A world-class film studio proposed for construction in south Santa Fe took a major step closer to reality Tuesday with the purchase by Santa Fe County of 65 acres from the State Land Office.
The move clears the way for the county to begin negotiations with Santa Fe Studios, which is hoping to build a 172,000 square-foot, eco-friendly facility on the land off N.M 14 south of town.
Officials at the Land Office Tuesday accepted a $1.82 million check from the county. An additional $480,000 was credited toward the purchase for infrastructure improvements on the site, which has been leased by the county for years.
At an early afternoon press conference at the Land Office headquarters in downtown Santa Fe, excitement about the film studio project was palpable.
Commissioner of Public Lands Patrick Lyons accepted the check to applause and county commissioners Virginia Vigil, Mike Anaya and Jack Sullivan waxed enthusiastic about Santa Fe Studios.
"The film industry is something I'm passionate about and I think there's a lot of passion for the film industry in this community," Vigil said.
"I'm very excited about it (the studios) and I think it's impact is going to be phenomenal," she said.
Added Sullivan, "All the stars seem to be in the proper places to move forward."
Santa Fe Studios isn't quite a done deal, though, and the county's purchase of the 65 acres is essentially just a first step in the process.
Next up is an April 29 vote by the County Commission on an application from Santa Fe Studios and whether to publish an ordinance to govern the project.
The state Land Office has leased the 65 acres off N.M. 14 to Santa Fe County since 2002 for a business park, although the site has never attracted a tenant. Two previous proposal for film facilities on the site have fallen through in the past several years— and in one case complications in the state-county relationship were blamed.
Negotiations for a sale to the county have been ongoing between the state and the county for about two years, and last fall the county made an offer of $2.3 million for the property.
As late as last month, the Land Office said it had questions about whether the bid's $480,000 in credits included "intangible improvements," defined by the state as things such as planning and zoning.
Santa Fe County attorney Stephen Ross said Tuesday the improvements claimed by the county are for real infrastructure development, not intangibles.
A state Attorney General's Office opinion issued in February concluded that state law doesn't authorize the State Land Office to compensate developers for intangible improvements such as planning. The opinion concerned a Las Cruces project.
The 65-acre lot where the film studio is planned has been appraised for $2.3 million, which is what the owners of Santa Fe Studios have offered to give the county for the land.
Lance Hool, a movie producer with credits such as "Flipper" and "Man on Fire," came up with the idea for Santa Fe Studios. His son, Jason, would serve as the studios' president.
Some believe Santa Fe Studios, which would include four stages and a training school, could be a City Different version of Albuquerque Studios. The Hools claim the first phase of building could be a boon for the area, creating as many as 500 jobs and generating $71 million in annual payroll to the local economy.
But the Hools have also said they want industrial revenue bonds for the project— which would abate property tax for the next two or three decades— as well as help financing certain infrastructure improvements, including widening of N.M. 14.
If the project does move ahead, it could be up and running by the end of 2009, Jason Hool said.
"I believe all the commission is in support of it. I don't anticipate any roadblocks," he said Tuesday.
