Long-Term Business Plan: Central Oregon Studios, Inc.
EXECUTIVE SUMMARY:
Our strategic investment of $20,850,000 in Central Oregon Studio, Inc. promises diverse revenue streams and substantial returns through three feature films, leveraging Oregon's 35% Tax Rebate (25% goods/services + 10% labor from OPIF, plus 10% additional R-OPIF for projects outside Portland Metro Zone with at least 6 production days and more than half outside Portland) to develop a thriving film and television hub in Central Oregon.
Overview of Investment Opportunity
Central Oregon Studio, Inc. offers a unique investment opportunity to pioneer a film and television industry in Central Oregon. The investment will focus on acquiring and developing 100+ acres of land, funding three feature films, and creating subsidiary businesses. A key aspect of the investment strategy is to utilize the film production budgets to leverage Oregon's tax incentives for equipment and set builds, maximizing returns and creating additional revenue streams through subsidiary businesses.
Key Highlights
Land Acquisition: Investment funds will support the purchase and development of 100+ acres of land in Central Oregon.
Leveraging Film Production Budgets for Tax Incentives: By strategically using the film production budgets to garner tax incentives on equipment purchases and set builds, investors can maximize returns and create additional revenue streams through subsidiary businesses.
Conclusion
Central Oregon Studio, Inc. presents an exciting investment opportunity to participate in the growth of Central Oregon's film and television industry. Join us in creating a dynamic entertainment hub and maximizing returns on investment.
CENTRAL OREGON STUDIO, INC
Detailed Allocation of Investment Funds
Central Oregon Studio, Inc. has meticulously planned the allocation of the $20,850,000investment, with a strategic focus on land acquisition, film production, and the establishment of subsidiary businesses. Below is a detailed breakdown of how the funds will be utilized:
1. Land Acquisition and Essential Infrastructure
$1 million allocated for the acquisition of 100+ acres of land, laying the foundation for our movie ranch project.
$1.1 million designated for the construction of a production office on-site, as well as essential rentable items (including a water truck, generator, and 2 Humvees), and operational and marketing expenses for the first year.
2. Investment in Feature Films and Rental Companies
The remaining $18,750,000 will be invested in three feature films: 'The Defiled, LLC.,' 'Rowdy, LLC.,' and 'Operation Jericho, LLC.’ ($6,25M each).
Funds from each film's budget will be allocated for the acquisition of various essential equipment categories, including Cameras & Sound equipment, Grip & Electric gear, Props & Set Dressing items, and Costumes. Approximately $1.9 million is allocated from all three films, utilizing this approach to access the Oregon Film Tax Incentives on equipment purchases.
With the procurement of equipment categories, Central Oregon Studio, Inc. will establish new rental businesses, each operating as a subsidiary of the parent company, to cater to the diverse needs of film productions.
This comprehensive allocation strategy ensures that the investment funds are utilized effectively to support the development of Central Oregon Studio, Inc. and its associated projects, maximizing returns and fostering long-term growth in the region's film and television industry.
OWNERSHIP & PROFIT SHARING
The Investors will hold ownership shares based on the percentage of investment contributions, with 10% of shares reserved for the developer(s). Central Oregon Studio, Inc. will serve as the parent corporation, overseeing a diverse portfolio of revenue streams aimed at creating a dynamic ecosystem for the film industry in this region.
Feature Films ROI & Waterfall
Equity Investor are in First Position to recoup at a rate of 95/5 from dollar 1. Production retains 5% from dollar 1 to cover DGA & SAG-AFTRA residuals and additional marketing expenses. After Investors recoup 120% of principal, equity sharing ensues. Ownership is split 50/50 between Investors (on a pro rata basis) and Producers (creators). Any 3rd party back-end participants (i.e., Talent) comes from the Producer’s 50%.
Revenue Diversification
In addition to film production, Central Oregon Studio, Inc. will own all equipment and sets built from the films, creating opportunities for the development of new subsidiary businesses, including Movie Ranch, Camera Rentals, Grip & Electric Rentals, Props & Set Dressing Rentals, Costume Rentals, Production Office Equipment Rentals, and more.
$1 MILLION FOR PROPERTY ACQUISTION
Land Acquisition for Movie Ranch
Central Oregon Studio, Inc. will invest $1 million to purchase 100+ acres of land strategically located within 45 minutes of Redmond, Oregon Airport, providing convenient access with a direct 2-hour flight to LAX. This ideal land will offer unobstructed views of snowcapped mountains, a blend of flat terrain and rugged landscapes reminiscent of the old American West and Afghanistan farm villages and mountain ranges. The acquisition of this land serves as the foundation for our subsidiary Movie Ranch Business.
Set Construction from Film Budgets
By utilizing the film production budget to construct movie sets on the acquired land, we tap into Oregon Film Tax Incentives (36.2%). This strategy involves allocating $714,400.00 from 'The Defiled' for the Western Town set and $476,000.00 from 'Operation Jericho' for the Military Forward Operation Base and Afghan Village Sets. This approach ensures we maximize our benefits from Oregon's tax incentives while laying the foundation for a new subsidiary business that will generate revenue through future film/TV productions as a rental.
Movie Ranch Projected Return on Investment (ROI)
The annual return on investment for our Movie Ranch is directly tied to the duration of rentals and the established weekly rental rates. For instance, with rentals averaging 10 weeks per year at a rate of $15,000 per week, the projected annual revenue amounts to $150,000. Extending this to 40 weeks of rentals, maintaining the same rate, would result in a projected annual revenue of $600,000. Furthermore, there's potential to maximize revenue by renting both Movie Sets simultaneously, effectively doubling the rental income. industry and the establishment of subsidiary businesses, our investment promises to positively impact the local economy and create lasting opportunities for growth and sustainability.
$18,850,000.00 FILM INVESTMENT
The $18,750,000.00 investment funds will go toward Three feature films, Rowdy, Operation Jericho, and The Defiled.
The investors will own 50% shares in each of the films and will recoup at a rate of 95/5 from dollar 1. Production retains 5% from 1 dollar to cover DGA & SAG-AFTRA residuals and additional marketing expenses. After Investors recoup 120% of principal, equity sharing ensues. Ownership is split 50/50 between Investors (on a pro rata basis) and Producers (creators). Any 3rd party back-end participants (i.e., Talent) comes from the Producer’s 50%.
ROWDY - Budget $6.25 million
OPERATION JERICHO - Budget $6.25 million
THE DEFILED - Budget $6.25 million
Within each feature film budget, designated funds are allocated for the purchase of essential filming equipment, including Cameras, Sound, Props, Set Dressing, Wardrobe, Cube Trucks, and Production office supplies. This strategic investment approach not only facilitates the creation of five distinct subsidiary rental businesses—Camera & Sound Rental, LLC., Grip & Electric, LLC., Props & Set Dressing, LLC., Costumes, LLC., and Production Supplies, LLC. —but also earmarks additional funds specifically for Set Construction. Notably, a portion of these funds is dedicated to constructing the Western Town set, the Military Forward Operation Base, and Afghan village sets, laying the groundwork for our subsidiary rental business, the Movie Ranch, LLC. These subsidiary businesses, collectively owned by Central Oregon Studio, Inc., will significantly contribute to our diverse revenue streams, ensuring long-term financial growth and sustainability.
Furthermore, by leveraging the film production budget for these investments, we gain access to Oregon Film Tax Incentives, thereby maximizing our financial benefits and enhancing overall profitability.
OREGON TAX REBATE ESTIMATES
Oregon media incentive programs can rebate 25% of your Oregon-based goods and services, and an additional cash payment of up to 26.2% of payroll wages paid to production personnel working in the state. The turnaround of cash rebate payments is quick and efficient.
Oregon offers no sales tax and provides extra incentives for regional production, potentially resulting in savings of over 30% for projects based here.
There are two main incentive programs in Oregon: The Oregon Production Investment Fund (OPIF) and the Greenlight Oregon Labor Rebate program (GOLR). Both of those are available to projects spending more than $1M here in the state and, combined, they rebate 26.2% of payrolled labor working in the state and 25% of goods and services bought or rented from Oregon registered companies.
In addition, as part of the OPIF program, we also offer two other incentive programs – the “local” OPIF (or L-OPIF) and the “regional” OPIF (or R-OPIF).
L-OPIF can be utilized by projects spending less than $1M (down to $75k) in the state but they need to be projects being produced by local producer or production company and are utilizing at least 80% Oregon residents as their speaking cast + crew.
R-OPIF is available to any OPIF or L-OPIF participating project that is shooting some or all of its production outside of the Portland Metro Area.
The $4,173,276.40 Oregon Tax Rebate from all three films can be paid back to the Investors as returns on their investment. Alternatively, these funds could be allocated towards marketing initiatives for each film, potentially increasing revenue streams. Another option is to reinvest the rebate into infrastructure development, fostering long-term profitability and sustainability.
POTENTIAL RETURNS FROM SUBSIDIARY RENTAL BUSINESSES
MARKETING and ATTRACTION
Central Oregon Studio, Inc. will leverage a multi-faceted marketing approach. Our strategy encompasses a high-impact media blitz, press releases to major industry publications, and a spectacular Live Event on the movie ranch. We will also maintain a strong online presence with a dynamic Social Media Campaign.
In addition, Central Oregon Studio, Inc. will benefit from the marketing and advertising efforts associated with each film’s marketing plan, as well as the press generated from celebrities working on the films. This combined effort is expected to draw the interest of filmmakers, industry professionals, and the local community, creating opportunities for additional income through film productions, set rentals, and equipment rentals.
This strategic allocations of the $5 million investment positions Central Oregon Studio, Inc. for substantial growth and profitability in both the film industry and the subsidiary businesses.
CONCLUSION: Maximizing Returns and Ensuring Sustainability
Our strategic investment of $20,850,000 in Central Oregon Studio, Inc. promises not only diverse revenue streams but also substantial returns on investment. With a detailed breakdown of investments into land acquisition, film production, and subsidiary businesses, investors can expect significant profitability.
The investment in 100+ acres of land for the Movie Ranch, coupled with the construction of essential infrastructure and the purchase of equipment, lays the groundwork for a robust subsidiary business model. By leveraging the film production budgets to acquire assets such as cameras, sound equipment, and set construction materials, we unlock access to Oregon Film Tax Rebates, maximizing financial benefits.
The anticipated Return on Investment (ROI) of 120% per film investment, coupled with income from subsidiary rental businesses, presents a lucrative opportunity for investors. With projected revenues from rentals of movie sets, equipment, and other assets totaling over $1.2 million annually, the investment demonstrates strong potential for long-term growth and profitability.
Central Oregon Studio, Inc. is poised not only to generate substantial returns for investors but also to foster economic development in Central Oregon. Through the creation of a thriving film industry and the establishment of subsidiary businesses, our investment promises to positively impact the local economy and create lasting opportunities for growth and sustainability.
