Posted 27 July, 2008 in CA News
*This from Nikki Fink, deadlinehollywoodda ily.com:
EXCLUSIVE:* Over the weekend, /Iron Man/ director Jon Favreau organized a meeting with Marvel Studios producer Lou D’Esposito, California Film Commission member/producer Stanley Brooks, and actor Tom Arnold with California Governor Arnold Schwarzenegger to talk about the problem of runaway production. During the Saturday lunch at Caffe Roma in
Beverly Hills, Schwarzenegger pledged to reach across the aisle and push for tax break legislation starting this week in Sacramento.. …..Saturday’ s meeting was pushed by Favreau who wants to keep /Iron Man 2/’s $140 million production in Los Angeles. The director’s motivation is personal — the family man has a clause in his contracts saying his shoots must stick close to home. (During the luncheon, Schwarzenegger boasted that, on /Terminator 3,/ he used millions of dollars of his own
money to keep the production in California. People I’ve asked about this say it’s news to them…) Favreau deserves kudos for wanting to leverage his new-found clout for the greater good of the Hollywood community……Here’s one reason why this lobbying effort might succeed where others have failed: I’ve learned that Marvel Studios intends to build a $600 million production facility in the Los Angeles area if the state makes
it worth their while. But during lunch Schwarzenegger explained that the problem isn’t him: it’s the state legislature looking at a $15+ billion budget shortfall…. Since Hurricane Katrina, Louisiana is making a nice living off of hosting Hollywood productions by offering 25% cash rebates or tax credits for all in-state spending on things like equipment rentals, food, hotel rooms, and, at a lower rate, labor. The result is that in
2007 Louisiana had 53 film and television projects that pumped $400 million into the state’s economy. Its program has been so successful that other states have upped their incentive programs to stay competitive. New York recently boosted the showbiz tax credits on below the line expenses for qualified productions to 30% (up from 10%), and Mayor Michael Bloomberg added an extra 5% if a project is made within New York City limits. Unlike about 40 other states, California does not offer a tax credit program to keep Hollywood at home. So the number of film production days shot on location in Los Angeles has plummetted
nearly 40% since 1997, according to FilmL.A. Inc, a non-profit group that handles film permits. What’s at stake? Well, a major production can pump tens of thousands of dollars a day into local economy what with hotel room stays, catering, services and permits. One figure cited is that 3 weeks of filming of /Memoirs Of A Geisha/ generated more than $4 million for Sacramento and El Dorado counties
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