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Tag: Hanger 42

Celluoid Burns Like Napalm - Hanger 42 percent

By JGillman, Section News
Posted on Fri Jun 18, 2010 at 08:45:22 AM EST
Tags: Film Credit, Hanger 42, Mackinac Center, MEDC, Michigan (all tags)

~Cross posted from a genuinely perplexed MTTM~

Perhaps no one has yet noticed the similarity between the name and the amount (percentage) of credit provided to film makers for their "investments" into the Michigan Economy? Could it be possible, the sheer audacity of what now appears to be a scam to separate Michigan taxpayers from their hard earned dollars would lend itself to the very name of the tool used to perpetrate such fraud?

It seems there is not a shortage of bold, in-your-face claims with regard to this project, or the very nature of its ability to feed corruption. The naming convention, given recent news should come as no surprise.

The Mackinac Center Legal Foundation Director Patrick Wright yesterday called for an official inquiry by the Michigan Legislature, Michigan Attorney General and the U.S. Attorney's Office into the Hangar42 state film subsidy deal in wake of troubling revelations and state silence surrounding the project.

Concerns about the purchase price of the studio, the nature of the arrangement between the seller and buyers and the level of the potential state subsidy were compounded yesterday when The Grand Rapids Press reported on a state representative's aide bragging publicly about his ability to profit from state subsidies on an unnamed film incentive deal. Wright carefully states:

"While there is no clear indication that a crime has been committed, there are enough questions surrounding this deal that the Legislature, the Michigan Attorney General and the U.S. Attorney's Office should carefully scrutinize it and take appropriate action"

The Mackinac Center was the first to publicly raise questions about the Hangar 42 deal with an essay and investigative video posted on its website May 20. Fiscal Policy Director Michael LaFaive and Communications Specialist Kathy Hoekstra reported that the building converted into a studio was on the market for $9.8 million as late as February, but apparently sold for as much as $40 million shortly thereafter. The result was a significantly larger potential state subsidy.

(817 words in story) Full Story