Incentives Lure Blue Sky to Greenwich

The deal, which was finalized in late December, brings the 625,000-sf building to full occupancy. Cushman & Wakefield's Jay Hruska, who represented the building owner Greenwich American Center Inc., says Blue Sky Studios has leased the entire top floor of the building. CB Richard Ellis' David Block and Paul Jacobs represented Blue Sky in the deal. C&W officials say that Blue Sky currently occupies approximately 42,000 sf of leased space on a direct basis at 44 South Broadway--Westchester One--and also has approximately 60,000 sf of sublease space. CB Richard Ellis had no comment on the lease deal. A spokesman for Blue Sky Studios and 20th Century Fox says it is "too premature to discuss."

Hruska says Blue Sky, a digital animation production company, is looking to take occupancy of its space at Greenwich American Centre by mid-year. Knowledgeable real estate sources say that a critical facet to the relocation move from White Plains will be incentives offered by the Nutmeg State for digital media and motion picture production firms. In 2006 the Connecticut General Assembly passed a law that establishes a tax credit equal to 30% of qualified digital media and motion picture production, pre-production and post-production expenses incurred in Connecticut that exceed $50,000.

In 2007 the state, which has launched a major effort to attract film production firms to the state, enhanced the incentives by passing a law that establishes new transferable tax credits against the corporation and insurance premium taxes for investments in state-certified film and media infrastructure projects and digital animation productions. Digital animation production credits are limited to an aggregate of $15 million per year, according to the statute.

A spokesman for the Connecticut Department of Economic and Community Development says that negotiations are ongoing between Blue Sky Studios and the State of Connecticut regarding incentives. However, he would not offer any details on the talks.