Councillors OK $40M loan to get film complex rolling

The City of Ottawais ready to loan the Ottawa Film Office up to$40 million to get started on a sound stage complex in the Greenbelt after the the film office'sprivate-sector partner said its money is tied up elsewhere.

The Ottawa Film Office has partnered with TriBro Studios of Toronto to buildfour big boxbuildingsfor shooting television dramatic series and other productions, but TriBro's parent company is currentlybusy building a giant casino, waterpark, hotel and film studio complex in Pickering, Ont., called Durham Live.

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Because of its financial obligations in Pickering, that parent company, the Triple Group of Companies,can't finance the sound stages itself for another two to three years, Ottawa city staff say in a report.

"We have a lot on the go," saidTriBro Studios president Peter Apostolopoulos. "If the financial piece doesn't come from the city, we're still building studios in Ottawa. It just won't happen this year."

Film office wants a piece

But the Ottawa Film Office, whose mission is toattract film and television production and co-production to the National Capital Region and foster the growth and development of the local industry, doesn't want to delay. Its representatives appeared at city hall Monday to ask the finance and economic developmentcommitteeto OK a loan of up to $40 million to pay for construction, which it hopes can begin this summer.

Ottawa is often used as a shooting location fortelevision movies, especially Christmas-themed ones,but the budgets for those TV productions are dwindling, said Ottawa's film commissioner, Bruce Harvey.

Local producers arekeen to get a piece of the streaming business, which is centred on shooting big-budget dramas in flexible sound stages where they canset up for long periods.

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"The industry is growing like crazy. If we wait a year or two,who knows how many new sound stages will be built in Toronto? Who knows how many will bebuilt in Hamilton?" Harvey asked.

A loan might also help the Ottawa Film Office operate without depending on annual city funding, Harvey added. If the non-profit film office ownedthe sound stages, it could sublet the space to TriBro andget 26 per centof net revenues.

If the project is delayed, thecity stands to lose $400,000 in annual property taxes, and $100 million in possible economic activity,Harvey said.

Financialquestions

A stream of supporters made presentations to the finance committee Monday, includingOttawa Tourism and Algonquin College, which is pondering moving its animation program to the future creative campus.

Coun. Jeff Leiper found the financial details of the staff report lacking, however, andasked many questions about the financial deal, which could also see TriBro Studios take over ownership of the sound stages once the loan is repaid.

It's a $40-million loan. I grill my kid when he calls me for 50 bucks.- Coun. Jeff Leiper

Staff assured Leiper thatErnst and Young had determinedthe Ottawa Film Office's business case wassolid, and was also satisfied its private partnerhad real estate assets that wouldmitigate the city's risk of issuing debt to give the film office its loan.

Leiper wanted to see the Ernst and Youngreport for himself, however, before city council decides on March 25 to allow city staff to execute the loan.

"It's a $40-million loan. I grill my kid when he calls me for 50 bucks," Leiper said.

Ottawa's finance committee also approved a new film bylaw, which would create a permit system for film productions.