Nov 06, 2009 (The Wichita Eagle - McClatchy-Tribune Information Services via COMTEX News Network) --

A $90 million plan to convert key pieces of downtown real estate into a movie studio could go before the Wichita City Council as early as this month.

The plan, which would be funded by industrial revenue bonds and tax breaks, would utilize all or part of Cox Communications' Union Station campus and the old Spaghetti Works building to make movies in Kansas. Both buildings are near Intrust Bank Arena.

That's property that's been targeted by city officials and downtown redevelopers for retail and commercial development.

But the studio's chances of luring feature-length films to Wichita are hurt, movie industry observers say, by Kansas' refusal to match the substantial financial incentives that other states offer Hollywood to film there.

Wichita City Manager Robert Layton said Wednesday that he's sticking to his position on Union Station: The property is key to downtown's redevelopment and is well-suited for mixed-use office and retail development.

But Layton said the city's downtown redevelopment consultant, Boston-based Goody Clancy, doesn't think the studio is incompatible with a broader plan to redevelop downtown.

"I do have a traditionalist's view, and that's mixed-use," Layton said. "That makes great sense in building the neighborhood.

"But if you have a unique economic development opportunity, including a tourism piece, well, I can't tell you right now if that's good or bad."

Layton said city staff is reviewing the studio proposal, which also includes a request to abate taxes on any improvements at the site. The Wichita City Council would have to vote on a tax abatement.

City staff also is vetting developers and equity partners in the project, the city manager said.

"Until we get all the answers and we're comfortable moving forward, I can't tell you when this will go on the agenda," Layton said.

The developers hope to get a vote as soon as Nov. 14.

The Spaghetti Works building asking price is $3.25 million; price tag for Union Station is $6.4 million.

'Critical negotiations'

The studio project is the brainchild of California businessman Jackson Hill, who confirmed the plan on Wednesday.

Hill said the studio would bring more than 1,000 jobs to downtown Wichita over the first year. But he was hesitant to discuss the plan in detail, beyond confirming that no property has been purchased.

"We're in critical negotiations across the board with everything," he said. "I don't want to derail it all."

Former Wichita Mayor Bob Knight said he's helping Hill with the proposal, but declined this week to elaborate.

Same with Wichita investment banker Theron Froggate, who confirmed that he's involved in the project but referred all questions to Hill.

Cox vice president Jay Allbaugh reiterated the company's desire on Union Station to make a "good deal for Cox and be a good steward of a significant piece of the community's property."

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