UPDATED: Eastland Mall movie studio plan ‘on life support’

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CHARLOTTE – The $300 million plan to bring a movie studio complex to Eastland Mall, two years in the making, is hanging on by the tiniest string of the thinnest thread after last week’s meeting of the City Council Economic Development and Global Competitiveness Committee.

City staff members have been in exclusive discussions since Oct. 1 with Studio Charlotte Development, the company vying to roll out a film studio and mixed-use development, but the six-month memorandum of understanding that gave the company exclusive negotiating rights will expire on March 31.

Last week’s meeting was intended to give committee members an update on the status of talks between the city staff and Studio Charlotte, but no real update was given and committee members were unimpressed with Studio Charlotte’s demands.

The Economic Development Committee will meet again on March 20, but mainly for a presentation on the city’s options once the memorandum of understanding expires at the end of the month.

Brad Richardson, the city’s economic development manager, said the city would be smart to consider dividing the parcel and letting multiple developers work at the 80-acre site. The city staff has concluded that the Eastland Mall parcel is likely too big for one developer to make viable, Richardson said.

The city could still work with Studio Charlotte, even if the mall site is divided, because the company’s first phase called for building sound stages on just 30 acres. But Bert Hesse, CEO of Studio Charlotte, said he wants the entire site or none of it.

“If we agree to develop a portion of the site and other developers come, they’re only there because we’re there,” Hesse said. “They’re going to make money because we’re there.”

But Studio Charlotte getting the entire Eastland site right now is about as likely as the city opting to open a mall on the property off Central Avenue.

At last week’s committee meeting, Hesse asked for a five-month extension of the memorandum of understanding and asked that the city pay half of the cost of a proposed environmental study on the site. Both requests were stonewalled by the Economic Development Committee, which comprises council members Michael Barnes, Vi Lyles, Al Austin, Claire Fallon and LaWana Mayfield. Hesse said an environmental study would need to be done no matter what development was planned, adding that no developer will pay the full price for that study if they don’t own the land.

The committee wasn’t required to take action on the extension request since it will expire at the end of the month. Committee members made it apparent that they were willing to explore other options for Eastland.

“It’s time for the committee and this city to go in a different direction to get something started,” Fallon said.

After the meeting, when asked if the plan to bring the film studio to Eastland Mall was dead, Hesse said it wasn’t dead but it was “on life support.”

Once the memorandum expires, the city is free to pursue conversations with other developers on potential redevelopment at the site. The city will be under some pressure to find a suitable partner, since in 2012 it paid $13.2 million for the parcel, and has since paid nearly $1 million for the demolition of the mall building. Since the purchase, city officials have extolled it as an opportunity to revitalize Charlotte’s East Side.

One option for redevelopment could come from a past contender: Ark Ventures.

When the city initially issued a request for proposals from developers, it got two responses. One was the Studio Charlotte plan, and the other was from local development company Ark Ventures, a company related to The Ark Group, which developed The N.C. Music Factory.

Ark had planned to bring a $154 million recreation and entertainment complex to the site, which included an artificial ski slope and a skate park. Later phases of the plan called for a small film studio and some residential development.

Noah Lazes, president of Ark, said Friday he is interested in starting discussions with the city about his company’s proposal, but only if those discussions with the city are exclusive. Lazes said if the city chooses to have another RFP process, Ark won’t be taking part. He said he would like a negotiation period similar to the one that has been afforded to Studio Charlotte.

The city hasn’t revealed specifically what it plans to do if and when the memorandum of understanding with Studio Charlotte expires, but will discuss its options at the March 20 meeting of the Economic Development Committee.