PRELIMINARY REPORT Recommendations to the

Mayor and the City Council

of the City of Schenectady

concerning the formation of a film commission / motion picture and media arts office

2Draft 2/9/2015

Prepared by Joe Piazzo & Nick BarberIn December Nick Barber and Joe Piazzo met to discuss the possibility of forming (or re-constituting) a Schenectady Film Commission.

We discussed the commission as it was operated and organized in the past and reviewed our options for the future. We realized that the industry has changed radically over the past decade and it would be highly useful to explore what a progressive film office / commission would look like today – given the opportunity to start anew.

We have begun our exploration of the Motion Picture and Television production industry by meeting with organizations and individuals that have an interest in the Creative Economy of the Capital Region.

That feedback, along with a significant amount of background research has been collected in this presentation.

The process has just begun, and we need the communities supprt and investment in the important economic development initiative to continue.

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INTRODUCTIONOur intent was to answer two basic questions about creating a new Film Commission / Motion Picture Production office for the city and county of Schenectady.

1. Do we need a Film Commission?

And if so...

2. How should it be organized and what is its mission and its tasks?

WHAT IS A FILM COMMISION?Film commissions are quasi-governmental, non-profit, public organizations that attract motion media production crews (including movies, TV and commercials) to shoot on location in their respective localities, and offer support so that productions can accomplish their work smoothly.

WHO HAS FILM COMMISSIONS ?States, Regions and Cities – even CountriesCalifornia's Film Commission is probably the largest.With 60 Regional Film Offices (for local support, location information and permits)

There are over 3,000 Film Commissions and Offices worldwide.

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There are 14 regional & local film offices across New York State.

The Capital District has 3 – Albany, Columbia and Green. Offices are locally established and funded. The state office can provide support upon request

The Governor’s Office of Motion Picture and Television Development, is New York States Film Commission - its office are located in New York City.

www.nylovesfilm.com

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HISTORYWe had one – now we don't

In 2009 Mayor Stratton appointed an official City of Schenectady Film Commission.

How active of a commission it was seems to be a matter of debate, however, it clearly has been dormant during the current administration.

As a former member of the commission, Nick Barber can speak to details of its history. Many former members, who are still part of our community have expressed enthusiasm at the prospect of a new organization if set-up correctly.

A PLACE BEYOND THE PINES - was probably the highest profile production to occur during the original organizations tenure.

Collection of this data is important and is dependent upon how the commission or office is structured and how it views its mission.

This movie brought a lot of positive publicity to the city...however official information is scarce as to:

● Economic impact of the production for the City

● Producers positive / or negative experience shooting here.

● Public's ultimate perception about the industry.

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1. Do we need a Film Commission?

A Fresh Approach – we acknowledge the massive changes the Motion Picture and Television the industry has undergone in the last 5 to 10 years . It has been unprecedented – even surpassing the impact that television had on movie theaters in the late 1950's and 60's.

Digital has changedEVERYTHING – production, distribution, exhibition.It compares to the U.S. manufacturing base movingoverseas. COLLECTING DATA

We have started by interviewing local, regional and national professionals and studying the way other municipalities and regions approach the industry.

● Former members of Schenectady Film Commission● Local business leaders and stakeholders● NY State Film Commission – Business Development

resources● Capital Region professionals and organizations● Film offices of Albany, Saratoga, Hudson & Green counties● Educational Institutions with media programs● Independent filmmakers

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A Fresh Approach without re-inventing the wheel.

HOLLYWOOD NAME DROPPING!

Some of the individuals and organizations who have provided council thus far.

● Proctors, Arts Center Staff, OSM, Philip Morris (willing to serve),

● Nick Barber, (and other former members of prev. commission)

● Prince Sprauve (Fast Life/ Revolution studios / Schenectady H.S.)

● Joe Fava, Doug Sayles – everyone is interested and willing to be involved in the right organization.

● Film Albany - Debbie Goedeke very supportive for regional cooperative.

● Hudson, Catskills, Saratoga Film offices– all welcoming.

● Buffalo – very active film commission (see Toronto)● Upstate Independent Filmmakers Network● The Upstate New York chapter of Women in Film &

Television (UPWIFT)● Empire State Development Corporation – Production

Tax Incentives● Ray Gillen has also expressed support

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SOURCES

We also looked closely at 2 important studies dealing with the Motion Picture and Television production Industry and the Upstate New York Creative Economy

Overview of Motion Picture Industry and State Tax CreditsAn authoritative report about the Hollywood Film Industry published by LA county for the California Legislature. 2014

CAPTIVATE - Leveraging Regional Assets for A Vibrant Future

Capital Region Creative Economy Project is an economic assessment done over the last 1 ½ years . Specifically, it’s about business development; increasing jobs and tourism in the Capital Region of upstate New York.

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WHERE IS THE INDUSTRY HEADED ?Changes in the industry has made it possible for film production to establish new “centers of gravity” outside of Califonia. This chart shows the DRAMATIC decline in films being produced in California Since 1997.

Hollywood calls these movies “runaway” productions! The rest of the country calls this a GREAT OPPORTUNITY

The question is – where are they running to?

Overview of Motion Picture Industry and State Tax Credits Report

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THE GOOD NEWS IS A LOT OF PRODUCTIONS ARE COMING TO NEW YORK STATE – we are already #2

Since 2000 the revenue for New York from Motion Picture, Television has more than doubled. But...WHY??

Movie makers no longer need sunny weather ?!That's a bit of an exaggeration – but the truth is that the industry has changed and is no longer is tied, as it once was to Hollywood Studios for all its production needs.

Geography is less of a factor, note how California production is centered in LA - but NOT in the rest of the state. Note also, that New York production is Primarily NYC.....

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WHY? INVESTING IN INDUSTRIAL DEVELOPMENT WORKS

NEW YORK spends nearly 420 million dollars a year promoting the state to the industry in the form of tax credits – rebates. Twice as much as any other locality and alone in the North East in that level of commitment!The CAPTIVATE report has shown that the CREATIVE ECONOMY is a vitally important industry to the region – with enormous potential for grow. Traditionally Film Commission activities have often been seen as a part of the hospitality and tourism sector. It is clear from the chart below that the CREATIVE industries economic impact has as much In common with that of manufacturing.

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THE CREATIVE ECONOMY IS A CRITICAL INDUSTRY TO THE REGION

Film, Television, Advertising / Commercials and Convergent Media such as Video Game Production and Streaming Content share many of the same Capital, Training, Talent, Labor and Infrastructure needs as any other traditional industry.

CREATIVE ECONOMY REPORT - SECTORS

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NEW YORK STATE PRODUCTION IS CENTERED IN NYC

8 BILLION dollars a year in NEW YORK CITY (almost doubled since 2002)

The STATE invests 420 million in Tax Credits. Is it only to benefit one part of the state??

As the industry grows, it needs to expand.

Many production experts have said that NYC is nearing capacity. The Capital Region has the ideal infrastructurefor growth.

OUR GOAL IS TO ATTRACT EXISTINGINDUSTRY UPSTATE

Schenectady has the innovative ideas, will and the momentum to be a LEADER

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THERE IS ANOTHER WAY TO VIEW THIS GRAPH

THE INDUSTRY IS ON THE MOVE...and it has to go

somewhere

HOLLYWOOD

NYC

SCHENECTADY

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SHOVEL READY

One of the reasons given for Schenectady winning approval for the Rivers Casino and Resort...is that the Mohawk Harbor development project was “Shovel Ready”.

Yes we do need a Film Commission if it's JOB is to make Schenectady shovel ready for the Motion Picture, Television & Media Arts Industry.

HOW We Do It is Key

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2. How should it be organized and what are its tasks?

WHAT WAS A FILM COMMISION AGAIN?

Film commissions are quasi-governmental, non-profit, public organizations that attract motion media production crews (including movies, TV and commercials) to shoot on location in their respective localities, and offer support so that productions can accomplish their work smoothly.

Note the emphasis on PROMOTE and FACILITATE

TRADITIONAL DEFINITION

In very active industry centers that include places like LA, NYC, Austin, Seattle, Portland, Atlanta, Boston,New Orleans...it is very much about FACILITATION – providing services to an ongoing (and thriving) local industry. Infrastructure, tax credits, permits and municipal assistanceand services – Film Offices

In most other places it is really about promotion of the area as a LOCATION OR DESTINATION very similar to how a Tourist Bureau may promote a historic site or natural wonder. The economic impact is sporadic and focused primarily in the hospitality sector. Not surprisingly – these promotional duties are usuallyaccomplished Convention and Visitors centers

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TRADITIONAL HOLLYWOOD LOCATION PRODUCTION

THE CIRCUS COMES TO TOWN

Attracted by a particular landscape, unique structure or natural wonder a movie production goes “on Location” for a portion of its production. In the past, Film productions were “tethered” to very specialized support industries – film laboratories, equipment rental facilities and other specialized services found primarily in LA or NYC. No matter how much they would have liked to stay –

Hollywood ALWAYS booked a round-trip ticket.

Talent & Labor is high unionized. Most equipment such as lighting and cameras are shipped in. Crews are normally already established before arriving as is most of the cast. It is not uncommon for the crew that does arrive to be part of the “second unit”.

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ECONOMIC IMPACT IS LIMITED

They rent a few locations, eat a bunch of catered food – and “barely” sleep in hotel rooms. (average film production day is 12 – 14 hours or more)

They don't go to many restaurants, bars or buy major appliances. (unless it is a prop – and they will probably try to return it when done).

They don't buy a house and pay taxes!

In the past the goal of a local film commission was to attempt to attract a Hollywood film Production, particularly by the uniqueness of locations and attractions to come and shoot a movie there.

They come, they shoot and they leave - the economy benefits in the same ways as other tourism activities .

It is not just about tourism anymore.

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PHOTO LABS have been replaced by the CLOUD “Developing” is now a matter moving and managing Data rather than Film Cans.

While specialized equipment houses with technical expertise still exist and are needed. Camera and support equipment have become a commodity. Independent productions now often buy equipment as part of budgets and internet based rental houses, who rely on overnight shipping, are emerging as an option for technical rentals.

Today the traditional production Chain has been Broken....

Today the ideal is to attract the industry here via incentives and a friendly production environment with the hope that..

They come, they shoot, they stay, and they shoot some more…

The economy benefits in a way that happens when a large business or industry relocates here.

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It is not just about tourism anymore.... Putting it another way

Why would someone want to shoot a film in Schenectady?

a. because we have 400 years of rich history and locations to choose from.b. because we have a wealth of untapped talent just waiting to be discovered.c. because we can refund you up to 30% (or more) of your production costs through NYS tax credits / rebates.

YES YOU GUESSED IT!c. because we can refund you up to 30% (or more) of your production costs through NYS tax credits / rebates.

New England is filled with covered bridges, historic architecture and scenic vistas but which ones are accessible and affordable to use? Time is money! Location choice often comes down to who, locally understands what the filmmakers need to get the job done?

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Lets not forget:

Disney Land was a product of Hollywood. Stars and movie people have never been strangers to the Las Vegas Strip. The reason television has been traditionally located in New York is because is that began as a conglomerate of advertising dollars and content borrowed from Broadway Theater.

We have ALL of this here in Schenectady – building synergy between related parts of the local economy encourages success for all these industries.

A focus on Motion Pictures, Television and Media Arts industry is a natural addition to what is already happening in the city. The creative economy report shows it is another piece of the puzzle that fits neatly into development plans:

SCHENECTADY REGIONAL LEADER MEDIA ARTS & ENTERTAINMENT DESTINATION

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CREATING A SHOVEL READY ENVIRONMENT

1. Organize local resources around NYS Production Tax Credit program.

Movie Making Made Easy Schenectady Make sure a production has ALL the reason to stay here. Approved production facilities – the places to spend as much of the below the line budget dollars as possible. Union affiliated labor pool to get that additional 10% special discount.

SAVE 30% ACT NOW!!!

2. Facilitate the local productionProcess.

Perfect the interface between Movie makers andcity services and private sources is a smooth and mutually beneficial as possible. Time is Money – On Schedule or Even SAVED production days have huge “above the line” budget IMPACT.

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3. PROMOTE to attract & recruit specialized talent and services to the city that are unique to the Capital Region.● Entertainment legal● CPAs that are motion picture - accredited

by the state (there are none outside of nyc)● Investment Capital / trusts (it is possible to borrow

against tax credits)● Leverage natural association with entertainment and

gaming industry.

CREATING A SHOVEL READY ENVIRONMENT

4. ACTIVELY pursue New York City productions to come here. ● Set-up a regular presence in the city– representation

or even a Capital Region satellite office. ● Advertise and promote the region in trade

Publications. ● P.R. - serious campaign using media.

5. FOSTER local talent and production. One of the best things that could happen to this area is a TV series (Boardwalk Empire, Sex and the Electric City) to be based here for an extended run. One long running, major production could create a critical mass and establish a “center of gravity” for this industry in this region. A production such as that would most likely have its creative beginnings with a local writer, producer or director

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● Establish a fund / local film investment trust to provide seed money and project incubation.

● Engage low-income under-represented communities – as content producers, consumers in concert with job training / economic development activities.

● Use state and federal funds creatively to accomplish this. For instance see Revolution Studios Projects such as “Fast Life”. motion picture

Excerpt from Creative Economy Report

6. EMBRACE AND IMPLEMENT FINDINGS AND RECOMMENDATIONS OF CREATIVE ECONOMIES REPORT

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6. Find a production niche and develop it.

Motion Picture, Television and Media Arts are industries served by many highly specialized talents and processes. Discovering an under-served aspect of the industry that is not regularly available regionally (or even statewide) could be very successful and outpace industry growth as a whole. Our institutions of Higher Education could take a leadership role in technical research and development.

Schenectady BIZLAB and Start-up NY Tax program could be leveraged to attract a digital imaging hardware & software INVENTION company here with ties to the industry. The GoPro Camera company, for instance,was a small start-up not so long ago. It has grown to become a multi-billion dollar industry leader. What QUIRKY idea is next?

Motion Capture Technology is a technique that is used both in Motion Picture Special Effects, Video Game Production, and Animated movies. It also utilizes the diverse talents of performers: dancers, martial artists and athletes to name a few - well represented here in theCAPITAL REGION .

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A 300 million dollar investment also - this is a serious industry!At the Rivers Casino press conference a question was asked about the once proposed area TV Studio. There still seems to be significant local interest.● Post Production specialties● Technical Innovation and Invention● Sound Stage or Hybrid Broadcasting ● Facility● Special Effects● Motion / Performance Capture● Advanced Live Production & Streaming

Legere Armory ProductionsProduction Ready State approved production facility(only other space in the entire capital region outside of the Albany Times Union Center)

MIAMI GETS A HARBOR / FILM STUDIO

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PROMOTE and FACILITATE and FOSTERMOTION PICTURE, TELEVISION & MEDIA

ARTS COUNCILof SCHENECTADY (or ?Electric City)

Film, Television and Convergent Media Office

MISSION“To promote, facilitate, and foster Film, Television and the Media Arts industry in the City and (? county) of Schenectady.”

● Motion Pictures (Hollywood & Independent Films)● Television (traditional and nontraditional)● Broadcasting & Streaming (Live and Convergent

Performing Arts events)● Visual Effects - Performance and Motion Capture● Gaming / Interactive / Rides & Theme Parks● Technical Facilities and technology Research And

DevelopmentRecognition of the Film industry as an important manufacturing sector of the upstate economy. Movies are “Made in America”. The Media Arts produces products in the same way as any other industry. The Creative Economy’s service and infrastructure needs are the same as any other business.

IT IS ABOUT INDUSTRIAL DEVELOPMENT as much as it TOURISM. Reorder the traditional model placing Facilitation and Fostering before Promotion.

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PROMOTE REGIONALLY: Traditional attractions such as locations and local labor and talent pools are best organized in common databases, web resource guides, and promoted together as a comprehensive and highly cooperative production environment

FACILITATE and COOPERATE in a leadership role:

Schenectady as a Center of GravityThe region is too small for silos – work with all the communities (particularly municipal public services to ensure a common production experience across the region). That said, the City of Schenectady – because of its compact size – can work highly efficiently as a “Production Central”.

FOSTERING local talent and projects not only ensures that they are made here – it encourages the people who create them to LIVE here.

THAT IS WHAT MAKES A CREATIVE ECONOMY A CREATIVE COMMUNITY!

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ORGANIZATIONAL STRUCTURE● Official status that can weather political change.● Ability to raise funds and eventually create a budget

with paid staff & physical location. ● Commission or Council that has both operational and

advisory membership structure.● Representation by Film and Creative Media industry● Hospitality, Finance, Chamber of Commerce & Tourism

(like H.O.M.E.S.)● Strong presence in City Hall to facilitate areas of

interface with city services. Permits, General Services, Police and Fire.

● Strong “County” presence that can extend commission to city and towns in Schenectady County.

● Tourism / Regional representation to work with Capital Region / Upstate Film Commissions and interests.

FILM COUNCIL & OFFICE – Priorities● Embrace the Upstate “Creative Economy” (concept and

report conclusions).● Integrate Convergent Media into mission.● Treat Motion Picture & Media Arts Production as a

manufacturing industry as much as a driver of tourism. ● Foster & Facilitate Locally - Promote Regionally● “Movie Making Made Easy Schenectady” ● Insure that city and county is “ready” for this new

creative industry revolution - infrastructure, labor, training, and technical resources .

● Compete regionally by creating the most accommodating and efficient production environment available. Streamline interface with City & County Government & Services.

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ORGANIZATIONAL – Next Steps

● Create Council, Department or Office.● Recruit & appoint advisory and operational members.● Appoint Film Commissioner to lead operational group.

MAKE A PLAN AND IMPLEMENTFeasibility Study and Business Model for how an effective Motion Picture, Television, and Media arts industry can operate in the Capital Region with Schenectady in a leadership position.

METHODOLOGYNY Empire State Development corp Tax Incentive program as a model-

apply its requirements to our local industry to optimize outcomes to meet....

Creative Economy report's target economic outcomes and goals.

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Productions must meet very specific criteria to qualify for production tax credits.

Take that criteria – establish productionscenarios that meet them – and simulate the production process Step-by-step (like a stresstest) to see what we need to do to as a community to make them happen.

Create 3 model productions based on ESD categories:1. < 15 million dollar Independent Film2. > 15 Million dollar Hollywood film3. A post production specialization that meets criteria (focused on facility and infrastructure such as connectivity)

UNIQUE APPROACH No one – as far as I know, has ever done this. (particularly in the capital region)

Partner with local educational institutions - SHS, SCCC, UNION – use students (from media arts) as research assistants.

The Study itself – developing sample film and media production projects and simulating the execution of them - would be a important learning experience for all.

A REHEARSAL for the commission members operational and advisory, support services, city departments – work out the details of cooperation and collaboration so we are ready for...

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This study would require funds to accomplish. It could be commissioned independently -or part of a the initial start-up phase of the council itself.

Considering the amount of stake-holders in our City already – and those beginning construction here soon – we can't imagine that support can't be found to begin this important economic development initiative.

SCHENECTADY

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LINKS, SOURCES, ACKNOWLEDGEMENTSNew York State Film Office - http://www.nylovesfilm.com/Empire State Development Tax Credits - http://esd.ny.gov/BusinessPrograms/filmCredit.htmlUpstate Creative Economies - http://upstatecreative.org/Captivate 2014 Report http://issuu.com/cfgcr/docs/captivate_november2014/0Downnload https://creativeeconomyny.files.wordpress.com/2013/11/captivate_november2014.pdfLAO REPORT Overview of Motion Picture Industry and State TaxCreditshttp://www.lao.ca.gov/reports/2014/finance/tax-credit/film-tv-credit-043014.pdfAssociation of Film Commisioners International http://www.afci.org/NY Accredited Production Facilities - http://www.nylovesfilm.com/sound-stages.phpAlbany Film Office - http://www.filmalbany.com/Columbia County Film Office - http://www.filmcolumbiacountyny.comTrade Union- IATSE Local 52 http://www.iatselocal52.org/Buffalo Niagara Film Office http://www.filmbuffaloniagara.com/

CONTACT Joe Piazzo for further information, updated versions, or copies of this report. jpiazzo@gmail.com - 518-847-1351

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