Kansas Film Production Opportunities by a2302339

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									Kansas Film Production
    Opportunities

Joint Committee on Economic Development
            August 26, 2004
 “The Rise of the Creative Class”
                                     by Richard Florida

• Human creativity is the ultimate economic
  resource …

• …The current economic transformation is
  based fundamentally on human intelligence,
  knowledge and creativity.


August 27, 2004   Joint Committee on Economic             2
                          Development
                  How This Got Started
1. Kevin Willmott CSA: Confederate States of
   America
2. Kansas Connection, Inc. generated excitement with
   a 2004 Legislative Session proposal
3. Kansas City and US investors working to create a
   state partnership: 5 movies a year produced in
   Kansas ($5-$8 million per)


August 27, 2004        Joint Committee on Economic   3
                               Development
   Current Status of Film Industry
• Harder for US to be “low-cost” alternative
     – runaway production in Canada now internationally.
• Intense competition among states and
  communities
     – Tex Western basketball story filmed in Louisiana)
• Innovative incentives, investments, tax breaks
  increasing nationally


August 27, 2004       Joint Committee on Economic          4
                              Development
  Number of Film Incentive Programs in Each State
                     WA
                                     MT                                                                                            ME

                 OR                                  ND         MN                                                           VT
                                                                           WI
                                                                                                                                  MA
                           ID                                                                                           NY
                                                     SD
                                      WY                                                       MI
                                                                 IA                                            PA        NJ
                      NV                             NE
                                                                                                    OH              MD E
                                                                                                                      D
                                                                                IL        IN
                                UT
                                          CO                                                             WV        VA
                CA                                                   MO                         KY
                                                          KS
                                                                                                               NC
                                                           OK                        TN
                                                                      AR
                           AZ                                                                                 SC
                                       NM
                                                                                MS        AL         GA
                                                                      LA
                                                      TX


                                                                                                               FL
      AK




                                Zero incentive programs

                                One incentive program

                                Two or more incentive programs                                                     Source: MPAA July 2004


August 27, 2004
           HI
                                               Joint Committee on Economic                                                              5
                                                       Development
North Carolina, 3rd largest production state has experienced a 60% decline
                     in production $’s since 1993 peak


                           North Carolina: Annual Direct Film Industry Revenues

                         $600.0
   Dollars in Millions




                         $500.0
                         $400.0
                         $300.0
                         $200.0
                         $100.0
                           $-
                             80



                                      84



                                                 88



                                                              92



                                                                           96



                                                                                  00

                                                                                  02
                           19



                                    19



                                               19



                                                            19



                                                                         19



                                                                                20

                                                                                20
August 27, 2004                            Joint Committee on Economic                 6
                                                   Development
 States and regions are finding, that unless
   they have a characteristic unique and
  essential to the story, if they want a film
     presence as part of their economic
 development - they are not competitive if
their only focus is on being the “low cost”
                 alternative.


August 27, 2004   Joint Committee on Economic   7
                          Development
Research Areas for Consideration
• Production – involvement in the production side of film
  making: the New Mexico model of direct investment,
  Louisiana investor credits, In-state direct support to film
  makers.

• Recruitment – continue past efforts to attract film
  production into the state and maintain current in-state
  activities



August 27, 2004       Joint Committee on Economic               8
                              Development
                  Research Areas, cont.
• Infrastructure Development – film schools at the
  University of Kansas and technical training at Johnson
  County and the Kansas City, Kansas Community Colleges

• Hardware and Facilities – would require substantial
  investments; a concern of this strategy is the rapidly
  expanding and changing technology component of the
  industry.



August 27, 2004        Joint Committee on Economic         9
                               Development
             New Mexico – Direct Investment

• 2002 New Mexico set aside a portion of its $6.8
  billion Severance Tax Permanent Fund to create a
  loan guarantee program to invest in movies
     – The State so far has put $41 million in loans for 8 films
• Suspect Zero to be released today of the $27
  million, $7.5 million is a loan
• Loan requirements include: completion bond,
  guarantees movie will be finished, a bank to back
  the loan, line up distribution, and have a firm cast
  list

August 27, 2004        Joint Committee on Economic             10
                               Development
    New Mexico – Quotes from article at New Mexico
                  economic development web site

• “The way we look at it, we anticipate (the program)
  will earn more than the 8 percent the rest of the
  (permanent fund) portfolio earns annually,”
  spokesperson for New Mexico Investment Council

• “The taxpayers of New Mexico have been
  bamboozled by Hollywood … just a new set of
  fools.” Los Angeles securities and entertainment
  attorney.
August 27, 2004         Joint Committee on Economic   11
                                Development
                  Film Study
• Multiple visits with Kansas industry participants
  (both in-state and out of state)
• Interview other states – Louisiana, Illinois,
  Georgia,
• On-site discussions in Austin and New Mexico
• Develop an understanding of trends and demands
  of the industry
• Realistic sense of the size of a required investment,
  what state’s can do to impact decisions, what
  exactly does Kansas want out of a film strategy.
August 27, 2004    Joint Committee on Economic       12
                           Development

								
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