CEO says the deal validates small company’s big project
Medient Studios Inc. will receive $3 million in state incentives for creating 1,000 jobs at a production and entertainment complex in Effingham County.
Medient chairman and CEO Manu Kumaran said agreements with the state, which were approved unanimously Thursday by the Effingham County Industrial Development Authority, validate his small company’s big project.
“It’s recognition by independent third party of the validity of our project,” he said.
The deal with the Georgia Department of Community Affairs and Georgia Department of Economic Development calls for the company to receive a $3 million grant for site preparation and building improvements.
It calls for $750,000 to be released after the first 250 jobs have been created and maintained for 12 months. Another $750,000 will be released after another 250 jobs are created and maintained for 12 months.
And $1.5 million will be released after 500 more jobs are created and maintained for 12 months.
The agreement says if not for the incentive, Medient might have located the project in New York or Pennsylvania.
The deal calls for Medient to invest $90 million in the project. The company must provide some documents to the state within 30 days, including a timeline and expected average wage for the jobs.
Also on Thursday, the IDA agreed to extend from May 18 to May 31 the deadline for Medient to provide a financial due diligence report.
IDA CEO John Henry said Medient is finalizing the report. He said he and Chairman Dennis Webb will be out of town next week on IDA business and he wouldn’t be able to review the financials until the end of the month.
The company, based in Los Angeles, gave the IDA board members a timeline that calls for construction on roads, utilities and a suspension bridge to begin Sept. 9. Construction on a reception building, main studio and Leaf concert area would start soon after that.
Henry cautioned that the timeline was ambitious.
Kumaran said Thursday he has not yet repaid $125,000 that he still owes toward $175,000 for 77 percent of the issued and outstanding shares of the company that he bought in August of last year.
Medient’s annual report, filed April 16, said the money originally was due Dec. 31, and then the date was extended to April 30.
Kumaran said some technical registration and financial reporting issues must be resolved before he pays the remaining amount.
Medient announced plans March 19 to build a movie studio and entertainment facility in Effingham County, taking up most of the IDA’s 1,500 acres near Old River Road and I-16.
Earlier this month, the company announced a $40 million agreement with Prime Focus Limited to provide production and post-production equipment, work-flow technologies and other elements for the megastudio.
Meanwhile, Henry said Matthew Morris will start June 3 as the new project manager for the IDA. Morris, who is public works director for the City of Springfield, will replace Ryan Moore.
Moore left to become director of economic development for the Athens-Clarke County Unified Government.