Questions & Concerns Raised at June 25 Public Forum

Photo by Charles Ramirez Berg

Read the original FAQs here.

PROCESS – Download Presentation Slides from the Forum [PDF]

Q: Why were local companies not considered for Stage 4?
A: AFS was approached with the inquiry from Soundcheck Austin via their Realtor. Any company, local or out-of-town, can call Catherine Parrington at 322-0145 ext. 3208 with inquiries about space availability.

Q: Why has AFS not been open about negotiations?
A: AFS has treated this negotiation like we do all of our clients. Who is renting Austin Studios and how much they are paying is private information.

Q: I am concerned about AFS’s lack of transparency and its ongoing communications with the production community.
A: Since founding Austin Studios, AFS has worked hard to maintain contact with the production community. We have held two meetings under the title “Futures of Film in Austin,” and the reports from those meetings can be found here: Infrastructure (2006, PDF) and Commercials (2008, PDF). We have held an annual summer crew party except in the summer of 2008 due to budget cuts. Our 2009 party is tentatively scheduled for September 13, 2009 and will be a joint party with Spiderwood Studios on their beautiful Bastrop backlot. We have filmmakers on our board of directors, our phone and office is open for visitors daily from 9:30 – 6:00.

We find that the biggest challenge is the changing availability of the community along with peoples’ wide variety of interests. When crew is working, they are not available, so a conversation that may have started when people weren’t working suddenly stops when a production starts.

As we prepare for acquiring the National Guard building in 2012, which we envision as a Digital Arts Hub serving a wide spectrum of filmmakers and film students, we will seek input from the community via open meetings.

FINANCING

Q: How was the $475,000 loan obtained, how will it be paid, and what is the length of the loan?
A: AFS received a low-interest (5%) unsecured loan from a private foundation, which we are required to pay back over 10 years.

Q: Has the lease that includes the reconfiguration to the National Guard site been signed?
A: No.

Q: Why wasn’t the chair of the 2006 Bond Oversight Committee contacted about Soundcheck Austin?
A: For AFS to sign a sublease does not involve the Bond Oversight Committee. Oversight of our subleases is handled through the Economic Growth and Redevelopment Services Organization of the City.

Q: What does the Austin Film Society do with the rent that you get from Austin Studios?
A: Rental income all goes straight back into Studios operations and management, marketing and capital improvements. Since we started we have put over $1 million of rental income back into repairs, maintenance and improvements.

PRODUCTION SPACE

Q: I am concerned about the loss of production space and mill space.
A: When the National Guard Building becomes available in 2012, the long-term tenants occupying Stage 1 will move there and Stage 7 will also become available. Between these two facilities we will be back to current production capacity, plus we will have the 6 insert stages managed by Soundcheck Austin, if that deal goes forward.

Q:When will Studios 6 & 7 be available?
A: 2012

Q: Would you consider building a mill/set dressing space close to production?
A: If a production company would like to build a mill with the expectation of recapturing their investment over time through waived rental plus rent from other sources, we would eagerly work with them.

SOUNDCHECK

Q: Is Soundcheck paying market rents and if so, how were these determined?
A: Yes, the going rate for flexible warehouse space and the amount of their upfront investment were the determining factors.

Q: I am concerned that Soundcheck will compete with my business by bringing in partners from Nashville.
A: Contact Ben Jumper of Soundcheck Nashville to discuss opportunities to partner.

Q: I am concerned that the length of the contract is five years.
A: The difficulty with making customer-funded improvements at Austin Studios is that most capital improvements require a long-term lease. Five years is a minimal amortization of Soundcheck’s $500,000 investment.

Q: Is there an exclusivity clause in the lease? [UPDATED 8/26/09]
A: Yes, companies that provide the same services as Soundcheck will be excluded. Anyone can rent equipment from any business located off site, and use such equipment on site, for as long as they like. The only restriction is that we won’t sublease to a business that is similar to _and_ a direct competitor to Soundcheck to operate on site for more than 60 days, and Soundcheck can’t operate a business competing with AFS’s film subtenants either.

1.             Exclusivity.  During the Term (i) AFS agrees to and will refrain from entering into any new subleases for the Primary Lease Premises which permit the operation of a business which is similar to and a direct competitor of SCA and such sublease is for more than sixty (60) days and (ii) SCA agrees to and will refrain from entering into any sub-subleases for the Premises for the filming of audio-visual works, except for the filming of music videos and the production and post-production of music videos, if another portion of the Primary Lease Premises other than the Premises is available and could be subleased by AFS for such purposes.  The exclusivity provisions of this Section 21 will not apply to any subleases existing on the Effective Date or any renewals, extensions or replacements of such subleases.

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