GRAND RAPIDS, Mich. (WOOD) - Hangar 42 Studios was big news in February withthe announcement that an old industrial building was beingtransformed into 450,000 square feet of permanent film studio spaceand offices for production people.
Governor Jennifer Granholm
Hangar 42 could become the first to beeligible for a special state tax credit specifically for movieinfrastructure projects. The credit amounts to 25% of the cost ofthe studio. The Michigan Film Office said it tentativelyapproved a tax credit of $10 million based on a project cost of $40million.
But in March, Target 8 investigators asked the man who said hewas the sole investor in Hangar 42, Joe Peters, about the project's cost.
A real estate listing for the property, part of the Avastar Parkdevelopment on Alpine Avenue, was withdrawn just the day before theHangar 42 announcement. That listing was for $10 million.
Peters said the $40 million figure he gave the Michigan FilmOffice in applying for the credit was just an estimate. The finalcost, he said, will be lower, but didn't know yet what the finalcost will be. Rehab work was underway, and Peters said he wasbuying the property ready-to-go from Alpinist Endeavors.
Alpinist Endeavors is run by developer Jack Buchanan Jr. and his attorney-father.
Neither Peters nor Buchanan returned calls from Target 8.
But late Thursday afternoon, Peters released a statement that said the price is$40 million, and an appraisal early this year put the propertyvalue at $45 million.
A spokesman from the Michigan Film Office said the tax breakdeal is not finalized and the state has asked for moreinformation.
Target 8 Investigators request to see the Hangar 42 incentiveapplication and the state's response under the
It also makes it impossible for the public to see first hand howthis tax break is being administered, and makes the tax deal astate secret.
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