July 5, 2009
When the Town of South Windsor, CT, located in Hartford County, decided to take advantage of the state’s highly attractive tax incentive program for film and television, it called on NDC’s expertise to assist in structuring the financing for a new production studio known as the Connecticut Studios project. In the past, South Windsor relied on its historic but waning industrial and agricultural sectors as well as its property taxes to fund the local operating budget. However, recently the town has begun to invest in commercial development and the Connecticut Studios are one more important step in diversifying its economic base. The studios will contain eight 20,000 square foot soundstages, 90,000 square feet of office space, a woodworking mill and storage building, a post-production facility, a 150 room hotel, and a destination retail and movie themed visitor center. To make the project even more attractive, it will be developed using the latest in green construction with electrical power generated from a hydrogen fuel cell developed jointly with United Technologies Corporation. South Windsor’s proximity to the highly skilled film and television labor pools of Boston and New York is also a key factor in the strength of the development. The total cost of the project is currently estimated to be upwards of $60 million. Because of the diverse financing needed to develop a project of this scope and complexity, including the 30% transferable production tax credit, a 20% infrastructure tax credit and tax increment bonds, South Windsor turned to NDC to provide the financial expertise needed to create a successful financial structure.