I can't connect Photos to iMovie (need iCloud? seriously?)

So someone upgraded the work computer while I was away to Photos (from iPhoto).

I was making a movie in iMovie, and the iPhoto Library was there as a menu item in iMovie. Great. Easy.

Now, Photos don't appear in iMovie.

So I go to Photos, and make my library the System Library. Done. Good.

But then I get a dialog box that tells me you can't use Photo Library unless you have iCloud. It asks me to upgrade iCloud for $$$.

What? I can't connect 2 apps on my own computer without paying $$$ to iCloud? This makes no sense.

Is there a workaround?

Thanks.

Kristen