Join us tomorrow for an interview with Clay Frey, a local financial planner turned movie producer. Clay is talking about his B horror movie Dead On Site. We’re going to talk about the process, ups and downs and Tucson’s film industry.
At one time Tucson had vibrant film industry. It started during the popularity of the classic westerns and carried over to films into the 80′s, that I grew up with, like Can’t Buy Me Love. For a full listing HERE.
Southern Arizona had an entire industry of film trades people that movie and television production crews could tap into for the next TV miniseries or feature film. Within an hour of Tucson a production could be in saguaro forests or tall pined mountain tops. The scenic back drops are incredible.
With the arrival of film production companies came a lot of money. They hire local actors and behind the scene support personnel. They stay in area hotels and eat at local restaurants.
Even with great scenic locations, close proximity to L.A. and the creative talent needed, the film industry migrated away. New Mexico is where most of the productions and talent is now. NM went on a major buying spree for all types industries. Their plan to attract business came at a price. We are seeing now how New Mexico may have overstepped things a bit, which eventually lead to improprieties and scandals big enough to keep Gov. Richardson out of the Obama cabinet. Whether or not New Mexico’s investment will pay off remains to be seen.
We did a complete story on our local film history HERE a few months back.
The biggest hurdle facing Arizona’s film industry revolves around the structure of tax credits given to production companies to entice them to choose Arizona.
Just like spring training baseball stadiums that used to cost $28m and have now escalated to $125m, the stakes in the film industry have risen dramatically. Like many other economic incentives the community that offers the most money gets the business. Arizona has tried to implement a tax credit program but New Mexico issued a better one. Last year only $8m out of the total possible of $50m was claimed. The issue has to do with the amounts and levels of payouts as compared to competing states. It may not be the right year to sweeten the offering given our states financial mess but it’s going to take some work.
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The result of the state of New Mexico trying to subsidize film production is one good example of why no wise government should engage is what is laughably called business development (but is more correctly described as government subsidies).
As an example the US government should never have loaned General Motors $19.4 billion dollars. As GM slips ever closer to bankruptcy the government will be spending time, money and effort in meetings and negotiations which should never have occurred in the first place.
Neither the City of Tucson, Pima County, nor the State of Arizona has enough knowledge to decide what film is a good film and which isn’t, much less what a good level of business subsidy is (correct answer: none at all). It can only give away money and incentives to production companies at the expense of Arizona businesses and taxpayers who provided the loads of taxes in order that Film X may thrive at others expense.
Just as many have stated, the government cannot tax its way to prosperity, neither can the state of Arizona subsidize its way to prosperity.
For the record, the reason our Arizona Motion Picture Tax Credit Program has not been able to compete with New Mexico’s is not so much about “the amounts and levels of payouts” as your article states above. Our amounts and levels of payouts, by comparison with other US film incentive programs, rank within the top ten.
The primary reason that our program isn’t competitive is that certain requirements render it a difficult program for studios and production companies to access. These are flaws are being addressed with the legislature by local industry stakeholders like the Arizona Production Association, the Arizona Film and Media Coalition, the IATSE and film offices around the state.
Shelli Hall
Director – Tucson Film Office