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Wouldn't
we be lucky if Arizona had some gorgeous, God-given beauty that
could make us a fortune? And wouldn't it be wonderful if this state
had been blessed with vistas and valleys that could become a
lucrative "clean industry" - bringing money and jobs without
pollution or depletion?
Can you imagine such a gift? Just think how movie and television
producers would flock to Arizona. And think of the rooms they'd rent
and the equipment they'd need and the people they'd hire and the bar
tabs they'd pay.
If only Arizona could be more like her fortunate neighbor, New
Mexico. The "land of enchantment" knows what it has, and it's passed
incentives to make sure that everyone else knows, too. They're
raking it in over there, those lucky devils.
Why, why, why couldn't the Almighty have bestowed on Arizona some of
the same gifts it gave to Colorado, where the movie industry is
thriving? But wait a minute! Arizona is blessed with a beautiful
landscape. In fact, there are unlimited numbers of places in Arizona
that are drop-dead gorgeous. Not only that, but within its
boundaries, there are seven of the nine climate regions found in
North America. Now that's something.
The thing is, New Mexico doesn't have that kind of diversity.
Neither does Colorado, nor any of the other neighboring states. Yet,
all of them are raking it in from the movie industry, while in
Arizona, filmmaking is on the decline.
There's definitely something wrong with this picture. Arizona has
managed to squander this golden opportunity, and, as usual, the
source of the blame is the state Legislature.
Arizona has been the backdrop for movies since the early days of the
old Westerns, and thousands of films have been shot here since then.
In 2003, for example, a total of 427 projects were filmed in
Arizona. And last year, among other things, Bisbee was the setting
for the $9 million television movie based on Stephen King's novel
Desperation.
And when you look at the raw numbers, they seem impressive. The film
industry in Arizona today translates to $107 million in direct
economic activity - that number is nearly doubled when you add up
the indirect activities. A new state report also finds that the film
industry created 612 jobs with almost $22 million in direct wages -
indirectly, there were 1,700 jobs and more than $56 million in
wages.
But when state officials look at those numbers, they know they're
not only down from previous years, but they're just a fraction of
what Arizona could be bringing in.
"We are at a crossroads," says Deputy Commerce Director Joe Yuhas,
who runs the state's film office. Competition has never been fiercer
for the film industry dollar, he says. Not only have many states
realized what a bonanza this is - and most have instituted economic
incentives as a lure - but foreign countries also offer great
filming opportunities at even cheaper prices. So, for Arizona to
keep what it has and eventually grow, it has to reverse what's been
happening.
"Over the past several years, the film budget has been cut," Yuhas
explains. "The budget high occurred in the mid-1990s at $800,000.
Now, it's below $300,000. At one time, we had a staff of eight in
the film office. Now, there's two-and-a-half. Overall, there's a
lack of commitment - film production wasn't considered a priority."
Unfortunately, when you start digging into those numbers, you find
that they're even worse than they sound. Until last June, Arizona
didn't even have a full-time director for its film office. And for
three years, the director had been a part-time employee of the
commerce department.
The result of that neglect can be seen in dollars and cents. Since
2000, employment declined in Arizona's film industry by more than 26
percent, according to a report prepared by the Arizona Department of
Commerce. At the same time, average annual salaries for film
industry jobs dropped by 25 percent. Only 21 percent of Arizona
production money comes from out-of-state sources, while in Colorado,
it's a whopping 75 percent.
But instead of seeing the red flag they'd created with their budget
cuts, the Legislature has constantly been thinking of new ways to
decrease the state's efforts at economic development. In a move seen
as stunningly stupid, some lawmakers actually wanted to eliminate
the state's tourism office and close the commerce department. Keep
in mind, this is a state were tourism is the No. 2 industry, and the
commerce department focuses on rural economic development.
Thankfully, cooler heads - and a governor who wouldn't put up with
such foolishness - prevailed.
This legacy is well known to everyone who dreams of a strong film
industry in Arizona, and everyone involved is hoping the new
Legislature will be more enlightened, because they think this
investment can pay off big, not only in Arizona's cities, but in its
rural communities as well.
"While we're retreating, other states have stepped up - other
countries have stepped up," Yuhas notes. And everywhere they've
stepped up, they've cashed in.
A dramatic example sits on our eastern border. In 2002, New Mexico's
Legislature and governor agreed to invest in their film industry as
an economic boost - they enacted legislation that provides sales tax
exemptions, income tax credits and no-interest loans on film
productions. The year before those incentives took place, New Mexico
brought in $8 million from the film industry. During 2003, the first
year of the incentives, the state saw a 10-fold increase, to $80
million. (Apparently, Robert Redford is so impressed with what New
Mexico is doing - and what it has to offer - that he's considering
becoming the state's spokesman.)
New Mexico's phenomenal jump isn't an aberration, officials insist.
"There is no reason to believe this couldn't happen in Arizona," the
commerce report notes. A ten-fold increase in Arizona's film
industry would elevate the state to the billions bracket.
But first, Arizona must overcome a tarnished reputation. "Arizona
does not appear on the radar screen of most film production
companies," according to the report. "The stigma with Arizona is
that the industry as a whole thinks there are not enough skilled
crew in Arizona to support the needs of out-of-state productions."
And one perception fuels another - since they don't think the
professionals are here, the professionals that are here have to go
elsewhere to work. But there's also a good-news part of this
message: "In spite of the fact that jobs in this industry have
declined over the last several years, Arizona has a solid foundation
to build upon."
To get back on track, Arizona needs to do two things, according to
the report: It needs to strengthen the local film industry and
promote Arizona to out-of-state production companies. The report
isn't calling for the kind of big incentives that New Mexico offers,
but it does suggest a tax rebate for using Arizona talent, technical
expertise and equipment. But, most significantly, it offers a wide
range of creative ways to cash in on the film cash cow.
For instance, it suggests creating a collaborative partnership to
launch a "Film in Arizona" marketing campaign. It suggests
strengthening film programs in high schools and community colleges;
sponsoring an annual statewide film festival; creating a revolving
loan fund with lending institutions for independent filmmakers; and
creating an annual filmmaking camp to inspire children in this
field.
Perhaps more than anything, Arizona needs to streamline its customer
service to make it easier and more efficient to film in Arizona.
"This higher level of customer services requires substantially more
resources than are currently available at the… film office," the
commerce report notes.
In concert with those suggestions are plans for marketing and
promoting Arizona - some ideas are so obvious, you wonder why
they're still on the drawing board. Can anyone doubt that
advertising Arizona to the film industry is a good idea?
The report suggests advertising Arizona's film possibilities in
Hollywood newspapers, working the national and regional trade shows,
establishing personal relationships with production companies, and
helping the state's film festivals.
"We know that for every 100 film industry jobs, another 182 jobs are
generated to service the industry,'' Yuhas notes. "But film
production doesn't just happen - it happens because of cooperation."
Last December, the film office took a group of civic leaders to
Southern Arizona to visit the set of Stephen King's movie. And to
listen to the movie's producers on why they'd chosen Bisbee. "We
fought tooth and nail to film this in Arizona," the executive
producer told The Arizona Republic. Disney, the company footing the
multi-million-dollar bill for the show, wanted them to go someplace
that had tax incentives. "We lobbied like crazy at Disney," Mark
Sennet says. "I cut my salary, the director cut his salary and
Stephen King cut his salary. It was so much more money for us to
come here."
The historic look of Bisbee was exactly what they were after, and so
they took drastic measures to shoot there - with lots of urging from
Governor Janet Napolitano, the film office and the citizens of
Bisbee. But while they pulled it off this time, few think many film
companies would be such purists and pay so much extra to film in
Arizona.
Bisbee's Mayor Dan Beauchamp welcomed the movie's economic impact on
his town. He noted that a crew of about 150 people filled up the
town's hotels, ate in the restaurants, spent evenings in the bars,
and shopped in the antiques stores.
"For rural Arizona, the film industry can be huge," Yuhas stresses.
"But to think it just happens is risky at best, and, frankly, is a
recipe for disaster."
"We recognize times are lean, but we need more resources," he
explains. "This is another example of the failure to invest [in
Arizona's overall well-being], but the governor is committed to
reversing this. I am optimistic. I'm finding seeds of support in the
Legislature."
For the governor's part, she recently revived the state's Film and
Television Commission to give it more moxie and to make the case for
the kind of incentives that could take the state's film industry
into the stratosphere. Among the marquee names on the commission are
actor Leslie Nielsen, former TV newsman Hugh Downs, actor/director
Rick Schroder and Cindy McCain, the wife of Senator John McCain. In
addition, the governor is supporting Senate Bills 1346 and 1347 by
Senator Toni Hellon (R-Tucson), which would offer tax incentives to
companies that film in Arizona. Those bills have mixed support, and
even if they pass, there's a long way to go.
"Only five states in the nation spend less than Arizona on economic
development," Yuhas notes. But a new sense of cooperation and
commitment is emerging, he stresses. What Arizona does not have in
money, "we have to make up for in sweat and spirit," he says.
Good point. It reminds me of a children's movie about a little
engine that was forever chugging uphill with a vow of: "I think I
can, I think I can…."
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