Las Cruces may call 'cut' on movie company deal

LAS CRUCES — When the California-based movie company 828 Productions chose Las Cruces in 2022 for planned studio and post-production facilities, Gov. Michelle Lujan Grisham pledged $3 million in state economic development funds to foster the project and seed a film and television industry base in southern New Mexico. 

With the promise of at least 100 jobs coming to town, the Las Cruces City Council committed millions in city funds, starting with $900,000 approved in March 2023 followed by $2.8 million that December.

Film producer Todd Lundbohm, 828's CEO, spoke of plans at that time to invest $75 million in Las Cruces over six years with construction of a 300,000-square-foot studio, a back lot and post-production and training facilities spread across three locations in town.

Lundbohm also vowed to bring high-profile movie production into New Mexico, coming through with recent projects such as “Eddington,” which filmed in Truth or Consequences, Albuquerque and Santa Fe County in 2024; and the action thriller “Protector,” filmed in Las Cruces last year.

But three years into the relationship, city staff are recommending the council end its partnership with 828 Productions and claw back over $1.3 million. Lundbohm said efforts to iron out the differences have been rebuffed.

“828 has made numerous efforts to discuss this matter with city leadership and they’ve been ignored,” Lundbohm said in an interview, stressing that the company has tried to comply with the city’s directives. “I’ve just been shocked at the pace and the tone with which they have come at us, and refused to have any sort of meaningful dialogue.”

Elizabeth Teeters, the city’s economic development director, told the Journal, “This has been a monthslong ongoing discussion with 828.” 

She said the city had requested additional information on 828’s most recent reimbursement invoice last March, first informed 828 it would recommend termination of the project back in June based on an annual project review and had subsequently granted two extensions while discussing new agreement terms. Despite those negotiations, Teeter said, “we could not come to an agreement.”

A proposed ordinance set to be heard on Feb. 2 would formally terminate the project agreement and seek repayment of city money. The city would continue to serve as fiscal agent for $3 million in New Mexico economic development money committed to the project.

A performance review and audit of the project last year opined that the company’s invoices, supporting documentation and economic benefit analysis were vague; that little work seemed to have proceeded beyond remodeling of office space and exterior improvements; and concerns were raised about expenses routed through a subsidiary of 828 Productions without sufficient detail.

Among other issues involving project terms, the performance review said the company submitted a required economic impact report months late, risking automatic clawback provisions, while the document itself “fails to demonstrate any measurable positive economic impact” to the city, although it did address local jobs and production expenditures.

Lundbohm told the Journal his company is requesting time to propose an amended agreement that would clarify its obligations and address concerns expressed in the performance reviews. 

“The city approved reimbursements for almost a year and a half before raising a concern with 828,” Lundbohm said. “If the city approved reimbursements that should have been denied, it was not known to 828 at the time.”

The company’s continued presence in Las Cruces hinges on resolving the issue, Lundbohm said, pointing to economic activity 828 has brought to New Mexico, including Las Cruces, which he estimated at $100 million in outside production spending during 2024.

Lundbohm said progress on developing industrial properties near Amador Avenue in the middle of town has slowed because of trespassing, property crime and security concerns at the location.

“The lack of support and cooperation from the city is a serious factor in whether 828 will stay,” he said, “and if 828 does exit Las Cruces because of this, I don’t know why any production company would set up shop after what they’ve done to us and what we’ve been put through.”

Algernon D'Ammassa is the Journal's southern New Mexico correspondent. He can be reached at adammassa@abqjournal.com.