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TOKYO — The Kyoto city government will kick in Y200 million ($1.74 million) towards renovating Shochiku’s Kyoto Studio, government officials announced Tuesday.

That’s 10% of Shochiku’s $17.4 million studio rebuilding plan — the max allowed under the new regs.

The coin is the first from a new city initiative to promote industrial sites that was launched in March.

Located in Kyoto’s Uzumasa Ward, the studio is 215,278 sq. ft. in area, of which 64,583 sq. ft. are included in the new renovation plan.

On this site Shochiku will build two 5,381 sq. ft. and two 2,476 sq. ft. sound stages, together with the country’s largest digital screening room. The new facilities are skedded to open in spring 2009.

In a related development, Shochiku helmer Yoji Yamada (“The Twilight Samurai”) announced that he will shoot a pic in Kyoto with students from Ritsumeikan University, with the aim of nurturing screen talent in Japan’s ancient capital.

Yamada, who teaches part-time at the school, will make the tentatively titled “Kyoto Uzumasa koi monogatari” (Kyoto Uzumasa Love Story), set in Kyoto’s Uzumasa shopping district.

The pic is part of a wider initiative to use Ritsumeikan students as interns at the Shochiku Studio, while building a training facility for them on studio grounds, skedded to open in 2009.

Shochiku, Ritsumeikan and the Kyoto city government are partners in the plan, with the government contributing coin.