City more than doubles financial support for 828 Productions

The Las Cruces City Council sent an additional $2.8 million in subsidies to 828 Productions during a council meeting on Dec. 18, more than doubling their financial support as the studio looks to grow its presence in 2024.

The unanimous decision by the council adds $2.8 million in public financial support to the already promised $900,000 of capital outlay. 828 Productions will use the money for construction and building renovations throughout the city, according to the city’s Deputy Director for Business Development, Chris Faivre.

“I know there’s a lot of their (828 Productions) pending productions are dependent on a lot of these improvements,” Faivre said during a presentation about the request.

828 Productions began operations in California in 2021. The company moved its headquarters to Las Cruces in August 2022. Welcomed by the governor and assorted state and local officials, 828 Productions promised to invest $75 million in Las Cruces.

The studio also promised to create 100 jobs with salaries ranging from $58,000 to $101,000 annually. For context, the U.S. Census Bureau estimates the median household income in Las Cruces to be $51,013 per year.

In addition to Las Cruces’ support, New Mexico promised $3 million in subsidies once 828 Productions showed that they’d created the 100 jobs. Those jobs include management, studio staff, studio crew, visual effects specialists and accountants, according to 828 Production’s application for state subsidies.

But unlike the state money, the city’s financial support is not contingent on any performance metric. The $2.8 million comes from revenue collected via a “hold harmless” gross receipts tax. The money must be spent on film infrastructure, according to the amended ordinance that the council approved.

A week before the council approved the increase, Jonathan Sepp, former director of the nonprofit Film Las Cruces and now 828’s operations and public affairs manager, told the council about 828 Productions’ plans to expand in Las Cruces.

“We’re not just here making a movie or building a soundstage,” Sepp told the council on Dec. 11. “We’re really here to build, develop and establish an industry here in Las Cruces.”

During the brief presentation on Dec. 18, no member of the Las Cruces council questioned the amendment or commented about the increase in public funding.

In fact, the only comments about the change came from outgoing Mayor Ken Miyagishima, who joked about appearing in a movie with actor Liam Neeson. (Neeson had been mentioned at a previous meeting but has not committed to appearing in a film production in town.)

“I just want to let my wife know that it looks like he (Neeson) is coming down, and I may get a chance to act in that movie with him,” Miyagishima said.