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Hollywood Continues to Flee California at Alarming Rate

When Paul Audley took the job as president of FilmL.A. in late 2008, he was astounded to discover that physical production on the $70 million pic “Battle: Los Angeles” wasn’t being done in Los Angeles.

“It stunned me that the movie was shooting in Louisiana, and that the state of California was letting this happen,” he recalls.

In the subsequent five years, the situation has only worsened, despite the film production incentive program California enacted in 2009, which provides for $100 million a year in tax credits for what’s usually 20% of production costs. That’s significantly smaller than programs offered by other states such as New York, which offers $420 million a year in credits for 30% of production costs.

The trend has been mounting for high-profile films set in the Golden State to be filmed almost entirely outside California, due to lucrative tax breaks elsewhere that producers can’t turn down. One key component of new legislation to strengthen California’s incentive program, introduced Feb. 19, would raise to $100 million the current budget cap of $75 million on eligible productions. To drive home the need for state support, attendees at a Feb. 22 rally in Burbank held by Hollywood unionists were handed petitions to send to Sacramento citing that only one of 41 big-budget feature films shot in 2012 and 2013 was shot entirely in California.

The latest example of a locally set runaway is New Line’s upcoming earthquake thriller “San Andreas,” in which a helicopter pilot played by Dwayne Johnson rescues his daughter in San Francisco after a 10.0 quake. Except for six planned days of shooting in San Francisco, the entire $100 million movie will be made in Australia at the Village Roadshow Studios in Gold Coast, Queensland.

In December, “San Andreas” was granted a portion of Australia’s $20 million film fund set up specifically to attract overseas movies. Additionally, the film benefits from offsets from the Queensland Production Incentive Scheme, as well as local payroll tax rebates and federal rebates. Queensland officials have estimated that the movie will pump $30 million into the state economy, employ 70 local production crew, and provide roles for more than 2,000 extras.

“It’s frustrating to get only a few days shooting in San Francisco, but it’s better than nothing,” said San Francisco film commissioner Susannah Robbins. “Once again, the producers are going to where they’re getting the best incentive.”

There were even fewer days — four — shot in San Francisco for Legendary’s upcoming tentpole “Godzilla,” with most of the filming being done in Vancouver and Hawaii. Fox took a similar tack with its forthcoming summer release “Dawn of the Planet of the Apes” and that pic’s 2011 predecessor “Rise of the Planet of the Apes,” both of which were shot primarily in Canada with a few days of establishing shots in San Francisco.

“Producers tell us, ‘I’d love to shoot here but I have to go where the incentives are,’ ” Robbins notes.

Robbins has been touting San Francisco’s rebate program — which provides for up to $600,000 of production costs including rentals, street closures, permit fees, payroll taxes and police officers — in order to overcome the ingrained belief that such programs don’t exist in California. “We had eight productions use the rebate in its first six years, and we’ve had seven more since July.” San Francisco has a tradition as an iconic film location, with such titles as “Bullitt,” “Dirty Harry” and “Vertigo” having filmed in the city.

Further south, not a frame of “Rock of Ages,” set on the Sunset Strip, was shot in Los Angeles, although filming did take place in Hollywood — Florida, that is — at the Hard Rock Casino, along with a six-block section of North Miami Avenue in downtown Miami, decorated as a late-1980s version set of the Strip, replete with the Whisky-a-Go-Go, Frederick’s of Hollywood, Tower Records and the Angelyne Billboard.

Even the ruins of a future Los Angeles shown in “Elysium” were shot in Mexico and Canada.

Steve Dayan, who serves as vice chairman of the state film commission and secretary-treasurer of Local 399 of the Intl. Brotherhood of Teamsters, spoke at the Feb. 22 labor rally, promising his union would be willing to repeat its 1999 action of encircling the State Capitol in Sacramento with 200 Teamster trucks — a tactic used to campaign for incentives. “We are not going to let other states poach our jobs,” he said, evoking loud applause from the 700-plus attendees.

Audley’s agency is tasked with troubleshooting and simplifying the permit process. He’s been pressing the point that although location-based feature production increased by 18% in Los Angeles last year, to 6,900 days, that number is only half what it was in 1996. And the growth is not coming in higher value projects. Audley said. “(Other states are cherry picking the best stuff away from us,” he noted.

Dayan admits that producers have been substituting locations for as long as films have been shot. “Downtown L.A. has been used for New York City many times,” he said. But he noted that production costs on big features are now so high that it’s impossible for producers to shoot in town.

“We’re making the argument that by creating and retaining jobs, the new legislation would pay for itself,” he explained.

While statistics abound that show the extent of the economic impact of locally set runaways, on another level, the issue is emotional. The Feb. 22 rally featured an impassioned declaration by Maria Elena Durazo, secretary-treasurer of the Los Angeles County Federation of Labor, who pledged that organized labor will back the push for an improved film incentive.

“We are going to stand with you to make sure Hollywood does not become Detroit,” she declared. “I’ll be damned if we’re going to stand by and see the last film industry worker here turn out the lights. Hell, no!”

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