DreamWorks to Finance 2 Films From Montecito

Montecito Picture Co., the movie production outfit formed last year by director Ivan Reitman and former Universal Pictures Chairman Tom Pollock, has gone into business with DreamWorks SKG.

DreamWorks has agreed to finance and distribute two films that will be produced by Montecito over the next seven months. The companies also are exploring a more extensive business relationship involving off-balance-sheet financing.

Pollock and Reitman, who launched their Santa Barbara- and Los Angeles-based company in partnership with PolyGram Filmed Entertainment, collected a multimillion-dollar settlement in February when the assets of PolyGram were absorbed by Seagram Co.’s Universal Studios.

Under the terms of the settlement, Pollock and Reitman retained ownership of the 18 projects they were developing. The partners are in discussions with various parties about pulling together $600 million in movie financing that will be a combination of bank credit, insurance, equity and studio backing.

DreamWorks has committed to fund and greenlight a big-budget comedy from Montecito, “Wish,” to be directed by Reitman and blending live action, animation and special effects (to begin shooting in early 2000) and a low-budget contemporary comedy titled “Road Trip,” to be directed by Todd Philips and begin shooting in October.

The value of the deal was not disclosed.