By Joshua Akers
Journal Staff Writer
Lions Gate Entertainment is coming to Rio Rancho.
One of the largest independent film companies in the world is planning to build a $15 million studio in Rio Rancho's planned City Centre, the Albuquerque Journal has confirmed.
The final details of the deal are being worked out and Rio Rancho city councilors are likely to vote on a series of land incentives for the company in early June.
The studio's plans for Rio Rancho were revealed following a public records request filed with Rio Rancho by the Journal.
Lions Gate Vice President Mark Manuel declined to comment Friday as he has done since the Journal turned down a request by Lions Gate to withdraw its records request with the city. The Journal was seeking details of the proposed deal, which includes 20 acres of free land, additional land for the company to do commercial development and a state investment of $7 million in the project in addition to a 25 percent tax break on all filming done in New Mexico.
Earlier this month, Lions Gate had said it hoped to announce plans soon to build in Rio Rancho.
An e-mail from Manuel on Friday said "no comment" and added that the company had no deal anywhere in New Mexico.
City Manager Jim Palenick discussed the deal Friday, comparing it to Intel's decision to locate in Sandoval County.
"This is huge. It's like years ago when that little company Intel came in and started making these crazy microprocessors in Rio Rancho," Palenick said. "This is another one of those seminal moments, another major industry, that in the long term people will look back on and say 'wow, that was really an important time when that happened.' ''
He said he expects design and construction to start as soon as Lions Gate gets the land it is seeking.
According to documents obtained by the Journal, Lions Gate is seeking 52.8 acres north of Rio Rancho's planned City Centre. The company plans to build three sound stages, two back lots and production offices in the first phase.
If the City Council approves the deal, the city would give Lions Gate 20 acres valued at $1.1 million. The company would be required to create the equivalent of 596 full-time jobs, Palenick said.
Lions Gate's proposal states it will create 385 full-time jobs and 1,500 part-time jobs.
According to the company's executive summary, only five people will be employed to run the studio.
Palenick said the other jobs would be provided by production companies using the studio.
The city owns 12.8 acres that it will give to the company. The city will purchase another 40 acres from the State Land Office.
Lions Gate would be required to pay for 32.2 acres plus the city's fees for acquiring the state land.
Palenick said the city would front the money by paying the State Land Office for the land with a price likely to exceed $1 million. Lions Gate would be responsible for paying the city back.
Lions Gate recently sold its Vancouver-based studio for $36 million. The studio sat on 14 acres.
Palenick said the land was an important component of the deal. Not only does it allow for future expansion, but it gives the studio the opportunity to develop stores, hotels and restaurants.
'Clawback'
The deal will include a five-year "clawback," Palenick said.
If the company does not develop the land or chooses to leave in less than five years, Lions Gate would pay the city the assessed value of the land at that time minus what the company paid for the 32 acres, Palenick said.
Lions Gate is filming the television series "Wildfire" in Rio Rancho. The series is responsible for creating the equivalent of nearly 300 full-time jobs, said Judi Snow, director of the Rio Rancho Convention and Visitors Bureau.
Lions Gate is a publicly traded company valued at over $1 billion. Its film "Crash" won Best Picture at this year's Oscars. In 2005, the company produced 10 feature films, five television shows and other projects, expending over $200 million for those productions.
According to the executive summary Lions Gate submitted to the city, the company expects the studio to be profitable in the first year.
The company states that competition with additional studios such as Culver, which plans to build at Mesa del Sol, will be good for business and the state.
Under review
Rio Rancho Economic Development Corp. is reviewing the company's proposal.
Deputy State Land Commissioner Dennis Garcia said Friday that Land Commissioner Patrick Lyons is awaiting the proposal on the "Lions Gate property."
Gov. Bill Richardson said earlier this month that the State Investment Council will put $7 million into the Lions Gate project.
Charlie Wollmann, a spokesman with the State Investment Council, said Friday that potential partnerships with Lions Gate were still under review.
Last month, the Journal filed a request With Rio Rancho to inspect records regarding Lions Gate Entertainment.
Rio Rancho turned over a portion of the requested records earlier this month by providing e-mails about the deal, but attachments were left out.
The city provided the attachments earlier this week but with a number of paragraphs redacted, or blacked out.
The attachments detail Lions Gate's plans in Rio Rancho.
Palenick said the redacted paragraphs dealt with information that was proprietary or no longer accurate.
He said the city's response to the request was delayed because it was waiting on Lions Gate to determine what should be redacted.
"We wanted to give it out. We didn't want to not disclose it, but we don't want the company feeling that they had legitimate proprietary information in there that they wouldn't want their competitors down the street to know," Palenick said.
The redactions in the documents were called "mysterious" and "strange" after being reviewed by Bob Johnson, executive director of the New Mexico Foundation for Open Government.
"Revenue projections I can understand," Johnson said. "But it makes no sense to redact things from paragraphs dealing with weather or land."
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