On-location filming slows to a crawl in L.A.

Like the sputtering national economy, Los Angeles’ production economy is sending out mixed signals.

After staging two consecutive quarters of growth and a dramatic recovery from a severe slump last year, L.A.'s production sector has slowed significantly.

In the last 10 weeks, combined production days for the major categories was virtually flat compared to the same time a year ago, according to data from the FilmLA., the nonprofit group that handles film permits. One production day is defined as a crew’s permission to film at a single location over a 24-hour period.

On location filming for features has been especially lackluster, with production days falling about 9% between June 28 and Sept. 5 compared with the same period a year ago.

A slowdown was anticipated by many in the industry, given that the engine driving a spike in feature-film activity this year — the state’s fledgling film tax credit program — has been temporarily idled because the funds have run out.

The California Film Commission allocated all of the available tax credit funds for the current fiscal year in June and now has a waiting list of projects. The program provides a 20% to 25% tax credit on qualified production expenses that can be applied to offset any state income or sale tax liabilities.

The commission this year awarded $100 million in credits to 30 projects, many of them feature films that are set to film in L.A. this fall, such as the Columbia Pictures' comedy "Jack and Jill" starring Adam Sandler.

Nonetheless, that’s well below the 77 projects that received credit approvals last year, when the commission took advantage of a provision in the state law that allowed it to allocate two years' worth of funding in the first year of the program. The state set aside $500 million in funding through 2014.

"We expected we would see a falloff, seeing as how the (state tax) incentive was the only thing that put the feature category into positive territory," said Film L.A. spokesman Todd Lindgren. "Cutting the credit in half is likely to return the category to a downward trend."

Television production, a mainstay of L.A.’s entertainment economy, fell about 1% during the 10-week period. Although L.A. has drawn several new shows, including "Law & Order: Los Angeles" and NBC’s "Outlaw," which was filming in front of City Hall on Tuesday, it has also lost several shows that shot heavily on location, including "Heroes" and the long-running Fox drama "24."

Commercial production remains the one significant bright spot. Although not covered under the state’s tax incentive program, commercials continued to post strong growth as such advertisers as Chevy and Bank of America shelled out money for film shoots, triggering a 23% increase in production days during the 10-week period compared with a year ago.

— Richard Verrier

 

Comments

[Jack]

Thank god. Fewer rush hour traffic jams in downtown caused by film crews taking over the streets.

[cat dad]

Thank god. Fewer jobs, less retail business, less tax dollars to city services, and fewer boosts to the local economy. But at least there will be fewer rush hour traffic jams (because it's only film crews that cause those in L.A.)

[G.Patton]

I know so many shows that have gone to other states mainly Louisiana (the other L.A.). California should compete with these others states. The money a film shoot brings is very significant to the economy. I don't understand why California does not see this. Like so many other States and Countries do.

[anonymouse]

Thank God?

So you want to drive away the industry that built this city? Aerospace is gone. The auto plants are gone. Construction is gone. When the studios go this city will look like Detroit. Disneyland and Universal won't be enough of a draw.

Lets see what Auntie Meg does with film incentives, if she wins.

God help us.

[Rocco]

Gov and Legislature, why not get off your arses and get something done?

[Schigolch]

The only way they can stay in business is with a hidden taxpayer subsidy. The answer is to break the unions that have a stranglehold over production wages in this city. Then you'll see production.

[Brian]

It's the expensive and greedy permit process in LA. Come film in San Diego County where film makers are welcome. Pull out a video camera in LA and you have ten people demanding to see your permit. I love shooting in San Diego.

[inbox1909]

Los Angeles is one of the worst cities to do ANY kind of business in, regardless of which industry it is.
The combination of smothering regulations, on top of the bitterness and jealousy of those who resent Hollywood, means there will be even more decline in the near future.
Our clueless mayor and city council, whose idea of show business is to sit in the front row at award shows and sporting events, are next to useless when it comes to the details of what makes a production economically viable.

Less red tape. More tax incentives. Better coordination with the city of LA, and most importantly, helping the smaller productions and independent film makers, who are to LA what the tech start ups are to silicon valley, would go a long way.

It's called show BUSINESS for a reason.

[Ed]

The film industry is now tremendously incentive-driven, everywhere. Witness the screeching halt of virtually all Philadelphia and Pennsylvania-based productions earlier this year when the boneheaded Republican-led state legislature killed state tax incentives there and production fled to steadier locations like Detroit and Louisiana.

Thanks for putting me and dozens of my co-workers out of our jobs in one fell stroke, geniuses!

signed,

an ex- Philadelphia based set dresser

[Richard]

Hey, we will still have the porn capital of the world.
And THEY manage to rake in BILLIONS without paying "stars"
MILLIONS (for the most part) and without any state subsidy.

Just saying.

[MI]

Bring the film productions to Miami, Florida!!! We are waiting for you!!! Plenty of amazing local talent ready to cast for principal roles!
Sincerely,
A Miami Actress

[Louisiana Tax Credits for Businesses]

Louisiana Tax Credits for Businesses are given to entities to basically reward efforts that give back to the community and work with government missions for a better way of life.

[Lance]

Don't know why anybody would want to make a film on location in LA. Permits are painful and expensive. We ended up shooting our latest indie down in San Diego county where there are NO permit fees and the film commission is awesome! They went out of their way to help us find locations, permitting was a breeze and they were actually happy to have us there. Locals too were glad to see us and we had none of the hassles of shooting in LA.

LA Film Commission needs to be re-thought and re-vamped. Isn't it enough to have the productions in the city creating jobs and revenue - you have to make it a profit center?

[HD]

L.A. in a steady decline. Louisiana funds are now starting to dwindle. Detroit - well its a ghost town. Now the hotspot is Dallas, Austin TX - plenty of money for incentives - increasing population - stable and moderatley priced housing. NO UNIONS - Very pro-film. I know of several people in the industry who have moved to Dallas, but they had to come as locals. Less money, but they have a job. I think that is a trend that only just getting started.