Lights, camera, Katrina: rebuilding of Louisiana will affect production in L.A.

Will Hollywood become center-stage in Louisiana's rebuilding effort?

A month after Hurricane Katrina delivered a body blow to much of the Gulf Coast, there are continuing discussions among Louisiana development officials about using film and television production as a major economic building block in the reconstruction.

Much of the discussions, which remain very preliminary, center on upgrading the state's patchwork of production facilities--many of them converted warehouses - into an entertainment infrastructure that rivals what is available in Los Angeles.

"This is an opportune time for us to build sound stages and other infrastructure that the industry needs." Said Kim Anderson, co-founder of LIFT Productions, the largest film production company in Louisiana.

Alex Schott, director of the Louisiana governor's Office of Film and Television, said the rebuilding will not only put in place a physical infrastructure, but also help nurture a creative class that's been lacking in Louisiana.

"You'll start to see more of a commitment to the cultural economy in general--not just film production but also digital animation and sound recordings," Schott predicted. "We were planting the seeds for growth even before the hurricane."

Louisiana has emerged as an attractive venue for Hollywood production by offering one of the nation's most generous incentive packages. Those include tax credits and exemptions to the state's sales and use taxes. Spending on film and television production ballooned to $125 million in 2004 from $3.9 million in 2002.

Louisiana's incentives had drawn increasingly high-profile projects, including the Oscar-winning Ray Charles bio-pic "Ray" in 2003. The nucleus of a full-service production environment had begun to form along Distributors Row in New Orleans' Jefferson Parish.

Along with several other states offering incentives, Louisiana was luring enough production out of Los Angeles to cause California lawmakers to consider incentives of their own, an idea that was shelved shortly after Katrina struck.

Challenges ahead

Beyond the short-term fallout from the storm, however, Louisiana faces a number of challenges in expanding its production base. The state has limited facilities and a fraction of the entertainment industry workers who are readily available in Southern California. In addition, a revamped version of the tax-incentive program, scheduled to go into effect in January, imposes greater conditions on production companies.

For now, state film officials have focused their efforts on holding onto productions that were either under way about to start when Katrina struck.

"The Reaping," a Warner Bros. thriller starring Hilary Swank, has resumed production near Baton Rouge. Another feature, Walt Disney Co.'s "Guardian," starring Kevin Costner, has switched its production to Shreveport from New Orleans. The direct-to-video sequel "Road House 2" and a Lifetime television pilot, "Scarlett," resumed production in hurricane-spared areas of northern Louisiana.

Perched on higher ground, Distributors Row largely escaped the flooding in New Orleans. But the area suffered power outages, disruptions in communication and the displacement of many workers. Even now, making contact with state and industry officials has been spotty.

Adam Rosenfelt's Los Angeles-based production company, Element Films, was shooting "The Last Time," a comedy-drama starring Michael Keaton and Brendan Fraser, in New Orleans when Hurricane Katrina hit on Aug. 29. The filmmakers were evacuated to Mississippi, then back to L.A. after Mississippi found itself in Katrina's path.

Element, which is a partner in an equity fund for filming in Louisiana called La-Squared, has shot five films in the Bayou state, including three yet to be released.

"With the rebuilding process obviously comes potential opportunities," Rosenfelt said. "There's always been talk about sound stages that haven't come to pass. I would tend to believe that with the way Hollywood works, if they're up and running, we'll find people who want to shoot there."

Left unclear is the fate of a proposed $20 million production center that L.A.-based Sunset-Gower Studios had planned on the banks of the Mississippi River in New Orleans. An assistant to Sunset-Gower Studios chief executive Bob Papazian said the project has not been abandoned, although Papazian himself was not available.

Making a comeback

Louisiana's loss, even short term, may not be L.A.'s gain. Amy Lemisch, director of the California Film Commission, said productions have been drawn to several states and foreign countries that offer a hospitable environment and lower costs of doing business. "It's really not so specific to Louisiana," Lemisch said. "It's that everybody has so many choices fight now."

Ultimately, Louisiana's attractiveness may depend on its ability to continue offering generous tax breaks in light of Katrina's impact on the state treasury, several film experts said. Filmmakers are willing to cope with some logistical challenges if there are significant savings.

"People want to stay in California because they live here, but if they have other places that are willing to offer tax breaks and other incentives, they're willing to travel," said Hal Sadoff, head of international and independent film at International Creative Management Inc., the Los Angeles-based talent and literary agency. "I think eventually New Orleans will make a comeback and people will want to shoot there."