Proposed tax rebate for City of Shreveport

Councilman Calvin Lester will ask for a vote on this resolution on Tuesday, May 12. It would establish a local tax rebate. Let me know what you think. Our City Hall reporter Adam Kealoha Causey will be following up, so if you have any direct questions about City Council, email him at acausey@gannett.com. The full text of the resolution is below:

RESOLUTION NO. ___ of 2009

A RESOLUTION ESTABLISHING THE CITY OF SHREVEPORT FILM INDUSTRY INCENTIVE POLICY AND OTHERWISE PROVIDING WITH RESPECT THERETO.

By: Councilman Lester

WHEREAS, the film industry represents a tremendous opportunity for economic development in the City of Shreveport, but is in a highly competitive field, and therefore to encourage growth, industry incentives are important.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shreveport, in due, regular and legal session convened:

SECTION 1. That the following film industry incentive policy is hereby adopted, to read as follows:

FILM INDUSTRY INCENTIVES

1. Incentives

a. The City of Shreveport offers economic incentives to the film industry in the form of rebates of sales taxes paid on lodging, lease, rental and other production expenditures made in City of Shreveport, including but not limited to sound stage or location leases and post production costs.

b. For the purposes of this resolution, the term “film industry” shall include film and television productions, television commercials, and music videos.

c. Incentives are subject to the production company entering into a contract with the City of Shreveport relative to the incentive payments.

2. Incentive Funding Caps:

a. Basic Cap- $150,000.00 total to any individual project or production for new productions by a production company which has not previously received any City of Shreveport incentives.

b. Subsequent Productions- $165,000.00 for a production company which brings a subsequent production to the City of Shreveport within twelve months of completion of the prior project.

c. The funding cap shall be increased by $10,000 for productions which both have a production office in Caddo Parish and lease premises to be used as a soundstage in Caddo Parish.

3. Requirements for Rebate:

a. Production must either:

1. Have its production office located within Caddo Parish, or

2. Utilize a soundstage located within Caddo Parish, and;

b. Have acceptable expenditures of the type listed in paragraph 4, paid within Caddo Parish, amounting to at least $300,000.00.

c. In order to qualify for the enhanced subsequent production cap, both the original and the subsequent production must meet the criteria listed in 3.a. and 3.b.

4. a. Productions meeting the above requirements will be eligible for incentive payments equal to the City of Shreveport sales taxes paid on the following expenditures:

1. LODGING for cast and crew incurred in the City of Shreveport.

2. LEASE OR RENTAL EXPENSES, including all lease or rental expenses for equipment, automobiles, sound stage, location or production offices paid for a site in the City of Shreveport.

3. OTHER PRODUCTION AND POST PRODUCTION EXPENSES, including purchases of materials and supplies, related to the production of the project and post production.

b. For the purposes of this section, the term “City of Shreveport sales taxes” means sales taxes levied by the City of Shreveport, excluding the portion of the sales taxes dedicated by law or debt obligations to another purpose.

c. Payment and eligibility for incentives shall be subject to such reasonable rules and regulations as determined by the City of Shreveport Film Office.

5. Application process

a. Upon executing a lease or rental agreement, applicant should contact the City of Shreveport Film Office to begin the prequalification process. Film industry incentives are administered by, and all determinations of eligibility will be made by, the City of Shreveport Film Office.

b. The application shall include all information required by the City of Shreveport Film Office, including but not limited to:

1. Total projected budget,

2. Estimated total of expenditures eligible for the sales tax rebate,

3. Estimated room nights,

4. List of vendors and services likely to be utilized.

c. If the application is approved by the City of Shreveport Film Office, the production company shall enter into an agreement with the City of Shreveport for the incentive payments.

d. When the production efforts in the City of Shreveport are completed, applicant may apply for payment. Payment must be requested no later than 180 days from the completion of production. Payment will be made after the city has reviewed and, if necessary, audited the expenses in the application.

e. Payment of incentives is subject to funding as follows. The City of Shreveport will appropriate funds for incentive payments in an amount determined by the City Council and adopted in a budget ordinance. The Mayor will be authorized to execute agreements for incentive payments up to the amount of the incentives authorized herein, until all appropriated funds have been expended or encumbered by the exeution of agreements. Once funds appropriated in a fiscal year have been expended or encumbered, no further incentive agreements will be executed for that fiscal year, unless additional funds are appropriated for that purpose. In the event an agreement is entered into for a production extending into a future fiscal year, the agreement will include a non-appropriation clause, making incentive payments in future years for that production subject to the appropriation of funds for that purpose.

f. This incentive program applies to expenditures in the City of Shreveport for productions begun after the effective date of these provisions. For the purposes of the enhanced, subsequent cap, the original production may have already begun, but must still be on-going, at the time of the adoption of these provisions.

BE IT FURTHER RESOLVED that this resolution shall become effective after a budget ordinance has been adopted appropriating the funds for the incentive payments, and a resolution has been adopted authorizing the Mayor to execute agreements for the incentive payments.

BE IT FURTHER RESOLVED that if any provision of this resolution or the application thereof is held invalid, such invalidity shall not affect other provisions, items or applications of this resolution which can be given effect without the invalid provisions, items or applications and to this end the provisions of this resolution are hereby declared severable.

BE IT FURTHER RESOLVED that all resolutions or parts thereof in conflict herewith are hereby repealed.

Approved as to legal form:

_____________________

City Attorney’s Office