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Chicago Takes Center Stage

by Alexis Elmore

Bright lights are no stranger to the city of Chicago and neither is star power.

When it comes to film and television production, the city holds an impressive roster of industry favorites such as “Ferris Bueller’s Day Off,” “Home Alone” and “The Dark Knight.” Since 2010, more than 85 films and over 100 television shows have selected Chicago as their home base. 

In March 2023, Governor JB Pritzker and the Department of Commerce and Economic Opportunity (DCEO) announced that the state had broken its record for film production expenditures in 2022 at a whopping $691 million. The industry has amassed continued success over the past three years, beating out pre-pandemic expenditure in 2019 by $131 million.

However, such an established presence within the industry does not preclude space for firsts.

For New York-based real estate developer Knickpoint Ventures there was an industry need not yet met in Chicago. In turn, the company is introducing the city’s first purpose-built studio at the former Marshall Field’s Wholesale Warehouse.

The site was acquired in 2018, before receiving city council approval in February 2021. Construction began eight months later on the $250 million project, which is set to become operational in spring 2024.

“There were only a few providers of studio space in Chicago and from what we found they were fully occupied in spite of being conversions of warehouse buildings. The new era of film production happens in purpose-built studios that are specifically created to house the technological needs of productions in the future,” says Knickpoint Ventures Founder and Managing Partner Zain Koita. “We thought that we could really grow the production base here in Chicago by adding this kind of product to the market.”

Koita notes the company looked into studio development for the last several years. The sheer size of the more than 100-year-old property, physical location and logistical assets prompted its purchase and led Knickpoint Ventures to cultivate its own film studio plan.

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Illinois Film Production Expenditures

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Illinois film production expenditures in 2022 surpassed pre-pandemic estimates by $130 million.

“We’re kind of continuing down that path with a modern day manufacturing facility that’ll hire people locally,” said Koita. “It’s located in a great neighborhood halfway between the airport and downtown so it works well for transportation logistics, but also for attracting stars and executives that want an urban environment in addition to making high-quality content.”

Appropriately named The Fields Studios, the 23-acre site will be transformed to house 132,000 sq. ft. of sound stages and more than 350,000 sq. ft. of production and office space. A total of nine sound stages will be available on the redeveloped site, featuring one 5,000-sq.-ft. insert stage and eight stages ranging from 12,000 to 18,000 sq. ft., with operational walls connecting four of the stages for larger production capacity. In addition, the mixed-use redevelopment will introduce retail and residential offerings. 

This project represents the first studio investment by Knickpoint Ventures, whose portfolio consists of residential, self-storage, industrial and office real estate. With over 25 years of motion picture and television studio development experience, Knickpoint Ventures Partner Shawn Papazian is spearheading its creation under the newly established Knickpoint Studios.

“I think what’s different now is the evolution of virtual production, so we’ll be accommodating the need for that as technology grows and becomes more commonplace,” says Papazian. “What’s more important, now more than ever, is the idea of tax credits and how one can make content for the same quality but at a lesser price in the United States. Obviously, in states where that tax credit and the type of infrastructure needed is top quality it provides a prime opportunity, and that’s why I’ve chosen Chicago.”

The Fields Studios adds to Chicago’s expanding film industry, which holds over 1.8 million sq. ft. of studio space over the city’s 60 sound stages. Hopes for the purpose-built studio aim to not only grow Chicago’s production base but provide a one stop shop for film production. 

Producing More for Less

While the state could be considered the motherland of several of the nation’s film classics and favorite onscreen talent, it is also making waves in attracting new productions.

Before it was announced that Illinois film production expenditures reached an all-time high in 2022, Governor Pritzker had extended the Illinois Film Production Tax Credit for the next decade.

In comparison to New York and California, the state doesn’t have a cap on film and television tax credits, a notable incentive to both established and independent film makers. The incentive provides a 30% tax credit on qualified expenditures which includes production spending and salaries. Furthermore, productions can receive an additional 15% credit for salaries of talent who live within economically disadvantaged areas.

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“Our success in the film and TV production industry is more than just a set of revenue numbers. It means thousands of good-paying jobs,” said Governor Pritzker. “I was proud to extend the Illinois Film Production Tax Credit through 2033, guaranteeing a prosperous decade ahead for producers, writers, directors, designers, editors, actors, camera operators, and production assistants alike. Our film and TV production industry is a boon for our entire economy, bringing stability to Illinois’ booming film industry and the workforce that fuels it.”

Just as it was for Knickpoint Ventures, the state’s Film Production Tax Credit has proven itself to be the most enticing incentive drawing in companies and productions. Its expansion in 2022 contributed to 1,561 film permits from the Chicago Film Office.

Prepared for Growth

“I’m estimating that we’re going to be a billion dollar a year industry by 2025. The more we grow, the more we need crew,” says Illinois Film Office Director Peter Hawley.

On average and depending on the project’s size, 180 to 250 crew members are required to support a film production. Talent equipped with knowledge of on set operations, various crew positions and overall safety training is a fundamental step growing the industry that the state is set out to address.

In doing so, the Illinois General Assembly created the Film Workforce Development Fund which will support its Film and Television Workforce Training Program. Through the program, Illinois aims to not only grow its entry level crew base but increase access to solidify a diverse talent pipeline.

“The goal here is that if we do this consistently year after year, which the program is set up for over the next decade, we’ll get 2,500 to 3,000 people into the industry,” says Hawley. “The goal is people will start in entry level positions and work their way up the ladder to department heads.”

In the pilot program that took place last year, 175 students received hands-on training working on a small production, shadowing and gaining mentorship from working crew members. In gaining this experience, 80% of the programs grantees moved into paid production roles following graduation.

The biggest piece at play for the state is avoiding a “brain drain” of talent looking to get involved on set. With an ample number of productions eyeing the state, a ready-made talent base is key to getting projects like The Fields Studios in full swing.

“Talent in Illinois can look around and say, ‘Hey, I can have a great union job here in Illinois and I don’t necessarily have a college degree and I certainly don’t have to go to another state to find work,’” explained Hawley. 

Chicago Takes Center Stage

by Anna Reuter

The perils of a woman lost to the justice system. A group of teenagers time-traveling on Halloween. The world gone to waste after a killer flu. Two hilariously entrepreneurial graduates. A hidden capsule that transports you to another planet. A disgruntled chef dealing with suicide. False accusations of gang involvement. Elizabeth Moss. JK Simmons. Mackenzie Davis. Ali Wong. Robert Pattinson. Illinois gathers big names of television and film in its kitchen and lets them loose to concoct other-worldly scenes, poignant stories and overflowing audience enthusiasm.

Illinois has long been the backdrop for many American film classics new and old, from “The Breakfast Club” and “The Fugitive” to “The Batman.” Today, there’s even a trifecta of hit TV dramas linked to the Second City: “Chicago Med,” “Chicago Fire” and “Chicago P.D.”

The Windy City’s towering architecture, vibrant voices in a multitude of languages bubbling up from the streets, and diverse geography are the aesthetic draws of the state and have contributed to mainstay classics.

“Illinois has a place in the hearts of Americans and people all around the world because of our films and TV shows. Who doesn’t remember Kevin’s iconic run down the halls of O’Hare Airport in ‘Home Alone’ or Ferris’ joy ride and trip to Wrigley field on his day off?” says Peter Hawley, director of the Illinois Film Office.

Though the aesthetic value of the state is abiding, the business incentives are what drives production within its borders. In 2021, the state broke film production revenue records at $630 million, surpassing its 2019 record by a bounding $70 million.

While Chicago was hailed by Governor JB Pritzker as playing “a special role in the zeitgeist of American culture,” the state is home to so many productions due to its generous tax credit and well-rounded workforce. Initially passed in 2008, the state offers a 30% tax credit for qualified production spending and labor expenditures.

On July 1 of 2022, that act was expanded to include a capped credit for compensation, including non-Illinois residents. Wages for non-residents must fall under specific job titles, including Director, Editor, Writer, Composer, and Actor among others. A limit is placed on the number of qualifying actors depending on if the production spends more or less than $25 million. In the example of Chicago’s brag, “The Dark Knight,” Christian Bale’s $10 million initial pay would’ve qualified for a tax credit, along with that of three other actors, since the film poured well over $25 million into production.

Film-one1On set with Chicago Med

Photos courtesy NBC

Film-twoMackenzie Davis on the set of Station 11

Photo courtesy HBO Max

Hawley thinks the tax credit is more favorable than other big states for filming. “Illinois welcomes projects of all sizes, compared to Georgia, where the minimum spend is $500,000,” says Hawley, “Illinois is an ideal place for independent filmmakers as well as large studio productions. Ultimately, the changes to the incentives provide more opportunity for creators to develop content with Illinois in mind and reinforce the concept of Chicago and Illinois as a talent center and production center.” The strength of the state is upheld by the experienced crew, world-class vendors, rentals and infrastructure, as well as the renowned hotels, restaurants, museums and sports.

Another draw for the state is the state-of-the-art production infrastructure, which is expected to greatly increase in the coming years. TPG Capital purchased Cinespace Chicago Studios in 2021 with the intention to expand, and the studio is already the second largest film studio complex in North America at 1.5 million sq. ft. of soundstage space. Other upcoming projects include the doubling of square footage at Chicago Studio City, redevelopment of The Fields building, and the development of the $70 million production studio on the South Side, Regal Mile.

Last year, the Chicago Film Office launched an initiative sure to capture the attention of film enthusiasts and excitable students across the Loop with its Chicago Made program, powered by the Workforce Development fund. Chicago Made encompasses the film, television and music industries of the city in its promotion and development efforts. One significant goal is to expand the film production talent pool through a workforce development program.

Department of Cultural Affairs and Special Events Commissioner Erin Harkey said the Chicago Film Office team has “built a solid foundation with the launch of the Chicago Made workforce development program and many other initiatives that will accelerate the growth and economic gains of the local industry, while supporting residents in every neighborhood.”

The program focuses its efforts on residents between aged 25 to 50, and primarily from underserved areas of the city. In the fall of 2022, Chicago Made will host a professional development series that provides free workshops, panels and showcasing opportunities.