status: Unclear

This project is tied up in litigation, and its future is up in the air. Developer Robert Day says he wants to move forward with plans to build a massive studio with multiple soundstages at two different sites in the parish. Earlier this month, attorney Mary Olive Pierson filed suit against the state on behalf of Day in a dispute over how much money the developer must spend on his project and by when in order to receive the maximum tax credits. The state maintains that Day must spend all $665 million by December 2009; he contends that because his project was not certified by the state until August—nearly 18 months after he applied for the credits—he should receive more time. Day has said his project will take six or seven years to complete.

Hooperwood Studios

Hooperwood Studios

Location: 14595 Florida Blvd., Baton Rouge

Estimated budget: $1.7 million

Status: Open

This renovated facility on the site of a former auto dealership has been open for nearly 18 months, though a 20,000-square foot sound stage was just completed over the summer. That brings Hooperwood’s total space to more than 40,000 square feet, which includes a 6,000-square-foot, green-screen soundstage, offices, conference rooms, rehearsal spaces, editing suites and a fabrication shop. Last year, a major feature film, Dirty Politics, starring Judd Nelson and Beau Bridges, was filmed at the studio. The facility has also been used for several smaller-budget projects, including music videos.

Studio City Louisiana

Studio City Louisiana

Location: U.S. 190, West Baton Rouge Parish

Estimated budget: $495 million • Status: Unclear

Plans call for locating this half-billion dollar project on 135 acres on U.S. 190 northwest of Port Allen. The project has been controversial, however, and has had trouble securing financing. Earlier this year, the State Bond Commission denied the project $325 million in GO Zone financing it had requested, prompting a lawsuit. Project attorney Michele LeBlanc also tried to legally force the state to grant infrastructure tax credits, but a judge denied that request as well. No construction has begun on the project, and the state film office has not heard from Leblanc since her tax credit request was denied. However, LeBlanc told Business Report last month that she is still moving forward with her project.