also from the article:

 

"I have been more tempered in my response, saying that to me he seems like a guy who’s using some admittedly kind of crass methods to develop his studio, but whose pedigree is legitimate… and that I’d rather find ways to work with people who are in a position to be valuable to me than call them names and question their ethics. Although I’ve never paid to pitch myself, I wonder why some pay-to-pitch formats are acceptable and some are not."

 

http://chipstreet.wordpress.com/2009/09/15/sling-blade-producer-larry-meistrich-sued-for-fraud/

I was on board for giving them space to operate, tax breaks, hell pick up their garbage for free, but loan guarantees scare the bajeebus out of me.

Agreed, Loretto... hell no we can't finance basic retail, but we'll put 1.2 million of an impoverished city's money behind some independent films.  Shall we also buy some rare coins?  How about some fine collectors plates from the Franklin Mint?  I'm told those just shoot up in value. 

 

Economic development can be straightforward and logical... there's no need to impress 15-year-olds with how cool we are. 

Agreed, Loretto... hell no we can't finance basic retail, but we'll put 1.2 million of an impoverished city's money behind some independent films. Shall we also buy some rare coins? How about some fine collectors plates from the Franklin Mint? I'm told those just shoot up in value.

 

Ha ha- those were my exact thoughts as well.  I agree that this sounds like an absolutely terrible idea.

I wonder if they even included any type of safegaurds.

 

I mean its not that big of a secret that there some ethical issues with Nehst.  I understand that they would want to come across as embracing of the industry, but it shouldnt come without using common sense.  I see a scathing Roldo piece coming.     

just so we're clear, this isn't exactly a loan.  It's a guarantee...

 

"Cleveland's guarantee, which does not require the city to put up any cash, would "burn off" if the studio raises enough money through foreign sales and marketing to pay off its completion bonds for the films, Nichols said. "

 

I'm not saying this isn't without risk, or that I think it's a good idea, but there is definitely a difference.  The city guarantees a portion of a separate Nehst Loan, which allows them to produce movies, which should in turn produce money in the city and generate revenues.  And Nehst, though they certainly seem to have questionable ethics practices has actually made movies that have made money, and have at least some known quantity of talent for at least one movie... so there's a reasonable chance this will work.  Like I said, they may have questionable practices, but they aren't exactly some tin hat company that has never done anything.

 

 

...and as per usual this has nothing to do with retail, so let's please just keep this to Nehst.

Opportunity costs exist.  And it seems like the "guarantee" nature of this is only relevant to the extent one believes that independent films tend to be profitable.  Under no ascertainable standard is this a wise public investment, in fact it borders on appalling.

SCAM    SCAM    SCAM    SCAM    SCAM

 

Cleveland will get screwed on this deal. They've been duped!! Ken Silliman and Tracey Nichols are incredibly naive. Doesn't anyone research backgrounds?

 

Larry Meistrich  =  swindler who burned over 60 people out of millions of dollars when he ran the now defunct "The Shooting Gallery"

 

Ivan  =  blackballed from Hollywood and winds up here. Latches on to Nehst because he can't make anything else happen (at least Chris Carmody had some real successes).

 

Ari  =  Nehst President and former head trader for Bernard L. Madoff Investment Securities

 

Andrew  =  lead investor for Nehst (Bernie Madoff's son who is being investigated)

 

 

If these films get completed, they will LOSE MONEY (98.75% of independent feature films without A list celebrities lose money, similar story for documentaries).

 

And, no McCleveland, Nehst has not released any films that have broken even.

 

 

I never said I thought it was a good idea.  Just making sure it was understood this is not a straight up loan.

Argh, loan guarantees like this certainly aren't going to help the city's credit rating:

 

Moody's Investors Service assigns negative outlook on Cleveland's debt

 

http://www.cleveland.com/cityhall/index.ssf/2010/03/moodys_investors_service_assig.html

 

But wow, what a moronic/inaccurate headline for that story.

If Nehst's reputation is anywhere near as bad as some of the articles linked on this thread make it seem, could the city's involvement with them actually hurt our ability to develop a segment of the movie industry?

YES!  That's a huge part of it for me, this is going to actually make things WORSE for us.

YES! That's a huge part of it for me, this is going to actually make things WORSE for us.

 

Agreed.  This is a very bad move. 

Clarifying the level of film production in Northeast Ohio

Two recent articles from the Plain Dealer that detail the success of the Cleveland (and Ohio) film industry:

 

http://www.cleveland.com/movies/index.ssf/2010/09/ohios_motion-picture_tax_credi.html

 

http://blog.cleveland.com/pdextra/2010/09/ohio_film-tax_credit_has_broug.html

 

"In the motion-picture tax credit's inaugural year, the state attracted nine films that are expected to spend a combined $33 million in Ohio, according to the Ohio Department of Development".

 

9 films have qualified for the tax credit program, but only 5 are expected to have been completed by the end of 2010.

 

"Unstoppable” filmed some scenes in southern Ohio but it mainly used crew members from Pittsburgh.

"25 Hill" has a budget of $500K and it shot many scenes in Akron. 

Jeff Nichols shot his latest film in Lorain and his budget was around $900K. 

"Freerunner" with Sean Faris shot in Northeast Ohio on a $2M budget.   

Larry Meistrich's first completed Ohio film, "Lilith," was budgeted at $300K with a crew of less than thirty people.

 

That means the total budget for all films that shot at least some scenes in Northern Ohio this year is approximately $3.5 million, and not all of this was spent in Ohio.  In terms of the film industry north of Columbus, the progress has not been as promised 

 

The figure of $33M included 4 movies (totaling $16.3 million) that apparently won’t be filmed in 2010.  3 of those 4 are Nehst Studio film projects. 

 

Here is a quote from 2 years ago (November 17, 2008) that predicts the effect Nehst Studios will have on Northeast Ohio:

 

“Nehst is committed to spending $125 million in Northeast Ohio if the state legislature passes a proposed tax credit for filmmakers, officials say.  The deal would grant the company occasional use of other areas of the convention center, provided the areas aren't rented out at the time. Comparable space in Detroit could fetch more than $1 million in rent a year, the mayor's chief of staff said last month”.

 

Increasing the number of film projects shot in Northeast Ohio is beneficial to all of us, but it is essential that the statistics and updates provided by the film commissions, prominent members of the local film industry and the local media are correct.  Too often the meager information that is provided to the public is reminiscent of glorified press releases and overly optimistic portrayals.

 

http://clevelandfilm.blogspot.com/2010/09/clarifying-level-of-film-production-in.html

Welcome and thanks for the info!