Business
On a Hollywood studio lot, a new New York comes to life
Last summer, when the Hollywood writers’ strike had shut down film and television production, a crew of scenic painters at the legendary Fox Studio Lot took advantage of the lull to mess up New York City.
Work had recently been completed on a new set of façades meant to mimic Manhattan streets, but the result was too pretty and clean. Even the smooth gray concrete curbs looked suspiciously fresh.
“After the curbs were perfectly poured, we had a gentleman with a jackhammer come in here and chip away at them,” said Gary Ehrlich, president of studio operations. “It was slightly heartbreaking to see.”
Today, the curbs are suitably beaten up, with dings and black smears as if tires had been rubbing against them for decades. Fire escapes look corroded and other metal fixtures such as banisters have been coated to look old or rusty, while walls appear water-stained. A patina of age has settled over this faux city.
A film crew gets ready for a shoot at the new New York set at Fox Studios in Los Angeles on March 26, 2024. The new set that is different from conventional backlot façades because it has stages inside the New York “buildings” where filming can take place.
The painstaking besmirchment of New York Street was one more twist in the long saga of one of filmdom’s most famous outdoor sets. Looming near the front gate like an adult-sized playhouse, an earlier version of the set and now the new one have long served notice to visitors that they have arrived at a movie studio that is itself a leading character in Hollywood lore.
Its lineage is suitably rich in Hollywood flavor: In 1967 Fox was preparing to shoot the film version of “Hello, Dolly!,” a Tony-award winning musical set in 1890s New York City that ran for years on Broadway. The script included a spectacular outdoor parade with thousands of extras, and studio executives determined that it would be impossible to shoot on location in New York because the city had changed too much.
Fox production designer John DeCuir, who had already won Academy Awards for his design of “The King and I” and “Cleopatra,” came up with a streetscape that required more than 500 workers to labor for four months to build. The $2.25-million price tag made it the most costly movie set built to date, the UPI news service reported at the time.
It required more than 300,000 feet of board lumber and 22 miles of telephone wire strung between poles, the way it was in old New York. A painted 11-story office building façade obscured the view of the Century Plaza Hotel looming next to the lot, according to Barbra Archives, which chronicles the career of “Hello, Dolly!” star Barbra Streisand.
Barbra Streisand marches with a band in a scene from the 1969 romantic comedy “Hello, Dolly!” filmed on Fox’s New York set in Century City.
(John Springer Collection / Getty Images)
Dominating the street was a replica of an elevated train station and a steam locomotive acquired from a sugar plantation in Hawaii, where it had been used to transport workers.
On July 16, 1968, the Valley Times reported, “The parade stretching one-fifth of a mile and comprised of 675 persons in 16 units passed through a crowd of 3,108 film extras” in period costumes. Among the performers were the UCLA marching band and the Budweiser Clydesdales. The director was actor-dancer Gene Kelly.
As impressive as the set was, it was intended to be temporary, said Michael Whetstone, a production designer who worked on building the new version of New York Street.
“It was supposed to be torn down but wasn’t because it was too expensive” to remove, he said. At the time the studio was reeling from financial setbacks including a $30-million loss on “Hello, Dolly!,” according to the New York Times.
Maintenance and prop makers James Scobie, left, and Norm Greene, work on the façade of the new New York set at Fox Studios .
The set enjoyed a second, money-making act in the years that followed as Fox rented it out for use on pictures that included Warner Bros.’ comedy “Up the Sandbox,” starring Streisand, and MGM’s musical “New York, New York,” starring Liza Minnelli and Robert De Niro. Among the television shows that used it were “Charlie’s Angels” and “Moonlighting,” while Bruno Mars, Lady Gaga and other musicians used it for music videos.
But a few years ago, with the set showing its age, the studio started considering its replacement, Ehrlich said. “It had been exposed to the elements for five decades and was past its useful life.”
Fox tapped Culver City architect Nathan Moore of House & Robertson Architects to design something sturdier.
Construction required 49 tons of rebar and more than 1,000 cubic feet of concrete. The set is held up by 260 tons of structural steel and backed inside with 4,400 square feet of catwalks. Lighting and other electrical functions are supported with 21,000 square feet of conduit and wire, allowing productions to hook up to house power instead of rolling in generators. The set also had to comply with building codes and be tracked by city building inspectors.
The new New York Street was made to look like the city in the mid 20th century, a decision that required detailed craftsmanship such as window heads and sills that would have been carved out of wood in years past but were instead fabricated out of plastic foam and finished with plaster. Windows were installed to be easily replaced so productions can break them when scenes call for it.
Whetstone oversaw the project and, as part of his research, made several trips to New York, spending long hours on foot trying to get a sense of how light plays on buildings at night.
“I was literally walking Lower Manhattan from 10 p.m. to 4 in the morning taking pictures,” he said.
Where the original “Hello, Dolly!” set was based on a commercial section of 1890s New York suitable for a parade, Fox elected to make the new set feel like a neighborhood from a later era.
“It’s more Lower Manhattan, more Bowery,” Whetstone said. “Definitely the Lower East Side.”
A film crew member waits to set up for a shoot at the new New York set.
While the set is “a default vision of New York City,” said Whetstone, it also is intended to stand in for any major city. Through the years, Fox’s New York Street has subbed for Chicago, Washington, D.C., and Pasadena.
Even though improving camera technology through the years has made it easier to shoot on location, there are reasons filmmakers keep shooting on studio lots, said Jason E. Squire, entertainment podcaster and professor emeritus at USC School of Cinematic Arts.
As filming equipment and cameras got lighter and more portable, the more free-flowing New Wave cinema that emerged in the late 1950s and ’60s employed provocative camerawork.
“This liberation led to people shooting off the studio lot,” Squire said. “Filmmakers wanted to get away from the studio.”
But it has remained expensive to shoot a large-scale production in the real world with all the vehicles, equipment and personnel required to be transported and managed on-site.
“One of the key decisions early in any production is whether to build sets on a lot or shoot in a real location,” Squire said. “That depends on how intricate the sequences are going to be, how intimate. It’s a judgment call and a money call, and the money usually wins.”
Shooting behind studio gates also prevents uncomfortable collisions between fantasy and reality.
“On the lot you don’t have interference from civilians,” Squire said. “You can control traffic, you can control lighting. All of the equipment is at your beck and call.”
Whetstone recalled having to flee location shooting in downtown L.A.’s Arts District when working on Season 1 of “New Girl,” a Fox television comedy starring Zooey Deschanel that premiered in 2011.
“We started out shooting in downtown Los Angeles, and by the end of our fifth night shoot we had angered so many of the neighbors around in the community that we ended up building downtown L.A. on the Fox lot,” Whetstone said.
Gary Ehrlich, president and general manager of studio operations at Fox Studio Lot, shows off the scaffolding for lighting inside one of the buildings in Fox’s new New York Street set.
The makeover of New York Street is in addition to a planned $1.5-billion upgrade of the Fox Studio Lot announced last year by Fox Corp. that is to include more soundstages and offices. Fox Corp. retained ownership of the lot when Walt Disney Co. bought most of 21st Century Fox’s entertainment assets in 2019.
The upgrades come as the real New York mounts an aggressive effort to lure TV and movie producers from L.A. by building new studios and soundstages.
On New York Street in Los Angeles, Fox also was able to transform the set behind the façades, adding 4,000 square feet of interior space that makes it easier to meld outdoor and indoor action. The studio declined to reveal exactly how much the new multimillion-dollar set cost, but Fox wants it to stand for another half-century at least.
“This project was approached not just as temp architecture but as something more permanent,” Whetstone said. “We want this to last a long time.”
Business
Courts rejects bid to beef up policies issued by California’s home insurer of last resort
Retired nurse Nancy Reed has been through the ringer trying to get insurance for her home next to a San Diego County nature preserve.
First, she was dropped by her longtime carrier and forced onto the state’s insurer of last resort, the California FAIR Plan, which offers basic fire policies — something thousands of residents have experienced at the hands of fire-leery insurance companies.
But what she didn’t expect was how hard it would be to find the extra coverage she needed to augment her FAIR Plan policy, which doesn’t cover common perils such as water damage or liability if someone is injured on a property.
She secured the “difference-in-conditions” policies from two insurers, only to be dropped by both before finally finding another for her Escondido home.
“I’ve lived in this house for 25 years, and I went from a very fair price to ‘we’re not insuring you anymore’ — and I’ve had three different difference-in-conditions policies,” said Reed, 71, who is paying about $2,000 for 12 months of the extra coverage. “And I’m holding my breath to see if I will be renewed next year.”
Now, a Department of Insurance regulation that would have required the FAIR plan to offer that additional coverage has been blocked by a state appeals court — leaving the plan’s customers to find that insurance in a market widely considered dysfunctional.
The court ruled earlier this month that the order would have forced the plan to offer liability insurance, which was not the intent of the Legislature when it established the plan in 1968 to offer essential insurance for those who couldn’t get it.
“We appreciate that the court confirmed the California FAIR Plan is designed and intended to operate as California’s insurer of last resort, providing basic property coverage when it cannot be obtained in the voluntary market,” said spokesperson Hilary McLean.
Insurance Commissioner Ricardo Lara said he is “looking at all available options” following the decision. “I’ve been fighting so people can have access to all of the coverage the FAIR Plan is required by law to provide,” he said in a statement.
Lara has faced criticism from consumer advocates who’ve called for his resignation over his response to the state’s ongoing property insurance crisis.
A FAIR Plan policy covers fires, lightning, smoke damage and internal explosions, as well as vandalism and some other hazards at an additional cost. But in addition to water damage and liability protection, it doesn’t cover such common perils as theft and the damage caused by trees falling on a house.
The demand for the additional coverage — commonly referred to as a “wrap-around” policy — has become even greater than in 2021 when Lara issued the order overturned on appeal.
The FAIR Plan at the time had about 160,000 active dwelling policies following a series of catastrophic wildfires, including the 2018 fire that nearly destroyed the mountain town of Paradise. By September, that number had grown to 646,000.
The insurance department lists less than two dozen companies that offer wrap-around policies, including major California home insurers such as Mercury and Farmers and a a number of smaller carriers.
Broker Dina Smith said that to find the coverage for her home insurance clients she needs to place about 90% of them with carriers not regulated by the state — with the combined coverage typically costing at least twice as much as a regular policy.
“The [market] is very limited,” said Smith, a managing director at Gallagher.
Safeco has not written California wrap-around coverage since the beginning of the year and will begin non-renewing existing policies next month. Smith also said carriers are being selective, with the ones that offer the coverage often demanding exclusions, such as for certain types of water damage.
“If I’ve got a newer home with no prior claims … for liability losses, it’s going to be easy to write. If I get a home that is built in the 1950s that might still have galvanized pipes … that’s going to be a tough one,” she said.
Attorney Amy Bach, executive director of United Policyholders, a San Francisco consumer group, said the difference-in-conditions, or DIC, market is getting just as problematic for homeowners as the overall market.
“The market is not as strong as it needs to be … given how many people are in the FAIR Plan, and there aren’t as many DIC options — with the DIC companies being just as picky as the primary insurers,” she said.
There is also confusion about the policies, she said. Her group is considering pushing for a law next year that would clearly label the coverage so consumers better understand what they are buying.
Business
Student Loan Borrowers in Default Could See Wages Garnished in Early 2026
The Trump administration will begin to garnish the pay of student loan borrowers in January, the Department of Education said Tuesday, stepping up a repayment enforcement effort that began this year.
Beginning the week of Jan. 7, roughly 1,000 borrowers who are in default will receive notices informing them of their status, according to an email from the department. The number of notices will increase on a monthly basis.
The collection activities are “conducted only after student and parent borrowers have been provided sufficient notice and opportunity to repay their loans,” according to the email, which was unsigned.
The announcement comes as many Americans are already struggling financially, and the cost of living is top of mind. The wage garnishing could compound the effects on lower-income families contending with a stressed economy, employment concerns and health care premiums that are set to rise for millions of people.
The email did not contain any details about the nature of the garnishment, such as how much would be deducted from wages, but according to the government’s student aid website, up to 15 percent of a borrower’s take-home pay can be withheld. The government typically directs employers to withhold a certain amount, similar to a payroll tax.
A borrower should be sent a notice of the government’s intent 30 days before the seizure begins, according to the website, StudentAid.gov.
The administration ended a five-year reprieve on student loan repayments in May, paving the way for forced collections — meaning tax refunds and other federal payments, like Social Security, could be withheld and applied toward debt payments.
That move ushered in the end of pandemic-era relief that began in March 2020, when payments were paused. More than 9 percent of total student debt reported between July and September was more than 90 days delinquent or in default, according to the Federal Reserve Bank of New York. In April, only one-third of the 38 million Americans who owed money for college or graduate school and should have been making payments actually were, according to government data.
“It’s going to be more painful as you move down the income distribution,” said Michael Roberts, a professor of finance at the Wharton School at the University of Pennsylvania. But, he added, borrowers have to contend with the fact that they did take out money, even as government policies allowed many to put the loans at the back of their minds.
After several extensions by the Biden administration, payments resumed in October 2023, but borrowers were not penalized for defaulting until last year. About five million borrowers are in default, and millions more are expected to be close to missing payments.
The government had signaled this year that it would send notices that could lead to the garnishing of a portion of a borrower’s paycheck. Being in collections and in default can damage credit scores.
The government garnished wages before the pandemic pause, said Betsy Mayotte, president of the Institute of Student Loan Advisors, which provides free advice for borrowers. But the 2020 collections pause was the first she was aware of, she said, and that may make the deductions more shocking for people who have not had to pay for years.
“There’s a lot of defaulted borrowers that think that there was a mistake made somewhere along the line, or the Department of Education forgot about them,” Ms. Mayotte said. “I think this is going to catch a lot of them off guard.”
The first day after a missed payment, a loan becomes delinquent. After a certain amount of time in delinquency, usually 270 days, the loan is considered in default — the kind of loan determines the time period. If someone defaults on a federal student loan, the entire balance becomes due immediately. Then the loan holder can begin collections, including on wages.
But there are options to reorganize the defaulted loans, including consolidation or rehabilitation, which requires making a certain number of consecutive payments determined by the holder.
Often, people who default on debt owe the smallest amounts, said Constantine Yannelis, an economics professor at the University of Cambridge who researches U.S. student loans.
“They’re often dropouts or they went to two-year, for-profit colleges, and people who spent many, many years in schools, like doctors or lawyers, have very low default rates,” he said.
This year, millions of borrowers saw their credit scores drop after the pause on penalties was lifted. If someone does not earn an income, the government can take the person to court. But, practically speaking, a borrower’s credit score will plummet.
Dr. Yannelis added that a common reason people default was that they were not aware of the repayment options. There are plans that allow borrowers to pay 10 percent of their income rather than having 15 percent garnished, for example.
The whiplash policy changes around the time of the pandemic were “a terrible thing from a borrower-welfare perspective,” Dr. Yannelis said. “Policy uncertainty is really terrible for borrowers.”
Business
Kevin Costner’s western ‘Horizon’ faces more claims of unpaid fees
In the midst of attempting to complete filming on his western anthology ”Horizon: An American Saga,” Kevin Costner is facing another legal dispute over the production.
On Monday, Western Costume Co. sued Costner and the production companies behind the epic western, claiming unpaid costume fees and damages to some of the clothing during the filming of the series’ second episode.
“The costumes are costly to replace if damaged or not returned,” states the complaint, which included copies of invoices for about $134,000 in costume rentals. “Without a reasonable basis for doing so and/or with reckless regard to the consequences, defendants failed to pay for the rented costumes and failed to return the costumes undamaged.”
Western Costume, the iconic business based in North Hollywood, is seeking to recover roughly $440,000, including legal fees, according to the lawsuit filed Monday in Los Angeles Superior Court.
A spokesperson for Costner did not immediately respond to a request for comment.
The lawsuit is the latest in a series of legal and financial problems that have dogged the sprawling western drama, which Costner directed, co-wrote, starred in and partially funded.
In May, United Costume Corp., sued the production, claiming $350,000 in unpaid fees for the first two chapters of “Horizon.” Two months later, the costume firm filed to dismiss the suit with prejudice.
In May, Devyn LaBella, a stunt performer on “Chapter 2,” sued the production for sexual discrimination, harassment and retaliation in Los Angeles Superior Court. LaBella alleged an unscripted rape scene was filmed without the presence of a contractually mandated intimacy coordinator.
In a motion filed in August to get the suit tossed, Costner said he had reviewed LaBella’s complaint and was “shocked at the false and misleading allegations she was making.”
In October, a Los Angeles Superior Court judge denied Costner’s anti-SLAPP motion to dismiss the case. The judge also denied LaBella’s claim that Costner had interfered with her civil rights through the use of intimidation or coercion with respect to her participation in the filming of a rape scene, but allowed several of her other claims to proceed.
The case is pending.
The production is also facing an arbitration claim for alleged breaches in its co-financing agreement with its distributor New Line Cinema and City National Bank, “Horizon” bondholder, according to the Hollywood Reporter.
In June 2024, “Chapter 1” of the planned four-part series was released in theaters followed by a streaming broadcast on HBO Max, but it was largely panned by critics.
In its review, The Times described “Horizon” as “a massive boondoggle, a misguided and excruciatingly tedious cinematic experience.”
It failed at the box office, grossing just $38.8 million worldwide, on a reported $100 million budget.
“Chapter 2” premiered at the Venice International Film Festival last September, but its theatrical release was pulled and remains indefinitely delayed, while the final two chapters remain in production or development, according to IMDb.
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