YOUNGSTOWN, Ohio (WKBN) – Odyssey Motion Pictures spoke to the Youngstown Housing, Community and Economic Development committee Thursday night to consider giving them a float loan.
A float loan is when money is provided for a business, then the business can use the funds for a certain period of time, without making payments. Once revenue is generated, the money is then paid back.
The production company is made up of Marc Clebanoff and Louis Mandylor.
Nothing was passed, they simply told the committee why Youngstown would be a good destination for film production.
“The float loan program, that’s a very unique incentive that provides a really interesting opportunity for our business partners,” Clebanoff said.
Youngstown’s Director of Economic Development T. Sharon Woodberry said the Youngstown float loan program charges a 0.25 percent interest rate up front.
Odyssey Motion Pictures expects their first film to cost around $2 million, just $5,000 in interest. The money is guaranteed to be paid back because of an irrevocable letter of credit, one that cannot be canceled by a bank.
“The city then draws down on a letter of credit, and we’re paid in whole,” Woodberry said.
Movies can also make cities money outside of their production value.
“We hire local catering companies, cater us. We had local security guards there. We did have some landscaping companies as well. The list will go on, from hair, make-up supplies in town,” said Fred D’Amico of the Youngstown Film Commission.
“In terms of the actual production and logistics, it’s all spent locally and it adds up very quickly,” Clebanoff said.
Clebanoff also said they would only film, rent or hire outside of city limits if it’s not available.
Committee members said they still want some time to discuss the loan before anything is made official.