Secrecy over Hangar42 tax credit grows

WALKER, Mich. (WOOD) - The wall of government secrecy around a movie studio tax break grew higher Friday.

The Michgan Film Office said in an email in response to Target 8's questions that "we have been directed by the Attorney General's office and Treasury to not divulge either an approval or denial" of the requested $10,000,000 tax credit.

In other words, if Hangar42 gets the tax break we won't hear about it from the government.

Hangar42 Studios has said it is buying the building on Alpine Avenue in Walker for some $40 million on a land contract. It has applied for the tax credit offered for film infrastructure development as part of the state's film initiative which has provided incentives for movie makers to come to Michigan.

The State Film Office has already denied a Target 8 Freedom of Information request for documents saying state law requires government workers to not reveal information gathered in administering the state business tax.

The deal is being questioned because while the developer and buyer say the property is worth more than $40 million, it was still listed for $10 million the day before Hangar42 Studios was announced.

The amount of the tax credit is based on 25% of the cost of the building and improvements.

The Film Office did say that the applicant for the tax credit will have to show that he has already spent 25% of what he claims is the cost of the project before the state can give him the tax credit. That will have to be verified by receipts and a full audit.

In this case the applicant would have to show he spent $10 million up front---not just that he will spend that and more over the life of the land contract.

The Film Office reportedly handed back the Hangar42 application, but a public relations firm representing the studio says it's a temporary setback and requires fixing something in the paper work---that information was entered in the wrong place---and that the request will be resubmitted.