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Mr. Jake McEwan, Chief Executive Officer,
Keltic Canada Development (Keltic), appeared before the Committee outlining a
proposal to build a world class film studio on City-owned land located at
3990 Marine Way.
The delegation advised that Keltic’s
vision is to: develop a large-scale film studio in Burnaby, respond to an
increasing international demand for film production in BC, and attract a tier
one production firm through a Public Private Partnership project.
Mr. McEwan stated that one of
Keltic’s goals is to make Burnaby the hub for AAA film production, and added
that the development would include the following features:
·
17-acre
studio campus;
·
approximately
300,000 square feet of film production space;
·
several
studios ranging in size from 50,000 to 120,000 square feet;
·
offices
and support buildings; and,
·
50-70
feet high
The delegation presented two
options:
Option 1 – Land Lease Model
·
Keltic
pays for serving of the land and will lease the land from the City for a
minimum of 65 years with an annual payment;
·
the
project targets major streaming services and studios;
·
Keltic
secures an anchor tenant for a minimum 10-year term; and,
·
Keltic
develops and constructs purpose-built studios.
Option 2 – Public-Private
Partnership between Keltic and the City
·
Keltic
and the City create a joint venture company;
·
the
City provides the land and Keltic provides the design, equity financing, and
construction services;
·
a
joint management company is established to manage the studios;
·
company
shares are proportionate to the land value and equity provided by the
partners; and,
·
income
is split on the ownership level and any fees are negotiated.
In conclusion, Mr. McEwan advised
that Keltic’s preferred option would be to lease the land.
The Committee inquired regarding the
minimum amount of land required for the development project.
Mr. McEwan advised that a
large-scale film studio requires a lot of open space and noted that Keltic
would need a minimum of 12 acres.
The Committee expressed concern
regarding the long term viability of the film studio.
Mr. McEwan noted that the industry has
been growing for many years and expects the trend to continue. Further, Keltic
would only go forward on the development if they are able to secure a 10-20
year partnership with a company that provides streaming services such as Netflix,
Apple or Amazon. Keltic aims to build the best facility of its kind in the
region to outlast any competitor, in the event of a slowdown in the industry.
Arising from discussion, the
Committee introduced the following motion:
MOVED BY COUNCILLOR
mcdonell
Seconded by
COUNCILLOR dhaliwal
THAT the delegation’s proposal for use
of City-owned land located at 3990 Marine Way be REFERRED to staff for
a report.
CARRIED UNANIMOUSLY
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