The economy is still suffering. Because of the General Motors financial challenges, San Diego hasn't seen any of the usual car commercials. Business is cutting back on advertising so we see fewer commercials being made.
Because of DVRs, people don't have to watch commercials on television anymore, and so the demands are changing and evolving. For example, now we see commercials at the movie houses prior to the feature we paid to see.
The feature and television projects are going to Michigan, New Mexico and New York because those states give the film business huge incentives to cut the filming budgets, making it more economical to work there. California was one of eight states not offering any film incentives ... and the result? Over 70 percent of the product coming out of Hollywood was leaving our state to work elsewhere.
The shot in the arm for San Diego first happened with the new film incentive that passed with the state stimulus package and created something for California to be hopeful about. It's a tax credit that kicks into play in 2011, but the applications are being submitted now. Features with $75 million budgets can be qualified if they film 75 percent of their project in California. The major studios like Twentieth Century Fox, Disney, Universal and DreamWorks are all submitting their applications for consideration and so far 25 projects have been qualified for the new tax credit.
Now, the chore for San Diego is to make certain we are a destination for some of these projects, although most will stay in Los Angeles. Locations are crucial to the storytelling, and if Southern California is written into the script it offers us an opportunity. If not, we may be able to get filmmakers to change the location in the script, that is, if the location isn't a character in the story.
Budget plays a huge role also, because there is a bottom line and every producer wants a good reputation for staying on budget. Infrastructure plays another big role. Having qualified crews, talent and hotel room nights available, not to mention government support, are important elements in successfully making a film.
Getting a project to leave Los Angeles to work elsewhere, even in San Diego, is a huge challenge. Labor has determined that if projects leave the 30-mile zone surrounding the major studios, they need to be paid a per diem, mileage and lodging. This can average about $150 per person, which San Diego would have to offset to attract the work away from Los Angeles.
But something really important happened that gave San Diego new energy and an edge to attracting the Hollywood studios' interest in San Diego. Mayor Jerry Sanders made the commitment to travel to Los Angeles with the Film Commission to pitch to studio heads the advantages of filming in San Diego. It was an all-day trip that included seeing production heads at Disney, Twentieth Century Fox, DreamWorks, Universal and even the publisher of The Hollywood Reporter.
This was a first -- not only for San Diego, but for the studios as well. No other mayor has met with studio decision-makers to pitch his/her city as a destination for filming. The mayor was in his element -- picking up the strategies that made sense and the things that resonated with these powerful business people and, at the same time, pitching them with skill and passion.
All four studios said what we already know; it's about the bottom line, so most of the work goes to New Mexico, Michigan, Canada and Louisiana. We did point out that our unique and customized services save time and translate to cash savings. Our permit process alone, being an oral process, is a one-stop-shop ensuring quick and thorough service, and avoiding red tape and cumbersome paperwork.
Additionally, changes in filming can be made orally, without paper submissions that would cause delays or added costs. And most importantly, there is no charge for permits. Frankly, they were impressed. We do market our incentives, however, the face-to-face with the mayor led to a stronger credibility and trust factor.
No filmmaker wants to land on location and discover arbitrary fees, lengthy delays and no infrastructure. We presented a diverse team of experts in our field, who provided invaluable ideas and resolutions, and the executives listened.
Each studio head invited their top team of filmmakers to be present at the table and San Diego has never had such an opportunity provided to it in a single day. The following week the mayor requested the Film Commission meet with his team to discuss our follow-up strategy. This was truly productive, and in the months to come we hope to have some new messages to entice more business to San Diego.
Already we have seen a pilot commit its television series to San Diego because of the mayor's commitment to economic development displayed by this benchmark trip to Los Angeles. This was most certainly a booster that was well received and is still paying off.
Anderson is film commissioner and CEO of the San Diego Film Commission.
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