The filmmakers who made "Tides of War" on O'ahu in 2004 are gearing up to start production on a movie based on Island ghost stories next month on O'ahu.

Regent Entertainment Group, one of the most prolific producers and distributors of niche-market, independent film and television programming in the world, may also bring its supernatural film series "Dante's Cove" to Hawai'i, possibly as a television series, according to Regent CEO Stephen Jarchow.

Jarchow was in Honolulu last month to meet with local investors, do research on the as-yet-unnamed film project and talk to local screenwriters and producers about other potential Hawai'i-based projects.

Jarchow, who's had a wide-ranging professional life as an attorney, accountant, real-estate developer, owner of a mortgage company and medical-supply business, law professor and, most recently, motion-picture executive, has proven able in turning a profit in the film industry. Last week, film-industry magazine Variety reported that Jarchow and Regent had set up a $50 million credit account with Merrill Lynch to cover prints and ads for the company's movies over the next three years.

These days, Jarchow's compass is pointing west to Hawai'i, where he says versatile locations, skilled professionals and attractive investment tax incentives are a good fit for his company's low-budget film and TV projects.

A reasonable return on investment is his priority. "In making our movies, we really try to do it cost-effectively, and we use all the available co-production arrangements that are available in the world," Jarchow said.

Regent keeps the cost of its film productions low — usually $3 million to $4 million — and aims to make a profit in national and international markets. Regent has produced scores of action, horror and dramatic films, as well as gay-themed programming that can be used on its gay and lesbian cable network, which goes by the name here!

Regent's film "Hellbent" is the first horror film with an all-gay male cast, according to reviewers. Regent has also co-produced several profitable martial arts films with Hong Kong filmmakers. Regent has backed 40 films in Canada over the past few years, in addition to projects in Britain, Argentina and the Caribbean.

Jarchow admits that some Regent films are better than others, but he says the company isn't all about mass producing low-budget, safe-return films. His most compelling defense is the critically acclaimed "Gods and Monsters," which won an Oscar for writing (screenplay based on material from another medium) in 1998.

A 2004 Regent documentary, "The Hunting of the President," explored Republican efforts to discredit and indict then-President Bill Clinton, also received good reviews.

In addition to the here! cable network, Regent has plans for at least two more niche services, including an Asian-American-themed network in the next couple of years, Jarchow said. The company also owns two theaters in Los Angeles and Dallas, and is investing heavily in video-on-demand services.

The company's interest in Hawai'i as a production center could help the Island film industry, providing steady work and opportunities for local crews.

"What is impressive about (Regent's) background is the number of films they've been able to produce, their ability to make things happen," said Hawai'i Film Commissioner Donne Dawson. "They keep the pipeline full by not overreaching with big budgets that will suck up resources."

Dawson said the potential impact of Regent bringing more projects to Hawai'i isn't just economic.

"It can help us keep moving forward by improving the skill set and providing more experience for people here," she said. "That's very important for work force development."

Jarchow said post-production facilities would make the state more attractive, but while Hawai'i does not yet have the complete film infrastructure that Canada has, it does have much to recommend it, creatively and economically.

"Hawai'i is not an inexpensive place to make movies because it is a very unionized environment and, as you well know, things are costly here," he said. "But it really gives you a different look. In terms of providing program solutions to broadcasters like ourselves, it gives us an opportunity to diversify what we're doing."

Jarchow said he learned about the state's Act 221 investment tax credit three years ago and spent time researching its possible benefits for his company. Regent and Pacific Films put Jarchow's knowledge to the test with the 2004 submarine adventure movie "Phantom Below," also known as "Tides of War."

A Japanese buyer was looking for a submarine movie, so Jarchow wrote the treatment and got the buyer to sign off on it.

With local line producer Genie Joseph overseeing it, the production completed Hawai'i filming in three quick weeks, using an almost exclusively local crew. (Special effects were done in Los Angeles.)

The film allowed several experienced crew members to move up a rung, an opportunity typically denied them on bigger-budget Hollywood productions.

"We tend to get people on their way up or on their way down," said Jarchow, matter-of-factly. "We function in a different world (than big-budget productions) because we do things a little more cost-effectively and we move a lot quicker, but it's still a wonderful experience for these people to have."

One version of the film, with a secondary gay story line, was produced for the here! network. A "straight" version was distributed internationally.

The film is on track to turn a profit by next year as scheduled, Jarchow said.

Regent and Pacific Films' second Hawai'i film production was to have been a disaster epic about a hurricane that hits a nuclear plant, but the special effects required were too expensive, Jarchow said.

Instead, Jarchow spent a week digging up local ghost stories with his Hawai'i-based assistant Christina Simpkins, a photographer, actress, and producer of the documentary "Wahine O Ke Kai."

True to Regent's rapid-turnaround practices, initial photography and location filming began last month, even as the screenplay was being conceived. Jarchow said he's committed to a February start for production.

A decision on "Dante's Cove" should also come soon. Previous films in the series were shot in the Caribbean.

"There's no reason why it couldn't be shot here," he said. "We're researching if we can get some economies of scale by combining three or four movies. A lot kind of depends on how we do with fundraising."

Reach Michael Tsai at mtsai@honoluluadvertiser.com.