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“The rumors are true,” a North Carolina TV station announced when the governor flew to the hometown movie studio to break the news this past week. “Tony Stark and the third installment of the Iron Man movie franchise will fly into Wilmington.” Great news for North Carolina maybe but for the Los Angeles movie and TV community it felt like a punch in the gut. Thanks to the state’s generous 25% production credit, North Carolina’s EUE/Screen Gems Studios sealed the deal. Manhattan Beach-based Marvel Studios considered making the third movie in Los Angeles just like the first two, but the 25% credit proved too hard to resist. California has a 25% credit — which excludes big budget studio productions. Marvel also considered Michigan and New Mexico but North Carolina won out because of the size of the facility as well as the tax credit.
“We aggressively pursued this piece of business,” said EUE/Screen Gems Co-Owner and COO Chris Cooney. “We negotiated hard, and it paid off.” EVP Bill Vassar pointed out that in addition to Screen Gems’ 10 sound stages the area has a large local crew base with experience handling five productions simultaneously. Iron Man 3 is expected to pump about $80 million into the local economy. “This is a great day for North Carolina,” Gov. Bev Perdue boasted. Not so great for Los Angeles, though. “Five-hundred-fifty jobs, all the other sub-jobs, the construction jobs, that’s what it’s all about to us here locally.” In addition to Iron Man 3, Perdue cited Hunger Games and a lot of other movies and TV work currently and recently all over North Carolina. “The film tax credit made a real difference.”
Too make matters worse, at a time when many other states, not just North Carolina, are aggressively pursuing location shoots, California’s tax credit program was extended after only one year because the Legislature didn’t think the financially strapped state could afford originally proposed five-year version.
L.A. wasn’t the only city that got this kind of news recently. NBC Sports announced that it was moving out of its longtime home at 30 Rockefeller Plaza in Manhattan about 35 miles away to Stamford, Conn., to take advantage of tax incentives. Connecticut offers tax credits from 10% up to 30% depending on a production’s budget.
Iron Man 3, which North Carolina officials say will be the state’s biggest production yet, is expected to set up shop in Wilmington for about 10 months starting after the first of the year.
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I hope they will include the following characters in future Iron Man sequels:
Bethany Cabe, Force, Rumiko Fujikawa, Guardsman, Iron Man 2020
I look forward to seeing the following villains in future Iron Man sequels:
Arsenal, Beetle (Abner Jenkins), Blizzard (Donnie Gill), Cobalt Man, Controller, Dreadknight, Edwin Cord, Ezekiel Stane, Fin Fang Foom, Firebrand, Firepower, Ghost, Grey Gargoyle, Hypnotia, Justine Hammer, Iron Patriot, Kearson DeWitt, Killer Shrike, Living Laser, Madame Masque, Mandarin, Mauler, Melter, MODOK, Morgan Stark/Gregory Stark, Raiders, Spymaster, Sunset Bain, Sunturion, Temugin, Titanium Man, Unicorn, Ultimo, Wong-Chu
Good lord, get out of the basement and enjoy some sunshine.
have you ever heard about the internet trolls? you’ve just made a fool out of yourself.
Don’t forget Blastimo, Voltrux, Silver Redon, Feline Lightning, Gang Green, Blanket of Doom, and of course Tony Stark’s arch nemesis in commodities trading, the ever smelly Phineas Snagglebottom III.
Alot of companys are leaving California, I wouldn’t be shocked if studios move out of the state and begin building huge lots in Hollywood Florida. *rimshot*
To quote Jack Warner When the Red Robin Comes bobbing, he impersonated himself and made his employees clap to his radio performance. I use this quote for a reason.
Life is too good in LA. They will never move their offices to NM, Vegas, Seattle, etc etc.
Once Cali bounces back and the want to be a producer, director, writer phase is shifted back to the great times of the 20′s 30′s etc. Cali will be the the greater movie maker until infinity.
That was some fabulously awful diction, Mister 8movies5plays.
Already happening. “Rock of Ages” is filming at a studio in Miami, even though it takes place in LA. A huge Sunset Blvd set has been built – it’s quite an impressive and cool looking set.
Miami isn’t a threat right now, but can be – its already a large production center, especially for television (albeit mostly Spanish language) and offers most of the weather and glamor of Los Angeles in a tax-friendly red (or purple, if you must) state.
Miami currently has
1. Burn Notice
2. The Glades
3. Magic City
4. The Finder (Bones spin-off)
5. Charlies Angeles (recently cancelled).
6. Step-Up 4 (Feature).
I’d consider six shows a threat.
Finder only shoots some exteriors in FLA
Six shows is not a threat to LA. I work at LA Center Studios and we have over six productions shooting here today. And that’s just one small lot. Florida isn’t a contender for Georgia or Louisiana, much less California or NY. Let’s keep things in perspective….ALL production activity in every state other than California COMBINED does not even top what takes place in LA.
So the current list is:
1. Burn Notice (shoots in L.A. too)
2. The Glades
3. Magic City
4. Step-Up 4 (Feature).
YES! I live in Hollywood FL and would love that haha!
This is just another attempt by studios to get California into a race to the bottom where even if we put some more skin in the game, the studios would still chose another more desperate region that’s putting it’s skin, heart, liver, and lungs into the game.
Interestingly enough the article fails to mention that the reason Michigan and New Mexico lost iron man is because they are either getting rid of or capping their own film subsidy programs. They are making investments in films that get up and leave right after the shoot is over. Jerry bruckheimer is already threatening new Mexico to take work to Louisiana if new Mexico does not INCREASE and match Louisiana’s 30% rebate. Don’t forget about Canada either.
So what should California do?
The us studios are all based here and will not and cannot leave. For every dollar a studio gets in subsidies, the state should charge a countervailing tax to negate that value. That immediately ends the race to the bottom. The studios will cry and threaten to leave but would you really believe that when they’ve been unable to stay in other states once the subsidy goes away. Play hardball.
The studios could actually leave the country. Doesn’t Woody Allen film in France a lot to cut costs? Another way to handle it would be to not tax business in America. After all, business don’t really pay taxes, people pay taxes.
Here’s the problem: despite the fact that the studios are based in Los Angeles, their parent companies (with the exception of Disney) are based elsewhere. More importantly, one isn’t even a US company (SONY) – and News Corp, despite being registered in the US is philosophically NOT a US company. So you start with a corporate culture that has no real attachment to LA. And these companies, not unlike most multinationals (and most US corporate giants) will always gravitate to the cheapest dollar (labor or otherwise). The states that have instituted the tax credits/rebates are being very smart about being attractive to this mindset. LA is quickly becoming non-competitive in this regard. Add to the mix that 70% of a movie’s box office is from international and it’s home base really doesn’t matter. All these things combine for a perfect storm for the film/TV business in LA. This is not all about tax credits, it is about massive media consolidation. Arguably Paramount (Viacom – based in NY and Boston) would make more money selling the studio for real estate than continue to cover the overhead of a massive chunk of land in LA while making movies everywhere but. It certainly makes economic sense (especially if you’re an accountant!).
One last note – don’t forget that in the 1910′s, CA offered many economic subsidies/economic realities that helped lure the business Westward. The old canard about the weather was not the main reason for the move (that’s just a popular myth – because the weather is nice…). The reality was that the state made it very attractive to the East Coast Exhibitors (who were starting to produce their own product) to relocate to LA. Further, because of the way copyright/trademark laws were handled on a state level at that time – and Edison controlled the trademark for the film cameras and projectors on the East Coast and was very litigious about it all – it made sense to get as far away from his control as possible. Interesting how it all comes around.
Wrong. There were two reasons for why Michigan lost out to NC. One was the fact that NC’s subsidy was already in place while the funds for Michigan’s subsidy were promised but still hadn’t been raised.
Additionally, the Wilmington area is much nicer… it’s a college town by the beach that offers more scenic locations, better looking extras and an impressive assemblage of competent crew members who have built years of experience working on everything from One Tree HIll and Eastbound and Down to Blue Velvet and The Hunger Games.
Jon Favreau must have lied about keeping Marvel in California then. Enjoy the crappy weather, bugs, and rednecks out there Jon, and stay there.
Uh, Favreau isn’t directing ‘Iron Man 3′. Shane Black is. Get your facts straight.
Uh, just for the record, there are plenty of film industry folks who’ve settled in Wilmington and become part of the community because they like the quality of life here. The movie production facilities are excellent, but our economy is primarily retirement and tourism-driven. Winters are mild, summer heat moderated by the ocean, bugs no worse than anywhere else, and as for rednecks–well, there’s nothing worse than a redneck from someplace outside the south!
Wilmington is retirement and tourism-driven thanks to Wrightsville Beach but it’s also a college town due to the presence of UNC-W and Cape Fear CC.
One can come across plenty of rednecks in the towns along I-40 when traveling from Raleigh to Wilmington, but as for Wilmington itself… no rednecks, comfortable temperatures, and I’ve never experienced problems with bugs.
Also, unlike Los Angeles, it offers less traffic, cheaper food/gas/everything, less crime, cleaner air and nicer people, but Anonymous can go on thinking that the quality of life in Los Angeles is what every other city aspires to if it helps him/her sleep at night…
and you don’t have to sit on the 405 for 2 hours each way to get to/from work. Good job Wilmington.
Have you ever spent a summer day in North Carolina? I have – and it is like hell. 99 degrees and 100% humidity.
The job creators would rather film here where the weather is perfect, but they know where they are welcomed. If anyone should be blamed for this it is the mayor, because he didn’t do his job – again.
99 degrees isn’t so bad there with the ocean breeze. Just make sure to stay hydrated and go into the air conditioning every so often to cool off.
@ savvydude:
I live here in North Carolina. While we do get our fair share of very hot and humid weather here during the summer time, it varies. It’s much more cooler on average than a hot day in Louisiana (especially New Orleans) — now THAT is the epitome of hot and sticky during the summertime. You NY’ers and L.A.’ers exaggerate our heat too much.
As for the posters complaining about the more productions taking root away from California — it’s a fact you guys have to get used to. Studios are reluctant to spend money in Los Angeles to make big-budget movies (too much $$$ and a lot of taxes) and they’re looking for states and countries that offer the best deal for their money (not just the ones that offer the most tax rebates). You guys should be thankful Marvel Studios kept “Iron Man 3″ in the United States instead of moving it to Vancouver or Toronto.
I’m NOT a studio plant. I’m curious why Marvel doesn’t want to use their lease on the Raleigh Manhattan Beach Studios for IM3, since the sets for Tony’s home and headquarters are still there. But as a North Carolinian, I’m proud to see a big movie being made here. Hopefully RDJ, Shane Black, and the cast enjoy being here while they shoot it.
Rumor is Marvel wanted to shoot in London but Downey refused.
Good for Downey.
Welcome to North Carolina cast and crew. We will take good care of you.
Wat does d governor hav in mine let him speak .
More tax cuts for the 1% – when will the corporate welfare end? Etc.
it’s not hypocritical at all that most liberals call for taxing the rich, but yet film outside of California to avoid those very taxes
The truth comes out of your butt, apparently. Do you really think the ones calling the location shots are liberals?
YES. You all just had a sycophant fund raiser for the idiot in chief the other day.
Bad news again for California Production. Our state HAS to get more competitive or we will lose more productions like this. This should not happen.
Way to go Cali!
Remember when movies were made HERE? What’s wrong with you Los Angeles?
Didja, EUE/Screen Gems Co-Owner and COO Chris Cooney? Didja “aggressively pursue this piece of business”? Cuz it sounds like they simply threw a shitload of cash at you and you #cameinyourpants. Remember that 99%/1% thing? Yeah, your company is the asshole in that ratio. You’re probably saying, “Nothing personal – just business”, and that’s the problem. We are people, not a camera dolly you can rent in any town. We live here. We work here. We make your product. There are no more professional crews and talent in the entire world than here in southern California. And you stab us in the back for a buck or two.
This movie will profit half a billion dollars, and Screen Gems couldn’t afford to keep it at home – in this economy? The entire state of California should boycott this, and all Screen Gems pictures from here on out. Let’s see if they like that incentive!
Screen Gems owns the studios, not the productions filming there. If you want to boycott something, boycott Marvel Studios’ upcoming films instead.
You’re correct, Matt – I read the story wrong. My ire is misdirected at Screen Gems and should be directed at Marvel.
Though Marvel did take the pocket-fattening payola (pay-for-play is accurate here) cash, I’m sure Chris Cooney did blush with guilty pleasure when the state of North Carolina handed him this ace-in-the-hole of ridiculous kickbacks to offer prospective film companies.
You poor, deluded person; in America, it’s ALL about the money.
If you had a choice between paying, say, $20million to produce a movie, and $20 million; would YOU actually spend the extra $5 million, just to be loyal to California? You’d give up an extra FIVE MILLION DOLLARS in pure profit?!!! It would not be a good business decision. Money is what motivates. Money makes a lot of the basic decisions in our lives. NOBODY in their right mind would shun $5,000,000 in savings/profit for any misguided sense of ‘loyalty’. The loyalty of the American business person is the bottom line: MONEY.
Minor correction:
I meant to say the difference between $20 million and $15 million (to reflect the 25% mentioned in the article)…
I’m sure I’ll get flamed royally for the slip of a finger.
welcome to north caroline, the new vancouver/toronto.
Now you see that if a govt.taxes a company MORE than they can bear, the company may just move to another place where, not only is the tax less, but the new place actually GIVES something to the company in the form of TAX BREAKS.
Wonder if the democrat’s govt. of California appreciates the actions of the democrat’s govt. of N.C. doing the tax break for a longtime California company??
DEMOCRAT-Dog eats DEMOCRAT- dog in this DEMOCRAT-obama economy!
What? Jobs fleeing California? Jerry Brown told us that ‘green’ jobs were the promise for a resurgent California, and that he alone was experienced enough to make it all happen quickly. I guess losing the movie biz is okay.
Get ready for more of this, Hollywood. We live in an over-taxed, over-regulated state, and voters everywhere else have rejected this type of system and job creators know it. But not us here. All of our tax money goes to public-employee unions and illegals, and the rest of us can just deal with it. We are on a path towards becoming a giant Detroit.
Save your breath. It seems like everyone just wants to bash NC, Marvel, and Screen Gems for not being LA and being disloyal to LA.
Whatever floats their boats.
savvydude – I completely agree.
Screw Marvel…How much money isnt enough for these people.
A few number crunchers and producers with no loyalty to filmmaking
in Californa, its pack your bags, “Were leaving on a jet plane.”
Nice Holiday Greetings-Scrouge
Bet the duck
You’re actually bitching about studios realizing that you need them a hell of a lot more than they need you? Typical California mentality… no wonder so many businesses are fleeing the place at disturbingly high rates. Wonder what you’ll do when there’s no more tax money to pay for all the BS entitlement programs.
OK Hollywood community – I have seen two comments about how our state prefers to pay entitlements to illegal aliens and public employees. SO – what do you do about it? Continue voting for Moonbeam? Why do you? He represents the very ideal you area harping about.
Righteous, self-satisfied Hollywood 1%’er leftists just love that corporate welfare.
At least we can hope it kicks the unions in the balls; we need some return on the tax money stolen from us.
So now the 1% are leftists? LOL! Nice try, corporate welfare junkie. FAIL.
I believe he is referring to the segment of the 1% that are leftists. They call for higher taxes on the ‘rich’, yet flee their own state to pay lower taxes elsewhere.
The ‘corporate welfare junkie’ in this scenario is Screen Gems. I’m guessing that Clint Culpepper is in that 1%, if not the .1%.
Fuck you California.
Keep telling yourself that you live somewhere other than California or New York because you actually prefer it. You might convince somebody someday, maybe even yourself.
Wilmington, NC…wasn’t that were Deliverance was shot?
Why the hell should there be any loyalty to filming in California where the unions are like the mob and get paid way too much and cause huge headaces. News flash, it’s an international world and all the studios are are actually international companies owned by non Americans. Why should they not go where they get the best bang for your buck.
Umm same union there. It’s called iatse and sag/aftra with the same teamsters
FUCK Jerry Brown and the left wingers in Sacramento. Nancy Pelosi, Boxer and Finestein. Vote them all out. CA without the movie industry is the 1800 gold rush without the gold. These left wing hypocrites cry “please tax us more” and when they are taxed they so “NO, I didn’t mean me, US doesn’t include me”
Now Jan, do you really think that voters are going to vote conservative republicans in office in any large numbers in California? Really think about it, the west coast from Seattle to LA is blue country. Always has been, always will be, and this is only one movie, a movie that will no doubt do more in overseas BO than domestic, so really who cares, except maybe you. At least both companies Marvel and Disney are based in LA.
People like you are just so funny. If you live in California maybe you should consider a Red state like Nebraska
Wrong lsb. It will do well domestically too.
Looks like the Drudgelings have infested yet another DHD post. Now that the box office has rebounded, they can’t post in those threads about how America is protesting Hollyweird’s liberal agenda or whatever, so now we get all of this babbling about corporate taxes and unions.
I don’t know what the big deal is, by filming in LA they are filming in Mexico, right? At least North Carolina is part of the US.
LMAO @ Bill H comment. So true. I agree partly what Jan said. The hollywood crowd was recently in the press asking Obama to raise their taxes. Why not pay a little extra to benefit their state? Is it because they want to make a profit??? How dare them! or perhaps they don’t trust the elected officials who run CA, successfully into the ground, with all that extra money. If so, how double dog dare they question Moon Beam Brown!