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Local Production Infrastructure Case Study: Cinelease Studios – Three Ring

Updated: Nov 21, 2023


Cinelease Studios – Three Ring, Covington. Image credit: Cinelease Studios – Three Ring


1.1.1. Introduction

Operational since 2020, Cinelease Studios – Three Ring has undergone a significant expansion to deliver state-of-the-art soundstages and studio facilities to productions shooting in Georgia.


Cinelease Studios – Three Ring is located in Covington,[KM1] Newton County. The development of Cinelease Studios – Three Ring was announced in 2017 with construction beginning in October 2019.[1] Three Ring opened in 2020 as a purpose-built film and television campus.


Today, Cinelease Studios – Three Ring sits on 90 developed acres with over 250,000 square feet of soundstage space after the recent completion of its $144 million expansion. The site also has 116,000 square feet of production offices and support space, 132,000 square feet of mill/workshop space, and an over seven-acre graded backlot pad. In addition, Cinelease – a national film rental and studio management company – also provides set lighting and grip rental and a full suite of studio management services on-site. A division of Herc Entertainment Services is also located on site and provides heavy equipment rentals to productions.[2] Notable productions have included the feature film The Tomorrow War (2021) and the television series The First Lady (2022), P-Valley Season 2 (2022) and Dancing with Myself (2022).


Cinelease Studios – Three Ring has demonstrated a consistent trajectory of growth and development since its inception. Since it first became operational in 2020 the studio has been leased at 100% capacity (as of publishing date) and clients have included Lionsgate, Paramount Pictures, and Skydance Media.[3] Originally encompassing 230,000 square feet across six soundstages, three mill spaces, 12 office bungalows, and a comprehensive backlot, the studio’s success led to the announcement of an ambitious $144 million expansion in 2022. The expansion added a further 300,000 square feet of production space, including 144,000 square feet for eight new soundstages and 20,000 square feet of support space. This recent expansion was a joint venture between Atlanta-based real estate firm Woodvale LLC and Chicago-based Timberhill Group.[4]


This expansion, completed in 2023, underscores the studio's unwavering commitment to fortifying its position in Georgia's film and television production landscape, promising further economic contributions and job opportunities in the region.


Cinelease Studios – Three Ring, Covington. Image credit: Cinelease Studios – Three Ring


1.1.2. Construction Activity

Cinelease Studios – Three Ring invested $162 million in studio construction between FY 2018 and FY 2022. There is a further $25 million planned for FY 2023 and FY 2024. FY 2021 was the highest construction year thus far when $91 million was spent.


Figure 47 Cinelease Studios – Three Ring Construction Expenditure by Year, Actual FY 2018 – FY 2022 and Anticipated FY 2023 – FY 2024 ($ million)



1.1.3. Summary of Economic Impact Results

The construction of Cinelease – Three Ring has stimulated a significant economic impact. The construction activity alone between FY 2018 and FY 2024 is estimated to support $250 million in output and $115 million in GVA. This section models the impact of construction only, but the ongoing production activity is also driving sustainable jobs and opportunities for the area.


The results presented in this section are the impacts of construction at Cinelease Studios – Three Ring that were generated between FY 2018 to FY 2022 and forecast between FY 2023 to FY 2024. SPI modeled the impact from construction expenditure data and utilized same I-O method utilizing IMPLAN but focusing on Newton County impacts only. Note that all results are in 2023 prices.


Construction spending at Cinelease Studios – Three Ring between FY 2018 and FY 2022 supported $162 million in direct output, $28 million in the supply chain, and $26 million resulting from subsequent wage effects in Newton County. A further $25 million direct output is anticipated in FY 2023 and FY 2024 associated with construction expenditure in that year, and a further $4 million is anticipated to be generated within the supply chain (indirect), accompanied by $4 million resulting from wage effects (induced).


In terms of GVA, construction at Cinelease Studios – Three Ring contributed a total of $99 million between FY 2014 and FY 2022 to Newton County. This is broken down into $72 million of direct GVA, $13 million in indirect, and $13 million in induced GVA. Between FY 2023 and FY 2024, the studio is projected to produce a further $15 million in total GVA.


During the same FY 2018 to FY 2022 timeframe, the construction activity at Cinelease Studio – Three Ring has resulted in the accrual of approximately $6 million in state and local tax revenues, stemming from direct, indirect, and induced activities. This is projected to be approximately $0.9 million for FY 2023 to FY 2024.


In FY 2022, construction of Cinelease studios supported460 jobs.[5] This includes those directly employed in construction, the construction supply chain and employment supported by construction workers (and those working in the supply chain) spending their wages in the local economy. Jobs supported by construction are set to reduce in the coming years as the construction investment falls. The number of production-related jobs has not been modeled but is likely to grow as new studio spaces come onstream.


Figure 48 Output Associated with the Construction of Cinelease Studios – Three Ring Actual FY 2014 – FY 2022, and Anticipated FY 2023 – FY 2027 ($ million)

Source: SPI analysis (2023)


Figure 49 GVA Associated with the Construction of Cinelease Studio – Three Ring Actual FY 2014 – FY 2022, and Anticipated FY 2023 – FY 2027 ($ million)

Source: SPI analysis (2023)


Figure 50 Labor Income Associated with the Construction of Studios, Actual FY 2018 – FY 2022, and Anticipated FY 2023 – FY 2024 ($ million)

Source: SPI analysis (2023)


Figure 51 Tax Associated with the Construction of Cinelease Studios – Three Ring Actual FY 2014 – FY 2022, and Anticipated FY 2023 – FY 2027 ($ million)

Source: SPI analysis (2023)


Figure 52 Jobs Supported by Construction Investments, Actual FY 2022

Source: SPI analysis (2023)



1.1.4. Wider Impacts

Cinelease Studios – Three Ring has demonstrated a commitment to the Covington Community. Notably, Cinelease Studios – Three Ring invested $2.3 million in funding for the Georgia Department of Transportation Expansion project for public road improvement. This project was to improve local roadways, to ensure better transportation flow and accessibility. Furthermore, between 2019 and 2023 Cinelease Studio – Three Ring has contributed $125,000 Micro and Local Impacts

 

[1] Film studio ready for leasing, nearing completion in Covington. The Covington News, 31st July 2020. Accessible at: https://www.covnews.com/news/film-studio-ready-leasing-nearing-completion-covington/ [2] Welcome Brochure. Cinelease Studios. Accessible at: https://issuu.com/cineleasestudios/docs/cinelease_studios_welcome_brochure?fr=sYmUxMzYwMTMzNjQ [3]Cinelease Studios- Three Ring Breaks Ground on $144 million Studio Expansion. Cinelease Studios, 23rd March 2022. Accessible at: https://cineleasestudios.com/cinelease-studios-three-ring-breaks-ground-on-144-million-studio-expansion/ [4]Woodvale, Timber Hill Secure Financing for Movie Production Campus Expansion in Covington, Georgia. Rebusiness Online, 2nd December 2021. Accessible at: https://rebusinessonline.com/woodvale-timber-hill-secure-financing-for-movie-production-campus-expansion-in-covington-georgia/

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