Two bills already approved by the state Senate that would bring transparency to the Michigan Film Office are being held up by the chair of the state House tax policy committee, a state senator claimed Wednesday.

State Sen. Nancy Cassis, R-Novi, sent a letter dated June 8 to Kate Ebli, D-Monroe, calling on the Democrat to take action on Senate Bill 796 and Senate Bill 889. Ebli had a hearing on the bills in February.

In the letter, Cassis mentioned the Hangar42 controversy. Hangar42 Studios was involved in a land deal that involved a refundable infrastructure tax credit worth 25 percent of the investment in the project.

In her letter citing reasons for the House to act on her bills, Cassis also mentioned the Mackinac Center for Public Policy's report that broke the Hanger42 story open.

"I think there is real impetus now with Hangar42," Cassis said. "She (Ebli) is holding it up. There is no question about that in my mind. Now the time has come that we can make the case that to hold back this information is extremely problematic."

Ebli didn't return a phone message left at her office or an e-mail.

The studio agreed to buy the facility for $40 million. It is located at the site of a former Lear Corp. manufacturing facility in Grand Rapids.

But as late as February, the facility had been listed by a realtor for $9.8 million. It raised the question of why investors would pay $40 million for a building that did not sell when listed for a quarter of that price. In addition, contractors hired to help convert the property into a studio said they had not been paid. There were also six liens outstanding. 

Wood TV Channel 8 picked up the Mackinac Center story and reported that the Michigan Film Office said in an e-mail that it was directed by the Attorney General's office and Treasury Department to not divulge either an approval or denial of the $10 million tax credit.

The story has spurred legislators to propose bills to make the film tax credits more transparent.

Senate Bill 796 and Senate Bill 889 were both passed by the state Senate.

Cassis said SB 796 would require the Treasury Department to release post-production certificates awarded to movie companies to certain members of the Legislature.

SB 889 amends the Revenue Act to allow the state treasurer to release post-production tax certificates.

"Given that the Film Office has consistently cited 'confidentiality' in declining to provide information regarding film projects, I believe quick action on SB 796 and SB 889 is crucial," Cassis wrote in the letter.

Chinese officials are considering rules that would make it more difficult for local government to seize property from individuals and turn it over to developers without at least compensating the property owners, according to a report in the May 27, 2010, edition of The New York Times. East Lansing officials may want to pay attention.

Government taking of private property in China has led to considerable civil unrest including several cases of suicide of victimized property owners. Chinese officials may be more worried about rapidly escalating real estate values and a possible future real estate bubble than individual property rights, but at least people resisting the government taking of their property has gotten the Chinese government's attention.  

East Lansing officials would be correct to point out that the situation regarding private property rights in China is much different than that in Michigan, where eminent domain is subject to federal constitutional as well as state constitutional and statutory protection. Businesses and property owners in the East Village area of East Lansing, however, have discovered that the threat of a blight designation by city officials has a serious negative impact on property values and can even threaten the future viability of their businesses.

The East Village area is a 35-acre neighborhood with 2,000 residents and 600 housing units. The area is typical of neighborhoods near universities and features well-maintained apartments, businesses and homes. City planners apparently have other ideas for the area. According to the city's master plan for the East Village area, they would like to replace students living in the area with residents of all ages and lifestyles and a more "diverse" commercial mix, including retail and office uses.  

The best laid plans of central planners seldom deliver the promised benefits but instead violate private property rights and destroy existing economic investment in the community. East Lansing officials should abandon any elements in their East Village master plan that diminishes existing property values and threatens the property rights of residents and businesses in the area.