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Tuesday, September 15, 2009
SF County To Lend $6M for Film Studio
Journal Staff and Wire
SANTA FE — New Mexico's film industry got a boost as Santa Fe County agreed to lend $6 million to a production company to build a film studio near Santa Fe.
County commissioners unanimously approved the loan at a meeting packed with film workers late last week.
Initially, the production company, Santa Fe Studios, wanted to build a $40 million four-stage studio complex, but the project has been downsized to two stages.
Santa Fe Studios is owned by Lance Hool, his brother, Conrad Hool, and Lance Hool's son, Jason.
Jason Hool said the studio's first phase of construction could start in a matter of weeks. It will be built on 65 acres on New Mexico 14 south of Santa Fe.
James Rubin, an attorney for the project, said construction would take about nine months.
The county will generate $6 million through the sale of bonds backed by gross-receipts tax revenue. Santa Fe Studios also has obtained $10 million in state economic development grants.
Santa Fe Studios will provide a $2 million letter of credit or escrow payment to secure the loan.
If Santa Fe Studios defaults on the loan, the International Alliance of Theatrical Stage Employees Local 480 would take over studio operations for the county.
Of the union's 1,200 members, more than 500 live in Santa Fe County, said the local's business agent, Jon Hendry.
Still unresolved in the deal was the extent of financial liability the union would assume if Santa Fe Studios defaults on the loan.
If Santa Fe Studios defaults, “the filmmakers union would be taking on all of the debt,” Commissioner Liz Stefancis said after the vote. “That's what we intended.”
But Hendry said the union will not guarantee any private debt.
County Attorney Stephen Ross said resolving the terms of the union's involvement is a small but important detail.
The commission must still approve a specific loan agreement with Santa Fe Studios at a future meeting.
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