Supporters hopeful for increased film grants
The phone has stopped ringing at the Wilmington Film Commission. Hollywood producers are taking their business elsewhere, and that is not likely to change unless the General Assembly ups the ante by approving a more generous incentive program, says Johnny Griffin, who heads the commission.
The tide could change if New Hanover County’s legislative delegation succeeds in fattening the grant pool. Local legislators say they expect to see some money placed in budget proposals, but the final spending package may not be decided upon for several more weeks.
State Sen. Michael Lee and Rep. Ted Davis Jr., both Republicans, have filed twin bills seeking $66 million for film incentives. The recent announcement that state revenues are running $400 million above projections may help the bills’ prospects, Lee said in an email.
Rep. Susi Hamilton, D-New Hanover, has taken a broader approach, teaming with House Finance Chairman Jason Saine, R-Lincoln, and others to file a bipartisan bill that would fund a variety of incentives including a film-grant program. The House also would support a restoration of the 25 percent tax credit, said Hamilton, who has previously filed similar bills but the Senate has consistently opposed that approach.
With the money for 2015 gone, producers aren’t calling. By this time, Griffin says his organization usually is negotiating with 35 productions; so far this year, he’s had eight inquiries. That’s a big change from last year, when productions spent $241 million in the state in exchange for $60 million in tax credits.
“They saw that there was no money here,” Griffin said.
The legislature allowed North Carolina’s 25 percent film-tax credit to expire at the end of 2014 and in its place included just $10 million grant program that enticed the CBS TV series “Under the Dome” to film in Wilmington another year. But the fund has since been depleted — half of the $10 million went to “Dome” and the rest to two projects that will film elsewhere in the state.
In addition to “Dome,” the only other active project at this time is the movie “Bolden,” about the legendary New Orleans jazz coronet player.
It isn’t only movie-related businesses that are affected by the impending downturn. Wilmington business owner Lynn Farver runs Hanover Ace Hardware on North Kerr Avenue with her husband, Roger. On any given day it isn’t unusual for crew members of “Under the Dome” to call or drop by looking for assorted parts or set items.
“Just today, ‘Under the Dome’ has spent almost $300 here,” Farver said during a Wednesday, May 6 phone interview. She sees crew members almost daily. In 2014, film productions accounted for 8 percent of total sales. While losing the business won’t make or break the year, it will hurt.
The Farvers have owned the store for more than 20 years. At that time it was supplying hardware to the “Matlock” set. Since then, in addition to selling merchandise to productions, the Farvers’ store has been featured in a Hallmark Channel movie, giving them a peek into the film making side of the business.
The bottom line is only one potential loss. In all of the years working with productions, Farver has come to know the crew members and their families. They are customers and friends, and she says she would miss them if they had to move away to find work elsewhere.
“I just can’t say enough about the film industry,” Farver said.
Her story is just one of many, which is why a group of local proprietors formed Small Business for Film, which supports efforts to beef up the film incentives program. One of the main organizers is Sabrina Davis, who said the idea was to create a website with one purpose: to show lawmakers that film is not a Hollywood issue, but a North-Carolina issue affecting small businesses. So far it has 229 members.
Like Farver, Davis received a lot of business from the film industry, and the downturn has taken a toll. With the local delegation working on an improved grant program, however, she is optimistic there is still a future for film making in Wilmington and North Carolina.
“I think it will be back,” she said. “Things are going well in Raleigh. Signs are good for the grant program to be increased.”
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