The relocation was doubly bruising for Cella because it was announced just after California approved its film-tax credit program, which Cella lobbied heavily for and helped craft. The credits, however, don't cover game shows.
Still, Cella predicts that the tax deal will attract some TV shows back to California.
For The Record
Los Angeles Times Thursday, July 16, 2009 Home Edition Main News Part A Page 4 National Desk 1 inches; 54 words Type of Material: Correction
Hollywood production drop: An article in Sunday's Section A about the struggles facing small businesses that serve the film and TV industries said that James Cella, president of Culver Studios, previously ran Steiner Studios in New York. Cella served as a senior consultant for Steiner and lobbied for tax credits that helped launch it.
For The Record
Los Angeles Times Sunday, July 19, 2009 Home Edition Main News Part A Page 4 National Desk 1 inches; 56 words Type of Material: Correction
Hollywood production drop: An article in the July 12 Section A about the struggles facing small businesses that serve the film and TV industries said that James Cella, president of Culver Studios, previously ran Steiner Studios in New York. Cella served as a senior consultant for Steiner and lobbied for tax credits that helped launch it.
"If we don't do something now, there's going to be nothing left," he said.
Sorenson, of 24/7 Studio Equipment, also is pinning his hopes on the state tax credits to spur business. A major studio film can generate $75,000 in rental income for a company like Sorenson's. But this year, 24/7 has worked mostly on a few low-budget films such as Screen Gems' "The Roommate." His company's feature film business has plummeted 50% since 2007.
Sorenson made up for the shortfall by renting out equipment to TV shows, but even that is no longer a sure bet.
One of his customers, the HBO series "Hung," filmed three months in L.A. and two months in Michigan, which offers a 42% tax credit. Another customer, the TNT series "Leverage," has opted to film its second season in Portland, Ore., which offers a 20% cash rebate on qualified expenses.
"It would be a lot different if we were smoking busy," he said. "But . . . every rental right now is like a precious jewel."
Local prop houses also are struggling from the downturn. Some have recently closed and others have cut their payrolls.
Modern Props laid off 17 workers last month. The company owns a 120,000-square-foot warehouse that contains 80,000 props.
"I was in shock," said Luis Peniche, 21, a former sales assistant who lost his $25,000-a-year job after two years at Modern Props. "I really loved working there. It was like family."
Unable to pay his rent, Peniche moved into his sister's apartment in Van Nuys. He also stopped taking classes at Santa Monica College because he couldn't afford the books and tuition. "I'd love to work in the entertainment industry, but it's just so bad out there."
Zabrucky launched the company 32 years ago, specializing in leasing furniture, lights and electric control panels to sci-fi TV shows such as "Buck Rogers in the 25th Century" and eventually to some of the biggest movies in Hollywood, including "Die Hard," "Ghostbusters" and "Men in Black."
