By CHAD CALDER
Advocate business writer
Published: Apr 21, 2007 - Page: 1D
The tax credit program the state implemented in 2002 has exceeded expectations in directing film production to Louisiana. But as other states create their own tax packages, Louisiana must develop its work force if it wants to stay ahead of the curve. That was the message of a panel discussion hosted Thursday by the Redstick International Animation Festival titled “Creating a LA Media Empire.†Alex Schott of the Governor's Office of Film and Television said that when Louisiana came up with its tax credit package to compete with Canada, only one other state was using tax credits to attract production. These days, he said, there are more of them every year. If a more attractive package pops up somewhere else, he said, “the industry can get up and move to the next hot state.†At this point, Louisiana doesn't have the work force in film, television and digital production to stand out among the newcomers. “We have a work force issue,†he said. The good news? So does everyone else. And if Louisiana is aggressive enough it can hang on to the lead it created with the tax credits. Jordan Kessler, who moved to Louisiana from Southern California a year ago to start his company, Louisiana Media Services, said that without building a work force, film and video production might well be like a carnival — which rolls into town, does its thing, contributes to some local caterers and dry cleaners and then packs up and leaves. Kessler said that when he started his company, he shuttled people in from the West Coast before deciding it would be better to invest in training. “It doesn't really help me,†he said of importing talent. “It doesn't really help the state. It helps the airlines.†Kessler, who came to Louisiana because of Celtic Studios in Baton Rouge, said he's hired 24 people in the past seven months and is getting ready to buy his third building. “The dividends are exponential,†he said of his investment in training. Mark Smith, Schott's predecessor with the state and now head of the private Louisiana Production Center, recounted his days trying to convince people that film production is actual economic development, not just an element of tourism or a feather in the state's cap. Smith said getting the state to take his former office out of the Office of Recreation and Tourism and make it part of the Department of Economic Development was a major step. He also said it's important to realize how important the tax credits he crafted have been to attracting the industry, pointing out that touting friendly people and good food isn't enough to attract business. “The bottom line for any industry,†he said, “is: ‘How can I save money.' †Sherri McConnell, the state's director of entertainment industry development, said regional economies need to work together and realize that parochialism is an anathema in a global industry. Will French of Louisiana Production Capital LLC said entrepreneurs need to do their homework: figure out where their abilities lie, study hard and apply themselves. He said he spent countless hours learning the ins and outs of the tax credits before starting his business, which helps productions take advantage of the credits. Had he gone in without preparation, he said, his firm surely would have gone belly up. Also, French said: Be flexible. He pointed out his company changes its business plan once a month. Kessler, who pointed out at the beginning of the discussion that one of his productions was filming just over the levee along the Mississippi River, said the economic and political climate is right for taking the initiative and making things happen. “I've been here for a year, and I'm making movie after movie after movie and no one's stopping me. They're helping me.â€
Advocate business writer
Published: Apr 21, 2007 - Page: 1D
The tax credit program the state implemented in 2002 has exceeded expectations in directing film production to Louisiana. But as other states create their own tax packages, Louisiana must develop its work force if it wants to stay ahead of the curve. That was the message of a panel discussion hosted Thursday by the Redstick International Animation Festival titled “Creating a LA Media Empire.†Alex Schott of the Governor's Office of Film and Television said that when Louisiana came up with its tax credit package to compete with Canada, only one other state was using tax credits to attract production. These days, he said, there are more of them every year. If a more attractive package pops up somewhere else, he said, “the industry can get up and move to the next hot state.†At this point, Louisiana doesn't have the work force in film, television and digital production to stand out among the newcomers. “We have a work force issue,†he said. The good news? So does everyone else. And if Louisiana is aggressive enough it can hang on to the lead it created with the tax credits. Jordan Kessler, who moved to Louisiana from Southern California a year ago to start his company, Louisiana Media Services, said that without building a work force, film and video production might well be like a carnival — which rolls into town, does its thing, contributes to some local caterers and dry cleaners and then packs up and leaves. Kessler said that when he started his company, he shuttled people in from the West Coast before deciding it would be better to invest in training. “It doesn't really help me,†he said of importing talent. “It doesn't really help the state. It helps the airlines.†Kessler, who came to Louisiana because of Celtic Studios in Baton Rouge, said he's hired 24 people in the past seven months and is getting ready to buy his third building. “The dividends are exponential,†he said of his investment in training. Mark Smith, Schott's predecessor with the state and now head of the private Louisiana Production Center, recounted his days trying to convince people that film production is actual economic development, not just an element of tourism or a feather in the state's cap. Smith said getting the state to take his former office out of the Office of Recreation and Tourism and make it part of the Department of Economic Development was a major step. He also said it's important to realize how important the tax credits he crafted have been to attracting the industry, pointing out that touting friendly people and good food isn't enough to attract business. “The bottom line for any industry,†he said, “is: ‘How can I save money.' †Sherri McConnell, the state's director of entertainment industry development, said regional economies need to work together and realize that parochialism is an anathema in a global industry. Will French of Louisiana Production Capital LLC said entrepreneurs need to do their homework: figure out where their abilities lie, study hard and apply themselves. He said he spent countless hours learning the ins and outs of the tax credits before starting his business, which helps productions take advantage of the credits. Had he gone in without preparation, he said, his firm surely would have gone belly up. Also, French said: Be flexible. He pointed out his company changes its business plan once a month. Kessler, who pointed out at the beginning of the discussion that one of his productions was filming just over the levee along the Mississippi River, said the economic and political climate is right for taking the initiative and making things happen. “I've been here for a year, and I'm making movie after movie after movie and no one's stopping me. They're helping me.â€
Publish Date:
04-21-2007
