Duo team up to build New Mexico studio

UDC, DMG to operate $60 mil film, TV facility

This is an early rendering of what will be a film, TV and digital media studio in Albuquerque, N.M. The $60 million project involving three companies is skedded to open in early 2007.

Union Development Corp. (UDC) and Digital Media Group (DMG) have teamed with Pacifica Ventures to construct and operate a film, TV and digital media studio in Albuquerque, N.M.

Pacifica Ventures (PV), owners of the historic Culver Studios in Culver City, where such films as "Gone With the Wind," "Citizen Kane" and "ET" were produced, will help in designing the estimated $60 million-plus project, providing operational management once the facility opens in early 2007.

This marks the second step in PV's plan to provide a worldwide network of production facilities. To that end, PV purchased the Culver Studios for $126 million about two years ago.

"The addition of PV as the developer/operator of this project provides us with financing, experienced operators and a direct pipeline to Hollywood producers/customers to ensure the success of what will be a world-class production facility located in metropolitan Albuquerque," said Elliot Lewitt, DMG.

Located five minutes from downtown, the studio, referred to as the Yard, will be built on the historic Albuquerque rail yard and will include residential, retail, dining and entertainment elements on its perimeter. Preliminary plans for the studio include four 25,000-square-foot stages, two 18,000-square-foot stages and the exceptional feature of a 200,000-square-foot indoor back lot.

Community input was a key factor in the culmination of the facility going forward and its expansion from 12.5 to 27 acres, along with the preservation of its historical aspects. A part of the latter will be the creation of "The Wheels" museum.

"We are confident that The Yard will both increase revenue and create new jobs in this beautiful city and state," said Dana Arnold, CEO of Pacifica Ventures.

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Michigan is taking an active approach to procuring film production.

In a unanimous vote, the House Tax Policy Committee approved a plan to entice film production through a series of tax breaks and non-monetary location incentives. Michigan has one of the most restrictive filming environments for how movies must operate under its tax code.

Rep. Bill Huizenga and his chief of staff, Dale Hull, are the authors of a series of House bills that will offer a tax credit for any production company spending more than $250,000 in the state and that, in turn, will provide a 30% single business tax credit, 6% sales tax exemption and a use tax exemption, in addition to fee-free use of state owned locations and buildings (with the exception of prisons and hospitals).

The bills also define what is classified as a "motion picture," including TV commercials, documentaries and musicvideos; news and sporting events would be excluded.

Those testifying in favor of the plan in addition to the House Committee included SAG, the Teamsters, the Michigan Film Office, the West Michigan Video and Film Alliance, Compass Film Academy and the Department of Treasury.

"The Michigan Motion Picture Incentive Act is a very positive economic move," said Janet Lockwood, director of the Michigan Film Office. "When Illinois enacted their incentive legislation, they watched the impact from feature films rise from $25 million to nearly $100 million in less than a year. New Mexico went from minimal filming to one of the top five venues in America."

The bills now await a vote on the House floor.