Hangar42 was a complex, suspicious land deal involving $10 million in tax credits that the Mackinac Center first brought to light.
For the last six months, Mackinac Center reporter Kathy Hoekstra kept a list of the 20 or so parties involved in the deal by taping a piece of paper with their names on her wall to better track the scheme. With every development, Hoekstra updated the wall.
On Tuesday, Joe Peters — the buyer of Hangar42 — was charged by the Michigan Attorney General's office with one count of attempted felony false pretenses over $20,000, according to a press release. The AG office looked into the questionable Michigan film tax credit application Peters filed with the Michigan Film Office. The Mackinac Center called for an investigation by the Attorney General's office on June 17.
The AG's investigation came a month after the Mackinac Center's Hoekstra and Michael LaFaive broke the story May 20 of Hangar 42. Peters' company, West Michigan Film, purchased a large production studio for $40 million dollars.
Hangar42 — which was touted by Gov. Jennifer Granholm in her State of the State address — was said to be a $40 million investment. But Mackinac Center research showed the building was listed for sale as little as $9.8 million just days before the governor's speech mentioned the project. The studio qualified for a refundable infrastructure tax credit, which would represent 25 percent of the infrastructure investment in the project.
The Attorney General press release stated that the credit application was ultimately denied when Peters could not properly document the alleged investment.
The Michigan Film Office and Michigan Economic Development Corp. ignored questions posed by Hoekstra and LaFaive during the Mackinac Center's investigation.
"It's huge," said LaFaive, the director of the Mackinac Center's Morey Fiscal Policy Initiative, about the charge. "It shows the importance of independent investigation. How many more outside deals might we have exposed if the MEDC had not constructed a Berlin Wall around information."
Hoekstra said the goal was to protect taxpayer dollars.
"We want to make sure nobody is taking advantage of the system on the backs of Michigan taxpayers."
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See also:
YouTubes Praising Special Tax Breaks for Filmmakers Getting Yanked
Attorney General Heeds Requests for Investigation of Embattled Film Studio
Sorry — Your Film Office Success Story Was Not Found
State Websites Give History a Rewrite
E-mails Reveal That Film Office Chief Agrees With Criticisms of Embattled Studio Project
Funding Questions Surround Hangar42 Studios Deal, According to Center Analyst
Bills Would Demand More Info From Filmmakers Getting Special Tax Breaks
Senator Says House Is Stalling Reform of Special Tax Perks for Filmmakers
This Just In: Convicted Embezzler's Business Awarded State Tax Subsidy
Hangar42 Studios' Incentives Raise Questions
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FROM MICHIGAN HOME HELP PROGRAM PROVIDERS — OFTEN FAMILY MEMBERS
ATTORNEY GENERAL ORDERED THE STATE TO STOP TAKING MONEY ON MAY 25, 2012
opinion May 25, 2012
The Service Employees International Union (SEIU) "organized” Michigan's self-employed Home Help Program providers for the purpose of skimming dues from their ailing and disabled clients' Medicaid subsidy checks. The majority of these providers are relatives or friends taking care of loved ones. It’s been estimated that less than 25 percent of the providers are hired in an employment setting.
The first counter tallies SEIU dues skimmed since the union and state officials first launched this scheme in late 2006. The second shows the amount skimmed since June 9, 2011, when the Michigan House passed and sent to the Senate a bill to ban this and all similar “stealth unionization” efforts. The third counter shows the dues skimmed since the Governor signed the bill into law on April 10, 2012. The fourth counter shows the amount skimmed since May 25, 2012, when the Attorney General opinion was announced.
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