Mayor signs off on Netflix deal - Albuquerque Journal

Mayor signs off on Netflix deal

1315633
Mayor Tim Keller, center, is joined by city officials in signing the deal bringing Netflix’s first U.S. production hub to Albuquerque. At left is Alicia Keyes, head of the city’s film office. (ADOLPHE-PIERRE LOUIS/JOURNAL)

The deal to bring Netflix’s first U.S. production hub to Albuquerque is sealed — at least on the city’s end.

Mayor Tim Keller today signed the bill, unanimously approved by councilors earlier this month, that includes a $4.5 million city economic incentive package for the California-based streaming-video giant to assist in its purchase of Albuquerque Studios.

“All that our Legislature, governors, mayors and councilors have done over the years set the stage for this,” Keller said during the  bill signing ceremony at City Hall. “Now, we elevate that stage to the next level.”

The bill also includes language related to the city’s role as fiscal agent for the state’s $10 million contribution in Local Economic Development Act funds.

As part of the agreement, Netflix commits to direct spending on its own productions in New Mexico of at least $600 million in the first five years operating the studio, as well as $400 million in direct and indirect spending, which includes leasing the facility to other production companies, in the following five years.

The deal is expected to bring the equivalent of about 1,000 film and television production jobs per year.

Netflix is in negotiations to purchase the 28-acre Albuquerque Studios site with plans to make it its principal production hub in the United States. The company uses three production facilities in North America other than Albuquerque — Atlanta, Los Angeles and Vancouver, Canada — all of which are leased facilities.

Netflix intends to invest more than $30 million for acquisition, renovation and improvement at Albuquerque Studios, which it is to maintain and operate for at least 10 years.

The final hurdle is closure on the sale of the studio and its nine sound stages, production offices and back lot.

Alicia Keyes, head of the city’s film office, told the Journal  closure on the sale is  not complete but is imminent. Netflix officials have not released details about the sale price of the studio.

Clawbacks include monetary penalties if Netflix’s spending by Dec. 31, 2023, is less than 90 percent of the $600 million performance target or spending is not at least an additional $400 million by Dec. 31, 2028. They also include monetary penalties if Netflix ceases operations at the studio before Dec. 31, 2028.

Home » Business » Most Recent Biz News » Mayor signs off on Netflix deal


Albuquerque Journal and its reporters are committed to telling the stories of our community.

• Do you have a question you want someone to try to answer for you? Do you have a bright spot you want to share?
   We want to hear from you. Please email yourstory@abqjournal.com

taboola desktop

1
Garcia Holmes, Sanchez seek to turn ABQ-based district red
2022 election
Inflation, high crime top issues for ... Inflation, high crime top issues for GOP hopefuls
2
Fire threatened priceless seeds saved for West's post-fire forests
ABQnews Seeker
Researchers moved fast to relocate millions ... Researchers moved fast to relocate millions of samples from Mora facility
3
County assessor candidates have experience with office
2022 election
Stephen A. Sais and Damian R. ... Stephen A. Sais and Damian R. Lara are vying to fill the seat being vacated by Tanya Giddings, who cannot run again because of ...
4
PNM sued over deadly Ruidoso-area blaze
ABQnews Seeker
Suit: Powerlines poorly maintained Suit: Powerlines poorly maintained
5
Lujan Grisham: Feds liable for wildfire damage
ABQnews Seeker
Governor says it's 'problematic' emergency ... Governor says it's 'problematic' emergency aid isn't designed to fully cover losses
6
Viewers to experience 'natural high' of flying
ABQnews Seeker
“Over New Mexico and the Southwest,” ... “Over New Mexico and the Southwest,” will be screened at 6:30 and 7:30 p.m. Thursday at the Natural History Museum
7
Order aims to lighten teachers' administrative burden
ABQnews Seeker
Gov. Lujan Grisham calls for a ... Gov. Lujan Grisham calls for a 25% reduction in the administrative tasks
8
Mistrial declared in 1997 homicide case
ABQnews Seeker
jurors failed to reach a unanimous ... jurors failed to reach a unanimous verdict in the case against the man accused of killin
9
District judge candidate acknowledges 2018 tax lien
2022 election
Journal alerted by opponent's campaign manager Journal alerted by opponent's campaign manager