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In Depth: Hospitality & Conventions
	From the January 25, 2002 print edition

State ready for its close up

Cuts at film office may make it harder for cameras to roll and money to flow

In a move that has left members of the local film, video and hospitality industries gnashing their teeth in frustration, Gov. Gary Locke has proposed to do away with the state's film office.

The office costs the state $375,000 a year to run. But last year production companies spent more than $50 million in Washington - and that's just the documented expenses for items such as hotels, restaurants, catering, cars, crew and extras. Add in the trickle-down dollars of tourism and per-diem spending from cast and crew, and the economic implications soar. A fact sheet from the film office states that in the past 10 years the office has gotten a return of $100 for every dollar spent.

But with $1.25 billion budget shortfall looming, state politicians say they are caught between a rock and a hard place.

"Gov. Locke really is in an unenviable position. He certainly doesn't want to take from health and human services," said Sharon Wallace, the communications director for the state Trade and Economic Development office, speaking on behalf of the film office.

The proposed closure of the film office comes as part of a wholesale cutback to balance the budget. As part of the process, legislators must decide what to cut and what to keep by the end of the session March 14.

"We're cutting out what we don't consider a core function of government," said Mike Gowrylow, the state Department of Finance spokesman. Core functions, he said, are largely "contributions to education or contributions to the safety net of the vulnerable, helping those who can't help themselves.

"When you have to cut state budgets 10, 12, 15 percent, something's got to go," he said

The businesses and communities that have come to rely on money from show business shoots say they understand the predicament. However they want cuts to come from another department - one where the return on investment is much less. Various business and trade groups have hired lobbyists to try to keep the doors open.

It is the job of the film office, which employs one part-time and two full-time employees, to promote Washington as a place to film and to help production companies coordinate locations and streamline the permitting process. Without that one-stop-shopping marketing arm, the process becomes much more complicated, and producers might just have an easier time heading to Vancouver or Portland, where there is enthusiastic support for such industry.

Hotels and restaurants would feel the pain of such a loss acutely, said Jolene Di-Salvo, the director of sales and marketing for the trendy upscale W Hotel. Last year, the hotel saw revenues of a half-million dollars from productions such as the Warner Bros. series "Citizen Baines," which has since been canceled.

"We do rely on a great relationship with a significant number of VIPs and talent coming in," she said. "We're in tune with what that market is looking for: privacy, the ability to work at the drop of a hat and setting up a crew office so they can headquarter out of here."

Jenny King's business, That's a Wrap! Catering and Craft Services provides food services to cast and crews on location and off site. She estimates that the closure of the film office could destroy her $60,000-a-year business. "I can't personally go to L.A. and solicit films to come out here." She points out that a one-day commercial shoot can bring in more money than the state film office's entire budget.

According to an expenditure report required by the film office, a recent four-day Warner Bros. shoot in Seattle project brought in $243,503. The breakdown includes $47,228 for hotels, almost $14,000 for catering and bakery goods, $25,000 for the crew's daily restaurant and per diem expenses and $9,336 for car rental.

The quaint Victorian seaport of Port Townsend on the Olympic Peninsula has also enjoyed a fair share of the business. In the past two years, the feature films “Enough” starring Jennifer Lopez, “Snow Falling on Cedars” and most recently, DreamWorks’ “Ring,” have used Port Townsend’s scenic resources.

"The economic impact is significant," said Tim Caldwell, Port Townsend's Chamber of Commerce director, pointing out that the biggest benefit is not when stars are in front of the camera, but when the crews are preparing in advance. For one week's worth of trailer parking in the city's park 'n' ride lot, for example, Jefferson Transit netted $3,500. Two recent films shot there netted nearly $370,000: For 11 shooting days, the companies hired more than 200 local people and booked 70 hotel rooms each night.

Likewise, Everett took in $23 million last year from "The Fugitive" and "Ring."

"There's no question that there's a tourism link," said Donna James, the director of the Mayor's Office for Film and Video. "If you look at 'Sleepless in Seattle,' you couldn't have paid for that kind of publicity."

The film industry, joined by members of the hospitality industry and other concerned individuals, has taken action to thwart the closure of the film office. James says that a nonprofit group, the Washington Media Producers Council, has hired lobbyist Becky Bogart to work on legislators.

Travis Watson, owner of Atmosphere Casting, is an active member of the Washington Production Team, stands to lose $30,000 to $45,000 worth of business from clients such as Sony, New Line Cinema and Warner Bros. He is encouraging everyone he comes in contact with, including studio representatives and people working as extras, to write to the governor.

But James points out that while other entities can take Band-Aid measures, there will be no replacement for a state film office. To begin with, there's rarely a film that passes up the opportunity to use state ferries or state parks, and it would be difficult to coordinate those shoots without a designated liaison. Secondly, the state film office works equally for cowboy scrub country in southeastern Washington as it does for the winsome shores of the San Juan Islands. Lastly, she said, the film office is a neutral entity, giving no preference to one company over another in its referrals.

Gowrylow suggested that there could still be a hotline open to filmmakers, but was at a loss to say how the calls would be handled. James fears much of the burden would fall to her office, which only employs James and her assistant.

"I don't even know if we could handle the phone calls. We certainly couldn't handle the work."

Copyright 2002 American City Business Journals Inc. Click for permission to reprint (PRC# 1.1659.537733)

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