Movies & NM & Abq

Here's the answer to why New Mexico and Albuquerque are so enamored of movie making. Executive producer (of various movies) David Rubin supplied the insight to several hundred people today at the monthly meeting of the Albuquerque chapter of NAIOP, the professional group of commercial real estate developers. 

"We're fun," Rubin said. 

As to why movie folk are so enamored of New Mexico, Rubin offers four reasons. He called the reasons a "perfect storm"of factors. To start, he said tellingly, there are the rebates—25% straight cash (well, a check) off the top for labor and taxable transactions within the state. "That's huge," he said. Uh, yeah, especially since just about everything that transacts in New Mexico is taxable. Rubin added, "We spend a lot of time figuring who is rebateable and  who is not." No surprise there. Then there is New Mexico's proximity to Los Angeles. We are the closest place with rebates. (Rebates again) Third, Albuquerque Studios offers "Hollywood style infrastructure." And, fourth, overall government is supportive.

As to the notion of capping the rebates, something posed by the Legislative Finance Committee, "It's just insane," Rubin said. Of course. A 25% rebate off the top would do nice things to the economics of Capitol Report New Mexico, or any business. And once the rebate would be in place, massive resistance would be the response to any notion of limits. Again, no surprise there.

The developers have equally obvious reasons for liking the movies. There is office rental, though maybe only for four to six months at a time. Warehouse rental. Movie makers like large open, empty spaces. Apartment rentals. These are not a particular concern to NAIOP, but movie folks coming to town will rent apartments, again for the short term. Rubin cited other economic impacts, all short term and ephemeral. Catering—feeding the movie crew. Yoga classes. The problem for these suppliers is making profit on variable business. How far does one gear up the base—the fixed costs—to service the variable income? 

Some solid, longer term term things may be in place, though. Albuquerque Studios, on the Mesa del Sol development south of the main part of Albuquerque, is the largest independently owned studio in North America, city of Albuquerque film liaison Ann Lerner, told NAIOP. Albuquerque Studios is expanding. Such operations will have people employed, earning a regular income, just like a cabinet maker or a chip maker. It's those regular incomes that economic developers prize. Not fun.