Vancouver: Historically, the urgent declaration ‘The British are coming!’ heralded the American Revolution and the invasion of rock stars. Today, at least in Vancouver, a more recent onslaught of Brits is heralding substantial business for local producers.

Since 1999, there are at least seven productions certified as Canada-u.k. coproductions. Features include The Guilty, The Operative and The Gateway, while television series include The Magician’s House and The Immortal. New features include Kevin of the North and, in July, Ignition.

Ballpark estimates peg the value of production at $87 million, which might be about $87 million more than what was generated by u.k. partnerships in the past.

In trying to capitalize on the momentum, the British Columbia Film Commission hosted a business development forum in London May 17 to cultivate relationships between u.k. and b.c. producers.

‘We do Burbank really well,’ says Commissioner Mark DesRochers, referring to his agency’s primary role as a liaison for u.s. studios and networks. ‘However, there is now the impetus to promote and broker opportunities for our domestic producers. There is a unanimous feeling about [working with the u.k.] that we can and should pursue. We have a kinship with the British in how business is done that’s a wee bit more civilized than dealing with the u.s.’

The one-day event at the Canadian High Commission in London featured two panels: ‘Doing Business in b.c.,’ which detailed the legal, financial, labor and tax incentives issues; and, ‘Business Done in b.c.,’ which featured the u.k. coproduction case studies of The Guilty (Dogwood Pictures) and Magician’s House (Forefront Entertainment).

About 80 people attended, including the 20 producers and industry representatives who traveled from b.c. to participate.

‘We need to diversify our market by expanding into the international community,’ says DesRochers. ‘Several competitive advantages – such as aggressive tax incentives and a favorable exchange rate – position us well to emerge as a preferred business partner in the global marketplace.’

The Commission, adds DesRochers, is trying to expand its next Grand Tour of Europe to include Germany, which is another key potential coproduction partner for Canadian producers.

For its part, Vancouver’s Peace Arch Entertainment is experimenting with its first u.k.-coproduction with the us$24 million syndicated series The Immortal, starring Lorenzo Lamas as a 400-year-old man seeking vengeance for the slaughter of his family. Production on 22 episodes began May 1 and, as part of the coproduction deal, the last two episodes of the first season will be shot in the u.k.

John Nicolls, director of business affairs at Peace Arch, says the deal is an 80%-20% split with Studio Eight, a London-based company owned by Canadian Jamie Brown, who is one of two people responsible for the recent spurt of growth of u.k. business in Vancouver.

‘It’s been a steep learning curve, a real administrative hassle,’ says Nicolls, referring to the complex issues including currency exchanges, certifications, and geography incumbent in a multinational deal. ‘But we’d do it again. It’s been worth it financially.’

Among the many benefits of striking a u.k. partnership is the ‘sales leaseback transaction,’ a British tax shelter program that provides a u.k. partner with a tax shelter equal to 100% of a production’s budget, even though the British partner’s contribution to the project might be as little as 20%.

In the case of The Immortal, the yield to the production from the sale leaseback transaction is about 10% of the overall season one budget, which more than makes up for the Canadian tax credits lost to Peace Arch because it only owns 80% of the show.

According to Nicolls, Peace Arch can claim 80% of the applicable Canadian tax credits which contribute another 10% to 15% of the show’s budget.

Foreign sales (for example, Immortal is sold to TeleMunchen) account for 50% of the budget and u.s. and Canada sales provide the balance.

Meanwhile, because the series is certified Canadian and British, Immortal commands higher broadcast licence fees in both the new and old worlds.

‘We wouldn’t have gotten the European sales we have without the e.u. content,’ says Nicolls. At press time, negotiations were ongoing with a Canadian broadcaster and the show was sold to 70% of the u.s. syndication markets. Hilltop Entertainment and Western International Syndication, both of Los Angeles, are handling u.s. and foreign sales. Immortal’s partner Jamie Brown – a notable player in the recent rush of u.k. business – is a Canadian who moved to London in 1992 in order to capitalize on coproductions as ‘the only way to pull off the kind of financing I needed to make the films I wanted.’

Before his departure, he had been a partner in Telescene Communications in Montreal, where he presided over the production of Urban Angel, called the first indigenous Canadian series to be sold to the u.s. (cbs). Now, through his own company Studio Eight, he qualifies as either the Canadian or the British partner in the coproduction deal. And he has forged local coproduction deals involving the London-based Europa and Vancouver’s Dogwood Pictures, Milestone Entertainment and Peace Arch.

‘b.c. has changed immeasurably,’ observes Brown. ‘The level of professionalism is up and there is great depth of talent in casting.’

He attributes the growth of u.k. coproductions to a greater familiarity with the business model. ‘More people are doing it,’ he says. ‘In fact, Vancouver is late in doing it.’

The other key player in the u.k. invasion is Thomas Hedman of Europa pictures, who is backing both Kevin of the North and Ignition and completed The Guilty here last year. All three films involve Lisa Richardson’s Dogwood Pictures.

‘I make American-type movies,’ he explains. ‘So the real reason I make movies here is because Vancouver can stand in for the u.s. There is also a lower cost of production and the British-Canadian coproduction treaty allows for financial incentives in both Canada and the u.k. that are quite substantial.

‘My experience has been very positive,’ Hedman adds. ‘The only draw back is some restriction. For instance, [under the coproduction treaty,] we can only have one American star. But we can put together a cast that will open well to a u.s. audience.’

After Ignition wraps later this summer, Hedman will produce Canada-u.k. coproduction Murderer in Toronto.