Lucas recently announced that he is combining his film production, video game and special effects companies under one name, Lucasfilm Ltd. The four companies, Lucas Digital, LucasArts Entertainment, Lucas Licensing and Lucasfilm will relocate from Marin to the 850,000-sf Digital Arts Center campus in 2005, when the project is completed.

At the groundbreaking ceremony, Lucas said that the new project would "put a stake in the ground" for San Francisco as a filmmaking city. "San Francisco has always had a quality of filmmaking that most people have not been able to recognize--we always get shoved under the title Hollywood," he added.

Last year, Lucasfilm signed a ground lease with the Presidio Trust worth $5.8 million annually in rent.

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