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C7K-Urge Legislature To Enhance Florida Film-Entertainment Industry Incentive PrCOMMISSION ITEM SUMMARY Condensed Title: A Resolution Urging The GovernorAnd Legislature Of The State Of Florida To Pass House Bill451 And Senate Bill '1046, The Florida Film & Entertainment lndustry Financial lncentive Proqram With Additional Tax Credits. lntended Outcome Su Item Summary/Recommendation : Maximize The Miami Beach Brand As A World Class Destination Supporting Data (Surveys, Environmental Scan, etc.): N/A On July 1,2010, the State of Florida's first major Film and Entertainment lndustry Tax Creditwas implemented, ushering in a whirlwind of new film and television productions to the state, principally in the Southeast region. Miami Beach alone has seen a 172o/o increase in production dollars spent annually from before the incentive to recent years, when we hosted productions like "Burn Notice," "Magic City, " "Pain and Gain," "lron Man 3," and several locally produced telenovellas from Miami-based Telemundo and Venevision. Film permits in Miami Beach have reached new records in annual permits issued (1123), dollars spent ($127.7 million) and room nights (nearly 29,000) in Miami Beach in the past two years. The $296 million of allocated tax credits has brought in $1.5 billion in new Florida production spending, including $930 million in wages for over 190,000 Florida production jobs. A recent study prepared by the Motion Picture Association of America (MPPA) in conjunction with Visit Florida for the Florida Department of Economic Opportunity (DEO) showed 19.SYo of all visitors and 22.7% of leisure visitors to Florida stated viewing a movie or television series filmed in Florida was wither "extremely important" or "very important" in their decision to travelto Florida and, further, the incentive provides a return on investment of no less than $5.60 and potentially up to $15.00 for every $1 of incentive tax credit issued. The allocated credits have now fully been used or allocated and no further credits were added in the 2013 Legislative session, putting our future in entertainment production in jeopardy. The City's Tourism, Culture, Economic Development Department's Film Office, serving in leadership of Film Florida, the statewide entertainment industry trade association, has worked since the end of last year's session to educate the Legislature on the need for enhanced and reliable funding to compete with states like Georgia, Louisiana and New York. This week, Representative Manny Diazol Hialeah filed H8983, proposing strong and reliable long term funding for the program. A Senate companion bill, sponsored by Senator Nance Detert is N/A Financial !nformation : Source of Funds: N/A Amount Account 1 Total Financial lmpact Summary: N/A Max Sklar, Tourism Cultural and Economic Director AGENDA fiEM C7 KMIAMIBEACHo^rE 3-ll-li340 g MIAMIBEACH City of ,[iomi Beoch, 'l 700 Convention Center Drive, Miomi Beoch, Florido 33,1 39, www.miomibeochfl.gov COMMISSION MEMORANDUM TO:Honorable Mayor Philip Levine and FRoM: Jimmy L. Morales, City Manager DATE: March 11,2014 M!AM! BEACH, FLORIDA, URGING THE GOVERNOR AND LEGISLATURE OF THE STATE OF FLORIDA TO PASS HOUSE BILL 451 AND SENATE BILL 1046, ENHANCING THE FLORIDA FILM & ENTERTAINMENT INDUSTRY FINANGIAL INCENTIVE PROGRAM WITH ADDITIONAL TAX CREDITS. BACKGROUND On July 1,2010, the State of Florida's first major Film and Entertainment lndustry Tax Credit was implemented, ushering in a whirlwind of new film and television productions to the state, principally in the Southeast region. Miami Beach alone has seen a 172o/o increase in production dollars spent annually from before the incentive to recent years, when we hosted productions like "Burn Notice," "Magic City, " "Pain and Gain," "lron Man 3," and several locally produced telenovellas from Miami-based Telemundo and Venevision. Film permits in Miami Beach have reached new records in annual permits issued (1123), dollars spent ($127.7 million) and room nights (nearly 29,000) in Miami Beach in the past two years. The $296 million of allocated tax credits has brought in $1.5 billion in new Florida production spending, including $930 million in wages forover 190,000 Florida production jobs. A recent study prepared by the Motion Picture Association of America (MPPA) in conjunction with Visit Florida for the Florida Department of Economic Opportunity (DEO) showed 19.5o/o of all visitors and 22.7o/o of leisure visitors to Florida stated viewing a movie or television series filmed in Florida was wither "extremely important" or "very important" in their decision to travel to Florida and, further, the incentive provides a return on investment of no less than 95.60 and potentially up to $15.00 for every $1 of incentive tax credit issued. The allocated credits have now fully been used or allocated and no further credits were added in the 2013 Legislative session, putting our future in entertainment production in jeopardy. The City's Tourism, Culture, Economic Development Department's Film Office, serving in leadership of Film Florida, the statewide entertainment industry trade association, has worked since the end of last year's session to educate the Legislature on the need for enhanced and reliable funding to compete with states like Georgia, Louisiana and New York. This week, Representative Manny Diaz of Hialeah filed HB983, proposing strong and reliable long term funding for the program. A Senate companion bill, sponsored by Senator Nance Detert is forthcoming. RECCOMENDATION The administration recommends approval of the resolution. ffil&ffiseB e83 T:\AGENDA\201S\March\TCED\Film lncentive Support 3-5-14 Commission Memo.doc 341 RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CIry COMMISSION OF THE CIry OF MIAMI BEACH, FLORIDA, URGING THE GOVERNOR AND LEGISLATURE OF THE STATE OF FLORIDA TO PASS HOUSE BILL 451 AND SENATE BILL 1046, ENHANCING THE FLORIDA FILM & ENTERTAINMENT INDUSTRY FINANCIAL INCENTIVE PROGRAM WITH ADDITIONAL TAX CREDITS. WHEREAS, the Florida film and entertainment industries have long been coveted around the world and the City of Miami Beach has been fortunate to host, cultivate, and support this industry for the past six decades, going back to Frank Sinatra, Jackie Gleason, and Miami Vice; and WHEREAS, the unmitigated success of the Florida Film & Entertainment lndustry Financial lncentive Program, passed in 2010, led to Miami Beach having a second consecutive record year in 2013 in terms of film permits issued (1123) and dollars spent on permitted productions (just under $128 Million), as well as accounting for over 14,600 room nights in Miami Beach alone, including television projects such as "Burn Notice," "Magic City," and many reality and telenovela productions; and WHEREAS, the result of no additional funding in this program the past two legislative sessions has seen a7.5o/o drop in permits issued and room nights and a 15.25o/o drop in dollars spent in Miami Beach in 2014, and WHEREAS, these projects, and those before them, have showcased Miami Beach to the world and continue to do so in perpetuity, enhancing Miami Beach's brand worldwide and serving as a diversifier and engine of tourism, the City's primary economy; and WHEREAS, the current tax credits within the Florida Film & Entertainment lndustry Financial lncentive Program haven been exhausted with the last incentivized productions completing their work now, leading to the loss of at least seven major film and television productions that were slated for our area in the past six months alone to competing states and locations, including Georgia and Louisiana, New York and Puerto Rico, with more and likely permanent losses expected if funding is not restored this year, NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMTSSION OF THE CITY OF MIAMI BEACH, FLORIDA that the Mayor and City Commission hereby urge the Governor and the Legislature of the State of Florida to pass HB 451 and companion SB 1046, which serve to add additional and sufficient tax credits to the Florida Film & Entertainment lndustry Financial lncentive Program so that the State of Florida and the City of Miami Beach may retain and enhance their positions as key entertainment industry production centers. PASSED and ADOPTED this 11th day of March 2015. PHILIP LEV!NE, MAYOR ATTEST: RAFAEL E. GRANADO, CITY CLERK FIT_Orive\AGENDA\201,1U,!arch\Film Incentive Support Resotution 201 5.doc APPROVED AS TO FORM & IANGUAGE - Dote -$ 342 THIS PAGE INTENTIONALLY LEFT BLANK 343