Rio Rancho City Council Approves Lions Gate Package
By Joshua Akers
Journal Staff Writer
Rio Rancho gave New Mexico's growing film industry a boost Wednesday night.
City Councilors unanimously approved an incentive package that will bring one of the world's largest independent film studios to the city.
Lions Gate Entertainment plans to build a $15 million studio north of Rio Rancho's planned City Centre.
In exchange, the city will give the company 20 acres of land valued at more than $1 million and front another $1 million for the company to purchase an additional 32 acres.
"What this governing body is doing is guaranteeing your children's futures," Rep. Tom Swisstack, D-Rio Rancho, said before the vote.
Swisstack worked nonstop during the last legislative session to pass a bill that increased tax breaks for film companies working in the state to 25 percent.
The tax breaks, plus Rio Rancho's vote to give the company land and at least $7 million from the State Investment Council helped seal the deal.
"There are a few obstacles we need to overcome to make this a reality," said Wayne Levin, Lions Gate attorney. "We will get this done."
In exchange for the land, Lions Gate is required to build a studio within two years and must provide 800,000 hours of work within five years to keep the land.
Lions Gate calls the $15 million studio a first phase. Possible uses for the additional 32 acres from the State Land Office include hotels and other entertainment and retail developments.
According to the agreement with the city, Lions Gate and the State Investment Council will partner to form a new company called Newco. Lions Gate and the state will invest $15 million for the construction of the studio and acquisition of equipment.
City Manager Jim Palenick has said the impact of Lions Gate on Rio Rancho's economy could be similar to what happened when Intel chose the city 25 years ago.
City Councilor Larry Naranjo was enthusiastic in his support of the project.
"Your vision for what you intend to do with Newco is very exciting," Naranjo said.
But the excitement wasn't what Rio Grande Studios Co-Founder Michael Jacobs felt Wednesday night.
Jacobs used his two minutes at the lectern to plead with councilors for a delay on the Lions Gate vote.
Jacobs said his studio project had been in the works for two years and the city wasn't being fair. He fired off a litany of complaints against Palenick.
As Jacobs went over his two minutes Mayor Kevin Jackson told him to finish.
Jacobs continued and was again cut off by the mayor.
"This has been in the works for two years, and I would like to say my last two paragraphs," Jacobs said.
Jackson asked councilors if they wanted to hear it. They said no and Jacobs was sent back to his seat.
The council then voted 6-0 to approve the project.
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