Raining on the Motowon Motion Pictures Parade

In Democratic Michigan Governor Jennifer Granholm's speech, she touted that Michigan is growing and that there is opportunity here in our state. As evidence of this, she pointed to Motown Motion Picture Studios LLC as an example of how the government can help create new industry and business in a state. Although having a movie studio in the area would be really cool, and I love the fact that jobs and opportunity is being created, let's look a little bit more at the details of the deal, reported on by WWJ news:

Motown Motion Pictures LLC – The new business venture, which will be both a film studio and a production services company, plans to invest approximately $70 million in a 600,000-square-foot development with nine sound stages in Pontiac. The project is expected to create 5,139 new jobs, including 3,600 directly by the company. The MEGA board Tuesday approved a state tax credit valued at $101 million over 12 years to help bring the project to Michigan. In addition, Infrastructure Development Film and Digital Media incentives totaling $12.9 million have been approved to help support the project. Job training assistance through the MEDC and Renaissance Zone designation by the city of Pontiac are also under consideration.

Let's do a little math- 5,139 jobs created at the cost to taxpayers of 113.9 million dollars. That is $22,163 a job. That's about $127 a person- not much, but if you let every person in our state keep that money and spend it on goods and services or invest it, it would multiply many times over, and create more jobs and economic benefits than some pie in the ski scheme like this one. For those trying to do more research on this, according to the Oakland Press, here are some more details:

"It’s good news — it’s going to be 3,600 jobs,” Republican Oakland Couny Executive Patterson said Tuesday. The local investors in the new studio are Oakland County developers A. Alfred Taubman, Gary Sakwa of Grand Sakwa Properties in Farmington Hills and Linden Nelson of Nelson Ventures in Birmingham. They’re teaming up with Raleigh Studios of Hollywood, Calif., and Endeavor Talent Agency of Beverly Hills, Calif.

Notice how the number of jobs this is going to bring to Michigan has dropped considerably now, and that several major players who are receiving this funding from Michigan citizens are from California. This company will likely receive the full amount of funding- but I wonder if taxpayers will receive anywhere near the full benefit from this venture.